Relative Value of Growth- a Decision Making Tool (Indian Context)

The present study tries to find out which policy between growth and margin should be pursued by the management. Whether they should focus on growth or on margin. It should be noted that there is no perfect science/method which should be followed, or which guarantees success. There are various value drivers which drive the value of the firm without getting noticed. The present paper tries to find out which is the more important strategy that needs to be followed between growth and margin based on a few parameters. The researchers will be using the concept Relative Value of Growth (RVG)(invented by Nathaniel J. Mass) which will help identify a proper strategy that managers should follow. Researchers took 30 companies following the central limit theorem and various parameter were identified and then it was compared with what strategies should have been followed if RVG was applied. The research shows that RVG may help with the decision making if the only parameter for decision is net profit out of the four parameters discussed.