Further, Rappaport presents provocative new insights on shareholder value of his business classic, Creating Shareholder Value, Alfred Rappaport. It’s become fashionable to blame the pursuit of shareholder value for the ills besetting corporate America: managers and investors obsessed with next quarter’s. VBM Thought Leader: Alfred Rappaport. Creating Shareholder Value. The New Standard for Business Performance. Alfred Rappaport About Alfred Rappaport.

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Remembering her success, they pay dearly for the right to kiss corporate toads, expecting wondrous transfigurations. For corporate level executives, the question is whether performance for shareholders is the dominant criterion in assessing their value in the executive labor market. The euphoria associated with investments in total-quality programs sometimes exempts such major investments from careful shareholder-value scrutiny.


Creating Shareholder Value | Book by Alfred Rappaport | Official Publisher Page | Simon & Schuster

Rappaport starts the book explaining that objections to using a Discounted Cash Flow model do not hold. Not all downsizing is based on long-term shareholder value considerations.

This led to the infamous “value gap,” creatibg.

The source of a company’s long-term cash flow is its satisfied customers. Some downsizing decisions are predicated on reporting better short-term earnings rather than focusing crdating the longer term position of the business. Michael is the author of Think Twice: After a decade of downsizings frequently blamed on shareholder value decision making, this book presents a new and indepth assessment of the rationale for shareholder value.

Ray Bonneau rated it really liked it Aug 09, For example, layoffs in companies that depend heavily on personal relationships with customers can adversely affect longer term profitability. Options were shareholdef Rappaport a way to try to mitigate the risk that management would enrich themselves at the expense of the owners of the company.


Creating Shareholder Value: A Guide for Managers and Investors by Alfred Rappaport

Critical social issues in education, health care, drug abuse, and the environment pose enormous social challenges. This is the case because the larger the investment in securities the greater the propensity of market movements to affect consumer spending decisions. Rappaport is careful to differentiate the creation sharreholder shareholder value from the valuw return on the stock market.

And third, divisional and business unit performance cannot be directly linked to stock price. Readers will be particularly interested in Rappaport’s answers to three management performance evaluation questions: Chief executives of some of our largest companies have contended that shareholder interests should not be their primary obligation.

VBM Thought Leader: Alfred Rappaport

The lesson is clear: Now, in this substantially revised and updated edition of his business classic, Creating Shareholder Value, Alfred Rappaport provides managers and investors with the practical tools needed to generate superior returns. It is reasonable to expect that many corporate executives have a lower tolerance for risk.

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.

These employees are unlikely to find jobs elsewhere that pay as much as their current employment.

My library Help Advanced Book Search. Managements governed by shareholder interests would invest in technology, training, or reengineered workplaces that reduce safety costs. I recommend this book to any person seriously concerned about the function of a corporation in a market economy. Rappwport for telling us about the problem.


Creating Shareholder Value: A Guide for Managers and Investors

A positive “value gap” was an invitation to well-financed corporate raiders to bid for the company and replace incumbent management. The stakeholder model that attempts to balance the interests of everyone with a stake in the company makes it easier for corporate managers to justify uneconomic diversification or overinvestment in a declining core business, since these moves are likely to be endorsed by constituencies other than shareholders.

Further, Rappaport presents provocative new insights on shareholder value applications to: Ryan Hanson rated it it was amazing Dec 29, The recent acquisition of Duracell International by Gillette is analyzed in detail, enabling the reader to understand the critical information needed when assessing the risks and rewards of a rappwport from both sides of the negotiating table.

Eric rated it it was amazing Oct 27, This significant update to the seminal Creating Shareholder Value offers investors and corporate managers a theoretically sound and practically usable guide for decision making. The price for avoiding this necessity, however, is eventually much more painful in human and economic terms.