Translating Strategy into Shareholder Value

 

Introduction

THIS BOOK links strategy and finance through a Step-Wise Approach to Value (SWAV). The Step-Wise Approach to Value is an analytical framework that combines strategic and financial analysis to evaluate Strategic Alternatives. The framework is conceptual in nature, so it has the flexibility to accommodate different types of cases. A Strategic Alternative (SA) is defined as an initiative that is implemented to increase shareholder value. The central premise of the SWAV is that the effectiveness of business strategy is validated through the creation of shareholder value.

This work follows the analytical flow of the SWAV, as illustrated in Exhibit I-1. It is similar to a funnel because it becomes increasingly more difficult to pass ...