BUSI 4220U Chapter Notes - Chapter 2: High Tech, Discounted Cash Flow, Keiretsu
Document Summary
Each objective contains four components: a performance dimension or attribute sought, a measure or index for evaluating progress, a target or hurdle level to be achieved, a time frame within which the target is to be accomplished. Smart: specific, measurable, attainable, relevant, and time-bound. In the long term, customer value and shareholder value converge; a firm can continue to provide attractive returns to shareholders only so long as it satisfies and retains its customers. A sustainable competitive advantage at the corporate level is based on company resources, resources that other firms do not have, that take a long time to develop, and that are hard to acquire. Allocating corporate resources three sets of analytical tools have proven useful in making such decisions: portfolio models, value-based planning, models that measure customer equity to estimate the value of alternative marketing actions. Discounted cash flow model: some limitations of value-based planning, some kinds of strategy alternatives are consistently undervalued.
