The document provides an overview of value-based management (VBM). It discusses key concepts of VBM including linking it to disciplines like finance, business strategy, and accounting. It also outlines different approaches to VBM including the Marakon, Alcar, McKinsey, Stern Stewart, and BCG approaches. The Marakon approach specifies financial and strategic drivers of value and formulates higher value strategies. The Alcar approach identifies seven value drivers that affect shareholder value. The document illustrates how to determine the value created by a new strategy using projections of financial statements and cash flows.
This document discusses value-based management (VBM) and its implementation. It defines VBM as a management approach that puts shareholder value creation as the core philosophy. VBM is intended to effectively link strategy, measurement, and operations to create shareholder value. The document outlines the generic VBM framework, key value drivers, example metrics like EVA and ROIC, and challenges in implementing VBM like gaining manager buy-in. It provides examples of successful VBM implementations at companies like Coca-Cola and notes that top management support is critical to smooth adoption of VBM.
This presentation is on Credit rating agencies in India. here I presents it's origin, importants, benefits, objectives, need and about different rating agencies.
Credit rating agencies provide independent ratings of issuers' ability to repay their debts. The document discusses major international and Indian credit rating agencies such as Moody's, S&P, CRISIL, ICRA, CARE, and others. It defines credit ratings, explains different rating scales, and provides brief histories of the large agencies. Major services of agencies include rating government bonds, corporate bonds, and other debt instruments in both domestic and international markets.
The document discusses the history and functions of the Securities and Exchange Board of India (SEBI). It states that SEBI was established in 1988 and given statutory powers in 1992 to regulate the securities market and protect investors. The key functions of SEBI include regulatory functions, development functions, and powers from the Securities Contract Regulation Act. SEBI regulates various intermediaries in the capital market like merchant bankers, underwriters, stock brokers, bankers to issues, and registrars through various rules and guidelines.
The document discusses strategic financial management and value-based management approaches. It defines strategic financial management as identifying strategies to maximize net present value and implementing and monitoring chosen strategies. Value-based management seeks to maximize shareholder value using techniques like discounted cash flow analysis. Common VBM methods include free cash flow, economic value added, and cash flow return on investment.
This document discusses issues in analyzing foreign investment projects. It outlines several key complications in capital budgeting for foreign projects, including multiple currencies, tax rates and systems, exchange rate fluctuations, and political risks. Some of the main challenges covered are determining cash flows to the parent company versus the project entity, dealing with host and home country taxation, restrictions on repatriating earnings, and incorporating country-specific risks into the evaluation. The document provides an overview of common methods for evaluating foreign investments and lists important information needed for accurate analysis.
This document discusses value-based management (VBM) and its implementation. It defines VBM as a management approach that puts shareholder value creation as the core philosophy. VBM is intended to effectively link strategy, measurement, and operations to create shareholder value. The document outlines the generic VBM framework, key value drivers, example metrics like EVA and ROIC, and challenges in implementing VBM like gaining manager buy-in. It provides examples of successful VBM implementations at companies like Coca-Cola and notes that top management support is critical to smooth adoption of VBM.
This presentation is on Credit rating agencies in India. here I presents it's origin, importants, benefits, objectives, need and about different rating agencies.
Credit rating agencies provide independent ratings of issuers' ability to repay their debts. The document discusses major international and Indian credit rating agencies such as Moody's, S&P, CRISIL, ICRA, CARE, and others. It defines credit ratings, explains different rating scales, and provides brief histories of the large agencies. Major services of agencies include rating government bonds, corporate bonds, and other debt instruments in both domestic and international markets.
The document discusses the history and functions of the Securities and Exchange Board of India (SEBI). It states that SEBI was established in 1988 and given statutory powers in 1992 to regulate the securities market and protect investors. The key functions of SEBI include regulatory functions, development functions, and powers from the Securities Contract Regulation Act. SEBI regulates various intermediaries in the capital market like merchant bankers, underwriters, stock brokers, bankers to issues, and registrars through various rules and guidelines.
The document discusses strategic financial management and value-based management approaches. It defines strategic financial management as identifying strategies to maximize net present value and implementing and monitoring chosen strategies. Value-based management seeks to maximize shareholder value using techniques like discounted cash flow analysis. Common VBM methods include free cash flow, economic value added, and cash flow return on investment.
This document discusses issues in analyzing foreign investment projects. It outlines several key complications in capital budgeting for foreign projects, including multiple currencies, tax rates and systems, exchange rate fluctuations, and political risks. Some of the main challenges covered are determining cash flows to the parent company versus the project entity, dealing with host and home country taxation, restrictions on repatriating earnings, and incorporating country-specific risks into the evaluation. The document provides an overview of common methods for evaluating foreign investments and lists important information needed for accurate analysis.
This presentation covers Merchant Banking History; Categories; Services provided by them; Methods of placement; underwriting; Issue management & SEBI guidelines.
This document discusses corporate misgovernance and governance issues in India and other countries. It provides examples of corporate scandals in India like the Harshad Mehta case and preferential allotment scam. Examples from the US like the Worldcom and Enron scandals are also mentioned. Reasons for misgovernance like a closed economy and lack of regulatory frameworks are discussed. The document also covers various corporate governance models and theories. It examines the roles, composition and responsibilities of boards of directors. Benefits of good governance and issues regarding boards, disclosure, and shareholder rights are summarized.
(1) The Securities and Exchange Board of India (SEBI) was established in 1992 to protect investors' interests and regulate the securities market.
(2) SEBI regulates stock exchanges, brokers, mutual funds and enforces regulations related to public issues, investments, and fraud prevention.
(3) It aims to make the process of public offers easier for retail investors by reducing timelines and disclosure requirements. SEBI periodically reviews regulations and seeks public feedback.
