A series of business activities and their cost structure for enterprises to produce and supply products or services that meet the needs of target customers
AutomotiveProduction process, byIron oreCoke is added to smelt iron in the blast furnace, iron is processed into automobile parts, and parts are assembled into a whole vehicleAutomobile productionThe physical process of.In the physical process, we also consider the participation of human resources, but our understanding of human resources here is from the perspective of physics, that is, human resources here areanimal powerThe mechanical force is the same, only considering the force and the amount of physical work he does, without considering the other side of human participation in production, such as wish, possession, contract, control, command obedience, etc.The physical process of commodity production is the real process of commodity production. How to understand this "real process"?
human societyIt is a complex phenomenon. The activities of human society are complexeconomic behaviorGenerally speaking, we find that it is ten million times more complex than the physical process of commodity production, but it must be operated by the physical process of commodity production.If the physical process of the production of a certain commodity is impossible, then the commodity cannot be produced. For example, if a certain raw material cannot be found, the production of automobiles cannot be realized. Furthermore, if it is technically possible to produce automobiles, the raw materials also have, butInstitutional arrangementsIf the iron ore is owned by a tribe and the tribe thinks that the mountain cannot be mined, the production of cars cannot be realized.Economicseconomic systemAs something to be determined, obviously, the arrangement of the system must be based on the physical process of commodity production!The standard for the quality of the inspection system is to see whether it can meet the requirements of the physical process of commodity production.Natural science,applied technologyThe operation and use of tools and the organization of production view production from the physical process of value creation. In the physical process of value creation, value is the finished productuse value。
Based on the physical process of commodity production, with an enterprise as the unit of investigation, and with costs and profits as the goal, the value here isequilibrium price。The process of commodity production is the process of obtaining profits.Its goal is to continuously gain profits and develop and expand the enterprise.The physical process of value creation conforms to the physical law, but the operation mode of the engineering process of value production is: possession, contract, command obedience, etc.Take the automobile production as an example. The iron ore belongs to the owner of the mine. The owner of the iron smelting factory must purchase the ore from the owner, negotiate with the owner, sign a contract, organize recruitment, pay workers' wages, and sell the iron to the automobile parts factory when producing iron. Then the owner of the iron smelting factory must calculate the profit. If the income reduces the expenditure, there is enough special profit surplus,Then the factory can continue to grow. On the contrary, if it cannot earn enough profits, the owner of the iron factory will not be able to continue.
Sociological process.
Based on the full understanding of human nature and society, correctly evaluate the value and its sourceSocial healthFor the purpose of development, guide the society to create more abundant real value.Its essence is a philosophical problem, a problem of values!
Many people are rightuse valueThere is deviation in the understanding of.Understand the use value asPure substanceProperty is wrong.Because the meaning of human existence has greatly exceeded biological survival.Greater significance than spiritual freedom.The physical properties of products have become the props of human spiritual life.Taking housing as an example, if only from the perspective of physiological needs, 50 square meters is enough for a family of three, but now people are looking for more than 100 square meters and high-end decoration. Obviously, people are not looking for simple physiological satisfaction but a spiritual enjoyment!Because of this, foruse valueThe understanding of "needs" cannot be summarized with the simple word "needs".It's not like thatNutritionAnalyze the value of food to understand the use value.The understanding of use value has risen to the understanding of the meaning of life.ancient GreekThere is a myth,King MidasAsk Silenus, the companion of Bacchus, what is the best and most wonderful thing for people?"The elf stood still and said nothing. At last, forced by the king, he suddenly gave out a shrill laugh and said, 'Poor floating life, son of impermanence and misery, why did you force me to say what you had better not hear? The best thing you could not get is not born, not exist, and become nothing.But there is another good thing for you - to die at once. '"
This story tells us that life is meaningless only from the perspective of biological existence, so human beings need to enrich themselves with morality, art and philosophy to findThe meaning of lifeOnly after we have a full understanding of the meaning of life can we understand the meaning and value of external materials to us, and understand why we need such a beautiful house instead of just a cave like animals.
Since the goal of an enterprise is to create value, managers need to know how to measure the creation of value. Measurement is the premise of management.
The "market value of enterprise capital" in the formula isequity capital And the market price of debt capital.If the shares and bonds of the enterprise are listed and circulated, the amount is not difficult to obtain.If the enterprise is not listed, the market value needs to be estimated by another method.
"Occupying capital" in the formula refers to the amount of capital (including equity capital andDebt capital)。It can be based onfinancial statementsThe data is obtained through adjustment.This adjustment is mainly a correctionaccounting standard For economic income andeconomic costTwist of.Main adjustment items includeBad debt reserves、Amortization of goodwill, Research andDevelopment costsEtc.Stern Stewart has established a set of systematic adjustment methods and solved relevant technical problems.The market value of an enterprise consists of occupied capital and market added value.When shareholders or creditors invest more capital, the total market value of the enterprise will become larger.
