Lecture 9 - Lehrstuhl für Controlling - Technische Universität München

More documents

Recommendations

Info

Technische Universität München Outline Implementing VBM: Identifying the Drivers of Value Creation 9.1 Synergies and controllability 9.2 Financial and non-financial value drivers 9.3 Process-based performance measurement 9.4 The implementation process Value-Based Management: Lecture 9 4 © Gunther Friedl – SS 2013
Technische Universität München Calculating EVA for divisions assumes the independence of the divisions and neglects synergies Calculating EVA at the business unit level or even deeper in the organization requires that one can construct an income statement and a balance sheet for the considered unit. To create value companies try to achieve synergies through interaction of their divisions in two possible ways: • Several divisions share facilities like R&D, IT, Human resource management, product design, marketing. Problem of the allocation of costs (and shares of the invested capital) to the divisions. • Vertical integration to help the company better control its value chain. Product Line A Purchasing Company R & D Production Product Line B Requirement of transfer prices for assets and services to establish business unit revenues (always arbitrary to a certain degree). EVA implementation therefore is of little use when large percentages of the business unit assets are shared facilities or a large part of the costs of goods sold is represented by intercompany transactions. Sales Value-Based Management: Lecture 9 5 © Gunther Friedl – SS 2013
Page 1 and 2: Technische Universität München Va
Page 3: Technische Universität München Re
Page 7 and 8: Technische Universität München Th
Page 9 and 10: Technische Universität München Ou
Page 11 and 12: Technische Universität München Fi
Page 13 and 14: Technische Universität München Fi
Page 15 and 16: Technische Universität München Ex
Page 17 and 18: Technische Universität München Us
Page 19 and 20: Technische Universität München Pr
Page 21 and 22: Department measures Technische Univ
Page 23 and 24: Technische Universität München EV
Page 25: Technische Universität München Th

Lecture 9 - Lehrstuhl für Controlling - Technische Universität München

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?