Research Paper Example About Corporation

Course Breakdowns based on review of course materials from: SUNY Albany, University of Pennsylvania, MIT, Lehigh University, University of Notre Dame, University of Michigan, Indiana University, University of Texas, Virginia Tech, University of Dayton, Boston College, Temple University, University of Wisconsin, Gannon University, Ithaca University, Iona College, University of Maryland, Cornell University, University of California (Berkley), University of Connecticut, University of Toronto (Canada), McMaster University (Canada), Dalhousie University (Canada), University of Alberta (Canada), University of British Columbia (Canada)

  1. Major Subject Area: Accounting
    1. Financial & Accounting Compliance
    2. Accounting for Stock-Based Compensation
    3. Assurance Services
    4. Tax Impact on Decisions
    5. Accounting Systems & Controls
    6. Tax Planning
    7. Accounting for Complex Financial Structures
    8. Audit Services
    9. Governmental Accounting
    10. Nonprofit Accounting
    11. Taxes & Business Strategy
    12. Income Tax Accounting
    13. Cost Management Systems
    14. Financial Statements
    15. Statistical Applications in Accounting
    16. Principles of Taxation
    17. Cost Accounting
    18. Tax Administration
    19. Accounting for Mergers & Acquisitions
    20. Auditing (Great Neck Publishing)
    21. Accounting Systems for Managerial Decisions
    22. International Financial Accounting

  2. Major Subject Area: Finance
    1. Portfolio Management
    2. Stock & Bond Values
    3. Venture Capital & the Finance of Innovation
    4. Corporate Financial Strategy
    5. Risk & Rates of Return
    6. Time Value of Money
    7. Behavioral Finance
    8. Management of Financial Institutions
    9. Investment Management
    10. Common Stock
    11. Preferred Stock
    12. Long-Term Debt
    13. Cash & Marketable Securities
    14. Regulatory Issues in Financial Services
    15. Business Forecasting
    16. Energy Financial Risk Management
    17. Capital Markets
    18. Financial Derivatives
    19. Finance of Fixed Income Securities, The
    20. Buyouts of Acquisitions
    21. Bankruptcy & Organization
    22. Investment Concepts
    23. Corporate Financial Management
    24. Corporate Finance
    25. Commercial Bank Management
    26. Managerial Finance (Great Neck Publishing)
    27. Financing the Corporation
    28. Money & Banking
    29. Industrial Organization & Finance
    30. Fundamental vs Technical Financial Analysis
    31. Basic Concepts in Finance
    32. Accounts Receivable & Inventories
    33. Online Trading
    34. History & Processes of the Stock Market
    35. Mergers & Acquisitions
    36. Financial Statement Analysis
    37. Corporate Valuation
    38. Sub-prime Lending
    39. Swaps
    40. Value for Money
    41. Business Finance
    42. Corporate Financial Practice: Factoring, Supply Chain Finance & Global Treasuries
    43. Financial Markets & Institutions
    44. Global Finance (Great Neck Publishing)
    45. Derivatives & Management of Risk
    46. Real Estate Finance
    47. Financial Management in Business
    48. Trading Costs
    49. Financial Planning & Policy for Large Corporations
    50. Cash Flow
    51. Terminal Value
    52. Debt Valuation
    53. Stock Indexes
    54. Financial Incentives
    55. Financial Ratios
    56. Financial Hedging
    57. Financial Globalization
    58. Dividend Policy
    59. Financial Information Systems
    60. Financial Security Analysis
    61. Corporate Leasing
    62. Warrants & Convertibles
    63. Stock Markets
    64. Options & Futures Markets
    65. Foreign Currency Exchange & Risk
    66. Finances of International Banking
    67. Money Markets
    68. Investment Valuation & Analysis
    69. International Corporate Finance
    70. Trading & Markets
    71. Applied Global Money Management
    72. Strategic Financial Management
    73. Corporate Financial Policy
    74. Use of Managerial Economics in Finance
    75. Role of International Financial Markets
    76. International Financial Management

