Strategic value management: stock value creation and the management of the firm

Strategic Value Management addresses common problems among business managers and students actively involved in thinking about stock value creation. Many managers, following Michael Porters recommendations, believe that firms must follow a low cost leadership position, while overlooking the fact that it normally leads to similar reactions among the competition and makes competition even more intense, only reducing profit margins further. Similarly, many managers believe that promotions are adequate strategies to produce differentiation or increase sales, when the reality is that most likely they can be imitated by other corporations, generating a more intense competition that then reduces stock value. The systemization of these findings shows that strategies in perfect competition destroy stock value (produce EVAs, Economic Value Added) below -2%. Strategies in monopolistic competition (typically Porters differentiation) barely create stock value (EVA fluctuates between -2% to 2%). Oligopolistic strategies (alliances and collusion) create stock value (between 2% and 8% EVA), and monopoly strategies based on unique resources create higher levels of stock values (EVA above 8%). The book creates a new conceptual model for thinking about business strategy and its link to stock value creation, which is compellingly simple and insightful.

• ISBN: 978-0-470-46710-7
• Editorial: John Wiley & Sons
• Encuadernacion: Cartoné
• Páginas: 320
• Fecha Publicación: 19/10/2009
• Nº Volúmenes: 1
• Idioma: Inglés