scholarly journals Financial Strategy Formulation and Implementation under Economic Uncertainty: Ukrainian companies’ case

VUZF Review ◽  
2020 ◽  
Vol 5 (2) ◽  
pp. 38-47
Author(s):  
Glib Aleksin
Keyword(s):  
Value Creation ◽  
Equity Market ◽  
Economic Uncertainty ◽  
Abscissa Axis ◽  
Strategy Formulation ◽  
Financial Strategy ◽  
Managerial Decisions ◽  
Ordinate Axis ◽  
Financial Goal ◽  
A Company

Factors of economic uncertainty are considered. Economic uncertainty factors’ effect on financial managerial decisions is studied. Financial strategy matrix is proposed on the basis of a sample of Ukrainian companies. The proposed financial strategy matrix covers both financial and market goals – according to the BSC methodology. Thus, in the proposed tool, financial goals are reflected by the level of leverage A/E (Assets-to-Equity), market goals in turn are represented by ROA level; combination of the financial goal (A/E) and market goal (ROA) produces ROE, i.e. level of value creation for stakeholders. Within the proposed methodology financial strategy uses an analytical tool that combines financial and market goals of the enterprise, where the abscissa axis plots ROA level, the ordinate axis plots A/E level. The algorithm of making managerial decisions on financial strategy is described on an example of a company from selected sample – PJSC “Carlsberg Ukraine” – over 2014-2018. A set of managerial decisions targeted at further financial and market position is proposed.

Endogenous value creation: managerial decisions on intangibles

2017 ◽  
Vol 40 (4) ◽  
pp. 410-428 ◽  
Author(s):  
Elena Shakina ◽  
Mariia Molodchik ◽  
Angel Barajas
Keyword(s):  
Value Creation ◽  
Structural Equation ◽  
Economic Value ◽  
Value Added ◽  
Public Companies ◽  
Content Type ◽  
Managerial Decisions ◽  
Top Managers ◽  
Sustainable Competitive Advantages ◽  
A Company

Purpose This study aims to explore value creation through intangibles in corporations, taking into consideration the endogenous nature of managerial decisions. It is stated that intangibles bring extra information asymmetry into a company and make managers and investors’ goals less aligned. Design/methodology/approach A theoretical model is elaborated and empirically tested on the assumption that managers, while investing in intangibles, simultaneously make a company competitive and attractive to investors. The authors use a conceptual model of endogenous value creation to test how intangibles affect outperforming of a company and provoke the expectations of investors. The research is carried out on a sample of more than 1,650 European companies covering the period from 2004 to 2011. Structural equation modelling is applied for the purposes of empirical analysis. Findings The authors reveal a diverse impact of intangibles on outperforming of a company measured by economic value added and its ability to create market value. The study discovers that managers are prone to indicate positive signals to investors rather than create sustainable competitive advantages. Practical implications This research emphasizes on the particular importance of awareness of policymakers, namely, companies’ top managers, about the outcomes of their decisions. Decision-making in public companies should involve as much deliberation as possible about the potential impact of what is decided. Originality/value This work contributes primarily to the field of corporate finance in companies that use intangibles. The endogenous process of value creation is modelled and tested. As a result, a number of essential problems in agent relationships in intangible-intensive corporations are discovered.

scholarly journals Analisis Penerapan Value Creation Selling dalam Strategi Pemasaran Perusahaan Jasa Logistik: Studi Kasus di PT XYZ

2012 ◽  
Vol 3 (1) ◽  
pp. 436
Author(s):  
Darjat Sudrajat
Keyword(s):  
Case Studies ◽  
Market Share ◽  
Cash Flow ◽  
Brand Equity ◽  
Value Creation ◽  
Return On Investment ◽  
Equity Market ◽  
Rate Of Return ◽  
Main Components ◽  
A Company

A company is a market-oriented when the culture of value creation superior customer systematically and comprehensively implemented on company concerned. Value can be defined as the ratio of benefit to cost, where customers expect a rate of return equal or exceed the costs they incurred to obtain the products they bought. From the case studies conducted on PT XYZ, then, in getting the project tender delivery of goods geophysical equipment for the Brunei Loon project, it has been implemented value selling creation, which includes three main components, ie customer portraits, the proposed value, and benefits to customers or total value of ownership. Overall, the efficiency given value is about 20% compared to its closest competitor, the safety shipping and on time, as well as the positive benefits of the profit margin, cash flow, return on investment, brand equity, market share and customers.

