CAPEX Excellence

Acknowledgements About the Authors Part I Why Investments Matter 1 Introduction 1.1 Investments - the forgotten value lever 1.2 A bird's-eye view of the book content 1.3 Why investments matter - the importance and structure of capital investments Appendix A1 Microeconomics background: the relevance of capital investments Appendix A2 Wavelet analysis: extracting frequency information from investment timelines References Part II Getting Investments Right 2 Right Positioning: Managing an Asset's Exposure to Economic Risk 2.1 Introduction 2.2 The level of asset exposure determines the achievable return 2.3 The level of protection determines the degree of exposure of an investment 2.4 A simple scoring metric to measure asset exposure 2.5 Quantitataive asset exposure analysis shows high correlation with ROIC at all levels 2.6 Strategies for reducing asset exposure 3 Right Technology: How and when to invest in a new technology 3.1 Capital investments in technology innovation 4 Right Timing: How Cyclicality Affects Return on Investments and What Companies Can Do About It 4.1 How cyclicality destroys value 4.2 Industry drivers of cyclicality 4.3 Developing an economic model of cyclicality 4.4 Measure to cope with cyclicality Appendix 4A A differential equation for economic cyclicality 5 Right Size: Balancing Economies and Diseconomies of Scale 5.1 Introduction: The role of scale in determining profitability 5.2 Assessing economies of scale 5.3 Determining diseconomies of scale 5.4 Risk elements 5.5 An approach for finding the "sweet spot" 5.6 Real-life examples 6 Right Location: Getting the Most from Government Incentives 6.1 Government incentives: an overview 6.2 Creating public-private, win-win situations 6.3 Common types of incentive instruments 6.4 The financial impact of incentives: a modeling approach 6.5 Geographical differences in incentive structures 6.6 Managing government incentives 7 Right Design: How to Make Investments Lean and Flexible 7.1 Lean design as a competitive advantage 7.2 The three dimensions of a lean capital investment system 7.3 Flexibility: just what customers and shareholders need and no more 7.4 How to avoid creatig a front-page disaster: anticipating what can go wrong 8 Right Financing: Shaping the Optimal Finance Portfolio 8.1 Why financing matters 8.2 Three-step financing approach Part III: Right Allocation: Managing a Company's Investment Portfolio 9 Right Allocation: How to Allocate Money Within the Company 9.1 Key requirements for capital allocation 9.2 Four models of the corporate centre role in shaping the investment portfolio 9.3 Capital allocation approach for operators and strategic controllers 9.4 Capital allocation approach for strategic architects and financial holding structures Index