The document summarizes William Sharpe's single index model from 1963, which simplified Harry Markowitz's earlier portfolio selection model. The single index model assumes that only one macroeconomic factor, represented by a market index like the S&P 500, influences the systematic risk of stock returns. It expresses the return of a security as the sum of its expected excess return, its sensitivity to market movements, and random error. This allows estimating portfolio variance and minimum variance portfolios based only on market risk rather than the full covariance matrix.
This document discusses risk analysis in investment. It defines risk as the potential for losing value and discusses different types of risk like financial risk and project-specific risk. It also outlines various techniques used for risk analysis like sensitivity analysis, probability distribution approach, and payback period. As an example, it shows how adjusting the discount rate for risk can impact a project's net present value. Overall, the document provides an overview of risk analysis in investments, outlining key concepts like different risk types and techniques used to evaluate risk.
Ratio analysis involves calculating and interpreting various financial ratios to evaluate a company's liquidity, solvency, operational efficiency, and profitability. Key ratios include current ratio, quick ratio, debt-to-equity ratio, inventory turnover, gross profit margin, return on equity, and earnings per share. Ratio analysis is used to analyze a company's financial health and performance over time as well as compare it to other companies.
Corporate governance aims to balance the interests of various stakeholders. SEBI was established in 1988 to protect small investors and regulate stock markets in India. In 2003, SEBI announced an amended Clause 49 which prescribes corporate governance norms that listed companies must follow. Key aspects of Clause 49 include requirements regarding board composition and director independence, related party transactions, audit committees, and disclosure of financial/other information.
Modigliani and Miller initially developed their capital structure approach in 1958 without considering taxes. They argued that a firm's value and cost of capital are independent of its capital structure. In 1963, they revised their approach to include taxes. When taxes are considered, firm value increases with leverage as interest expenses are tax deductible, creating a tax shield. The value of a levered firm exceeds an unlevered firm by the amount of debt multiplied by the tax rate.
The Cadbury Committee was set-up in May 1991 by the Financial Reporting Council of the London Stock Exchange.
The committee published its report in December 1992.
Adrian Cadbury the chairman of the Cadbury committee.
The report sets out recommendations on the arrangement of company boards and accounting systems to mitigate corporate governance risks and failures.
This document provides an overview of corporate governance in India. It defines corporate governance and outlines the key players, principles, and objectives. It discusses the development of corporate governance in India, including economic reforms in the 1990s. It also summarizes the role of the Securities Exchange Board of India in regulating markets after major scandals in the 1990s and 2000s, including the introduction of Clause 49 to strengthen board oversight. Finally, it provides details of the large Satyam scandal of 2009 that damaged investor trust.
This document provides an overview of securitization, including:
- Securitization is the process of converting illiquid assets into liquid assets by pooling them and selling securities backed by the pooled assets.
- The key participants are originators, special purpose vehicles, investors, and servicers. Assets like mortgages, credit cards, auto loans can be securitized.
- Benefits include off-balance sheet financing for originators and returns for investors. Risks include collateral, structural, legal, and third party risks.
- India has taken steps to regulate securitization but lacks a comprehensive framework and standardization.
Narayan murthy report on corporate governanceDhruvKothari13
The document summarizes the key recommendations from the Narayana Murthy Committee Report on Corporate Governance in India from 2003. The committee was formed by SEBI under Murthy's chairmanship to review corporate governance standards and disclosure requirements. The committee recommended several mandatory requirements, such as strengthening audit committees, requiring approval of related party transactions, and establishing whistleblower policies. It also recommended non-mandatory best practices around moving to unqualified financial statements, training board members, and evaluating board performance. The recommendations aimed to improve transparency, accountability and investor protection in Indian markets.
Credit ratings are evaluations of a debtor's ability to pay back debt, conducted by credit rating agencies. They use both public and private qualitative and quantitative information to assess risk of default. Credit ratings indicate the likelihood that bond obligations will be paid back and are used by investors to determine risk-return tradeoffs. Higher credit ratings indicate lower risk while lower ratings suggest higher risk of default. The document outlines the meaning and purpose of credit ratings, benefits to investors and companies, types of ratings, major credit rating agencies, and their methodology.
Models of corporate Governance presented by Dushyant MaheshwariDUSHYANT MAHESHWARI
This document discusses four main models of corporate governance:
1) The Anglo-American model focuses on separation of ownership and control with shareholders appointing directors who appoint managers. Boards usually have a mix of executive and independent directors.
2) The German model uses a two-tier board structure with a supervisory board elected equally by shareholders and employees/unions overseeing a management board.
3) The Japanese model involves cross-shareholdings between companies and banks/financial institutions jointly appointing boards dominated by division heads rather than independent directors.
4) The Indian model combines Anglo-American and German influences, with private companies following the German model of family/promoter control and public sectors following
Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. Factoring is commonly referred to as accounts receivable factoring, invoice factoring, and sometimes accounts receivable financing.
There are three parties directly involved: the factor who purchases the receivable, the one who sells the receivable, and the debtor who has a financial liability that requires him or her to make a payment to the owner of the invoice.
There are various types of factoring:
Recourse, Non - recourse, maturity and cross - border factoring.
The document introduces the EIC model for security selection. The EIC model analyzes the economy, industry, and company. For economic analysis, it evaluates whether an economy allocates resources effectively by comparing alternatives and opportunity costs. Industry analysis uses Porter's five forces model to examine threats, suppliers, industry structure, and demand/supply conditions. Company analysis identifies attractive companies by assessing financial performance, efficiency, capital structure, and competitive edge using value and growth approaches.
