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EVA-Based Enterprise Internal Management System

Posted on:2006-10-10Degree:MasterType:Thesis
Country:ChinaCandidate:B HuaFull Text:PDF
GTID:2166360152993577Subject:Business management
Abstract/Summary:PDF Full Text Request
With the qualification of membership by the WTO and the trend of global economic integration, what the domestic enterprises will be confronted with are not only chances but also challenges. The priority of internal management is the key for enterprise to success or not in operation. However, traditionary management system has limitation in operating performance measurement and internal motivation, which contribute to resource wasting, decision-making confusion, management laggard. And all these can prevent domestic enterprises from further development.The purpose of this paper is to research how domestic enterprises should build perfect internal management system to boost up competing power in new market economy environment. EVA(economic value added) is net operating profit minus an appropriate charge for the opportunity cost of all capital invested in an enterprise and the most accurate of corporate performance over any given period, it introduces EVA index to enterprise's internal management system in this paper, and researches how to use EVA index to scale operating performance, gives performance evaluation and correspondingly build effective internal motivation. In addition, it also discusses the limit of the EVA in the application process in this paper, and then promotes some suggestion to make the EVA use better. The conclusion in this paper has great value to improve internal management, optimize resource allocation and consider both short-term and long-term development targets.
Keywords/Search Tags:Economic value added, Net operating profit after tax, Cost of capital, Application, Limit
PDF Full Text Request
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