MBA Core Management Knowledge - One Year Revision Schedule

BEST WISHES FOR A HAPPY AND PROSPEROUS 2021

2020 is tough year for many. Still, Remember The Best Events of 2020 and Feel Happy. Feel Good About Past and Hope will Appear for the Future

Positive events provide energy to do good - Positive thoughts beget positive resolve, positive resolve takes you forward towards auspicious results.


The blog contains articles on all management subjects developed using the most popular book on the subject. You can read articles on the subject of your choice or use the following schedule.

One Year MBA Knowledge Revision Plan

Revision Schedule

Current Month -  January  - Revision for the Year starts on 15 January 2021  

Plan for Each Month

January  -  February  - March  -        April  -     May   -          June



July       -   August     - September  - October  - November  - December

Subject Details of Each Month

January  (Principles of Management)
February (P.of M & Marketing Management from 23 Feb)

March (Mktg. Mgmt. & Operations Management from 17 March )
April  (Supply Chain Management and Financial & Cost Accounting)

May  (Management Accounting & Organizational Behavior)
June (Innovation, Industrial Engineering and Economics)

July  (Economics, Engineering Economics, & Managerial Ethics)
August    (Statistics, Quality and Six Sigma, OR & BRM)

September (HRM, Mentoring, Training, Maintenance, Energy & Environment Management)  -  October  (Information Technology and Management Information Systems, Logistics - Warehousing and Transport)

November (Strategic Management & Financial Management)
December (Business Laws, Negotiation, Taxes and Government Relations)

Subject                                               Revision Period

Principles of Management                15 January   to   19 February

Marketing Management                    22 February to   16 March

Operations Management                   17 March     to    2 April

Supply Chain Management                 3 April       to  15 April

Financial & Cost Accounting            16 April       to  12 May

Top 20 Articles of 2020 - Management Theory 

Articles: Theme - Top Management Challenges.

Article 1: Awareness of Environment
http://nraomtr.blogspot.com/2017/04/awareness-of-environment.html




Updated 1 January 2021

4 January 2018,  1 April 2017.  22 February 2017,  10 December 2015

Top 20 Articles of 2020 - Management Theory Blog

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Principles of Management – Koontz and O’Donnell

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Organizational Buying Processes and Buying Behavior

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Organizational Behavior – Theoretical Frameworks

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Marketing Communication: Channels and Promotion Tools

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The Marketing Concept - Kotler

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Management - Definition: Koontz and O’Donnell – Narayana Rao - Slides Content

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Ch.1. Defining Marketing for the New Realities - Kotler - Keller 15 Edition - Summary

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Costing for Spoilage, Rework and Scrap

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Evolution of Management Thought and Theory - Review Notes

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Strategic Capacity Management - Operations Management Review Notes

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Strategies, Policies, and Planning Premises - Review Notes

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Creating Customer Value, Satisfaction and Loyalty - Summary of Kotler and Keller's Chapter

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Supply Chain Management - Coordination

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Industrial Engineering - Introduction

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Marketing and New Product Development - Kotler and Keller's Book Chapter Summary

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Kotler and Keller - 14 Edition Marketing Management Brief

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Tailoring Strategy to Fit Specific Company - Industry Situation - Review Notes

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Demand Forecasting and Demand Planning

Forecasts are vital to every business organization and for every significant management decision. While a forecast is never perfect due to the dynamic nature of the external business environment, it is beneficial for all levels of functional planning, strategic planning, and budgetary planning. Decision-makers use forecasts to make many important decisions regarding the future direction of the organization.

Forecasting techniques and models can be both qualitative and quantitative and their level of sophistication depends on the type of information and the impact of the decision. The forecasting model a firm should adopt depends on several factors, including forecasting time horizon, data availability, accuracy required, size of the forecasting budget, and availability of qualified personnel.

Various decisions in operations management like capacity creation and addition decisions, annual production plan decisions and more short term planning of work orders require forecasts of demand over various time horizons. Some forecasts of demand are made marketing and sales departments and operations management department uses them with appropriate transformation. Certain forecasts are done by the operations management department. 

Demand management exists to coordinate and control all sources of demand so that the productive system can be used efficiently and the product delivered on time. This activity requires demand forecasts. Demand can be either dependent on the demand for other products or services, or independent because it cannot be derived directly from that of other products.

Forecasting can be classified into four basic types:

Qualitative
Time series analysis,
Causal relationships, and
Simulation.