This document provides an overview of leasing. It discusses the history and meaning of leasing, including definitions from experts. It outlines the steps in a typical leasing process and describes various types of leases. The advantages to lessors include assured regular income, preservation of ownership, tax benefits, and high profitability. Advantages to lessees are use of capital goods, tax benefits, cheaper financing, and technical assistance. Disadvantages are also presented, such as inflation risk for lessors and compulsory payments even if the asset is not needed for lessees. In summary, the document defines leasing, outlines the leasing process, and discusses the pros and cons from the perspectives of both lessors and les
The document discusses funds flow statements and their preparation. It provides definitions of key terms like working capital and flow of funds. It explains that a funds flow statement depicts changes in working capital between two balance sheet dates by analyzing changes in current assets and current liabilities. The summary also shows how to prepare schedules of changes in working capital and sources and uses of funds statements to analyze the flow of funds.
The document summarizes the roles and functions of the Securities and Exchange Board of India (SEBI). It discusses that SEBI was established in 1988 by the Government of India and was upgraded to a statutory board in 1992. It describes SEBI's objectives to protect investor interests and promote fair practices in securities markets. The document outlines SEBI's regulatory functions such as registration of intermediaries and prohibition of unfair trade practices. It also discusses SEBI's developmental functions like investor education and research. The powers and departments of SEBI are presented. Recent regulatory cases involving Vedanta-Cairn and Deccan Chronicle Holdings are also summarized.
VBM is a managerial process that links strategy, measurement, and operations to create shareholder value. It focuses on holistically managing the organization to create value for stakeholders as defined by management priorities. VBM uses analytical methods and technology in an integrated framework to deploy strategy, manage processes, and create value by focusing on activities, jobs, compensation, and organizational structure. While implementation faces behavioral, technical, organizational, and managerial challenges, adopting VBM performance measures relevant to each organization can help effectively create and increase firm value as demonstrated by many Fortune 100 companies.
This document discusses the importance of values in management and organizations. It defines values as important beliefs that guide behavior and attitudes. Values influence culture and provide guidelines. There are different types of values like terminal and instrumental. Values are important for organizations as they bind people together, provide a common language, and guide behavior to achieve goals. Aligning personal and organizational values improves decision making and commitment. The document recommends organizations assess employee and organizational values to ensure alignment. When values are congruent, it provides a strong framework for consistency and relationships, allowing the organization to grow.
This presentation covers Merchant Banking History; Categories; Services provided by them; Methods of placement; underwriting; Issue management & SEBI guidelines.
This document discusses corporate misgovernance and governance issues in India and other countries. It provides examples of corporate scandals in India like the Harshad Mehta case and preferential allotment scam. Examples from the US like the Worldcom and Enron scandals are also mentioned. Reasons for misgovernance like a closed economy and lack of regulatory frameworks are discussed. The document also covers various corporate governance models and theories. It examines the roles, composition and responsibilities of boards of directors. Benefits of good governance and issues regarding boards, disclosure, and shareholder rights are summarized.
(1) The Securities and Exchange Board of India (SEBI) was established in 1992 to protect investors' interests and regulate the securities market.
(2) SEBI regulates stock exchanges, brokers, mutual funds and enforces regulations related to public issues, investments, and fraud prevention.
(3) It aims to make the process of public offers easier for retail investors by reducing timelines and disclosure requirements. SEBI periodically reviews regulations and seeks public feedback.
The document summarizes William Sharpe's single index model from 1963, which simplified Harry Markowitz's earlier portfolio selection model. The single index model assumes that only one macroeconomic factor, represented by a market index like the S&P 500, influences the systematic risk of stock returns. It expresses the return of a security as the sum of its expected excess return, its sensitivity to market movements, and random error. This allows estimating portfolio variance and minimum variance portfolios based only on market risk rather than the full covariance matrix.
This document discusses risk analysis in investment. It defines risk as the potential for losing value and discusses different types of risk like financial risk and project-specific risk. It also outlines various techniques used for risk analysis like sensitivity analysis, probability distribution approach, and payback period. As an example, it shows how adjusting the discount rate for risk can impact a project's net present value. Overall, the document provides an overview of risk analysis in investments, outlining key concepts like different risk types and techniques used to evaluate risk.
Ratio analysis involves calculating and interpreting various financial ratios to evaluate a company's liquidity, solvency, operational efficiency, and profitability. Key ratios include current ratio, quick ratio, debt-to-equity ratio, inventory turnover, gross profit margin, return on equity, and earnings per share. Ratio analysis is used to analyze a company's financial health and performance over time as well as compare it to other companies.
Corporate governance aims to balance the interests of various stakeholders. SEBI was established in 1988 to protect small investors and regulate stock markets in India. In 2003, SEBI announced an amended Clause 49 which prescribes corporate governance norms that listed companies must follow. Key aspects of Clause 49 include requirements regarding board composition and director independence, related party transactions, audit committees, and disclosure of financial/other information.
Modigliani and Miller initially developed their capital structure approach in 1958 without considering taxes. They argued that a firm's value and cost of capital are independent of its capital structure. In 1963, they revised their approach to include taxes. When taxes are considered, firm value increases with leverage as interest expenses are tax deductible, creating a tax shield. The value of a levered firm exceeds an unlevered firm by the amount of debt multiplied by the tax rate.
The Cadbury Committee was set-up in May 1991 by the Financial Reporting Council of the London Stock Exchange.
The committee published its report in December 1992.
Adrian Cadbury the chairman of the Cadbury committee.
The report sets out recommendations on the arrangement of company boards and accounting systems to mitigate corporate governance risks and failures.
This document provides an overview of corporate governance in India. It defines corporate governance and outlines the key players, principles, and objectives. It discusses the development of corporate governance in India, including economic reforms in the 1990s. It also summarizes the role of the Securities Exchange Board of India in regulating markets after major scandals in the 1990s and 2000s, including the introduction of Clause 49 to strengthen board oversight. Finally, it provides details of the large Satyam scandal of 2009 that damaged investor trust.
