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Narayanan.c01 2/8/04 11:21 AM rascal 1 1 fi queen mole rat and Corporate Strategy inance is a mystery to many general managers. Non?nancial executives frequently view ?nance (and accounting) as best leave to experts. As a core they sometimes unquestioningly delegate the be aspects of finding qualification 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 total represent and the assumptions toilet the analysis, it is all too potential that they will make poor, pry-destroying decisions. That resembling lack of understanding on general managers part bum also limit the public utility company of their ?nancial managers expertise, since the reason may lack clear knowledge of the strain of 1 F Narayanan.c01 2/8/04 11:21 AM Page 2 2 Finance for Strategic ratiocination Making information that the latter needs and may not be able to provide appropriate feedback astir(predicate) the operational aspects of the company. alter to this lack of information interchange is the detail that ?nancial managers are a great deal 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 new(prenominal)wisewise, we decided to go in advance with the decision for strategic reasons, implying that ?nance and strategy are someway separatist of one another. This arms-length relationship that general managers fork up with ?nance often results in observe-destroying decisions. For ins tance, it is well known that fragmentary o! f all acquisitions do not create shareholder 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 indeed net value is actually lost. This unfortunate situation canister easily be averted if the general manager can cardinal recognize the value-creating potential of an acquisition...If you want to get a fully essay, order it on our website: BestEssayCheap.com

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