An Analytical Study On Financial Planning And Strategy Formulation

2019 ◽  
Vol 118 (9) ◽  
pp. 28-34
Author(s):  
Dr P. Govindasamy ◽  
Dr.H. Premraj
Keyword(s):  
Financial Planning ◽  
Product Line ◽  
Financial Forecasting ◽  
Strategy Formulation ◽  
Wealth Maximization ◽  
Corporate Growth ◽  
Financial Plan ◽  
New Business ◽  
Future Income ◽  
A Company

Financial Planning and Forecasting is the estimation of value of a variable or set of variables at some future point. A Financial forecasting exercise is usually carried out in order to provide an aid to decision – making and planning of any line of business for future developments. This paper focuses insurance segments and tailored all the key areas of attention are such as assets, liabilities, marketing, human resources, expenditures, digitalization and technology inclusion, etc., all in one term called as wealth maximization. Financial planning and forecasting represents a blueprint of what a firm proposes to do in the future. So, naturally planning over such horizon tends to be fairly in aggregative terms. We need to focus on common elements which include economic assumptions, target forecast, proforma statements, asset requirements and the mode of financing the investments and so on. A financial plan can also be an investment plan, which allocates savings to various assets or projects expected to produce future income, such as a new business or product line, shares in an existing business. Financial forecast and financial plan can also refer to an annual projection of income and expenses for a company, division or department. This can also be an estimation of cash needs and a decision on how to raise the funds, such as through borrowing or issuing additional shares in a company. Forecasting is also used by outsiders to value companies and their securities. This is the aggregative perspective of the whole firm, rather than looking at individual projects. Growth is a key theme behind financial forecasting, so growth should not be the underlying goal of corporation – creating shareholder value is enabled through corporate growth.

scholarly journals Development of Market Orientation for Marketing Strategy Formulation

2017 ◽  
Vol 9 (4) ◽  
pp. 54
Author(s):  
Nagasimha Balakrishna Kanagal
Keyword(s):  
Literature Review ◽  
Marketing Strategy ◽  
Market Orientation ◽  
Value Creation ◽  
Business Environment ◽  
Customer Relationship ◽  
Strategy Formulation ◽  
Market Mechanisms ◽  
Develop Market ◽  
Business Purpose

The formulation of marketing strategy is augmented with the firm making efforts to develop market orientation. Market orientation is the ability of the firm to “orient” its marketing strategy to the requirements of the market and continually re-orient its marketing strategy to the changes that occur in the market and business environment. The paper examines the nature of market orientation through literature review and outlines the meaning of the types of strategic thrusts, with specific focus on introducing a new position of competitive advantage called “market mechanisms.” The paper then postulates aspects of enabling reorientation of marketing strategy to keep up with changes in the market and business environment. The paper then extends the understanding of market orientation in extant literature by outlining the details of accommodating the convergence between the business purpose of firm orientation and the business purpose of value creation that encapsulates the firm-customer relationship or the market. An empirical section on certain “orient” aspects is laid out. Implications for marketing strategists are discussed. 

scholarly journals Talent Value Creation during Digital Transformation: A Inductive Model of HR Reengineering

2021 ◽  
Vol 4 (4) ◽  
Author(s):  
Hsiu-Hua Hu ◽  
Yaozong Zhu
Keyword(s):  
Qualitative Study ◽  
Value Creation ◽  
Talent Development ◽  
Digital Transformation ◽  
Four Dimensions ◽  
Research Questions ◽  
Key Features ◽  
The Impact ◽  
A Company ◽  
Insight Into

