Dissertation > Economic > Economic planning and management > Enterprise economy > Economic theory and methods

Research on Corporate Strategic Implementation and Controlling System Focused on Shareholder Value

Author HuangBinYuan
Tutor LiDong
School Southeast University
Course Business management
Keywords Enterprise Strategy Shareholder Value Performance Measurement EVA BSC
CLC F270
Type Master's thesis
Year 2004
Downloads 318
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Changes in the operating environment for enterprise performance measurement and strategic control put forward new demands. The traditional financial model as the core evaluation and control model has become increasingly unable to meet these new requirements. As a comprehensive performance measurement and strategic management tool, the Balanced Scorecard (BSC) in financial indicators, based on the introduction of the customer, internal business, and learning and growth layers strategic objectives and evaluation indicators, making the evaluation of business performance more systematic and comprehensive. However, BSC in the financial level, pointing to the lack of unity of purpose, without the corporate enterprises are maximizing shareholder value as the ultimate goal of economic organization that reflected. Specific performance is that, as the most high-end BSC structure indicators to determine the financial aspects of the rules has not been clearly stated, this method when applied to the BSC leaving more space by management personnel to operate, when a corporate governance structure are defective , the management in this regard due to defects in the BSC deviate fundamental value creation objectives of the operation, the enterprise management activities undue problems emerged in recent years which is economic value added (EVA) has been more and more enterprises managers and researchers cause for concern. As an ideal measure of shareholder value, EVA prominent shareholder value that a single target, forcing managers overall performance through the pursuit of business and create the highest possible EVA. The main purpose of this article by introducing EVA, the BSC into a more comprehensive, more structured strategic management tool: 1. Through the introduction of the Finance layer EVA, making the entire financial system point to the target shareholder value; 2 in the client layer the full expansion of the value related parties, the introduction of the creditors, investors, suppliers and distributors. Firstly, the enterprise strategic performance evaluation made a brief review and summarize and analyze that in the past led to the financial model performance monitoring mechanisms both in theory and in practice can not meet the new requirements of the environment. Meanwhile, as a more integrated BSC model is also flawed: There is no financial targets will be unified into shareholder value up; 2. Omitted some important values ??associated parties. Therefore, the need for BSC to make some necessary improvements, making this management thinking can truly become a strategic point lt; WP = 5 gt; solution and implementation tools. To do this, first thing to do is to find a way to effectively reveal indicators of the level of shareholder value and financial level through which the objectives unified. In the next section, the article discusses why maximizing shareholder value is the enterprise management authority fundamental objective to be pursued, as well as the evaluation criteria of the EVA shareholder value meaning and its main advantage. EVA is one that contains a balance sheet and profit targets major projects, taking into account the cost of capital, after adjustment measure of economic value, it is appropriate as a comprehensive measure of shareholder value and strong ruler. In the central part of the article, this article focuses on the: How to Import EVA, in order to establish a set of BSC based on the idea to the goal of maximizing shareholder value, panoramic, structured strategic performance measurement and control system. And the characteristics of the system and the role of in-depth analysis. By EVA into RONA, WACC and IC these three components, and use them as the source of the financial aspects of gradual decomposition of strategic themes and metrics; in the client layer investors, creditors, dealers and suppliers of organic incorporated. Then followed by decomposition of the internal processes, learning and growth perspective of the strategic themes and metrics. This paper argues that import of EVA BSC not only as a corporate strategic performance indicators, but also can be used as internal and external environment of the sensor, the governor enterprise operations management and corporate strategic cornerstone for long-term growth. Next, the author of a management consulting projects in the background, using the theoretical model of this paper, the authors build on Nanjing Milton Piano Company's strategic performance measurement and control system. On the practical application of the problems encountered and the resulting thinking analyzed. This paper argues that the application of EVA BSC import basic management level of enterprises put forward higher requirements. The right to obtain and calculate the value of EVA also many domestic enterprises managers face difficult problems. Finally, the text summarized. Imported by the Financial layer EVA, to build shareholder value-oriented set, panoramic, structured strategic performance measurement and control systems, BSC was in the true sense become an effective tool for strategic management. At the end of the paper on further research directions gives a brief outlook. Model framework established in this paper there are many restrictive conditions, really want to do theory into practice, there are many theoretical and practical work to be done.

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