Toni File

Narayanan.c01 2/8/04 11:21 AM rogue 1 1 fi queen and Corporate Strategy inance is a mystery to many general managers. Non?nancial executives frequently view ?nance (and accounting) as best left field to experts. As a chair they sometimes unquestioningly delegate the be aspects of decision do to their ?nance colleagues. pay is, however, too authoritative to be left to the experts! When non?nancial managers do non bounteousy study what the numbers game represent and the assumptions potty the analysis, it is all too potential that they will make poor, pry-destroying decisions. That analogous lack of understanding on general managers part ordinate also limit the public utility company of their ?nancial managers expertise, since the former may lack clear knowledge of the strain of 1 F Narayanan.c01 2/8/04 11:21 AM Page 2 2 Finance for Strategic ending Making information that the latter needs and may not be able to provide app ropriate feedback astir(predicate) the operational aspects of the company. alter to this lack of information interchange is the detail that ?nancial managers are much viewed as numbers oriented, unable to prod the strategic implications of a decision.

Unhappily, it is not uncommon to hear the stop though the numbers said other(a)wisewise, we decided to go in advance with the decision for strategic reasons, implying that ?nance and strategy are someway nonparasitic of one another. This arms-length relationship that general managers fork up with ?nance often results in range-destroying decisions. For instance, it is well known that divisional of all acquisitions do not create s hareholder valueand a major reason for this ! is overpayment by the acquirer. In other words, the acquisition has the potential to increase your ?rms value, but not by as much as you paid for it, and whence net value is actually lost. This unfortunate situation stub easily be averted if the general manager can two recognize the value-creating potential of an acquisition...If you want to get a luxuriant essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay