Finance research paper 123 Essay Example | Topics and Well Written Essays - 1250 words

Finance research paper 123 - Essay Example Omar Kassem Alesayi was established in 1997 to assist Saudi citizen to own suitable housing units at reasonable terms. The company specializes in mortage and property financing. Over time, it gradually expanded its business activities to include external entities, i.e. other real estate developers and individuals . In 2006, approximately 87% of its turnover was generated from external parties (OKAG, 2000) They currently work out of one branch, with a total of 28 employees and owns a total of almost 135 million assets. SISCO being a privately owned company is not married in bureaucracy which is common in state-owned firms. The company’s organisational structure is horisontally desgined, with adequate processes and procedures. However, with the expansion plans, a review of its processes and procedures needs to be conducted. The processes and procedures of the company were implemented on an ad-hoc basis, on a learn-as-we-go basis. The company has competitive adavantage over its competitors with a large product portfolio. The key resources of any organization comprise of the financial resources and the human resources or as they are now known as human capital. It is staffed by some of the best professionals in the field. Intangible assets have gained importance now and human capital is the profit lever of the knowledge economy (Low, 2000). Human capital is the source of innovation and strategy; it is the combination of genetic inheritance, education, experience and attitude towards life and business (Bontis and Fitz-enz, 2002). Tacit knowledge has to be converted and retained in the knowledge economy to compete in the market (Marwick, 2001). . The market value of a firm consists of its financial capital and ‘something else’. The book value can be ascertained through the financial assets but this ‘something else’ is the firm’s intellectual capital (Pablos, 2002). The other key resource is finance. SISCO has a strong financial