Seminar 4

STRATEGIC VALUE ANALYSIS - "Accountants ... they know the price of everything and the value of nothing"

Corporate Strategy Fundamentals

  • The Control Framework in Strategic Planning
  • Corporate Objectives
  • Financial Aspects of Corporate Objectives
  • Mini Case Study: Objective Hierarchies

Strategic Performance Perspectives

  • Measures of Strategic Performance
  • Re-Engineering Financial Statements
  • Cost of Capital (the Discount Rate)
  • Strategic Financial Structures using Debt and Equity
  • Mini Case Study: Capital Structure and Firm Values

Risk in Strategic Project Evaluation

  • Financial Performance and Operating Value
  • Operating Risk and Discount Rate Perspectives
  • The Project Risk Classification Grid
  • Mini Case Study: Project Risk Evaluation

The Management of Strategic Value

  • Testing "Strategic Fit"
  • Traditional Valuation Methods: Advantages and Disadvantages
  • Key Value Drivers
  • Price Earnings and Market to Book Ratios
  • The Perpetuity Method in Valuation
  • Case Study in Strategic Value Analysis