scholarly journals Manufacturing As A Center For The Creation Of Shareholder Value

2010 ◽  
Vol 8 (11) ◽  
Author(s):  
Darryl G. Waldron
Keyword(s):  
Operations Management ◽  
Shareholder Value ◽  
Free Cash Flow ◽  
Superior Performance ◽  
Font Size ◽  
Value Drivers ◽  
Annual Survey ◽  
Significant Relationships ◽  
A Value ◽  
The Creation

<p class="MsoBodyTextIndent" style="text-align: justify; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="font-family: Times New Roman;"><em style="mso-bidi-font-style: normal;"><span style="letter-spacing: -0.1pt; color: black; font-size: 10pt; mso-themecolor: text1;">A sample of the best manufacturing firms from Industrial Week&rsquo;s Annual Survey of Manufacturers (2008-2009) is analyzed within the context of a value driver matrix and free cash flow regime that link manufacturing to important determinants of shareholder value.<span style="mso-spacerun: yes;">&nbsp; </span>The framework for analysis developed in association with this analysis relies on the format advocated by Rappaport (1998), whereby a manufacturing value driver map is derived that isolates those variables generally accepted as determinant with respect to manufacturing performance.<span style="mso-spacerun: yes;">&nbsp; </span>This map is subsequently used to identify that subset of variables that have the greatest impact on value and, in turn, to focus on those micro-value drivers over which operations management has a meaningful level of control.<span style="mso-spacerun: yes;">&nbsp; </span></span></em><em style="mso-bidi-font-style: normal;"><span style="color: black; font-size: 10pt; mso-themecolor: text1;">If superior performance measured in terms of the micro-value drivers is an avenue to manufacturing excellence and the creation of shareholder value, one would expect to see statistically significant relationships between these predictor variables (micro-value drivers) and market value.<span style="mso-bidi-font-weight: bold;"><span style="mso-spacerun: yes;">&nbsp; </span>Here this proposition is tested by way of</span> a simultaneous reverse entry multiple regression analysis where market capitalization (<span style="mso-bidi-font-style: italic;">V<sub>0</sub></span>) is treated as a function of a set of manufacturing related micro-value drivers.</span></em></span></p>

scholarly journals Valuing Coca-Cola Using The Free Cash Flow To Equity Valuation Model

2012 ◽  
Vol 10 (11) ◽  
pp. 629
Author(s):  
John C. Gardner ◽  
Carl B. McGowan, Jr ◽  
Susan E. Moeller
Keyword(s):  
Cash Flow ◽  
Normal Growth ◽  
Free Cash Flow ◽  
Equity Valuation ◽  
Cost Of Equity ◽  
Font Size ◽  
Valuation Model ◽  
A Value ◽  
Equity Model ◽  
The Cost

<span style="font-family: Times New Roman; font-size: small;"> </span><p style="margin: 0in 0.5in 0pt; text-align: justify;" class="MsoNormal"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">In this paper, we provide a detailed example of applying the free cash flow to equity valuation model proposed in Damodaran (2006).<span style="mso-spacerun: yes;"> </span>Damodaran (2006) argues that the value of a stock is the discounted present value of the future free cash flow to equity discounted at the cost of equity.<span style="mso-spacerun: yes;"> </span>We combine the free cash flow to equity model with the super-normal growth model to determine the current value of Coca-Cola.<span style="mso-spacerun: yes;"> </span>At the time of this paper, we determined a value of Coca-Cola at $161 billion using the free cash flow to equity model, and the actual market value of Coca-Cola was $150 billion.<span style="mso-spacerun: yes;"> </span><strong style="mso-bidi-font-weight: normal;"></strong></span></span></p><span style="font-family: Times New Roman; font-size: small;"> </span>

scholarly journals Żywe strefy wyobraźni. Przyjmowanie gości jako praktyka oporu

2020 ◽  
Vol 64 (1) ◽  
pp. 3-23
Author(s):  
Adam Pisarek
Keyword(s):  
Social Life ◽  
Cultural Practices ◽  
Considerable Degree ◽  
A Value ◽  
The World ◽  
Cultural Order ◽  
The Creation ◽  
Polish Culture ◽  
Important Basis

