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

42 Pages Posted: 23 Feb 2010 Last revised: 14 Mar 2010

Bartley J. Madden

DePaul University - Center for Strategy, Execution and Valuation; Illinois Institute of Technology - Center for Corporate Performance

Date Written: February 23, 2010

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

Suggested Citation

Madden, Bartley J., Wealth Creation: Powerpoint Presentation of the Firms' Competitive Life-Cycle Framework (February 23, 2010). Available at SSRN: https://ssrn.com/abstract=1557724 or http://dx.doi.org/10.2139/ssrn.1557724

Bartley J. Madden (Contact Author)

DePaul University - Center for Strategy, Execution and Valuation ( email )

1 East Jackson Blvd.
Chicago, IL 60604
United States

Illinois Institute of Technology - Center for Corporate Performance ( email )

10 West 35th Street, 18th Floor
Chicago, IL 60616
United States

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