Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor
Anthony Carlton
Contact via Email
Lecturer
Roger Casey
Contact via Email
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Credit points |
Credit points
2
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Prerequisites |
Prerequisites
(Admission to MAppFin or GradDipAppFin) and ECFS866
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Corequisites |
Corequisites
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Co-badged status |
Co-badged status
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Unit description |
Unit description
Using a corporate portfolio review framework, this unit analyses the relationship between resource allocation decisions and shareholder value. It focuses on the following key areas: performance measurement of business units, capital investment and corporate portfolio and restructuring strategies. The unit explores how analytical techniques and key transactions (acquisition, divestments and spin offs) can be used to implement key corporate strategies. It will also include an analysis of the costs and benefits of diversification strategies. Internal decision making processes, including capital expenditure evaluation and the setting of performance targets and investment criteria, will be examined using a number of perspectives including value based management, behavioural finance, agency models, and remuneration design. This unit will suit students involved in developing corporate and business development strategies, investment and corporate bankers who might advise CFO's on growth and portfolio restructuring strategies, and equity analysts.
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Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
On successful completion of this unit, you will be able to:
To pass this unit (requires a Mark of 50 or better) the student must pass the final examination.
Name | Weighting | Hurdle | Due |
---|---|---|---|
Pre-Unit Assignment | 10% | No | First Class |
Assignment | 35% | No | Refer to iLearn |
Final Exam | 55% | Yes | Refer to Timetable |
Due: First Class
Weighting: 10%
Summary of Assessment Task
Individual / Group: Individual
Due Date: First Class
Grading Method: Refer to 'Standards Required to Complete the Unit Satisfactorily' section
Submission Method: At or before the first class. Please bring a copy to class for class use as well.
Duration: Refer to Assignment Coversheet
Extension Requests:
Due: Refer to iLearn
Weighting: 35%
Summary of Assessment Task
Individual / Group: Individual
Due Date: Refer to the Unit's iLearn site
Grading Method: Refer to 'Standards Required to Complete the Unit Satisfactorily' section
Submission Method: Online via Turnitin on iLearn site
Duration: Refer to Assignment Coversheet
Extension Requests:
Other Information:
Due: Refer to Timetable
Weighting: 55%
This is a hurdle assessment task (see assessment policy for more information on hurdle assessment tasks)
Summary of Assessment Task
Individual / Group: Individual
Due Date: Refer to Timetable.
Assessments: Different Class Groups have different deadlines. Students should find the timetable and dates relevant to their group at www.mafc.mq.edu.au
Grading Method: Refer to 'Standards Required to Complete the Unit Satisfactorily' section
Submission Method: As per MAFC Program Rules & Procedures at www.mafc.mq.edu.au
Duration: 2 hours plus 10 minutes reading time
Examination Conditions:
Extension Requests:
Face-to-Face Teaching: Generally 18 hours
Timetable: Detailed timetable for classes are on the Centre’s web site www.mafc.mq.edu.au
Consultation Times:
Students who wish to contact any of the teaching staff may do so through:
Text: Nil
Course Resources:
Lecture Notes: Available in printed form and electronically via iLearn.
Case Studies:
Pre-Unit Materials:
Useful References:
Calculators:
Assumed Access:
Unit iLearn Site:
Important Notice:
We initially review the concept of shareholder value and the impact it has on key decisions, particularly capital allocation and performance measurement. We then consider the implications of this for how we make decisions, and introduce the ideas of Value Based management. We consider issues around Stay in Business capital as an illustration.
Key learning outcomes for this topic:
Readings
We consider challenges in managing a portfolio of businesses, and then examine the motivations, potential benefits and downsides in undertaking a portfolio / performance review, and identify a structured process for driving a portfolio / performance review.
Key learning outcomes for this topic:
Readings
Ulrich Pidun, Harald Rubner, Matthias Kruhler and Robert Untiedt, “Corporate Portfolio Management: Theory and Practice”, Journal of Applied Corporate Finance, Volume 23. No 1, Winter, 2011, pp 63 - 76
Undertaking a portfolio review involves the joint application of strategy skills with those of corporate finance. In this topic we present the key strategic frameworks used in practice, with a focus on exploring the link between real world strategy and financial performance.
Key learning outcomes for this topic:
Readings
This topic will also demonstrate how to use skills from ECFS866 Corporate Finance to undertake a value creation audit and identify problem areas in a portfolio. We initially examine the first step in the review process: identifying any perceptions gap. We then describe how to assess historical value creation track record, and assess value creation potential for companies and businesses.
Readings
This topic describes how the concept of Shareholder Value is used to provide guidance for target setting, performance measurement of business segments and incentive design. Using financial modelling and the concept of Residual Income/Economic Value Added we describe how to identify the key sources of value creation in a business.
Key learning outcomes for this topic:
Readings
Capital expenditure processes exist in all companies, with various degrees of formality and effectiveness. This topic reviews the many challenges to effective capital investment decisions, and addresses how best to make these decisions consistent with shareholder value maximization.
