This case is the use of EVA - economic value added - methodology at Asahi Glass. EVA is one of the changes initiated by the Director General, aimed at transforming Asahi Glass from traditional Japanese company into a global company. Other changes include a corporate reorganization in the world of business groups, the appointment of non-Japanese managers in key positions, and corporate governance reform. EVA methodology was introduced to improve the allocation of resources among numerous companies Asahi worldwide and estimates of management executives. It discusses how the company calculated EVA and, in particular, how is it calculated weighted average cost of capital for its various companies in different countries. Asahi Glass is to benefit from the EVA methodology and it helps make Asahi Glass in a truly international company? "Hide
by Mihir A. Desai, Masako Egawa, Yanjun Wang Source: Harvard Business School 29 pages. Publication Date: 05 Oct 2004. Prod. #: 205030-PDF-ENG
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