The tenth volume in the "Best of Long Range Planning Series" focuses on the role of shareholder value as a key tool to evaluating strategic options. Within limits, the concept has an essential part to play in strategic management. However, the authors argue that it should not be the only approach used, as customer focus and employee development are also crucial. By learning the lessons propounded in this volume, companies can avoid inappropriate predation, generate attractive returns for shareholders and provide a sound platform from which to launch and sustain successful customer-driven strategies and lasting competitive advantage.
Introduction: Shareholder Value: Key to Corporate Development, C. J. Clarke. Part 1: Failings in Current Practice. Does top management add value to investment decisions? H. Barton et al. Part 2: Safeguarding Independence. Creating value to keep the raiders at bay, B. C. Reimann. Value gaps - who is right, the market or the managers? D. Young & B. Sutcliffe. Brief case: do raiders create value? R. Koch. Defensive strategies against takeovers: creating shareholder value, C. J. Clarke & K. Brennan. Part 3: Evaluating Major Strategic Moves. Good and bad investment: the stock market verdict, C. C. Markides & N. A. Berg. Planned divestment - a five step approach, C. J. Clarke & F. Gall. Acquisitions - techniques for measuring strategic fit, C. J. Clarke. Appraising companies for acquisition, D. Cameron. Assessing the risks in acquisitions - the risk-chance analysis, K. Neuburger. Part 4: Management Buy-Outs Add Value. The NFC buy-out - a new form of industrial enterprise, Sir P. Thompson. Part 5: Selling the Value Strategy. How corporate communication of strategy affects share price, R. Higgins & B. Bannister.