MBA Finance. Paper 1 - Professional Management

Transcription

1 MBA Finance Paper 1 - Professional Management 1 Management 1 definitions & nature and scope of management 2 functions & principles and process of management 3 evolution of management thought from 4 Taylor, Fayol, Drucker to the present 5 Growth of professional management in India 6 Ethics in management 2 Managerial Planning & Decision Making 1 planning process,types of plans, 'strategic vs. operational plans 2 models of strategy formulation 3 linking strategy to structure 4 Managerial decision-making process and models 5 steps in rational decision-making 6 creativity and group decision-making 3 Organizations 1 organizational theories and design 2 various forms of organization structures 3 span of management 4 principles of coordination 5 authority 6 power, delegation and decentralization 4 Managerial Control 1 relationship between planning and controllimitations of control 2 types of control systems and techniques 3 management by exception 4 budgetary control 5 functional and dysfunctional aspects of budgetary control 6 Internal control systems,internal audit and management audit & limitations of control

2 Paper 2-Managerial Accounting 1 Introduction to Accounting 1 Meaning 2 Accounting concepts and conventions 3 Financial Accounting V/s Management Accounting Recording, classifying and summarizing business 4 transactions 5 leading to preparation of final 6 accounts of sole proprietary businesses 2 Company Final Accounts in India 1 requirements of Companies Act of 1956 with respect to preparation of Final Accounts of 2 Companies 3 Annual Reports 4 and its contents 3 Financial statement Analysis 1 techniques of financial statement analysis 2 Horizontal analysis 3 Vertical analysis,ratio Analysis,Trend Analysis 4 Profitability, Liquidity, Solvency and Capital market ratios 5 Analysis of Income Statement 6 Balance Sheet 7 Cash Flow Statement 8 Ratios and Projections using Excel 4 Cost accounting 1 Elements of Costs 2 Classification of costs 3 Preparation of Cost Sheet 4 Cost accounting systems 5 Marginal costing and use of break-even

3 6 7 8 analysis in decision- making Re1evant costs for marketing and production decisions Cost Drivers and Activity Based Costing Paper III-Managerial Economics Managerial Economics: introduction Basic concepts and their application in business decisional making. Demand and Supply Analysis determinants of supply and demand nature of demand and supply curves market equilibrium price elasticity demand forecasting and estimating methods consumer preferences indifference curves budget constraint, utility maximization and the derivation of the consumer demand curve Concepts of GDP Nl, per capita income, PPP National income accounting in India Business cycles and business forecasting Production and Cost Analysis production functions-cost functions Profit functions, total, average and marginal costs returns to factor and scale short run v/s long run decisions derivation. of the supply curve Market Analysis: market forms perfect competition, monopoly

4 monopolistic, oligopoly Output and price determination Cartels and collusion mergers and acquisitions and government regulations in the form of price directives, taxes, subsidies, anti-trust action and competition polices. Paper IV -Quantitative Techniques 1 Quantitative data Interpretation in managerial decision making collection classification 1 tabulation frequency distribution 2 charts using excel 3 measures of central tendencies and dispersion - using MS excel 2 Correlation and regression 1 multiple correlation 2 basic probability concepts 3 conditional probability 4 Bayes theorem use MS excel 3 Probability distributions 1 binominal Poisson and normal distributions using excel 2 estimation point and interval- using Excel 3 Sampling techniques 4 Hypothesis testing 1 for means and proportions and for difference of means and proportions

5 2 analysis of variance. 3 Chi-square tests Paper V - Business Environment 1 Systems approach to business 1 business as a social system 2 direct action and indirect action environment of business 3 internal and external stake holders 4 Managing the impact of environmentalism 5 sustainable development 6 corporate governance issues 7 corporate. social responsibility 8 ethics in management 2 Indian Economy 1 transition from mixed economy to a market economy 2 govt ownership vs regulation of business 3 outlines of Public and Private sectors 4 Characteristics of industrial 5 service and agricultural sectors 6 Regional and sectoral imbalances 7 Trends in GDP 3 Indian Society Culture and Politics

