Business values future issues

In this formula, P is present worth or present value, F is future value, i is the interest or discount rate, and n is the number of periods. Economically, there is an additional factor at work in present value, and that factor is pure time preference, or impatience. However, this issue is generally ignored in business accounting, because the firm has no such emotions, and opportunities can be measured in terms of financial return. 

The essence of business is to create satisfied customers who purchase your products and services and come back for more, and products that do not come back. The lifetime value of a customer is often overlooked in the day-to-day strategic and operational decisions. But this lifetime value is the critical issue for understanding why investments in service quality and customer satisfaction are not just expense fines in some budget but investments in bottom-Une profit and the future of the company... 

The issues on the future of the supply chain cannot be disputed. They will grow worse, not better. Companies that embrace this as permanent change and work with it as an input to their supply chain business strategy will drive long-term value. 

However, as fundamental as this concept is and as intuitive as optimization of the supply chain is, many companies still attempt to maximize only that which they specifically control. They overlook the value of the global view. They concentrate only on what they can see in their local operation. The idea of real supply chain optimization is looked upon as something to be done, some objective for the future. Once we get our own act in order, we can move on to the supply chain issues is a common statement from business leaders in every industry. In some cases, when leaders do apply some effort toward supply chain optimization, it is only half-hearted and does not receive the attention or financial budget that it deserves. Those companies, even more so as the Internet makes global business operations a reality, are not only missing some opportunities, they are sealing their fate as noncompetitive businesses in the modern age. 

One of the key measures of corporate performance today is shareholder value. In other words, what is the company worth to its owners Increasingly senior management within the business is being driven by the goal of enhancing shareholder value. There are a number of complex issues involved in actually calculating shareholder value but at its simplest it is determined by the net present value of future cash flows. These cash flows may themselves be defined as ... 

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