Table of Content
Introduction PART I: SHAREHOLDER VALUE 1. Personal financial spreadsheet models for creating maximum shareholder value Appendix to Part I Maximising value in a co-operative system Part II: VALUE AND RISK Case A: The Jilin project 2 Is it worth doing this business? 3 Preparing for the negotiation: how to create the maximum value out of a business opportunity Case B: The Jilin project (II) 4 Measuring the progress made in the process of creating value Case C: Swedish Timber 5 The need to acknowledge risk Appendices to Part II II.1: Compounding and discounting: some additional tools II.2: Two additional cases focusing on value and risk Case D: Dhahran Roads Case E: Dhahran Roads (II) Case F: Dhahran Roads (III) Case G: The Gatefield project PART III MODELLING BUSINESS PROCESSES AND SIMULATING THEIR DYNAMICS Case H: Delta Metal 6 Cash-income parity: analyzing deviations from parity 7 Building and using a per-cent-of-sales, vertical income, free cash flow and value model 8 Building and usnig a comprehensive income, cash flow and balance sheets model 9 Price, product mix and volume changes Case I: Delta Metal (II) 10 Building and using trajectories-of-payments-and receipts modelt 11 Growth, cash and value 12 Sequencing payments as a source of value 13 What should Delta Metal do? Appendices to Part III: Mastering the trajectories of payments and receipts Case J: Relais Electriques III.1: Aligning all the cash flows on the trajectory of orders received III.2: The 'chain of profit centres': a dangerous concept! Case K: SW Life III.3: Modelling the impact of growth on the trajectory of cash Case L: PT PharMa III.4: Building a model for an international business PART IV MANAGING THE TRAJECTORIES OF COMMITMENT IN DECLINE AND GROWTH SITUATIONS Case M: Tyler Welding Case N: Motion-Control 14 From 'strategic what if' to 'real options' thinking PART V DECISIONS TO COMMIT TO NEW PRODUCTS AND NEW MARKETS 15 The challenge of evaluating new products and new markets Case O: BA International 16 Launching P12: which model would help us best? Case P: BA International 17 Designing a model of a new product decision 18 Building an improved model 19 Making the model work for us 20 Deciding about the new product Case Q: Eagle 21 The value of flexibility Case R: Eagle (II) Appendices to Part V: Using a new technology to capture growth while keeping flexibility Case S: The CLS project V.1: Risk analysis of a major capital expenditure Case T: The CLS project (II) Part VI DECIDING TO COMIT TO EXTERNAL GROWTH OPPORTUNITIES 22 A framework for evaluating companies Case U: I, in the United Kingdom 23 A step-by-step analysis of the dynamics of an opportunity for co-operation 24 Designing a co-operative strategy and preparing for its implementatin Case V: F Trucks Case W: The negotiation between I and F 25 Creating value out of shared interests and differences: the rationale for a joint venture Appendix to Part VI Dealing differently with different types of divestment situations Case X: RFA General Appendix: Evaluating business opportunities Bibliography Index
