1173 Posts Found

Value-based management provides a clear metric – discounted future cash flow – to guide decisions at all levels of an organization: a business unit leader using this approach may pursue value in financial terms; a functional manager could concentrate on customer service, market share, product quality, or productivity; and a manufacturing manager might focus on costs per unit, cycle times, or defect rates.

But this … [ Read more ]

Content: Article | Author: Tim Koller | Source: McKinsey Quarterly | Subjects: Finance, Management

Bringing a new product to market is one of the most costly and risky activities that any GM faces.

Voice-of-the-customer research and stage gate reviews have improved the odds of achieving success. But do they go far enough?

Three important tasks are frequently overlooked even though they offer the ability to identify weak links early on.

So, how can you overcome the odds? Arm your team with a … [ Read more ]

Content: Article | Author: Michael Barr | Source: MarketingProfs | Subjects: Market Research, Market/Investment

The basic financial statements – P&Ls and balance sheets – are not enough to help investors clearly understand a company’s capability to generate value. The paper “Customer Equity: An Integral Part of Financial Reporting” recommends that companies start reporting “forward-looking customer metrics” by providing the value of their customer base and how it changes over time. This is especially important for companies whose customers are … [ Read more ]

Content: Article | Authors: Bernd Skiera, Julián Villanueva, Thorstein Veblen | Source: IESE Insight | Subjects: Accounting, Finance

In marketing, context can be as critical as content. Recent research by Zakary Tormala and others finds that messages are perceived as more powerful when they are preceded by different messages that appear to have less substance or to be authored by someone with lesser credibility

Content: Article | Authors: Joshua Clarkson, Richard Petty, Zakary Tormala | Source: Stanford University | Subject: Market/Investment

Private equity firms manage some $1 trillion of global capital, yet because they are highly secretive, much remains unknown about their internal economics. How do PE firms organize themselves, for example, and how do they capitalize on their success? Some answers emerge from a paper by Wharton finance professor Ayako Yasuda and Yale School of Management finance professor Andrew Metrick presented at a recent … [ Read more ]

Content: Article | Authors: Andrew Metrick, Ayako Yasuda | Source: Knowledge@Wharton | Subjects: Finance, Venture Capital

First, U.S. Bankers raised questions about how the daily London Interbank Offered Rate was calculated, and then The Wall Street Journal demonstrated that the rate was inexplicably diverging from what the data suggested it ought to be. Getting it right is important, because LIBOR is the basis for many kinds of loans. The British Bankers Association says it will make changes.

Editor’s Note: a … [ Read more ]

Content: Article | Source: Knowledge@Wharton | Subject: Finance

It’s time to start preparing for the arrival of international accounting standards.

Content: Article | Author: Sarah Johnson | Source: CFO Publishing | Subjects: Accounting, Finance

Jeff Sexton at Future Now identifies and challenges seven common marketing claims, explaining why they are ineffective and offering ideas for making them persuasive.
1. Superior Customer Service
2. Easy to Use
3. Most Experienced
4. We’re #1
5. 100% Risk-Free
6. Cutting Edge
7. Best Value

Content: Article | Author: Jeff Sexton | Source: GrokDotCom | Subject: Market/Investment

Way too many conversion rate optimization projects are coming up empty. Companies feel they work too hard for too little return. Most conversion rate optimizations efforts are focused on pages and elements but don’t focus on the entire persuasion scenario. Perhaps and understanding of The Hierarchy of Optimization can help.

Content: Article | Author: Bryan Eisenberg | Source: ClickZ | Subjects: IT / Technology / E-Business, Market/Investment

Here’s how finance executives abuse the most-useful of computer programs — and how to do better.

Content: Article | Authors: Richard Block, Shahid Ansari | Source: CFO Publishing | Subjects: Finance, Productivity / Work Tips

How to use financial information to strategically manage costs. Managers rarely get financial information the way they really need it. How can a nonfinancial manager minimize costs with the financial information he or she does get? By reading and absorbing this clear, concise new book.

The Cost Management Toolbox lucidly explains how financial information–especially information relating to costs–is generated and reported in today’s service and manufacturing … [ Read more ]

Content: Book | Author: Lianabel Oliver | Subjects: Finance, Management

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Consolidating supplier markets, rising energy prices and the growing demand for raw materials in emerging markets have fundamentally changed the purchasing framework. Suppliers are more powerful than ever, which means buyers must adjust quickly to a new playing field.

A.T. Kearney developed The Purchasing Chessboard — a compilation of insights and experience from thousands of purchasing projects performed worldwide—to help procurement professionals master the tools of … [ Read more ]

Content: Article | Source: Kearney | Subjects: Best Practices, Finance, Management, Operations

David Haigh, group chief executive of Brand Finance, is a well known author, speaker and expert on brand and intangible asset valuation. Haigh was the featured speaker on the topic “Brand Valuation: What does it all mean to companies?” earlier this year at the Center for Marketing Excellence, Singapore Management University. Haigh spoke to Knowledge@SMU about the concept of brand valuation, how it can be … [ Read more ]

Content: Article | Author: David Haigh | Source: Knowledge@SMU | Subjects: Finance, Marketing / Sales

Owners of private companies normally sell their shares at a 20-30 per cent discount during mergers and acquisitions. The ‘private firm discount’ is one reason the stock market reacts more favorably when companies announce a private acquisition than when the target is a publicly-listed firm.

From the buyer’s point of view, says INSEAD Associate Professor of Strategy Laurence Capron, the discount reflects a presumed higher risk … [ Read more ]

Content: Article | Author: Laurence Capron | Source: INSEAD Knowledge | Subjects: Finance, Mergers & Acquisitions

Search funds allow an aspiring entrepreneur to raise money to fund them while they look for a company to buy. Four experienced entrepreneurs offer firsthand view of search funds. [Video 1hr:14]

Content: Multimedia Content | Source: Stanford University | Subjects: Entrepreneurship, Finance

Imagine giving a negative value to the shares of a company with positive cash flow forecasts. While it may seem strange, this type of mistake is more common than you think. In his book, 201 errores en valoraciones de empresas (201 Mistakes in Company Valuations), IESE Prof. Pablo Fernández shows how the host of theories and methods available to analysts sometimes leads to confusing results. … [ Read more ]

Content: Related Content | Author: Pablo Fernández | Source: IESE Insight | Subject: Finance

Content: Related Content | Source: Kearney | Subjects: Finance, International

There are a hundred ways in which derivative products can be structured. Ranju Sarkar spoke to experts to bring you a primer on derivatives – the building blocks, which can be used to create customised trades for a company. [Hat Tip to FinanceProfessor.com]

Content: Article | Author: Ranju Sarkar | Source: Business Standard | Subject: Finance