Value-Based Management (VBM) contributes to the maximization of shareholder value by focusing on creating maximum value in businesses. It is a management philosophy and approach that supports and allows for the maximization of shareholder value. This is achieved by establishing the competitive position of the venture using strategic tools like the strategic triangle (3C's), which is based on the idea that competitive advantage is defined by the ability to deliver better value to customers at a lower price than competitors.
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