Management Between Strategy and Finance

Authors: Burkhard Schwenker, Klaus Spremann



Provides a solid and well-argued overview of the two schools of thought: strategic and financial thinking

Indicates a path through the conflict between financial and strategic thinking

Written by a top-manager and a well-known scientist

Companies' decision-making and planning systems find themselves in a constant tug of war between strategic and financial considerations. The authors analyze these two opposing currents in business thinking, dissecting their differences and identifying their best practices. They also develop an approach that reconciles the two conflicting schools of thought – without watering down their differences. They argue that both strategic and financial perspectives can serve as a compass in management's decision-making processes: Which perspective to choose depends on the phase the company finds itself in. The authors distinguish four phases in the company lifecycle – phases in which they must position themselves, develop, grow and, ultimately, earn. In the first two phases, strategic considerations should take priority; in the latter two phases, financial considerations rule the day.

Table of contents

Front Matter
Pages i-xiii

Basic Principles
Market or Firm?
Pages 15-32
Resources
Pages 33-62
Transfer Pricing
Pages 63-86
Think Strategically
Pages 87-113
Think Financially
Pages 115-142

The Four Seasons Of Business
Establish the Basics and Choose a Position
Pages 145-169
Develop and Build
Pages 171-200
Grow
Pages 201-234
Earn
Pages 235-269
The Four Seasons of Business — An Afterword
Pages 271-277

The Art of Balance — A Closing Remark
The Tug of War
Pages 281-289
Management Between Strategy and Finance
Pages 291-293

Back Matter
Pages 297-324