This document provides an overview of securitization, including:
- Securitization is the process of converting illiquid assets into liquid assets by pooling them and selling securities backed by the pooled assets.
- The key participants are originators, special purpose vehicles, investors, and servicers. Assets like mortgages, credit cards, auto loans can be securitized.
- Benefits include off-balance sheet financing for originators and returns for investors. Risks include collateral, structural, legal, and third party risks.
- India has taken steps to regulate securitization but lacks a comprehensive framework and standardization.
Narayan murthy report on corporate governanceDhruvKothari13
The document summarizes the key recommendations from the Narayana Murthy Committee Report on Corporate Governance in India from 2003. The committee was formed by SEBI under Murthy's chairmanship to review corporate governance standards and disclosure requirements. The committee recommended several mandatory requirements, such as strengthening audit committees, requiring approval of related party transactions, and establishing whistleblower policies. It also recommended non-mandatory best practices around moving to unqualified financial statements, training board members, and evaluating board performance. The recommendations aimed to improve transparency, accountability and investor protection in Indian markets.
Credit ratings are evaluations of a debtor's ability to pay back debt, conducted by credit rating agencies. They use both public and private qualitative and quantitative information to assess risk of default. Credit ratings indicate the likelihood that bond obligations will be paid back and are used by investors to determine risk-return tradeoffs. Higher credit ratings indicate lower risk while lower ratings suggest higher risk of default. The document outlines the meaning and purpose of credit ratings, benefits to investors and companies, types of ratings, major credit rating agencies, and their methodology.
Models of corporate Governance presented by Dushyant MaheshwariDUSHYANT MAHESHWARI
This document discusses four main models of corporate governance:
1) The Anglo-American model focuses on separation of ownership and control with shareholders appointing directors who appoint managers. Boards usually have a mix of executive and independent directors.
2) The German model uses a two-tier board structure with a supervisory board elected equally by shareholders and employees/unions overseeing a management board.
3) The Japanese model involves cross-shareholdings between companies and banks/financial institutions jointly appointing boards dominated by division heads rather than independent directors.
4) The Indian model combines Anglo-American and German influences, with private companies following the German model of family/promoter control and public sectors following
Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. Factoring is commonly referred to as accounts receivable factoring, invoice factoring, and sometimes accounts receivable financing.
There are three parties directly involved: the factor who purchases the receivable, the one who sells the receivable, and the debtor who has a financial liability that requires him or her to make a payment to the owner of the invoice.
There are various types of factoring:
Recourse, Non - recourse, maturity and cross - border factoring.
The document introduces the EIC model for security selection. The EIC model analyzes the economy, industry, and company. For economic analysis, it evaluates whether an economy allocates resources effectively by comparing alternatives and opportunity costs. Industry analysis uses Porter's five forces model to examine threats, suppliers, industry structure, and demand/supply conditions. Company analysis identifies attractive companies by assessing financial performance, efficiency, capital structure, and competitive edge using value and growth approaches.
This document provides an overview of leasing. It discusses the history and meaning of leasing, including definitions from experts. It outlines the steps in a typical leasing process and describes various types of leases. The advantages to lessors include assured regular income, preservation of ownership, tax benefits, and high profitability. Advantages to lessees are use of capital goods, tax benefits, cheaper financing, and technical assistance. Disadvantages are also presented, such as inflation risk for lessors and compulsory payments even if the asset is not needed for lessees. In summary, the document defines leasing, outlines the leasing process, and discusses the pros and cons from the perspectives of both lessors and les
The document discusses funds flow statements and their preparation. It provides definitions of key terms like working capital and flow of funds. It explains that a funds flow statement depicts changes in working capital between two balance sheet dates by analyzing changes in current assets and current liabilities. The summary also shows how to prepare schedules of changes in working capital and sources and uses of funds statements to analyze the flow of funds.
The document summarizes the roles and functions of the Securities and Exchange Board of India (SEBI). It discusses that SEBI was established in 1988 by the Government of India and was upgraded to a statutory board in 1992. It describes SEBI's objectives to protect investor interests and promote fair practices in securities markets. The document outlines SEBI's regulatory functions such as registration of intermediaries and prohibition of unfair trade practices. It also discusses SEBI's developmental functions like investor education and research. The powers and departments of SEBI are presented. Recent regulatory cases involving Vedanta-Cairn and Deccan Chronicle Holdings are also summarized.
VBM is a managerial process that links strategy, measurement, and operations to create shareholder value. It focuses on holistically managing the organization to create value for stakeholders as defined by management priorities. VBM uses analytical methods and technology in an integrated framework to deploy strategy, manage processes, and create value by focusing on activities, jobs, compensation, and organizational structure. While implementation faces behavioral, technical, organizational, and managerial challenges, adopting VBM performance measures relevant to each organization can help effectively create and increase firm value as demonstrated by many Fortune 100 companies.
This document discusses the importance of values in management and organizations. It defines values as important beliefs that guide behavior and attitudes. Values influence culture and provide guidelines. There are different types of values like terminal and instrumental. Values are important for organizations as they bind people together, provide a common language, and guide behavior to achieve goals. Aligning personal and organizational values improves decision making and commitment. The document recommends organizations assess employee and organizational values to ensure alignment. When values are congruent, it provides a strong framework for consistency and relationships, allowing the organization to grow.
Capstone Business School presentation on Hilton International. The group performed extensive research on the Hotels & Lodging industry, presenting their findings and recommendations in front of a various business professionals.
The document discusses the meaning and importance of ethics, especially business ethics. It defines ethics as the science of character and principles that determine right and wrong conduct. Business ethics comprises the moral principles that guide behavior in business. The document outlines different views on the relationship between business and ethics, discusses common unethical acts and why misconduct often goes unreported, and provides suggestions for encouraging ethical conduct like training, whistleblowing policies, and codes of ethics.
