IV Semester M.B.

A (Finance)

STRATEGIC MANAGEMENT

Course Code: P09 MBA 41 CIE: 50 Marks

Credit Pattern: L: T: P = 3:0:0 = 3 SEE: 50 Marks
No. of Hours per Week: 3 Exam Duration: 03 Hrs
Total Numbers of hours: 48

MODULE 1
Meaning and nature of strategic management, Its importance and relevance, Characteristics
of strategic management, the strategic management process- Relationship between a
company’s strategy and its business model.

Strategy formulation – Developing Strategic vision and Mission for a company –Setting
Objectives – Strategic Objectives and Financial Objectives – Balanced score card, Company
Goals and Company Philosophy. The hierarchy of Strategic Intent – Merging

The Strategic Vision Objectives and Strategy into a Strategic Plan.

MODULE 2
Analyzing a company’s External Environment – The Strategically relevant components

of a company’s external environment – Industry Analysis- Porter’s dominant economic

features – Competitive Environment Analysis – Porter’s five force model - Industry

driving forces – key success factors- concept and implementation.

Analyzing a company’s resources and competitive position – Analysis of the company’s

present strategies – SWOT Analysis – Value chain Analysis – Bench marking.

MODULE 3
Generic Competitive Strategies – Low cost, Differentiation, Best cost, focused

Strategies .Strategic alliances, Collaborative partnerships, Mergers and acquisition, Joint

Ventures Strategies – Outsourcing Strategies- International Business level strategies.

MODULE 4
Formulating long term and Grand Strategies – Tailoring Strategy to fit specific Industry

Page | 1
and company situation – long term objectives for Grand Strategies- Innovation,

Integration and diversification – Conglomerate Diversification, Retrenchment,

Restructuring and turnaround – GE nine cell planning grid and BCG Matrix.

MODULE 5
Strategy Implementation – Operationalizing strategy, Annual Objectives, Developing

Functional strategies, Developing and communicating concise policies.

Institutionalizing the strategy, Structure, Leadership and Culture. Ethical Process and

corporate social responsibility.

MODULE 6
Strategic review and audit, Strategic control guiding and evaluating strategies, Establishing
Strategic controls,

Operational Control Systems, Monitoring performance and evaluating deviations,

challenges of strategy Implementation.

Case studies in Indian context only

Recommended & Reference Books:

1. Crafting and executing strategy by Arthur A. Thomnson Jr., A. J. Strickland III,

John E. Gamble-Tata McGraw Hill, 14/e, 2005

2. Strategic Management – An Integrated Approach by Charles W.L. Hill, Gareth R.

Jones – BIZTANTRA, 6/e, 2004/05

REFERENCE BOOKS:

1. Strategic Management Concepts & Cases by Fred R. David – Pearson

Education/PHI.

2. Strategic Management Building and Sustaining Competitive Advantage by Robert

A. Pitts, David Lei. – Thomson South – Western, 3/e, 2002

3. Competitive Advantage by Michael E Porter, Free press, NY

4. Strategic Management by David Hunger

Page | 2
 PORTFOLIO MANAGEMENT

Course Code: P09 MBA 4F1 CIE: 50 Marks

Credit Pattern: L: T: P = 3:0:0 = 3 SEE: 50 Marks
No. of Hours per Week: 3 Exam Duration: 03 Hrs
Total Numbers of hours: 48
MODULE 1
Introduction to Portfolio Management: Models for Portfolio theory, Asset allocation
decisions.

MODULE 2
Markowitz diversification model - Sharp’s single index model - determination of corner
portfolio - international diversification. Asset pricing theories – CAPM and Arbitrage pricing
theories.

MODULE 3
Portfolio Construction and portfolio revision – Sharpe’s optimal portfolio construction,
Treynor’s - black active portfolio construction active, passive strategies and formula plan.

MODULE 4
Measuring and evaluating portfolio performance - Measures of return – Sharp’s measures -
Treynor measure-Jensen’s differential return approach. Fama portfolio decomposition -
performance evaluation of portfolio manager.

MODULE 5
Portfolio Management – Fixed income portfolio management – Equity portfolio management
– property portfolio management - portfolio management using Futures & options.
MODULE 6
Mutual funds – Concepts & role, fund structure & constituents - offer document - measuring
& evaluating mutual fund performance. Recommending the model portfolio & selecting the
right funds.

