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The concept of Creating Shared Value (CSV) – creating'economic'value in a way that also creates value for the whole of society – has risen in prominence as a corporate policy and a strategy in recent years, mainly for third sector or development organisations. However, while it has received considerable interest among business leaders and practitioners, it has also sparked a bitter debate among academics, proponents and sceptics of the idea. Starting from this argument, the book develops a meta-critical examination of the hidden presuppositions of both supporters and critics of Creating Shared Value, particular in relation to the concept of value. It is argued that there are not two separate types of value, i.e. an economic value and a social value, but only a unique one: which essentially means the creation of well-being. If anything, the distinction that is drawn relates to the value capture (how the value created is distributed among different staekholders) and not to value creation (additions to potential well-being) since the notion of value itself is univocal. Behind the debate are two implicit opposed viewpoints on the philosophy of history: an antagonistic (pessimistic) and a cooperative (optimistic) view. The authors are thus led to a discussion of which of the two visions appears to be the most rational in today's world. The book is addressed to readers with an interest in the core concept of value, primarily in economics, strategic management, and philosophy.

This book applies finance to the field of capital theory. While financial economics is a well-established field of study, the specific application of finance to capital theory remains unexplored. It is the first book to comprehensively study this financial application, which also includes modern financial tools such as Economic Value Added (EVA®). A financial application to the problem of the average period of production includes two discussions that unfold naturally from this application. The first one relates to the dual meaning of capital, one as a monetary fund and the other one as physical (capital) goods. The second concerns its implications for business-cycle theories. This second topic (1) provides a solid financial microeconomic foundation for business cycles and, also (2) makes it easy to compare different business-cycle theories across the average period of production dimension. By clarifying the obscure concept of average period of production, the authors make it easier to analyze the similarities with and differences from other business-cycle theories. By connecting finance with capital theory, they provide a new point of view and analysis of the long-standing problems in capital theory as well as other related topics such as the use of neoclassical production functions and theorizing about business cycles. Finally, they emphasize that the relevance of their application rests on both its policy implications and its contributions to contemporary economic theory.

There are two traditional views of the role of intellectual property (IP) within the field of innovation management: in innovation management research, as an indicator or proxy for innovation inputs or outputs, e.g. patents or licensing income; or in innovation management practice, as a means of protecting knowledge. Exploiting Intellectual Property to Promote Innovation and Create Value argues that whilst both of these perspectives are useful, neither capture the full potential contribution of intellectual property in innovation management research and practice.The management of IP has become a central challenge in current strategies of Open Innovation and Business Model Innovation, but there is relatively little empirical work available. Theoretical arguments and empirical research suggest that from both an innovation policy and management perspective, the challenge is to use IP to encourage risk-taking and innovation, and that a broader repertoire of strategies is necessary to create and capture the economic and social benefits of innovation. This book identifies how intellectual property can be harnessed to create and capture value through exploiting new opportunities for innovation. It is organized around three related themes: public policies for IP; firm strategies for IP; and creating value from IP, and offers insights from the latest research on IP strategies and practices to create and capture the economic and social benefits of innovation.

This special version of Business management was requested by academics in order to accommodate the needs of accounting students. Only the chapters that cover the basics of business management as well as the primary functions of the value chain are included. Abbreviated contents • Introduction to business management: a value chain perspective • Environmental analysis • The entrepreneurial approach • Establishing a business • General management and leadership • Purchasing and inbound logistics • Production/operations management and outbound logistics • Human resource management • Managing diversity • Corporate governance • Black Economic Empowerment

In light of increased vertical specialization and the dominance of trade in intermediates rather than final goods, this paper seeks to raise awareness of the limitations of traditional trade measures on a gross output basis. To do so, this paper uses the WIOD, a world input output table, as an alternative trade measure to analyze the role of six newly industrialized economies in global value chains. The differences between measures on a gross output basis and value added basis are striking. Export shares measured by both methods differed by more than 20 percent for some industries. These findings highlight the need for more sophisticated world input output data to form a better understanding of global trade dynamics and country interdependencies.