Case Studies: Diamond Chemicals & Eurolands case study.
Key learning outcomes for this topic:
Readings
Portfolio reviews often result in the decision to exit certain businesses. The decision to exit could be driven purely by performance / strategic related issues, or could relate to overall funding requirements of the organisation. This topic examines the motives for exiting businesses, considers which elements of the portfolio should be considered for exit, as well as the range of exit and restructuring mechanisms available, ranging from closure to divestment and various forms of equity market exits.
Case Study: Project Titan at Northrop Grumman
Key learning outcomes for this topic:
Readings
This topic examines the role of financial strategies in restructuring strategies. The unit concludes with a brief re-examination of the portfolio review process describe in Topic 1.
Key learning outcomes for this topic:
Critically evaluate the portfolio / performance review process described in the unit.
Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:
Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html
Assessment Policy http://mq.edu.au/policy/docs/assessment/policy_2016.html
Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html
Complaint Management Procedure for Students and Members of the Public http://www.mq.edu.au/policy/docs/complaint_management/procedure.html
Disruption to Studies Policy (in effect until Dec 4th, 2017): http://www.mq.edu.au/policy/docs/disruption_studies/policy.html
Special Consideration Policy (in effect from Dec 4th, 2017): https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policies/special-consideration
In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/
Results shown in iLearn, or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au.
Students should also consult the MAFC Program Rules & Procedures found at http://www.mafc.mq.edu.au
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
For all student enquiries, please contact studentsupport@mafc.mq.edu.au
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
Learning Skills (http://www.students.mq.edu.au/support/learning_skills/) provides academic writing resources and study strategies to improve your marks and take control of your study.
For all student enquiries, visit Student Connect at ask.mq.edu.au
For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/.
When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.
Our postgraduates will demonstrate a high standard of discernment and common sense in their professional and personal judgment. They will have the ability to make informed choices and decisions that reflect both the nature of their professional work and their personal perspectives.
This graduate capability is supported by:
Our postgraduates will be capable of utilising and reflecting on prior knowledge and experience, of applying higher level critical thinking skills, and of integrating and synthesising learning and knowledge from a range of sources and environments. A characteristic of this form of thinking is the generation of new, professionally oriented knowledge through personal or group-based critique of practice and theory.
This graduate capability is supported by:
Our postgraduates will be capable of systematic enquiry; able to use research skills to create new knowledge that can be applied to real world issues, or contribute to a field of study or practice to enhance society. They will be capable of creative questioning, problem finding and problem solving.
This graduate capability is supported by:
Our postgraduates will be ethically aware and capable of confident transformative action in relation to their professional responsibilities and the wider community. They will have a sense of connectedness with others and country and have a sense of mutual obligation. They will be able to appreciate the impact of their professional roles for social justice and inclusion related to national and global issues
This graduate capability is supported by:
This Unit Guide may be subject to change. The latest version is on the Centre’s web site www.mafc.mq.edu.au.
Students should read the Unit Guide carefully at the start of semester. It contains important information about the unit. If anything is unclear, please consult one of the unit lecturers.
University Policy on Grading:
Specific Unit Grading:
Grade | Expectation |
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High Distinction | Provides consistent evidence of deep and critical understanding in relation to the learning outcomes. There is substantial originality and insight in identifying, generating and communicating competing arguments, perspectives or problem solving approaches; critical evaluation of problems, their solutions and their implications; creativity in application as appropriate to the discipline. |
Distinction | Provides evidence of integration and evaluation of critical ideas, principles and theories, distinctive insight and ability in applying relevant skills and concepts in relation to learning outcomes. There is demonstration of frequent originality in defining and analysing issues or problems and providing solutions; and the use of means of communication appropriate to the discipline and the audience. |
Credit | Provides evidence of learning that goes beyond replication of content knowledge or skills relevant to the learning outcomes. There is demonstration of substantial understanding of fundamental concepts in the field of study and the ability to apply these concepts in a variety of contexts; convincing argumentation with appropriate coherent justification; communication of ideas fluently and clearly in terms of the conventions of the discipline. |
Pass | Provides sufficient evidence of the achievement of learning outcomes. There is demonstration of understanding and application of fundamental concepts of the field of study; routine argumentation with acceptable justification; communication of information and ideas adequately in terms of the conventions of the discipline. The learning attainment is considered satisfactory or adequate or competent or capable in relation to the specified outcomes. |
Fail | Does not provide evidence of attainment of learning outcomes. There is missing or partial or superficial or faulty understanding and application of the fundamental concepts in the field of study; missing, undeveloped, inappropriate or confusing argumentation; incomplete, confusing or lacking communication of ideas in ways that give little attention to the conventions of the discipline. |
Fail Hurdle | Student has obtained a raw mark over 50, yet failed all available attempts of at least one hurdle assessment. |
Review of Grade and final examination Script viewing:
Date | Description |
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29/08/2017 | Assessments Tasks section updated. |