High level overview of some managerial finance strategies to add value to your organisation. Covered as part of MBA subject Managerial Finance (2013).
Managerial Finance Strategies to Add Value
The following strategies to add to the net present value (NPR) of a company by altering the cash flow for the better.
Add Value by Maximising Existing Assets
With an existing asset you can:
Increase revenue by either higher sales numbers (make & sell more), or by raising your prices (charge more). The other side of the coin is the decreasing the expenses incurred when using the asset. Find ways to use less resources through greater operational efficiency and seek lower the prices of raw materials and asset support services through tighter procurement. Continue reading
Why do employee’s stick it out with companies, even when the renumeration is poor? Why do overpaid employee’s still leave? There are a many things to consider here, and it will be the subject of another blog post, but for the moment, lets keep it simple. Let’s focus on values.
Values can be defined as:
“Important and enduring beliefs or ideals shared by the members of a culture about what is good or desirable and what is not. Values exert major influence on the behavior of an individual and serve as broad guidelines in all situations.”
from : www.businessdictionary.com
To meet the needs of their employees, managers need to consider their staff’s values, and think on how they are delivering, or enabling those values. As a manger you need to be aware of all the core values. So what are they? What are the Top 9 Employee Values?
Four strategies to stop customers fixating on price
A universal fear of companies is the chance that one or more of their products could be considered a commodity by their consumers.
Why is this so bad? If the customer views your product as a commodity, they will shop around for the best price, they will believe that there is no tangible benefit in buying from you over another supplier, thinking your product is equal to a host of other companies products.
Buyers in a commoditised market will focus on price, show scepticism, have low expectations on additional services, have low brand loyalty and have a very strong preference for swift and effortless transactions.
This is a bad situation for almost all businesses.
How sensitive to price are your customers? Should you make that price cut to keep up with new entrants to the market?
Whilst this is obviously a complex issue, there are a number of factors to search for in your customer base that may indicate they are less worried about the price of your goods or service than you think: