Strategic Management: From Theory to Implementation, Fourth Edition
A thorough text which helps understand where strategic management comes from, and how a corporate strategy can be formed and implemented.
TABLE OF CONTENTS Strategic Management: From Theory to Implementation, Fourth Edition
Chapter 12: The search for shareholder value
Overview
The aim of this chapter is to explore the concepts of shareholder value, and the various methods that are available for its measurement. Examples are given of how the value approach is applied in two British companies. The information is drawn from an original research report. The chapter shows both the advantages and the practical difficulties of applying the value approach.
In the next chapter we will explore some concepts of objectives, which may be important both in the formulation and implementation of strategy. In order to do this topic justice we need first to explore some of the modern ideas about creating shareholder value. This is an important concept and the treatment given here will be partly about strategic concepts, and partly about ways of measurement which can be incorporated into objectives. The second part will be illustrated with some examples of how certain British companies are applying concepts of value-based strategy, drawing on research conducted by my colleague Sylvia Handler [1] and published by Harbridge Consulting Group Ltd. I am grateful for permission to use this material, and indeed for the existence of the research which means that I can support a description of the theory with some examples of practice.
[1]Handler, S. Value-based Strategic Management: A Survey of UK Companies, Harbridge Consulting Group Ltd, London, 1991.
Some concepts of strategy
Supporters of value-based strategy believe that the creation of value is measurable, using discounted cash flow concepts. This will be the second part...
Copyright David Hussey 1998 under license agreement with Books24x7
