Value based management is a process that can be used to determine a business’s value drivers. It attempts to determine how the drivers link to value creation, and then break down the value drivers into achievable activities that can be pursued by employees. Due to strict medicine pricing regulations in the country, it is becoming increasingly difficult for pharmacy businesses to stay profitable. This study set out to develop a value based management framework that could be used by pharmacy management in order to maximise value creation in the business and help ensure its survival despite the strict pricing regulations. Secondary objectives were to contextualise the term “value based management”, to identify the value drivers in a pharmacy business and to determine the extent to which value based management and its principles are being applied in pharmacies in the North West region of South Africa. The research study began in the literature where the term “value based management” was introduced and a literature study was done to conceptualise the term by investigating why value based management and value creation were important. Value based management metrics, the components of value based management; and key success factors for the implementation of value based management principles were investigated. A further literature study was done to identify possible value drivers in a pharmacy business. An empirical study was conducted among registered pharmacists in the North West region of South Africa. Using the value drivers identified in the literature study as constructs, a questionnaire was designed to explore participants’ level of exposure to (and knowledge of) value based management as well as the extent to which the principles of value based management were being applied at the pharmacy businesses where participants were employed. Analysis of the responses showed the questionnaire to be reliable and valid. The results of the study highlighted that many respondents’ lack knowledge regarding the constructs (value drivers), cost price in the dispensary and cost of wages. Constructs (value drivers) that were better understood included product mix in the front shop and debtors’ control. Constructs (value drivers) that were best managed at the pharmacies where participants were employed, were cost price in the front shop and stock control. Constructs (value drivers) that were not as thoroughly managed were sales growth in the front shop and cost of wages. Conclusions regarding the findings of the research study were presented and recommendations were made. The research study was evaluated opposite the primary and secondary objectives with the conclusion that both were achieved. Finally, recommendations for further research into value based management and the application of its principles in pharmacy businesses were proposed. / Thesis (MBA)--North-West University, Potchefstroom Campus, 2013.

When companies go international some factors present in the host country act like forces that might drive the company to standardize or adapt its strategies. The choices between to standardize or to adapt to local needs are of a great importance, since it can have significant impact in the company’s performance in the foreign market. In this paper these forces are characterized in country specific and industry specific factors. The aim of this study is to investigate the influence of external factors in the customers’ value creation in a new foreign market, under standardization and adaptation strategies. In order to fulfill the purpose of the paper, a qualitative research was conducted using a single case study of a Swedish SME, focusing on a single product, namely machine guarding, in connection with one foreign market, Brazil. The study shows that the factors that were most influenced in the customers’ value creation were social/cultural aspects and competition, which tend to lead the company to adapt in order to fulfill local needs and to react to the competitiveness. It was also presented that economic factors and market size did not represent any influences in the standardization or adaptation strategies of the company studied. However, other external factors, as technological, political/legal and industry structure, have shown impact to some degree, whether in adaptation or standardization strategies.

