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Financial markets, particularly capital and stock markets, play an important role in mobilizing and canalising the idle savings of individuals and institutions to the investment options where they are really required for productive purposes. The prediction of stock prices and returns is carried out in order to enhance the quality of investment decisions in stock markets, but it is considered to be tricky and complicates tasks as these prices behave in a random fashion and vary with time. Owing to the potential of returns and inherent risk factors in stock market returns. Various stock market prediction models and decision support systems such as Capital asset pricing model, the arbitrage pricing theory of Ross, the inter-temporal capital asset pricing model of Merton ,Fama and French five-factor model, and zero beta model to provide investors with an optimal forecast of stock prices and returns. In this research thesis, a stock market prediction model consisting of two parts is presented and discussed. The first is the three factors of the Fama and French model (FF) at the micro level to forecast the return of the portfolios on the Saudi Arabian Stock Exchange (SASE) and the second is a Value Based Management (VBM) model of decision-making. The latter is based on the expectations of shareholders and portfolio investors about taking investment decisions, and on the behaviour of stock prices using an accurate modern nonlinear technique in forecasting, known as Artificial Neural Networks (ANN). This study examined monthly data relating to common stocks from the listed companies of the Saudi Arabian Stock Exchange from January 2007 to December 2011. The stock returns were predicted using the linear form of asset pricing models (capital asset pricing model as well as Fama and French three factor model). In addition, non-linear models were also estimated by using various artificial neural network techniques, and adaptive neural fuzzy inference systems. Six portfolios of stock predictors are combined using: average, weighted average, and genetic algorithm optimized weighted average. Moreover, value-based management models were applied to the investment decision-making process in combination with stock prediction model results for both the shareholders’ perspective and the share prices’ perspective. The results from this study indicate that the ANN technique can be used to predict stock portfolio returns; the investment decisions and the behaviour of stock prices, optimized by the genetic algorithm weighted average, provided better results in terms of error and prediction accuracy compared to the simple linear form of stock price prediction models. The Fama and French model of stock prediction is better suited to Saudi Arabian Stock Exchange investment activities in comparison to the conventional capital assets pricing model. Moreover, the multi-stage type1 model, which is a combination of Fama and French predicted stock returns and a value-based management model, gives more accurate results for the stock market decision-making process for investment or divestment decisions, as well as for observing variation in and the behaviour of stock prices on the Saudi stock market. Furthermore, the study also designed a graphic user interface in order to simplify the decision-making process based upon Fama and French and value-based management, which might help Saudi investors to make investment decisions quickly and with greater precision. Finally, the study also gives some practical implications for investors and regulators, along with proposing future research in this area.

Companies are faced with challenges constraining the achievement of set budgets, goals, profit and cost of product, to name a few, on a daily basis. These challenges influence value creation and sustainable value creation. Value-based management is an integrated management tool which may assist in achieving sustainable value creation within a company. Achieving sustainable value creation will result in benefits for both the shareholders and the various stakeholders. In 2008 and 2009 Eskom, South Africa’s sole electricity provider announced a major shortage of electricity and consequently major price increases. Since electricity consumption is a crucial part of the production process, this announcement had a devastating effect on mining companies. The primary objective of the current study is to investigate whether a local mining company is focusing on applicable endeavours to overcome the electricity constraint and price hikes in order to sustain value creation. This was done by studying the company’s financial & management reports, public announcements and media coverage, in conjunction with a quantitative study, collecting primary data by using standardised questionnaires distributed among the mining company’s employees. The results from this study indicate that the selected company is focusing on relevant projects to overcome the electricity constraints. Further, the conclusion made from the results of the questionnaires shows that the higher staff levels are more informed and aware of value-based management. It also points out that the lower levels and employees from the production and mining departments are less informed and aware of value-based management. / Thesis (MBA)--North-West University, Potchefstroom Campus, 2012

