(1). Organizational failure: Weak, mediocre strategy or strategy execution, shortfalls in company strategic and financial performance or performance problems, disregard of overall business management practices or standards, unexpected tough conditions, and unforeseeable events or surprises and adversity.
(2). Organizational success: A yardstick for measuring an organization’s strategic vision, business mission, achievements, progress, survival or bold, aggressive performance targets, results, and outcomes.
(3). Strategic performance (strategic well-being of a company): Vision, overall long-term health, business or market position, competitiveness (competitive vitality and strength), and survival and prospects.
(4). Financial performance (adequate or satisfactory profitability of a company): Earnings growth, return on investment (or economic value added – EVA), dividend growth, stock price appreciation (or market value added – MVA), net/ good cash flows, and creditworthiness.
(5). Business management practices: An appropriate combination, adoption, and implementation of best practices (e.g., structure – design and control, leadership – motivation and culture management, and strategy – strategic analysis and choice) that drive organizational success, and strategic and financial performance.
(6). Organization theory Practices: A contextual dimension or broad evaluation of the links and interrelationships between systems of high performance structure and design practices and balanced effectiveness.
(7). Organizational behavior practices: Competing theories and conceptualization of people management practices, human capital assets, and high performance work systems, which are fully mediated by motivation, group activities, leadership, and transformational change.
(8). Strategic management practices: Strategy making and entrepreneurship, implementation and execution, and organizational outcomes, strategic choices, effectiveness, and performance levels as well as the primary determinants of the initiation and completion of the strategic plan – which are linked to the environment, competitive advantage, diversification, and corporate execution.
(9). Return on investment (or economic value added – EVA): Value added by managerial effectiveness in a given year.
(10).Stock price appreciation (or market value added– MVA): Maximizing shareholders’ wealth by finding the difference between market value of stock (stock price or outstanding shares) and equity capital supplied by shareholders since the very beginning of a firm.
(11). Earnings Growth (Cash flow projections to assess performance): Profit maximization by dividing a firm’s net income by the outstanding shares of common stock.
(12). Dividend Growth (during the coming year): Expected dividend yield divided by the share of stock.
(13). Net/Good cash flows (value of an asset a firm generates in a specific time): Net income minus non-cash revenues plus non-cash charges or net income plus depreciation and amortization.
(14). Creditworthiness: Credit policy variables or decisions (e.g., a firm’s credit period, credit standards, collection procedures, and discounts offered).
(15). Tobin’s Q (an economic ratio and market-based measure of value creation or value added by management beyond its physical assets): Calculated by dividing the market value of a firm by the replacement cost of its assets.
(16). Economic profits: Difference between revenue of a firm and its implicit and explicit costs.
(17). Capital (stock) market returns: Financial market returns for stocks and for intermediate or long-term debt.
(18). Total returns to shareholders: Overall stockholder wealth maximization, expected earnings per share, maximization of the price of the firm’s common stock, profit maximization, and the maximization of a firm’s net income.
(19). Form 10-K report: An official annual business and financial report (a document that contains comprehensive information about a company’s detailed financial information, business summary, and divisions and subdivision) filed by public companies (with at least 500 shareholders of one class of stock and $5 million in assets) with the Securities and Exchange Commission.
(20). Agency relationships: A link that arises whenever the shareholders (principals) hire or delegate decision-making authority to the managers (agents) to perform some services or functions for financial return.
(21). Social responsibility: A situation where a company is actively concerned in providing a safe working environment and welfare to its shareholders, customers, employees, and the community (or society) at large.
(22). Systematic risk/beta (e.g., market and non-diversifiable risk which cannot be eliminated or which cannot remain after diversification): It is a relationship between the stock market and return to shareholders which is measured by beta coefficient, b.
(23). Comparative ratios and “benchmarking”: This particularly involves comparing a company’s ratios with group of other “benchmark” companies (e.g., companies used for the comparison) in the same industry (e.g., industry average figures).
(24). Capital intensity: Amount of assets needed per dollar of sales.
(25). Sales growth: A rapid or large increase in assets (ceteris paribus) when other things are held constant.
(26). Claims against assets: This involves liabilities (e.g., debts, paid-in capital, deferred taxes, and reserves or retained earnings) and common stockholders’ equity (net worth) set up for certain contingencies such as lawsuits.
(27). R&D intensity: Research and development expenses incurred through innovation, concentration, and differentiation.