Value based management and strategic growth


Read our resource pack for managers, focused on key aspects of effective business model and shareholder business value development and capitalization increase:

The future value today

 

Imagine that you are the CEO of the company, which has just produced a report with different annual rates of growth in sales and profits. In annual address you assure shareholders that the company, as ever, has good growth prospects and increase the value.
In this case, you remember that the market value of the company over the last year has decreased by 5%, while the share price of the competitor grew by 10%. Worst-case scenario could be repeated in the current year: gross and net profit rising again, and the share price remains in place, while the stock price competition takes off.
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Three types of business models of value creation: Value Shop Value Network Value Chain

An accurate understanding of the logic of the company value creation (or in other words, its business model) is a critical factor in the management system. In the present study report shows that the ability of the company to create an "algorithm value," focused on the client is central to business success. On the other hand, on the upper level, business models (chain, shop, or network) may provide management many ideas unique design value generation algorithm. The report also explains the difference between the three types of business models, the risks associated with them, and apply them in practice....

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