  3. Major Subject Area: Law
    1. Commercial Law
    2. Business Law
    3. Business Succession Planning & Transfers
    4. Employment Problems & the Law
    5. Legal Aspects of Marketing
    6. Legal Aspects of Technology Management
    7. Internet & Online Law
    8. Ethical Responsibilities of Business, The
    9. Real Estate Law
    10. Trust & Estate Planning & Law
    11. Electronic Law
    12. Law of Property
    13. Legal Environment of Business
    14. Employment Law for Business
    15. Wills, Trusts, Estates & Taxation
    16. International Business Law
    17. Law & the Environment
    18. Labor Relations Law
    19. Securities Regulations
    20. ISO 14000

  4. Major Subject Area: Management
    1. Business Cycle
    2. Human Resource Information Systems
    3. Negotiations: Managing Conflict within Organizations through Negotiations
    4. Consulting to Growth Companies
    5. International Political Economy
    6. Politics of the Multinational Firm
    7. Enterprise Risk Management
    8. Corporate Development: Mergers & Acquisitions
    9. Managing the Process of Innovation
    10. IT Management Applications
    11. Operations Management
    12. Critical Thinking in the Management of Technology
    13. Management of Human Resources
    14. Customer Relationship Management
    15. Creating, Managing & Presenting the Arts
    16. Multinational Management
    17. Leadership & Motivation
    18. Comparative Management
    19. Project Management
    20. Special Topics in Management
    21. Motivation, Productivity & Change Management
    22. Community Reinvestment
    23. Organizational Behavior
    24. Communications in the Workplace
    25. Organization Design
    26. Human Resource Issues in High Performing Organizations
    27. Labor Relations & Human Resource Management
    28. Corporate Strategy
    29. Logistics Management (Great Neck Publishing)
    30. Management Competencies
    31. Management Consulting
    32. Business Strategy & Policy
    33. Strategies & Practices of Family-Controlled Businesses
    34. Strategic Management in a Sustainable Society
    35. Group Dynamics (Great Neck Publishing)
    36. Team Management
    37. Strategic Implementation
    38. Sustainable Competitive Advantage
    39. Organizational Consulting
    40. Procurement & Supply Management
    41. Competitive Strategy
    42. Behavioral Foundations of Management
    43. Principles of Management
    44. Resource Planning
    45. Nonprofit Leadership & Management
    46. Event Management
    47. Directing & Managing Volunteers
    48. Building Human Assets
    49. Managerial Leadership
    50. Decision Making
    51. American Business History
    52. Managing in a Turnaround Environment
    53. Managing Inter-firm Alliances
    54. Executive Leadership
    55. Scenario Planning
    56. Technological Innovation
    57. Management of Globalization
    58. Microeconomics & Technical Change
    59. Gender & Management

  5. Major Subject Area: Marketing
    1. Marketing Methods
    2. Law of Marketing & Antitrust
    3. Future of Integrated Marketing Communications
    4. Value-Based Strategies for Business Marketing
    5. Marketing Decision-Making
    6. Consumer & Organizational Buyer Behavior
    7. Advertising Campaigns
    8. Multinational Marketing
    9. Public Relations
    10. Strategic Marketing (Great Neck Publishing)
    11. Applied Probability Models in Marketing
    12. Professional Selling in Business to Business Marketing
    13. Market of Consulting in Business
    14. Pricing Strategies
    15. New Product Management
    16. Channel Management
    17. Applications for Business Consulting in Marketing
    18. Pricing Policy
    19. Marketing Management
    20. Consumer Behavior
    21. International Marketing
    22. Principles of Advertising
    23. Business Marketing
    24. Integrated Marketing Communications
    25. Internet Marketing Strategies
    26. Marketing Strategy
    27. Models for Marketing Strategy
    28. Personal Selling & Sales Management
    29. Buyer Behavior
    30. Sales Force Management
    31. Retail Merchandising
    32. Promotional Policies
    33. Marketing Principles
    34. Principles of Retailing
    35. Product Innovation
    36. Advertising Management
    37. Brand Management
    38. Marketing Research
    39. Trade Show Participation
    40. Key Account Management

  6. Major Subject Area: Information Technology
    1. Process Management for Quality
    2. Communications, Networking & Security
    3. Decision Support Systems
    4. Data Communications
    5. Systems Analysis & Design
    6. Business Statistics
    7. Quantitative Analysis for Business Decisions
    8. Computer Applications in Business
    9. Business Application Implementation
    10. Data Management
    11. Operations & Business Process Management
    12. Business Application Development
    13. Business Information Systems & Technologies

