Book to Market Model

Introduction
Book to market model embraces the intangible asset that the company possesses as
Brand Value, is calculated by deducting Market Value of company with the Book V
alue. Nokia Brand valuation includes the contribution of its brand-intangible a
sset. It embellishes in their financial statements and by Book to value method w
e can measure the performance and management of brands over last five years.
Rationale for choosing Book to Market Model
For most of the century, tangible assets were regarded as the main source of bus
iness value. These included manufacturing assets, land and buildings or financia
l assets such as receivables and investments. They would be valued at cost or ou
tstanding value as shown in the balance sheet. Categories of Intangible asset th
at support the superior market performance of business are:
? Knowledge Intangibles: for example patents, software, recipes, specific knowho
w, including manufacturing and operating guides and manuals, product research et
c. ? Business Process Intangibles: These include unique ways of organizing the b
usiness including innovative business models, technology, R&D, patents, flexible
manufacturing techniques etc. ? Brand and Relationship Intangibles: These inclu
des trade names, trademarks and trade symbols, domain name, design rights, logot
ypes, associated Goodwill general predisposition of individuals to do business w
ith brand are included. ? Market position intangibles: for example, retail listi
ngs and contracts, distribution rights, licenses such as landing slots, producti
on or import quotas, third generation telecom licenses, government permits and a
uthorizations and raw materials sourcing contracts.
Nokia possesses Next Gen. mobile phone technology, Fashionable designs handsets
and low-cost models for the developing world; to calculate value of its intangib
le asset the Brand value we used Book to Market value model. Nokia, a single bra
nd company has shown tremendous brand strength and people regard the brand. Sinc
e the brand is so famous we wante