is these factors which govern the future earning
potential. An indication of the significance of
intangibles can be obtained from a comparison
of the balance sheet valuation of a publicly
quoted company and its stock market valuation.
Handy (1990) suggests that businesses will need
to become more like universities with respect
to the emphasis which is placed on being
informationlknowledge positive as well as being
cash positive. Itami and Roehl(l987) have argued
that a characteristic of all successful organizations
is the recognition that there is a learning process
which runs in parallel to all operations, and that
all activities present the potential to both enhance,
or degrade, the know-how and reputation
elements of the intangible resources. They also
argue that at a strategic level this view leads to
the selection of strategies which will enrich the
‘know-how stock’ of the core competencies of
the business.
Companies have sustainable competitive advantage
when they consistently produce productldelivery
systems with attributes which correspond
to the key buying criteria for the majority of
the customers in their targeted market. These