crsfm session 1.pptx
Post on 03-Jun-2018
218 Views
Preview:
TRANSCRIPT
-
8/12/2019 CRSFM Session 1.pptx
1/21
Corporate Restructuring and
Strategic Financial ManagementCRSFM
Saurav Snehvrat
Trimester VI
-
8/12/2019 CRSFM Session 1.pptx
2/21
Class Structure:
Sl. Topic Area
Class
Hours
1. Introduction - Strategy 2
2.
Introduction - Strategic Financial
Management 2
3.Corporate Restructuring - Meaning,Types 2
4.
Financial Restructuring - Capital
Structure 2
5. Mergers 2
6. Acquisitions 2
7. Buyouts 2
8. Management Control 2
-
8/12/2019 CRSFM Session 1.pptx
3/21
Class Structure:
9. Takeovers 2
10. Valuation of Firm - Enterprise Value 3
11. Divestitures - Why and How 3
12. Managing Bankruptcy 3
13. Problem Solving and Practice 3
14. Case Discussion & Presentation 2
Total Class Hours 32
-
8/12/2019 CRSFM Session 1.pptx
4/21
Scoring Structure:
1. Class Attendance 10
2. Class Participation 5
3. Mid Trimester Test 20
4. Project Presentation 15
5. Final Exam 50
Total 100
-
8/12/2019 CRSFM Session 1.pptx
5/21
Stake holders and Share holders
Investopedia:
A shareholder owns part of a company through stock
ownership
A Stakeholder is interested in the performance of a company
for reasons other than just stock appreciation.
Shareholders are Stakeholders but Stakeholders are not
always shareholders.
-
8/12/2019 CRSFM Session 1.pptx
6/21
What is Strategy?
Michael E Porter on competitive strategy:
A combination of the ends (goals) for which the firm is striving
and the means (policies) by which it is seeking to get there..
Johnson and Scholes
Strategy is the direct ion and scopeof an organization over
the long-term:which achieves advantage for the organisation
through its configuration of resourceswithin a
challenging envi ronment, to meet the needs of marketsand
to fulfill stakeholderexpectations.
-
8/12/2019 CRSFM Session 1.pptx
7/21
What is Strategy?...features
Strategy is about winningimportant for success
Strategy is about being different from your competitors.
Strategy is long term, directional and large scale.
Strategy aims to provide sustainable advantage to the firm.
Strategys scope covers all organizational activities: Planning,
Directing, Organizing and Controlling.
Strategy leverages the unique set of resources a company
has.
-
8/12/2019 CRSFM Session 1.pptx
8/21
Hence.
Strategy requires significant change.
Strategy always deals with uncertainty.
It affects every aspect of operations.
Strategies can become complex.
Strategic decisions are generally very tough to reverse in the
short to middle term.
-
8/12/2019 CRSFM Session 1.pptx
9/21
What a strategy is not?
Strategy is not a plan. Why?
Strategy is not a tactic. Why?
Strategy is not a SWOT analysis.
Strategy is not just a vision or mission statement.
Strategy is not a PEST analysis.
-
8/12/2019 CRSFM Session 1.pptx
10/21
Where to find the strategy of the firm?
In the heads of CEOs and senior management.
Speeches and documents of the firm.
Decisions through which the strategy is executed.
Hierarchy of strategy statements:
Mission statement: Why we exist? Purpose.
Vision statement: What we want to be?
Values/principles statement: What we believe in and how we
will behave?
Strategy statement:
What will be the competitive game plan?
- objectives
- scope (where will we compete)
- advantage (how will we compete)
-
8/12/2019 CRSFM Session 1.pptx
11/21
Example of strategy statement:
Apple Inc.: Business Strategy
The company is committed to bringing the best personal
computing and music experience to students, educators,creative professionals, businesses, government agencies and
consumersthrough its innovative hardware, software
peripherals, service and internet offerings. The companys
business strategy leverages its unique ability through the
design and development of its own operating system,
hardware, and many software applications and technologies,to bring to its customers new products and solutions with
superior ease of use, seamless integration, and innovative
industrial design. The company believes continual investment
in R&D and is critical to facilitate innovation of new and
improved products and technologies. The companys
strategy also includes expanding its distribution network to
reach more of its targeted customers effectively and provide
them a high quality sales and after sales support experience.