Qualitative techniques in forecasting can include grass roots forecasting, market research, panel consensus, historical analogy, and the Delphi method.  Qualitative forecasting is based on surveying and finding out intentions of people regarding use and purchase of a product. Similarly it is finding the opinion and forecast of sales persons.

Time series forecasting models try to predict the future based on past data. A simple moving average forecast is used when the demand for a product or service is constant without any seasonal variations. A weighted moving average forecast varies the weights, given a particular factor and is thus able to vary the effects between current and past data.

Exponential smoothing improves on the simple and weighted moving average forecast as it considers the more recent data points to be more important. To correct for any upward or downward trend in data collected over time periods to smoothing constants are used. Alpha is the smoothing constant, while delta reduces the impact of the error that occurs between the actual and the forecast.

Forecast errors are the difference between the forecast value and what actually occurred. All forecasts contain some degree of error, however it is important to distinguish between sources of error and measurement of error. Sources of error are random errors and bias. Various measurements exist to describe the degree of error in a forecast. Bias errors occur when a mistake is made, i.e., not including the correct variable or shifting the seasonal demand. Random errors cannot be detected, they occur normally.

A tracking signal indicates whether the forecast average is keeping pace with any movement changes in demand. The MAD or the mean absolute deviation also is a simple and useful tool in obtaining tracking signals. A more sophisticated forecasting tool to define the functional relationship between two or more correlated variables is linear regression. This can be used to predict one variable given the value for another. It is useful for shorter time periods as it assumes a linear relationship between variables.

Causal relationship forecasting attempts to determine the occurrence of one event based on the occurrence of another event.

Focus forecasting tries several rules that seem logical and easy to understand to project past data into the future.

Today many computer forecasting programs are available to easily forecast variables. When making long-term decisions based on future forecasts, great care should be taken to develop the forecast. Likewise, multiple approaches to forecasting should be used.

Forecasting needs to be done in various other areas of management like financial management, marketing management, personnel management etc. and the same techniques discussed in this article are used in those disciplines also.


Techniques of  Forecasting

Grass Roots
Market Research
Panel Consensus
Historical Analogy
Delphi Method
Time Series Analysis
Simple Moving Average
Weighted Moving Average
Exponential Smoothing
Forecast Errors
Sources of Error
Measurement of Error
Linear Regression Analysis
Decomposition of a Time Series
Causal Relationship Forecasting
    Multiple Regression Analysis.
Focus Forecasting
   Methodology of Focus Forecasting
   Web-Based Forecasting: Collaborative Planning, Forecasting,And Replenishment (CPFR)

Demand Planning

The demand planning is done based on Collaborative Planning, Forecasting,And Replenishment (CPFR). The demand planning also makes efforts to reduce bull-whip effect.

https://www.google.co.in/books/edition/Enterprise_Systems_Education_in_the_21st/_XG9AQAAQBAJ?hl=en&gbpv=1&dq=21st+Century+%22Demand+Planning%22&pg=PT173&printsec=frontcover

Demand Planning 2020 Articles

https://www.unioncrate.com/resources/21-best-practices-demand-planning-forecasting

https://www.gitacloud.com/blog/2020/2/16/demand-planning-challenges-in-make-to-order-mto-businesses

https://www.cio.com/article/3518771/moving-from-demand-planning-to-automated-demand-sensing.html

https://medium.com/analytics-vidhya/what-is-the-best-forecasting-model-for-demand-planning-part-1-a-model-review-90c6304d799b

https://blog.datasciencedojo.com/machine-learning-revolutionize-demand-planning/

https://www.supplychainbrain.com/articles/30774-new-developments-in-demand-planning-and-forecasting

https://blog.camelot-group.com/2020/04/how-to-master-demand-planning-in-covid-19-times/

Bibliography & References

Key to S&OP Success: Move from Forecasting to Integrated Demand Management
April 07, 2017
The Problem: Forecast Accuracy Remains a Challenge
http://www.supplychain247.com/paper/key_to_sop_success

http://www.focusforecasting.com/

Sales Forecasting
https://books.google.co.in/books?id=yCyvrHaR5cEC


Updated 26 Dec 2020
4.4.2019

Deming On Management, Quality and Productivity

 

Out of Crisis

https://books.google.co.in/books?id=RTNwDwAAQBAJ

The Deming Route to Quality and Productivity

Road Maps and Roadblocks

By William W. Scherkenbach, William Edwards Deming · 1986

https://books.google.co.in/books?id=g5Y9GEMjjUUC

ICFAI University - Supply Chain Management

 Supply Chain Management

 

PRINCIPLES OF SUPPLY CHAIN MANAGEMENT

Supply Chain Management – An Overview: Definition, Components of a Supply Chain, The Concept of Supply Chain Management (SCM), Supply Chain Management – Schools of Thought, SCM Processes, Factors Driving the Evolution of SCM, Objectives of SCM.