  7. Major Subject Area: Actuarial Science
    1. Actuarial Risks -- Operations & Markets
    2. Risk Theory & Credibility
    3. Financial Strategies & Analysis -- Insurance
    4. Statistical Methods for Actuaries
    5. Survival Models
    6. Theory of Interest
    7. Actuarial Models
    8. Loss Distributions
    9. Stochastic Processes
    10. Actuarial Statistics
    11. Theory of Life Insurance

  8. Major Subject Area: Business & Public Policy
    1. Economic Analysis of Law
    2. Drug Policy
    3. Program & Policy Design
    4. Managerial Economics (Great Neck Publishing)
    5. Cost Benefit Analysis: Decision Making in the Public Sector
    6. Business, Ethics & Society
    7. Business in the Global Political Environment
    8. Urban Public Policy
    9. Private Sector Economic Development
    10. Impact of Government Policy on Poor Children
    11. Urban Fiscal Policy
    12. Political Economy of Social Policy
    13. Arts & Cultural Policy
    14. International Housing Comparisons
    15. Environmental Management
    16. Economic Problems of Developing Areas
    17. Nations, Politics & Markets
    18. International Industrial Development Strategies
    19. Technology in Global Markets
    20. Race, Ethnicity & Public Policy
    21. Science & Technology Policy
    22. Impact of Government Policy on Families
    23. Public Budgeting
    24. Economics of Public Problem-Solving
    25. Corporate Sponsorships
    26. Corporate Leaders as Volunteers
    27. Corporate Social Responsibility
    28. Corporate Accountability
    29. Diversity in the Workplace
    30. Risk Analysis & Public Policy

  9. Major Subject Area: Entrepreneurship
    1. New Ventures & the Law
    2. Current Issues in Entrepreneurship
    3. Entrepreneurship & Venture Initiation
    4. Funding New Ventures
    5. Entrepreneurial Marketing
    6. Human Resources for the Emerging Firm
    7. Entrepreneurship
    8. Social Entrepreneurship
    9. Entrepreneurship & Business Planning
    10. Technological Innovation & Entrepreneurs
    11. Venture Capital & Entrepreneurial Management
    12. Family Business Strategy
    13. Launching New Ventures Through Technology
    14. Real Estate Entrepreneurship

  10. Major Subject Area: Health Care Management
    1. Health Care Systems
    2. Economics of Medical Care
    3. Financing of Health Care Delivery
    4. Clinical Issues in Health Care Management
    5. Comparative Health Systems
    6. Health Care Strategy
    7. Health Care Management
    8. Health Care & Information Technology
    9. Integrated Health Delivery Systems
    10. Quality Improvement in Health Care
    11. Health Care Policy & Politics
    12. Law of Healthcare in America
    13. Health Care Management & Policy

  11. Major Subject Area: Insurance & Risk Management
    1. Employee Benefit Plan Financing
    2. Property & Liability Insurance
    3. Employee Benefit Plan Design
    4. Health Insurance
    5. Life Insurance
    6. Government Insurance Programs
    7. Risk Management (Great Neck Publishing)
    8. Risk Analysis & Environmental Management
    9. Claims Adjusting
    10. Managing Pure Risks: Operations & Markets
    11. Business Estate Planning
    12. Business Insurance (Great Neck Publishing)
    13. Principles of Risk Management
    14. Liability Risk Management
    15. Social Security & Medicare
    16. Labor Legislation & Unions
    17. Risk Management & Insurance
    18. Insurance Operations
    19. Personal Lines Insurance & Risk Management
    20. Management of Insurance Enterprise
    21. Risk Treatment

  12. Major Subject Area: Operations & Information Systems
    1. Forecasting Techniques
    2. Service Operations Management
    3. International Supply Chain Management
    4. Computer Models in Supply Chain Management
    5. Operations & Competition
    6. Decision Processes: A Core Business Activity Supported by Information Systems
    7. Process Management for Manufacturing
    8. Management Science (Great Neck Publishing)
    9. Negotiations
    10. Information Strategy & Economics
    11. Customer Information Systems

