Value Based Management as a Tool for Optimization and Strategic Decision Making

This paper analyzes one of the new approaches in Strategic and Financial Management which is Value Based Management. In a fast-paced business environment, there is a need for a management style that will allow companies to make decisions that are both flexible, and value adding. Value-Based Management helping to deal with the problem of controversy, and allow both Shareholder and Managers have a united goal – Value Maximization. This paper studies Value Based Management both from conceptual and practical aspects and create a framework where Value Based Management can be used as a tool for optimization and strategic decision making. The paper continues with the business cases that are taken from various Russian case championships, as well as from research internship. The paper uses forecasting as a result and Monte Carlo Simulation in the solving of the business problem. Case studies show how Value Based Management Principles can make strategic decisions and optimize the business processes.