CFOs and Strategists Forging a Common Framework
In this modest environment where everybody is ready to pull your legs, companies all tries to be efficient as much as they can. In different organizations, there are different point of views. Even inside the organization the difference of opinion is compulsory element these days. Some executives gives value to shareholders and thought that they are the real back bone to manage a company. This mind set of executives give extra importance to shareholder and tries level best to satisfy the shareholders. Another group of executives gives importance to gain competitive advantage as soon as possible and on long term basis.This group of executives gives less importance to the shareholder as compare to the competitive advantage which is their first priority. In case it has been mentioned that a company maintain a real competitive advantage when their total cost is low as compare to the sales and over all out put which should comparatively on higher side to gain a reliable ,strategic and sustainable competitive advantage. In a survey from 1000 CEO’s it has been found that around 58% whispered that the current value of their companies stock price did not represents the companies genuine or real value. In order to come up with the excellent short term results, some managers and decision makers sacrifices the fantastic and profitable long term investment opportunities which would give return on long term basis. Here the actual scenario is quiet clear for the companies decision makers or managers because investors real investment approach is shown in stock market and the over there the stock prices are driven by companies long terms goals not the short term tactical goals and approaches. Standard share holder model should be followed because it gives you a proper aligned path for a sustainable competitive advantage.It is a common practice that when a company investment for on the strategic basis so CEO expects that this would benefit them beyond the value growth decision.The marketplace value of an organization will for sure decrease when company would ........................................
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