engleski

Business Value Added Management and Company’s Financial Performance

Business value added is a complex multilayer category whose elements are conflicting from the perspective of the company. Elements of the value added structure are: salaries, wages and employee compensations ; interests ; income taxes and net profit. The aim of this paper is to research and analyze the interrelation of value added management activities and company’s financial performance. The research hypothesis is that adequate strategic approach to revenue management, cost management, human resources management and capital investments management affect the overall financial performance in different business cycle phases. The verification of empirical evidence is provided by the survey on the sample of the Croatian large companies. Respondents' standpoints on the importance of strategic areas, as well as their opinions on frequency of using specific strategic activities in different phases of business cycle, i.e. expansion, stagnation and recession are researched. Obtained results show that managers have different priority ranking of strategic business value added management areas and use different strategic activities with regard to phase of business cycle in order to achieve the best financial result.

value added management; business cycle phases; financial performance; profitability

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