Companies within the manufacturing industry is undergoing changes in their business models to adapt to changing external environments and trends – whereas one general trend is toward servitization, the transition from hardware products to software services. These software services have shown to have an increasingly impactful role for former productbased firms to ensure future reliable profits and revenues. This thesis aims to contribute to the academical field of servitization and business model literature, within the context of a non-disruptive industry with a slow technological development rate. This is done by addressing the following purpose: to understand how hardware manufacturing companies can integrate software services in their existing business model. In order to fulfill this thesis’ purpose, the research questions answered address how a hardware manufacturing company’s business model can be affected by servitization, but also how the process of business model innovation can be facilitated in the organization. This master’s thesis is anchored in a qualitative, interpretive case study – where the empirical data has been gathered from semi-structured interviews and internal case company documents. The findings from this thesis show that servitization can affect company business model in several ways. The first one is the shift towards customercentricity, both in terms of the design of the value proposition and the way of working with the customers. However, the findings show that companies in this context may experience difficulties with designing a value proposition that is desirable to the customer. Problems with demonstrating the benefits of the servitized value proposition might also arise. Furthermore, this thesis also concludes that there can be issues in translating a manufacturing company’s value proposition into concrete revenue streams and moving from traditional cost-based pricing methods to value-based pricing strategies. Also, manufacturing companies in this context might struggle to realize its value proposition if there is not a sufficient amount of dedicated resources, competences and activities dedicated to completing the transition. This thesis also concludes that in order to facilitate the process of business model innovation within the organization, there needs to be a supportive culture to the innovation, but also clear goals and strategies that fits the overall strategies of the company. These strategies also need to be appropriately communicated within the organization. Companies might experience difficulties in rooting the business model in the overall strategy, and failing to do so can affect the internal perception of the innovation in a negative manner. This thesis aims to contribute to the understanding of the concepts of the business model and innovation of the business model in the context of servitization. This study is performed as a context-specific study within a non-disruptive industry with a slow technological development, which differs the study from earlier research within this research field.

Considerando a relevância das cooperativas agropecuárias no agronegócio e, consequentemente, na economia brasileira e a importância dessas organizações aos produtores rurais, propõe-se, com base na abordagem da Gestão baseada em valor (VBM), identificar os direcionadores de valor mais adequados para as cooperativas agropecuárias brasileiras, além de mensurar a criação de valor econômico dessas organizações e formas de maximizá-la. Assim, motivado pela literatura de VBM e pelos poucos estudos empíricos sobre direcionadores de valor em cooperativas, o presente estudo defende a TESE de que a Gestão baseada em valor pode ser aplicada às organizações econômicas sem finalidade lucrativa, especificamente, as cooperativas agropecuárias, visando adequada mensuração da criação de valor econômico e de seus direcionadores de valor. Para tanto, utilizou-se a variável criação de valor econômico (EVA®) como proxy para valor econômico das cooperativas agropecuárias, sendo estimado Ke com base no CAPM, utilizando beta a partir da abordagem dos fundamentos. Foram propostos 19 potenciais direcionadores de valor limitados a análise das estratégias financeiras, os quais foram agrupados nas categorias de decisão operacional, de financiamento e de investimentos da gestão, além do tamanho das