List of Exhibits

Introduction

Exhibit I-1: The Step-Wise Approach to Value.

Chapter 1: Value and Value Proposition

Exhibit 1-1: The Step-Wise Approach to Value.

Exhibit 1-2: Book value.

Exhibit 1-3: Value distortion.

Chapter 2: External Strategic Alternatives

Exhibit 2-1: Value of mergers and acquisitions.

Exhibit 2-2: Driving value through horizontal M&A.

Exhibit 2-3: Supply chain movement.

Exhibit 2-4: Design example.

Exhibit 2-5: Supply chain movement and cost reduction.

Exhibit 2-6: R&D outsourcing and the supply chain.

Exhibit 2-7: Diversification and investment.

Exhibit 2-8: Financial returns.

Exhibit 2-9: Driving value through outsourcing.

Chapter 3: Internal Strategic Alternatives

Exhibit 3-1: Components of information technology.

Exhibit 3-2: Current process.

Exhibit 3-3: Target process.

Exhibit 3-4: Cost reduction.

Chapter 4: The Economic Filter

Exhibit 4-1: Permanency of change.

Exhibit 4-2: Characteristics for evaluating equivalence of action in Strategic Alternatives.

Chapter 5: The Strategic Filter

Exhibit 5-1: The five forces that drive industry.

Exhibit 5-2: Relationship between competitive rivalry and capacity.

Exhibit 5-3: ABC Corp. unit costs.

Exhibit 5-4: The value chain and the Porter Model.

Exhibit 5-5: The Balanced Scoreboard.

Exhibit 5-6: Financial qudrant representative metrics.

Exhibit 5-7: Customer quadrant measurements.

Exhibit 5-8: Internal business process metrics.

Exhibit 5-9: Learning and growth metrics.

Chapter 7: The DuPont Model

Exhibit 7-1: DuPont chart.

Exhibit 7-2: DuPont chart—alternate version.

Exhibit 7-3: Adjusted DuPont chart.

Exhibit 7-4: Effect of a decrease in cash flow margin on return on assets.

Exhibit 7-5: Effect of a decrease in asset turnover on return on assets.

Exhibit 7-6: Effect of a decrease in both cash flow margin and asset turnover on return on assets.

Exhibit 7-7: Cobain Enterprises's balance sheet.

Exhibit 7-8: Cobain's Coffee Roasters income statement.

Exhibit 7-9: Impact on the adjusted ROA.

Chapter 8: Activity-Based Management

Exhibit 8-1: An ABM analysis of an IT project.

Exhibit 8-2: Human resources process.

Exhibit 8-3: ABM: strategic vs. operational issues.

Exhibit 8-4: Value chain.

Exhibit 8-5: Analysis of research and development.

Chapter 9: Regression Analysis

Exhibit 9-1: The GDP data for Auto, Inc.

Exhibit 9-2: Unit demand predicted from estimated GDP (2001 to 2003) for Auto, Inc.

Chapter 10: Components of Value

Exhibit 10-1: How benefits can be identified.

Exhibit 10-2: Cost-benefit analysis.

Exhibit 10-3: Cash flow.

Chapter 11: Valuation

Exhibit 11-1: Projected cash flows for Caffeine City acquisition, version A.

Exhibit 11-2: Computing net present value.

Exhibit 11-3: Computing net present value with a reduction in the discount rate.

Exhibit 11-4: Present value of future cash flows.

Exhibit 11-5: Projected net cash flows for Caffeine City acquisition, version B.

Exhibit 11-6: Projected net present value for Caffeine City acquistion.

Exhibit 11-7: Caffeine City acquistion growth rate.

Exhibit 11-8: Caffeine City acquisition scenario analysis.

Exhibit 11-9: Monte Carlo analysis, Caffeine City acquisition.