Value Creation Strategies: EBIT and Capital Impact PPT


This PPT slide, part of the 50-slide Business Unit Strategic Plan Training PowerPoint presentation, outlines various strategic initiatives aimed at enhancing value through 2 primary lenses: EBIT impact and capital employed impact. It categorizes initiatives into 5 main areas, each with specific sub-initiatives that contribute to financial performance.

The first initiative focuses on capturing greater market share, which is linked to a price increase. This suggests that gaining market share can lead to improved pricing power, thereby enhancing revenue. The second initiative emphasizes cost reduction, particularly through effective channel management. Here, the slide indicates that this can lead to a reduction in costs and improved capital efficiency, highlighting the dual benefit of operational efficiency and better resource utilization.

The third initiative revolves around obtaining higher prices, which directly correlates with revenue enhancement. The fourth initiative, creating new products or services, is marked by its potential to increase both volume and price, indicating a comprehensive approach to revenue generation. Lastly, forming strategic alliances or partnerships is noted, which can lead to both cost reductions and capital efficiency. This reflects a trend towards collaboration as a means of driving value.

Overall, the slide presents a structured approach to identifying sources of value within an organization. Each initiative is clearly linked to specific financial impacts, making it a useful framework for executives looking to prioritize strategic actions. The visual layout aids in quickly assessing which initiatives align with desired financial outcomes, providing a clear roadmap for decision-making.




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