Congratulation to our new CRs !

 Sudesna Timsina                                              Mrinal Neogy

Syllabus-7th Sem

1. CORPORATE FINANCE
2. INVESTMENT DECISIONS 
3. MARKETING COMMUNICATION 
4. SERVICE MARKETING
5. STRATEGIC MANAGEMENT   

Strategic Management I

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MGT 111.3
BBA, Fourth Year, Seventh Semester

Course Objectives:

This course aims to introduce the students to the fundamental concepts of strategic management. The course also aims to develop skills in students to develop a mission statement, perform an external audit, conduct an internal assessment, and formulate strategies through cases and experiential exercises.

Course Contents:

1. Strategic management                                                                                 7 hours

Definition: Dimensions of strategic decisions, Levels of strategy, Characteristics of strategic management decisions, Formality in strategic management, Value of strategic management, Role of chief executives in strategic management.

2.   External environmental analysis and forecasting                                         5 hours               

      Components of remote environment: economic, social, political, legal (legislation and regulations), technological (PEST analysis), Linking strategy with ethics and social responsibility.

3.  Establishing company direction                                                                  6 hours

      Developing business mission and strategic vision. Communicating the strategic vision. Setting performance objectives. Strategic objectives versus financial objectives. Strategic intent. Strategy making pyramid: Corporate strategy, Business strategy, Functional strategy and operational strategy. Uniting the strategy making effort.

4.  Industry and competitive analysis                                                               6 hours

Methods of industry and competitive analysis, Five forces of competition, Driving forces, Environmental scanning techniques, Strategic group maps, Monitoring competition, Key factors for competitive success evaluating

5.   Evaluating company resources and competitive capabilities                        8 hours

      Strengths and resources capabilities, Weakness and resource deficiencies, Competencies and capabilities, Market opportunities, Threats to future profitability, Strategic cost analysis and value chains, Benchmarking, Competitive capabilities to competitive advantage

5.   Strategic options                                                                                         10 hours

      Generic strategies: Low cost provider strategy, Differentiation strategy, Best-cost provider strategy, focused strategy. Grand Strategies: Concentration, Market development, Product development, Innovation, Horizontal integration, Vertical integration, Joint Venture, Concentric diversification, Conglomerate diversification, Retrenchment/turnaround, Diverstiture, Liquidation.

6.  Strategic analysis and choice                                                                       6 hours

      Evaluating and choosing strategies, Industry environment and strategy choices, Evaluating and choosing to diversity

     

Text Books

1.       Pearce, John A. and Robinson, Richard B: Strategic Management, AITBS, Delhi.

2.       Thomson, Arthur A. and Stickland III, Strategic Management, Tata Mcgraw-Hill, New Delhi

Reference Books:

        1.     Agrawal, G.R: Business Strategy & Strategic Management in Nepal, M.K. Publisher Kathmandu

 

Investment Decisions

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FIN121.3 
BBA, Specialization, Finance

Course Objectives:

This course aims to provide students with the knowledge and skill required to value financial assets and portfolio of financial assets. Finance I and Finance II are prerequisites for this course.

Course Contents:

1.  Review and Risk and Return                                                                        6 hours

Probability distribution of the investment returns, expected rate, variance, standard deviation, covariance, and correlation of returns.

Investors' constraints: risk aversion, liquidity, time horizon, etc.

Appropriate risk measures for individual assets, and portfolio of assets. Risk contribution of components asset on risk of a portfolio.

2.  Portfolio Theory, Asset Allocation and Security Selection                           9 hours

Markowitz portfolio selection model; Tobin’s separation theorem and resulting tangency portfolio; Capital Allocation

Line and Capital Market Line; Risk Aversion and Asset Allocation; Active vs Passive strategy for asset allocation.

Systematic and Unsystematic risk, Security Market Line, and Capita! Asset pricing Model.

3. Interest Rates and Risk Premiums                                                               6 hours

Interest rates and their determination, term structure of interest rates and theories of term structures: real and nominal

interest rates; Interest Rate Structures in Nepalese Financial Market

4. Bond Price and Yields                                                                                 9 hours

Price and Yield to Maturity (YTM) Relationship; Relationship among coupon rate, YTM. and current yield for  Premium Bond, Discount Bond, and Bond at Par; yield-to-maturity, yield-to-call, holding period return, promised   yield and realized yield, yield to call. Price risk and reinvestment rate risks on bond investment; Maturity effect and  coupon effect on interest rate risk, Macaulay’s Duration and Modified Duration; Immunization by duration matching. Relating the concepts learned to real life through observation of Nepal’s Treasury Bills and Government Bond markets.

