<%@LANGUAGE="JAVASCRIPT" CODEPAGE="1252"%> ecofine - Value creation for shareholders 9

Corporate Governance
What is Strategy ?
The Strategic Management Process (graph)

The 5 tasks of Strategic Management process:
1 Defining the business & developing a vision and a mission
2. Setting objectives
3. Crafting a strategy to achieve performance objectives
4. Implementing & executing the strategy
5. Evaluating performances, reviewing the situation & initiating corrective adjustments

The strategic decisions

 

Strategic decisions & Working Capital (WC)

The mean of a positive WC
How interpret a negative WC
The SCFP & Strategic Decisions

 

Investment decisions
Capex

 

Modes of diversification :
Mergers & Acquisitions

 

Inter-Organizational relationships :
Strategic Alliances
Joint Venture
Licensing

 

Others :

Corporate new venture (self development)
Divestiture & Liquidation strategies

 

Long-Term Financial decisions
Bonds market
leasing
Stocks market & Dividend Policy
Optimal financial structure

 

Investment analysis and decision
The opportunity cost of capital
Pay-back, IRR, NPV : what to choose ?
The WACC
The NPV
The EVA
The key Ratios analysis 
 
Company valuation

value creation for shareholders

the Economic Value Added (EVA) : a static approach of the value creation

EVA = [ ROA - WACC ] . ASSET

To learn more about EVA, CLICK HERE

The Net present Value (NPV) : a dynamic approach of the value creation

To learn more about NPV, CLICK HERE

 

 

 

 

Bernard Jaquier, Professor in Economics and Finance, Ecole Hôtelière de Lausanne, Switzerland, 2010