value creation
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value creation
In economics, the process by which a company increases the value of goods or services through its activities. It is the difference between the sales value of a product and the cost of the purchased intermediate inputs.
Die Automobilindustrie hat eine hohe Wertschöpfung für die deutsche Wirtschaft.
The automotive industry creates a high level of value for the German economy.
The word consists of 'Wert' (value) and 'Schöpfung' (creation, from 'schaffen'/'erschaffen' — to create). So it literally describes the 'creation of value'.
Durch die Verarbeitung von Rohstoffen zu Produkten entsteht Wertschöpfung.
Value creation arises through the processing of raw materials into products.
'Wertschöpfung' (value creation) is a central term in economics and is mainly used in economic, business, or political contexts.
In der Vorlesung über Betriebswirtschaft haben wir die Wertschöpfung analysiert.
In the lecture on business administration, we analyzed value creation.
Common verbs with this noun are 'Wertschöpfung steigern' (to increase value creation), 'erhöhen' (to raise/increase), or 'generieren' (to generate). A very typical compound is 'die Wertschöpfungskette' (the value chain).
Das Unternehmen will seine Wertschöpfung im nächsten Jahr steigern.
The company wants to increase its value creation next year.
profit / prize
'der Gewinn' and 'die Wertschöpfung' both belong to the language of business and economics, but they do not mean the same thing. 'der Gewinn' is the money left over after all costs have been deducted. 'die Wertschöpfung' describes how a company increases the value of a product or service through work, manufacturing, or service. Learners may confuse the words because both have to do with money and economic success. If you want to say what is left at the end, 'Gewinn' fits. If you want to explain where and how new value is created, 'Wertschöpfung' fits.
Durch die Produktion in der Region bleibt mehr Wertschöpfung vor Ort.
Producing goods in the region keeps more value creation local.
Nach Abzug der Miete und der Löhne blieb dem kleinen Laden kaum Gewinn.
After deducting rent and wages, the small shop was left with hardly any profit.