valuation.
At the core of our Company Strategy work is an emphasis on managing to enhance Shareholder Value by improving financial and operating performance, competitive position and advantage, and market valuation. We do this initially at the Company and Division levels by analyzing Profit, Growth and ROE metrics to evaluate operating performance, relative competitive position, and market valuation.
Beyond Company and Division level results, MeritBSC refines these profit, growth and ROE metrics by analyzing them at the Product/Service, Customer/Segment, Delivery Channel and Geographic Market levels of performance.
By pushing Performance Metrics to the most refined operating unit level, better Management Decisions can be made about how to invest and use resources (i.e., capital, technology, people, advertising) leading to success via improved performance.
The reason for pushing performance analysis to the most refined operating unit level is that it is closest to the individual customer purchase transaction. Better Business Decisions get made when they are based on customers
The Profit, Growth & ROE analysis is intensive because it should be simultaneously evaluated at all levels for good decisions.
MeritBSC focuses on Profit, Growth and ROE metrics because they are the quantitative measures that reflect Competitive Advantage, and because they are the drivers of Market Valuation and Shareholder Value.
ROE is used because it includes Balance Sheet, Income Statement and Cash Flow factors at the same time.
If you have questions about how Profits, ROE and Growth directly affect Business Valuation, and how this work can be applied to evaluate and improve performance at your Company, send an e-mail inquiry for a prompt and courteous reply.
For Competitive Performance Benchmarking, and Industry & Competitive Analysis, please see Competitive Benchmarking.