The global digital revolution has changed consumer society, service expectations, and funding models forever. Value Driven Service Innovation explores these changes from the perspectives of leading thinkers and practitioners in the field of innovation today.

Bridging the Values Gap Business has a values problem. It's not just spectacular public scandals like Enron (which, incidentally, had a great corporate values statement). Many companies fail to live up to the standards they set for themselves, alienating the public and leaving employees cynical and disengaged—resulting in lower productivity, less innovation, and sometimes outright corruption. The reason, argue top scholars and consultants Edward Freeman and Ellen Auster, is that all too often values are handed down from on high, with little employee input, discussion, or connection to the challenges and opportunities facing the organization. Although the words may be well-intentioned, they aren't reflected in the everyday practices, policies, and processes of the organization. This practically invites disconnects between intention and reality. To bridge this gap between the “talk” and the “walk”, Freeman and Auster provide a process through which organizations can collectively surface deeply held values that truly resonate with everyone, from top to bottom. Their Values Through Conversation (VTC) process focuses on four key types of values conversations: introspective (reflecting on ourselves and how we do things in the organization), historical (exploring our understanding of our past and how it impacts us), connectedness (creating a strong community where we work well together), and aspirational (sharing our hopes and dreams). By developing values through discussions—casual or formal, one-on-one or in groups—VTC ensures that values are dynamic and evolving, not static words on a wall or a website. Freeman and Auster offer advice, real-world examples, and sample questions to help you create values that are authentic and embraced because they are rooted in the lived experience of the organization.

The value chain is adopted as a framework to help business students visualise how it works. Includes self-evaluation and experiential exercises, relevant websites and discussion questions. Contents include the following: • Environmental analysis and management • Entrepreneurial process • General management and leadership • Purchasing and inbound logistics • Production/operations management and outbound logistics • Marketing management • Financial decision making • Human resource management • Communication management • Managing diversity • Business ethics • International management and globalisation • Managing creativity and innovation • Corporate governance • Black economic empowerment

Best-Practice EVA tells the new EVA story from the ground up. Stewart covers EVA essentials—the classic economic profit version of EVA—in the first three chapters of the book. He shows readers how simple and intuitive EVA really is, how it is defined, and why it is better than all other measures of corporate profit. You discover how it naturally guides managers into making all the right decisions—the ones that will truly maximize value. You see how to use it in profit-sharing bonus plans that create the powerful incentives of an owner. Later, Stewart introduces new ratios that make EVA much more powerful and much easier to use than ever before. The pinnacle of the new ratio framework is EVA Momentum, calculated by taking the change in EVA versus the prior period, and dividing by the revenues in the prior period. It measures the growth rate in EVA, scaled to the sales size of the business. It is the only corporate performance ratio where bigger always is better, because it gets bigger when EVA does, which means it should be every company's most important financial goal, the one ratio metric that everyone aims to maximize as the key measure of corporate success. Stewart then walks through the nuts and bolts of Best-Practice EVA, kicking off with an in-depth look at EVA Margin, or EVA as a percent of sales. It's a key productivity metric, and Stewart's candidate to replace ROI. The last link in the Best-Practice program is PRVit—the EVA market score report. Stewart shows how to read and interpret the report, how the score is determined, and why investors are turning to it to screen and rate stocks. He also shows why it is finding a home with CFOs and IR directors who want insights into how the market is pricing their stock. The book concludes with battle-tested tips from the firing line, practical suggestions for how you can test drive and adopt Best-Practice EVA at your company.

