Capital Investment of resources for future profit Types of business capital

Capital investment of resources for future profit

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*Capital: Investment of resources for future profit. *Types of business capital; Physical Capital: produce goods and services. Human Capital: Human knowledge and skill investments. Social Capital: Social relations with expectation of marketplace returns *Value of Social capital is determined by: Number of relationships, strength of relationships, and resources controlled. Social Capital adds value in four ways: Information, Influence, Social Credentials, Personal Reinforcement - professional image or status. *Use social media to increase social capital Relationships in social networking. *Using social networks to increase the strength of relationships: Strength of a relationship: Likelihood that other entity (person or organization) will do something that benefits your organization. Such as write positive reviews, post pictures of you using organization's products or services, tweet about upcoming product releases, and so on. Organizations strengthen relationships with you by asking you to do them a favor. *Using social networks to connect to those with more resources. Social Capital = Number of relationships x relationships strength x entity resources. Huge network of relationships with people who have few resources may be of less value than a smaller network of relationships with people who have substantial resources. Resources must be relevant. Most Organizations ignore value of entity assets and try to connect to more people with stronger relationships. How do companies earn revenue from social media? *Nothing is free: SM channels like FB and YouTube have millions of users but giving free service. *You are the product. “if you’re not paying, you're the product". Renting your eyeballs to an advertiser. *Advertising (FB makes 91% of revenue from this). *Pay-per-click. *Use increase value: the more people use a site, the more value it has, and the more people will visit. *Freemium revenue model (0ffers users a basic service for free, and then charges a premium for upgrades or advanced features) i.e., LinkedIn 53% online recruitment, 20% premium subscribers. *Sales of apps and virtual goods, affiliate commissions, donations. How do organizations develop an effective SMIS? * Focus on being cost leader or on product differentiation. *Industry-wide or segment focus. *Key is the premeditated alignment of SMIS with organization's strategy. *Common SM Strategic Goals and Common SM Metrics: How do organizations address SMIS security concerns? *SMIS security concerns: Need a social media policy, consider risks from nonemployee user-generated content, Look at risks from employee use of social media. *Managing the risk of employee communication: Develop and publicize a social media policy (Delineates employees' rights & responsibilities) *Intel's Three Pillars of SM policies: Disclosure, Protect, use common sense *Managing the Risk of Inappropriate Content, User-generated content (UGC), Problem from External sources (Junk and crackpot contributions, Inappropriate content, Unfavorable reviews, Mutinous movements) *Responding to Social Networking Problems ( Leave it,

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