Creating Value Assignment (Strategy & Finance)
Choose two organisations from the same industry and critically compare and contrast their past value creation performance and future value creation potential. (NEXT and ZARA)
The best assignments follow a logical structure and demonstrate a clarity of purpose in analysis. Students will need to consider what data to collect, the appropriate
analysis tools and frameworks to use, and should ensure that the conclusions drawn can be linked directly to the data collected and analysis presented. (Must use economic
value added EVA, WACC and discounted cash flow)
Examples pf issues for consideration could include:
– Identification and discussion of the drivers of value creation for the businesses and industry selected
– Analysis of the extent to which the organisations selected have created value in the past (supported by relevant data) linked to the potential for value creation in the
future
– Consideration of the extent to which stakeholders other than the owners/shareholders have been considered and managed as part of the value creation process – for example:
customers, suppliers, competitors, employees, complimentors, etc.
As the module focus is on creating value the financial perspective is important. However, in areas where factors are not directly financial (e.g. Employee engagement) the
assignment should consider how such factors can be taken into account in considering and measuring value creation.
All financial calculations must be detailed in text or in the appendix.
APA v6