VALUE CREATION

DR. OGBARI, MEI.

OBJECTIVES OF STUDY

• At the end of this lecture one should understand the term value & entrepreneur value
creation
• 5 parts of every business
• Enablers of value
• Effects of value
• Customers values
• Sustainers of value
• Points to note
INTRODUCTION

✓The foundation of business is the creation of value. It's what sets you
apart from the competition, ensures long-term clients, and gives your
brand and solution a specific meaning. Without it, your one-of-a-kind item
will be viewed as simply another commodity by your target market.
✓ values are those beliefs that guide actions and judgements across various
situations
MEANING OF VALUE

✓ Values connotes what people term good or bad

✓In business, value is defined as the objectives or aim as well as the manner
in which the business affairs should be conducted.
✓Entrepreneurs share these values and are also referred to as
entrepreneurial values
✓As an entrepreneur, one is able to develop certain values due to one`s
active interaction between the environmental factors, your personal
factors and action factors.
MEANING OF VALUE

• Without value creation, a business cannot exist

• The best businesses in the world are the ones that create the most value
for other people.
• Customers value is what gives your business success as an entrepreneur
• If customers don’t buy your products nothing will work.
• The customers form one of the important stakeholders nowadays.
IMPORTANCE OF VALUE CREATION TO ENTREPRENEURS

• Value creation is a structural benefit for the enterprise because companies with higher
value rates can grow quicker, have better access to the capital markets, provide
employees with more opportunities and have greater capacity for self-sufficiency.
FIVE PARTS OF EVERY BUSINESS

➢ Value creation: deals with discovering what others need and creating it
➢ Marketing : centers about the attraction and building a demand/ market for the things
created(products and services).
➢ Sales : turning potential buyers/prospective customers to actually paying customers
➢ Value delivery: deals with giving the customers what the entrepreneur promised and
ensuring that their satisfaction.
➢ Finance : this is the ability to bring inadequate money/profit to continue running the
venture and make one`s efforts worthwhile.
ENABLERS OF VALUES

• Leadership and culture provides direction, branding etc

• Relationship /interaction : providing confidence
• Creativity: providing capability
• Systems and Technology
• structure,
• Employees
• Processes
EFFECT OF VALUE

• Customers delight
• Customers satisfaction
• Customers retention
• Customers loyalty
CUSTOMERS VALUES

• Good products
• Good branding
• Good quality
• Good pricing
• Good customer services
• Good warranty
• Good perceived values
• Good feelings
VALUE SUSTAINERS

• Continuous innovation
• Efficiency
• Effectiveness
• Technology
• Responsiveness / high customers' services relationships
POINT TO NOTE

❑ if you want to improve your value , focus on improving skills that directly relates to
these 5 parts of business already discussed in the slides.
❑Know that as an entrepreneur its not every skill or area of knowledge that is
economically of value.
❑Some personal voluntary services may not add value
❑Only products and services you could get paid for provide value.
END OF LECTURE

• QUESTIONS????

• THANKS FOR LISTERNING