Dr Muzammal Ilyas Sindhu

Department of Management Studies

Bahria • •Islamabad
University,
 SEQUENCE

• Introduction
• Course Contents
• Project
• Background.
• Strategic Management
• Financial Management
• Stock Market •2
• Introduction to Strategic Management
• Introduction to Financial Management
• Basic Concepts of Finance
• Strategic Financial Management
• Portfolio Tools
• Capital Asset Pricing Model (CAPM)
• Arbitrage pricing theory and Factor models
• Risk and uncertainty
• Financial Analysis
• Financial Planning
• Financial Models
• Corporate Valuation
• Control, Governance and Financial Architecture
• Corporate Restructuring
• Merger
• Acquisition
• Buy back of shares
• Leverage Buy-outs
• Demergers
• Financial distress and restructuring
• Final Research Project Presentation
• Final Research Project

• Research Paper
• Introduction
• Literature Review
• Framework
• Methodology
• Empirical Findings
• Discussion and Conclusion
• References
• Appendix
• Present Scenario and Challenges:
• Competitive environment leads toward sustaining and striving
• Complicated and complex situations

• Expectations are rising

• Investors becoming more aware and opportunistic

• Uncertainties leads toward economic recession

• So, companies safeguard themselves from threats and cash

potential opportunities.
• Questions asked during planning and facing business
situation

• Management applies many techniques, methods, frameworks, or

approaches to tackle issues/problems based on research and expertise.
• *What makes a firm successful or failure?
• Internal/external environment, devising finest future course of action and
its implementation. Finally effective decision making leads toward key to
success.
 Strategic Management

• Strategic Management
• “It is a set of managerial decisions and actions that determine
the long run performance of an organization.”
• “It includes Environmental scanning, strategy formulation,
implementation, evaluation and control.”

• Furthermore few characteristics which includes;

• SM is futuristic and foresight approach
• Beginning with the end in mind
• Management navigates the company to its potential success.
• It is dynamic and proactive approach rather than reactive.
• Optimistic resource utilization and consistent modernization.
• Previous characteristics which highlighted the strategy as core
concept of SM.

• Strategy
• “The determination of the basic long term goals and objectives
of an enterprise and the adoption of the courses of action and
the allocation of resources necessary for carrying out theses
goals.”
• “A company strategy consists of a combination of competitive
moves and business approaches that managers employ to please
customers, compete successfully, and achieve organizational
objectives.”
Corporate
office,
strategic
business
units,
and
different
departments
• Critical success factors
• Strategic advantage
• Competitive advantage and strategy
• Corporate restructuring
• Techniques for environmental scanning
• Industry analysis (Cost, differentiation, focus)
• SWOT Analysis
• QUEST Technique (Quick Environmental Scanning technique)
• PEST Analysis
• ETOP Technique
• Corporate portfolio analysis
• “Financial management is that managerial activity which is
concerned with the planning and controlling of the firm’s
financial resources.”

• Furthermore few characteristics which includes;

• Management of financial resources.
• Financing, investing and asset management .
• Resources are utilized with constraints.
• Provides sense of financial security and safety.
• “Finance function relates to providing and making available
funds whenever the need arises.”

• Decisions:
• Investment decisions
• Financing decisions
• Liquidity decisions
• Dividend decisions
Traditional Approach Contemporary Approach

• The scope of finance was • The approaches includes

confined to only both sourcing of funds and
procurement of funds. their effective utilization. It
is further encompasses
Limitations: financial planning and
• Ignores internal decision making
control.
about fund use. Contributions:
• Focus only on procurement. • This approach is more acceptable
• Ignores only efficient allocation because it focus on four main
of resources. categories of decisions.
• Ignores time value of money.
The scope of FM extents to following activities
• Estimation of financial needs
• Optimization based capital structure

• Financing and investing

• Optimal cash management

• Implementing financial control

• Reserves and surplus utilization

• Optimizing value of the firm etc.

• Share: Certificate indicating right of ownership
• Channels of trading
• Primary: New shares - Over the counter exchanges (OTC)
• Secondary: Existing shares – Pakistan Stock Exchange (PSX),
NYSE, BSE, Nasdaq,
• Pricings of shares
• Good returns to maintain/rise share prices.
• Dividend distribution
• How to identify shares offering good returns
Thank You

FINANCIAL RISK MANAGEMENT •21