The Research On Telecommunication Enterprise's Value-Based Management Based On The EVA Pattern

As a concept, Enterprise's value has been carried out clearly abroad as far back as the middle period of the 20^th century, and was applied to enterprise's merger and fixing the stock price extensively. The Value Based Management has already become a kind of new enterprise management mode of the western business circles sine the eighties of the 20 century, when the amount of Hostile Merger in the global capital market began to increase. Its validity has been proved by a number of international enterprises, while it is just in a preliminary stage in the enterprises of our country. Accompany with the rapid development of the global capital market and more and more state-owned enterprises entering into the World Top 500, the enterprises are facing more severe competition, enterprises will certainly put value creation as their primary goal to meet the requirement of modern management model.The first part of the article starts with enterprise's goal theory and enterprise's value drivers. Meanwhile the theoretical root of Value Based Management—shareholder's value maximization is analyzed. This part has also discussed the relations between Value Based Management and the enterprises' value creation, then built the value creation chain. The third chapter has introduced the EVA concept and the excellence of it comparing to the traditional value indices, then analyzed the key value driving factors of the enterprise and the relationship between EVA and value creation. The fourth chapter discussed the four aspects of the Value Based Management based on the EVA pattern separately. They are the strategic importance of the value management based on EVA pattern, namely strengthening the importance of the EVA based management from a strategic level; achievement appraisal based on the EVA pattern, that is, making in-depth analysis of the EVA appraisal indices, then designing the financial & non-financial performance index system of the telecommunication enterprise; driving management based on the EVA pattern, namely take EVA as the foundation carries on the salary motivation.The aim of this paper is to construct one kind of Value Based Management based on the EVA pattern fit for the telecommunication enterprises, and explore a new direction on the enterprise's value creation to enhance the telecommunication enterprise's value, through combing the EVA to the business management, the performance appraisal and the driving management.