What is EVA? Definition

What is EVA? Definition Economic Value Added (EVA) is a financial performance method to calculate the true economic profit of a corporation. EVA can be calculated as Net Operating Profit After Tax minus a charge for the opportunity cost of the capital invested. EVA ( © / ™ Stern Stewart & Co.) is an estimate of the amount that earnings differ from the required minimum rate of return (against comparable risk) for shareholders or lenders. The difference can be both a surplus or a shortage. EVA compared with MVA Unlike Market-based measurements, such as MVA, EVA can be calculated for a divisional (Strategic Business Unit) level. Unlike Equities measurements, EVA is a flow and can be used for performance evaluation over time. EVA compared with EBIT and EPS Unlike accounting profit, such as EBIT, Net Income and EPS, EVA is economic and is based on the idea that a company must cover both the operating costs AND the capital costs. Calculation of EVA. Formula The basic formula for calculating EVA is:       Net Sales –     Operating Expenses ——————————————————       Operating Profit (EBIT) –     Taxes ——————————————————       Net Operating Profit After Tax (NOPAT) –     Capital Charges (Invested Capital x Cost of

Change Management and Growth

Change Management and Growth is depicted in the iceberg of Wilfred Kruger, which is, arguably, the best written document capturing the essence of change.                                               Change Management and Growth Change management and Growth involve a number of concepts including those of Andrew Pettigrew and Richard Whip.                               Wikipedia has this to Say. Change management (sometimes abbreviated as CM) is a collective term for all approaches to preparing and supporting individuals, teams, and organizations in making organizational change. It includes methods that redirect or redefine the use of resources, business process, budget allocations, or other modes of operation that significantly change a company or organization. Organizational change management (OCM) considers the full organization and what needs to change,[1] while change management may be used solely to refer to how people and teams are affected by such organizational transition. It deals with many different disciplines, from behavioral and social sciences to information technology and business solutions.[2] In a project-management context, the term “change management” may be used as an alternative to change control processes wherein changes to the scope of a project

Weekly Newsletter 02 03 2018

Welcome to the first of our Weekly Newsletter 02 03 2018 The Newsletter will include information I have gleaned from many sources, acknowledged of course. I hope you will find this of interest.     SAY OF THE DAY “Start today, not tomorrow. If anything, you should have started yesterday.” – Emil Motycka            4 Signs That You Should Quit Your Failing Startup Business   You’ve poured your heart and soul, your time, your money and more into your business, so it simply must succeed… Right? While that’s nice to say, it’s not always true. The more you’re able to realize that success can come and go, the better positioned you’ll be to take advantage of other, more promising opportunities. Here’s how to know when to give up: 1) Are you the only one who still believes in your business? Sometimes the smartest people can have a blind spot when it comes to their own vision. Like that girl or boyfriend that all of your family and friends didn’t like – it may be time to get a clue. 2) Are the competitors actually better? What if your idea for a business consisted of wrapping a

Four Dangerous Traps Online Marketers Must Avoid

by Mateusz Sobieraj  |  With Compliments of Marketing Profs and excellent source of professional Marketing Content. Join them today. – NO I am not an affiliate but a very happy 14 year user of their products as a Premium and Free Member. The abundance of new technologies and powerful opportunities in marketing can get overwhelming for a marketer. How in the world could you not feel lost in the jungle of solutions at your disposal? And if you use an agency, how can you know that it’s truly benefiting your company? Having conducted or supervised more than 900 digital campaigns, I’ve come across several dangerous traps that are initially hard to spot. This article will point out the four most common. 1. Don’t let the CTR deceive you  One of the most frequently used indicators of the effectiveness of online advertising is the clickthrough rate (CTR), the ratio of the number of clicks on an ad to the number of views. Imagine attractive advertising formats, beautiful graphics, and strong CTAs encouraging taking action. A customer clicks on the ad and lands on a website. But there’s a problem: The page is not consistent with the creative’s visual design, or the user is

A Simple Step By Step Sales And Marketing System That Anyone Can Apply To Their Business