This article concerns “living zones of the imagination”—areas of social life in which intensive “interpretive labor” is underway. Thanks to these zones, it is possible to engage in universally accepted exercises that enable a person to “see the world through the eyes of another person” and that yet do not disturb the current socio-cultural order. They provide an important basis for understanding among people, for harmonizing meanings in the sphere of social realities, and for integration that goes beyond certain permanent boundaries and hierarchies. The basic aim of the article is to prove that hospitality, understood as a value in Polish culture, could contribute to a considerable degree to the creation of such zones. The author analyzes the zones’ character, function, and meaning, paying attention to how they resist the expansion of bureaucratic ways of organizing social life. He also draws attention to the influence that an axio-normative pattern could havewithin specific models of behavior and cultural practices.

scholarly journals Understanding Culture through Knowledge Cybernetics

2018 ◽  
Vol 9 (1) ◽  
pp. 38-49
Author(s):  
Ousanee Sawagvudcharee ◽  
Maurice Yolles ◽  
Chanchai Bunchapattanasakda ◽  
Buncha Limpabandhu
Keyword(s):  
Cultural Values ◽  
Dynamic Modelling ◽  
Communication Management ◽  
Cross Cultural Communication ◽  
Dynamic Representation ◽  
A Value ◽  
Alternative Approach ◽  
Levels Of Reality ◽  
The Creation ◽  
Different Cultures

These days, countries around the world continue with their process of globalization in the digital business and marketing. However, they find themselves straddling different national cultures, which lead to problems of cross-cultural communication management resulting in, for instance, miscommunication and misunderstanding. Consequently, an understanding of the characterisation or mapping of culture is significant, and while there are not many theories of cultural mapping, most stem from the base work of Hofstede. Basically, most people begin with a categorisation of culture through the creation of an ontology that differentiates relatable levels of reality, as a theory of levels allows culture to be broken down into parts that can be analysed more easily. It also helps them to facilitate the creation of a set of generic or universal dimensions of culture which can be used to map different cultures. However, a problem with this theoretical approach is that it does not offer a very dynamic representation of culture, and it has manifestations that impoverish the way that phenomenal manifestations of culture can be explained. On the other hand, there is an alternative approach was adopted by Schwartz. This approach does not discuss ontology but it creates a value inventory in which respondents assess ‘comprehensive’ cultural values. Consequently, there is some relationship between outcome of Hofstede’s and Schwartz’s results. Yolles has developed a theory of Knowledge Cybernetics that delivers a new ontology and a dynamic modelling approach. Schwartz’s results have been merged into this, resulting in a new theory dynamic theory of culture quite distinct from Hofstede’s level theory.

scholarly journals Value Management in Non-Profit Organizations - The First Step

2009 ◽  
Vol 1 (1) ◽  
pp. 83-94
Author(s):  
Jarosław Domański
Keyword(s):  
Strategic Management ◽  
Value Management ◽  
Value Drivers ◽  
Non Profit ◽  
A Value ◽  
Key Stakeholders ◽  
Management Concept ◽  
Principal Value ◽  
Non Profit Organizations ◽  
The Individual

Value Management in Non-Profit Organizations - The First StepThis article represents a initial observation on implementing a value management concept for non-profit organizations. Introducing strategic management in non-profit companies is becoming inevitable in order to build up their competitiveness on the non-profit services market. In the first part of this article the key stakeholders of non-profit organizations are identified. The second part is an attempt to present the principal value drivers of non-profit organizations. The groups of key stakeholders that are the most important recipients of the value created by the individual drivers have been assigned to the principal value drivers.

scholarly journals Value creation measures: an industry-based study

2018 ◽  
Vol 67 (2) ◽  
pp. 426-444
Author(s):  
John Henry Hall
Keyword(s):  
Stock Returns ◽  
Value Creation ◽  
Stock Exchange ◽  
Shareholder Value ◽  
Value Added ◽  
Value Drivers ◽  
Content Type ◽  
Johannesburg Stock Exchange ◽  
Return On Capital ◽  
Market Value Added

Purpose The purpose of this paper is to identify the shareholder value creation measure best suited to express shareholder value creation for a particular industry. Design/methodology/approach The analysis was performed on 192 companies listed on the Johannesburg Stock Exchange, classified into nine different samples or industries. Five shareholder value creation measures were examined, namely market value added (MVA), a market-adjusted stock return, the market-to-book ratio, Tobin’s Q ratio, and the return on capital employed divided by the cost of equity. Findings An analysis of the nine categories of firms led to the identification of different measures that are suited to express value creation. Stock returns did not provide an appropriate value measure. Instead, depending on the specific industry, Tobin’s Q ratio, MVA, and the market-to-book ratio should be used to measure and express value creation. Practical implications For management, the value drivers identified for each industry present a clear indication of industry-specific variables upon which they can focus in operating activities to most efficiently increase shareholder value. Originality/value Unlike previous studies that use only one or two different shareholder value creation measures as dependent variables, this study uses five different value creation measures. Another contribution of this study is the compilation of a unique set of value drivers that explain shareholder value creation separately for each of the nine different categories of firms.

