Strategic Financial Management

Paper Code: 
MFM 323
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Outcomes

Learning and teaching strategies

Assessment Strategies

 
 

On completion of this course, the students will be able to;

CO 120. Practice strategic management to evaluate the role finance plays in strategic decision making.

CO 121. Develop an understanding of approaches of corporate valuation.

CO 122.: Understanding the various methods and process of value based management.

CO 123:  Perform a valuation on the basis of financial statement information.

CO 124. Demonstrate the concept of Financial restructuring.

CO 125.  Create awareness about the contemporary issues in strategic financial management

 

Approach in teaching:

Interactive Hours using whiteboards, Questioning & Discussion, Reading assignments, Frequent or unannounced quizzes.

 

Learning activities for the students:

Self-learning assignments, Effective questions,  presentation, Solving problems of unsolved questions

 

Class test, Semester end examinations, Quiz,  Assignments, Class interaction

 

 

12.00
Unit I: 
Unit-1

Introduction to Strategic Financial Management – Meaning,  Characteristics, Scope, Importance ,Success factors and constraints to Strategic Financial management;  Strategic Planning Process , components ; Financial Planning:  Process  and  Types of Financial Plan.

12.00
Unit II: 
Unit-II

Corporate Valuation- Concept of Value, Objectives, Approaches of Corporate Valuation: Asset approach to valuation, Stock and debt approach, direct comparison approach and discounted cash flow approach. Guidelines for corporate valuation.

 

12.00
Unit III: 
Unit-III

Value Based Management- Meaning , elements, significance, Approaches to value based management- Marakon Approach, Alcar Approach, McKinsey Approach and Stern Stewart Approach. Applications of Value based management, Methods and Process of Value based Management.

12.00
Unit IV: 
Unit-IV

Expansion and Financial Restructuring – Corporate Restructuring : Needs and Benefits; Mergers and Amalgamations : reasons, Merits and Demerits of Merger; Takeovers ; Business Alliances :Meaning and Types; Demergers: Concept and Types.

 

12.00
Unit V: 
Unit-V

Contemporary Issues in Strategic Financial Management- Issues & Challenges in Strategic Financial Management, Financial Management in Sick Units, Sick Industrial Companies Act: Meaning and Causes, Financial Management in Public Sector Companies: Features. 

Essential Readings: 
  • R. Sofat and P. Hero, Strategic Financial management. PHI
  • Chandra, P., Financial Management. Tata McGraw Hill Education Private Limited.
  • Kothari, R., Dutta,Bobby., Contemporary Financial Management, MACMILLAN
  • Young, S. and O’Byrne, S. (2000).EVA and Value-based management: A practical guide to implementation. New Delhi: Tata McGraw-Hill.

 

References: 

Suggested Reading

  • Sekhar, G.V., Strategic Financial management, Himalaya Publication House.
  • Saravanan, P., Fugavanam, J. and Jaya Prakash, B., Strategic Financial management, OXFORD Higer Education.
  • Kishore, M., Strategic Financial management, TAXMANN

        E- resources:

 

Journals:

 

Academic Year: 
2022-2023
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