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Management Transformation and EVA Case Study

Comment on the attached article and advise -
1- What is the point the Author is making?
2- Can we Agree with his point and why or why not?


Solution Preview

Thank you for posting today. It is my goal to provide ideas, definitions, research help, and instructions on how you, the student, should approach the assignment.

Eseentially, we are talking about EVA, or economic value added, from two different perspectives. The first paper talks heavily about the accounting aspects of EVA. It starts with the assertion that current earnings metrics are inadequate, then draws logical steps showing how EVA is a better measure. It's an interesting concept, adding value to the company. The 2nd paper discusses pay-for-performance incentive plans. Generally, in the US, PFP plans are implemented poorly with frontline employees, and are usually seen at the upper levels of an organization. The 2nd paper makes a case that by implementing PFP into all levels ...

Solution Summary

The case study is about EVA, or economic value added, and the articles both provide a strong position in regards to EVA. The solution talks about the various points, and provides the tools needed to answer the assignment questions.