Management’s response to shareholders’ return on investment as a priority occurs in an increasingly dynamic environment. Accompanying these activities is the need to realign responsibilities and to allocate scarce resources effectively. This is done in order to ensure that companies achieve global competitiveness and increase shareholders’ return on investment. Against this backdrop, local industry needs to find new methods or strategies in order to achieve world-class competitiveness, and to be able to access foreign investment. One way to achieve these goals is through Value Based Management (VBM). The objective of this study is to evaluate the strategic intent of Multinational Entities in applying VBM to increase shareholders’ return on investment. Based on the study, certain factors are critical to ensure the success of VBM. A postal survey to managers in the motor manufacturing and component manufacturing companies was conducted to check the managers’ familiarity with VBM, and their scope, and usage of VBM; and, based on the finding, to evaluate the impact of VBM on companies’ results. The empirical finding was compared with a literature review, and the following findings were made: There is a strong understanding and application of the VBM principle on the part of local entities with Foreign Direct Investment (FDI); Departmental performance is critical to an entity’s overall performance; Based on the study, 23 per cent of the respondents use Economic Value Added (EVA) as an internal reporting measure, and an average of 19 per cent use other metrics; A total of 89 per cent of respondents indicated that they strongly agree with the use of incentives for motivation. The above-mentioned points were covered by means of 4-M framework ― that is: Measurement, Management, Motivation, and Mindset.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:8550 |
| Date | January 2005 |
| Creators | Blouw, Mbuyiselo Edwin |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MBA |
| Format | xiii, 85 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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