Recommended & Reference Books:

 Investment Analysis and Portfolio management – Prasanna Chandra – TMH - 2nd
Edition, 2005, 3/e
 Investments – Zvi Bodie, & Mohanty – TMH – 6th Edition, 2005
 Investment Management – VK Bhalla ( S.Chand & Co)
 Investment Analysis & Portfolio Management – Reilly – 8/e – Thamson / Cengage
Learning.
 Security Analysis & Portfolio Management – Fisher and Jordan , 6/e Pearson
 Investment science – David G.Luenberger. Oxford.
 Alexander, Sharpe, Bailley – Fundamentals of Investment – Pearson / PHI, 5/e, 2001
 Portfolio Management – Barua, Verma and Raghunathan (TMH), 1/e, 2003
 Portfolio Management –S. Kevin – Prentice Hall India.
 Reilley & Brown – Investment Analysis & Portfolio Mgmt. – Thomson Learning, 7/e,
2004
 Ranganathan & Madhumathi – Investment Analysis & Portfolio Mgmt. – Pearson
 V A Avadhani – Securities Analysis & Portfolio Mgmt. – HPH
 Punithavathy Pandian – Security Analysis & Portfolio Mgmt. – Vikas, 2/e, 2005
 Practical Investment Arrangement – Strong – Thomson / Cengage Learning 3/e

Page | 3
 RISK MANAGEMENT

Course Code: P09 MBA 4F2 CIE: 50 Marks

Credit Pattern: L: T: P = 3:0:0 = 3 SEE: 50 Marks
No. of Hours per Week: 3 Exam Duration: 03 Hrs
Total Numbers of hours: 48

MODULE 1
Introduction to derivatives: features - types- history - major markets dealing in derivatives
- Financial derivatives management in India - Regulations of financial derivatives in India.

MODULE 2
Forward Markets: Pricing and trading mechanism - mechanics of futures market-types of
futures - forward sources futures - functional of futures market -Specifications of futures
contract.

MODULE 3
Hedging strategies using futures: determination of forward and futures prices -currency
future index and stock futures - commodity futures (including forward marketing
commissions regulations for commodity derivative, trading and settlements)

MODULE 4
Interest rates: types of rates - measuring Interest rates - zero rates-Bond pricing -forward
rates - forward rate agreement – duration - Interest rate futures - Day count conventions -
quotations for treasury bonds -Treasury bonds futures-Euro dollar future - duration based
hedging strategies - Hedging portfolios of assets and liabilities - short term interest rate
futures and long term interest rate futures.

MODULE 5
Option basics: option terminology - distinction between options and futures contracts -
properties of options - trading strategies involving options - hedging with options.

MODULE 6
Option pricing models: determinates of option price - Basic model - Binomial option pricing
model - Black and Sholes option pricing model - Sensitivity of option premiums - delta,
theta, Vega, Rho,

Page | 4
Recommended & Reference Books:

 Options Futures & Other Derivatives- John C.Hull - (Pearson Education), 6/e
 Options & Futures- Vohra & Bagri - (TMH), 2/e
 Derivatives- Valuation & Risk Management-Dubofsky & Miller - (Oxford University
Press), 2004/05
 Risk Management & Insurance – Harrington & Niehaus – TMH, 2/e
 Risk Management & Derivative – Shulz – Thomson / Cengage Learning.
 Principles of Risk Mgmt. & Insurance – Rejda – Pearson Education/PHI, 8/e, 2003
 Introduction to Derivatives and Risk Management – Chance – Thomson Learning,
6/e, 2004
 Introduction to Risk Management & Insurance – Dorfman – Pearson/PHI, 2004
 International Risk & Insurance –Skipper - (TMH)
 Options & Futures –Edwards & Ma - (MacGraw Hill), 1/e
 Derivatives & Financial Innovations – Bansal - TMH.
 Credit Risk Management – Anderw Fight –Elvis.
 Financial Derivatives – S.S.S. Kumar PHI 2007.
 Risk Management – Koteshwar HPH.
 Futures, Options and Swaps – Robert W Kolb – Blackwell Publishing.

Page | 5
 INTERNATIONAL FINANCIAL MANAGEMENT

Course Code: P09 MBA 4F3 CIE: 50 Marks

Credit Pattern: L: T: P = 3:0:0 = 3 SEE: 50 Marks
No. of Hours per Week: 3 Exam Duration: 03 Hrs
Total Numbers of hours: 48

MODULE 1
International financial Environment- The Importance, rewards & risk of international
finance- Goals of MNC- International Business methods – Exposure to international risk-
International Monetary system- Multilateral financial institution-Government influence on
exchange rate.

MODULE 2
International flow of funds:- Balance of payments(determination of current account, capital
account & ORA)-International Trade flows-International Capital Flows-Agencies that
facilitate International flows – Equilibrium, disequilibrium & adjustment of Balance of
payment & Trade deficits.

MODULE 3
International Financial Markets:- Foreign exchange markets-foreign exchange trading-Cash
& Spot exchange markets-foreign exchange rates & quotation- forward markets-Exchange
rate Behavior-Cross Rates-Foreign exchange market participants-arbitrage profit in foreign
exchange markets, Swift Mechanism.

