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
Course Outline and TimeTable - Fall 2012


Class Meeting Days


Projects and other Deadlines

Class 1
September 6

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 13

How Marketing Strategy can be improved/monitored through Modified Dupont
Guest lecturer: Prof. Chiagouris

Class 3
September 20

Case Analysis: TJX vs Nordstrom
Group exercise: Pick two or more firms and analyze their volume/margin strategies with respect to their Dupont ratios

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

Class 4
September 27

Capital Structure and Stockholder Incentives

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
Library Resources -- workshop with Sarah Burns in Room 200A in the Library at 3:20 pm

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

Class 6
October 11

Capital Structure and Pricing Decisions
Capital Structure and Bargaining

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

Class 7
October 18

Capital Structure and Competitive Strategy
Capital Structure and Location Decisions

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

Class 8
October 25



Class 9
November 1
Capital Structure and Entrepreneurship
Guest Lecturer: Casey Frid

Class 10
November 8

Group Presentation
Risk Management -- Introduction and Tools

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

Class 11
November 15

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 29

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

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

Class 13
December 6

Risk Management: Case
Group Presentations

Risk Management at Apache, HBS case 9-201-113; write-up due before class by email.
Class 14
December 13

Final Exam



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