Value based management and productivity : the mining situation / Tania Ruby Pienaar.

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dc.contributor.author Pienaar, Tania Ruby
dc.date.accessioned 2011-09-29T13:08:06Z
dc.date.available 2011-09-29T13:08:06Z
dc.date.issued 2009
dc.identifier.uri http://hdl.handle.net/10394/4832
dc.description Thesis (M.B.A.)--North-West University, Vaal Triangle Campus, 2010. en
dc.description.abstract The cost of mining companies listed on the Johannesburg Stock Exchange (JSE) have not been immune to inflationary pressures. Increasing cost pressures, lower grades, and reduced electricity supply imply that management will have to apply rigorous cost saving measures to mitigate the effect on profits. One such measure is value based management (VBM). VBM is a powerful management framework with the aim to focus all managerial processes on shareholder wealth creation. It therefore encourages all staff levels within the organisation to focus on value creation. Various metrics have been developed to measure the value creation process within the organisation. Discounted cash flow to the present value at the weighted average cost of capital lies at the heart of these metrics. Through the use of value mapping, underlying value drivers are linked to the overall strategy of value creation. While value-based management is used to increase shareholder value, one of the serious drawbacks is the short-term focus on immediate results to the detriment of long-term sustainable competitive advantage. A quantitative study was done on the mining sector to determine if investors can use productivity as a value based management measurement to predict share price movement. The results from this study indicate that productivity measures do not influence share price. Productivity is good for determining shareholder value, but not adequate for determining stock performance. Even though it was found that investors do not rely on productivity measures, companies should still focus on creating value for the shareholders. It is beneficial to investors to understand what value based management is, and to understand management actions in terms of value creation. en_US
dc.publisher North-West University en_US
dc.subject Value based management (VBM) en_US
dc.subject Net operating profit after tax (NOPAT) en_US
dc.subject Economic value added (EVA) en_US
dc.subject Cash flow en_US
dc.subject Shareholder value added (SVA) en_US
dc.subject Discounted cash flow (DCF) en_US
dc.subject Productivity en_US
dc.title Value based management and productivity : the mining situation / Tania Ruby Pienaar. en_US
dc.type Thesis en_US
dc.description.thesistype Masters en_US

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