How does the Houlihan effect impact businesses?

The Houlihan effect, also known as the Houlihan paradigm, refers to the phenomenon where businesses tend to underestimate the value of their assets and potential returns on investments. This effect can have significant impacts on businesses as it leads to undervaluing their assets, including intellectual property, human capital, and brand equity. This undervaluation can prevent companies from realizing their true potential and benefiting from the opportunities available to them. Furthermore, the Houlihan effect can hinder business decision-making, leading to missed opportunities, misguided investments, and overall suboptimal performance. It emphasizes the importance of accurate valuation and recognizing the true worth of a business's resources in order to drive growth and success.

This mind map was published on 15 November 2023 and has been viewed 89 times.