From regulation to competition - Managing the corporate portfolio for maximum value. Final report
Managing the corporate portfolio of business enterprises to create maximum stakeholder value is a major challenge facing utilities today. As the industry moves from regulation to competition, senior managers see their corporate portfolio evolving into some combination of regulated and competitive business activities. Which combination is best? This report shows how the concepts, techniques, and tools that comprise Strategic Asset Management help corporate executives and business unit managers find the best combination-by evaluating business portfolios, assessing the risks and rewards of alternative strategies, comparing business investments according to their impact on shareholder value, and aligning the organization for future success. The report has these parts: (1) Meeting the Competitive Challenge - Deregulation of the industry forces companies to address the challenge of competition. Dramatic changes in thinking about business investments are required for success in this new world. Management teams are learning to think differently about how increasingly scarce resources can be invested to increase corporate value. (2) Investing in Strategic Enterprises - The portfolio approach gives senior executives and business managers a way to evaluate combinations of businesses with different risk and return profiles and determine which combination creates the greatest value for shareholders. (3) Aligning for Business Success - When the most promising portfolio of business enterprises has been selected, the remaining challenge is to redesign and reengineer the organization to create the alignment that actually delivers maximum value. The methodology presented here is consistent with that described in Strategic Asset Management: Helping Utilities Translate Vision into Value (TR-102730). This guided approach helps to increase stakeholder value, strengthen competitive advantage, and promote successful enterprises.
- Research Organization:
- Electric Power Research Inst. (EPRI), Palo Alto, CA (United States); Strategic Decisions Group, Menlo Park, CA (United States)
- Sponsoring Organization:
- Electric Power Research Inst., Palo Alto, CA (United States)
- OSTI ID:
- 233391
- Report Number(s):
- EPRI-TR-106216; TRN: 96:003127
- Resource Relation:
- Other Information: PBD: Mar 1996
- Country of Publication:
- United States
- Language:
- English
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