PAPER-5 Strategic Management & Corporate Finance
CS Professional Mod-2
Taught by Faculties:
Syllabus
Objectives:
a To enable students to acquire multidimensional skills as to equip them to comprehend the process of strategy formulation.
b To provide the practical and procedural knowledge on various sources of finance available to corporates at their various stages of journey and the legislative framework for raising such funds. Level of Knowledge : Expert Knowledge Detailed Contents
Part I : Strategic Management (40 Marks)
*Introduction to Strategic Management :
*Basic concepts of corporate strategy and the strategic framework
*Strategic Leadership
*Functions and Importance for Professionals like Company Secretaries
*Board of Directors and Corporate Social Responsibility
*Corporate Governance code and laws
2. Analyzing the External and Internal Environment:
*Overview-Meaning & Process
*Environmental Influences of Business Characteristics and Components of Business Environment
*External Environmental analysis
*Internal Corporate analysis
*Factors of Micro & Macro Environment of Business Competitive Environment
*Porter’s Five Force Model
3. Business Policy and Formulation of Functional Strategy:
*Introduction to Business Policy
*Strategic Decision Model
*Aligning the Vision, Mission
*Objectives and Goals
*Strategic Levels of the Organization
*Formulation of Functional Strategy-Formulation of Financial, Marketing, Production, Human Resource and Logistics strategies
4. Strategic Analysis and Planning:
*Situational Analysis
*Strategic Choices-SWOT and TOWS Analysis
*PERT (Programme Evaluation Review Technique) and CPM (Critical Path Method), Portfolio analysis-Boston Consulting Group (BCG) growth-share Matrix, Ansoff’s Product Growth Matrix, ADL Matrix and General Electric (GE) Model
*Strategic Planning l Strategic Alternatives - Glueck and Jauch and Michael Porter’s Generic Strategies
5. Competitive Positioning :
*Business level competitive strategies
*Cost leadership strategy
*Differentiation strategy
*Issues in Strategy Implementation
*Strategic enablers, Strategic risk and related issues
*Strategic Leadership and its forms l Establish a strategic mind-set to diagnose problems and make recommendations
*E-Business and Strategy
6. Managing the Multi-Business firm and Analyzing Strategic Edge
Case Studies from the Indian context to establish a strategic mindset to diagnose problems and make recommendation Part II : Corporate Finance (60 Marks)
7. Sources of Corporate Funding:
*Equity Shares
*Preference Shares,
*Venture Capital
*Alternative Investment Funds,
*Angel Funds l Debentures
*Bonds
*Loan from financial institutions
*Foreign Funding
*Foreign Direct Investment (FDI) & Foreign Institutional Investment (FII)
*External Commercial Borrowings (ECB) l Private Equity
*Securitization
8. Raising of Funds from Equity and Procedural aspects:
(a) Public Funding l Initial Public Offer (IPO)
*Further Public Offer (FPO)
*Preferential Allotment
*Private Placement
*Qualified Institutional Placement
*Institutional Private Placement
*Offer for Sale
*Rights Issue
*Fast Track Issue
*Green Shoe Option
(b) Sources of Funds for Mega projects
*Real Estate Investment Trust (REIT)
*Infrastructure Investment Trust (InvIT)
(c) Private funding
*Venture Capital
*Alternative Investment Fund
*Angel Funds
*Seed Funding
*Private Equity
(d) Non Fund based
*Bonus issue
*Sweat Equity
*ESO
(e) An overview on Listing and Issuance of Securities in International Financial Services Centre
9. Raising of Funds from Debt and Procedural aspects:
(a) Indian Fund Based
*Debentures
*Non-Convertible Securities
*Public Deposits
*Bonds
*Bank Finance
*Promoter Funding
*Working Capital Finance – Overdrafts
*Cash Credits Bill Discounting
*Factoring
*NBFCs Funding
(b) Indian Non Fund Based
*Letter of Credit
*Bank Guarantee
*Stand by Letter of Credit etc.
10. Foreign Funding–Institutions:
*International Finance Corporation (IFC)
*Asian Development Bank (ADB)
*International Monetary Fund (IMF)
*World Ban
11. Foreign Funding–Instruments, laws and Procedures:
*Investment Advisor l Merchant Banker
*Portfolio Manager and Role of Company Secretary
13. Project Evaluation:
*Factors affecting the cost of project
*Project appraisal through feasibility and Due Diligence (Technical, Financial, and Legal)
*Project viability and research on innovation
*Regulatory Authorities/ agencies
*Risk Assessment and mitigation
*Credit Risk Management in Project Finance, Preparation of detailed project report
