This is in a bid to expand its market and increase its profits in the highly competitive market. However, it is evident that the investment rates have been fluctuating according to the risk factors identified by the company’s experts. Some of the risk that determines whether Wolseley will invest or not include economic factors, new business models, margin pressures, liquidity and funding from financial institutions and other critical risk factors (Hastings 87).
In cases where the company recognizes that the investment does not generate the expected profit margins, it considers disposition. One of the recent cases involved the company’s consideration of disposing of its French arm, after the realization that the European markets had become unbearably difficult. Reports indicated that an analysis of the situation revealed that Wolseley would either close down the arm or limit the investment towards it. Other situations include the Danish market, compelling the company to consider disposition. The team of experts assigned the role of strategizing on investment and disposition has done a remarkable task in management (67). This is the reason why the company is a leader among its competitors.
As highlighted in the table above, Wolseley had placed increased importance on the importance of goodwill as one of its intangible assets. However, with time, the company has expanded its view of intangible assets to include trade means, customer relationships, and brand. The company has made remarkable efforts of upholding its integrity in a bid to protect its reputation, which has proved to be a significant asset. Wolseley now plans to invest in the other highlighted intangible assets in the future. . .