CHAPTER 1

Value and Value Proposition

THE STEP-WISE Approach to Value (SWAV) is a method to assess the value derived from a Strategic Alternative (SA). Following the path illustrated in Exhibit 1-1, we need to understand what we are looking for (shareholder value) and how it is generated (value proposition) before discussing the value filters. This chapter will deal with the concept of value; more specifically, what it is and how it is derived.

Value has become a buzzword. We constantly hear executives say things like:

image

Exhibit 1-1. The Step-Wise Approach to Value.

They are adding value.

The value added of a product is . . .

This is of great ...

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