Question 3 - Set up

In this lesson

1. 0:00 Understanding Value Based Management
2. 3:02 Step Two: Defining Performance Targets
3. 5:59 Measuring Value with EVA Calculation
4. 7:25 Building Your Skeleton Answer Plan

About this lesson

You'll learn how to approach a 15-mark theory question on defining performance targets (step two of VBM) and a 5-mark calculation on Economic Value Added (EVA), even if you're unsure about specific concepts. The video breaks down the question structure, shows you how to extract marks from the scenario exhibits, and explains the practical application of VBM tools like EVA to assess whether a company is creating shareholder value. This is a realistic exam scenario where you'll discover that the question itself provides crucial information through exhibits and appendices. You'll see how to plan your response by allocating marks across the four focus areas for part A, and how to approach the EVA calculation in part B with confidence. The key message: focus on what you can do rather than what you can't, and use the scenario clues to guide your answer structure and maximise your marks even when facing unfamiliar territory.

Duration: 8m