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VALUE CREATION
Dr. Salau, O.P
Quotes
VALUE CREATION Introduction
• Business begins with value creation.
• The most successful organizations understand that the purpose of any
business is to create value for customers, employees, and investors, and
that the interests of these three groups are inextricably linked.
• Therefore, sustainable value cannot be created for one group unless it is
created for all of them.
• The first focus should be on creating value for the customer, but this cannot
be achieved unless the right employees are selected, developed, and
rewarded, and unless investors receive consistently attractive returns.
VALUE CREATION defined
• Value creation is the primary aim of any business entity. Value is created through
knowledge and creativity.
• In today’s economy, value creation is based typically on product and process innovation
and on understanding unique customer needs with ever-increasing speed and precision.
• For the customer, value creation entails making products and providing services that
customers find consistently useful.
Business success comes from value creation for owners, customers, and employees.
Value is being built or destroyed throughout your business.
Creating Values for Customers
• Business organisations should constantly look for ways to provide value to the
customers and employees.
• A CEO alluded that “when we create value for our employees and customers, they
provide value to us as owners”.
A scenario ……………………………
• For example, a business owner created a high-tech gadget at a
high price BUT customers aren’t willing to pay the price or don’t
see a need for the device.