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Translating Strategy into Shareholder Value

Book Description

Too often there are serious missed signals between a company’s stated goals and the methods employed to try to reach them. Translating Strategy into Shareholder Value is a unique look at how the planning process relates to the achievement of shareholder value, and ways to ensure that the two directly complement each other. Using tools and a special case study to analyze past, present, and future performance, the book takes readers through a host of steps, including: * Comparing existing strategy to the competition and the economy as a whole * Analyzing productive capabilities and costs * Bringing nonfinancial metrics to test how future strategy creates value * Selecting the right analytical tool and looking at strategic solutions If corporations are to truly maximize their success, managers need to understand how to translate corporate strategy to the bottom line -- and that means seeing the big picture.

Table of Contents

  1. Cover
  2. Half title
  3. Title
  4. Dedication
  5. Contents
  6. Preface
  7. Acknowledgments
  8. Introduction
  9. Part 1: Introduction to Strategic Alternatives
    1. Chapter 1: Value and Value Proposition
      1. What Is Value?
      2. Book Value
      3. Market Value
      4. Intrinsic Value
      5. Understanding the Value Proposition: How Is Value Created?
      6. Revenue Increase and Maintenance
      7. Competitive Repositioning
      8. Efficiency
      9. Conclusion
    2. Chapter 2: External Strategic Alternatives
      1. Mergers and Acquisitions
      2. Outsourcing
      3. Conclusion
    3. Chapter 3: Internal Strategic Alternatives
      1. Information Technology
      2. Business Process Reengineering
      3. Conclusion
  10. Part 2: The Macro View
    1. Chapter 4: The Economic Filter
      1. What Is Market Demand and Why Is It Important?
      2. Economic Factors that Drive Market Demand
      3. Resource Availability: Land, Labor, Capital, and Technology
      4. Validation of Strategic Alternatives Using the Economic Screen Alignment with Market Demand
      5. Equivalence of Response
      6. Conclusion
    2. Chapter 5: The Strategic Filter
      1. Introduction to the Strategic Filter
      2. The Porter Model
      3. Using the Porter Model to Drive Value
      4. The Balanced Scorecard
      5. Using the Balanced Scorecard to Drive Value
      6. Conclusion
  11. Part 3: The Operational Filter
    1. Chapter 6: Introduction to Operational Filter
    2. Chapter 7: DuPont Model
      1. Introduction to the DuPont Model
      2. Cash Flow Margin
      3. Asset Turnover
      4. A Combination of Factors
      5. Financial Leverage
      6. A Comprehensive Example
      7. Strengths of the DuPont Model
      8. Conclusion
    3. Chapter 8: Activity-Based Management
      1. Attaching Costs to Your Business Process
      2. Building an ABM Model
      3. Strengths of ABM
      4. Weaknesses of ABM
      5. Using ABC Make Strategic Decisions
      6. Conclusion
  12. Part 4: The Valuation Filter
    1. Chapter 9: Regression Analysis
      1. An Overview of Regression Analysis
      2. Why Use Regression Analysis?
      3. Types of Regression Analysis
      4. The Regression Analysis Process
      5. Interpreting Regression Analysis Results
      6. Applying Regression Analysis: A Case Example
      7. Regression-Based Forecasting Using the DuPont Model
      8. Conclusion
    2. Chapter 10: Components of Value
      1. Cash Flow
      2. Benefits
      3. Costs
      4. Noncash Items: Impact of Taxes on Cash Flows
      5. Risk Analysis
      6. Recognition of Benefits
      7. Timing
      8. Cost Overruns
      9. Accounting for Risk in Shareholder Value Analysis
      10. Conclusion
    3. Chapter 11: Valuation
      1. Portfolio of Analytical Tools
      2. Discounted Cash Flow Analysis (DCF): The Analytical Foundation
      3. Applying DCF Analysis
      4. Assessing Value Under Uncertain Conditions
      5. Financial Modeling Techniques
      6. Conclusion
    4. Final Thoughts
      1. The Dark Side of Valuation
      2. Organizational Considerations
      3. Process Issues
  13. Bibliography
  14. Index
  15. Copyright