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Q. Define Market value added?
MVA is an external measure of shareholder wealth, the market value added from one period to another. It is measured by the taking the rise in the market capitalisation during a period less the increase in capital invested during a period e.g. Capital contributed by investors. If MVA is positive, then the firm has added shareholder value. The MVA would be the present value of a series of internal EVA values.
Tools to influence social control Mission statements for example purpose and goals promoted. Reward for example linking remuneration with performance. Punishment
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Q. Divisional structures – product organisation? The functional structure is normally adopted by an entrepreneurial structure e.g. small business, because the organisation grow
what are the ethics of strategic management?
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