Titel: Förutsättningar för värdebaserad prissättning: en fallstudie av den svenska anläggningsbranschen. Datum för slutseminarium: 2014-06-03. Program: Marknadsföringsprogrammet. Författare: Robin Sörensson, Albin Sköld och Jakob Sköld. Handledare: Peter Caesar. Examinator: Dr. Pejvak Oghazi. Nyckelord: Prissättning, värdebaserad prissättning, värdeskapande, värdeappriopriering. Syfte: Syftet med denna studie är att identifiera interna och externa faktorer som påverkar prissättningen samt beskriva vilka förutsättningar för tillämpning av värdebaserad prissättning dessa faktorer ger upphov till. Teoretiskt ramverk: Det teoretiska ramverket utgår från de två olika dominerande synsätten på värdeskapande och värdeappriopriering. Forskning på prissättning i förhållande till dessa synsätt hämtas i huvudsak från Porter (1980), Dutta et al. (2003) och Hallberg (2008). Metod: Studien bygger på en kvalitativ datainsamling genom intervjuer med personer inom ett utvalt fallföretag inom anläggningsbranschen och fyra av deras återförsäljare. Empiriskt resultat: Empirikapitlet innehåller den kvalitativa datan som samlats in genom intervjuerna och presenteras i form av en tabell samt preliminär dataanalys. Analys: Utifrån empirin och det teoretiska ramverket har externa och interna faktorer som påverkar utformandet av en prissättningsstrategi identifierats. Dessa faktorer har också delats upp i drivkrafter och hinder för att klargöra vilka förutsättningar för en tillämpning av värdebaserad prissättning som finns. Detta presenteras i form av tabeller och löpande text. Slutsatser: Sammantaget har tio faktorer som påverkar prissättningen inom anläggningsbranschen identifierats och beskrivits. Sex faktorer är branschrelaterade och fyra faktorer är resursrelaterade. Det kan ses tendenser till att de externa faktorerna bidrar mer till drivkrafter och de interna faktorerna till mer av hinder för en tillämpning av en värdebaserad prissättningsstrategi. / Title: Prerequisites for value-based pricing: a case study of the Swedish construction industry. Date of final seminar: 2014-06-03. Program: Marketing program. Authors: Robin Sörensson, Albin Sköld och Jakob Sköld. Advisor: Peter Caesar. Examiner: Dr. Pejvak Oghazi. Keywords: Pricing, value based pricing, value creation, value appropriation. Purpose: The purpose of this study is to identify internal and external factors affecting the pricing as well as describe the conditions for implementation of value-based pricing that these factors gives rise. Theoretical framework: The theoretical framework is based on the two dominant approaches to value creation and value appropriation. Research on pricing in relation to these approaches retrieved mainly from Porter (1980), Dutta et al. (2003) and Hallberg (2008). Methodology: The study is based on qualitative data collection through interviews with people within a selected case companies in the construction industry and four of their dealers. Empirical results: Empirical chapter includes the qualitative data collected through interviews and presented in tabular form as well as a preliminary data analysis. Analysis: Through the empirical result and the theoretical frameworks, external and internal factors affecting the design of a pricing strategy has been identified. These factors have also been divided into drivers and barriers to clarify the requirements for the application of value-based pricing that is available. This is presented in the form of tables and scrolling text. Conclusions: Overall, ten factors that affects the pricing of the construction industry has been identified and described. Six factors are industry-related and four factors are resource-related. Tendency’s can also been seen for that the external factors contributing more to the driving forces and the internal factors of more obstacles to the application of a value-based pricing strategy.

Stakeholder engagement, and specifically employee engagement has proven to have an influence on how companies perform and how value is created in organisations. Within the competitive world where Small and Medium Sized Enterprises (SMEs) are functioning, employee engagement can be the master key that unlocks better organisational performance. The objective of this study is to research the influence of stakeholder engagement on business performance and value creation, and to identify factors that impact on stakeholder engagement. The processes that are in place to engage with employees and how value are created through employee engagement, are also investigated. Studies have proven that successful employee engagement can have a positive influence on how businesses perform. The various factors that have an influence on employee engagement, are identified, including: • People. • Communication. • Work. • Rewards. • Opportunities. • Quality of life; and • Company practices. The study found that engagement levels in selected SMEs in Gauteng are high and the results, as discussed in Chapter 3, are positive. It proves that a significant percentage of employees are engaged on the following levels: 1. Rational - this indicates how well employees understand their roles and responsibilities in their various companies. 2. Emotional - this level indicates with how much passion employees work and how passionate they are about their organisation. 3. Motivational - this indicates how willing employees are to give more than is expected of them, and how hard they work to perform well on their roles and responsibilities. The results of the study can be used by companies to improve employee engagement and create value in their organisations - it can assist them in building a sustainable, competitive organisation. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2011