6 1 2 social problems of India 3 Impact of modernization on Indian society 4 demography, gender, environmental issues 4 Global Business Environment 1 India as an emerging market 2 MNCs in India 3 FDI & FlI s in India Paper VI - Managerial Communication 1 Business Communication-Concept 1 Attributes, Objectives, Functions 2 Elements Of Communication 3 The Communication Process/Cycle 4 Importance Of Feedback 5 Communication Barriers Physical 6 Cultural, System Design, Attitudinal 7 Listening, Speaking And Non-Verbal barriers 8 Non-Verbal Communication 9 Importance, Types, Elements of Active Listening 10 Guidelines to Improve Listening 11 Behavior for Different Situations 12 The Listening Process 2 Essentials For An Effective Business Meeting 1 Conducting Effective Business Meetings 2 Creating More Value For Business Meetings 3 Speaking And Presentation Skills

7 Presentation Guidelines Designing Presentation Visuals Elements Of An Effective Speech Overcoming the Fear of Speaking To Groups 3 Rules for Effective Writing, Grammatical Errors & How to Fix Them 1 Writing an Effective Proposal 2 Guidelines For Editing And Revising Proposals 3 Business Letter Writing 4 Use Of , Problems With E Mail, Composing Clear 5 Concise & Responsive s 6 Clarifications On Writing Messages 4 Types of Interview 1 Candidate s Preparation For Interview 2 Tips For A Winning 3 Interview, Typical Interview Questions 4 Interviewer Preparation 5 Employment Communication Paper I - People Management SEM II 1 Perspectives in HRM: 1 Role of HR managers, sub-systems of HRM, HR functions and policies Organization for HRM, Development of HRM in India Recent trends in HRM, Impact of globalization on HRM. Strategic HRM, Global HRM HR Planning,: Scope of HR planning, Job analysis, job design Job description and job evaluation Recruitment and Selection Methods of recruitment. Testing for selection of Employees 5 Use of psychological test, selection process, interviews, and errors in selection. V Training and Development

8 Induction and Orientation, methods of Training Training _ manual, Training under ISO and QS Certification. Evaluation of : Training Supervisory, Executive and Management development programmes. Career development. Performance Management: KRA and KPAs, Traditional vs Modern methods of Performance Management Potential Appraisal, Feedback systems. Job evaluation 3 Compensation Planning: 1 Wages and salary, Administration perks 2 Fringe benefits, Bonus, Incentives. Compensation surveys 3 Productivity and Performance linked Pay structure. Compensation review and structuring 4 Employee Relations: Evolution of Unions, Structure and management of Unions 4 Industrial Conflicts & Collectice Bargaining 1 Grievances, Industrial conflicts, Disputes, Machineries to resolve the disputes 2 A Brief on Collective bargaining 3 4 Work place Discipline, Acts of Misconducts Mandatory Disciplinary procedure before inflicting punishment Domestic Enquiries, Principles of natural Justice Paper II -Marketing Management Introduction to Marketing Management: nature of marketing management Types of products / services Marketing concepts: Product Production, Selling, Marketing and Societal Concepts Marketing environment elements of Marketing Mix. Classification of goods & services Market Segmentation and Targeting concept of segmentation and targeting basis for segmentation Segmentation for consumer and industrial products Product positioning Product & Price: product Mix and Product Line