Understanding the Supply Chain.

SUPPLY CHAIN PLANNING AND DESIGN

Supply Chain Integration: Nature of Supply Chain Integration, Factors Driving Supply Chain Integration, Role of Organizational and Channel Support, Elements of Supply Chain Strategy, Framework for Supply Chain Integration, Benefits and Barriers.

Supply Chain Performance: Achieving Strategic Fit and Scope.

Supply Chain Drivers and Obstacles.

Demand Forecasting in a Supply Chain: Forecast Components, Forecasting Approaches, Steps Involved in Demand Forecasting Process, Forecasting Techniques, Measures of Forecast Error.

Demand Forecasting in a Supply Chain.

Managing Demand and Supply in a Supply Chain: Aggregate Planning and its Role in a Supply Chain, Aggregate Planning Process, Managing Predictable Variability in a Supply Chain.

 Demand Forecasting in a Supply Chain.

Aggregate Planning in the Supply Chain.

Facility Network Design: Factors Influencing Facility Network Design Decisions, Facility Network Design Decision Process, Models for Facility Network Design and Capacity Allocation.

Designing the Distribution Network in a Supply Chain.

Network Design in the Supply Chain.

Network Design in an Uncertain Environment.

SUPPLY CHAIN PROCESSES

Purchasing and Supply Chain Management: Activities of the Purchasing Department, Evolution of the Purchasing Function, Selecting and Managing Suppliers, JIT Purchasing.

Manufacturing in a Supply Chain Context: Intrafirm Production, Interfirm Production, Supply Chain Production.

Inventory Management: Role of Inventory in a Supply Chain, Definitions, Cost of Carrying Inventory, Basic Inventory Management Decisions, Inventory Decisions in a Supply Chain.

Managing Economies of Scale in the Supply Chain: Cycle Inventory.

Managing Uncertainty in the Supply Chain: Safety Inventory.

Managing Transportation in a Supply Chain: Role of Transportation in a Supply Chain, Participants in Transportation Decisions, Costs, Modes of Transport, Transportation Network Design and Trade-offs, Transportation Analysis Decisions.

Transportation in the Supply Chain. 

Warehousing: Functions of Warehousing, Activities and Alternatives, Factors to be Considered in Warehousing Strategy, Planning and Managing a Warehouse.

Returns Management: Reverse Logistics, Need for Returns Management, Returns Management Processes, Disposition Options, Challenges in Returns Management, Use of Information Technology in Returns Management.

Customer Service in a Supply Chain: Elements of Customer Service, Approaches to Develop a Customer Service Strategy, Creating Differential Advantage, Impediments to Implementing an Effective Customer Service Strategy, Use of Technology in Customer Service.

Determining Optimal Level of Product Availability.

Order Fulfillment: Process, E-Fulfillment vs. Traditional Order Fulfillment, Responsive Order Fulfillment, Order Fulfillment Systems.

SUPPLY CHAIN COORDINATION

Cooperation and Coordination in a Supply Chain: Bullwhip Effect, Partnering in Supply Chain Management, Obstacles in Supply Chain Coordination, Managerial Levers to Achieve Coordination, Designing Effective Supply Chain Partnerships.

 Coordination in the Supply Chain.

Role of Outsourcing in a Supply Chain: Reasons for Outsourcing, Deciding What to Outsource, The Outsourcing Process, Issues in Outsourcing, Areas of Outsourcing, Advantages and Disadvantages, Outsourcing Practices.

 Sourcing Decisions in a Supply Chain.

Measuring Supply Chain Performance: Supply Chain Performance Measurement, Framework for Developing Supply Chain Metrics, Performance Metrics and Measures, Requirements for Designing an Ideal SCPM System, Approaches to SCPM, Setting Performance Targets.

Information Technology in a Supply Chain: Value of Information Flow, Use of Information, Changing Role of Information Technology in a Supply Chain, IT Solutions for SCM, Supply Chain Management Software, Process of Implementing an IT Enabled SCM System.

Information Technology and the Supply Chain.