The objective of this study is to evaluate the value drivers that drive the value of companies, as reflected in the share-prices. Through this study, the aim is to draw conclusions on the aspects that drive the share-price of companies. A detailed literature study was performed on the value-creation process that takes place in a company. The literature study has a significant focus on Value-Based Management and the elements that should be considered when evaluating the manner in which companies create shareholder value through the operational activities that are performed. Through applying the principles of value-based management, the management of companies should maximise the value-created for shareholders by utilising company resources in the most effective and efficient way possible. Valuebased management should not be seen as a once-of initiative, but should be ingrained in the day-to-day operating and management activities of companies. The objective of applying value based management principles in a company should be to enhance the value of financial assets through the optimisation of the real assets of the company. Value is created in a company when the company can maintain a return on capital that is greater than the cost of capital. Through the literature study several value-drivers were identified that influence the shareholder value-creation process and that should be managed optimally. These value-drivers have been identified to be (1) sales growth, (2) cash profit margin - earnings before interest, tax, depreciation and amortisation (EBITDA), (3) cash tax rate, (4) working capital, (5) capital expenditure, (6) WACC- the risk and inflation adjusted weighted average cost of capital, and (7) the competitive advantage period. The competitive advantage period is defined as the time during which a company has a positive net present value when discounted at the WACC. Any actions that the management of a company can take to optimise these value-drivers will have a positive effect on the value created for shareholders. The link between shareholder value-creation and share-price was investigated in the literature study. It was found that different factors influence share prices and that some have nothing to do with the company itself, but more with investor sentiment about the economy as a whole and other socio-political factors. The empirical study was based on analysing key value-drivers and financial ratios that were identified during the literature study, in order to establish the relationship between company value-creation and the share-price. The data sample that was used in the empirical study consisted of 55 publicly listed companies that had a net asset value of one billion rand (R1, 000,000,000) or more in 1998. This data sample parameter was chosen in order to consider companies in the empirical study that have significant market presence in the respective industries, sectors and sub-sectors. The time horizon of the empirical study was over a 1 0-year period, from 1998 to 2007. The relationship that exists between the dependent variables of (1) Average Share Price (ASP) and (2) Year-End Share Price (YESP) and the independent variables of (1) net assets, (2) turnover, (3) trading profit, (4) operating profit, (5) profit before interest and tax, (6) Net Operating Profit After Tax (NOPAT), (7) retained profits, (8) free cash flow, (9) Economic Value-Added (EVA), (1 0) Earnings Per Share (EPS), (11) Cash Flow Per Share (CFPS), (12) the price earnings ratio, (13) operating assets, (14) Return On Assets (ROA), and (15) Return On Equity (ROE) were analysed during the empirical study. These dependent and independent variables were chosen based on the insights gained through the literature study and was identified as appropriate to formulate conclusions on the relationship that exists between shareholder value-creation and share-price. The distributions of the above-mentioned variables are discussed in detail and distribution figures are provided to contextualise the spread of the variables and provide background on the data that was used in the empirical study. Although the study of the variables was conducted over a 1 0-year period, from 1998 to 2007, distribution figures for the years 1998 and 2007, are depicted and discussed in order to provide a comparison of the changes that took place over the 1 0-year period. Due to the nature of the variables analysed during the empirical study, the Spearman Rank Correlation Coefficient is used to measure the relationship that exists between the dependent and independent variables. The Spearman Rank Coefficient is a factor model that explains complex phenomena through a small number of basic causes or factors. Given the relative large number of shares available on the share market, the estimation of dependent, share-price variables cannot be performed without simplification to dimensionality, therefore the use of the Spearman Rank Coefficient. The coefficient of correlation between the dependent and independent variables was calculated for the each of the years over the 1 0-year period and the applicability to explain the relationship between shareholder value-creation and share-price was analysed. Through the statistical analyses and the interpretation of the results, it was concluded that earnings per share and cash flow per share are the most appropriate indicators for estimating the relationship that exists between shareholder value-creation and the share-price as reflected on the share market. / Thesis (M.B.A.)--North-West University, Vaal Triangle Campus, 2010.

