Research On Evaluation Of Midea Group’s Value Creation Based On Factor Analysis

Value creation refers to the value created by a series of value chain activities of an enterprise.Value chain activities are the most basic activities of an enterprise.Value creation is the most concerned issue of all developing enterprises now,because only by continuously creating value can an enterprise make The enterprise has the ability of sustainable development.Midea Group ranked third among the top 500 value creation rated by the China Manufacturing Listed Companies Value Creation Forum Task Force in 2018.After Midea Group responded to the national "Made in China 2025" plan,carried out industrial Internet layout and optimized the value chain,Initial results have been achieved in enhancing the ability to create value.Therefore,the paper will evaluate and analyze the value creation of Midea Group,hoping to use it as a reference for other companies that are seeking transformation and upgrading.In the theoretical basis,it combs the relevant theories of value creation and methods of evaluating value creation,and briefly introduces the selected factor analysis method.In the analysis of the status of enterprise value creation,EVA was used to estimate the value creation of Midea Group before and after the optimization of the value chain,which initially proved that Midea Group’s value creation capability was indeed improved after a series of measures by Midea Group.In the evaluation of enterprise value creation,the paper refers to the indicators used by the research group of the China Manufacturing Listed Companies Value Creation Forum and uses factor analysis to construct a value creation evaluation system.The evaluation system is used to calculate the total score of the enterprise and innovation value,capital value,The scores of four factors of industrial value and social value.After analyzing the scores and score trends,the Midea Group and other companies are compared on various indicators.Finally,in terms of innovation value,the BCC model was used for analysis;in terms of capital value,profitability,operating capacity,debt solvency,and development capacity were analyzed;in terms of industrial value,the excess return method was used to estimate It has a greater impact on the value of goodwill;in terms of social value,it is analyzed from five aspects: finance,customers,internal operations,employees,and external contributions.The conclusion drawn is: Midea Group’s overall value creation has indeed been rising,and in the comparison,it is found that the various indicators of Midea Group’s value creation evaluation are mostly at the industry leading level.However,in terms of innovation value,Midea Group is slightly inferior in the proportion of R & D personnel,and neither R & D personnel nor R & D investment play the maximum effect;in terms of capital value,Midea Group’s various financial indicators are not outstanding;The rate of return on manpower is declining,and goodwill is yet to be further observed.In terms of social value,Midea Group’s market share has been rising,but its commitment to social responsibility has not increased.Therefore,in view of the problems found in the evaluation of value creation and the causes of the problems,I hope that Midea Group can continue to increase investment in research and development and researchers,strengthen its investment in core business and profitability,and talents and resources from mergers and acquisitions.It is also necessary to speed up the integration and pay attention to the social responsibilities that companies should assume.