E-Business and the Supply Chain: Impact of the Internet on Supply Chain, Impact of E-Business on the Supply Chain, Types of E-Business Applications, Implementing the E-Business Proposition.

e-business and the Supply Chain.

Financial Flow in a Supply Chain: Components of Financial Flow in a Supply Chain, Automating Financial Flow in a Supply Chain, Integrating Material and Financial Flows in a Supply Chain.

I. BUILDING A STRATEGIC FRAMEWORK TO ANALYZE SUPPLY CHAINS.

1. Understanding the Supply Chain.

2. Supply Chain Performance: Achieving Strategic Fit and Scope.

3. Supply Chain Drivers and Obstacles.




II. DESIGNING THE SUPPLY CHAIN NETWORK.

4. Designing the Distribution Network in a Supply Chain.

5. Network Design in the Supply Chain.

6. Network Design in an Uncertain Environment.


III. PLANNING DEMAND AND SUPPLY.

7. Demand Forecasting in a Supply Chain.

8. Aggregate Planning in the Supply Chain.

9. Planning Supply and Demand in the Supply Chain: Managing Predictable Variability.


IV. PLANNING AND MANAGING INVENTORIES IN A SUPPLY CHAIN.

10. Managing Economies of Scale in the Supply Chain: Cycle Inventory.

11. Managing Uncertainty in the Supply Chain: Safety Inventory.

12. Determining Optimal Level of Product Availability.



V. SOURCING, TRANSPORTING, AND PRICING PRODUCT.

13. Sourcing Decisions in a Supply Chain.

14. Transportation in the Supply Chain. 

15. Pricing and Revenue Management in the Supply Chain.


VI. COORDINATION AND TECHNOLOGY IN THE SUPPLY CHAIN.

16. Coordination in the Supply Chain.

17. Information Technology and the Supply Chain.

18. e-business and the Supply Chain.

ICFAI University - Quality and Productivity Management

 Quality and Productivity Management

Max Marks: 100, Duration: 3 Hrs

 

PRINCIPLES AND PRACTICES

Quality Management Approach and Philosophy: Basic Approach, Gurus of Total Quality Management (TQM), TQM Framework, Awareness, Defining Quality, Historical Review, Obstacles, Benefits of TQM.

Leadership for Quality: Definition, Characteristics of Quality Leaders, Leadership Concepts, The Deming Philosophy, Role of TQM Leaders.

Strategic Planning: Goals and Objectives, Steps in Strategic Planning, Annual Quality Improvement Program.

Implementation: Management Commitment, Quality Council, Quality Statements, Communications.

Enhancing Customer Value through Quality Management: Who is the Customer, Customer Perception of Quality, Feedback, Using Customer Complaints, Service Quality, Translating Needs into Requirements, Customer Retention.

Employee Involvement: Motivation, Employee Surveys, Empowerment, Teams and Team Work, Suggestion Systems, Recognition and Reward, Gainsharing, Performance Appraisal, Benefits of Employee Involvement.

Continuous Process Improvement: Process, The Juran Trilogy, Improvement Strategies, Types of Problems, The PDSA Cycle, Problem-Solving Method, Kaizen, Reengineering, Six-Sigma.

JIT: Just-in-Time Manufacturing.

Performance Measures: Basic Concepts, Performance Measures, Quality Costs.

Quality Management and Ethics: Definition, The Root Causes of Unethical Behavior, Ethics Management Program.

TOOLS AND TECHNIQUES

Benchmarking: Definition, Reasons to Benchmark, Benchmarking Process, Criticisms of Benchmarking.

ISO Standards and Quality Management : Benefits of ISO Certification, ISO Standards- ISO 9000 Series and ISO 14000 series.

Quality Function Deployment (QFD) : The QFD team, Benefits of QFD, The Voice of the Customer, Organization of Information, House of Quality, Building a House of Quality, QFD process.

Total Productive Maintenance : Relationship between Quality and Productivity, Total Productive Maintenance- Planning and Implementation.

Management Tools for Quality Improvement : Force-Field Analysis, Nominal Group Technique, Affinity Diagram, Interrelationship Digraph, Tree Diagram, Matrix Diagram, Prioritization Matrices, Process Decision Program Chart, Activity Network Diagram.

Statistical Process Control : Pareto Diagram, Process Flow Diagram, Cause-and-Effect Diagram, Check Sheets, Histogram, Introduction to Control Charts, State of Control, Out-of-Control Process, Process Capability, Control Charts for Variables, Control Charts for Attributes, Scatter Diagrams.

