Part A: (Theory 60%)
1. Introduction:
Evolution of Strategic Management – Nature of Strategic Management _ Strategic Management Process –
Development of Strategic Management within organization.
2. Environmental, Industry and Internal Analysis:
Environmental Analysis – Meaning and purposes. Environmental Structure – General – Operating-
Internal- Industry Analysis – Company Analysis – Financial Analysis – Prediction of financial
Performance. Analysis of micro environment: Industry analysis through five forces of competition;
Concept of driving forces, Strategic Group Maps, Competitor‘s Strategy, Key Success Factors.
3. Strategy Formulation
(i) Establishing Organizational direction: Mission – Objectives – Goal formulation- Process of Establishing
Organizational Directions.
(ii) Formulation of Strategies:
SWOT analysis – Establishing organizational Strategies – Business Strategies – Functional Strategies.
4. Strategy Implementation:
Analyzing strategic change – Analyzing Organizational structure –Analyzing Organizational Culture-
Selecting an implementation approach – Implementing the strategy and evaluating the results. Generic
strategy- Cooperative strategies and Competitive strategies, Merger and Acquisition strategies, Vertical
Integration strategies, Unbundling and outsourcing strategies, Offensive and Defensive strategies.
5. Strategic Control:
Organizational Control and Strategic Control – The process of Strategic Control – Information in Control –
Top management and control – Employee responses to control.
6. Strategic Management and International Operations:
International Business Situation – Strategic Management in the International arena – Strategic Evaluation
and the International Arena.
7. Strategic Management and Social Responsibility:
The Social Responsibility – Influences of the Social Responsibilities of business – Managing the social
Responsibility.
8. Foundations for Strategic Management:
a. Operations foundations: The Operations Function – Operations and Strategic Management
b. Financial foundations: Financial Ratio Analysis – Breakeven Analysis – NPV Analysis.
c. Marketing Foundations: Analyzing consumer – product relationship – selecting a market segmentation
strategy – Designing a marketing Mix Strategy – Implementing and controlling the Marketing strategy.
9. A Framework for Strategic Analysis:
Analyzing Strategic Problems – A Case Analysis framework – Pitfall to avoid – Communication of the
case analysis.
10. Measuring Strategic Performance:
Models of Measuring Strategy Performance, Balanced Scorecard, Assessing and Communicating
Performance Information.
Part B: (Case studies 40%)
To be decided by the course instructor
Books Recommended:
1. Cetro, S.C.& J.P. Peter, Strategic Management: Concepts and Applications
2. Comerford, R.A. and D. W. Callaghan, Strategic Management: Text, Tools and Losses for
Business Policy.
3. Thompson Arthur A, Jr. and Stricland A. J. Jr., Strategic Management Concepts and Cases,
McGraw-Hill International Edition.
4. Hubbard Graham, Strategic Management Thinking-Analysis and Action; Prentice Hall.
AIS - 4203 Working Capital Management
Course Objectives:
i) To impart an in-depth knowledge of management techniques of various elements of working
capital.
ii) To give exposure to determine the optimum level of working capital.
1. Introduction:
Concept of working capital, Types of working capital: Net, Gross, permanent or temporary –
Components of working capital – Importance of working capital – Definition of working capital
management Importance of working capital management – Factors Determining working capital –
Methods of Determining working capital –Dangers of Inadequate or Excessive working capital –
Test of working capital policies – principles of working capital management – Liquidity
preference Theory.
2. Management of Cash and Marketable Securities:
a) Managing Cash Inflows and Outflows: Motives for holding cash and marketable securities – The money market – The Lockbox Location problem – Cash concentration strategies –
Disbursement Management.
b) Cash Forecasting: Need for Forecasting Cash – Types of Cash forecast- Items to be forecast
Methods of Financial forecast- sources of Uncertainties in Cash forecast- Hedging Cash
balance Uncertainties – Hedging via Interest Rate Futures and Options on Futures – Cash
budget.
c) Models for the Management of Cash and Temporary Investments: Determining the
Optimum Cash balance- Baumol‘s EOQ model – Miller – Orr Model – Beranek Model –
Stone Model – management of Cash and Temporary Investments in practice - Marketable
securities: types and Criteria for selecting securities – Effects of Inflation.
3. Receivables Management and Credit Policies:
a) Terms of Sales Decisions: Ground for Granting Credit – Costs, Revenue and Credit Decisions – Terms of Sales Decisions – standard Approach – Assessing Risk in Terms of Sale Decisions.
b) Credit Granting Decisions: Analyzing Credit Capacity of Customers – Information Costs
and Credit Decisions – Credit investigation - Credit Granting Decisions – Credit Analysis –
One-period and multi- period Credit Granting Decisions –uncertainty in Credit Granting
Decisions – Credit Limits.
c) Monitoring Accounts Receivables: Need for Monitoring Receivables –Tools for Monitoring
Accounts Receivables – Investigating payment patterns – The management of Accounts
Receivables: Costs of Monitoring Receivables- Determinants of Size of Receivables – Aging
Receivables – Risk Class Approach – Risk Class in Receivables – Forecasting Receivables–
Collection policy: Factoring – Credit insurance – Evaluation of Changes in Credit policy.
4. Inventory Management:
a) Certainty Approach: Objectives of carrying Inventory - Objectives of Inventory
Management - Determinants of Inventory size – Alternatives to holding Inventory Methods – Recorder point – safety stock -Approach to face uncertainty – Effects of Inflation on
Inventory Management – Role of Financial Manager in Inventory Management- use of EOQ
Model in production planning.
b) Uncertainty Approach: The Static Inventory problem – use of the option pricing model –
Use of NPV and its Coefficient of Variation – VPV with Risk Adjusted Discount Rates -
Monitoring Inventory Balance.
5. Management of Short-Term Liabilities:
a) Introduction: Need for short- term financing – sources of short- term financing –
Calculating the Cost of a source of short- term financing – the sequential Method of
formulating a Structure of Current debts.
b) The Integer Programming Approach to Structuring Current Debts: problems with the
sequential Approach – integer programming and the Structuring of Current liabilities -
integer programming and the Hedging of Cash Stockouts - integer programming and the
Hedging of Cash Stockouts - integer programming and Current liabilities.
6. Estimation of Working Capital:
Working Capital Cycle – determination of the Level of Working Capital Requirement.
7. Financing of Working Capital:
Alternative strategies for Financing Working Capital – Matching Approach – Conservative
Approach – Aggressive Approach – Highly Aggressive Policy- Sources of Working Capital
Finance.
8. Working Capital Management in an International Setting:
Need for International Working Capital - sources of Risks- Hedging Risks- Management of
International Working Capital Accounts – International Cash, Receivables and Inventory
Management Inter- Company funds flow mechanism.