Thinking, Based On Enterprise Value Creation Strategy

Value Creation is the foundation and the basic goal that the enterprise exists; it is one of the core questions that the enterprise cares about. But this is a quite broad concept; it nearly includes all aspects of enterprise's operation. This article firstly has proven that the core of enterprise goals is the Value Creation maximization based on Stakeholder benefits. In order to achieve this goal, the enterprise must start with enterprise's value fountainhead (customer's demand) and choose the strategy to meet customer's demands high-efficiently. When enterprise's resources and capability exist insufficiency, it is the key decision how to make up the resources, the capability gap. Analysis of Value Creation System embodies the Value Creation process.The article is divided into five parts:Part I : Introduction. To put forward the questions at first and to point out the challenges the enterprise needs to meet under the new situations, the enterprise should change the way of Value Creation; then, the article has proposed the cutting point, namely train of thought and analytic frame; later it is the analysis of the important concepts that this article are involved.Part II: Analysis on Value Creation System, this is main body of this article. To point out four essential factors in the strategy which usually are considered to limit enterprise's strategic choice space in the beginning, afterwards the article illustrates the enterprise Value Creation System, namely value shift, value discovery, value creation, value transmission, value control, value creation cornerstone - enterprise's resources and structure, capability.PartIII: Drive Factor, Obstacle, Mechanism and Way of Enterprise Value Creation. Drive factors of Value Creation vary with every enterprise, this article selects the intellectual capital and the profession localization to take the key points;The obstacles of Value Creation launch the analysis from three aspects: Between stakeholders, between the departments, individual; Mechanism discussion on this article mainly involves three aspects: the communication mechanism, the incentive and the restraining mechanism, resources and capability integration mechanism; finally this part analyses the way of value creation.Part IV: Analysis tools in Value Creation, Including five aspects: the value chain, the virtual value chain, the supply chain, the value network and the tool integration.Part V: Appraisal systems on Value Creation. This part analyses merits and flaws of Profit, Free Cash Flow and so on financial norms, EVA, the Balanced Scorecard.It is the brief summing-up on this article in the part of the conclusion, and has pointed out questions this article must further study.