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Strategic Performance Management and Business Valuation (Paper-20) CMA Final Group 4

Taught by Faculties:

Syllabus

SECTION A: STRATEGIC PERFORMANCE MANAGEMENT [50 MARKS]
1. Conceptual Framework of Performance Management
(a) Performance Management- concept, components
(b) Performance, Productivity and Efficiency
(c) Financial Performance Analysis
(d) Supply Chain Management (SCM)
(e) Customer Relationship Management (CRM) & Customer Profitability analysis;

2. Performance Evaluation & Improvement Tools
(a) Balanced Score Card
(b) Du-Pont Analysis
(c) Bench marking & Bench trending
(d) Six Sigma
(e) Statistical Quality Control (SQC)
(f) Plan- Do- Check- Action (PDCA)
(g) Management Information System
(h) Online Analytical Processing Tools
(i) Tools to Improve Productivity and Profitability – MRP I, MRP II and ERP
(j) Total Productivity Management
(k) Total Quality Management

3. Economic Efficiency of the firm – Performance Analysis
(a) Profit-maximization under different market structure
(b) Market factors affecting Pricing decisions

4. Enterprise Risk Management
(a) Risk Management
(i) Risk Management – Introduction and objectives
(ii) Risk Measurement - Pooling, Diversification, Total Loss Distribution, Ruin Probability
(iii) Risk Analysis – Risk Mapping and Risk indicators
(b) Corporate Risk Management
(i) Enterprise Risk Management
(ii) Risk Retention or Reduction
(iii) Value at Risk (VAR)
(iv) Introduction to Capital Adequacy Norms in Banking Industry
(c) Corporate Failure
(i) Corporate Distress Analysis-Causes
(ii) Corporate Distress Prediction Models: Edward Altmans Model, NCAER Models

SECTION B: BUSINESS VALUATION [50 MARKS]
5. Business Valuation Basics
(a) Meaning of Value, Valuation and Business Valuation
(b) Principles of Valuation, Valuation Bias, Types of Values
(c) Role of Business Valuation in Corporate Finance and Business Acquisitions

6. Valuation Models
(a) Non-Discounted Cash Flow Method – Accounting based, Earnings based, Cash flow based.
(b) Discounted Cash Flow Method
(c) Other methods of valuation

7. Valuation of Assets and Liabilities
(a) Valuation of Inventory
(b) Valuation of Investments – Bonds and Shares
(c) Valuation of Intangibles – Copy Rights, Goodwill, Brand
(d) Valuation of Human Resources
(e) Value Added, Economic Value Added, Market Value Added
(f) Valuation of Liabilities

8. Valuation in Mergers and Acquisitions
(a) Meaning of Business Mergers and acquisitions and Types
(b) Application of valuation models for business mergers and acquisitions
(c) Determination of Exchange Ratio(Swap)or Purchase Consideration
(d) Synergistic benefits and distribution of synergy gains
(e) Recognition of Interest of various stakeholders
(f) Selection of appropriate cost of capital for valuation
(g) Impact of merger on value of share