-
8/12/2019 CRSFM Session 1.pptx
12/21
Exercise I: Match the following
Be healthy and fit.
To run the London marathon.
Lose weight and strengthen
muscles.
Proximity to a fitness centre, a
successful diet.
Lose 5 kilos by Sept 1.
Exercise regularly, compete in
marathons, stick to appropriate
diet.
Join a fitness club.
Monitor weight, kilometres
run, measure times and
adjust.
Goal.
Mission.
Vision.
Objective.
Strategic
Capability.
Business Model.
Strategies.
Control.
-
8/12/2019 CRSFM Session 1.pptx
13/21
Exercise I: Answers(Johnson, Scholl and Whittington)
-
8/12/2019 CRSFM Session 1.pptx
14/21
Exercise II: Match the following
Empowering everyone live their dreams.
Create unmatched value for everyone through
dependable, effective, transparent and profitable
life insurance and pension plans.
Reliance Life Insurance would strive hard to achieve the 3
goals mentioned below:
Emerge as transnational Life Insurer of global scale and
standard
Create best value for Customers, Shareholders and all
Stake holders
Achieve impeccable reputation and credentials through
best business practices
Vision.
Mission.
Goal.
Strategy.
1. Retention of its existing 90 lakh customers;
2. Minimising mis-selling and orphan policies;
and three
3. Offering the security of regular salaries for its
agents, a first-of-its-kind initiative in India Operating
Strategy.
-
8/12/2019 CRSFM Session 1.pptx
15/21
Basic Components of Strategy
RATE OF RETURN >
COST OF CAPITAL
How do we make
money?
COMPETITIVE
ADVANTAGE
How should we
compete?
INDUSTRY
ATTRACTIVENESS
Which industries
should we be in ?
CORPORATE
STRATEGY
BUSINESS
STRATEGY
-
8/12/2019 CRSFM Session 1.pptx
16/21
Levels of Strategy Corporate level
Determine overall scope of the organisation
Add value to the different business units
Meet expectations of stakeholders
Business level (SBU)
How to compete successfully in particular markets Operational
How different parts of organisation deliver strategy
-
8/12/2019 CRSFM Session 1.pptx
17/21
Evolution of strategic management
FINANCIAL
BUDGETINGDCF based capital
budgeting
Financial Control
through operating
budgets.
CORPORATE
PLANNINGMedium term
forecasting
Diversification and
synergy
1950 1960
STRATEGY AS
POSITIONING
Industry Analysis
Market
Segmentation
COMPETITIVE
ADVANTAGE
Resources and
CapabilitiesShareholder Value
Maximization
Alliances
1970 1980 1990
-
8/12/2019 CRSFM Session 1.pptx
18/21
Evolution of strategic management
STRATEGY FOR
THE NEW
ECONOMYDisruptive
Technology
Strategic Innovation
STRATEGY IN THE
NEW MILLENIUM
CSR, business
ethicsGlobal strategies
Winner take all
strategies
2000 2009
-
8/12/2019 CRSFM Session 1.pptx
19/21
Exhibit 1.3 Johnson, Scholl and Whittington
A model of the elements of strategic management
-
8/12/2019 CRSFM Session 1.pptx
20/21
Strategic management
Strategic Management is the set of
managerial decisions and actions thatdetermine the long run performance of an
organization. It includes:
Environmental and Internal Scanning
Strategy Formulation
Strategy Implementation
Evaluation and Control- Wheelen and Hunger
-
8/12/2019 CRSFM Session 1.pptx
21/21
What are the key forces
of a successful strategy?
Successful strategy
Effective Implementation
Simple,
consistent, long
term goals
Profound
understanding of the
competitive
environment
Objective
appraisal of
resources
top related