The objective of this study is to evaluate the value drivers that drive the value of companies, as reflected in the share-prices. Through this study, the aim is to draw conclusions on the aspects that drive the share-price of companies. A detailed literature study was performed on the value-creation process that takes place in a company. The literature study has a significant focus on Value-Based Management and the elements that should be considered when evaluating the manner in which companies create shareholder value through the operational activities that are performed. Through applying the principles of value-based management, the management of companies should maximise the value-created for shareholders by utilising company resources in the most effective and efficient way possible. Valuebased management should not be seen as a once-of initiative, but should be ingrained in the day-to-day operating and management activities of companies. The objective of applying value based management principles in a company should be to enhance the value of financial assets through the optimisation of the real assets of the company. Value is created in a company when the company can maintain a return on capital that is greater than the cost of capital. Through the literature study several value-drivers were identified that influence the shareholder value-creation process and that should be managed optimally. These value-drivers have been identified to be (1) sales growth, (2) cash profit margin - earnings before interest, tax, depreciation and amortisation (EBITDA), (3) cash tax rate, (4) working capital, (5) capital expenditure, (6) WACC- the risk and inflation adjusted weighted average cost of capital, and (7) the competitive advantage period. The competitive advantage period is defined as the time during which a company has a positive net present value when discounted at the WACC. Any actions that the management of a company can take to optimise these value-drivers will have a positive effect on the value created for shareholders. The link between shareholder value-creation and share-price was investigated in the literature study. It was found that different factors influence share prices and that some have nothing to do with the company itself, but more with investor sentiment about the economy as a whole and other socio-political factors. The empirical study was based on analysing key value-drivers and financial ratios that were identified during the literature study, in order to establish the relationship between company value-creation and the share-price. The data sample that was used in the empirical study consisted of 55 publicly listed companies that had a net asset value of one billion rand (R1, 000,000,000) or more in 1998. This data sample parameter was chosen in order to consider companies in the empirical study that have significant market presence in the respective industries, sectors and sub-sectors. The time horizon of the empirical study was over a 1 0-year period, from 1998 to 2007. The relationship that exists between the dependent variables of (1) Average Share Price (ASP) and (2) Year-End Share Price (YESP) and the independent variables of (1) net assets, (2) turnover, (3) trading profit, (4) operating profit, (5) profit before interest and tax, (6) Net Operating Profit After Tax (NOPAT), (7) retained profits, (8) free cash flow, (9) Economic Value-Added (EVA), (1 0) Earnings Per Share (EPS), (11) Cash Flow Per Share (CFPS), (12) the price earnings ratio, (13) operating assets, (14) Return On Assets (ROA), and (15) Return On Equity (ROE) were analysed during the empirical study. These dependent and independent variables were chosen based on the insights gained through the literature study and was identified as appropriate to formulate conclusions on the relationship that exists between shareholder value-creation and share-price. The distributions of the above-mentioned variables are discussed in detail and distribution figures are provided to contextualise the spread of the variables and provide background on the data that was used in the empirical study. Although the study of the variables was conducted over a 1 0-year period, from 1998 to 2007, distribution figures for the years 1998 and 2007, are depicted and discussed in order to provide a comparison of the changes that took place over the 1 0-year period. Due to the nature of the variables analysed during the empirical study, the Spearman Rank Correlation Coefficient is used to measure the relationship that exists between the dependent and independent variables. The Spearman Rank Coefficient is a factor model that explains complex phenomena through a small number of basic causes or factors. Given the relative large number of shares available on the share market, the estimation of dependent, share-price variables cannot be performed without simplification to dimensionality, therefore the use of the Spearman Rank Coefficient. The coefficient of correlation between the dependent and independent variables was calculated for the each of the years over the 1 0-year period and the applicability to explain the relationship between shareholder value-creation and share-price was analysed. Through the statistical analyses and the interpretation of the results, it was concluded that earnings per share and cash flow per share are the most appropriate indicators for estimating the relationship that exists between shareholder value-creation and the share-price as reflected on the share market. / Thesis (M.B.A.)--North-West University, Vaal Triangle Campus, 2010.

Stakeholder engagement, and specifically employee engagement has proven to have an influence on how companies perform and how value is created in organisations. Within the competitive world where Small and Medium Sized Enterprises (SMEs) are functioning, employee engagement can be the master key that unlocks better organisational performance. The objective of this study is to research the influence of stakeholder engagement on business performance and value creation, and to identify factors that impact on stakeholder engagement. The processes that are in place to engage with employees and how value are created through employee engagement, are also investigated. Studies have proven that successful employee engagement can have a positive influence on how businesses perform. The various factors that have an influence on employee engagement, are identified, including: • People. • Communication. • Work. • Rewards. • Opportunities. • Quality of life; and • Company practices. The study found that engagement levels in selected SMEs in Gauteng are high and the results, as discussed in Chapter 3, are positive. It proves that a significant percentage of employees are engaged on the following levels: 1. Rational - this indicates how well employees understand their roles and responsibilities in their various companies. 2. Emotional - this level indicates with how much passion employees work and how passionate they are about their organisation. 3. Motivational - this indicates how willing employees are to give more than is expected of them, and how hard they work to perform well on their roles and responsibilities. The results of the study can be used by companies to improve employee engagement and create value in their organisations - it can assist them in building a sustainable, competitive organisation. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2011

