Goals, Values, and Performance

University:
Franklin University
Course:
BUSA-605 | Business Analytics Strategy
Academic year:

2024
Views:

68

Pages:

3
Author:

Shyanne Johnson

Goals, Values, and Performance OUTLINE • Strategy as a quest for value • Putting performance analysis into practice • Beyond profit: values and corporate social responsibility • Beyond profit: strategy and real options STRATEGY AS A QUEST FOR VALUE What is Business For?  Every business has a unique purpose—often reflecting the motives of the founder(s) E.g. Henry Ford (Ford Motor Company), Steve Jobs (Apple), Jack Ma (Alibaba) were each motivated by a distinct vision.  Common to every business enterprise: the desire/need to create value  Value is the monetary worth of a product. Hence, the purpose of business is 1)to create value for customers 2)to appropriate some of that value in the form of profit—in order to ensure the survival of the firm STRATEGY AS A QUEST FOR VALUE Value Creation B. Value created = Consumer surplus plus Producer surplus A. Profit = Revenue minus Cost Profit $ Total revenue Accounting cost Units of output Price paid by customers Consumer Surplus Profit “Rents” to input providers Real cost of production Units of output Producer surplus