STRAFM1 (3 units) / Description:
STRATEGIC FINANCIAL MANAGEMENT / Effectivity:
1st Semester,
SY 2015 - 2016 / Date Revised
June , 2015 / Page 2 of 12
SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
General Luna Road, Baguio City
UB VISION
In pursuit of perfection, the University of Baguio is committed to provide balanced quality education by nurturing academic excellence, relevant social
skills and ethical values in a fun-learning environment.
UB MISSION
The University of Baguio educates individuals to be empowered professionals in a global community.
INSTITUTIONAL OBJECTIVES The University of Baguio aims to produce a graduate who:
1. exemplifies a higher standard of learning;
2. manifests the mastery of relevant skills;
3. upholds a conduct that is rightful and just;
4. undertakes scientific and significant researches;
5. advocates sustainable programs for the community and the environment; and
6. leads and demonstrates exemplary performance in the field of specialization.
UB CORE VALUES
COMPETENCE + INTEGRITY = SERVICE
COMPETENCE University of Baguio is committed to nurturing excellent professionals.
INTEGRITY University of Baguio is committed to cultivating a community with ethical values.
SERVICE University of Baguio is dedicated to building a community that advocates sustainable programs for the society and the environment
Course Title:STRAFM1 (3 units) / Description:
STRATEGIC FINANCIAL MANAGEMENT / Effectivity:
1st Semester,
SY 2015 - 2016 / Date Revised
June , 2015 / Page 2 of 12
SCHOOLMISSION
The University of Baguio educates individuals to be empowered professionals in a global community. The School of Business Administration and Accountancy edifies competitive and morally upright individuals.
SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY MISSION
The University of Baguio educates individuals to be empowered professionals in a global community. The School of Business Administration and Accountancy edifies competitive and morally upright individuals.
SCHOOL OBJECTIVES
The School of Business Administration and Accountancy aims to produce a graduate who:
1. cultivates the knowledge that is imperative for success in globalized setting;
2. displays expertise appropriate to the profession;
3. typifies professional integrity with humility;
4. undertakes researches to promote systematic bases for business decisions;
5. utilizes macro-environmental acumen for economic growth and development; and
6. exhibits commendable accomplishments in business and accountancy.
The Bachelor of Science in Business Administration and program aims to produce a graduate who:
1. fosters the highest level of competence in the chosen career;
2. performs the requisite skills in the various business disciplines;
3. makes morally upright choices I dealing with ethical dilemmas;
4. undertakes significant researches employed in crafting of relevant business decisions;
5. takes personal initiative and responsibility through participation in community –related activities and;
6. contributes to successful business ventures by creditable work performance.
CORE VALUES
1. Professional Ethics
2. Integrity
3. Objectivity and Independence
4. Professional Competence and Due Care
5. Confidentiality
6. Professional Behavior
7. Fairness
8. Transparency
9. Accountability
10. Hard Work
11. Honesty
12. Patience
13. Diligence
14. Innovativeness
15. Risk-taking
1. Program Learning Outcomes (PLO) vis a vis Program Objectives
Program Outcomes (effective SY 2015-2016) / PROGRAM OBJECTIVESP1 / P2 / P3 / P4 / P5 / P6
A. The Graduates have the ability to articulate and discuss the latest developments in the specific field of practice. / √
B. The Graduates have the ability to effectively communicate orally and in writing using both English and Filipino. / √
C. The Graduates have the ability to work effectively and independently in multi-disciplinary and multi-cultural teams. / √
D. The Graduates have the ability to act in recognition of professional, social, and ethical, responsibility. / √
E. The Graduates have the ability to preserve and promote “Filipino historical and cultural heritage” (based on RA 7722). / √
F. The Graduates have the ability to carry out researches that can be utilized in the community and in the business profession. / √
2. Course Objectives vis-a-vis Program Learning Outcomes
Course Objectives and Relationship to Program OutcomesCourse Objectives / A / B / C / D / E / F
Cognitive Domain
C1. Distinguish the goals, functions and the environment of Financial Management/Finance Manager / √
C2. Analyze and interpret financial statements using financial analyses tools. / √
C3. Apply theories/concepts learned to case analyses. / √
C4. Identify principles in decision making that are applicable to problems presented in class / √
C5. Differentiate various sources of financing. / √
C6. Contrast strategic investment and financing decisions. / √
Affective Domain
C7. Listen attentively to class discussion/reporting. / √
C8. Show enthusiasm in researching, reporting and sharing ideas in class. / √
C9. Exhibit cooperation in group dynamics, research and reports / √
C10. Appreciate the role of strategic financial management in life / √
C11. Prepare strategic financial plan / √
C12. importance of the subject / √
C13. Demonstrate belief in the Display positive attitude towards research. / √
Psychomotor Domain
C14. Solve strategic financial management case analysis. / √
C15. Research and report on chosen topics. / √
C16. Comply with all requirements of the course. / √
3. CURRICULUM MAPPING OF THE SUBJECT:
Program Outcomes (effective SY 2015-2016)A. The Graduates have the ability to articulate and discuss the latest developments in the specific field of practice. / L – Outcome Learned in the course
B. The Graduates have the ability to effectively communicate orally and in writing using both English and Filipino. / L – Outcome Learned in the course
C. The Graduates have the ability to work effectively and independently in multi-disciplinary and multi-cultural teams. / L – Outcome Learned in the course
D. The Graduates have the ability to act in recognition of professional, social, and ethical, responsibility. / P – Outcome Practiced in the course
E. The Graduates have the ability to preserve and promote “Filipino historical and cultural heritage” (based on RA 7722). / L – Outcome Learned in the course
F. The Graduates have the ability to carry out researches that can be utilized in the community and in the business profession. / P – Outcome Practiced in the course
Course Description:
The course enables the student to have an integrated view of the management of a financial institution. Topics include corporate environmental scanning, situation audit, objective setting, strategy and tactics formulation, financial planning and control in the context of a periodic planning cycle. Case studies of planning in financial institutions will be extensively used. The profit/cost center performance via the transfer pool pricing management information requirements as well as designing the database management system will also be discussed.
