A Group Enterprise Value Management Research

As an important management concept in modern chrematistics, Value Management has been widely recognized and promoted. This paper focuses on the value based management, which is a method of enterprise management to maximize the enterprise value as the strategic goal, to use performance evaluation including value evaluation and value creation as the basic analysis tool and to follow the "cash flow is supreme" as research principal.Chinese Liquor industry has experienced super speed development period called the "Golden Decade". However, after the golden age, with the "Three Public Consumptions" policy enacted and the liquor consumption structure changed, the vast majority of liquor companies have experienced negative growth since 2013. This paper chooses the A Group, a leader in liquor industry, as the research object to systematically analyze the existing value management problem of A Group from the Value Management perspective. Based on the analysis, recommendations such as rational allocation of resources and main business income increasing would be raised to provide some references to the future strategic management for liquor enterprises with negative growth.This paper firstly starts from analyzing the development, content and significance of different theories of Enterprise Value and Value Management. Based on the analysis, a widely used evaluation method called Discounted Cash Flow(DCF Model) is introduced. The determination of various parameters and steps of DCF model are clarified to provide theoretical basis for the subsequent value evaluation.Then this paper introduces A Group as the case study. After analyzing historical financial situation, the core competitive advantage, the market and non-market risk would be captured to be the basis of future financial data in the value evaluation. While applying the DCF model, this paper also considers the future development of liquor industry and the estimated future revenue growth based on the current operation situation. Then by using Percentages of Sales approach to determine other parameters, the theoretical evaluation price of A Group is obtained.Lastly, this paper profiles the company value according to the process and result of evaluation. The analysis includes the difference analysis between company’s assessment value and market value, the phase composition analysis of evaluation and the sensitivity analysis of the key value driving factors. Based on the above analysis, this paper summarized the existing problems in A Group’s value management system such as waste in individual business and destruction of enterprise value. Suggestions such as positive measures to improve main business revenue are provided. This paper hopes to provide beneficial references to A Group for its adjustment and renewal development...