=(Equity market value - occupied equity capital)+(debt market value - occupied debt capital)
=Added value of equity+added value of debt
Generally, the value added of debt is due toChange in interest rateCaused by.IfInterest rate levelThe borrowing of new debt will increase the occupied debt capital and the market value of debt equally, and the added value of debt will be zero.In this case, the market value added of the enterprise is equal toShareholders' equityMarket added value, the maximization of enterprise market added value is equal toEquity marketMaximize value added.
Interest rate change isMacroeconomyThe manager cannot control the change.From manager'sPerformance assessmentFrom the perspective, the added value of debt is not management performance, which should be deducted in the assessment. The assessment of management performance should use the market added value of equity.From another perspectiveControllabilityFrom an angle of view, due to uncontrollable interest rateenterprise value Is equal to increaseshareholder value 。Because of this, the accurate financial target positioning isMaximizing shareholder wealth, i.eShareholders' equityMaximize the market added value of.Strictly speaking, it is different from the maximization of market value added of enterprises, and more different from the maximization of market value of enterprises or the maximization of equity market value.
Since the maximization of market value added of an enterprise has the same meaning as the maximization of shareholders' wealth when the interest rate is unchanged, managers should strive to increase the market value added of an enterprise.
The analysis process of the main factors affecting the enterprise's market added value is as follows:
Assume that the enterprise is also an asset that can generate futurecash flow , whose value can be permanently fixedgrowth rateModel estimation.
=[(After tax operating profit/investment capital - increase of investment capital/investment capital - cost of capital+increase rate) × investment capital]/(cost of capital - increase rate)
Since the growth rate is fixed:
Investment capital increase/investment capital=growth rate
Market added value=[(return on investment capital - cost of capital) × investment capital]/(cost of capital - growth rate)
The enterprises hereMarket added valueAndEconomic value added(i.eEconomic profit）Connected.Economic value added is measured by years, and market value added is the present value of expected economic value added in each year.
Economic value added=After tax operating profit - capital cost × investment capital
=(After tax operating profit/investment capital-capital cost ）× Investment capital
=(Return on investment capital - cost of capital) × investment capital
Economic Value Added and EnterprisesMarket added valueBetweenDirect contact, making it the most reasonable basis for performance appraisal, which can make the incentive compensation plan consistent with increasing enterprise value.Economic value added andnet present valueThere is an internal connection. In Chapter 10Enterprise value assessmentWe explained inEconomic profit methodConsistency with discounted cash flow method.Therefore, the net present value of investment, the present value of economic added value caused by investment, and the enterprise market added value caused by investment are equal.just because of this,Net present value methodBecome the most reasonable investment evaluation method.
To sum up, there are three factors that affect the value creation of enterprises:
It is worth noting that these three factors affectEnterprise added valueThe impact of is different.The rate of return on investment capital is the molecule of the formula, and improving profitability helps to increase market value;capital cost Appear in the numerator (minus term) anddenominator(Add item), the increase of capital cost will decreaseMarket added value；The growth rate is the minus term of the denominator. The impact of increasing the growth rate on the market added value depends on whether the numerator is positive or notnegative。When the formula molecule“Return on investment capital-When the "cost of capital" is negative, increasing the growth rate will make the market added value smaller (that is, the market value will suffer more losses).Therefore, companies with high growth rates may also damage shareholder value, and companies with low growth rates can also create value. The key is whether the return on investment capital exceeds the cost of capital.growth rateThe level of value only affects the amount of value created (or reduced), and cannot determine the nature of value created or reduced.
Although the growth rate cannot determine whether the enterprise creates value, it can determine whether the enterprise needs to raise fundsfinancial strategy Important basis for.
4. Growth rate, financing demand and value creation
We define this growth state as high-speed growth.Here, "cash shortage" refers to the currentoperating efficiencyandFinancial policyCash generated under, insufficient to supportSales growthIt is necessary to balance cash flow by improving operating efficiency, changing financial policies or issuing additional shares.
(2) Sales growth rate is lower thanSustainable growth rateThe enterprise will have cash surplus at that time.
We define this growth state as slow growth.The "cash surplus" here refers to the cash generated under the current operating efficiency and financial policies, which exceeds the need to support sales growth. The remaining cash needs to be invested in projects that can create value (including expanding the scale of existing businesses or new projects), or also given to shareholders.
(3) When the sales growth rate is equal to the sustainable growth rate, the enterprise will have a cash balance.
We define this growth state asBalanced growth。The "cash balance" here refers to the cash generated under the current operating efficiency and financial policies, which can be balanced with the needs of sales growth.This is a theoretical state, displayedout-off-balanceIt is absolute.
From financialstrategic targetConsidering, we must distinguish two kinds of cash shortage: one is the cash shortage that creates value;The other is the shortage of impaired value.For the former, financing should be sought to support high growth and create moreMarket added value；The latter should be improvedSustainable growth rateTo reduce the loss of value.In the same way, there are two kinds of cash surplus: one is the cash surplus that creates new value, and enterprises should use this cash to increasegrowth rate, create more value;The other is the cash surplus that reduces the value. The enterprise should return the money to shareholders to avoid more value loss.
To sum up, the main factors affecting value creation are:
