The Role of Strategic Options in Shareholder Value Creation

• Autorzy: Grzegorz Urbanek
• Języki publikacji: EN

Abstrakty

EN

Realization of principle company objective - shareholder value maximization - requires maintaining of high growth rates coupled with achieving returns on investments higher than the cost of capital for the company. The condition for high growth and return is a possession by a company of sustainable competitive advantage. In times of "hypercompetition" and growing market uncertainty, the key to success is maintaining strategic flexibility. An option approach to strategy gives a clue about how firms can improve their strategic flexibility in order to effectively respond to volatile environment and gain sustainable competitive advantage. The main source of numerous strategic options for the company are its competences and underlying resources (mostly intangible). Thus the value creation process is a result of pursuing strategy aimed at the identification, development and optimal use of competences as a source of strategic options for the company. (original abstract)

Słowa kluczowe

EN

Creating company's value; Enterprise value; Competitive advantage; Investment strategy; Value creation

PL

Kreowanie wartości przedsiębiorstwa; Wartość przedsiębiorstwa; Przewaga konkurencyjna; Strategia inwestycyjna; Tworzenie wartości

• Czasopismo: Acta Universitatis Lodziensis. Folia Oeconomica
• Rocznik: 2011
• Tom: 257 Current Trends in Management, Finance and Accounting Sciences. Vol. 1
• Strony: 121--131

Twórcy

autor

Grzegorz Urbanek

• University of Lodz, Poland

Bibliografia

• Abell D. (1993), Managing with Dual Strategies: Mastering the Present, Preempting the Future, Boston: The Free Press, p. 303-316.
• Barney J. (1991), "Firm Resources and Sustained Competitive Advantage", Journal of Management, Vol. 17, No. l,p. 99-120.
• Benson B., Davidson W. (2010), "The Relation between Stakeholder Management, Finn Value, and CEO Compensation: A Test of Enlightened Value Maximization", Financial Management, Autumn, p. 929-963.
• Bughin J, Copeland T. E. (1997), "The virtuous cycle of shareholder value creation", The McKinsey Quarterly, No. 2, p. 156-167.
• Damodaran A. (2006), Applied Corporate Finance, Hoboken: Wiley.
• Dierickx I., Cool K. (1989), "Asset Stock Accumulation and Sustainability of Competitive Advantage", Management Science, Vol. 35, No. 12, p. 1504-1511.
• Grant R. (1991), "The Resource-Based Theory of Competitive Advantage: Implication for Strategy Formulation", California Management Review, Spring, p. 114-135.
• Hamel G., Prahalad, The Core Competences of the Corporation, Harvard Business Review, 1990, May/June, p. 79-91.
• Jensen M. (2010), "Value Maximization, Stakeholder Theory, and the Corporate Objective Function", Journal of Applied Corporate Finance, Vol. 22, No. 1, Winter, p. 32-42.
• Koller T., Dobbs R., Huyett B. (2011), Value - The Four Cornerstones of Corporate Finance, Hoboken: Wiley.
• Koller T., Goddard M., Wessels D. (2005), Valuation: Measuring and Managing the Value of Companies, Hoboken: Wiley.
• Mun J. (2002), Real Options Analysis, Hoboken: Wiley. Porter M. (1985), Competitive Advantage, New York: Free Press.
• Rumelt R., Theory:, strategy: and entrepreneurship, [in:] The competitive challenge: Strategies for industrial innovation and renewal, ed. D. Teece, Cambridge Ma.: Ballinger Publishing Company, 1987, p. 137-158.
• Sanchez R., Heene A. (1997), "Reinventing Strategic Management: New Theory and Practice for Competence-based Competition", European Management Journal, Vol. 5, No. 3, p. 303-317.
• Tallman S. (2006), "Dynamics Capabilities", [in:] The Oxford Handbook of Strategy, eds. D. Faulkner, A. Campbell, Oxford: Oxford University Press.
• Williamson P. (2006), "Strategy Innovation", [in] The Oxford Handbook of Strategy, eds. D. Faulkner, A. Campbell, Oxford: Oxford University Press.

Identyfikatory

DOI

11089/737