5. Valuation of Common Stocks                                                                      9 hours

Fundamental Analysis; Dividend discount model with zero-growth, constant perpetual growth, two-staged growth; Price Ratio Analysis: PIE, Price to Book, Price to sales, etc.

Market efficiency and stock Price Behavior in developed market. Comparing and contrasting the stock price behavior in Nepalese market. Relating concepts learnt to value some of the stocks traded on Nepal Stock Exchange.

6. Valuation of Options and options linked securities                                      9 hours

Types of basic option contracts: put and call; Factors affecting options value; Pricing options with one period and two periods  to expiry using binomial method; Evaluating investment projects with options with to abandon and expand; Valuation of warrants; valuation of convertible securities.

Text Books

1.       Bodies, Z., Kane A., and Marcus A. J.: Investments, McGraw-Hill Irwin.

2.    Brealey, R. A. and Myers, S. C.: Principles of Corporate Finance, McGraw-Hill

Reference Books

1.       Sharpe, W. F., Alexander, G. J., and Bailey, J. V.: Investments, Prentice-Hall of India Pvt. Ltd.

2.       Cheney, J. M., and Moses, E. A.: Fundamentals of Investments, West Publishing Company.

3.       Corrado, Carles J and Jordan, Bradford D.: Fundamentals of Investments, McGraw-Hill International Editions

4.       Chance, Don M.: An Introduction to Derivative and Risk Management, THOMSON South-Western

 

Corporate Financing Decisions

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FIN122.3
 BBA, Specialization, Finance

Course Objectives:

The course aims to equip students with basic concepts and necessary skills in raising capital for and managing financial assets of a firm. Finance I and Finance II are pre-requisite for this course. The course will cover the following topics.

Course Contents:

1.    Measuring Capital Structure and Cost of Capital                                        6 hours

         Cost of capital, cost of debt capital, cost of equity capital, weighted average cost of capital, its use and limitations. Measuring capital structure, calculating required return.

2.    Theories of Capital Structure                                                                     6 hours

         Factors affecting capital structure: MM proposition under perfect market assumption; Adjustment for market imperfections-tax, financial distress, agency problem, incentive effect of debt, information asymmetry; Static Tradeoff Theory; Pecking order theory of capital structure.

3.    Security Structure of Firm                                                                          6 hours

         Common stock, Preferred stock, convertible debt, warrants and options, and relevant components of Nepalese laws ad regulations (e.g, Company Act, Securities Board's regulations) affecting security design.

4.    Measuring and Evaluating Financial Performance                                     9 hours

         Analysis of financial statements- Balance Sheet, Income Statement, and Cash Flows. Breakeven analysis, analysis of financial ratios, Economic value added (EVA) and limitations of such analysis. Applications of the concepts learnt in analysing companies and industries in the local market.

5.    Methods of Raising Capital                                                                                               

         Commercial Lending (by banks and financial institutions): credit analysis, loan covenants, principles and applications.

         Leasing: significance, types of leases, accounting for leases, the financing decision, lease vs. borrow, lessor's point of view, lessee's point of view

         Public issue of debt and equity: merits and demerits, rights offering, effect on the position of old and new shareholders

         Venture Capital Its structure in the developed market; prospects for adopting in Nepalese environment

6.    Liquidation or turnaround of distressed firm                                             3 hours

         Financial distress; resolving financial distress; private workout and liquidation; legal and regulatory constraints.

7.    Harvesting Business Investment                                                                3 hours

         Planning exit strategy; systematic liquidation, initial public offering, selling to acquiring firm, and current and potential use of these techniques in local market.

Text Books:

1.      James C. Van Horne: Financial management and Policy, Prentice- Hall of India Pvt. Ltd

2.      Brealey, Richard A. and Stewart C. Myers: Principles of Corporate Finance, McGraw-Hill

Reference Books:

1.      Leach, J. C, Melicher, Ronald W, Entrepreneurial Finance, Thomson south -Western

2.      Brealey, Richard A. and Stewart C. Myers: Principles of Corporate Finance, McGraw-Hill

3.      Brigham, Gapanski, Ehourhardt: Financial Management and Theory, Practice, 9 th edition,

4.      Archer, Readings in Finance.