MGT 3659 Chapter Notes - Chapter 5: Performance Metric, Market Capitalization, Economic Surplus
Document Summary
Balance scorecard strategy implementation tool that harnesses multiple internal and external performance metric in order to balance financial and strategic goals. Business model stipulates how the firm conducts its business with its buyers, suppliers, and partners in order to make money. Consumer surplus difference between the value a consumer attaches to a good or service (v) and what he or she paid for it (p), or (v - p) Economic value created difference between value (v) and cost (c), or (v - (v - c) Market capitalization a firm performance metric that captures the total dollar market value of a company"s total outstanding shares at any given point in time. Opportunity costs the value of the best forgone alternative use of the resources employed. Producer surplus another term for profit, the difference between price charged (p) and the cost to product (c), or (p - c); also called profit.
