Case Analysis of Eva

International Financial Management 

Case Analysis of: 

The Continuing Transformation of Asahi Glass: Implementing EVA

Submitted to:   Sir Abdul Khaliq Daudpota 

Submitted By:   Poonam Bajaj

Ranjeeta Sadhwani

Tauseef Niaz

Submission Date:  January 21, 2012 

TABLE OF CONTENTS

* BACKGROUND

* CORPORATE GOVERNANCE

* FEATURES IN ASIA

* MAIN BANK

* ORGANIZATIONAL CHANGE

* IMPLEMENTING EVA

1. ADVANTAGES

2. DISADVANTAGES

* PREFERENCE TO EVA

* RECOMMENDATION

Background

Asahi Glass is an MNC, based in japan. Its products include flat glass, chemicals, and electronics and displays. It was reorganized by “Ishizu”. It captures annual sales of about 1.3 trillion and is considered largest global market leader in most of its product categories. It has almost more than 200 subsidiaries and operates in more than 25 countries. . The company reformed in corporate governance and the new management system for resource allocation and performance measurement is based on economic value added (EVA). In this case our analysis is focused on influence of bank system on corporation, corporate governance reform, difficulties the president faced in reform. Moreover, we also discuss EVA system, its effectiveness and pros and cons.

Corporate Governance

It is set of mechanism that describes the relationship between board of directors, top management and shareholders, means it takes into account the self-interested controllers of company. It also deals with agency problem. It contains two models: one is ‘control model’; that discusses control from inside boards and other is ‘market model’; that focuses on independent board, dispersed ownership and high disclosure. And we have to look for the better one for organization.

Features in Asia

There are different features of corporate governance in Asia:

There is greater...