- An account records transactions relating to a particular item and their effect in terms of debits and credits. Debits increase accounts and credits decrease accounts.
- There are three types of accounts: personal, real, and nominal. Personal accounts relate to individuals, real accounts relate to assets and liabilities, and nominal accounts relate to income and expenses.
- Management accounting provides information to managers for planning, control, and decision making purposes, whereas financial accounting provides information to external parties. Management accounting focuses on the future and internal reporting.
This ppt is a part of an assignment done at The Assam Kaziranga University in Jorhat. Human Behavior in Organizations is the subject dealing with this topic.
This document provides an overview of financial management. It discusses the different forms of business organizations including sole proprietorships, partnerships, private limited companies, and public limited companies. It also outlines some of the key financial decisions firms make, including capital budgeting, capital structure, and working capital management. Additionally, it discusses goals of financial management, principles of finance like time value of money and risk-return tradeoff, and emerging topics such as agency theory, business ethics, and the relationship between finance, economics, and accounting.
The Age of Alignment Part II: Getting Strategy-Driven Performance Measurement...Pearl Meyer
Our December webinar explored a fundamental question that was raised by the NACD Blue Ribbon Commission on Strategy Development: “Does your company’s incentive structure reinforce or unintentionally undermine its chosen strategy?”
During that webinar, I talked with my colleague on the Blue Ribbon Commission, Pearl Meyer and Partners’ Steve Van Putten, along with Michael Ng who is with us again today. We discussed the alignment of business strategy and compensation, the role of the Board, the hallmarks of a properly aligned program and examples of various approaches to design, monitoring and revision.
Today, we will build on that topic and take an in-depth look at how Boards can implement the right performance measures to ensure a compensation program that will be an effective tool for driving corporate strategy. With Pearl Meyer and Partners’ Managing Director Matt Turner taking the lead, we will look at measurement selection and mix, and practical concerns for measurement, goal setting and the on-going administration and governance of a winning program.
1) The document discusses approaches to valuing companies, including the adjusted book value approach, direct comparison approach, and discounted cash flow (DCF) approach.
2) It explains the key steps in conducting a DCF valuation, which includes forecasting cash flows over the explicit forecast period and determining the continuing value beyond that point.
3) An example applies these approaches to value a sample company called Matrix Limited. Historical financial statements are analyzed to extract metrics like net operating profit less adjusted taxes and return on invested capital. Free cash flows are also calculated.
This document provides an overview of balanced scorecard training and consultancy services offered by Ainapur Institute of Management. It discusses key concepts of the balanced scorecard including using objectives and metrics across four perspectives: financial, customer, internal processes, and learning and growth. Examples of typical measures for each perspective are also provided. The document highlights how a balanced scorecard can help translate strategy into action, align goals across levels of an organization, and drive continuous improvement. It also includes a case study of how Tata Steel deployed balanced scorecards to work towards its strategic vision.
This document provides an overview and resources related to venture capital topics. It begins with an introduction and table of contents. Then it covers the following sections in detail: Sourcing & Due Diligence, Product-Market Fit, KPIs and Unit Economics, Market Sizing, Valuation, Term Sheets & Financing, VC Exits, and Fund Operations. For each section, it provides a high-level summary and lists relevant article and podcast resources for further learning. The goal of the Harlem Capital Syllabus is to synthesize common VC topics and share helpful resources for those seeking to learn more about venture capital.
The document provides an overview of the Balanced Scorecard framework developed by Robert Kaplan and David Norton in the early 1990s. It discusses that the Balanced Scorecard translates an organization's mission and strategy into a comprehensive set of performance measures across four perspectives: financial, customer, internal business processes, and learning and growth. The Balanced Scorecard helps organizations implement their strategies by setting objectives and measures for each perspective, and monitoring performance to drive continuous improvement.
Presentation slides from seminar looking at how to grow the value of your business, originally presented at Liverpool Crowne Plaza Hotel together with GrowthAccelerator and Natwest Bank
1) The document discusses corporate value creation and the key drivers of value for various stakeholders including investors, employees, customers, suppliers, and society.
2) It defines value as the capacity to satisfy needs and outlines a model for creating value for stakeholders over time through both financial and non-financial means.
3) The four fundamental drivers of corporate value are identified as sales growth, operating profitability, capital requirements, and weighted average cost of capital. Improvements in these drivers can increase shareholder value over the long run.
This document provides an outline for a valuation masterclass presentation on assessing the value of companies. It discusses that valuation requires forecasting future cash flows and assessing risk. It then outlines several key valuation methods that will be covered in more detail, including using market multiples, discounted free cash flow, and discounted earnings. The presentation aims to provide associates with analytical frameworks and tools for determining a company's intrinsic value.
MBA 5004 Fundamentals of Accounting -2.pptxSameeraGamage1
This document provides an overview of the fundamentals of accounting concepts for an MBA program. It defines key elements of financial statements such as assets, liabilities, equities, income and expenses. It also defines accounting concepts like the cost concept, entity concept, matching concept, and materiality concept. Additionally, it discusses management accounting, cost classification, and the differences between financial and management accounting.
Present.profitability analytics framework ima san antonio finalFernando Pico
The Profitability Analytics Center of Excellence (PACE) promotes a framework for profitability analytics that incorporates causal modeling. The framework includes revenue, cost, and investment models that quantify relationships between key elements based on causal factors rather than just correlations. By embedding causality into strategic planning, forecasting, and decision-making, management can better understand economic realities and manage the business toward strategic goals.