Pre-requisite/s none
FINMAN1/ FINMGT3
Requirements
1. Regular and punctual attendance
2. Quizzes, assignments, periodical examinations
3. Reports
4. Reaction papers
5. Self-assessment exercise
6. Notebook
7. Strategic plan
I. DETAILED COURSE OUTLINE:
Session Learning Objectives/Goals (SLO/G) / Content Topic / Outcomes Based Methodologies/Strategies & Approaches / Learning Outcomes / TimeAllotment / Values / Evaluative Measures /
First Grading Coverage / 16 hrs
Course Syllabus
VMO
Seat Plan
Leveling of Expectations / Orientation
Internalize the VMO
Arrange students
Requirements & Grading system / 1 hour / Recitation
To be able to understand the importance of strategic financial management. / 1. Nature and Scope of Strategic Financial Management
1.1 Definition of Terms: Strategy, Strategic, Strategic Financial Management
1.2 The Scope of Strategic Financial Management
1.3 Implications of the prefix “strategic” in Strategic Financial Management
1.4 Other related activities in which Financial Managers are involved
1.5 Steps in Strategic Financial Decision-Making
1.6 Axioms of Financial Management Review / Lecture/ discussion / To be able to distinguish the differences of strategy, strategic and strategic financial management.
To understand the scope of strategic financial management. / 5 hours / Professional competence and due care
Fairness
Transparency
Accountability
Innovativeness / -Quiz
-Exercise
-Recitation
- Case analysis
To be able to understand the different objectives of a business organization. / 2. Objectives of Business Organizations
2.1 Objectives of a Business Organization
2.1.1. Financial Objectives
a. Profit Maximization
b. Profitability Maximization
c. Liquidity
d. Long Term Stability
e. Growth
f. Corporate Wealth Maximization
g. Shareholder’s Wealth Maximization
2.1.2. Non Financial Objectives
a. Market Share
b. Sales Growth
c. Market Development
d. Technological Improvements
e. Organization
f. Social and ethical responsibility
2.1.3. Social and Ethical Obligations
a. Employees
b. Customers
c. Suppliers
d. Local Community
e. Government / Lecture/ discussion / . to be able to describe the different objectives of business and the different financial objectives. / 6 hours / Fairness
Transparency
Accountability
Hard work
Honesty
Patience
Diligence
Innovativeness
Risk-taking / -Quiz
- Exercise
-Recitation
- Case analysis
To be able to understand the relationship of management and owners of the business / 3. Agency Theory
3.1 Agency Relationship
3.2 Shareholders vs Managers
Creditors vs Shareholders / Lecture/ discussion / To be able to relate the different roles of the stockholders and shareholders of the business / 4 hours / Professional ethics
Integrity
Objectivity and Independence
Professional competence and due care
Professional behavior
Fairness
Transparency
Accountability
Hard work
Honesty
Patience
Diligence / -Quiz
- Exercise
-Recitation
- Case analysis
First Grading Examination / 2 hrs
Subtotal 18 hours
Midterm Coverage / 16 hrs
To understand the different responsibilities of the board of directors and the management / 4. Corporate Governance
4.1. Introduction
4.1.1. Board Accountability
4.1.2. Values and Strategy
4.1.3. Risk Management
4.1.4. Management Systems
4.1.5. Performance monitoring and reporting
4.1.6. Stakeholders interaction
4.1.7. Accountability
4.1.8. Committees of the Board
4.2. The essence of Good Corporate governance
4.3. Principles of Corporate Governance
4.4. Role of the Board and Management
4.5. Independent Director
4.6. Structure of the Board
4.7. Ethical and Responsible Decision Making
4.8. Integrity of Financial Reporting
4.9. Disclosure to Stock Exchange
4.10. Protection of Shareholder’s right
4.11. Risk Management
4.12. Performance Evaluation
4.13. Remuneration: Fairly and Responsibly
4.14. Legitimate interest of shareholders/stakeholders / To be able to analyze the different principles of corporate governance and the different roles of board and management / 4 hours / Professional ethics
