StudentShare solutions
Triangle menu

Value Based Management - Research Proposal Example

Not dowloaded yet

Extract of sample
Value Based Management

This project is therefore an effort to find out the importance of value based management and how companies are doing it.
The realisation for a need to identify the key stakeholders in order to optimise their contributions towards the cause arose when the modern management principles were experimented with. Stakeholder concept was originally defined as, "those groups without whose support the organization would cease to exist". But the term 'stakeholder' as such was introduced by the Stanford Research Institute in 1963, for generalising the notion of 'stockholder' when the term was made a part of the internal memo (Zsolnai, 2006). These days management encompasses a range of issues involving various aspects like environment friendliness, adherence to rules and regulations, management of the human resources, ethical business practices and of course the profitability of the operations. Japanese management philosophy of commitment to serving the timely needs of a stakeholder has been at the back of the concepts like JIT, and Kaizen. Value based management, in a way is termed to carry forward these very principles.
Koller (1994) finds out that one of the key reasons behind the failure in delivering the objectives is the setting of unrealistic performance targets. While underlining the fact that value is created only when companies are able to invest the capital at rates exceeding the cost of that capital, Koller (1994) state that value based management helps companies in devising the targets in such a manner that they get strategic as well as operating advantages. Even an ordinary individual investor expects profits from investing in shares of an enterprise. As a result, the investor keeps comparing his or her holdings with other such investment opportunities. It is for the company and its management to retain the interest of such investors into the enterprise.

While devising suitable strategies for value based management, it is equally important that the enterprise is able to take stock of the outcome as a result of implementing certain policies and decisions. Therefore, the search for suitable metrics in order to measure economic performance represents an essential area in theory and practice of company management. In these times of globalization, liberalization, market deregulation, cut-throat competition and industry consolidation, value-based company management becomes all the more important. The manner in which some of the reputed banks and companies have melted during the ongoing recession around the world, is an indicator that if the company is not able to make itself strong enough to take on uncertain times, it will have to face the heat.

Rationale of the Study
As the industrial activities see an upsurge on global scale, it requires the stakeholders to be more conscious about their investments, risks and operating conditions. For example, when the Lehman Brothers announced bankruptcy in 2008, the world community was taken aback. But, subsequently, stakeholders started taking more active interest and becoming more aware about the operational details and financial health of the companies. With an objective of maximizing the market value and using the 'shareholder value' enterprises have now started resorting to newer evaluation models. The idea ...Show more

Summary

For any business to grow all the stakeholders have to put in efforts in a supportive manner. But it is equally true that the stakeholder will be supportive as long as it is found that the activity being supported by the stakeholder is resulting in some tangible or intangible gains for the stakeholder…
Author : ujones
Value Based Management essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the research proposal on your topic
"Value Based Management"
with a personal 20% discount.
Grab the best paper

Related Essays

The current state of HRM In Saudi Arabia.The impacts of motivation on workers and staff, which encourage employees to work In Saudi private sector
HRM is inherently people-oriented, which means that human resource managers are concerned with employees as members of a separate organizational group and as individuals (Randhawa 2009).
7 pages (1750 words) Research Proposal
Understanding Business Benefit Management: Towards an iterative framework for Realizing and Measuring business value of technology investments
It is concerned with defining or articulating the extent of the anticipated benefits and the major beneficiary stakeholder groups, alongside the timescales for realising these benefits (Sofroniou, 2004). Effective implementation of IT management and adept utilisation of its capabilities are taking an integral stance to improve business performance.
5 pages (1250 words) Research Proposal
Contemporary Management
In the present research proposal most of the contemporary management theories and tools are analysed in the context of strategic management for the purpose of acquiring valuable knowledge that can lead to achieve a sustainable competitive advantage in a global business environment characterized by technological advances that transform at a fast pace the stability of management decisions not even for the short term, but for the long term as well.
15 pages (3750 words) Research Proposal
Should All Intangible Assets Be Shown in the Balance Sheet
The changes which have been taking place since 1978, in global economic as well as financial systems have been unique as well as gradual in nature. There is also a gradual shift towards an economy which is mostly based on the knowledge and service rather than relying on the industrial and manufacturing base alone.
9 pages (2250 words) Research Proposal
Knowledge Management Research Proposal
Organisations across industries and countries have realised that knowledge and its management can be a key differentiator in the highly competitive business world. Realising this, there have been efforts across business organisations all over the world that knowledge management is taken as a core strategy that can enhance business opportunities to capture, process and share information and knowledge.
9 pages (2250 words) Research Proposal
Risk Management in Logistics
Business opportunities also involve risks, it is important especially in the volatile automotive industry to examine what risks are viewed as opportunities, and what risks must be avoided to improve the logistic technology of an ever-changing supply chain.
16 pages (4000 words) Research Proposal
Barriers, Risks and value creation by E-learning in Kingdom of Saudi Arabia Higher Education
That is to say by understanding an individuals attitude towards something, one can predict with high precision the individuals overall pattern of behavior to the object (Ajzen
6 pages (1500 words) Research Proposal
Strategic management of small firms
ategic management in small firms pertains to business planning approach within such companies rather than on the study of management processes and the development of strategic management within smaller entities (Mazzarol, 2004). This paper is devoted towards the development of
12 pages (3000 words) Research Proposal
Project Management
The essence of this literature review is basically to find literature about the topic in relation to the specific objectives set. By so doing, it will be possible to identify major gaps in literature and how the proposed research seeks
5 pages (1250 words) Research Proposal
Strategic Management
The decisions taken by the company also defines the organizational culture and behavior, and at the same time it also determines how well its
8 pages (2000 words) Research Proposal
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation