Strategies Used to Create Shareholder Value

Introduction

Managers and business executives have maintained focus on the quarterly earnings of a firm as the main drivers for the firmís value in the stock market. Despite being of importance in identifying an organizationís stock market surprises, they are not the main drivers. The key to an organizationís higher stock market value is the real corporate performance, where the funds available for corporate management drives a higher return the can be achieved elsewhere. A higher real corporate performance increases a firmís share prices and dividends, and thus, increasing the shareholderís return. To create shareholder value, managers should have an adequate understanding of a businessís key value drivers (Mzera, 2012). Values drivers are variables that have considerable effects on the value of an organization. This research looks into the strategies used in the creation of shareholderís value based on the article by Akroush, (2012), ďAn empirical model of marketing strategy a...