This work deals with hybrid value creation, i.e., the process of generating additional value by innovatively combining products (tangible component) and services (intangible component). Vivek K. Velamuri provides a systematic assessment of the state-of-the-art of the field and identifies empirically derived strategies for hybrid value creation. In addition, it helps practitioners to come to grips with understanding the dynamics of hybrid value creation, irrespective of the industry they are in. At the same time directions for future research are identified and provided.​

Written for marketing and finance directors, CEOs, and strategists, as well as MBA students, this practical book explains the principles and practice behind rigorous due diligence in marketing. It connects marketing plans and investment to the valuation of the firm and how it can contribute to increasing stakeholder value. Completely revised and updated throughout, the Second Edition features new case examples as well as a completely new first chapter containing the results of new research into risk and marketing strategies amongst Finance Directors and Chief Marketing Officers.

This book explores the conditions for growth that can create value for shareholders, focusing on the main strategies adopted by firms including horizontal expansion, vertical integration and product diversification. To evaluate whether or not a particular growth strategy is successful, the author examines the economic fundamentals of each strategy and presents analytical models of both internal development and external acquisition. He moves on to present four case studies of successful companies to highlight how a firm chooses and implements a defined growth strategy. This stimulating integrated analysis will appeal to researchers and students in business administration as well as managers, entrepreneurs and consultants involved in strategic management.

This book systematically explains how to maximize shareholder value. Columbia University's Don Sexton fully identifies the real drivers of shareholder value, unifying key concepts from marketing, branding, economics, management, finance, accounting, and statistics. Sexton introduces a powerful new metric: Customer Value Added (CVA), the difference between customer-perceived value and variable cost per unit. Next, he demonstrates CVA at work, presents research and case studies that prove its value, and shows how to use it to consistently measure, manage, and optimize profit, cash flow, and shareholder value. Readers will learn why CVA works; how to measure it; how changes in CVA correlate to changes in profits and cash flow; and how to use CVA to steer the enterprise. Along the way, Sexton illuminates CVA's key implications for managers, including why managers must focus attention simultaneously on both customers and costs, and why well-publicized'generic strategies'such as'net recommend'offer only part of the solution. Finally, drawing on his own extensive experience consulting on CVA and related issues, Sexton presents easy-to-use worksheets for translating CVA concepts into reality in your own organization.

With business under unprecedented pressure from a range of stakeholders to engage in corporate social responsibility (CSR), those working in dirty industries, developing countries and the extractive sector are finding themselves exposed to great strategic risks. Many of these companies are endeavouring to practise CSR and sustainability, but lack the knowledge to do so convincingly. Much of what has been published to date tells companies they must'do'CSR, without explaining how best to implement CSR-related policies and why this is very much in the corporate interest. Buried Treasure sets out in a series of case studies from different industries around the world a clear demonstration of how it is possible to create'shared value'for companies, communities and other stakeholders by putting CSR at the core of the business model.In implementing CSR, companies need to look beyond philanthropy, delving deeper to find the'buried treasure'of shared value creation. This is much more than finding the simple'win–win'solutions. It is about companies engaging seriously in the challenges they face in their operations and finding competitive advantage from working with stakeholders to solve these common problems. This is not easy - but where companies have done it well they have found new corporate opportunities and enhanced brand value.Buried Treasure presents a series of steps, each accompanied by an in-depth case study, to demonstrate how different companies have managed to uncover the value of CSR. They include: Anglo-American's'Zimele'programme of enterprise development in its coal and platinum mining areas in South Africa; Montana Exploradora, showing how community co-monitoring of the environment has helped build trust for a gold mine in Guatemala; Gildan, a leading sportswear manufacturer, demonstrating how garment manufacture in Honduras created meaningful local opportunities; Scandic Hotels, which has used environmental stewardship and'omtanke'to create comparative advantage in a competitive industry; and Turner Broadcasting, using corporate core competences in partnership with an NGO to leverage staff skills, enhancing public perception and staff retention.This short and accessible book will be an invaluable aid to managers and students searching for clear proof of the advantages of corporate social responsibility for business and its many stakeholders and for guidance in how to action best-practice policies.

