Study On The Optimized EVA Value Management System Of Shanghai Telecom

While China’s telecom operators listing on the stock market one by one,essential changes are taking place in the external environment of the whole telecom industry.As one of those stated-owned enterprises led by the central government,China’s telecom operators not only have to put their management and development under the supervision of the State-owned Assets Supervision and Administration Commission of the State Council(hereinafter referred to as SASAC),but fulfill their promises made to the capital market;this situation,along with New Normals such as ‘Business Tax Replaced with VAT policy’,‘marketing costs decrease’ and ‘more speed and less charges policy’,makes major operators face new pattern in competitive environment and external supervision.It is optimizing enterprise management,improving value management level and standing out from fierce competition under continuous adjustment of macroeconomic policy that become each telecom operator’s premier challenges.Focusing on Shanghai Telecom,a branch of China Telecom,this thesis tries to find internal and external factors of and reasons for Shanghai Telecom’s Economic Value Added(hereinafter referred to as EVA)management by analyzing the implementation of this EVA management system in the recent five years and comparing this system with Economic Value Driver Model.Based on this analysis,three steps meeting Shanghai Telecom’s demand for value management should be taken to improve Shanghai Telecom’s Omni bearing EVA management system: Firstly,applying the PDCA concept to the whole enterprise management process by building an overall-process value management cycle which requires budgeting properly in advance,controlling in process,assessing in the end followed by evaluating and motivating;Secondly,formulating and implementing optimized contents to improve EVA management level;Finally,providing guidance for other telecom operators through improving the application value of Shanghai Telecom’s EVA.