Corporate performance and the exposure to macroeconomic fluctuations

This book develops and presents in an easily comprehensible way the essential elements of a corporate strategy for managing uncertainty in the macroeconomic environment. This Macroeconomic Uncertainty Strategy--MUST--enhances firm value by allowing management and external stakeholders to distinguish between changes in the intrinsic competitiveness of the firm and changes in performance caused by macroeconomic fluctuations. These fluctuations - manifested as changes in exchange rates, interest rates and inflation rates - are beyond management's control but they have a substantial impact on performance. MUST includes methods for - identifying the impact of macroeconomic fluctuations on performance,- developing strategies for macroeconomic risk management, - managing the risk caused by these fluctuations, - developing management compensation schemes based on management's contribution to the firm's intrinsic competitiveness.- developing reports to external stakeholders about the impact of macroeconomic fluctuation on performance