A VALUE-BASED MANAGEMENT PERSPECTIVE FOR THE GERMAN AUTOMOTIVE INDUSTRY

In recent years, the global automotive industry has generally recorded continual growth. The major market players in this industry are the original equipment manufacturers (OEMs) as well as suppliers at various stages of the value-added chain. This study examines the value-based management (VBM) strategy and its implementation by the German automotive industry. The major findings of the study are fourfold. First, the German automotive industry operates on the basis of the VBM model. Second, the overall goal of the VBM model there is to maximize the value of an organization. Third, VBM enhances profitability in the automotive industry. Fourth, to achieve their target of creating value, organizations should design their VBM strategy to reflect their overall mission and goals.