- Subject index
Business Planning and Market Strategy offers students, entrepreneurs, and executives penetrating insights into developing business plans and market strategies that bolster the odds of succeeding in today's highly competitive marketplace. Rather than reduce the planning process to mechanistic, step-by-step instructions, which promote “thinking inside the box”, author E.K. Valentin provides practical planning guidelines that encourage creative strategic problem solving. Drawing on both his business experience and the business literature, he explains not only what entrepreneurs and executives should look at when pondering plans and strategies, but also what they should look for. The book's unique applied perspective, sets Business Planning '; Market Strategy apart from conventional “how” planning guides.
Chapter 7: Creating Shareholder Value by Creating Customer Value
Creating Shareholder Value by Creating Customer Value
[People] don't want quarter-inch bits. They want quarter-inch holes.
In the factory we make cosmetics. In the store we sell hope.
Pan Am takes good care of you. Marks & Spencer loves you. Securious cares. At Amstrad, we want your money.
The importance of creating value is duly noted throughout this book and the business literature. The question is, “Value for whom?” Marketers would say, “Value for customers, of course!” Top executives would agree, but would add that shareholder value, which derives from profit, is their ultimate concern.
This chapter introduces and elaborates on the conceptual framework diagramed in Figure 7–1. It puts shareholder value, customer value, and market strategy further ...