Paper Topic:
increase organization value & financial control
The Chen et al ( 2002 ) article describes several ways to increase the value of an Organization which of these might be applicable to your organization and why The way to increase shareholders wealth in an organization is to find investment opportunities that beat the market . Having good investment is something that should be exercised in an organization Doing well is not enough to win extraordinary returns for shareholders one must do better than could reasonably be anticipated based upon publicity available information . In order to gain positive net value management
must establish sustainable competitive advantage based upon the ability to produce goods or services at lower cost than their competition , or successfully differentiate their products so customers are willing to pay premium prices . When any organization is able to earn economic rents , competitive threats are sure to develop . Threats may come from new entrants or enhanced capabilities developed by existing industry rivals
By reducing the resources committed in activities that lack competitive advantage is one way that can reduce the cost of spending on one item that does not bring profit in to the organization then you are heading to the right direction and you would have saved money that could be put it use and you will use it in something else
Another way in which you can increase value in an organization is to spin off any business business units or assets pools that can stand alone spin- offs that take place stock in the hands of shareholders...
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