Firm as a Bundle of Core Competencies: A Valuation Approach Using the Dresdner Reference Model
Strategy analysis together with financial planning account for the inevitable parts of any income based equity valuation analysis. By using generic discounted cash flow models, an analyst has to cope with identifying the principal factors driving and sustaining the firm's competitiveness. By knowing and staying focused on their core competencies companies have the only real chance for existence and value creation. In the following analysis, the authors identify the success factors of medium-sized industrial companies located in the region of Dresden, Germany and draw implications for correctly applying the well established discounted cash flows models.