Abstract
Creating Value for shareholders in a globalizing World
Value has been described as anything that satisfies the needs and requirements of organizational stakeholders. The organization can only satisfy its shareholders by developing strategies that will maximize the value of the firm over its life-span. The strategies that an organization must use to create value for its shareholders have change due to the globalization of the marketplace and the introduction of foreign competition. Creating value in such a global marketplace is vital for the survival of the organization and has now become a multifaceted endeavor. Yet, in spite of its complexity, many organizations have found different ways to create value in a very competitive marketplace by manipulating a wide verity of competences. These competences have changed immensely over-time due to the globalization of the business world, and now present the new hurdle of developing new competences to sustain the goal of continued value of the organization. The paper seeks to examine how organizations develop new competences to create value in a globalizing world for its shareholders.
Introduction:
The goal of countless corporations around the world is to create value for their shareholders in the most profitable ways possible. This is done by organizational management developing proficiency within their respected industries that result in competitive advantages in the form of “harmonizing complex streams of technology and work activity” (1990, C.K. Prahalad and Gary Hamel) This allows organizations to offer end users of their products superior benefits or greater value, develop methods not easily imitated by competition, and create greater value for its shareholders. In general, c ...