Creating Shareholder Value

The revised edition of the business classic which provides definitive guidance for managers on how to select and implement the tactics that will create the most value. Managers are shown how to develop value-creating businesses that not only improve a firm's profitability, but make it more resistant to corporate raiders.

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Increased annual sales and growth of earnings - these are the usual standards of success for the American corporation. But what does it mean if the company achieves its goals but the value of its stock declines at the same time? According to Rappaport, these companies are judging success by the wrong standards, and often become the target for takeovers. Rappaport argues that the ultimate test of corporate strategy, indeed the only reliable measure, is whether it creates economic value for shareholders.