Dr. P.V. Viswanath



Economics/Finance on the Web
Student Interest

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MBA 673: Financial Strategy and Business Decisions
Course Outline and TimeTable - Fall 2014


Class Meeting Days


Projects and other Deadlines

Class 1
September 9

Porter Analysis, Corporate Strategy and Valuation
The interdependence of marketing/ management/ production decisions from the point of view of a project/firm value maximizing manager

Form your groups

Class 2
September 16

Introduction to Dupont Analysis
How Marketing Strategy can be improved/monitored through Dupont Analysis

Porter Model Assignment due

Class 3
September 23

Implementation of Dupont Strategies
Case Analysis: TJX vs Nordstrom
Group exercise: Pick two or more firms and analyze their volume/margin strategies with respect to their Dupont ratios
Working Capital and Supply Chains

Group Assignment on Profit Margins vs. Volume Due
Read Profit Leveraging (from Blackboard)
Submit 1/2-1 page summary of group assignment on Dupont Analysis of Firms

Class 4
September 30

Capital Structure and Stockholder Incentives

Chapter 16, "Bankruptcy Costs and Debtholder-Equityholder Conflicts" in Grinblatt and Titman (2001)
Group Assignment on Dupont Analysis of Firms Due
Ideas for Term Project -- one page write up due

Class 5
October 7

Capital Structure and Stockholder Incentives

Chapter 17, “Capital Structure and Corporate Strategy” in Grinblatt and Titman (2001)

Class 6
October 14

Capital Structure and Competitive Strategy
Talk by Prof. Kostakopoulos

Chapter 17, “Capital Structure and Corporate Strategy” in Grinblatt and Titman (2001)
Short-Sighted Investment Problem Due

Class 7
October 21

Presentation by Daria Musk
Capital Structure and Competitive Strategy
Review for Midterm

"Caterpillar Workers Ratify Deal They Dislike," New York Times, Aug. 18, 2012. (In Media Articles)

Class 8
October 28



Class 9
November 4

Capital Structure and Operating Decisions
Slides (See Blackboard for Video)


Class 10
November 11

Group Presentation
Risk Management -- Introduction and Tools

Regression; Hedging Techniques – Options, Futures, Forwards;
Bodie, Merton and Cleeton, Chaps. 10 and 11

Class 11
November 18

Presentation by Jim Nish
Hedging and Improved Planning for Future Capital Needs
Hedging and Improved Management Compensation Design

Chapter 21: Risk Management and Corporate Strategy in Grinblatt and Titman (2001)
Class 12
November 25

Risk Management and the Firm
Hedging and Reduction of Financial Distress Costs
Financial Flexibility and Operational Flexibility

Chapter 16: Risk Management in Nonbank Corporations in Crouhy, Galai and Mark (2001)
“A Framework For Risk Management,” by Kenneth Froot, David Scharfstein and Jeremy Stein in HBR (1994)
Chapters 3 and 4: A Firm-Wide Approach to Risk Management in Rene Stulz, Risk Management and Derivatives
The importance of financial flexibility, Sept. 9, 2005
, Financial Times (accessible from Media Articles Page under Finance and Strategy.

Class 13
December 2

Risk Management: Case
Group Presentations

Risk Management at Apache, HBS case 9-201-113; write-up due by midnight by email.
Class 14
December 9

Final Exam


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