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The rapidly changing environment has made
the business to be outwardly focused to
synergize the internal working with the
outward environment
 Understanding of the operating environment
 Ability to forecast future environment
  changes
 Ability to adapt and orient to these changes
 Develop system for collecting information
 Monitoring the collected information
 Needs to be futuristically modified
 Two dimensions
    Relationship Forecast - They answer questions like
    what will happen if the cost of raw material is
    increased by 10 percent and competition lowers the
    selling price by 5 percent.
   Expected Forecast - These forecasts reveal the
    specific outcomes

  Requires Decision Support system for implementation
 Maximization of shareholder’s value
 Quantification of society’s relative preference for cash
  flows in different times
 Risky Venture                      More Returns
 Less Risky Venture                 Less Returns
Maximization of NPV of
projected Cash Flows
discounted at the cost of capital
 Implementing the extension strategy
 for Nutri-grain
 Helps to maximize shareholders value
 Helps to forecast future environmental changes for
  better decision making
 Helps in long term survival of the firm
Strategic vitals
Strategic vitals
Strategic vitals
Strategic vitals
Strategic vitals
Strategic vitals
Strategic vitals
Strategic vitals
Strategic vitals
Strategic vitals
Strategic vitals

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Strategic vitals

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  • 24. The rapidly changing environment has made the business to be outwardly focused to synergize the internal working with the outward environment
  • 25.  Understanding of the operating environment  Ability to forecast future environment changes  Ability to adapt and orient to these changes
  • 26.  Develop system for collecting information  Monitoring the collected information  Needs to be futuristically modified
  • 27.  Two dimensions  Relationship Forecast - They answer questions like what will happen if the cost of raw material is increased by 10 percent and competition lowers the selling price by 5 percent.  Expected Forecast - These forecasts reveal the specific outcomes Requires Decision Support system for implementation
  • 28.  Maximization of shareholder’s value  Quantification of society’s relative preference for cash flows in different times  Risky Venture More Returns  Less Risky Venture Less Returns
  • 29.
  • 30. Maximization of NPV of projected Cash Flows discounted at the cost of capital
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  • 35.  Implementing the extension strategy for Nutri-grain
  • 36.  Helps to maximize shareholders value  Helps to forecast future environmental changes for better decision making  Helps in long term survival of the firm