Week Course Description
Topic # 1 Profitability & Pricing Models (Two Sessions)
1 Planning & Control Systems - An Overview
Reading for next week:
Case study Reading: Hamilton Drives Limited
Case Analysis # 1 for submission: To be posted at A2L
2 Business Model and Pricing Decisions
Planning for Profit; Case & Applications
Learning Outcomes: Topic #1
- Review of corporate goals and objectives - Short & Long-terms
- Understanding Information needs for business decisions
- Concepts of planning & Controls - Current Best Practices
- Business Model - Planning for Profits, Pricing Models
- Cost / Market / Economic / Value Based Pricing strategies
- Case Analysis: Case discussion and developing viable solutions for reporting
Key Concepts:
- CVP analysis, Activity Based Costing, Cost Allocations, Pricing Models
- Planning for Profit - Operational focus and sustainability
Topic # 2 Decentralization & Transfer Pricing (Two Sessions)
3 Decentralization & Transfer Pricing
Case assignment due: Case
# 1
4 Transfer Pricing – Theory & Case Discussions
Case discussion and solution: Securities International
Case Analysis #2 for submission: To be posted at A2L
Learning Outcomes: Topic #2
- Concepts of decentralization in organizations and Transfer Pricing
- Transfer pricing between autonomous divisions – Local / Global
- Relevance of Goal Congruence, Autonomy and Managerial Motivation
- Case Analysis: Discussion and developing viable solutions for case reporting
Key Concepts:
- Marginal Costs, Contribution Margin, Break-even volume, Financial Analysis, Taxes,
- Basic economic principles – supply and demand and impact on costing and pricing
- Performance evaluation of decentralized business units
- Tax considerations in transfer pricing
Topic # 3 Business Performance (Two sessions)
5 Performance Evaluation – Key Financial aspects
6 Performance Evaluation - Non-Financial aspects
- Case assignment due: Case # 2
Learning Outcomes: Topic #3
- Understanding commonly used performance evaluation systems
- Concept of ROE / ROI, Economic Value Added (EVA)
- Developing Financial Metrics for Short & Long-term focus (Sustainability)
- Understanding of Key Result Areas (KRA) / Critical Success Factors (CSF)
- Key Performance Indicators (KPI) meeting corporate strategy and objectives
- Understanding Balanced Scorecard & Developing ‘Strategy Maps’ for implementation
- Case for discussion: Peanut Butter Company
Key Concepts:
- Financial Performance, Asset Management, Required Returns, Financial Ratios
- Capital Structure, Sustainability, Economic Value Added
- Integrating Strategy and operational goals and objectives
- Introduction to Balanced Scorecard
7 Mid-term Exam (To be written in-class and proctored)
Topic # 4 Capital Expenditure Decisions (Two sessions)
8 Capital Expenditure Decisions
9 Capital Expenditure Decisions (Risk Management)
Learning Outcomes: Topic #4
- Understanding the concept of Time value of money, compounding / discounting applications
- Cost of capital and its application in Capital Expenditure Decisions
- Tools: Payback, Net present Value (NPV), Internal Rate of Return (IRR), Accounting Rate of Return (ARR)
- Risk analysis in Capital Budgeting
Key Concepts:
- Compounding and Discounting & Managerial Decisions
- Capital structure, Asset Management and Investment Decisions
- Tax Considerations in investment decisions
- Risk Management in capital budgeting
Topic # 5 Non-Profit Organizations (One and a half Sessions)
10 Non-profit organizations - Basic control systems (Handouts)
Case Assignment # 3: To be posted at A2L
11 Non- Profit Organizations - Case analysis (Handouts)
Learning Outcomes: Topic #5
- Understanding NPO / NFPO and their Planning & Control requirements
- Budgetary process in NPO / NFPO - (Program Planning / Zero-Based Budgeting)
- Capital Structure and Investment for Non-Profit Organizations
- Performance Metrics / Balanced Scorecard
- Case assignment Submission due: Case # 3
Key Concepts:
- Program Budgeting / Zero-base budgeting / Program Management
- CM approach and Service Strategy in NPO
- Restructuring financial information into program budgeting format
- Building a Balanced Scorecard for performance evaluation and strategy execution
Topic # 6 Strategy, Planning & Control Systems (Half a session)
12 Strategy Focused Organizations:
Further look at Corporate Governance System
Learning Outcomes: Topic # 6
- Integration: Organizational Strategy, Operations and Performance
- Understanding Business Drivers towards Financial & Non-Financial metrics
- Designing and implementing a Balanced Scorecard / Current Best Practices
Key Concepts:
- Linking Strategy and Operational execution - Strategy Maps- better alignment of resources
- Designing and implementing planning & control systems in organizations
- Integration: Elements of Economics / Operations /Marketing /IT /HR/Finance in
designing an effective planning & control system
13 Final Examination (To be written in-Class, Proctored)