The current transformation of the global economy is being driven by new
fundamental innovations, digitalization, industry dynamics and climate
change. The impact of this transformation in terms of value migration,
industry boundaries, investment and firm continuity is vast. The fourth
edition of Strategy, Value and Risk examines these issues, and how
they will influence firms and industries in the future. Those aspects of
the business environment that will have a significant impact on
strategy, business models, investments and value are identified, and the
accounting, finance, economic and quantitative principles that provide a
foundation for the analysis of these issues are discussed.
Part I: Strategy, Value and Risk provides the strategic, economic,
accounting and financial framework. Strategy discusses technology and
innovation, industry dynamics, globalization and industry concentration,
climate change, industry boundaries and future value. Value discusses
the accounting framework and corporate finance and investment, while
Risk covers investment risk, corporate risk management and value and
risk. Part II: Quantitative Analytics provides an overview of financial
statistics, derivatives and derivative applications, and provides a
background on the financial economics used in the analysis of physical,
intangible, financial and energy assets. Part III: The Analysis of
Investments, Transformation and Value examines platforms, data and
analytics, the energy sector, pharmaceutical and biotech, a growth firm
and media transformation, and applies the accounting, economic,
financial and quantitative concepts.
This fourth edition lays out scenarios that will likely shape firms and
industries in the future, and has relevance to CFOs, corporate finance
and investment professionals. Business model disruption, data and
analytics, intangible assets and dynamic analysis are now key issues
within the CFO role. Investment professionals are required to see the
larger economic environment in which firms compete, assess a firm's
industry and its position within that industry, recognize which
investments best serve its broad strategic goals and identify a firm's
capabilities and options.
A background in the accounting, finance, economic, quantitative and
valuation concepts that are relevant to the digital economy, new
industries, business models and technologies is essential for finance
professionals. This book addresses these issues within the context of
the fundamental changes underway in the global economy, and provides
applications of the techniques to illustrate the concepts.
