Any discussion of winners and losers in corporate world, needs a definition of performance that provides simple criterion for identifying winners.
Contrary to common belief, the performance of a business should not be measured by its scale, or its growth, or its market share, or its profits, or its return on capital.
These are all indicators of performance but the best single measure must be the “added value”, which is the difference between the market value of a firm’s outputs and the total cost of its inputs.
Watch to see why;
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