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Global Business Review
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Challenges of Implementing Economic Value Added

A Case Study of Godrej Consumer Products Limited

R.K. Mittal

R.K. Mittal is Professor and Dean, SMS, GGSIPU, Kashmere Gate, Delhi, India. E-mail: Dr123mittal{at}yahoo.com

Neena Sinha

Neena Sinha is Reader, SMS, GGSIPU, Kashmere Gate, Delhi, India. E-mail: Dr_neenasinha{at}yahoo.com

Archana Singh

Archana Singh is Faculty, ABS, AU, NOIDA, Uttar Pradesh, India, and a Research Scholar at GGSIPU, Delhi, India. E-mail: Sarchana03{at}yahoo.co.in

In this case we present the process of implementation of an economic value added (EVA) framework in Godrej Consumer Products Limited (GCPL), a leading fast moving consumer goods (FMCG) company in India, and the challenges faced by the company. It covers in detail the reasons for implementing the EVA framework in GCPL and the benefits derived by the company from it in the form of the SWOT analysis. It is shown that there is a positive link between the implementation of an EVA framework and improvement in the financial performance of a company. It ends with a debate on the effectiveness of EVA.

Global Business Review, Vol. 9, No. 2, 287-298 (2008)
DOI: 10.1177/097215090800900208


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