Strategic Economic Value Added Systems

Alibaba’s divestment strategy could be the resurrection of divestitures strategies which could proliferate corporate America again as a means to unleash hidden value when their organizations operate independently of certain business units and divisions. Divestitures strategies make up three basic types, i.e., sell-offs, spin-offs, and split-ups. Alibaba chooses to institute the latter strategy as a means to unlock shareholder value (stock price appreciation) while increasing its market competitiveness. Traditionally when divestitures were implemented to increase shareholder value, organizations only received short-term stock returns where Wall Street recognized that the divestitures were not grounded in good strategic logic, e.g., emerging more competitive.
In Alibaba's case, its split-ups are presumed to increase its “market competitiveness’, thereby grounded in earnest strategic logic. At Strategic Economic Value Added Systems, LLC, its affirmative management protocol (research-based), can identify prudent divestiture maneuvers/strategies that create long-term shareholder value with established benchmark models that identify long-term economic value divestments that adds value and those that destroy long-term value.

The affirmative management concept was proprietarized in Dr. Mallett's doctoral dissertation when he employed affirmative evidence (financial data) to explain which financial variables possessed the greatest predictability (explanatory power) in identifying organizations' true market value added (MVA). With the inception of Strategic Economic Value Added Systems LLC, Dr. Mallett expanded the affirmative evidence concept across organizational functions as a value proposition that institutes affirmative evidence (functional data) to identify functional value drivers.