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Investing in Competitive Methods Chapter 7

OBJECTIVES. Upon completion of this chapter, you will be able to:understand the role of the manager in adding value to the firm.develop an understanding of the investor's requirements for return on invested capital. relate the estimation of cash flows, cost of capital, risk, and investment

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Investing in Competitive Methods Chapter 7

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    1. Investing in Competitive Methods Chapter 7 By: Fiona Caramba-Coker For: Dr. Fred DeMicco

    2. OBJECTIVES Upon completion of this chapter, you will be able to: understand the role of the manager in adding value to the firm. develop an understanding of the investors requirements for return on invested capital. relate the estimation of cash flows, cost of capital, risk, and investment to the responsibility of adding value. relate the use of the net present value (NPV) discounted cash flow technique to the adding value imperative of all managers. apply the concepts of this chapter to the case study.

    3. The Role of the Manager in Adding Value to the Firm In the past few chapters you have learned the importance of first scanning your environment. This chapter will introduce the second step in the coalignment theory, strategy choice. Making the right strategic choices requires managers to invest in CMs that create lasting economic value for the firm and its investors. Read pages 205-208 in your book

    4. The Role of the Manager in Adding Value to the Firm In the Strategic Management Model the environment and strategy choice construct come together in a synthesis of strategic management thinking and financial management. It is important that managers consider their competitive method via the mix of products and services they offer. Putting together the best possible mix can add tremendous value to the firm. Visit the Strategic Management Model again; it is present on the next slide.

    5. Strategic Management Model

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