The Art & Science of Valuation - CleanTech Northbwatsonctn
The document provides an agenda and details for a CleanTech North event on March 25th featuring a presentation on technology valuation by Steven Hacker and Ian Palm. The presentation will cover the definition of valuation, when valuations are needed, the valuation process, factors that drive value, and methods for valuing businesses and intellectual property including discounted cash flow, market approaches, and asset approaches.
- Interactive Brokers Group (IBRG) is an online brokerage that aims to undercut competitors' prices through highly efficient operations and a focus on active traders as customers.
- IBRG's strategy of targeting a niche customer segment allows it to compete primarily on price and pass cost savings to customers. This drives further growth through a virtuous cycle.
- The analysis projects IBRG's revenue and valuation in 10 years based on continued growth in daily trading volume and margin lending, finding the stock is reasonably valued but with only modest expected returns.
Benefits realisation management is one of the most important things than an organisation needs to do... but not at any cost
presented by Steve Parker
Tuesday 28th June 2016
APM Value Management SIG
Critical linkages between value and benefits
This document summarizes key points from a valuation seminar in Japanese. It discusses various topics related to valuation including foundations of value, core valuation techniques, intrinsic value and the stock market, and managing for value. Some of the main points discussed include defining value, the relationship between growth, return on invested capital and value, discounted cash flow models, and how companies can create value through strategic portfolio management, performance management, mergers and acquisitions, and capital structure decisions.
The document discusses the balanced scorecard performance measurement framework. It describes the balanced scorecard as measuring organizational performance across four perspectives: financial, customer, internal business processes, and learning and growth. Each perspective has objectives, measures, targets, and initiatives. The balanced scorecard links performance measures to strategy and helps organizations communicate and monitor their strategy.
This document discusses the importance of focusing on value when developing business cases and programs. It defines value as the worth or outcome compared to the effort or cost. Value trees and value drivers are used to breakdown and prioritize how value will be created. Financial value drivers are linked directly to financial metrics while non-financial drivers impact stakeholder expectations. Developing a strong business case involves assessing a client's ability to generate value, estimating the program's impact, justifying costs and benefits, and validating the case with stakeholders. Program management is then responsible for delivering the promised value by linking activities to value drivers and metrics.
This document discusses the importance of focusing on value when developing business cases and programs. It defines value as the worth or outcome compared to the effort or cost. Value trees and value drivers are used to breakdown and prioritize how value will be created. Financial value drivers are linked directly to financial metrics while non-financial drivers impact stakeholder expectations. Developing a strong business case involves assessing a client's ability to generate value, estimating the program's impact, justifying costs and benefits, and validating the case with stakeholders. Program management is then responsible for delivering the promised value by linking activities to value drivers and metrics.
The document discusses the finance module in ERP systems. It is a highly integrated module that connects to other modules like sales, production, purchase, and HR. The finance module includes general ledger, accounts receivable, accounts payable, and asset accounting functions. It also covers accounting transactions, financial reporting, budgeting, consolidation, and internal controls.
This document provides an overview of enterprise resource planning (ERP) systems. It describes ERP as software tools that manage key business systems like supply chain, inventory, customer orders and accounting to automate and integrate business processes. The document outlines the evolution of ERP from early inventory control software to today's integrated systems. It discusses the benefits of ERP like improved information sharing, reduced costs and improved decision making. The document also covers ERP design alternatives and challenges of implementation.
This document provides an overview of enterprise resource planning (ERP) systems. It discusses how ERP systems enable seamless integration and information flow across key business processes through interdependent software modules and a common central database. The document also outlines some of the benefits of ERP systems, such as helping to unify an organization's structure, enabling more efficient operations and customer-driven processes, and providing firm-wide knowledge-based management. However, it also notes challenges in implementing ERP systems, such as requiring significant changes to how a business operates and large investments of time and money.
The document discusses various areas of human capital management that can be automated through HRMS/ERP systems. It describes key modules related to employee learning, performance and talent management, recruitment processes, transaction intensive processes like payroll and benefits, as well as strategic areas like workforce planning and scheduling, compensation, talent management, learning management, and employee self-service.
Competitive strategies in different types of industriesAmit Fogla
This document discusses different types of industries based on their maturity and competitive environment: fragmented, emerging, maturing, and declining.
Fragmented industries have no dominant firms and low barriers to entry. Emerging industries are new and defined by technological change and uncertainty. Maturing industries face saturation and competition over market share. Declining industries experience an absolute drop in sales over time.
The document provides characteristics and recommendations for formulating strategies for each type. In fragmented industries, strategies consider industry structure, reasons for fragmentation, and opportunities for consolidation. Emerging industries require shaping the structure and navigating uncertainty. Maturing industries focus on costs and service. Declining industries involve leadership, niche positioning, harvesting, or divestment
This document outlines the contents and requirements for a new venture exploration plan. It details 12 sections that must be included in the plan, such as an executive summary, industry and market analysis, economics of the business, management team, and financial plan. Key dates for submitting draft and final reports, as well as presentations, are provided. The exploration plan will demonstrate how the team's research can be translated into a business concept with customer value, a solution to a problem, and potential for profit through robust market characteristics and good fit with the founders and management.
Implementing, monitoring, and reporting CSR requires identifying a company's CSR level, key requirements like commitment and resources, and operational steps. CSR should be operationalized through forming a motivated core group to identify focus areas, design action plans, monitor impacts, and report initiatives. Measuring, monitoring, and reporting CSR ensures accountability, avoids risks, and improves reputation and performance. It involves using tools like ratings, principles, and indices to benchmark performance across areas like workplace, environment, and community initiatives. Reporting provides transparency and drives progress through methods like descriptive, quantitative, full cost, and triple bottom line reporting.
