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16 February 11 studentfocus

resource gaps and methods of closing these gaps.

L.O. 2 Critically evaluate, appraise and analyse financial data, techniques and tools to aid decision-making in business strategy and planning.

This learning objective is covered in Arnold, Parts II (excluding Ch 5 on capital rationing and taxation), IV (excluding

Ch 14), Chapters 19 and 21. Candidates will need to know the theory and how to use the Capital Asset Pricing Model but not portfolio theory. Remember that the formulae for the costs of preference shares and debt, the cost of equity using dividend growth and the CAPM, and adjusting for inflation are provided on the examination paper.

L.O. 3 Evaluate, appraise and analyse international aspects of financial strategy.

The main additional requirement for success is to do the reading and research on the syllabus content as set out in the Lecture Guide. The important reading is set out in the ABE Reading List but the fundamental reading is Corporate Financial Management (Arnold, G.), plus selected chapters from Management and Cost Accounting (Drury, C.) and the core texts of Unit 1 Strategic Business Management and Planning – in particular Exploring Corporate Strategy (Johnson, Scholes and Whittington), and Strategic Management Awareness and Change (Thompson and Martin). Students will also need to do additional reading and research on risk management and mapping, benchmarking, strategic management accounting, international aspects, lean enterprise, BBTR and other topics. Often there is sufficient information on the internet to be able to address examination questions. Some thought and analysis of

The examination will assess six of the seven learning outcomes

how these issues relate to the subject and other aspects of the syllabus is, however, essential. It is not expected that students will use lots of references to the literature but they should demonstrate a critical awareness of the value and limitations of all the techniques and approaches covered in the lecture programme. Knowledge of their relevance, value and application to managers and organisations is essential, and will be thoroughly tested in the examination.

The examination will assess six of the seven learning outcomes set out in the syllabus (L.O. 7 is covered by the assignment). Tips for study in each of these outcomes include:

L.O. 1 Critically consider the impact of resource decisions, both internally and externally, on an organisation’s performance and effectiveness.

This focuses on identifying, appraising and managing resources to meet the strategic needs of the organisation. The subject matter is covered in Johnson, Scholes and Whittington chapters 3 and 13; and Thompson and Martin chapter 5. The key issues are the criteria for evaluating and allocating resources; methodologies for measuring these criteria and ensuring effective resource allocation; and auditing

The world equity and bond market are covered in Arnold Ch 11 and financial risk of operating in international markets in Arnold Ch 25. Calculations on hedging will not be examined and currency calculations will be limited to forward rates (the formulae are on the formulae sheet included in the question paper). Information on International Accounting Standards Board, harmonisation and translation exposure is available on the IASB home page or google ‘IASB harmonisation’ and ‘translation exposure’.

L.O. 4 Identify and critically assess the management and performance of tangible and intangible resources in business strategy and planning.

Students need to research business and process re-engineering (this is covered in Ch 22 of Drury, net searches and articles/ books by Michael Hammer); benchmarking (G.H. Watson on reading list and net searches) and interpretation and audit of financial statements. Information on interpretation of financial accounts is in the ABE Study Manual for Financial Accounting, good financial reporting texts (Alexander & Britton, Elliott & Elliott) or on the net (google ‘Interpretation of Financial Statements’ ‘Audit of Financial Statements’ etc. This learning bjective is an important area of the syllabus as process analysis is the foundation for activity-based management including benchmarking; universities see

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