Preface

Today’s fast-paced business environment demands effective implementation of corporate growth strategies through sophisticated financial management. There is a pressing need for clear strategies, and for adaptive and innovative implementation that can deliver on the objectives set out. Leading multinationals like AT&T, Citigroup, Daimler Chrysler, Exxon-Mobil, General Electric, GlaxoSmithKline, Hewlett-Packard, IBM, Intel, Merrill Lynch, Microsoft, Procter & Gamble, Royal Dutch/Shell, Siemens, and Toyota are employing corporate financial innovations as a source of gaining competitive advantage.

These firms have consistently demonstrated the ability to satisfy customers with compelling value propositions. They embody superior business and financial strategies, responsive leadership, in consort with operational integrity. They anticipate and prepare for critical events, and craft successful strategies to prosper amidst different scenarios. What these firms specifically do to build shareholder value is a matter we shall return to in the following pages. But companies around the globe are now facing a broad set of business challenges, including dramatically shortened business cycles and heightened competition. Increased uncertainty has placed a premium on effective execution of business strategies. In response, they are improving their strategic capabilities to out-maneuver the competition.

As these best-of-breed corporations follow the continuous improvement philosophy both in operational and financial management, the stakes get higher. Most companies have spent the last decade reengineering their operations for improved efficiencies. They are now applying real-time information systems and advanced financial management techniques enabling them to “sense-and-respond” optimally to changing business conditions.

This improvement is necessary just to stay in the game. Slow adopters in contrast find themselves failing to deliver on their financial objectives. The finance function plays a critical role here. However, constant and intense focus on running a business leaves little time for corporate executives like yourselves, to learn about the latest techniques and solutions. This book, therefore, presents an executive-level review of “best-in-class” corporate finance practice and insights, as we focus on the relationships among principal business functions and strategic finance.

Topics covered include shareholder value maximization, the balanced scorecard, economic value added, value at risk, enterprise-wide risk management, earnings at risk, tax planning, Monte Carlo simulation financial optimization, mergers and acquisitions, real options, treasury management, pricing strategy, and business planning. In this book, you will experience first-hand, how high-performance finance organizations across a broad spectrum of industries go about their business of creating and sustaining shareholder value, and can selectively apply best practices to your corporation’s unique circumstances.

Samir Asaf
New Jersey, USA