STHONHAM, Paul

BP Amoco : integrating competitive and financial strategy part two: financial strategy and valuation measurement - 2000

Part two of this case study of BP Amoco examines the role of finance and financial strategy in BP Amoco between 1990 and 2000 to see where and how far they were supportive and complementary to competitive strategies pursued by the company`s senior managers, and if they were ever pro-active. Models of value creation by Damodaran and Rapaport are considered as generic background and the relationship between financial strategies and performance and competitive strategies examined by using a sample of rations suggested by McKenzie. Part Two concludes with valuation of BP Amoco, applying several metrics: total returns, asset value, earnings multiples and discounted cash flows (specifically, ecnomoic value added)


Financial Strategy
Valuation
Competitive Performance
Shareholder Value