Today most of the world's products benefit from a huge success because of a big brand. If in the past this was the case for the luxury industry where the power of branding it's reaching the consumer in the most impactful way. First by the mystery surrounding the brand, then by keeping the consumer as loyal as possible, the result being huge revenues for this brands, for, eg. LVMH, the largest group by revenue. But things are no longer the same, today the power of branding and huge revenues moved to another industry flourished, tech industry, where companies like Apple, Google, Facebook, Amazon, dominate their sectors benefiting from a strong brand name.
Nowadays companies are dealing with large amounts of data, not only for an important decision but also into their day-to-day activity. In order to handle properly these large volumes of data, from different sources without missing the opportunities, companies need to figure out how to manage big data to their advantage. Embracing the advantages of big data is not enough because in order to face the challenges of the business environment, investing in digital technology is no longer seen as giving a competitive advantage, is seen as a standard. Also in the path of evolution, the interest of companies (profit) on one side and the interests of society (social and environmental) on the other side should find a common point in order to pursue their interests in a way that will not affect future generations. Sustainability is the approach towards this future, which allows companies to grow and make profits, but at the same time provides benefits for the society.
The term “value” can be interpreted in a subjective way, depending about what we refer at. Usually the firm's value is related to the financial performance: profitability, cash flow, liquidity, solvability, etc. A corporation can create and in some cases reduce value for its stakeholders. Also, a corporation can create value for the stakeholders by simply creating jobs, paying taxes and help the population to improve their financial situation. The aim of the paper is to describe the process of value creation starting with corporate governance, continuing with stakeholders’ expectations and finishing with shareholders requests.
Firm performance is a very complex and exhaustive concept. It can be related to many factors: starting with variables from balance sheet, income statement or cash-flow statement, continuing with research and development expenses or IT competences, and last but not least with intangible assets like human capital, goodwill, or brand value. The purpose of the present paper is to develop and test a model in order to measure firm performance by considering US companies that are ranked into the Global Fortune 500. In this study we used control variables (assets growth rate, net income growth rate and revenue growth rate) and depended variables – return on assets (ROA), debt to equity, research and development expenses to total operating expenses, environment, social and governance rating, Tobin‘s q – to measure firm performance. The article‘s findings suggest that when analyzing the firm performance much more factors must be considered.
The utility of performance measurement and management system can be said to have been proven, but the problem faced by both the theoreticians and practitioners is to set the right performance indicators. Developed models are tools that managers can use to measure and manage performance, but they need to be tailored to the context. Also, the trend towards using non-financial performance indicators makes it very difficult for managers to design a performance measurement and management system because it involves the integration of qualitative and non-quantitative variables and a profound understanding of the internal and external environment of the company.