Dr. P.V. Viswanath



Economics/Finance on the Web
Student Interest

  Courses / MBA 673/ Course Outline and TimeTable  

MBA 673: Applying Financial Theory to Strategic Decision-Making
Tentative Course Outline and TimeTable - Fall 2012


Class Meeting Days


Projects and other Deadlines

Class 1
September 6

Porter Analysis, Corporate Strategy and Valuation
Objective: To show the dependence of project/firm valuation on marketing/ management/ production decisions

Form your groups

Class 2
September 13

How Marketing Strategy can be improved/monitored through Modified Dupont

Class 3
September 20

Case Analysis: TJX vs Nordstrom

Palepu, Healy and Bernard, Chapter 5
Case: Nordstrom vs. TJX

Class 4
September 27

Interactions between Capital Structure and Strategic Decision-Making

Chapter 16, "Bankruptcy Costs and Debtholder-Equityholder Conflicts" in Grinblatt and Titman (2001)

Class 5
October 04

Capital Structure and Product Quality
Capital Structure and Hiring Policy
Capital Structure and Pricing Decisions

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

Class 6
October 11

Capital Structure and Bargaining
Capital Structure and Competitive Strategy
Capital Structure and Location Decisions

Chapter 17, “Capital Structure and Corporate Strategy” in Grinblatt and Titman (2001)
"Caterpillar Workers Ratify Deal They Dislike," New York Times, Aug. 18, 2012.

Class 7
October 18



Class 8
October 25

Risk Management and the Firm
Hedging and Reduction of Financial Distress Costs
Hedging and Improved Planning for Future Capital Needs
Hedging and Improved Management Compensation Design

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

Chapter 21: Risk Management and Corporate Strategy in Grinblatt and Titman (2001)

Class 9
November 1

Risk Management -- Tools
Group Presentations

Regression; Hedging Techniques – Options, Futures, Forwards

Class 10
November 8

Risk Management: Case

Case: Risk Management at Apache, HBS case 9-201-113

Class 11
November 15

Real Options: Introduction

Chapter 11.2, “Valuing Strategic Options with the Derivatives Methodology” in Grinblatt and Titman (2001)
Chapters 1-4 from Copeland and Antikarov (2003)

Class 12
November 29

Real Options: Techniques

Chapter 5: “Numerical Methods for Simple Options” from Copeland and Antikarov (2003)
Class 13
December 6

Real Options:

CITIC Tower II Case

Class 14
December 13

Final Exam

Go to Prof. P.V. Viswanath's Home Page

Go to MBA 673 Home Page