Research On Corporate Strategic Implementation And Controlling System Focused On Shareholder Value

The changes of business environment ask for renovation and innovation of corporate performance appraisal and corporate strategic management. The traditional financial models now fail to meet many challenges of new environment. As a new performance appraisal and strategic management tool, BSC is more systematic and comprehensive than financial models by introducing customer perspective, internal process perspective, and learning and growth perspective into the performance appraisal system. However, BSC has been met an obstacle in its financial perspective: it fails to align the financial goals to the shareholder value. A new shareholder value indicator EVA is now attracting the interests of more and more managers and scholars.This paper is aimed to construct a comprehensive and systematic corporate strategy formulation and implementation tool by introducing EVA into BSC, so as to provide an aligning goal (EVA) in the financial perspective, and furthermore, to broaden custom perspective by adding investor, debtor, supplier and dealer.The paper in the first place gives a bruise and comment about corporate performance appraisal and strategic management, and points out that due to the theoretic and applicative disabilities, the financial factors-dominated mechanisms cannot meet the requirements of new ages.In the following parts of the paper, we give the reasons that EVA is the qualified indicator to show shareholder value: it contends almost every important factor of the Balance Sheet and the Income Statement, it takes into account of WACC, it is modified economically.And then comes the essentials: by introducing EVA, we construct a comprehensive, systematic and multiplayer corporate strategy formulation and implementation system aligned by shareholder value, an analyzes its characteristics and significance. The paper also gives an example of applying the system into practice by Nanjing Milton Piano Co,.Lt, and analyzes the obstacles encountered when applying the model. Finally, we put out our conclusions and suggest some new field to be further researched into.