The CIRE model takes account of the conflict between cash and profit, which has been the dilemma for the past few decades. The central concept is that companies should balance their profitability and cash liquidity as both are important to maximize the shareholders' value, which is the ultimate target for any business.

1. The CIRE Model©
Dr. Basel Omar Abu-Ali
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2. The big picture
• The CIRE model takes account of the conflict between cash and profit, which has been the dilemma for the
past few decades. The central concept is that companies should balance their profitability and cash liquidity as
both are important to maximize the shareholders' value, which is the ultimate target for any business.
• Besides, the CIRE model is a strategic tool that helps to identify, assess and decide the priorities for ongoing
businesses and companies, which can be at different types, levels, or industries.
• The grid comprises four dimensions: Cash, Profitability, Expenditures, and Financing. Business
performance is assessed based on these four dimensions, and each is then classified into one of four different
decision categories: Celebrate, Investigate, Replace, or Exit.
• Figure 1 presents the CIRE model dimensions and decision categories.
• The model's basic premise is to direct the owners and shareholders to the best decision based on the four
categories.

3. Figure 1: The CIRE model dimensions and decision categories
Figure 1. The CIRE Model©

4. Further Details
• Further details can be requested directly by email: basel_abuali@hotmail.com