Merits of economic value added, Strategic Management

Assignment Help:

Merits of economic value added (EVA):

-  Cash not accounting based measure therefore less distorted for performance measurement.

-  Consistent or goal congruence with profit maximisation e.g. an enforced measure of profitability.

-  Different interest charges (cost of capital) can be applied to divisions e.g. high inherent risk within different industries can have higher cost of capitals applied.

-  Forces managers to consider the cost of financing new investment and to be efficient when managing working capital e.g. minimisation of inventory and excessive cash balances.


Related Discussions:- Merits of economic value added

Groups and teams, groups and or teams will solve all the effectiveness and ...

groups and or teams will solve all the effectiveness and efficiency challenges facing the 21st century organisations.discuss

Management strategic planning, You are an asset manager for a large public ...

You are an asset manager for a large public utility organisation. The organisation has a range of assets, ranging from major distributors to minor assets directly serving users (fo

Strategic management in a global environment, 1. Read "The Global Branding ...

1. Read "The Global Branding of Stella Artois" in page 244 to 258, and answer the following questions: a) Develop a 5-forces analysis of the beer industry, noting whether the force

Relative value of growth, does this concept fit in under the evaluation of ...

does this concept fit in under the evaluation of strategic options

What do you understand by the term cultural web, Question 1: (a) What d...

Question 1: (a) What do you understand by the term "cultural web" as referred to organisations? (b) Apply the cultural web concept to Toyota. Discuss whether the cultural we

Swot anlaysis, SWOT ANLAYSIS : The swot analysis of hotel arpanaa reve...

SWOT ANLAYSIS : The swot analysis of hotel arpanaa reveals interesting information about the features and services that are offered by the hotel along with the upcoming opport

Explain about position ratio - working capital ratio, Q. Explain about Posi...

Q. Explain about Position ratio - working capital ratio? 1 Current ratio (CA) or working capital ratio CA = Current assets / Current liabilities       (times) The current

Define global and international regional strategies, 1. What are the streng...

1. What are the strengths and weaknesses of the mission statement? Which of these statements are effective guides to decision-making within an organization? Which, if any, of th

Make a list of business goals, Harriet's Fruit and Chocolate Company was es...

Harriet's Fruit and Chocolate Company was established in 1935 in the Pacific Northwest of the United States to ship gift baskets of locally grown peaches and pears to customers in

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd