Business Finance
Applications, Models & Cases



By Michael Schlosser
August 2011
Pearson Education
Distributed by Trans-Atlantic Publications Inc.
ISBN: 9780132646499
550 Pages, Illustrated
$125.00 Paper Original


This streamlined text has a sharp focus, covering only the topics of finance which are relevant to business students and at a level which is entirely appropriate for their needs. Uniquely this book integrates text and substantive real world cases and its practical approach will help students learn how to use financial concepts and tools to solve a wide variety of business problems encountered in modern organisations. This book will empower students to conduct systematic analysis, build their own innovative action plans, understand and manage risk and create more profit, cash and value for an organisation. The book includes cross-over material to both general operational and strategic business issues and takes a highly practical approach.

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



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