  13. Major Subject Area: Statistics
    1. Financial & Economic Time Series
    2. Engineering Statistics
    3. Statistical Reasoning
    4. Mathematical Statistics
    5. Engineering Statistics for Manufacturing Systems
    6. Probability & Statistics
    7. Advanced Statistical Methods
    8. Statistical Principles for Problem Solving
    9. Statistical Quality Control
    10. Regression Analysis
    11. Descriptive Statistics
    12. Statistics & Data Analysis
    13. Statistical Computing
    14. Theoretical Statistics
    15. Applied Probability Models - Marketing (Statistics) & Applied Probability Models
    16. Forecasting Methods for Management
    17. Decision Making Under Uncertainty
    18. Normal & Binomial Distributions
    19. Numerical Data Presentation
    20. Intermediate Applied Statistics
    21. Sample Survey Design
    22. Applied Regression & Analysis of Variance
    23. Introduction to Nonparametric Methods
    24. Time Series
    25. Process Analysis

  14. Major Subject Area: Economics
    1. Economic Applications of Game Theory
    2. Quantitative Economics Analysis
    3. Experimental Economics (Great Neck Publishing)
    4. Information, Strategy & Economics
    5. Contract Theory
    6. Behavioral Economics & Finance
    7. Mathematics in Economics
    8. Dynamic Optimization
    9. Comparative Economic Systems
    10. Econometrics (Great Neck Publishing)
    11. Policy Debates
    12. Economic Growth
    13. Computational Methods for Management
    14. Economics of Business Regulations
    15. Principles of Macroeconomics
    16. Consumer Demographics
    17. Applied Macroeconomics
    18. Microeconomic Theory
    19. Behavioral Economics
    20. Economics of Regional Development
    21. Productivity
    22. Quantitative Applications in Economics & Finance
    23. Environmental & Natural Resource Economics
    24. Special Problems in Economics
    25. Local Economic Empowerment Development Strategy Certification
    26. Technology Transfer (Great Neck Publishing)
    27. Computational Methods for Economics
    28. Economics of Urban Development
    29. Transfer Pricing
    30. Supply
    31. Fixed Income Securities & Economics
    32. Industrial Organization (Great Neck Publishing)
    33. International Trade Economics
    34. Principles of Microeconomics (Great Neck Publishing)
    35. Economic Effects of Climate Change
    36. Stages of Economic Maturation
    37. Game Theory (Great Neck Publishing)
    38. International Economic Development
    39. Monetary Policy
    40. Monetary Theory (Great Neck Publishing)
    41. Human Resource Economics
    42. Research Methods in Economics & Business
    43. Evolution of Economic Thought
    44. Labor Demand
    45. Labor Supply
    46. Price Analysis
    47. Elasticity (Great Neck Publishing)
    48. Microeconomics & Public Policy
    49. Equilibrium (Great Neck Publishing)
    50. Business Conditions Analysis
    51. Aggregate Supply
    52. Aggregate Demand
    53. Market Failure
    54. Income Distribution
    55. Agricultural Economics (Great Neck Publishing)
    56. Collective Bargaining
    57. Geographical Economics
    58. Labor Economics
    59. Traditional Managerial Economics

  15. Major Subject Area: Business Information Systems
    1. Management Information Systems
    2. Structured Programming
    3. Business Data Management
    4. Managing Information System Analysis & Design
    5. Strategic & Managerial IT Issues
    6. Object-Oriented Systems Development
    7. B2B Business Models
    8. Use of Web 2.0 in Business, The
    9. Business Applications of Java
    10. Data Structures
    11. Web-based Business Applications
    12. Database Management
    13. E-Business Enterprise Applications
    14. E-Commerce (Great Neck Publishing)
    15. Information System Project Management
    16. Networks in Business
    17. Internet Computing (Great Neck Publishing)
    18. Internet Security
    19. Personal Computers in Business
    20. Business Applications on Spreadsheets
    21. Networking
    22. 21st Century IT Applications
    23. Information Systems Development (Great Neck Publishing)
    24. Information Systems Control
    25. Enterprise Resource Planning
    26. Business Data Communications
    27. Telecommunications in Business
    28. Information Systems Auditing

