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In this quickly evolving and dynamic economy, the value creation is the primary goal of the any company. With the increasing competitors in the market, if the business providing same value to the customer then it’s difficult for the company to survive. Creation of value means creating value for the customer and eventually creating value for the shareholder which affect the funding of your business for future expansion and capital investment.
How Value Creation is essential today ?
If we talk in terms of financing term, value creation definition is not limited to only increase revenue or bottom line but also recognized as a better management goal rather than just only financial ratios. If Value creation is defined in a right manner than it will be easy for the manager to allocate the resources in the right place and at right time to achieve the goal. The very first step in value creation is the whole understanding about the industry parameters and driver which leads to add the incremental value to the company.