Business Portfolio Management: Valuation, Risk Assessment, and EVA Strategies (Financial Management) - Hardcover

Allen, Michael S.

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9780471376408: Business Portfolio Management: Valuation, Risk Assessment, and EVA Strategies (Financial Management)

Synopsis

The Ultimate Guide to Applied Strategies for Managing Business Units and Portfolios Two of the most important business trends of recent years are increasing corporate acquisitions and managing business units as individual companies with a synergistic relationship to the parent company. Business Portfolio Management is an indispensable tool for corporate managers and strategists involved in these pursuits. This no-nonsense reference cuts through the competing claims and conventional wisdom to take a hard look at the realities of portfolio management. It provides the concepts and strategies necessary to create real strategic alternatives, estimate accurately the value of each alternative, and understand the risks involved in each. It supplies a framework for choosing between alternatives, for making tradeoffs between risks and opportunities, and for understanding how individual units in a portfolio will interact. From beginning to end, the concepts, techniques, and situations discussed in Business Portfolio Management are illustrated with detailed examples drawn from actual consulting engagements conducted by the author and his colleagues. These examples not only provide specific descriptions of how portfolio management concepts are implemented in the real world, they also give a real-world picture of the magnitude of value increases that are created through effective portfolio management.

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About the Author

MICHAEL S. ALLEN is Director of Strategy Development and Business Portfolio Management Practices at Navigant Consulting, Inc., a major international consulting firm. With more than thirty years of strategy development experience working for major corporations worldwide, Mr. Allen has personally led more than sixty strategy development projects for Fortune 500-sized companies.

From the Back Cover

The Ultimate Guide to Applied Strategies for Managing Business Units and Portfolios Two of the most important business trends of recent years are increasing corporate acquisitions and managing business units as individual companies with a synergistic relationship to the parent company. Business Portfolio Management is an indispensable tool for corporate managers and strategists involved in these pursuits. This no-nonsense reference cuts through the competing claims and conventional wisdom to take a hard look at the realities of portfolio management. It provides the concepts and strategies necessary to create real strategic alternatives, estimate accurately the value of each alternative, and understand the risks involved in each. It supplies a framework for choosing between alternatives, for making tradeoffs between risks and opportunities, and for understanding how individual units in a portfolio will interact. From beginning to end, the concepts, techniques, and situations discussed in Business Portfolio Management are illustrated with detailed examples drawn from actual consulting engagements conducted by the author and his colleagues. These examples not only provide specific descriptions of how portfolio management concepts are implemented in the real world, they also give a real-world picture of the magnitude of value increases that are created through effective portfolio management.

From the Inside Flap

Business Portfolio Management In recent years, numerous companies have demonstrated that corporations can achieve striking increases in shareholder value through effective strategic management of their portfolios of subsidiaries, business units, and product categories. To realize these remarkable gains, however, decision makers need a reliable framework for choosing among alternatives, making tradeoffs between risks and opportunities, and understanding how separate units of their portfolios will interact. Business Portfolio Management provides that framework. Using examples from major portfolio companies such as General Electric, The Travelers, Coca-Cola, Merck, Hewlett Packard, and more, this book demonstrates how effective portfolio management can help companies do a better job of creating real strategic alternatives, estimating the relative values of those alternatives, and understanding and managing the risks involved in each. It provides nonfinancial managers with practical techniques that have helped dozens of companies:
* Find an efficient frontier for the portfolio business
* Develop an effective portfolio strategy
* Build shareholder value through the creation of significant alternatives
* Use metrics, such as EVA,(TM) as a forward-looking evaluation tool
* Measure and track the value contribution of each unit over time
* Leverage replicable success templates across the portfolio
* Strengthen portfolios through acquisition
For corporate CEOs, CFOs, and strategic planners, as well as for executives in major business units that are part of larger corporations, Business Portfolio Management provides both the strategic vision needed to drive the acquisition and structuring of a well-focused business portfolio and the methods to manage the portfolio for maximum shareholder benefit.

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