Critical management perspectives - Essay Example

When 70 percent of the surveyed individuals prefer to buy Company A’s products and services over the Company B’s competing products and services, Company A’s products and services has more value over the value of Company B. Value includes the value of the supply chaini. Academic theory /literature to justify my idea One research shows that the company must exert efforts to create and enhance business valueii. For the business entity, value equates to the quality of the services offered.

A company that delivers the same product within two days has a lower value when compared to another company that offers to deliver the same product or service within a lesser time period. The research shows that value includes quality of the factors that contribute supplying the immediate needs of the company’s current and future customers. The factors include the suppliers’ delivery of the company’s raw materials and other quality supply needs on time. Further, another research states that value creation and enhancement includes implementing the best alternative marketing and management plansiii.

The research shows that value creation in the contemporary business organization is complex and many-phased topic that incorporates changing factors. For example, outsourcing will increase the company’s revenues. . Economic principles dictate that as the demand for the company’s products and services decrease, the current and future customers demand for the company’s products and services increaseiv. Furthermore, another research indicates that business value investing and improvement should be prioritizedv.

The value investing and improvement included companies are forecasted to have high value. There are many factors that contribute to increasing and retaining the company’s high business value. The factors include the company’s historical revenue trend. The company that shows it generated three prior year’s high revenue will have a higher business value compared to the company that has a tract record of three years of lackluster (low) revenue outputs. Additionally, the company that has shows it generated net profits for the past three years has a higher business value compared to a company that had generated net losses for the past three years.

Moreover, business combinations contribute to higher business valuevi. When a big company acquires a smaller company, the business value of the smaller company is catapulted to higher levels. Normally, big companies merge or combine with some of its competitors in order to increase its market presence. The increased market presence increase the company’s revenues and profits. Often, the fair market values of the separate companies are used when determining the higher business value of the merged or combined company.

Further, the merger or consolidation of the two companies includes adding one company’s goodwill or good name in the new combined company’s higher business value. Goodwill can be defined as the popularity of the company’s name among