42016 Strategic Finance

Description

This subject gives non-financial managers, especially managers with a technical background, a new way of thinking about measuring and influencing value in their organisation. It covers the fundamentals of finance within the context of technology and the way technology is changing the practice of value creation. A core theme of the subject is the integration of leadership, strategy and finance in driving success in modern technology companies.

The subject provides an introduction to the theories and practical requirements of business planning, raising capital, investment decisions and managing growth within technology companies. In addition, the subject introduces students to the principles valuing technology projects, new product launches, acquisitions and ultimately technology companies.

After introducing essential concepts of measuring value through the financial statements, the subject relates these to technology industries, focusing on the way innovation in technology is reflected in financial ratios. The subject also examines the drivers of value for technology businesses and allows students to explore strategies and tactics that maximise value for shareholders. Drivers of value include an understanding of price, volume and margins from an income statement perspective and working capital management from a balance sheet perspective. The subject also challenges students to evaluate the optimal funding mix for technology projects and companies and assess optimal capital structure. This includes a critical analysis of the risk/reward relationship between raising equity or debt for large projects.