ICFAI University - Portfolio Management – II

 Portfolio Management II 

Fixed Income Portfolio Management: Fixed Income Portfolio Management Strategies – Use of Derivatives in Fixed Income Portfolio Management – International Fixed Income Portfolio Management.

Managing a Property Portfolio: The Role of Property Portfolio in a Diversified Portfolio – The Property Investment Decisions – Microeconomic Influences on Property Returns – Macroeconomic Influences on Property Returns.

Portfolio Management Using Futures: Features of Index Futures Contracts  – Pricing of Index Futures Contracts – Stock Index Arbitrage – Portfolio Strategies Using Index Futures – Modifying Expectations with Futures and Options  – Portfolio Insurance – Perils of Using Futures to Hedge Portfolio Risk – Trading of Index Futures in India – Hedging with Interest Rate Futures.

Portfolio Management Using Options: Generic Terms Used in Options – Factors Influencing Option Prices – Elementary Investment Strategies – Trading Strategies of Options – Arbitrage with Options – Option Pricing Models – Evaluation of Option Based Investment Strategies.

Alternative Investments: Selection/Advantages of Alternative Investments – Private Equity Investing  – Evolution of Venture Capital Industry in India – Managed Futures – Hedge Funds – Role of Alternative Assets in a Traditional Portfolio.

International Diversification: Diversification Benefits of International Investments – Hedging Foreign Exchange Risk – International Fixed Income – Managing a Portfolio of International Assets.

Management of Investment Institutions: Behavioral Style Analysis – Return Based Style Analysis – Comparison of Investment Style – Strategies for Allocating Funds among Different Styles – Risks, Controls and Prudential Issues – Application of Style Analysis to Different Asset Classes.

Evolution of Mutual Funds: Introduction to Mutual Funds, History of Mutual Funds, Mutual Funds Industry in India, Mutual Funds Industry: Abroad, Advantages and disadvantages of mutual funds Factors Conductive to Growth of Mutual Funds Industry

Mutual Funds in India: The Different Types of Mutual Funds, Difference between the mutual funds and hedge funds, Fund of funds, Exchange traded fund, The Players in the Mutual Funds Industry, The Structure of Mutual Funds, Organization and Management Pattern of UTI,,Legal tax structure in US and UK ,Tax Treatment and Benefits, The Role of Mutual Funds in the Financial Market

Regulation of Mutual Funds: UTI Act, 1963, The Indian Trust Act, 1882, Companies Act, 1956 (for a Trust Company), SEBI (Mutual Funds) Regulation Act, 1996, establishment of mutual funds ,Launching of a Scheme, Winding up,  Investments, Valuation of Investments, financial reporting

Mutual Funds Prospectus and Balance Sheet: How to Read a Prospectus of a Mutual Fund?, How to Read and Analyze a Balance Sheet of a Mutual Fund?

Investment Strategies of Mutual Funds Investors: How to Evaluate a Mutual Fund, How to Select Different Mutual Funds Schemes, Understanding the Nature of Risks Involved in Mutual Funds Investment , Steps to Choose the Right Mutual Funds Scheme

Marketing and Investment Aspects of Mutual Funds: Marketing Aspects of Mutual Funds- Marketing plan, Product planning, Branding , pricing ,distribution , Promotion ,servicing ,market analysis and research , Marketing strategy , Operation ,Investment Aspects of Mutual Funds

Performance of Mutual Funds: Performance of Mutual Funds in the USA, Performance Analysis of Indian Mutual Fund Industry

Ethics in Mutual Funds: The Role of the AMFI, Ethical Aspects Considered in the Mutual Fund Industry

Future Scenario of Mutual Funds Industry: Trends in the Mutual Fund Industry in the US Indian Scenario and the Future Perspective, Overemphasis on Funds under Management.

ICFAI University - Portfolio Management – I

 Portfolio Management – I

Introduction to Portfolio Management: Meaning of Investment – Necessity of Investment Policy – Inputs to a Policy Statement – Investment Motives – Risks in Investment – Need for Portfolio Management – The Portfolio Management Process.

Investment Policy: Different Types of Investors, their Needs and Weaknesses – Implementing Investment Strategies – Investment Objectives and Constraints of Different Types of Investors – Psychology of Risk – Significance of Behavioral Finance – Individual Investors – Institutional Investors – Drivers of Investment Policies – Setting Objectives for the Institutional Investors – Investment Policies of the Institutional Investors – Investment Management Mandate.