The document discusses definitions of rural areas according to different organizations in India and their limitations. It provides definitions from the NSSO, Planning Commission, LG Electronics, NABARD, Sahara, and FMCG companies. Most definitions are based on population size, with cut-offs ranging from populations less than 5,000 to 20,000 being considered rural. However, the definitions are limited as they do not fully characterize rural versus urban areas. The document also examines reasons for marketing to rural areas, such as untapped potential, rising incomes, and success stories of companies gaining 40-60% of sales from rural markets.
The document outlines the schedule and groups for an upcoming student presentation. It is divided into two classes on July 30th and August 1st. It then provides details on 16 groups that will each present on a social enterprise theme and organization. Each group is assigned a theme case and social organization. The document concludes with guidelines on the expected structure of the thematic and organization presentations, including the number of slides and time allocated. It recommends highlighting the theme, organization's activities and impact, and including videos and assessments in the 20 minute presentations.
The document discusses three models of information system success:
1) The DeLone & McLean Model from 1992 which synthesizes six factors of IS success including system quality, information quality, use, user satisfaction, individual impact, and organizational impact.
2) The Seddon Model from 1997 which focuses on the interrelationships among measures of information and system quality, IS use, and the benefits of IS use.
3) The Organizational Transformation Model which captures the organizational change dimension of successful IS implementation through its examination of system and information quality, organizational IS use, and organizational transformation due to IS.
The document discusses various strategic planning matrices used to evaluate a firm's internal strengths and weaknesses and external opportunities and threats. It describes the SWOT analysis, TOWS matrix, and SPACE matrix. The TOWS matrix involves matching a firm's internal strengths and weaknesses with external opportunities and threats to develop four types of strategies - SO, WO, ST, and WT. The SPACE matrix uses financial strength, competitive advantage, environmental stability, and industry strength factors to determine an appropriate aggressive, conservative, defensive, or competitive strategy.
This document provides an outline and overview of key concepts in international financial management. It discusses the world monetary system, foreign exchange markets and rates, international parity relationships, and managing foreign exchange exposure for multinational firms. Specific topics covered include currency exchange rates and symbols, factors driving companies to operate internationally, how the foreign exchange market works, and how forward exchange rates are quoted relative to spot rates.
Sales managers need information from a marketing information system to monitor product performance, plan sales force activities, and make pricing decisions. A marketing information system gathers, analyzes, and distributes pertinent data to marketing decision makers to improve planning, implementation, and control. It provides information on sales, revenues, costs, and growth for specific products, product lines, and brands. Channel systems support sales and distribution operations while supply chain management systems provide end-to-end visibility across the entire supply chain.
The document discusses the roles and responsibilities of a Chief Information Officer (CIO). It outlines that a CIO acts as a leader who oversees IT personnel and ensures technology supports business needs. Additionally, a CIO serves as a spokesman who networks within the organization and externally. A CIO also monitors the external environment for technical changes and identifies new opportunities. The CIO develops relationships between IT and business units and communicates information between departments. Finally, a CIO influences organizational strategy, identifies solutions, and allocates resources to support the success of the organization.
This chapter discusses telecommunications and computer networks for business. It covers data transmission units and technologies, types of networks including LANs, WANs and intranets. It describes network devices, switching methods, the OSI model layers and TCP/IP. Intranets and extranets are defined, and applications for internal networks and sharing information with business partners are provided. Internet addressing systems using IP classes are also summarized.
The document discusses key aspects of database management including making data sharable, consistent, and standardized across multiple departments and processes. It describes how a database management system (DBMS) is used to create, manage, and control access to the database. Examples are given of how DBMS can help with tasks like sales monitoring, marketing analysis, customer engagement, logistics management, employee records, financial planning, and more. Database design considerations involve determining tables and fields needed and relationships between tables.
The document discusses business modeling and how modeling systems can help businesses redesign processes to cut costs. It states that a business model must be adaptable to changing customer needs and priorities. The modeling system allows businesses to link IT systems to organizational information and processes in a relational way to facilitate redesigning processes.
This document discusses several approaches for justifying investments in information technology (IT) and maximizing returns from IT investments, as IT has become a key lever for competitive advantage but also represents high costs. It describes approaches such as net present value, cost effectiveness, business value, chargeback, balanced scorecard, options, benchmarking, and identifying metrics based on the type of investment, user, and strategic goals. The goal is to formalize metrics for quantifying both tangible and intangible returns from IT expenditures.
- Business intelligence (BI) is the process of collecting data from various sources and analyzing it to help businesses make more informed decisions. It has evolved over time from simply collecting and reporting on retrospective data to also performing predictive analytics.
- The key stages in a closed-loop BI process are track, analyze, model, decide, and monitor. Data is tracked from operational systems and analyzed using BI tools to generate insights. Models are developed and used for forecasting and scenario planning. Decisions are made based on the analysis and models. Actions are then monitored and data is tracked again.
- Successful BI architecture has four parts - information architecture, data architecture, technical architecture, and product architecture to define what data and
This document provides an overview of capital budgeting and estimating cash flows. It defines capital budgeting as identifying, analyzing, and selecting long-term investment projects. The key steps in the capital budgeting process are generating proposals, estimating after-tax cash flows, evaluating projects, selecting projects, and reevaluating projects. Cash flows used for analysis should be cash amounts, operating flows, after-tax, and incremental to the project. The document also discusses how to calculate initial cash outflows, interim cash flows, terminal cash flows, and the impact of taxes and depreciation. It provides an example of analyzing an asset expansion and replacement project.
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Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
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Zodiac Signs and Food Preferences_ What Your Sign Says About Your Tastemy Pandit
Know what your zodiac sign says about your taste in food! Explore how the 12 zodiac signs influence your culinary preferences with insights from MyPandit. Dive into astrology and flavors!
