The ultimate indicator of the value of a firm, the market price or the stock price, is being affected much less by the earnings or the asset base of the company. Rather, value creation in today's company is being increasingly represented by intangible factors like innovation, human capital, ideas, brands, corporate social responsibility initiatives, customer relations, technology, management capabilities and others (Creating Value, n.d.).
To provide vision, mission and objectives and ethical position: At the very outset, the leader has to enumerate the purpose of the company's existence. It is the vision statement. It may also be referred as the dream of a company. The next step is to describe the mission statement. The mission statement deals with the ways to deal with the vision. In other words, it says about the path to achieve those dreams. The objective of a company describes the immediate steps that are to be taken to achieve the vision and the mission. Ethical position implies that the company should have certain social bindings and should not forego its moral nature for the purpose of its profit.
Portfolio Management: The ultimate objective of any company is to earn profit. For the purpose, the company must invest in those sectors or fields which it thinks would generate more profit. ...Show more