Q 31-35

Assessment Methods:

1. Factor Rating Method

• Identify crucial factors

• Assign weights to factors

• Rate locations

• Calculate weighted scores

• Compare total scores

1. Center of Gravity Method

• Consider volume of activity

• Geographic coordinates

• Transportation costs

• Distance calculations

• Optimal point determination

Location Risk Management:

1. Risk Categories

• Natural disasters

• Political instability

• Infrastructure reliability

• Labor market conditions

• Economic factors

1. Risk Mitigation

• Multiple location strategy

• Insurance coverage

• Contingency planning

• Local partnerships

• Regular risk assessment

Essence:

1. Core Principles

• Focus on value creation

• Long-term perspective

• Stakeholder consideration

• Performance measurement

• Strategic alignment

1. Key Components

• Value drivers identification

• Performance metrics

• Incentive systems

• Decision-making processes

• Resource allocation

Causes of Development:

1. External Factors

• Increased competition

• Globalization

• Shareholder activism

• Market complexity

• Technology advancement

1. Internal Needs

• Performance improvement

• Strategic clarity

• Resource optimization

• Decision quality

• Stakeholder alignment

1. Value Creation Strategy

• Vision and objectives

• Value driver identification

• Strategic planning

• Resource allocation

• Performance targets

1. Implementation

• Organizational alignment

• Process redesign

• Systems development

• Training and development

• Communication plan

1. Measurement and Control

• KPI monitoring

• Performance evaluation

• Feedback systems

• Corrective actions

• Continuous improvement

1. Value Realization

• Results assessment

• Stakeholder communication

• Value distribution

• Strategy adjustment

• Learning capture

1. Asset-Based Methods

• Book value

• Adjusted book value

• Liquidation value

• Replacement cost

• Net asset value

1. Income-Based Methods

• Discounted Cash Flow (DCF)

• Earnings capitalization

• Economic Value Added (EVA)

• Dividend discount model

• Gordon growth model

1. Market-Based Methods

• Price-to-earnings ratio

• Market multiples

• Comparable company analysis

• Precedent transactions

• Industry benchmarks

1. Combined Methods

• First Chicago Method

• Venture Capital Method

• Real Options Valuation

• Sum-of-parts analysis

• Scenario analysis

Special Considerations:

• Industry specifics

• Company stage

• Market conditions

• Growth potential

• Risk factors