ABSTRACT
Value-based management (VBM) is a managerial process which effectively links strategy, measurement, and operational processes with the result of creating shareholder value. VBM is an approach to management whereby the company’s overall aspirations, analytical techniques, and management processes are all aligned to help the company maximize its value. Decision-making is made based on the key drivers of value. Du Pont formula decomposes the value creation drives in terms of margin, turnover, leverage, pullover and, book to value ratio or market to book value ratio. Digital marketing strategies have replaced conventional marketing strategies and caused many retail company outlets or supermarkets closed and some listed retail companies noted declining sales. This paper analyzes two indicators that represent fundamental performance is margin profit and market performance is PER before and after application of digital marketing. This study aims to analyze the application of Du Pont formula in company retail in the present era of digital marketing. Research methods used are descriptive qualitative and Wilcoxon analysis for comparison. The results showed that the ability of retail companies in sales supported by value driver profit margin showed no significant effect of profit margin before application of digital marketing compared with that after application of digital marketing. The company’s ability to keep stock prices supported by PER value drivers shows no significant change in PER effect before implementation of digital marketing when compared with that after the application of digital marketing, in today’s business world.
