VALUE MANAGEMENT IN WEAKLY GROWING INDUSTRIESAN EMPIRICAL ANALYSIS USING THE CHEMICAL INDUSTRY AS ANEXAMPLE

In the literature, growth is discussed as a key value lever within the framework of value-basedmanagement as it creates opportunities to generate additional free cash flow and thus to increase thevalue of the company. However, opportunities for high growth rates, for example through technicalinnovations or the creation of new customer groups, are not equally distributed across industries.Using 61 companies from the chemical industry as an example, it is shown that above average capitalmarket performance is possible also in industries with below average growth rates. The requirement forthis to take place is the consistent exploitation of all available levers of value management. In contrast,a pure focus on increasing profitability has not proven to be a sustainable value creation strategy.

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Year of publication:	2007
Authors:	Pidun, Ulrich ; Wolff, Michael
Institutions:	Boston Consulting Group ; Institut für Angewandte Betriebswirtschaftslehre, Unternehmensführung <Karlsruhe>
Subject:	Shareholder-value-Analyse \| Ertrag \| Chemische Industrie \| Wachsstumsstrategie \| Wertorientiertes Management

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Extent:	287744 bytes 7 p. application/pdf
Series:	Universität Karlsruhe (TH) - Institut für Unternehmensführung - Publikationen Corporate Ownership & Control / Volume 5, Issue 1, Fall 2007
Type of publication:	Book / Working Paper
Language:	English
Classification:	Strategic management ; Industrial management ; Individual Working Papers, Preprints ; No country specification
Source:	USB Cologne (business full texts)