cooperativas. Para tanto, foram aplicadas as técnicas análise fatorial e regressão de dados em painel em uma amostra composta pelas cooperativas agropecuárias singulares dos estados do Paraná e do Rio Grande do Sul, durante o período de 2008 a 2016, totalizando 739 observações. Os resultados evidenciaram que todos os fatores extraídos (Financimaneto, Tamanho, Retorno, Giro e Investimento) dos 19 potenciais direcionadores de valor possuem relação estatisticamente significante a 10% com a criação de valor econômico das cooperativas agropecuárias. Quando da análise da relação entre os 19 potenciais direcionadores de valor e a criação de valor das cooperativas agropecuárias, os resultados evidenciaram as variáveis margem líquida (ML) , giro do ativo (G_AT), rotatividade do estoque (G_EST) e custo médio ponderado de capital (WACC) como os principais direcionadores de valor, sendo a ML e o WACC os de maior influência sobre a geração de valor econômico das cooperativas. Adicionalmente, as variáveis endividamento de longo prazo (END_LP), investimentos em ativos fixos (IMOB), receita (REC) e poder aquisitivo básico (PAB) foram identificadas como direcionadores de valor somente para as cooperativas criadoras de valor e as variáveis crescimento de vendas (CV) e alavancagem financeira (AF) foram identificadas como direcionadores de valor para as cooperativas destruidoras de valor. Esses resultados são importantes para que gestores e associados possam gerir a cooperativa voltando seus esforços e decisões para a maximização da criação de valor e/ou minimização da destruição de valor ao produtor rural associado. Além disso, os resultados contribuem para a análise de avaliação de desempenho econômico-financeira e, ainda, os direcionadores podem ser utilizados no processo de definição do retorno (remuneração e incentivos) aos gestores, alinhando os interesses desses aos interesses dos associados (proprietários), direcionando os esforços dos gestores à criação de valor aos associados. / Agricultural cooperatives are relevant to their members and to economy in Brazil. This research, based on Value-based Management (VBM) approach, identifies the most appropriate value drivers for Brazilian agricultural cooperatives and measures economic value of these organizations and how it could be maximized. This research was motivated by the literature on VBM and the lack of empirical studies about value drivers in cooperatives, so, the present study defends the thesis of VBM could be applied to non-profit economic organizations, specifically, agricultural cooperatives, as a wat to measure adequately economic value and their value drivers. For this purpose, the economic value added (EVA®) was used as a proxy for economic value of agricultural cooperatives. CAPM was used to determine the cost of equity capital, based on beta from fundamentalist approach. This research defined 19 variables as potential value drivers of financial strategies into categories, as operational, financing and investment decisions, and, lastly, the cooperative\'s size. The research methods were factorial analysis and panel data regression. Final sample was composed by singular agricultural cooperatives of Paraná and Rio Grande do Sul, during 2008 to 2016, totalizing a final sample of 739 observations. The results showed that all the factors extracted (Financial, Size, Return, Turn and Investment) of the 19 potential value drivers are statistically significant at 10% with the economic value of the agricultural cooperatives. When analyzing the relationship between the 19 potential value drivers and the economic value added. When analyzing the relation between the 19 potential value drivers and the value of agricultural cooperatives, the results show net profit margin (ML), asset turnover (G_AT), inventory turnover (G_EST) and weighted average cost of capital (WACC) as the key value drivers. It should be noted that ML and WACC have greater influence on the value of cooperatives. In addition, the variables long-term debt (END_LP), Fixed assets turnover (IMOB), revenue (REC) and basic earning power (PAB) were identified as value drivers only for cooperatives that created value in the period, instead of sales growth (CV) and financial leverage (AF) variables were identified as value drivers only for cooperatives that destroyed value in the period. These results are important for managers and members to manage the cooperative, so they can focus their efforts and decisions to maximize member\'s value added and/or minimize member\'s destruction of value. These results also contribute to the analysis of the economic and financial performance of cooperatives and could be used in the process of defining the return (remuneration and incentives) to the managers, aligning their interests with the interests of the members (owners), as a way to orientate managers\' efforts to create value for members.