9 levels of product new product development product life cycle strategies Branding, types of brands, brand building measuring brand equity Packaging and labeling. Pricing: General pricing approaches new product pricing strategies Public policy and pricing Promotion and Place Mix: elements of promotion mix Marketing communication process communication process, Publicity, Advertising and public relations Personal selling and sales promotion Direct marketing and online marketing Distribution channels logistics management, Channel design and administration Paper III-Financial Management 1 Goal of the Firm 1 Profit maximization vs. Wealth maximization 2 Value creation, Agency problems, Social responsibility 3 Role of financial management 4 Time value of money, Valuation of securities 5 Concept of risk and returns of securities 2 Capital Budgeting 1 intermediate and terminal cash flows on incremental basis 2 Capital budgeting decision rules 3 Payback, ARR, NPV, IRR, and PI using Excel 3 Cost of Capital and Capital Structure 1 Cost of Capital (cost of debt 2 preferred stock, and equity) Computing WACC 3 The CAPM approach 4 Adjusting WACC for risk 5 Capital Structure Theories

10 6 7 Concept of Financial leverage- EBIT- EPS analysis Dividend decisions 4 Working Capital Management and Finance 1 Cash management 2 Receivables management and `Inventory management 3 Estimation of Working 4 Capital requirements - Working capital finance in India Paper IV - Business Research Methodology Scientific methods induction, deduction, theory, concepts, constructs definitions, variables, models, laws, hypothesis, syllogism, levels of abstraction Fallacies of reasoning The nature of research in Management Exercises in writing a research proposal Principles of research design types of basic research methods secondary research methods sampling design, measurement and measurement scales Data collection methods observational studies, experimentation Qualitative methods of research Survey Basic concepts in survey research Methods of communication with respondents Questionnaire, Interview, etc Observation method, Experimental research Measurement and scaling concepts Attitude measurement Principles of questionnaire design Sampling and Field Work Sample design and sample procedures Determination of sample size - a review of statistical theory Field work

11 Paper V -Management Information Systems Information Systems data vs Information Strategic role of information in management Organization as an information system TPS, MIS, DSS, ESS, OAS Systems Development the concept of systems development life cycle (SDLC) Types of SDLC Use of flow charts Networking concepts telecommunications networks Application Technologies ERP concepts, Evolution of ERP, ERP packages SAP, Baan, MPG-PRO, Oracle, ERP Evaluation, ERP and BPR, ERP Implementation, Extended I ERP, Case studies Web Publishing Types of websites Web surfing Ecommerce, B2B, B2C, U2C E-commerce security issues, Ethical issues Ppaer VI - Operations Management 1 Operations Management 1 product strategies 2 Product life cycle 3 Productive system types Impact of technology and organization of the operations functions

12 4 5 Requirements of forecasting for operations 2 Plant Location and Types of Plant Layout 1 product planning and control 2 Inventory planning and control 3 Materials requirements planning 4 Materials requirements planning 3 Job Designing 1 work study and time study 2 Statistical quality control methods 3 Japanese manufacturing systems 4 Flexible manufacturing system 5 Operations systems of the future 4 Total Quality Management 1 trends in quality management 2 benchmarking and business process reengineering 3 Kaizen Six Sigma Motorola systems 4 Quality criteria based on Deming prize 5 Malcolm Baldrige Award 6 Quality Management Systems, ISO Standards

13 SEM III SEMESTER III-Specialisation In Finance Paper I - Legal Environment of Business Company Law provisions of Indian Companies Act 1956 relating to incorporation, management and administration. Filing of returns, Remedies against mismanagement and oppression. Powers of investigation by the Government, Issues relating to good corporate governance. Intellectual property rights Patents and Trademarks Act copy rights act geographical appellation Security Market Laws Security and Exchange Board of India Act (SEBI) Securities contract act Laws pertaining to stock exchanges SARFESI Act Industrial licensing FDI guidelines consumer protection act Information Technology Act Paper II- Project Management Project Management concepts & key terms, evolution of integratedproject management system aligning projects with organization strategy, effective,project portfolio management system Feasibilities of projects different forms of project contracting Project life

