An important new resource for managers in marketing, finance, acquisitions analysis, and strategic planning, this book explores a question central to the financial health of every company: Is there a rate of corporate growth that is both desirable and sustainable? As the authors point out, excessive growth in sales can be as destructive to the survival of a firm as no growth. Here they present analytical models and tools that enable corporate planners to evaluate their own growth needs, target realistic expectations, and assess the collateral risks of growing either too fast or too slow.
Focusing throughout on the concept of managed growth, the authors begin with a theoretical micro/macroeconomic analysis and proceed to a practical, applied presentation of growth theory in management decision making. They present models useful for both short- and long-term management, all of them illustrated with concrete data taken from corporate annual reports and SEC 10K reports. By employing these models, planners will be able to accurately forecast optimal and feasible growth rates, evaluate the impact of price fluctuations on the sustainable growth rate, isolate the effects of productivity trends, plan working capital requirements, determine the most favorable capital structure of the firm, and measure the impact of potential mergers or takeovers on sustainable growth. Each of the models can easily be programmed for computer usage. The authors also pay considerable attention to remedial actions that can be taken when the actual growth rate either exceeds or falls short of the sustainable growth rate, making this an especially practical tool for anyone charged with financial, sales, and strategic planning responsibilities.
Inhaltsverzeichnis
Part 1 Conceptual basis of firm growth analysis: macroeconomics and sustainable growth; firm sustainable growth; sustainable growth; firm aggregate models; other firm aggregate models and cash flow analysis; disaggregated model of sustainable growth; firm optimal sustainable browth. Part 2 Application of growth theory to management decision making: forecasting sustainable growth rates; sustainable growth and working capital management; sustainable growth and capital budgeting; mergers - terms of combination and sustainable growth; sustainable growth and firm valuation.