Die Broschüre dokumentiert die Ergebnisse einer Studie zum Wertschöpfungsanteil des Gartenbausektors in Sachsen. Dabei werden die einzelnen Sparten des Gartenbaus als Kernbereich und in weiteren Ebenen die vor- und nachgelagerten sowie stufenübergreifenden Wirtschaftsbereiche betrachtet. Die wirtschaftliche Bedeutung des Gartenbausektors geht weit über den Kernbereich hinaus. So lag die Bruttowertschöpfung bei 580 Mio € und damit 2,5-mal so hoch wie für den Gartenbau allein. Die für den Gartenbausektor ermittelten 26.500 AK-Einheiten entsprachen 1,8 % des gesamten Arbeitsvolumens in Sachsen. Der Umsatz wurde zu 98 % durch den Kern- und nachgelagerten Bereich erwirtschaftet. Damit ist der Beitrag der vor- und stufenübergreifenden Bereiche praktisch zu vernachlässigen.

Research: In recent years the concept of crowdfunding, fundraising through social communities, has risen as an alternative for launching new creations and projects. The aim of this study was to explore the non-financial aspects of how interactive value is created through the social networks on a reward-based crowdfunding platform. This was done through investigating how creators on Kickstarter perceive value, approaching the social network from three different levels: the context, structure and practices. This study had a qualitative approach and 13 interviews were performed with key actors on the crowdfunding platform. A secondary study was performed gathering information about Kickstarter through their website. Findings: The result of this study suggests that there are non-financial benefits of being connected with an innovation network. The findings further indicate that the creators are utilizing the digital platforms to gain attention from the crowd and to connect with other networks. The study concludes that collective value is created through interactions on the crowdfunding platform. Further, the general attitude of authenticity within the crowdfunding context implies that the creators’ personal values and motives might play role for the rate success rates of new ventures.

Syftet med denna uppsats är att undersöka och analysera hur relationer ser ut mellan musikbolag och fans och hur de olika parterna upplever dem. För att uppfylla detta syfte har vi formulerat två forskningsfrågor: Vad kan fans uppfatta som värdeskapande i en relation med musikbolagen och vilka effekter kan detta få på relationen? Vad karaktäriserar musikbolagens arbete för att skapa och utveckla relationen mellan artist och fans? Uppsatsen är ett resultat av en kvalitativ metod med en induktiv ansats. Vi har genomfört semi-strukturerade intervjuer via telefon, Skype samt chattmeddelanden för att få en djup empiri från relevanta personer inom musikbranschen samt fans. Uppsatsens resultat visar att musikbolagens arbete med att skapa och utveckla relationer till stor del bygger på att identifiera vilka sociala plattformar som olika målgrupper befinner sig på. Utifrån detta skapas strategier för att kommunicera med fans och därmed kan relationer med dessa skapas och utvecklas och värdeskapande processer kan erbjudas till fansen. Vad fans uppfattar som värdeskapande är bland annat erbjudanden om tävlingar och förmåner så som förköp av konsertbiljetter. Fansen vill även känna sig uppskattade, sedda och behövda av musikbolagen. Om dessa värdeerbjudanden skulle upphöra att existera kan relationen med musikbolagen påverkas negativt, vissa fans menar även att uppror gentemot artisten kan uppstå. / The purpose of this paper is to investigate and analyze the characteristics of relationships between music companies and fans and how these parties experience the relationships. To fulfill the purpose we have based the paper on the following questions: What does fans appreciate as value creation in the relationship with music companies and what effects does this have on the relationship? What characterize the work of the music companies regarding the creation and the development of relationships between artists and fans? The paper is a result of a qualitative method with an inductive approach. We have conducted semi-structured interviews over the phone, Skype and chat messages to get a deep empirical data from relevant people in the music industry and from fans. The result of the paper shows that the work of the music companies regarding the creation and development of relationships emphasizes an identification of the social platforms where different target groups are active. Based on this the companies can create different strategies to communicate with the fans and the relationships can thus be created and developed, and the music companies can offer the fans different value propositions. We have also identified what the fans perceive as value creating and this is for example different competitions and benefits like presale of concert tickets. The fans also want to feel appreciated, seen and needed by the music companies. If these value propositions would cease to exist, the relationship between the music companies and the fans may be negatively affected; some fans even proclaim that a revolt against the artists may occur.