14 Cycle Bock Project Scope Management Defining project scope creating work breakdown structure (WBS), project roll up process break down structure responsibility matrix Project Scheduling Network models PERT & CPM using software measuring risk. contingency planning scheduling resources, reducing project duration Project Team Management Building high-performance project teams project control process. Performance measurement managing virtual project teams and evaluation, project quality, planning, quality assurance, quality audit project closure, post completion audit SEMESTER III-Specialisation In Finance Paper III - Advanced Finance (Investment Decisions) 1 : Cash Flow Measurement : Dependence and independence of cash flows in evaluating projects, Measures of risk and returns, Inflation in capital budgeting, Real vs. nominal discount rates, Bias in cash flow estimates, Total risk for multiple investment. Use of Excel in estimating cash flows. 2 : Ranking Projects : NPV vs IRR Conflicts, Fisher s rate of intersection,multiple IRRs, MIRR, Optimal decision under capital rationing

15 3 : Real Options and Risk analysis in Capital Investment : Real options meaning- ypes of options Expansion, Abandonment and Postponement - Project Risk Analysis: techniques for measuring stand alone risk Sensitivity analysis, Scenario analysis and Simulation. 4 : Financing Decisions Sources of long-term finances. Leasing Types ofleases, structuring of lease rentals and evaluation of lease. Elective 2: FM 2 Advanced Finance (Capital Structure Theories) Paper IV- Advanced Finance (Capital Structure Decisions) 1 : Empirical Perspectives on the Financial Characteristics Analysis ofcomposite cash flows, Leverage, Ownership structures, ROE, P/E ratios, Dividend payout, Dividend yields, and other financial characteristics of Sensex and Nifty firms. 2 : Principal Agent Conflict : Principal agent conflict and financial policies,information asymmetry and agency theory - theories of the effects of information asymmetry,, Valuation of traded equity under asymmetric information, information asymmetry, Agency theory, agency theory and finance. 3 : Leverage Decision, valuation and financial decision : Value of the firm,a synthesis of the MM model and CAPM, Agency cost equilibrium theory of optimal capital structure. 4 : Industry analysis and financial policies and strategies : Firm s environment governance, strategy, operations and financial strategies

16 Paper V -Advanced Finance-Portfolio Management 1 : Market efficiency : Random walk and the efficient market hypothesis,empirical testing of Efficient Market Hypothesis (EMH).Mean-variance portfolio theory, capital asset pricing model and arbitrage pricing theory. 2 : Fixed Income Securities : Bond Characteristics and Types, Bond Pricing,Bond yield, Term Structure of Interest rate, interest rate sensitivity, duration, convexity and immunization. 3 : Fundamental Analysis and Technical Analysis : Economic analysis,industry analysis, Company analysis, Forecasting company earnings, valuation of companies. Market- indicators, Types of charts, Dow Theory, Relative strength, Contrary opinion, Moving average, Conference index, 4 : Mutual Funds in India : Concept, types, valuation of mutual funds,performance evaluation M2 and TL market timing, performance attribution procedures, style analysis and morning star s, risk adjusted rating. Paper VI -Strategic Financial Management 1 : Mergers and Acquisitions : basic forms of acquisitions, tax forms of acquisition, Accounting, Synergy from an acquisitions, and sources of synergy, calculating value of firm after acquisition, cost to stockholders from reduction in risk, the NPV of merger, defensive tactics, takeover and Buyouts. 2 : Financial Distress and Restructuring :

17 introduction causes and effects of financial distress, operational cutbacks, Causes and effects, Divestiture vs. asset sales, financial restructuring, Reforming governance (or} Management structures (or) replacing management Debt restructuring, Bankruptcy, liquidation & reorganization. 3 : Dividend policy and Stock Repurchases The Irrelevance of Dividends and Stock repurchases in Ideal Capital Market. Types of dividends, dividend payment process. Dividends and Principle Agent Conflicts. Dividends, taxes and transaction costs. Stock Repurchases versus Dividends. Corporate Liabilities- Alternate Debt Financing Sources, Debt Maturity Decision, Corporate use of Trade Credit, Bank Loans and Relationship Lending. Information in Debt related Events. 4 : Merchant Banking and Credit Rating : introduction to merchantbanking, merchant bankers/lead managers, registration, obligation and responsibilities, underwriters, obligation, `bankers to an issue, brokers to an issue. Issue management activities and procedure pricing of issue, issue of debt instruments, book building green shoe option, services of merchant banks, Credit Rating - SEBI guidelines, limitations of rating. 4.1 Strategic Management Sem IV Strategic Management Introduction, corporate structure in India, establishing corporate direction, developing strategic vision, setting objectives and steps in crafting a strategy. Environmental analysis;

