The financial decisions are the backbone for the overall existence of the company. There has been a constant and significant change in the role of finance is witnessed over the past few years. Historically, the finance managers in any family-owned company used to make decisions regarding accounting, financial statement preparation, cash budgeting, etc. However, after the opening of the Indian economy and stiff competition from professionally managed companies, the role of managers has changed. The finance manager’s decisions have now become more critical for the future performance and viability of the company.
The finance decisions at each level should be taken in line with the decisions of marketing and operations professionals, and these decisions affect the company and its value in the long run. Thus, to create value for the company, strategic corporate finance deals with the different aspects of modern-day finance, which are i) investment decisions, ii) the financing decisions and iii) the distribution of benefits, i.e., dividend distribution decisions. Conceptual understanding of the three important aspects of strategic corporate finance helps professionals in the company to address some of the strategic questions like how the company should think about future investment plans to increase value? Whether the new investments are worth pursuing? What could be the long-term sources of funds? How should the company think about raising funds from debt or equity sources so that the cost of capital can be managed better? Does dividend distribution matter for the company? What should be the retention ratio which can help to maximize the shareholders’ wealth?
This management development program aims to provide an understanding of the strategic concepts of finance and its implications for the company in the long run. The five days management development program on Strategic Finance includes a simulation game called ‘The Boardroom.’ In this game, you are required to set up a team of top-level executives like CEO, Chief Finance Officer, Chief Marketing Officer, Chief Sales Officer, Chief Production Officer, and Chief Research Officer. The team would take some crucial decisions starting from finance, marketing to productions and operations. The simulation would help participants to connect between different domains and the performance of the company. In the game, participants would also understand the implications of Merger and Acquisitions when a few companies want to acquire some other small companies.
- To understand the concepts of investment decision making and its significance
- To discuss the concepts of cost of capital and its importance for the company
- To familiarise the participants with capital structure and its implications
- To have the discussion and debates over the decisions regarding dividend distribution
- To assimilate all of the concepts of strategic finance and their applications for long term value creation.
- To understand the overall performance of the company and its importance for future actions like Merger and Acquisitions.
- Identification of relevant cash flows for investment decisions
- Steps and methods used in capital budgeting and investment decisions
- Risk analysis of investment decisions
- Estimation of the hurdle rate
- Estimation of cost of capital and issues
- Cost of capital for the multi-divisional firm
- Identification of optimal capital structure and challenges therein
- The impact of capital structure on the cost of capital and shareholder’s wealth.
- Pay-out policies and firm value
- Assessment of impacts of dividends on the firm value
- Techniques for strategic valuation of a company
- ‘The Boardroom’ game for the discussion on corporate planning and results
Management Development Programmes (MDP) Office
Indian Institute of Management Indore
Prabandh Shikhar, Rau-Pithampur Road
Indore 453556, Madhya Pradesh, INDIA
Email : email@example.com
Tel. : +91-731-2439750, 2439752, 2439753, 24397544
Fax : +91-731-2439800
This program is designed for finance and project management professional of mid-and senior-level. However, as the program deals with strategic decision making hence, this will equally be enriching for professionals from strategy, operations, and marketing, who work in a team of members from different domains, to attain overall objectives of the organization.
GST, as applicable, will be additional
Prof. Debasish Maitra