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Challenges of Implementing Economic Value Added

Author

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  • R.K. Mittal

    (R.K. Mittal is Professor and Dean, SMS, GGSIPU, Kashmere Gate, Delhi, India. E-mail: Dr123mittal@yahoo.com)

  • Neena Sinha

    (Neena Sinha is Reader, SMS, GGSIPU, Kashmere Gate, Delhi, India. E-mail: Dr_neenasinha@yahoo.com)

  • Archana Singh

    (Archana Singh is Faculty, ABS, AU, NOIDA, Uttar Pradesh, India, and a Research Scholar at GGSIPU, Delhi, India. E-mail: Sarchana03@yahoo.co.in)

Abstract

In this case we present the process of implementation of an economic value added (EVA) framework in Godrej Consumer Products Limited (GCPL), a leading fast moving consumer goods (FMCG) company in India, and the challenges faced by the company. It covers in detail the reasons for implementing the EVA framework in GCPL and the benefits derived by the company from it in the form of the SWOT analysis. It is shown that there is a positive link between the implementation of an EVA framework and improvement in the financial performance of a company. It ends with a debate on the effectiveness of EVA.

Suggested Citation

  • R.K. Mittal & Neena Sinha & Archana Singh, 2008. "Challenges of Implementing Economic Value Added," Global Business Review, International Management Institute, vol. 9(2), pages 287-298, August.
    • Handle: RePEc:sae:globus:v:9:y:2008:i:2:p:287-298
    DOI: 10.1177/097215090800900208
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    References listed on IDEAS

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    1. Al Ehrbar & G. Bennett Stewart, 1999. "The Eva Revolution," Journal of Applied Corporate Finance, Morgan Stanley, vol. 12(2), pages 18-31, June.
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    Cited by:

    1. Miron Vasile Cristian Ioachim & Focsan Eleonora Ionela, 2017. "The Analysis Of The Performance Of Companies Based On The Economic Value Added," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 181-190, February.

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