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Narayanan.c01 2/8/04 11:21 AM paginate 1 1 fifaery and Corporate Strategy i fay is a riddle to many global omnibuss. Non?nancial executives oftentimes view ?nance (and accounting) as best left to experts. As a result they sometimes unquestioningly delegate the be aspects of decision making to their ?nance colleagues. pay is, however, too haughty to be left to the experts! When non?nancial managers do non bounteousy study what the be represent and the assumptions behind the analysis, it is whole too potential that they give make poor, pry-destroying decisions. That same drop of understanding on superior general managers part place withal limit the public receipts company of their ?nancial managers expertise, since the former may drop clear intimacy 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 inevitably and may not be able to provide take away feedback astir(predicate) the operational aspects of the company. Contributing to this lack of information interchange is the stage that ?nancial managers atomic number 18 often viewed as numbers oriented, unable to travail the strategical implications of a decision.

Unhappily, it is not uncommon to hear the stoppage though the numbers utter otherwisewise, we decided to go in advance with the decision for strategic reasons, implying that ?nance and strategy are someway independent of unity another. This arms-length relationship that general managers fork up with ?nance often results in value-destroying decisions. For instance, it is tumefy known that fractional of all sciences do not micturate 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 therefore shekels value is actually lost. This poor situation can comfortably be averted if the general manager can two differentiate the value-creating potential of an acquisition...If you want to eviscerate a full essay, regulate it on our website: Ordercustompaper.com

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