In this study, we are to explore (1) features of HR reengineering, (2) the impact of business digitalization strategies on digital transformation and HR engineering, (3) the impact of business digitalization strategies and HR reengineering on talent value creation, and present the results of a qualitative study that offers insight into 42 “thought units”, which were “categorizing” into four dimensions corresponding to our research questions: (1) plan, (2) do, (3) check, and (4) action. The “check” dimension corresponds to the four key features of HR reengineering related to business digitalization strategy, and how to create talent value when a company successfully implements business-led digital transformation, HR reengineering, and talent value creation, including (1) talent planning, (2) talent introduction, (3) talent adjustment, and (4) talent development.

scholarly journals Determining the embeddedness of sustainability claims in strategising: A comparative study of the ALSI 40 companies

2012 ◽  
Vol 12 (1) ◽  
Author(s):  
M. Pretorius ◽  
C. Le Roux
Keyword(s):  
Ad Hoc ◽  
Comprehensive Evaluation ◽  
Evaluation Process ◽  
Sustainability Reporting ◽  
Measurement Tool ◽  
Point Scale ◽  
Strategy Formulation ◽  
Specific Element ◽  
Compliance Requirements ◽  
A Company

Purpose: To determine the level of sustainability embeddedness in strategising by investigating the public and external communication of companies. Problem investigated: The extent to which sustainability is embedded in the elements of strategy formulation and implementation (and not merely surface-level statements and claims) Design: The researchers designed a measurement tool and scale, the Strategising for Sustainability Index (SSI), based on researched elements of strategising and recent literature on the topic of sustainability and strategy integration. Merit for strategising for sustainability was given to a company on the basis of its fulfilling the relevant criteria. The JSE Top 40 listed companies on the All Share Index as of March 2011 were selected as a purposive sample. Each company's data and each element of the scorecard were judged on a Likert-type five-point scale, with higher scores indicating higher levels of embeddedness in the strategy. A comprehensive evaluation sheet was used to judge the presented data individually and independently for each element of the scorecard instrument. Findings: Ten elements were found relevant and represented: compliance (2 elements); strategy formulation (4 elements); and strategy implementation (4 elements). The findings show wide variation in overall scores. Almost all companies satisfied the compliance requirements but variations were observed in both formulation and implementation embeddedness. The SSI tool has discrimination value despite a relatively complex judging process. The proposed SSI measurement challenges other determinants of sustainability performance, as it incorporates embeddedness of sustainability in strategising. Knowing the level of this could guide management towards directing resources away from 'over-invested' strengths related to sustainability. Considering the scores for the different elements of the instrument would help to prioritise the 'sustainability spend'. Furthermore, the SSI tool directs attention to how sustainability is incorporated in the strategising process. Originality and Value : The measure of the level of embeddedness of sustainability in strategising has not been done before. This study addresses the possible 'window-dressing' claims surrounding sustainability and highlights those companies who have successfully demonstrated that sustainability is not just for reputation purposes and is, in fact, part of their operating as a listed company. Conclusion : Firstly, it was possible to use the SSI framework and the evaluation process and apply it to the sustainability reporting and claims for each firm. Secondly, each element could be judged on the unique scale for the specific element. The SSI measurement tool can be used to describe the level of strategising embeddedness. The SSI tool's framework is based on input of literature and on the foundation of strategic principles. The 5-point scale on the SSI tool serves to describe the achievement of a company for each element. The sustainability claims of these companies varied in embeddedness in the process of strategising. The score is lower for the formulation elements, raising the question of whether some projects are possibly implemented ad hoc to score points, without being necessarily formulated as part of strategy

WITHDRAWAL OF A SHAREHOLDER IN THE CASE OF A REORGANISATION: EVALUATION OF EFFECTIVENESS AS A REMEDY

2021 ◽  
Vol 20 (6) ◽  
pp. 168-190
Author(s):  
A.A. KUZNETSOV
Keyword(s):  
Economic Uncertainty ◽  
Shareholder Protection ◽  
Significant Change ◽  
The Right ◽  
Right Of Withdrawal ◽  
A Company

The article discusses the right to withdraw from a company as a method of shareholder protection in the event of reorganisation. In particular, the disadvantages of this method of protection are analysed and it is concluded that it generates significant costs and legal and economic uncertainty. It is therefore proposed that the right of withdrawal in the event of reorganisation should be abandoned unless such reorganisation results in a significant change in the company.

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