Shareholder value

Value-based management means that manager aim to maximize shareholder wealth and it is in long time. and the firm'strategy, processes, performance measurements and culture all are to service shareholder wealth maximization.

Last month, Blackberry issued its new products, which is blackberry Z10 and blackberry Q10. Q10 keeps blackberry famous skill of keyboard. But Z10 removes the keyboard. And Blackberry creates its new system of the products. The new products illustrate Blackberry starts to change their strategy which start to pay more attention to app. Meanwhile they also show that it wants to make a balance between business man and the public. In addition, the firm changes its name from RIM to Blackberry. Its CEO,Thorsten Heins, said he wanted to make blackberry give a new impression to its customers. For the past few years, shares of the Blackberry-maker have plunged 77%, because iphone and Android invaded the market , blackberry's several product delayed and poor management.As the result of these, in 2012 CEO,Mike Lazaridis resigned by investors protesting.

In this case, since manager have poor management and do not plan good strategy which does not reform products timely, CEO had to resign. It made a large lose for investors. This can be link to manager should service shareholder wealth maximization. And It is also a way to evaluate manager's performance.Nowadays, incumbent CEO decided to adjust structure of organization, formulate new strategy and change company's image. These can be linked to firm's strategy and organizational capabilities support to maximize shareholder wealth. In addition, the firm start to invest new operating system of products which is similar to Android and Iphone. This can be linked to value action pentagon which includes raising investment in positive spread units.