Analysis On Ways Of Corporate Value Creating

With the development of the theory of financial management, the theories of financial goal are also developing well. As the goal of value maximizing of enterprise can fully consider the time value of money and the relationship between risk and reward. And it takes into account the multi-interest of business owners, creditors, operators, employees and so on. If we chose this financial goal, we can better increase the wealth of a corporate and be conducive to the long-term and stable development of a corporate. Therefore, this financial goal has become widely accepted.In the case of enterprise value maximization as the financial goal, through what channels to enhance corporate value is particularly important. The access of value achieving often needs a specific business model. So now, the competition among enterprises is not only competition in the product, marketing, services and resources, but also the competition in the business model. Effective commercial mode can provide the effective ways to improve the value of enterprise. Direct selling, as a business model, it’s representation in Chinese market is the business model of Amway(China). The key for Amway’s success is the business model of direct selling.The third chapter mainly discussed the core of the Amway direct selling business model:salary system and team system. When sales staffs only get personal commissions and market development funds, the human capital property right has the characteristics of debt. When sales staffs obtain the stability of market leadership bonus, the human capital property right has the characteristics of both debt and equity. When sales staffs obtain sales manager bonus and the bonus above this level, human capital property holds the ownership characteristics. Therefore, in the system the role of staffs has changed. And the human capital involved in the distribution of the interests of the company.In addition, salary model and team model combined can make the salaries of those who work hard, beyond their own leaders. This system changed the logic between job promotion and salary. Thus, to make staffs to concentrate on improving their performance and quality of service and enables companies to realize value maximization.The fourth chapter mainly discussed four aspects. Firstly, this paper argues that the salesperson belong to the carrier of human capital. They create value during direct selling process. The value creating processes expand to the sales process. Salespersons in this process create the added value of the product.Secondly, the value measurement of the company under this business model also has its own characteristics. By analyzing the formulas, we have proved two ways to enhance the company’s value. One is reasonable arrangements for the investment in human capital; the other one is improve the efficiency of human capital. This further illustrates the role of human capital for the enterprise value.Thirdly, Amway direct selling business model has a bidirectional catalytic role, and it makes the convergence of the interests of employees and owners.Fourthly, other favorable factors, including cost effective control, quality assurance of income and the pattern of sales growth.The fifth chapter discusses the beneficial effects of the business model of internal stakeholder relations. Under this model the relationship between managers and employees is more harmonious. Contradictions between owners and managers have eased. And the system can help financial goals to play oriented and unifying role.From the above analysis, the sixth chapter drew inspiration for business model innovation. This paper argues that we should focus on exploring the value of human capital and more ways to create value.Because of this kind of system has explored the human capital, staffs have more capacity to create value for a company. And the value creating process has expanded to sales process. What’s more, it can coordinate the relationship among stakeholders. In general, Chinese enterprises should learn from it when innovate a business model. At the same time, if we have choose the enterprise value maximization as the financial goal when we innovating the business model, we should pay attention to exploring the value of human capital. Only in this way could we find an effective business model.