Content
Value-based management is a management approach whose primary goal is to increase the value of the company. Its development goes hand in hand with the view that it is not the success of a company in itself that is the decisive benchmark for entrepreneurial action, but rather the relationship between this and the cost of capital: value is created when the success exceeds the cost of the capital employed and this earns a worthwhile return. The company's decisions should be based on this. The accusation of a one-sided orientation towards the interests of equity providers, which was raised particularly strongly in the early days of value-based management, is less frequently voiced in the academic analysis of the approach. The perspective that the success and value of a company ultimately also depend on stakeholders (customers, suppliers, employees, etc.) being able to achieve adequate positions is widespread. The increased discussion in recent years about corporate social responsibility and the sustainability of corporate behavior contributes - for various reasons - to a stronger consideration of the interests of stakeholders. This textbook is aimed at students at Bachelor's and Master's level as well as practitioners in companies, business associations and non-profit institutions who wish to familiarize themselves with a systematic concept for managing companies that enables surpluses to be generated that exceed the cost of capital employed. Building on a sales market-oriented view, the course focuses on the decisions that need to be made and systematically implemented in order to realize this goal in a company. As part of an integrated design approach, a bridge is built between the instruments and principles that are already used in an existing company and the approaches that are specific to value orientation. Part of this integrated approach is the effort to promote synergetic effects between the individual building blocks of value-based management in the best possible way and to develop recommendations for shaping their appropriate foundation in the form of organizational, cultural and other precautions.
Keywords
Shareholder value
Value based management
Value-oriented management