COURSE BASICS

Course Code BAAC7253-F23

Credit Hours 3
Lectures [No. of Lec(s) Per 2 Duration 3 Hours
Week]
Lab Sessions None Duration N/A

Corporate Financial Strategy

COURSE DISTRIBUTION
Program(s) Attached To MBA
Core / Elective Elective
Course Pre-requisites Financial Management or equivalent knowledge at undergraduate level

COURSE DESCRIPTION
This course creates linkage between financial theory and policy and corporate strategy; the role of financial managers in
developing corporate strategy; applications of concepts and techniques using cases. This course is all about value: what it is,
how it is measured, and how to maximize it and how to create it. The perspective is that of a CFO of a large modern
corporation. While its focus is primarily on corporate finance, it will also examine the links between finance and the main
strategic objectives of the firm. The identification of these linkages and the constraints they impose on financial decisions
makers is an important part of the course. The course is designed to develop skills required in efficient working of financial
manager.

COURSE OBJECTIVES
Gain understanding of how an appropriate financial strategy can be designed to complement the corporate
CO1:
strategy and add value to an organization.
CO2: Equip themselves with the knowledge that how the financial theories can be applied in real world.
CO3: Explore the best option of financing and limitations of debt and equity financing

Learn that how to demonstrate fundamental issues relevant to the dividend policies and investment
CO4:
opportunities
Enrich their knowledge that how to articulate financial concepts with detailed analysis of corporate
CO5:
valuation

COURSE LEARNING OUTCOMES

CLO1: Give an overview of financial strategy and its role within the overall corporate strategy of the business.
Demonstrate that keeping in mind the context of shareholder value what the share price tells us about the
CLO2:
market’s expectations of the business and how this can affect both corporate and financial strategies.
 Model how these expectations and the financial drivers change over the lifecycle of the company, and
CLO3:
demonstrate what this means for a company’s financial choices.
Illustrate how and why governance requirements of the business change as it develops through different
CLO4:
stages of ownership.
Explain in detail that which components of financial strategies are appropriate to the each stage of
CLO5:
company’ development.
Portray that looking at the changing sources of the business risk how company’ strategy will adapt to its
CLO6:
changing circumstances.
CLO7: Explain how dividend policies and funding sources match the organization’s needs.
CLO8: Demonstrate that choice of financial instruments is fundamental to designing a financial strategy.

MBA PROGRAM OBJECTIVES

PO1: Introduce the contemporary knowledge base and best practices with a futuristic outlook.

PO2: Instill curiosity and sharp analytical capabilities for problem-solving among students.

PO3: Train the students to identify and analyze emerging trends in the local and global business environment.

Offer opportunities to the students to refine and present their innovativeness and make it part of their
PO4:
managerial repertoire.

Ensure that the curriculum is aligned with the contemporary needs of the industry and serve as an
PO5:
instrument to bridge the gap between academia and industry.

MBA PROGRAM LEARNING OUTCOMES

PLO1: Integrating business knowledge and management techniques to effectively manage and eventually spearhead
growth-oriented organizations and businesses.
PLO2:
Apply critical and analytical skills to support management decision making.

PLO3: Conceive out-of-box ideas and present their ingenuity to execute in unconventional ways when necessary in
local and global environment.
PLO4: Demonstrate their effective communication skills.

PLO5: Build effective teams with result-oriented group dynamics and general leadership traits that
facilitate industry-academia linkages.
Map if course objectives or outcomes specifically relate to any program objectives (along with corresponding assessment item):

COURSE LEARNING COURSE ASSESSMENT

PROGRAM OBJECTIVES COURSE OBJECTIVE
OUTCOMES ITEM
Quiz, Assignment, Class
1 1,2,3,5 2,5,6
participation, exams
Quiz, Assignment, Class
2 2,3,4 1,2,3,4,5
participation, exams
Quiz, Assignment, Class
3 2,3,4,5 4,5,6
participation, exams
Quiz, Assignment, Class
4 3,4,5 2,3,4,6,8
participation, exams
Quiz, Assignment, Class
5 2,4,5 3,4,5,6
participation, exams

PRPGRAM DELIVERY METHOD

Method Application
Case Studies
Business games and Role Play
Film and Video clips
Journal Article Reviews
Project based learning
Other

ASSESSMENT STRUCTURE
Assessment Items Percentage
Quiz(s) 10%
Assignments/Papers/Cases 10%
Class Participation 05%
Midterm Examination 25%
Final Examination 40%
Project/Presentation 10%
Other(s)

Any specific teaching/learning strategies:

COURSE CONTENT AND DELIVERY PLAN
Application (Course Application (Course
Sr. Learning Outcomes objective achieved Assessment Item
Topics
No. achieved through this through this topic) (Used for this topic)
topic)
Introduction to Corporate Financial CLO1 CO1, CO2 Assignment
Strategy, Shareholder value creation
1
and management, Prevalence of
shareholders
Information reflected by share price, CLO2 CO1, CO2 Quiz
2 calculation and explanation of price
earnings ratio
Decisions in financial strategy, CLO2 CO1, CO2 Quiz, Class
Dividend strategy, Business and participation
3 financial risk matrix and its
integration with debt and equity and
price earning ratio
Business risk and cash flows over life CLO3 CO1. CO2 Assignment
4
cycle of company
Corporate Governance, regulatory CLO4 CO1, CO2 Assignment
5
bodies, role of stakeholders
Startup business and venture capital, CLO5 CO2 Quiz, Assignment
6 types of companies on the basis of
stocks
Startup business and venture capital, CLO5 CO2 Quiz, Assignment
7 types of companies on the basis of
stocks
Growth company and its valuation CLO5 CO5 Quiz, Assignment
8
Mergers and Acquisition-valuation
9 Matured company and its valuation CLO5 CO5 Quiz, Assignment
10 Matured company and its valuation CLO5 CO5 Quiz, Assignment
Introduction, building blocks and CLO6, CLO8 CO3 Assignment
11
importance of Financial instruments
12 Detailed types of financial instruments CLO7 CO3 Assignment, Quiz
13 Detailed types of financial instruments CLO7 CO3 Assignment, Quiz
Dividends, types of dividends and CLO7 CO4 Quiz
14
buyback options
15 Process of going public and floatation CLO7 CO4 Assignment

LEARNING RESOURCES
Text Book:
 Corporate Financial Strategy by Ruth Bender, 4thEdition, Published by Routledge

Reference Book:
 Fundamentals of Corporate Finance, 8th Edition, Ross, Westerfield& Jordon
 Financial Management, Theory and Practices, Brigham &Ehrhard
  Principles of Corporate Finance, Latest Edition, Brealey, Myers & Allen
 Financial Management and Policy, James C. Van Horne & Sanjay Dhamija, latest edition, Prentice Hall

Web Resources:
 http://wps.pearsoned.co.uk/ema_uk_he_wachowicz_fundfinman_12/26/6678/1709602.cw/index.html

This is the web site for student resources of Textbook

 http://www.sbp.gov.pk

State Bank of Pakistan

 http://www.brecorder.com

Business Recorder
 http://www.investopedia.com

Investopedia
 http://www.secp.gov.pk

Security Exchange Commission of Pakistan

 http://www.paksearch.com

Web site for Annual Reports of different Pakistani Companies

 http://www.pse.com.pk

Pakistan Stock Exchange

 http://www.mufap.com.pk

Mutual Fund Association of Pakistan.

Study Material (Case Study, Article, Journal etc)