Patent Document ID: 7925557
Application ID: 10802861
Patent Flag: 1

Claim One:
1. An electronic network system configured to generate cost reduction strategies for a target company, the network system comprising: a computer that is configured to execute: a cost lever analysis tool that (1) receives financial data inputs regarding the target company, (2) calculates normalized diagnostic information regarding the cost structure of the target company based on the financial data inputs and a β value of the target company, (3) displays the normalized diagnostic information, (4) receives cost levers based on the normalized diagnostic information, and (5) transmits the cost levers; a cost reduction strategy tool that receives the cost levers, the strategy tool including: a generation module that generates a cost reduction strategy for one or more of the cost levers; a linking module-that correlates the cost reduction strategy with corresponding ones of the cost levers; an implementation module that generates implementation information related to implementing the cost reduction strategy; and an output module that outputs the cost reduction strategy and the implementation information, and wherein the β value of the target company is determined by (1) identifying comparable businesses that operate in the same field as the target company, (2) determining the β values of the comparable businesses, (3) averaging the β values of the comparable businesses to determine an unlevered β value, (4) estimating an effect of the financing structure of the target company using the unlevered β value, and (5) determining a relevered β value for the target company by adding in the effect of the financing structure.