This book provides an illuminating analysis of Internally
Generated Goodwill from a strategic point of view. The author
launches his strategic analysis from a foundational understanding
of Internally Generated Goodwill as determined largely in
relationship to intangible resources and competitive differentials.
Arguing that intangible resources are at the origin of competitive
differential--and accordingly at the origin of the achievement of
economic profit--the author shows how Internally Generated Goodwill
can be considered as the economic expression of competitive
differentials and, therefore, as the expression of the greater firm
s value that originates from those differentials.
In addition to offering this innovative theoretical framework,
the author develops a variety of practical tools for generating
value estimates and value breakdowns of IIG. The masterful analysis
provided here focuses on developing methods for identifying the
elements that compose IIG and on achieving an accurate estimate of
its value, ultimately seeking to evaluate the limitations and
advantages of the existing variety of approaches to analyzing the
constituent parts of IIG and to devise accounting practices that
will help academics and professionals alike to obtain more
significant and lucid results.
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