You will examine the development of financial strategy within an organisation. The starting point is the main financial objective of a company, which is to maximise shareholder wealth. We look at various financial and non-financial strategies to achieve this objective as well as ensure organisation goal congruence through effective decision making.

The focus of this module is very much real-world with emphasis on the practical application of financial strategy in today’s dynamic business environment.



This module begins with an introduction to financial objectives and financial management together with issues of ownership and control.



You will proceed to calculate, analyse and interpret a wide range of financial ratios, including capital gearing and investor ratios. Working capital control and cash management techniques will also be examined. The problems with using accounting information and creative accounting will be considered.

You will learn the range of different sources of long, medium and short-term finance available to businesses, including the various forms of equity finance, borrowings, hybrid finance, retained earnings and government-based assistance. This leads to a consideration of the costs of raising different types of finance, and then to the concept of the weighted average cost of capital and the preferred capital structure. We then introduce how stock markets operate, their trading systems and regulation and the efficient market hypothesis.

The module progresses by enhancing the study of investment appraisal evaluation techniques used in practice, including advanced aspects of the use of DCF techniques, consideration of capital rationing and taxation implications. Allowing for inflation and taxation in DCF, adjusting for risk and uncertainty in investment appraisal, and Specific investment decisions (lease or buy, asset replacement, capital rationing).

Presentation (15 mins) (20%) (LOs 2) You will be required to plan a presentation for the group with specific needs and deliver the session during class-time.

An exam length: 2 hours plus 10 minutes reading time. (80%) (LOs 1,3-4)

148 hours of student-centred activities involving reading, self-assessed exercises, case study analysis, feedback and revision.

52 hours of contact time will engage students with 26 hours of formal lectures/large group activity and 26 hours of workshops in which students will engage with a mix of lectures/tutorials/large and small group activities, including presentations and peer assessment and undertake formative assessment.

The increased contact hours above the University standard are to provide essential learning opportunities to gain the appropriate level of attainment for Professional Body exemptions.

The number of study hours for this module is 200 hours to meet the Professional Body accreditation requirements

The lectures will provide the main advanced financial accounting themes, analysis of concepts and their application. This knowledge will be reinforced by the preparation and discussion of questions in the tutorials and by students self-directed study time. The latter will include visiting corporate websites to support the knowledge acquired.

1. Understand the role of financial management in the performance of organisations.

Knowledge & Understanding.

2. Appraise alternative sources of finance for business firms.

Application & Analysis.

3. Apply advanced decision-making techniques in a range of short term and long-term situations and communicate findings.

Application, Communication, Knowledge & Problem Solving.

4. Analyse the financial position and performance of organisations using key ratios

Application & Analysis

Blackboard: VLE, Webinar (Collaborative), Blogs, Discussion Boards, Online Tests

LinkedIn

Social Media (Facebook, Twitter, Instagram)

Microsoft Office Suite

Microsoft 365, Padlet

Guest Speakers

Annual entrepreneurship festival

Lynda.com training tools

McLaney, E. (2014) Business Finance: Theory and Practice. FT Prentice Hall. ISBN 1292016124.

Pike, R. & Neale, B. (2018) Corporate Finance & Investment: Decisions and Strategies, 9th Edition. FT Prentice Hall. ISBN 1292208546

CIMA (2017). F3 Financial Strategy: Study text paperback. CIMA. ISBN 1509715835.

You will examine the development of financial strategy within an organisation. The starting point is the main financial objective of a company, which is to maximise shareholder wealth. We look at various financial and non-financial strategies to achieve this objective as well as ensure organisation goal congruence through effective decision making.