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Effective Performance Measures of Corporate Control

The primary purpose of strategic management is to maximize the firm’s performance in the long-run. In financial terms, this means maximizing the enterprise value of the firm by maximizing the net present value of the stream of profits (cash flows) over the long-run. Enterprise value is equal to shareholder value plus the value of the […]

Managing Innovation through Dual Planning Systems

One of the issues a firm’s corporate directional strategy faces is about deciding its orientation towards growth. When a firm chooses to grow internally, innovation becomes the key driver to achieve that growth. Growth-oriented companies incorporate some kind of technology to generate innovation, and through innovation, they create a competitive advantage. Therefore, innovation provides a […]