What is corporate strategy? What is a strategic investment? Decision-making and the rational manager; Anatomy of a strategic decision; Corporate strategy and the purpose of business; The big strategic question; Aims and objectives of business enterprises; Last words on objectives; Strategic audit and the business environment: how to carry out a strategic analysis; Strategic audit; Key areas to examine; Assessing opportunities and threats; Aspects of the business environment; Anticipating what might happen; Estimating ahead; Minimize the threats, maximize the opportunities; A commercial dilemma; The planning gap and strategic decisions; What is strategy? Steps in choosing strategies; Last word on strategy; What needs to be forecast? The nature of investment; Quantitative and qualitative information; Market research; Information needed for financial analysis; Estimating revenues; Forecasting techniques; Estimating costs; Estimating requirements for capital assets; Capital versus revenue expenditure; Conclusion; Carrying out the financial appraisal; The concept of return on investment; Investment appraisal techniques; Return on capital; Payback; Discounted cash flow; Conclusion; How do we cope with uncertainty? Capital budgeting and risk; Measurement of risk; Payback; Estimating variation in expected cash flows; Scenario approach; Sensitivity analysis; Simulation; Adding probabilities to scenarios; Risk management; Wider issues; Appendix: the standard deviation; What rate of return should we look for? The required rate of return; The return to shareholders; The weighted average cost of capital; What should be done about inflation? Taxation and other fiscal incentives; Conclusion; What else needs to be taken into account? Management judgment; Keeping one's options open; The wider issues; Conclusion; Appendix: break-even analysis; Does investment fit in with our strategic plan? Strategic fit; Evaluation of the whole strategy; Shareholder value analysis; Case study; Conclusion; Strategic management in practice; Whose problem is it? Where are we? What will happen if we do nothing? How might the business environment change? Selecting strategic options; Strategic filtering; Taking the decision; Gaining commitment; Motivating; Post-completion audit; How to get the project accepted; Case study; Conclusion; Bibliography; Index.