STRATEGY 1

MARKET SIGNALS : WHAT ABOUT THE WORLD IN WHICH WE OPERATE ?

CORPORATE PEOPLE CLIMBING THE CORPORATE LADDER FIND THE FURTHER THEY GO THE MORE THEY NEED TO UNDERSTAND THE CONCEPTS AND JARGON OF STRATEGY AND FINANCE.

VALUE PRINCIPLES TOUCH EVERY CORNER OF THE BUSINESS.

IF VALUE THROUGH STRATEGY IS THE NAME OF THE GAME, MARKETS SIGNALS PROVIDING A DIRECT OR INDIRECT INDICATION OF MARKET PLAYERS INTENTIONS, MOTIVES, GOALS OR INTERNAL SITUATION IN THE MARKET PLACE ARE OF THE UTMOST IMPORTANCE. THEY NEED TO BE SCRUTINIZED.

SOME SIGNALS ARE BLUFFS…SOME ARE JUST WARNINGS WHILE OTHERS ARE PURE COMMITMENTS TO A COURSE OF ACTION.

INTERPRETING THEM IN A TIMELY WAY IS KEY.

IGNORING THEM IS PRETTY MUCH LIKE IGNORING COMPETITION.

CAN WE AFFORD IT ?

RESTRUCTURING AND DIVESTITURES ARE MARKET SIGNALS.

SPIN-OFFS, SPLIT-UPS, LEVERAGED RECAPITALIZATIONS, EXCHANGE OFFERS, JOINT VENTURES, TAKEOVERS, SHARE REPURCHASES, TAKEOVER DEFENSES, PRODUCT DIVERSITY, RELATED AND UNRELATED DIVERSIFICATION, BUSINESS PORTFOLIOS,  ARE ALL STRONG SIGNALS SENT TO THE MARKET…

THEY ALL HAVE A RATIONALE.. AND THEY ALL MEAN A LOT !

THIS IS WHAT STRATEGIC MANAGERIAL FINANCE IS ALL ABOUT !…IT’S SERIOUS BUSINESS.

THE CHALLENGE HERE IS TO BE ABLE TO INTERPRET THE MARKET SIGNALS SENT BY THE COMPETITION. HOWEVER,  THE CHALLENGE IS ALSO TO BE ABLE TO UNDERSTAND COMPLEX ISSUES FACING COMPANIES AND DEVELOP THE CAPABILITY FOR LONG-TERM ORGANISATIONAL SUCCESS.

PHLDUCX

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