At last! A Simple Step By Step Sales And Marketing System That Anyone Can Apply To Their Business – No Matter What Your Experience, No Matter What Product Or Service You Sell, And No Matter How Fierce The Competition Is… “How To EXPLODE Your Sales And Profits, Get Customers By The Bucketful, And Keep Them Coming Back For More” The Xtreme Business Program ™ is not the first program of its kind but this one has been modified with “Been There, Done That with a T-shirt” to prove it.   Some of our Clients have had 197% increase in sales growth in the past 3 years and we have testimonials to prove it.We act as your personal mentor and fast tracks you and your business to reach your goals and aspirations using this program. We act as your personal mentor and fast tracks you and your business to reach your goals and aspirations using this program. A Simple Step By Step Sales And Marketing System That Anyone Can Apply To Their Business You, yes you, can do it when you follow this ‘paint-by-numbers’ Mentoring Program… We have found it best to carry out a three-month mentoring program with you at R12,000 per

Business Improvement

Dear CEO/Managing Director, Executive Director we are creating this post to tell you that Business Improvement is at hand Does your business suffer from: declining market share, no marketing strategy, no sales plan or controls in place slow manufacturing the worst on time in full ratio in the industry rising cost of sales due to poor procurement processes inappropriate processes, poorly trained staff, sales slumping inventory climbing more and more obsolete inventory poor accounting not up to date with SARS requirements no cash flow control a horde of dissatisfied customers, and on and on and on. Business Improvement You have so many issues to attend to, your staff are all ‘so busy” they cant support you and if they had time would not be as competent as you would like them to be in order to support you. In order to fix the problems mentioned above, we have our program called The Business Support for the CEO. Our New Year is underway so don’t let your business become a tragedy. Contact us. Name(required) Email(required) Website Message   Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on Google+ (Opens in

Eight tell tale signs of a declining business.

Check out these Eight tell tale signs of a declining business. If you’re still uncertain that Your business is in serious trouble, then pay attention to the following Eight telltale signs of a declining business 1. Low sales. The first, and most obvious, sign that your business is sinking is low sales. This could either be lower than expected projections or a decrease in sales than the previous quarter. Your business can’t succeed without a steady income to pay all of your expenses. When you notice that there’s a sudden decrease in sales, you need to diagnose the problem. Begin by surveying your employees and customers, conducting a competitive analysis and examining the outside environment, like societal changes or natural disasters.  This should give you a better understanding of why there’s a decline in sales and if there will be a turnaround. If it doesn’t seem likely the industry or your business can turn things around, then it’s rather clear that your business is in trouble. 2. You can’t remember the last time you spoke to a client. Customer service reps aren’t the only ones talking to your customers. Even as a founder and CEO, it’s your responsibility to talk to your potential

Grow Your business up to 179% in a single Year.

For those companies wanting to grow their business up to 179% in a single Year, then this post is for you.   Declining business is a totally demotivating position to be in.  Nothing seems to work, sales are getting worse and worse, customers are leaving you in droves and the worst is Your cashflow is disappearing. Your staff seem at a loss and they have a dread fear of losing their jobs.     We understand the frustrations you are experiencing as you feel you have tried everything and nothing seems to work.  You might even have sought outside help, gone to a Business Support organisation offered by the UK Government or Local City Council. The same applies to those of you in South Africa. Business rules in each country are different but the primary business rationale is to sell a product collect the money and grow. You have  been to training sessions offered by various institutions but it all seems too theoretical.  You feel: “They don’t understand what it means to run a small to medium size business.” We’ll we do understand. Don’t despair, we have been helping businesses like your since 2004 and have helped literally hundreds of them.

Google Alerts

I receive Google Alerts daily so I have decided to share with those who are registered as Subscribers on my site. I urge you to do so. Once done I will check the veracity of the registration as I am being plagued by persons who attack my site with unsuitable comments. New User RegistrationChoose a Username*First Name*Last Name*Address 1City*State*Zip*Country*Day PhoneEmail*Input the code:*Required field Google Alerts Business Leadership SA welcomes Eskom back to the fold Citizen South African power utility Eskom has on Friday, been welcomed back to the … on November 9 and 10 , to garner investor support and trust for the company. … Mohale said that business believes in South Africa’sfuture and wants to … Asian automotive companies on the hunt for growth in Africa How we made it in Africa With the support of the China-Africa Development Fund, the FAW Group has set up an assembly plant in Coega, South Africa, with its first commercial … Now for something completely different. At last! A Simple Step By Step Sales And Marketing System That Anyone Can Apply To Their Business – No Matter What Your Experience, No Matter What Product Or Service You Sell, And No Matter How Fierce The Competition Is…  The Xtreme Business program.   Finding a home on the Moon Daily Herald Maybe