Financial Times Handbook of Corporate Finance, 2nd Edition

7

VALUE THROUGH STRATEGY

IntroductionValue principles touch every corner of the businessThe firm’s objectiveStrategic business unit managementStrategic assessmentStrategic choiceStrategy implementationWhat use is the head office?Targets and motivationConclusionNotes

Introduction

Transforming a corporation from one that is earnings based to one which is focused on value has profound effects on almost all aspects of organisational life. New light is cast on the most appropriate portfolio of businesses making up the firm, and on the strategic thrust of individual business units. Acquisition and divestment strategies may be modified to put shareholder wealth creation centre stage. Capital structure (proportion of debt relative to equity capital) ...