Background:Fristads has noticed needs and necessity of high visibility work wear in the market, particular for the high risk working industries. In addition to it, new international standards for work wear will be introduced in year 2013 which may put higher requirements on visibility of the work wear. Fristads aims to be the first company to develop the new product and pricing is one of the major problems they encounter. After studying different relevant literatures, we have decided to approach the pricing problem using customer value based pricing as the starting-point.Purpose:To identify and analyse the pricing with focus on customer values and product launch. Methodology:My research methodology has a qualitative approach with a certain quantitative feature, and it follows the inductive reasoning. Uncontrolled studies of preferences and intentions have been used when three dealers and one end-customer were interviewed. Secondary sources have been reviewed and the critical pricing issues are identified. The primary data obtained from the interviews is made as foundation for the creation of the price strategy.Result:The interviews have shown that the customers like Fristads’ product idea and the design of the work wear with enhanced visibility. A probably accepted price on the new work wear has been defined according to the customer survey. Pricing strategies for the product launch focusing on the customer value have been recommended. The final decision on the price strategy shall however be made in concurrence with the other strategies at Fristads in order to cover all the aspects. / Program: Master Programme in Fashion Management

Title:Price Strategy for Product Launch – from the Customer Value Perspective Seminar date:29th August 2011Course:Master thesis in Fashion ManagementCredits:15 ECTSAuthor:Sandra Yin-Kwan KoTutor: Lisbeth Svengren HolmBackground:Fristads has noticed needs and necessity of high visibility work wear in the market, particular for the high risk working industries. In addition to it, new international standards for work wear will be introduced in year 2013 which may put higher requirements on visibility of the work wear. Fristads aims to be the first company to develop the new product and pricing is one of the major problems they encounter. After studying different relevant literatures, we have decided to approach the pricing problem using customer value based pricing as the starting-point.Purpose:To identify and analyse the pricing with focus on customer values and product launch. Methodology:My research methodology has a qualitative approach with a certain quantitative feature, and it follows the inductive reasoning. Uncontrolled studies of preferences and intentions have been used when three dealers and one end-customer were interviewed. Secondary sources have been reviewed and the critical pricing issues are identified. The primary data obtained from the interviews is made as foundation for the creation of the price strategy.Result:The interviews have shown that the customers like Fristads’ product idea and the design of the work wear with enhanced visibility. A probably accepted price on the new work wear has been defined according to the customer survey. Pricing strategies for the product launch focusing on the customer value have been recommended. The final decision on the price strategy shall however be made in concurrence with the other strategies at Fristads in order to cover all the aspects. / Program: Magisterutbildning i Fashion Management

As chamadas variáveis controláveis de marketing, envolvendo o portfólio de produtos, preços, canais de distribuição, comunicações e força de vendas, podem ter o desempenho avaliado por meio da utilização de diversos indicadores atribuíveis a cada uma delas, estabelecendo-se uma relação entre os seus resultados com ativos de marketing, como valor de cliente e brand equity, posição de mercado, posição financeira e valor da empresa. No tocante ao programa de comunicação, especificamente, a atuação de seus profissionais é desafiadora em termos de demonstrar a coerência e justificar o orçamento necessário para realizarem suas ações e, a partir dos investimentos nessas ações, conseguirem proporcionar bons resultados em vendas, participação de mercado e, sobretudo, geração de valor para as empresas onde trabalham. Considerando a premissa de que a avaliação de desempenho deve ser realizada por meio de um processo estruturado e, a partir da revisão de relevantes pesquisas existentes sobre o tema, foi desenvolvido um método gerencial organizado em cinco etapas para que as indústrias fabricantes de bens de consumos possam fazer a mensuração, avaliação e apresentação dos resultados obtidos, em termos de vendas e de geração de valor, atribuíveis ao programa de comunicação de marketing. As etapas são compostas por: (i) organização das informações do plano de comunicação utilizado pela empresa; (ii) seleção de indicadores e classificação das metas; (iii) purificação dos resultados atribuíveis à comunicação de marketing; (iv) cálculo e análise dos indicadores de desempenho em comunicação; e (v) classificação e análise de resultados. Objetivando abordar a aplicação do método de maneira completa, foram propostos 30 templates, contendo indicadores, instruções e exemplos de preenchimentos. A pesquisa de campo, exploratória, ocorreu envolvendo entrevistas em profundidade, as quais permitiram validar e incrementar o estudo junto a alguns especialistas da área de marketing, finanças, comunicações, planejamento estratégico. Após as entrevistas, o método (processo) final foi proposto permitindo às indústrias avaliarem os resultados alcançados a partir da execução das estratégias de comunicação, relacionando-os à gestão baseada em valor nas organizações. / The so called marketing controllable variables, which involve product portfolio, prices, distribution channels, communication and sales forces can have their performance evaluated by using many indicators attributable to each of them, establishing a relation between their results and marketing assets, such as costumer lifetime value and brand equity, marketing and financial position and company value. Regarding specifically the communication program, the work of its professionals is challenging in terms of showing the consistency of the necessary budget for them to accomplish their activities and, by investing in these activities, to achieve good results as far as sales, market share and, above all, value generation for the companies where they work. Considering that the performance evaluation must be done through a structured process, and based on a review of existing research on the subject, a managing method was organized in five stages in order to create conditions for the consumption goods manufactures to evaluate the metrics, assessment and to disclose the results in terms of sales and value generation attributable to the marketing communication program. The stages are composed by: (i) to organize the information of the companys communication plan; (ii) to select the performance indicators and to classify the goals; (iii) to purify the results attributable only to the marketing communication activities; (iv) to evaluate and analyze the indicators of communication performance; and (v) to classify and analyze the results. Aiming at approaching the method application, 30 templates have been proposed containing indicators, instructions and examples for filling in. The exploratory ground research involved in depth interviews which allowed validating the study among some marketing, corporate finance, communication and strategic planning experts. After the interviews the final method was proposed allowing the manufactures to evaluate the results achieved with the execution of the communication strategies, relating these results to the value-based management within the companies.

