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Further, Rappaport presents provocative new insights on shareholder value of his business classic, Creating Shareholder Value, Alfred Rappaport. It’s become fashionable to blame the pursuit of shareholder value for the ills besetting corporate America: managers and investors obsessed with next quarter’s. VBM Thought Leader: Alfred Rappaport. Creating Shareholder Value. The New Standard for Business Performance. Alfred Rappaport About Alfred Rappaport.

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Columbia Business School Publishing, Sanjay Bakshi rated it it was amazing Feb 06, Our form of government calls for elected legislators and the judicial system to be the mechanisms for collective choice. Over the past few years institutional investors have substantially increased their efforts to gain better returns for the beneficiaries of the funds they manage.

These employees are unlikely to find jobs elsewhere that pay as rappapkrt as their current employment. The recent acquisition of Duracell International by Gillette is analyzed in detail, enabling the reader to understand the critical information needed when assessing the risks and rewards of a merger from both sides of the negotiating table.

Indeed, Main Street is fast replacing Wall Street. Enlightened self-interest dictates that shareholders and other stakeholders actively engage in a partnership of value creation.

Whatever one thinks of raiders and their tactics, the threats of takeovers did prompt CEOs to give long-overdue focus to delivering value for shareholders. The stakeholder model that attempts to balance the interests of everyone with a stake in the company makes it easier for corporate managers to justify uneconomic diversification creaying overinvestment in a declining core business, since these moves are likely to be endorsed by constituencies other than shareholders.

Second, shareholder returns may be materially influenced by what management believes to be unduly optimistic or pessimistic market expectations at the beginning or end of the performance measurement period.

Now, in this substantially revised and updated edition of his business classic, Creating Shareholder Vaoue, Alfred Rappaport provides managers and investors with the practical tools needed to generate superior returns. Read, highlight, and take notes, across web, tablet, and phone. This led to the infamous “value gap,” i.

Even the most persistent advocate of shareholder creatint understands that without customer value there can be no shareholder value. During the summer InvestingByTheBooks will review some older books that we never got around to writing about although we think they are important. Creating Shareholder Value is a short concise book. Creating Shareholder Value – The new Standard for Business Performance is a true achievement in human thinking; like classical music, creating shareholder value from Rsppaport Rappaport will forever remain an excellent piece of art.


Creating Shareholder Value: A Guide for Managers and Investors

The increasing number of executive recruiting firms and the length of the “Who’s News” column in the Wall Street Journal are evidence that rap;aport managerial labor market is very active.

To me the most interesting chapters are those where Rappaport not only links the creation of shareholder value to corporate strategy and execution but also manager evaluation and remuneration.

In the second part of the book, Rappaport makes it clear to the reader DCF is closely linked to strategic analysis and is not in contradiction with stakeholder analysis, customer value analysis, or Activity Based Costing.

Moreover the size of the targets continues to become larger. Steve McBride rated it it was ok Aug 25, To regain its sharehooder, Japan will have to reestablish itself as an attractive place to invest in by lowering its costs through a combination of corporate restructuring and government deregulation. The second factor likely to influence management to adopt a shareholder orientation is compensation tied to shareholder return performance.

It is a view of strategy that recognizes that competition for core competence leadership precedes competition The ultimate test of corporate strategy, the only reliable measure, is whether it creates economic value for shareholders. It is important craeting distinguish between the causes of layoffs and the CEOs who rapapport agents of change respond to ensure the competitiveness and survival of their companies.

Ashiesh Bhatia rated it valke was amazing May vakue, A positive “value gap” was an invitation to well-financed corporate raiders to bid for the company and replace incumbent management. No trivia or quizzes yet. Readers will be particularly interested in Rappaport’s answers to three management performance evaluation questions: While conflicts between customer value and shareholder interests can be quantified and appropriately resolved by sound shareholder value analysis, conflicts between employee and shareholder interests pose a substantially more difficult challenge.

The fourth and final factor influencing management’s shareholder orientation is the sharehklder market for corporate executives.


Business people who have been jostled by the latest management fads and buzzwords will find refuge in Rappaport’s well-conceived and effective framework.

Creatnig author advices that the allocation of options should be tied to the above leading indicators and that to the extent the share performance plays a role, one must look to the relative price performance compared to industry peers.

The threat of takeover is an essential means of constraining corporate managers who might choose to pursue personal goals at the expense of shareholders. Institutions, primarily pension funds and mutual funds, hold 57 percent of the stock in the one thousand largest U.

Alfred Rappaport – Creating Shareholder Value

The recent acquisition of Duracell International by Gillette is analyzed in detail, enabling the reader to understand the critical information needed when assessing the risks and rewards of a merger from both sides of the negotiating table. The takeover movement of the shareholrer half of the s provided a powerful incentive for managers to focus on creating value. Kimberly Miller rated it it was amazing Sep 25, The same commentators that just a few years rapoaport were lambasting CEOs for underperforming against foreign competitors are now criticizing CEOs for downsizing to improve competitiveness.

The question here is whether these measures are linked reliably to the market price of the company’s shares. Grale rated it it was amazing Sep 28, Ashiesh Bhatia rated it it rapppaport amazing May 11, Dat Dinh quang rated it it was amazing Feb 19, Ray Bonneau rated it really liked it Aug 09, After all, work force reductions have been largely triggered by structural changes in the economy rather than by transitory business cycles. They have much deeper and shareholdef more important stakes in our company than our shareholders.

Some economists argue that employees with firm-specific skills bear the residual risk of the company along with its shareholders and therefore should have rights on par with shareholders. Rappapodt Bertsch rated it it was amazing Nov 05,