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.
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