how do enterprises create value ?

6

Click here to load reader

Upload: rajesh-mudholkar

Post on 06-Jul-2015

119 views

Category:

Business


0 download

DESCRIPTION

Shareholder value comes from residual profits after the expectations of all other stakeholders has been fulfilled.

TRANSCRIPT

Page 1: How Do Enterprises Create Value ?

Copyright 2013: Rajesh D.Mudholkar, Author - The Timeless Essence of Financial Science. http://valueerodingfallacies.blogspot.in

Value Creation

Page 2: How Do Enterprises Create Value ?

Copyright 2013: Rajesh D.Mudholkar, Author - The Timeless Essence of Financial Science. http://valueerodingfallacies.blogspot.in

Equity

Customer value is a result of

various resources

consumed by an enterprise to

create goods and services fulfillingcustomer

expectations.

Page 3: How Do Enterprises Create Value ?

Copyright 2013: Rajesh D.Mudholkar, Author - The Timeless Essence of Financial Science. http://valueerodingfallacies.blogspot.in

The various resources

work together synergistically

tocreate value.

Page 4: How Do Enterprises Create Value ?

Copyright 2013: Rajesh D.Mudholkar, Author - The Timeless Essence of Financial Science. http://valueerodingfallacies.blogspot.in

Obligation to fulfill the

expectations of each

resource in exchange for its contribution to value, leaves only residual value for the

entrepreneurs.

Page 5: How Do Enterprises Create Value ?

Copyright 2013: Rajesh D.Mudholkar, Author - The Timeless Essence of Financial Science. http://valueerodingfallacies.blogspot.in

?

Do enterprise managements

correctly understand

entrepreneurs’ expectations and are they accordingly delivered?

Page 6: How Do Enterprises Create Value ?

Copyright 2013: Rajesh D.Mudholkar, Author - The Timeless Essence of Financial Science. http://valueerodingfallacies.blogspot.in

?

Do enterprise managements

correctly understand

entrepreneurs’ expectations and are they accordingly delivered?