CUSTOMER VALUE PROPOSITION

Organizations need to be more customer-oriented in order to increase their value and the focus of its strategy should be its target customers. 

The crux of the strategy must be based on the reasons that why the customer will prefer the products/services over the competitors’ products/services. The reasons must be the benefits the customer will receive in return of the price paid. And the clearly designed statement (promise) which expresses these benefits is known as customer value proposition.

It persuades the customer to buy the product/service and differentiates it from the competitors.

It broadly classified in three categories:

1.    Customer intimacy.

2.    Operational excellence.

3.    Product leadership.

1.    Customer intimacy.

When organization adopts such strategy, it is saying to its target customers that the reason they should choose the organization is because it understands and responds to their individual needs better than its competitors.

2.    Operational excellence.

When organization adopts such strategy, it is saying to its target customers that the reason they should choose the organization is because it delivers products/services faster, more conveniently and at a lower price than its competitors.

3.    Product leadership

When organization adopts such strategy, it is saying to its target customers that the reason they should choose the organization is because it offers higher quality products/services than its competitors.

An organization can choose any one or combination of the above strategies for better profits and market share.

Sources:

https://en.wikipedia.org/wiki/Customer_value_proposition

Management accounting by Garrison Noreen Brewer.

CLOSELY HELD SHARES

CLOSELY HELD SHARES:

The shares held by the insiders, employees,and major shareholders. These shareholders don't want to sale there shares in order to retain their shareholding or ownership in the company. Most these situations are visible in family owned business, who wants to retain their family dominance in the company and reduces the stock by closely holding the shares.

Difference Between Outstanding Shares and Floating Shares

Difference Between Outstanding Shares and Floating Shares:

The shares that are issued by a company to its shareholders is termed as outstanding shares. But it does not include treasury stocks/shares.

Whereas floating shares/float represents only those shares which are available for trading.
Floating shares can be calculated by deducting closely-held shares and restricted shares.