Capital Market Expectations: Forecasting the Capital Market Environment – Macroeconomic Variables Affecting Capital Market Expectations – Short-Term Forecasting Techniques – Impact of Inflation – Nature of an Effective Forecast.

Asset Allocation: Policies and Procedures: Asset Allocation Process – Types of Asset Allocation – Asset Allocation – Management Style – Different Approaches to Asset Allocation Decision – Various Asset Allocation Techniques.

Capital Market Theory: Markowitz Model and Efficiency Frontier – Evolution of Capital Asset Pricing Model – Dominant Portfolio – Separation Theorem – Capital Market Line – CAPM – Security Market Line – Non-Standard Forms of CAPM – Application of CML and CAPM.

Arbitrage Pricing Theory: Arbitrage Pricing Model – Arbitrage Mechanism – Empirical Tests of APT – Comparison of CAPM and APT – Applications of APT.

Portfolio Analysis: Components of Risk and Return – Systematic and Unsystematic Risk – Beta of a Portfolio – Portfolio Diversification – Marginal Productivity of Incremental Assets – Perils of Excessive Diversification.

Optimal Portfolio Selection: Concept of Indifference Curves – Efficient Set Theorem – Optimal Portfolio Selection.

Other Portfolio Selection Models: Investor Preference Functions – Economic Properties of Utility Functions – Applicability of the Utility Functions – Alternative Models of Portfolio Selection.

Portfolio Revision: Need and Importance of Portfolio Revision – Pitfalls to be Avoided in Portfolio Revision – Portfolio Revision Techniques – Practical Problems in Portfolio Revision – Selection and Revision of Equity Portfolios.

Measuring and Evaluating Portfolio Performance: Meaning and Importance of Portfolio Performance Measurement – Measures of Return – Buying the Index Approach – Linking Jensen’s Alpha and Fama’s Total Selectivity  – Performance Attribution Analysis – Monitoring Influence of Asset Allocation Decisions – Performance Evaluation of the Portfolio Manager – Evaluating Asset Class Managers – Performance Evaluation when Options are included in a Portfolio.

Equity Portfolio Management: Efficient Market Hypothesis – Passive vs. Active Management Strategies – Types of Passive Portfolios – Active Management Styles and Strategies – Combining Active and Passive Styles – Factor-Based Approach – Equity Style Management – Book Value/Market Value Ratio.

ICFAI University - Security Analysis – II

 Security Analysis – II

Technical Analysis: Concept of Technical Analysis – Fundamental Analysis vs Technical Analysis – Technical Trading Rules and Indicators – The Dow Theory – Charting – Price Patterns – Trendlines – Advanced Technical Tools – Pitfalls in Interpretation of Charts.

Bond Valuation: Strategic Role of Bonds from an Investor’s Point of View – Bond Terminology – Types of Bonds – Value of Bond – Bond Yield Measures – Bond Price Analysis – Risks Associated with Bonds – Forecasting Interest Rates and Determinants of Interest Rates – Theories of Interest Rates – Analysis of Deep Discount Bonds – Analysis of Convertible Bonds – Analysis of Tax-Sheltered Fixed Investment Avenues.

Risk Measurement Tools: Types of Risks – Duration – Immunization of Risk – Convexity – Term Structure of Interest Rates – Term Structure Models – Yield Spread Analysis – Hedging – Credit Risk – Credit Rating – Credit Analysis for Corporate Bonds.

Derivative Markets: Futures Contracts – Interpretation of Futures Price Quotations – Trading Mechanism of Futures – Clearing and Settlement of Futures – Interest Rate Derivatives in India – Motives behind using Futures – Commodity Futures in India – Options Markets – Options Terminology – Trading in Options – Options Markets in India – Settlement of Options Contracts – Swap Markets.

Bonds with Warrants and Embedded Options: Bonds with Warrants – Convertible Bonds – Callable Bonds – Floating Rate Notes – Dual Currency Bonds – Equity Index-linked Notes – Commodity-linked Bull and Bear Bonds – Swap-Linked Notes .

Real Assets: Real Assets – Appraisal of Real Assets – Approaches to Estimate the Market Value – Methods to Calculate the Capitalization Rate – Subjective Factors Affecting the Value of Real Estate.

Mutual Funds: The Concept and Objectives of a Mutual Fund – Types of Mutual Funds – Advantages of Mutual Funds – Mutual Fund Services – Organization and Management of Mutual  Funds – The Mutual Fund Scene in India.

