Description And Performance Evaluation Of Strategy From The Perspective Of Resources Configuration

Valuation from the perspective of the corporate performance is the prerequisite of investment decision for the outside investors. Traditional valuation techniques appraise the corporate value according to the discounted value of forecasted future net cash flow. This kind technique, as based on the accurate prediction of future financial status, faces two difficulties. One is that future cash flow is hard to predict owing to the uncertainty of environment. Another one is that it can not reflect the origin of the corporate value, and thus can not help the outside investors make investment decisions according to the data in financial statements and disposed non-financial data. With the industrial competition getting fiercer and fiercer, corporate strategic choice becomes so important that it is regarded as the major factor deciding the corporate value. Therefore, by mixing strategic positioning and choice into the corporate valuation system or valuate the company from the perspective of its strategy, the continuous development capacity and thus its real value can be discovered before the presence of performance.This paper studies the value of the company based on its strategic choice. Beginning with comparative analysis of existing valuation techniques, including both their advantages and disadvantages, the attributes and function positioning of an efficient valuation method are concluded. Based on the development positioning of valuation methods based on strategy, the mechanism of strategy from the perspective of resources is analyzed and its description model is constructed. Then, with the strategic resources and capacity of the strategic positioning being identified, the way to describe and measure strategy accurately and properly is investigated by first analyzing the strategic dimensions from such two angles as business area choice and business unit value chain. Based on the strategic dimensions defined, the factors and the corresponding measures for each factor are excavated from the perspective of resource configuration based on the disposed data by the listed companies. Furthermore, based on the value propensity of stakeholders, the dimensions of performance and the measures for different dimension are also defined. With all the variables decided, the relationships between resource configuration variables and different dimension of performance are discussed by both theoretic and empirical analysis in hopes of finding out the key factors and indicators of resources configuration contributing to performance. On the condition of the empirical results, the indicators that have outstanding impact on performance are gathered together with the performance index itself and constitute the resource-performance vector. By hierachical cluster analysis, the performance under different types of resources combination is presented. Finally, neuron-network technique is adapted to test the relationship between resources configuration by comparing two kinds of results on the condition of all resources indicators and only the key indicators proved to be greatly influential to the performance as inputs. Meanwhile, the mapping models between resource configuration indicators as inputs and performance indicators as outputs are discovered, by which the performance under different types of resource configuration can be forecasted. Based on the above research scheme, this paper is arranged as follows:In the first part of this paper, the research background, significance, and theoretical framework are proposed by analyzing the status quo and problems of the existing evaluation system and future development of the evaluation system in demand of the future economic environment. By literature review and analysis, the theoretical meaning of this paper is illustrated. Furthermore, the research methodology is given.Secondly, based on the advantages and disadvantages of existing evaluation techniques, such as dividend growth model, P/E model, real option model, balanced score model, and strategic map, the development trend of evaluation techniques from the demand of outside investors is construed. As the real value of the company is originated from the corporate strategy, and the success of the strategy is decided by the accurate strategic positioning and proper strategic choice, value appraisal of the company should begin with the key factors that have outstanding influence on the success of the strategy, so that the value of the company can be forecasted before the performance presented.In the third part of this paper, as the source of corporate value, accurate strategic positioning and proper strategic choice is the prerequisite of the continuous development of the company, based on the resource-base theory, the mechanism of strategy is analyzed from the perspective of the fundamental role that resources play and the constraint effects on resources of the environment. It is argued in this part that the corporate strategy is the resource configuration decision to achieve long term competitive advantages based on the accurate identification of the resource advantage and capability. Fourthly, based on the fundamental role that resources play in the strategic positioning, this chapter analyzed the way to depict and measure strategy from the perspective of resources configuration. First, the strategy dimensions were investigated from two different perspectives as business area and value train of business unit. And the factors and the corresponding measures for each deimension are also excavated from the perspective of resource configuration. In this chapter, the resource configuration characteristics of business area are depicted by such three factors as relevancy degree, specialization degree, and vertical integration degree. Concerning the resource configuration characteristics of value train of the business unit, R&D, production input, marketing and distribution input, operational management capability, human resources input, and financial status are employed to depict the investment in different tache in the value train.In the fifth chapter of this paper, with all the measures to depict strategy are defined, the relationship models between resources configuration indicators and performance indicators standing for different aspect of strategic performance are constructed. In this way, the effects of the resources configuration on performance are investigated. The empirical results show that resource allocation in different areas has different impacts on different dimensions of performance.With the empirical results in chapter five as the base, this part of the dissertation explored the effects of resource configuration indicators combination on performance by hierarchy cluster analysis so that the reciprocity among different resources was take into account. Meanwhile, the valuation index system is constituted.Finally, to test the efficiency of the valuation index system, the neuron-network technique was adapted to investigate the mapping relationship between the input "resource configuration indicators" and the output "performance indicators", so as to forecast the performance with a certain type of resource configuration.