  16. Major Subject Area: Manufacturing
    1. Manufacturing Processes
    2. Design for Manufacturability
    3. Lean Manufacturing
    4. Manufacturing Strategies
    5. Machining Processes
    6. Statistical Quality Control in Manufacturing
    7. Control of Manufacturing Systems
    8. Concept Engineering
    9. Contract Manufacturing
    10. Process Performance Management
    11. Process Design Requirements
    12. Reconfigurable Manufacturing Systems
    13. Business Metrics
    14. Business Impact Analysis
    15. Computer Aided Mechanical Design
    16. Reconfigurable Agile Manufacturing
    17. Manufacturing Systems Design
    18. Just in Time (JIT) Manufacturing
    19. Operational Cost
    20. Capital Budgeting

  17. Major Subject Area: International Business
    1. Global Marketing
    2. International Real Estate Investing
    3. Common Market (Great Neck Publishing)
    4. Customs Union
    5. Multinational Business Finance
    6. Business in Emerging Markets
    7. International Banking
    8. Development of Nations in the Global Economy
    9. International Advertising
    10. Growth of Nations in the Global Economy
    11. Exchange Rate
    12. Economic Unions
    13. Gold Standard
    14. Balance of Payments
    15. Trade Creation & Diversion
    16. Globalization & International Financial Management
    17. Globalization & International Accounting
    18. Topics in International Business
    19. Globalization & International Business
    20. Export-Import Operations
    21. International Management of Human Resources
    22. Environment & the Global Economy
    23. International Financial Markets
    24. Bretton Woods System
    25. International Business Operations
    26. Global Issues in Management
    27. Managing the Global Workforce
    28. Types of Business Organizations
    29. International Corporate Travel
    30. Global Outsourcing
    31. European Union & its Expansion
    32. Offshoring
    33. North American Free Trade Agreement
    34. Geopolitics
    35. Cross-Cultural Relations

  18. Major Subject Area: Business & Government
    1. Elections, Unemployment & Inflation
    2. Elections & Economic Growth
    3. National Elections & Business Cycles

 

 

This article focuses on corporate financial strategy. It provides an overview of the history, strengths, and weaknesses of the corporate financial strategy field. The main components of corporate financial strategy, including value-based management, strategic planning, mergers and acquisitions, cost analysis, and capital budgets, are addressed. The relationship between corporate financial strategy and investor relations are described.

Keywords Business Strategy; Business Units; Capital Budgeting; Capital Budgets; Corporate Development; Corporation; Cost Analysis; Cost Benefit Analysis; Cost-Effectiveness; Financial Strategy; Growth; Growth Companies; Investor Relations; Operating Business Plan; Performance; Strategic Planning; Value-Based Management; Vertical Merger

Finance: Corporate Financial Strategy

Overview

Corporate financial strategy is a business approach in which financial tools and instruments are used to assess and evaluate the likely success and outcomes of proposed business strategies and projects. In the twenty-first century, corporate leaders and decision makers use corporate financial strategy to:

  • Actively enhance shareholder value
  • Fundraise
  • Attain venture capital
  • Promote corporate growth.

Corporations promote growth through organic or inorganic business activities. Corporate growth refers to economic expansion as measured by any of a number of indicators such as: Increased revenue, staffing, and market share. Issues that effect corporate value and growth include human capital, intellectual property, change management, and investment funding. Growth corporations tend to have an operating business plan that guides the company toward growth choices and activities. An operating business plan refers to a dynamic document that highlights the strengths and weakness of the company and guides the company toward learning and increased efficiency. A corporation's operating business plan is informed and driven by its corporate financial strategy.

The Combination of Finance

The field of corporate financial strategy brings together the forces of corporate finance and corporate strategy to compliment and balance one another. In successful corporate finance strategy, corporate finance and strategy functions work together to create shareholder value. Corporate financial strategy is a multi-faceted and multi-field approach to business operations and management. The history of finance and strategy in corporate settings has been one of divisiveness and territoriality. Finance and strategy, and financial and strategic decision making in general, have long been considered separate intellectual and decision-making forces. Chief financial officers have been known to favor either finance or strategy as their main decision making influence. For example, chief financial officers and managers that favor economic or finance-based decision-making may rely on managerial economics or applied economics to make business decisions. Ultimately, there is no substantial conflict between corporate finance and corporate strategy tools and instruments. Finance and strategy, which have a history of being separate endeavors in the corporate sector, are complimentary functions that have the potential to reinforce and balance one another. Corporations that integrate finance and strategy functions have the greatest opportunities for growth and value added endeavors (Thackray, 1995).

