The purpose of this paper is to explore the extent to which
cash flow management, the value of the organisation, and
strategic decision making are correlated. A cash flow
model is proposed based upon four levels of strategy
decisions. The business press has been monitored for a
period of twelve months to find evidence of linkages
between cash flow management and strategy decisions.
There is sufficient evidence to suggest that a number of
organisations do consider cash flow management and
strategy decisions as related and that both have an impact
on the value of the organisation. This project was designed
to validate the notion of an awareness of the links between
these important aspects of corporate decision making. The
scope of the findings has been limited by the number and
content of the material; however further research using case
studies as a primary method of approach is justified. The
evidence presented suggests a logical approach among a
number of companies when seeking to increase their value.
It suggests an increasing awareness of the importance of
cash flow by senior management. As the concept of
network based business structures expands the role of the
NPV of future cash flows generated from strategic and
structural decisions is likely to become the preferred
measure of potential performance criteria.