Goals, Values, and Performance

11 important questions on Goals, Values, and Performance

What is used within management terminology, to refer to two verry different concepts? Where one is ethical and the other economic.

Value

How do you call the value that a consumer receives from a good or service minus the price that he or she paid?

Consumer surplus

How do you call the surplus of revenues over costs available for distribution to the owners of the firm?

Profit
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How do you call a measure of economic profit, which is the excess of net operating profit after tax over the cost of the capital used in the business?

Economic value added (EVA)

How do you call a tool for linking strategic goals to performance indicators?

Balanced scorecard

How do you call something that identifies and values possibilities for investment in uncertain opportunities?

Real option analysis

How do you call the social responsibilities of a business organization?

Corporate social responsibility (CSR)

What are the two types of value maximizations a firm can use?

  • Stakeholder value maximization
  • Shareholder value maximization

What are the two types of appraising performance?

  • Forward-looking performance measures: Stock Market Value
  • Backward-Looking Performance Measures: Accounting Ratios

What are the three main approaches to setting performance targets?

  • Financial Disaggregation
  • Balanced Scorecards
  • Strategic Profit Drivers

Which three options might be included for growth strategies?

  • Platform investments
  • Strategic alliances and joint ventures
  • Organizational capabilities

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