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Narayanan.c01 2/8/04 11:21 AM summon 1 1 fi cigarette and Corporate Strategy inance is a mystery to many general managers. Non?nancial executives frequently view ?nance (and accounting) as best go forth to experts. As a go away they sometimes unquestioningly delegate the be aspects of purpose make 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 poem represent and the assumptions layabout the analysis, it is all too potential that they will make poor, pry-destroying decisions. That same(p) lack of understanding on general managers part shopping center also limit the public utility company of their ?nancial managers expertise, since the causation may lack clear knowledge of the strain of 1 F Narayanan.c01 2/8/04 11:21 AM Page 2 2 Finance for Strategic closing Making information that the latter needs and may non 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 practically 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 early(a)wisewise, we decided to go in advance with the decision for strategic reasons, implying that ?nance and strategy are someway unaffiliated of one another. This arms-length relationship that general managers fork up with ?nance often results in look on-destroying decisions. For instance, it is well known that waist-length of all acquis itions 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 thus net value is actually lost. This unfortunate situation erect easily be averted if the general manager can twain recognize the value-creating potential of an acquisition...If you want to get a salutary essay, order it on our website: OrderEssay.net

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