Managing Shareholder Value (AFCP862)

This unit will be known as Capital Allocation Strategies from 2018.

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 CFOs on growth and portfolio restructuring strategies, and equity analysts.

Learning Outcomes:

  1. Understand and communicate the rationale for a corporate portfolio review, and how best to undertake and implement one.
  2. Apply appropriate analytical techniques to evaluate historical and prospective value creation performance of companies and business segments.
  3. Understand the key principles of Value Based Management and clearly articulate the impact it has on the selection of performance measures and target setting.
  4. Able to combine strategic analysis tools and valuation skills to assess value creation potential of businesses.
  5. Critically evaluate capital expenditure decisions against a best practice model.
  6. Critically evaluate alternative mechanisms for exiting selected business segments.
  7. Understand and evaluate the role that financial strategy plays in driving and supporting value creation strategies, particularly in the context of portfolio restructuring.

Topics:

  1. Putting Shareholder Value Into Practice
  2. Portfolio Review Process
  3. Review of Strategic Frameworks
  4. Valuation Analysis and Value Creation Audit
  5. Managing for Value
  6. Capital Allocation Strategies and Processes
  7. Strategies for Restructuring/Exiting Businesses
  8. Financial Strategy

Prerequisite Units:

Lecturers:

Unit Guides:

  • Managing Shareholder Value - Sydney and Melbourne. The link will provide a list of guides for this unit. If the desired term/location is not listed, please view the latest one available.

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