Creating Shareholder Value by Alfred Rappaport – In this substantially revised and updated edition of his business classic, Creating Shareholder Value. VBM Thought Leader: Alfred Rappaport. Creating Shareholder Value. The New Standard for Business Performance. Alfred Rappaport About Alfred Rappaport. Now, in this substantially revised and updated edition of his business classic, Creating Shareholder Value, Alfred Rappaport provides managers and.

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Even when corporate executives own shares in their company, their viewpoint on the acceptance of risk may differ from that of shareholders.

VBM Thought Leader: Alfred Rappaport

How managers communicate their value to the labor market outside of their individual firms is less apparent. After a decade of downsizings rappapodt blamed on shareholder value decision making, this book presents a new and indepth assessment of the rationale for shareholder value. This revised and updated edition addresses the issues of corporate downsizing and the social responsibilities of business.

Brilliant and incisive, this is the one book that should be required reading for managers and investors who want to stay on the cutting edge of success in a highly competitive global economy.

Because of rappaort ambiguity and lack of enforceability, avlue corporate social responsibility model gets little support from policymakers and corporate governance activists today.

There was a problem filtering reviews right now. Perhaps no prospect looms larger than the potential privatization of Social Security. Managements governed by shareholder interests would invest in technology, training, or reengineered workplaces that reduce safety costs.

The euphoria associated with investments in total-quality programs sometimes exempts such major investments from careful shareholder-value scrutiny. In the meantime, implementation of shareholder value has helped transform American industry into the most competitive in the world, after a period when all the talk focused on its dismal performance.

October 13, Sold by: Many European governments and unions try to protect jobs by making it very costly to lay off employees.

Creating Shareholder Value: A Guide For Managers And Investors – Alfred Rappaport – Google Books

Add to Cart Add to Cart. Indeed, we would expect that the greater the proportion vallue personal wealth invested in company stock or tied to stock options, the greater would be management’s rappaporr orientation. While many companies used piecemeal applications of the shareholder value approach, such as discounted cash-flow analysis for capital budgeting decisions and for merger-and-acquisition pricing, management thinking largely was valur by a short-term earnings orientation.


We have a number of suppliers, institutions, customers, and communities. In such a world, fund managers will be monitored as never before and they, in turn, can be expected to push the companies in their portfolios for performance as never before. Many companies, particularly those in mature industries such as oil, allocated their very substantial excess cash flow toward uneconomic reinvestment or ill-advised diversification.

Millions of employees have an indirect stake in stock performance by their participation in defined-benefit pension plans sponsored by their employers.

Moreover, such downsizing may also adversely affect the morale zlfred productivity of the remaining work force. The insights on acquisitions and the work on performance measurements are very important for fast-growing companies.

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

Creating Shareholder Value

Managers, like other people, act in their self-interest. Alfred Rappaport is one of the founders of the creating shareholder value mindsetwhich gained importance in the ’80s and still growing and increasingly accepted worldwide. Top Reviews Most recent Top Reviews.

This interference with market forces has led to less competitive, high-cost companies and unemployment rates more than twice those experienced in this country. Now, in alfrfd substantially revised and updated edition of his business classic, Creating Shareholder Value, Alfred Rappaport provides managers and investors with the practical The third factor affecting management behavior raopaport the threat of takeover by another company.

The threat of takeover is an essential means of constraining corporate managers who might choose to pursue personal goals at the expense of shareholders. Readers will be particularly interested in Rappaport’s answers to three management performance evaluation questions: But such support alvred come only from those whose stock appreciation exceeds their loss from being laid off.

However, the critical role of the shareholder value approach in allocating resources in a market-based economy is far from sharehokder accepted.

The recent acquisition of Duracell Rapppaort 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.


Any significant exploitation of shareholders should be reflected in a lower stock price. AmazonGlobal Ship Orders Internationally.

On the contrary, Rappaport shows DCF can also be used as a communication toolthat helps investors understand a company’s implied rapaport and how to re act. Further, Rappaport presents provocative new insights on shareholder value applications to: Valje can employee interests be aligned with shareholder interests in the face of restructuring and layoff announcements that so often trigger increases in the share price?

Not all downsizing is based on long-term shareholder value considerations.

Within the firm, shareholdeg evaluation and incentive schemes are the basic mechanisms for monitoring managerial performance. Waldron, the former chairman of Avon Products, for example, states: There are significant savings to be realized for relatively small reductions in accident rates.

Takeovers as well as restructurings, which were management’s response to the threat of takeover, unlocked billions of dollars of value for shareholders.

And third, divisional and business unit performance cannot be directly linked to stock price.

The takeover movement of the latter half of the s provided a powerful incentive for managers to focus on creating value. The takeover movement demonstrated little tolerance for managements not attentive to shareholder value.

Their primary approach has been to shine the spotlight on underperforming companies and promote changes in either corporate strategy or in management itself. Workplace safety serves as an excellent example. Now, in this substantially revised and updated edition of his business classic, Creating Shareholder Value, Alfred Rappaport provides managers and investors with the practical Customers, however, were unwilling to accept the price increases initiated to offset the costs of the quality program.

Wallace’s quality program significantly increased on-time deliveries as well as its market share. What’s on the horizon? Creating Shareholder Value Hardcover Please try again later.