Considerando a relevância das cooperativas agropecuárias no agronegócio e, consequentemente, na economia brasileira e a importância dessas organizações aos produtores rurais, propõe-se, com base na abordagem da Gestão baseada em valor (VBM), identificar os direcionadores de valor mais adequados para as cooperativas agropecuárias brasileiras, além de mensurar a criação de valor econômico dessas organizações e formas de maximizá-la. Assim, motivado pela literatura de VBM e pelos poucos estudos empíricos sobre direcionadores de valor em cooperativas, o presente estudo defende a TESE de que a Gestão baseada em valor pode ser aplicada às organizações econômicas sem finalidade lucrativa, especificamente, as cooperativas agropecuárias, visando adequada mensuração da criação de valor econômico e de seus direcionadores de valor. Para tanto, utilizou-se a variável criação de valor econômico (EVA®) como proxy para valor econômico das cooperativas agropecuárias, sendo estimado Ke com base no CAPM, utilizando beta a partir da abordagem dos fundamentos. Foram propostos 19 potenciais direcionadores de valor limitados a análise das estratégias financeiras, os quais foram agrupados nas categorias de decisão operacional, de financiamento e de investimentos da gestão, além do tamanho das cooperativas. Para tanto, foram aplicadas as técnicas análise fatorial e regressão de dados em painel em uma amostra composta pelas cooperativas agropecuárias singulares dos estados do Paraná e do Rio Grande do Sul, durante o período de 2008 a 2016, totalizando 739 observações. Os resultados evidenciaram que todos os fatores extraídos (Financimaneto, Tamanho, Retorno, Giro e Investimento) dos 19 potenciais direcionadores de valor possuem relação estatisticamente significante a 10% com a criação de valor econômico das cooperativas agropecuárias. Quando da análise da relação entre os 19 potenciais direcionadores de valor e a criação de valor das cooperativas agropecuárias, os resultados evidenciaram as variáveis margem líquida (ML) , giro do ativo (G_AT), rotatividade do estoque (G_EST) e custo médio ponderado de capital (WACC) como os principais direcionadores de valor, sendo a ML e o WACC os de maior influência sobre a geração de valor econômico das cooperativas. Adicionalmente, as variáveis endividamento de longo prazo (END_LP), investimentos em ativos fixos (IMOB), receita (REC) e poder aquisitivo básico (PAB) foram identificadas como direcionadores de valor somente para as cooperativas criadoras de valor e as variáveis crescimento de vendas (CV) e alavancagem financeira (AF) foram identificadas como direcionadores de valor para as cooperativas destruidoras de valor. Esses resultados são importantes para que gestores e associados possam gerir a cooperativa voltando seus esforços e decisões para a maximização da criação de valor e/ou minimização da destruição de valor ao produtor rural associado. Além disso, os resultados contribuem para a análise de avaliação de desempenho econômico-financeira e, ainda, os direcionadores podem ser utilizados no processo de definição do retorno (remuneração e incentivos) aos gestores, alinhando os interesses desses aos interesses dos associados (proprietários), direcionando os esforços dos gestores à criação de valor aos associados. / Agricultural cooperatives are relevant to their members and to economy in Brazil. This research, based on Value-based Management (VBM) approach, identifies the most appropriate value drivers for Brazilian agricultural cooperatives and measures economic value of these organizations and how it could be maximized. This research was motivated by the literature on VBM and the lack of empirical studies about value drivers in cooperatives, so, the present study defends the thesis of VBM could be applied to non-profit economic organizations, specifically, agricultural cooperatives, as a wat to measure adequately economic value and their value drivers. For this purpose, the economic value added (EVA®) was used as a proxy for economic value of agricultural cooperatives. CAPM was used to determine the cost of equity capital, based on beta from fundamentalist approach. This research defined 19 variables as potential value drivers of financial strategies into categories, as operational, financing and investment