ICFAI University - Security Analysis – I

 

Security Analysis – I

 

Risk and Return: Concept of Risk and Return – Reduction of Risk through Diversification – Quantifying Portfolio Returns and Risk – Measurement of Risk in Portfolio Context – Security Market Lines and its Applications.

Regulations of Financial Markets: Regulation of Financial Markets – Organization of Securities and Exchange Board of India (SEBI) – Functions and Powers of SEBI – Tax Aspects in Securities – Self-regulation of the Markets.

Equity Markets and their Structures: Markets and their Function – Liquidity Capital Formation – Evolution of the Equity Markets – Development of Securities Market in India – Security Market Indicators – Major Stock Exchanges – Integration of Stock Exchanges – Listing of Securities – Trading Procedure – Compulsory Demat – Clearing and Settlement Procedure.

Sources of Financial Information: Sources of Economic Data – Sources of Market Data – Sources of Company Data – Sources of International Economic Data.

Fundamental Analysis: Objectives and Beliefs of Fundamental Analysis – Framework for Fundamental Analysis – Concept of Intrinsic Value – Economic Forecasting Methods – Industry Analysis – Key Characteristics in an Industry Analysis – Industry Life Cycle – Business Cycle Analysis – Structural Analysis – Company Analysis.

Impact of Changes in Accounting Policies: Changes in Accounting Policies  – Depreciation – Valuation of Fixed Assets  – Foreign Exchange Transactions – Amortization of Preliminary and other Expenses – R&D Expenditure – Valuation of Inventory – Treatment of Gratuity  – Lease Accounting.

Equity Valuation Models: Valuation Methods – Dividend Discount Models – Measures of Relative Value – Price/Earnings Ratio – Price/Book Value Ratio – Price/Sales Ratio – Free Cash Flow Model to Equity Model – Quantitative Analysis – Value Added Concept  – Economic Value Added  –                Market Value Added – Evaluation of Security Analysis – Minority Interests and Discounts

Efficient Market Hypothesis: Concept of Efficiency of the Stock Markets – Forms of EMH – Empirical Tests of EMH in the Indian Market – Description of Tests of EMH.

https://www.icfaiuniversity.in/regulations/mba/elec_ininvst.htm

ICFAI University - Financial Management

 Financial Management

Max Marks: 100, Duration: 3 Hrs

Introduction to Financial Management:  Nature and Objectives of Financial Management – Role of the Finance Manager – Interface of the Finance Function with other Functional Areas – Environment of Corporate Finance.

Indian Financial System: Introduction to Indian Money Markets – Money Market Instruments – Introduction to Capital Markets - Primary and Secondary – Government Securities Market - Primary, Secondary and Instruments – Financial Institutions – Nature of Commercial Banks and Theory of Banking Operations – Creation of Credit by Commercial Banks – Introduction to Credit Cards – Financial Sector Reforms - Privatization – Classification of NBFCs.

Time Value of Money: What Time Value of Money Means? – Why Money has Time Value? – Process of Compounding – Process of Discounting – Future Value of a Single Flow – Future Value of Multiple Flows – Future Value of Annuity – Present Value of a Single Flow – Present Value of Uneven Multiple Flows – Present Value of Annuity.

Risk and Return: The Concepts of Risk and Return – The Components of Return – Measurement of Rate of Return – The Relation between Risk and Expected Rate of Return – Sources of Risk – Risk in a Portfolio Context – Diversification - Diversifiable and Non-diversifiable Risk - Measurement of Non-diversifiable Risk – Capital Asset Pricing Model.

Valuation of Securities: Valuation of Bond – Bond Price Movements – Equity Valuation: Dividend Capitalization Approach – Equity Valuation: Ratio Approach.

Introduction to International Finance: The Need to Study International Finance – Meaning and Implications of Globalization – Integration of Financial Markets – Reasons, Benefits and Costs.

Theories of International Trade:  Various Theories of International Trade – Developments on the International Trade Front – Trade Barriers – Regulation of International Trade.

International Monetary System: Different Types of Exchange Rate Mechanisms – The Gold Standard – The Gold Exchange Standard – The Bretton Woods System – Current Monetary System – European Monetary Union.

Balance of Payments:  Concept of Balance of Payments – Concepts and Principles behind compilation of BoP Account – Components of BoP and the Factors affecting them – Importance and Limitations of BoP Statistics – Relationship of BoP with other Economic Variables.