18 4 5 identification of driving forces opportunities and competitive advantage Grand strategies Stability, expansion, retrenchment and conglomerate strategies and their variants, mergers and acquisitions, diversification, disinvestment turn around and competitive strategies for domestic and global business. Strategic choice making, portfolio analysis of alternative strategies. Structural analysis of industries and value chain analysis Strategic implementation, evaluation and control Steps in strategic implementation leadership, communication, behavioral and structural implementation. Strategic control strategic and operational control essential features of an evaluation system New business models for the internet economy. Globalization essential conditions for globalization. Competitive advantage of India and Globalization of Indian business. 4.2 Small business Management & Entrepreunership 1 Management roles and functions in a small business. Designing and redesigning business process, location, layou 1 operations planning and control. 2 Basic awareness on the issues impinging on quality, productivity and environment managing business growth 3 The pros and cons of alternative growth options:internal expansion, acquisitions and mergers, integration and d 4 Crisis in business growth. 2

19 1 Foundations of Entrepreneurship : nature of Entrepreneurship 2 social & cultural factors in nurturing entrepreneurship. 3 Institutional support for promoting entrepreneurship in India, role of Universities & Colleges, QSJR labs. 4 Case study of incubation 3 1 Business Planning : from idea generation to preparation of detailed business plans. 2 Exercises in preparation of business plans. 3 Venture Capital: valuing and financing a venture, stages of venture development and financing 4 venture capital firms (VC s) venture expansion strategies 4 1 Rural & social entrepreneurship : potential for entrepreneurship in rural India 2 SHGs, micro credit etc., Case studies of social entrepreneurship in India. 3 Family businesses, new generation entrepreneurs, women entrepreneurs Elective 5: FM 5.Derivatives 1: Introduction to Derivatives : 1 forwards, Futures, options, swaps, trading mechanisms, Exchanges, Clearing house (structure and operations, r 2 Floor brokers, Initiating trade, and Liquidating or Future position 3 Initial margins, Variation margins 4 Types and orders, future commission merchant. 2 : Forward and Future Contracts : 1 forward contracts, futures contracts,valuation of forward and future prices, Stock index futures 2 Valuation of stock index futures

20 3 4 Hedging using futures contracts, Hedging using stock index future contracts Index futures, commodity futures interest rate futures and currency futures 3 : Options Contracts and Trading Strategies : 1 characteristics of options contracts, 2 trading strategies. 4 : Valuation of options : 1 Analysis of call and put values, characteristics of option values 2 Models of valuation; Binomial and Black and Scholes model, Option Greeks. Elective 6: FM-6. International Financial Management 1 International Financial Management : 1 balance, of payments, international monetary system 2 l.m.f, the nature of global capital flows 3 ADRs & GDRs.2 Exchange rate determination and foreign exchange market : 1 structural models of exchange rate determination IRP and PP Parity 2 Exchange rate forecasting. Transfer pricing and netting, structure, types of transactions 3 Quotations and arbitrage 3 Measurement of exposure and Risk : 1 Transaction, translation and operating exposures, management of exposures using forwards, 2 currency futures & options 3 swaps and hedging with money market Management of interest rate exposure FRA Interest rate caps and floors. Financial swaps.

21 Elective 7: FM-7. Special Topics in Finance Private Equity and FII s Hedge Funds Behavioral Finance Venture Capital