Corporations, in the twenty-first century, share many of the same characteristics. For example, the modern corporation is usually organized into business units. Each business unit within the modern corporation is accountable for its' own profits or losses. Business planning is generally decentralized. Business unit product line managers focus on profits for single products over the shorter term. Rapid development and innovation in information technology continues to change production functions and the nature of the products and services sold and delivered to customers (Egan, 1995). Despite the similarities that characterize modern corporations, corporations do differ in their ability to combine finance and strategy factors. In the increasingly competitive global market, successful integration between finance and strategy dimensions may mean the difference between corporate success and corporate failure. Chief financial officers, managers, and planning teams that use financial strategy as their decision-making compass may create more wealth and growth for their companies and shareholders than those corporations that base their business decisions on either finance or strategy.

Steps for Developing Successful Corporate Financial Strategy

Corporate financial strategy is most successful when the strategy is maintained internally and aligned with the operations of the corporation. Fully integrated corporate financial strategies can be developed using the following steps (Mallette, 2005):

  • Build a sufficient capital structure: Capital structure refers to the means through which a company finances itself. Financing may come from long term-debt, common stock, and retained earnings. Corporations can determine the best capital structure for its purposes through the use of three forms of analyses: Downside cash flow scenario modeling, peer group analysis, and bond rating analysis. Downside cash flow scenario modeling is a process in which a capital structure is taken from a set of downside cash flow scenarios. Peer group analysis is a process in which common capital structures and fads of peer businesses, are evaluated for insight into operating features. Bond rating analysis is a process in a review of the debt capacity within certain debt ratings.
  • Determine the correct market valuation: Correct market valuation evaluates whether the corporation is undervalued or overvalued in the marketplace. Market valuation refers to a measure of how much the business is worth in the marketplace. Review financial measures such as investor expectations for growth, margins, and investments. Compare investors' expectations and managements' expectations to check for disparity.
  • Establish the optimum corporate financial strategy: Develop an optimum strategy for value creation that provides sufficient funding, financial balance, and a growing cash reserve.

Ultimately, corporate financial strategy is a firm-specific enterprise. Corporations design their individual corporate financial strategies based on their available tools, resources, insights, goals, and objectives. Common components of corporate financial strategies include: Value-based management, strategic planning, mergers and acquisitions, cost analysis, and capital budgets. The following section describes and analyzes the main components of corporate financial strategies used today in the private sector. This section serves as the foundation for later discussion of the relationship between corporate financial strategy and investor relations.

Applications

Chief financial officers, managers, and planning teams develop their corporate financial strategies to maximize and optimize growth and shareholder value. Corporate financial strategies are characterized as return driven strategies. A return driven corporate strategy refers to a set of corporation specific guidelines for creating, maintaining, and analyzing corporate strategy focused on utmost, long-range wealth development. In the twenty-first century, managers have an increased responsibility to create shareholder value, watch the performance of a business, and safeguard long-term business success. Return driven corporate financial strategy prioritizes value added outcomes and directs the business with a critical eye toward return, value, and growth (Frigo, 2003). The following components of corporate financial strategies, including value-based management, strategic planning, mergers and acquisitions, cost analysis, and capital budgets, are used by chief financial officers, managers, and planning teams to create shareholder value.

Value-Based Management

Chief financial officers, managers, and planning teams may choose to base their corporate financial strategy on the principles of value-based management. Value-based management refers to a management approach focused on maximizing shareholder value. Value-based management includes strategies for creating, measuring, and managing value. Value-based management is an integrated and holistic approach to business that encompasses and informs the corporate culture, corporate communications, corporate mission, corporate strategy, corporate organization, corporate decision making, and corporate awards and compensation packages. The economic value added (EVA) strategy is one of the most common tools used in value-based management. Economic value added refers to the net operating profit minus a charge for the opportunity cost of all the capital invested in the project. Economic value added analysis is considered a beneficial lens for looking at varying company unit performances on a cost-of-capital basis where risks are adjusted. Value added managers may receive compensation based on the outcome of economic value added analysis. Ultimately, the economic value added approach is a measure of economic performance and a strategy for creating shareholder wealth (Bhalla, 2004). Critics of economic...

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