At the top of a company, sales do not matter, profits do not matter, even return on investment is a secondary concern. What matters is share price and what drives share price is the creation of shareholder value. Many marketing directors, obsessed with branding and other promotional tactics, miss this fundamental truth of modern business and so destroy the wealth of their company's ultimate owners. By failing to consider and manage the business risk associated with their strategies, they deliver returns below the cost of capital and neglect the firm's raison d'etre. The board needs a way of holding these marketers to account. Marketing Due Diligence is a new process which has emerged from years of research at Cranfield, one of Europe's leading business schools. It blends proven ideas from strategic and financial management with new concepts about organisational effectiveness to create a process that directly connects marketing strategy to shareholder value. CEOs and CFOs cannot afford to operate without Marketing Due Diligence. Bad marketing directors cannot afford to work with it.• Top level Cranfield based author team utilising latest Cranfield in-company research• Connects marketing plans and investment to the valuation of the firm and how it can contribute to increasing stakeholder value• Systematic and practical approach so that it can be used by both practitioners and students

The ultimate test of marketing investment, and indeed any investment, is whether it creates value for shareholders. But few marketing investments are evaluated from this perspective. Increasingly, boards of directors and city analysts the world over are dissatisfied with this lack of accountability. Cranfield School of Management has been addressing this problem by working with a range of blue-chip companies. They have created a new framework which shows how marketing systematically contributes to shareholder value based on three key questions-•Does the promised market exist?•Will the strategy deliver the market share promised?•Will the market share create shareholder value?This groundbreaking new book explains the principles and practice behind rigorous due diligence in marketing for Marketing and Finance Directors, CEOs, Strategists and MBA students wanting to understand the key drivers of modern businessSurely, the time has come for marketing directors to take their rightful place in the boardroom by proving that what they are doing creates shareholder value added?• Connects marketing plans and investment to the valuation of the firm and how it can contribute to increasing shareholder value• Systematic and practical approach useful for both practitioners and students• New paperback edition

A groundbreaking book on building long-term wealth for stakeholders As creator of the Wealth Added Index (WAI), Stern Stewart's Erik Stern has become a beacon for creating shareholder value within the current storm of corporate malfeasance and poor performance. The Value Mindset shows readers how to develop this way of thinking by blending individual manager incentives with the proper corporate structure and the willingness to pursue value discipline over the long term. Filled with practical concepts that have proved themselves in the real world, this book shows readers how they can transform a company into an organization that can deliver value and returns to its shareholders. The Value Mindset helps readers develop this mindset-as well as implement it-by detailing the metrics that are necessary for any manager to measure and monitor value creation within the firm. Erik Stern (London, UK) is a Senior Vice President at Stern Stewart & Co., based in London. He has designed and implemented programs for companies in several industries in the United States and Europe. Mike Hutchinson (London, UK) is a Vice President at Stern Stewart & Co., based in London. He worked previously for the BBC and the Consumers'Association.

In this visionary book, C. K. Prahalad and Venkat Ramaswamy explore why, despite unbounded opportunities for innovation, companies still can't satisfy customers and sustain profitable growth. The explanation for this apparent paradox lies in recognizing the structural changes brought about by the convergence of industries and technologies; ubiquitous connectivity and globalization; and, as a consequence, the evolving role of the consumer from passive recipient to active co-creator of value. Managers need a new framework for value creation. Increasingly, individual customers interact with a network of firms and consumer communities to co-create value. No longer can firms autonomously create value. Neither is value embedded in products and services per se. Products are but an artifact around which compelling individual experiences are created. As a result, the focus of innovation will shift from products and services to experience environments that individuals can interact with to co-construct their own experiences. These personalized co-creation experiences are the source of unique value for consumers and companies alike.In this emerging opportunity space, companies must build new strategic capital—a new theory on how to compete. This book presents a detailed view of the new functional, organizational, infrastructure, and governance capabilities that will be required for competing on experiences and co-creating unique value.