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...my Pandit
Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
Structural Design Process: Step-by-Step Guide for BuildingsChandresh Chudasama
The structural design process is explained: Follow our step-by-step guide to understand building design intricacies and ensure structural integrity. Learn how to build wonderful buildings with the help of our detailed information. Learn how to create structures with durability and reliability and also gain insights on ways of managing structures.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
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26. BALANCE SHEET AND PROFIT AND LOSS ACCOUNT
BALANCE SHEET AS ON 31.03.2000
LIABILITIES
ASSETS
PROFIT & LOSS STATEMENT FOR
THE YEAR ENDING 31.03.2000
NET SALES
EQUITY
100
FIXED ASSETS
140
DEBT
100
NET CURRENT
60
300
COST OF GOODS SOLD
258
COE = 18%
COD = 12 (1 - 3) = 8.4%
PBT
30
9
PAT
200
12
TAX
200
42
INTEREST
ASSETS
PBIT
21
WACC = 13.2%
NOPAT = PBIT (1 - TAX RATE) = 42 (1 - 0.3) = RS.29.4 MILLION
CAPITAL = RS.200 MILLION
ROCE = 29.4 / 200 = 14.7%
FOUR WAYS OF COMPUTING EVA
EVA
=
NOPAT - c* x CAPITAL
= 29.4 - (0.132) x 200 = RS.3 MILLION
EVA
=
CAPITAL x (r - c*)
= 200 (0.147 - 0.132) = RS. 3 MILLION
EVA
=
[PAT + INT (1-t)] - c* CAPITAL
= [21 + 12 (0.7)] - 0.132 x 200 = RS.3 MILLION
EVA
=
PAT - ke EQUITY
= 21 - 0.18 x 100 = RS.3 MILLION
27. NUMERICAL ILLUSTRATION OF VALUE
CREATING STRATEGIES
BASE CASE
CAPITAL :
NOPAT
:
c*
:
r
:
10,000
2,000
15%
20%
EVA = CAPITAL x (r - c*) = 10,000 (0.20 - 0.15) = 500
STRATEGY 1 : IMPROVEMENT IN OPERATING PERFORMANCE
NOPAT INCREASES FROM 2000 TO 2250, DUE TO GREATER OPERATING EFFICIENCIES. THIS RAISES r TO 22.5%. AS A RESULT EVA
RISES TO 750
EVA = CAPITAL x (r - c*) = 10,000 (0.225 - 0.150) = 750
STRATEGY 2 : PROFITABLE INVESTMENT
A NEW PROJECT REQUIRING 10,000 IS EXPECTED TO EARN A RETURN OF 18% THEREBY ADDING 1800 TO NOPAT. THIS PROJECT
WILL INCREASE EVA, EVEN THOUGH THE CONSOLIDATED RETURN WILL DECLINE TO 19% (THE AVERAGE OF 20% AND 18%)
EVA = CAPITAL x (r - c*) = 20,000 (0.19 - 0.15) = 800
NOTE THAT MAXIMISING EVA IS MORE IMPORTANT, NOT MAXIMISING RETURN ON CAPITAL. HENCE THE PROJECT SHOULD BE
ACCEPTED
STRATEGY 3 : WITHDRAWAL OF UNPRODUCTIVE CAPITAL
1000 OF WORKING CAPITAL CAN BE LIQUIDATED WITH ONLY A MARGINAL DECLINE OF NOPAT. NOPAT WILL FALL BY JUST 50.
WITHDRAWING THIS WORKING CAPITAL WOULD INCREASE THE RATE OF RETURN TO 21.67% (2000 - 50) / (10000 - 1000) AND EVA
TO 600
EVA = CAPITAL x (r - c*) = 9,000 (0.2167 - 0.150) = 600
STRATEGY 4 : REDUCTION IN THE COST OF CAPITAL
THE CAPITAL STRUCTURE OF THE FIRM IS ALTERED AND THIS CHANGE LOWERS THE COST OF CAPITAL TO 13%, WITHOUT
AFFECTING ANYTHING ELSE. AS A RESULT EVA RISES FROM 500 TO 700
EVA = CAPITAL x (r - c*) = 10,000 (0.20 - 0.13) = 700
45. TBR
The TBR for a single holding period is computed as follows:
Free cash flow
TBR =
Beginning value
Ending value – Beginning value
+
Beginning value
The TBR for a multiple holding period is measured using the conventional internal
rate of rate computation:
Beginning
value
=
Free cash flow1
+
(1 + TBR)
+
Free cash flow2
(1 + TBR)
2
Free cash flown
(1 + TBR)
n
+ ……
+
Ending value in yearn
(1 + TBR)n
The beginning and ending values are estimates of market values of the firm or
business unit at the beginning and end of the period. They are estimated using one or
more of the following:
Value
Value
Value
Value
=
=
=
=
Earnings x P/E multiple
Book value x M/B multiple
Free cash flow ÷ cost of capital
NPV of expected cash flow
48. CASH FLOW RETURN ON INVESTMENT (CFROI)
TBR incorporates the returns (CFROIs) both for the assets in place and the assets
to be created. Thus CFROI has an important bearing on TBR.
What is CFROI and how is it measured? BCG defines CFROI as “the
sustainable cash flow a business generates in a given year as a percentage of the
cash invested in the firm’s assets”. Sustainable cash flow is gross cash flow less
economic depreciation. Thus,
CFROI
=
Cash flow - Economic depreciation
Cash invested
Note that economic depreciation is the amount of annual sinking fund
payment earning capital cost required to replace assets.
9
To illustrate the calculation of economic depreciation, consider a plant that has an economic life of 14
years and costs Rs 250,000 to replace.
Economic depreciation x FVIFA (14, 10%) = Rs. 250,000
Rs 250,000
Economic depreciation =
Rs 250,000
=
FVIFA (14, 10%)
= Rs 8,937
27.975