MODULE 4
Forecasting foreign Exchange rate:- Measuring exchange rate movements-Exchange rate
equilibrium – Factors effecting foreign exchange rate- forecasting exchange rates-
international parity relationship: interest rate parity, purchasing power parity & fisher
effects.

MODULE 5
Foreign Exchange exposure:- Management of Transaction exposure- Management of
Translation exposure- Management of Economic exposure- Management of political
Exposure- Management of Interest rate exposure.

MODULE 6
Foreign exchange risk Management: Hedging against foreign exchange exposure – Forward
market- Futures Market- options Market- Currency Swaps-Interest rate Swap- Cross
currency Swaps-Hedging through currency of invoicing- Hedging through mixed currency
invoicing –Hedging through selection of supplying country.
Country risk analysis.

Page | 6
Recommended & Reference Books:

 Eun & Resnick – International Finance Management ---(Tata McGraw Hill), 4/e
 Jeff Madura International Finance Management ---(Thomson), 7/e, 2004
 P.G. Apte-International Finance Management- ( Tata McGraw Hill), 5/e
 V. Sharan – International Finance Management- PHI 3/e
 Madhu Vij- Multinational Financial Management – Excel
 Jain, Periyad, & Yadav – International Finance Management ---(Mc Millan)
 P G Apte – International Finance-A Business Pespective – TMH, 1/e
 V K Bhalla– International Finance Management ---(Anmol)
 S P Srinivasan & Dr B Janakiram - International Finance Management ---(Biztantra
Wiley Dreamtech, 2005)
 Exchange Rate & International Finance – Copland – Pearson.
 David Eieteman – Multinational Business Finance – Pearson Education, 10/e, 2003
 Allan C Shapiro – Multinational Financial Management – John Wiley, 2004
 Buckley – Multinational Finance – Pearson/PHI, 5/e
 International Financial Markets – Machiraju – New Age International, 2004
 International Finance – A case book – Desai – Wiley India (P) Ltd.
 Sathye Rose, Weston - International Financial Management – John wiley – 2006

Page | 7
 TAX MANAGEMENT

Course Code: P09 MBA 4F4 CIE: 50 Marks

Credit Pattern: L: T: P = 3:0:0 = 3 SEE: 50 Marks
No. of Hours per Week: 3 Exam Duration: 03 Hrs
Total Numbers of hours: 48

Note: For the purpose of question paper the previous year as per I.T. Act will be the same
as the academic year of the batch. Ex: For forth semester commencing in February 2010,
the previous year is 2008-09

MODULE 1
Basic concepts: assessment year, previous year, person, assesse, Income, charges on
income, gross total income, capital and revenue receipts, residential status, receipt and
accrual of income, connotation of income deemed to accrue or arise in India, incidence of
tax, Tax Planning, Tax Evasion, Tax Management.

MODULE 2
Explanation under various heads of income, income from salary (Basic problems), income
from other sources (theory)

MODULE 3
Income under capital gain, basis of charge, transfer of capital asset, inclusion & exclusion
from capital asset, capital gain, computation, theory & problems, slump sale, Exemptions,
capital gain in special cases, Securities Transaction Tax(88E).

MODULE 4
Income under the head profit and gains of business or professions and its computation-
basis- method of accounting- scheme of business deductions/ allowance- deemed profits-
maintenance of books, Depreciation (Both Theory & Problems) special provisions relating to
44AD, 44AE & 44AF.Problems on computation of income from business/ profession.

Setoff and carry forward of losses- permissible deductions –under Ch. VI-A 80C, 80CCC,
80D, 80DD, 80DDB, 80E, 80U, Sec 10A, 10B, 10BA.

MODULE 5
Computation of taxable income of a firm and partners. Computation of taxable income of a
company with special reference to MAT- Corporate div. Tax, Fringe Benefit Tax.

MODULE 6
Central sales tax- objects & provisions in brief (theory) Inter state, Intra state, Deemed
exports Registration, VAT (Only basic Concept). Central excise and custom acts- objects and
provisions of the act in brief (theory) - goods, excisable, marketable Concept of CenVAT-
customs- Basic definition, charge.

Page | 8
Recommended & Reference Books:

 Direct Tax – Lal & Vashisht – Pearson Ed. 28E.

 Vinod Singhania- Students Guide to Income Tax – Taxman Publications
 V S Datey – Indirect Taxes – Taxman Publications,
 Vinod Singhania – Direct Taxes – Taxman Publications
 Mehrotra- Direct Tax – Sahitya Bhavan
 T N Manoharan- Students Guide to Income Tax – Snow White
 How to deal with VAT- Kul Bushan – Pearson Education/PHI, 1/e, 2004
 Income Tax Law & Practice, Mahesh Chandra & Shukla – Pragathi Publications
 VAT – Dr.Pillai – Jaico Publications, 2004

Page | 9