NAME: KENNETH ACE TORREROS SECTION: BSIT 1-A DATE:9/27/22

ACTIVITY
• Instructions: In 800 words, answer the questions below using a narrative or essay format. (20 points)

• Will you aspire to have a business that creates value for society or a company that makes value for
the shareholders? Why?

-Value creation is especially important to entrepreneurship. You will not be able to gain customers to
make money if your product or service does not provide any value to them. To be a successful
entrepreneur, you must be able to provide a quality product that people are willing to pay money for.
You must also be able to beat out any competitors as well. You must prove to your customers that
your product is better than the next guy’s product, or that you will provide something that will benefit
them to buy yours over theirs. So how can you strike this balance between the value creation process
and managing your time well? This involves examining your sales processes at all stages of the
customer's life-cycle, starting with the top of your pipeline. Assuming your product or service offers a
worthwhile solution, there are going to be a lot of potential customers out there for your team to
pursue. But there is always the wrong customer for your business model too. Filtering out
mismatched prospects from the offset is key. These leads are unlikely to become long-term customers
or provide brand advocacy to attract more sales. They carry the potential to damage your reputation.
You need to find customers that you can count on so you can effectively forecast revenue and avoid
wasting your sales force’s time chasing after dead leads. Empowering your sales team to let go of ill-
fitting leads and prioritize opportunities where they can really bring value is the first step to fostering
long-term relationships that will generate sustainable and profitable revenue for your business. High-
value and high-quality leads should be the priority for your sales team. Value creation is the primary
aim of any business entity. Creating value for customers helps sell products and services, while
creating value for shareholders, in the form of increases in stock price, insures the future availability
of investment capital to fund operations. From a financial perspective, value is said to be created
when a business earns revenue or a return on capital that exceeds expenses (or the cost of capital).
But some analysts insist on a broader definition of "value creation" that can be considered separate
from traditional financial measures. "Traditional methods of assessing organizational performance are
no longer adequate in today's economy," according to ValueBasedManagement.net. "Stock price is
less and less determined by earnings or asset base. Value creation in today's companies is increasingly
represented in the intangible drivers like innovation, people, ideas, and brand. When broadly defined,
value creation is increasingly being recognized as a better management goal than strict financial
measures of performance, many of which tend to place cost-cutting that produces short-term results
ahead of investments that enhance long-term competitiveness and growth. As a result, some experts
recommend making value creation the priority for all employees and all company decisions. "If you
put value creation first in the right way, your managers will know where and how to grow; they will
deploy capital better than your competitors; and they will develop more talent than your
competition," Ken Favaro explained in Marakon Commentary. "This will give you an enormous
advantage in building your company's ability to achieve profitable and long-lasting growth." The first
step in achieving an organization-wide focus on value creation is understanding the sources and
drivers of value creation within the industry, company, and marketplace. Understanding what creates
value will help managers focus capital and talent on the most profitable opportunities for growth. "If
customers value consistent quality and timely delivery, then the skills, systems, and processes that
produce and deliver quality products and services are highly valuable to the organization," Robert S.
Kaplan and David P. Norton wrote in their book Strategy Maps: Converting Intangible Assets into
Tangible Outcomes. "If customers value innovation and high performance, then the skills, systems,
and processes that create new products and services with superior functionality take on high value.
Consistent alignment of actions and capabilities with the customer value proposition is the core of
strategy execution. Although the intangible factors that drive value creation differ by industry, some
of the major categories of intangible assets include technology, innovation, intellectual property,
alliances, management capabilities, employee relations, customer relations, community relations, and
brand value. According to Kaplan and Norton, the link between these intangible assets and value
creation is corporate strategy. It is important to note that investments made to enhance intangible
assets (research and development, employee training, and brand building, for example) usually
provide indirect rather than direct benefits. In this way, focusing on value creation forces an
organization to adopt a long-term perspective and align all its resources toward future goals.