Essay topic: Shareholder value provides a comprehensive framework for evaluating strategic and tactical marketing decisions
Modern enterprise is uninterrupted to ameliorate its own system and constitute accredited standard or criterion on institutional. Today's directorate and top management seem to be more concentrating on shareholder value. Obviously, aim to maximize shareholder value become most enterprises' crucial goal that may affect business strategic and tactical decision-marking. The shareholder value as definition is the value that was contributed from the company which shareholders invest money in. Shareholder value has especial significance in relation to an organization and its business activities. The only reason for maximizing shareholder value is because of offer high return to shareholder will be bring more investment or contribution. If company did not offer any wealth increment to shareholder will be cause the serious consequence that no one would like investing fund into the business. Therefore, shareholder value is a foremost measuring standard for attracting people to invest money.
Some early marketing theory indicated that marketing is intention to maximize customers' satisfaction. The most of marketing activities were focused on this point of view. The reason was that the majority of marketing people did not believe the relationship between shareholder value and marketing. Actually, shareholder value and marketing are supplementing each other in modern business. By generally speaking, 'marketing is the management process that seeks to maximize returns to shareholders by developing relationships with valued customers and creating a competitive advantage.' (Doyle, 2000, pp. 233-45). Obviously, shareholder value could affect marketing decisions making and vice versa on this standpoint. To base on this point of view, shareholder value provided a useful framework for evaluating marketing strategic and tactical decisions particularly. This framework could distinguish the decisions making between strategic and tactical.
In terms of strategic and tactical are seem...