Finance for Strategic Decision-Making: What Non-Financial Managers Need to Know

by M. P. Narayanan, Vikram K. Nanda

Overview

Finance for Strategic Decision Making demystifies and clarifies for non-financial executives the basics of financial analysis. It shows how they can make important financial decisions that can critically enhance their institution’s ability to respond to competitive challenges, undertake new projects, overcome financial setbacks, and most importantly, create shareholder value. Written by M. P. Narayanan and Vikram K. Nanda—two of the country’s leading authorities on financial strategy—this book offers a practical guide for using financial analysis to enhance strategicdecision making. The book includes a coherent framework that outlines practical and intellectually sound guidance for executives who must make strategic decisions. Finance for Strategic Decision Making

• Explains the role of finance in corporate strategy
• Offers guidance on resource allocation decisions
• Explores how to determine the right balance of debt and equity capital to maximize firm value
• Demonstrates how to use payout policy as a strategic tool
• Clarifies if a merger, acquisition, or divestiture is in the best interest of an organization
• Shows how to manage risk

Reveals how to measure value created and the effectiveness of upper level management

Product Details

ISBN-13:	9780787965174
Publisher:	Wiley
Publication date:	04/02/2004
Series:	J-B-UMBS Series , #27
Pages:	320
Sales rank:	715,767
Product dimensions:	6.36(w) x 9.19(h) x 1.16(d)

About the Author

M. P. Narayanan is professor of finance and chair of the finance department at the University of Michigan Business School. He is the faculty director of the Finance for Non-Financial Managers program and the Finance for Strategic Decision-Making program.
Vikram K. Nanda is associate professor of finance at the University of Michigan Business School.

Read an Excerpt

Click to read or download

Table of Contents

Series Foreword xi

Preface xiii

1 Finance and Corporate Strategy 1

2 The Resource Allocation Decision 13

3 Cost of Capital 55

4 Capital Structure and Financing 75

5 Payout Policy 113

6 Mergers and Acquisitions 137

7 Divestitures 179

8 Risk Management 211

9 Performance Evaluation 247

Notes 285

The Authors 291

Index 293

What People are Saying About This

From the Publisher

“Business decision making is a process too important to be delegated. This book provides general managers with a powerful framework, in accessible language, allowing them to understand, analyze, and make firm value-creating decisions for their corporations.”
—Joao Luis Barroso, vice president, Portugal Telecom, Brazil

“M. P. and Vikram boil down thirty years of teaching executives the subject of finance into an easy-to-read overview. This book is ideal for someone ready to transform their finance understanding from a point of unconnected concepts into a fundamental framework of finance.”
—Mark Lund, Procter and Gamble Research & Development

“This is ‘must know’ stuff for leaders stepping into the realm of corporate decision making. M. P. Narayanan lays out a crystal-clear framework that I used to substantially improve project selection and strategy reviews.”
—Don McMonagle, former astronaut and director of strategy and development, Pratt & Whitney Space Propulsion

“M. P. Narayanan uses his engineering background to create an educational ex perience that might be called ‘Applied Finance.’ The book does not bog down the reader with financial theories, but rather uses the context of real business situations to bring to light the appropriate application of finance principles.”
—David C. Poirier, graduate, University of Michigan Executive MBA Class of 2003 graduate