search query: @indexterm CASH FLOW / total: 488
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| Author: | Gale, B. T. |
| Title: | "Allocating" capital more effectively |
| Journal: | Sloan Management Review
1987 : FALL, VOL. 29:1, p.21-31 |
| Index terms: | CORPORATE STRATEGY CORPORATE FINANCE INVESTMENT CASH FLOW CAPITAL BUDGETING |
| Language: | eng |
| Abstract: | A dominant trend in most management disciplines is to integrate functional specialization with overall corporate strategy. This is the case in the fields of marketing, MIS, and human resource management. It is not true, however, in finance. The strategic perspective in "allocating" capital is defined. Formulas for assessing investments are analyzed. The discounted cash flow (DCF) logic is discussed. Aligning capital allocation with business unit strategies helps to integrate the strategic planning and capital-budgeting processes. Tools and methods of strategic profit analysis are examined (cash flow profit component, PIMS analysis, PIMS par ROI equation, estimating future market value, portfolio analysis etc). |
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