decisions, and, lastly, the cooperative\'s size. The research methods were factorial analysis and panel data regression. Final sample was composed by singular agricultural cooperatives of Paraná and Rio Grande do Sul, during 2008 to 2016, totalizing a final sample of 739 observations. The results showed that all the factors extracted (Financial, Size, Return, Turn and Investment) of the 19 potential value drivers are statistically significant at 10% with the economic value of the agricultural cooperatives. When analyzing the relationship between the 19 potential value drivers and the economic value added. When analyzing the relation between the 19 potential value drivers and the value of agricultural cooperatives, the results show net profit margin (ML), asset turnover (G_AT), inventory turnover (G_EST) and weighted average cost of capital (WACC) as the key value drivers. It should be noted that ML and WACC have greater influence on the value of cooperatives. In addition, the variables long-term debt (END_LP), Fixed assets turnover (IMOB), revenue (REC) and basic earning power (PAB) were identified as value drivers only for cooperatives that created value in the period, instead of sales growth (CV) and financial leverage (AF) variables were identified as value drivers only for cooperatives that destroyed value in the period. These results are important for managers and members to manage the cooperative, so they can focus their efforts and decisions to maximize member\'s value added and/or minimize member\'s destruction of value. These results also contribute to the analysis of the economic and financial performance of cooperatives and could be used in the process of defining the return (remuneration and incentives) to the managers, aligning their interests with the interests of the members (owners), as a way to orientate managers\' efforts to create value for members.

To ensure compliance with specifications during construction, a formal review process, called the submittals process is typically implemented, whereby the contractor is required to submit proposals for materials, equipment, and processes for the owner’s approval within a short period of time. This procedure can be a difficult task because of lack of time, lack of information in the submittal package, difficulty in retrieving related data, and lack of defined criteria for evaluation. This research introduces development of a framework for submittal evaluation that considers the operational impact of any minor variation in the required specifications. The evaluation mechanism uses the Multi-Attribute Utility Theory (MAUT) approach, which is adaptable to the varying requirements of organizations. Through the process of analyzing the current submittal mechanism, a list of key submittals is defined and the top one (chiller) is selected to be the focus of the research. The governing criteria (evaluation parameters) are defined for the selected submittal item and categorized into two categories: inflexible and flexible. The inflexible parameters have been dealt with using checklists with predefined threshold that must be met without tolerance. Flexible parameters have been analyzed using utility functions that represent decision maker preferences and tolerance levels. Accordingly, the evaluation process considers multi-parameters to determine an overall utility for the submittal and the value-based condition for accepting it, incorporating LEED requirements. The investigation is based on data provided by three main organizations, as well as intensive meetings and interviews with experts from each participating organization. The outcome of this investigation is the development of evaluation criteria and checklist parameters that are used as the basis of a value-based evaluation, which is the core of the developed decision support system. In summary, it has been demonstrated that a decision support system for the evaluation of construction submittals can be constructed and that it will provide numerous benefits: an expedited decision process, an audit trail for decisions, more consistent and objective decisions, risk identification, internal alignment of organizational values, and improved lifecycle asset performance. The benefits were validated by demonstration, and by experts' evaluations.