The Foreign Exchange Market: The structure of the Forex Market – Different Types of Quotes – Various Kinds of Transactions and their settlement Dates – The Regulations.

Exchange Rate Determination: Purchasing Power Parity – Interest Rate Parity.

Sources of Long-Term Finance: Need for Long-Term Finance – Introduction to Cost of Project and Means of Finance – Important Sources of Long-Term Finance – Features of Share Capital, Preference Capital, Debentures and Term Loans – Other Sources of Long-Term Finance.

Cost of Capital and Capital Structure Theories: The Meaning of Cost of Capital – Costs Associated with the Principal Sources of Long-term Finance – Concept of Weighted Average Cost of Capital – Weighted Marginal Cost of Capital Schedule – Meaning of Capital Structure – Factors affecting the Capital Structure – Theories of Capital Structure.

Dividend Policy: The Dividend Decisions of a Firm-Relevance/Irrelevance – Models explaining the Relevance/Irrelevance of the Dividend Policy.

Capital Expenditure Decisions: Nature of the Investment or Capital Expenditure Decisions  – Scanning and Identification of Investment Opportunities – Criteria for Preliminary Screening – Other steps of Project Management like Feasibility Study, Implementation and Performance Appraisal – Introduction to Network Techniques for Project Planning and Control – Principles underlying Measurement of Costs and Benefits – Preparing Cash Flow Projections for Projects – Assessing the Financial Viability of Projects using the various Appraisal Criteria.

International Project Appraisal: Various Methods of Appraising International Projects.

Working Capital Management: The Meaning of and Need for Working Capital  – Various Components of Current Assets and Current Liabilities – Static vs Dynamic view of Working Capital – Factors Affecting Composition of Working Capital – Objective of Working Capital Management - Liquidity vs. Profitability and Working Capital Policies  – Interdependence among Components of Working Capital – Estimation of a Firm’s Working Capital needs using the Operating Cycle – Measures for Evaluation of Working Capital Management – Some Important Working Capital Ratios.

Financing Current Assets: Behavior of Current Assets and Pattern of Financing  – Spontaneous Sources of Finance  – Trade Credit  – Short-term Bank Finance  – Public Deposits for Financing Current Assets – Commercial Paper and Factoring  – Regulation of Bank Credit - Marathe Committee Recommendations - Kannan Committee Recommendations -Nayak Committee Recommendations

Inventory Management: The Nature of Inventory and its Role in Working Capital – The Purpose of having Inventories – Types of Inventory and Costs Associated with it – Inventory Management Techniques like determination of Economic Order Quantity, Economic Production Quantity, Re-order Point, Stock Level, etc. – Inventory Planning – Introduction to Specialized Techniques like ABC Analysis and VED Analysis – Various methods of Pricing of Inventories.

Receivables Management: Meaning and Computation of Receivables  – Purpose and cost of Maintaining Receivables – Impact of a Firm’s Credit Policy on Level of Investment in Receivables, Level of Sales, Bad Debt Loss, etc. – How Firms Evaluate Creditworthiness of Customers – Decision Tree for Credit Granting – Monitoring of Receivables.

Cash Management: The Difference between Profits and Cash – Need For and Objective of Cash Management – Short-term Cash Forecasting and Cash Budgets – Cash Reports for Monitoring and Control – Factors to be Reckoned with for Efficient Cash Management – Forms of Liquidity and the Choice of Liquidity-mix.

Mergers and Acquisitions: The Five Waves of Merges – Models of Corporate Combinations – Models of Corporate Downsizing – Market for Corporate Control – Anti-takeover Defences.

Introduction to Exchange Risk: Foreign Exchange Exposure  – Foreign Exchange Risk – Types of Exposure.

Futures: History of Futures Markets – Meaning and Definition  – Mechanism of Futures Markets – Objectives of Futures – Futures Prices – Types of Futures.

Options: Concept of Options – American and European Options – Trading Strategies with Options – Option Pricing Models – Exotic Options.

Financial Swaps: The Concept of Financial Swaps  – Interest Rate Swaps – Options on Swaps – Commodity Swaps, Currency Swaps – Pricing of Swaps.

Management of Exchange Risk: Techniques of Managing Transaction and Translation Exposures – Techniques of Managing Economic Exposure.

Asset-Liability Management: Risks in Banking – Approaches to Risk Management – Risk Management Process – Asset-Liability Management and its Purpose – Foreign Exchange Risk Management.

Current Developments