The Investment Strategy of Free Cash Flow Multiple

1998 ◽  
Vol 01 (03) ◽  
pp. 355-367 ◽  
Author(s):  
Eric Liluan Chu
Keyword(s):  
Cash Flow ◽  
Abnormal Returns ◽  
Investment Strategy ◽  
Cash Flows ◽  
Free Cash Flow ◽  
Market Model ◽  
Superior Performance ◽  
Price Ratio ◽  
Cumulative Abnormal Returns ◽  
Daily Returns

This study applies the investment strategy recommended by Hackel and Livnat (1993), the free cash flow (FCF) multiple, in Taiwan after the promulgation of Taiwan's FASB No. 95 in 1989. The results indicate that the portfolio with the higher FCF/Price ratio significantly rewards returns in excess of the market. Instead of using earnings/price ratio in the forming portfolio, the study shows that the decile portfolio with the highest FCF/Price ratio significantly outperforms the market during the period from 1990 to 1994. If daily returns are adjusted by the market model, the decile portfolio presents an average 20.5268% cumulative abnormal returns in the testing period, which is statistically higher than zero. The results also indicate that the annual cumulative abnormal returns of the FCF/Price ratio based portfolio are all positive. The annual results also show that the decile portfolio performs much better when the market declines significantly. The outperformance still exists if returns are adjusted by the market without considering risk. The decile portfolio presents an average 8.198% abnormal with a significant t value returns. The superiority of free cash flow in forming portfolio exists but with a decreasing trend when the portfolio is enlarged. The result implies that either the firms with extremely high FCF/Price ratios are undervalued by the market or the market responses slowly to their superior performance in cash flows. The finding supports Hackel and Livnat's (1993) arguments. It suggests that free cash flow is useful information especially for the forming portfolio. The results also enhance the usefulness of the statement of cash flow.

Business model configurations: a five-V framework to map out potential innovation routes

2016 ◽  
Vol 19 (4) ◽  
pp. 492-527 ◽  
Author(s):  
Yariv Taran ◽  
Christian Nielsen ◽  
Marco Montemari ◽  
Peter Thomsen ◽  
Francesco Paolone
Keyword(s):  
Business Model ◽  
Classification Scheme ◽  
Market Place ◽  
Value Drivers ◽  
Value Capture ◽  
Content Type ◽  
Value Network ◽  
A Value ◽  
Driver Analysis ◽  
Common Understanding

Purpose Despite the common understanding that business model (BM) innovation is of vital importance for securing competitive positioning in the market place, managers still seem to lack appropriate frameworks and tools which can support them in renewing and rejuvenating their company’s existing BM. The purpose of this paper is to develop a structural and comprehensive toolbox of available BM configurations, from which companies can choose, to innovate their BM upon, and to design an appropriate BM innovation framework which can facilitate them in re-designing, selecting, and implementing new BM configuration possibilities. Design/methodology/approach A structured literature review is conducted to identify all the relevant BM configurations. Then, a value driver analysis is performed to group these BM configurations into appropriate categories. Finally, an ontological classification scheme and a structural and workable process, i.e. a BM innovation framework, are inductively developed. Findings The paper systematically develops a list of 71 BM configurations and groups them into an ontological classification scheme according to five groups: Value Proposition, Value Segment, Value Configuration, Value Network, and Value Capture. The paper illustrates how the BM innovation framework, enabled by this ontological classification scheme, provides a platform for identifying BM innovation routes for companies, allowing managers to envisage radical, disruptive, and new-to-the-world BM configuration ideas, or apply existing configurations from other industrial settings in what may be deemed new-to-the-industry innovation. Originality/value The paper enriches the amount of potential BM configurations available for managers to choose from when innovating their BMs, and extends the analysis to five core BM configuration categories. Moreover, the BM innovation framework suggested highlights the strong relationships among the value drivers, thus presenting the opportunity for managers to assess potential conflicts or synergies between various value drivers, and to align the BM management process as a whole.

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