Wealth Creation: Powerpoint Presentation of the Firms' Competitive Life-Cycle Framework

Abstract

This Powerpoint presentation is focused on the firms' competitive life-cycle framework, also known as the CFROI valuation model. It has evolved as a commercial research program over the past 40 years and today is widely used by institutional money managers.

Slides 1-13 highlight three conceptual pillars to an integrated wealth creation framework: a systems mindset, a knowledge building process, and the firms' competitive life cycle. The life-cycle framework is especially well suited for a proposed Shareholder Value Review to improve corporate governance.

Slides 14-42 focus on eleven valuation ideas that distinguish the research methodology from mainstream finance practices. For example: all variables are expressed in units of constant purchasing power; forward-looking (market derived) discount rates are dependent upon the procedures used to forecast a firm's long-term net cash receipt stream; and a model corporation (Excel spreadsheet) is critical for linking economic performance to accounting data to warranted market valuations.

Keywords: Wealth Creation, Competitive Life Cycle, CFROI, Systems Mindset

JEL Classification: D21, D83, G12, G30, L21, M41