In this visionary book, C. K. Prahalad and Venkat Ramaswamy explore why, despite unbounded opportunities for innovation, companies still can't satisfy customers and sustain profitable growth. The explanation for this apparent paradox lies in recognizing the structural changes brought about by the convergence of industries and technologies; ubiquitous connectivity and globalization; and, as a consequence, the evolving role of the consumer from passive recipient to active co-creator of value. Managers need a new framework for value creation. Increasingly, individual customers interact with a network of firms and consumer communities to co-create value. No longer can firms autonomously create value. Neither is value embedded in products and services per se. Products are but an artifact around which compelling individual experiences are created. As a result, the focus of innovation will shift from products and services to experience environments that individuals can interact with to co-construct their own experiences. These personalized co-creation experiences are the source of unique value for consumers and companies alike.In this emerging opportunity space, companies must build new strategic capital—a new theory on how to compete. This book presents a detailed view of the new functional, organizational, infrastructure, and governance capabilities that will be required for competing on experiences and co-creating unique value.

Driving Your Company's Value: Strategic Benchmarking for Value is a step-by-step book presenting a valuation-oriented methodology that helps companies maximize shareholder value. It offers clear, concise, and concrete methods for management to create and preserve value, complete with case study applications. In an easy-to-read format, it brings together the aspects of the Financial Accounting Standards Boards'new performance measurements, the balanced scorecard, and the new guidelines on fraud detection and Extensible Business Reporting Language (XBRL). • Identifies the critical decisions that most effectuate growth and value. • Covers the easy and reliable ways to monitor value of an entity. • Demonstrates how management can apportion and allocate resources to achieve the highest value.

An updated look at the role of economic profit analysis in the process of wealth creation Grant explains the pivotal role of economic value added (EVA) in the theory of finance, how to measure EVA with standard accounting adjustments, how to use EVA to value companies and their stock, and how to use economic profit principles to identify wealth-creating firms, industries, and even market economies.

The unique story of a business heretic and his concept of Economic Value Added (EVA) In Against the Grain, Joel Stern shares for the first time, not only the story of how EVA swept the corporate world, but the story behind the story-the intellectual underpinnings of EVA, how he and his colleagues at Stern Stewart & Co. promoted the concept, won its initial acceptance by major corporations, and later turned the concept into a revolution. He has for good reason been called a one-man catalyst for change. In an engaging memoir, he has given us not only an account of his business strategy, but also provided fascinating anecdotes and vignettes of encounters with leading businessmen on four continents. Joel M. Stern (New York, NY) has been the Managing Partner of Stern Stewart & Co. since its founding in 1982 and was coauthor of The EVA Challenge (Wiley: 0-471-40555-8). A recognized authority on financial economics, corporate performance measurement, corporate valuation, and incentive compensation, he is a leading advocate of the concept of shareholder value. Irwin Ross (New York, NY) was retained to write The EVA Challenge with Joel Stern and John Shiely. He is a former roving editor of Reader's Digest and over the years has written for Fortune and a variety of other magazines.

This is the eBook version of the printed book. If the print book includes a CD-ROM, this content is not included within the eBook version. The Alignment Effect offers managers a systematic blueprint for demanding real accountability and bottom-line business results from their IT investments. Using actual case studies, Faisal Hoque introduces Business Technology Management, a comprehensive approach to aligning technology with business objectives, increasing the efficiency of technology investments, and dramatically reducing the financial and operational risks associated with business and technical change.

The co-founder of EVA shows how to apply it in today's new economy EVA-economic valued added-is a measure of the true financial performance of a company, and a strategy for creating corporate and shareholder wealth. It is also a method of changing corporate priorities and behavior throughout a company, right down to the'shop floor.'In The EVA Challenge, the authors outline how to implement EVA-from training employees to answering the most frequently encountered implementation problems faced by companies. This detailed'how-to'guide represents the second phase in the'EVA Revolution', showing executives around the world how to customize and implement EVA at their companies. Here, EVA converts learn how to work some'EVA magic'through company-specific initiatives and case study examples. Coverage includes completely new materials on'real options', leveraged stock options, and other concepts critical to corporations in both new and old economy industry sectors.

Includes index.