Integrity
Objectivity and Independence
Professional competence and due care
Professional behavior
Fairness
Transparency
Accountability
Hard work
Honesty
Patience
Diligence / -Quiz
- Exercise
-Recitation
- Case analysis
To be able to explain the different company’s objectives and targets. / 5. Corporate Strategy and Planning
5.1 Introduction
5.2 Company’s objective and targets
5.2.1. The Environment
5.2.2. Appraising the Opportunities
5.2.3. Long-term Strategic Planning and Formulation
5.2.4. Implementing Strategies
5.2.5. Performance Evaluation
5.2.6. Corporate Plan and Budgeting / -Lecture/ Discussion
-Role-Playing / To be able to describe and interpret the company’s objective and targets and its implementation / 6 hours / Professional Ethics
Objectivity and Independence
Professional Competence and due care
Professional behavior
Fairness
Transparency
Accountability
Hard work
Honesty
Patience
Diligence
Innovativeness
Risk-taking / -Quiz
-Recitation
- Case analysis
To understand the different investment opportunities and the different evaluation of the net benefits / 6. Capital Expenditure and Planning and Control
1.1. Introduction
1.2. Capital Expenditure Planning and Control
1.2.1. Identification of investment opportunities
1.2.2. Developing cash flow implementation
1.2.3. Evaluation of the net benefits
1.2.4. Authorization to spend
1.2.5. Control and monitoring of Capital projects
1.3. Investment appraisal techniques
1.3.1. Discounted Cash Flow techniques
1.3.2. Non-Discounted Cash Flow techniques / Lecture/ discussion / To be able to evaluate the different net benefits and to calculate the different investment appraisal techniques / 6 hours / Fairness
Transparency
Accountability
Hard work
Diligence
Innovativeness
Risk-taking / -Quiz
-Recitation
- Case analysis
Midterrn Examination / 2 hrs
Subtotal: 18hrs
Finals Coverage / 16 hrs
To be able to understand working capital management, the different requirements and issues in working capital management / 7. Working Capital Management
7.1 Introduction
7.1.1. Financing Working Capital
7.1.2. Need for Working Capital
7.2. Working Capital Requirement
7.3. Issues in Working Capital Management
7.4. Financing Current Assets (Working Capital) / Lecture/ discussion
-Reporting / To be able to identify the different working capital requirements and issues in working capital management / 7 hours / Fairness
Transparency
Accountability
Hard work
Diligence
Risk-taking / -Quiz
-Recitation
- Case analysis
To compare the difference of mergers and acquisition and identify its types / 8. Corporate Restructuring, Mergers and Acquisitions/Takeover
8.1. Introduction
8.2. Mergers and Acquisitions
8.3. Synergy
8.4. Motives for Mergers
8.5. Types of Mergers
8.6. Strategic Acquisition versus Financial Acquisition
8.7. Takeovers, tender offers and defenses / Lecture/ discussion / To be able to differentiate mergers and acquisitions. / 7 hours / Fairness
Transparency
Accountability
Honesty / -Quiz
-Recitation
- Case analysis
Other topics/ Strategic Plan presentation / Reporting / 2 hours
Final Examination / 2 hrs
Subtotal: 18hrs
TOTAL: 54 HRS
II. GRADING SYSTEM:
For Professional Subjects: the cut-off score is 70%. The highest possible grade is ninety-nine (99); the lowest passing grade is seventy-five (75); and the lowest failing grade is sixty-five (65).
First grading Class standing = 70 % ; Exam = 30 %
Midterms Class standing = 60 % ; Exam = 40 %
( Tentative Midterm Grade x 2 + First Grading ) / 3 = Midterm Grade
Finals Class standing = 60 % ; Exam = 40 %
( Tentative Final Grade x 2 + Midterm Grade ) / 3 = Final grade
III. REFERENCES
A. Books
Amason, Allen C. Strategic management from theory to practice. New York: Routledge, c2011
bateman, Thomas S. Management: : leading and collaborating in a competetive world. 9th ed. Mc Graw Hill, c2011.
Jones, Gareth R. Strategic management essentials. 3rd ed. Cengage, c2012.