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Valuation
Measuring and Managing the Value of Companies
5th Edition
Chapter 20 Solutions
Performance Management
Chapter 20
Question 1
Commentary
The value-driver approach establishes a set of short-term to long-term metrics,
which is tailored to the industry and strategy. It should de#ne how the inputs
Chapter 20
Question 2
Commentary
Se)ng targets helps in the understanding of value drivers and keeping focus on
the goals that safeguard the company’s health. It can help give insights into
ways to improve in the future. A drawback is that sometimes firms set point
Chapter 20
Question 3
Commentary
Short-term value drivers fall into three categories: sales productivity, operating
Chapter 20
Question 4
Commentary
Medium-term value drivers fall into three categories: commercial health, cost
structure health, and asset health. An example would be a car brand where the
Chapter 20
Question 5
Fast Food Restaurant
Traditional
Customer Value Tree
Branch Value Tree
Variety of meals
