Must finance and strategy clash?

When correctly applied, good financial analysis complements, rather than contradicts, marketing analysis. The analysis, however, usually falls short in practice. That is why a strategic investment's projected returns are so often out of line with the marketing and strategic logic. Good project evaluation considers all the relevant factors and takes into account the more neglected consequences of not investing. Finance theory assumes that a project will be evaluated against its base case, which must be realistic or the incremental cash flows will be misleading. The project's boundaries should be defined, and an appropriate time horizon should be selected. Options should be analyzed, and subprojects should be recognized and separated. Fashion Bathrooms, a cast-iron bathtub manufacturer, found that detail matters in marketing and operations. Good investments come from an in-depth understanding of the market and the firm's operating and competitive capabilities.