Strategic Financial Management

Module code: MN7060

Strategic Financial Management offers a comprehensive exploration of the key concepts, tools, and strategic decisions that shape modern finance. It equips you with key theoretical knowledge and analytical skills to support corporate finance decision-making. This module aims to develop your ability to analyse complex financial situations, make informed investment and financing decisions, and evaluate corporate strategies that drive long-term value creation. By combining theoretical foundations with real-world applications, the module equips you with the critical skills needed to navigate financial markets, manage corporate resources effectively, and align financial policies with overall business strategy. The course prepares you for leadership roles in finance, investment, consulting, and corporate management, fostering both technical competence and strategic thinking.

Unit 1: Foundations of Strategic Finance

This introductory unit establishes the essential building blocks of finance and sets the stage for strategic decision-making. You will engage with fundamental concepts and analytical tools, including the time value of money, valuation of payment streams, and key project appraisal techniques. The unit also introduces the concept of financial market efficiency, highlighting its implications for investment and financing decisions. By mastering these foundational elements, you will develop the analytical mindset necessary for evaluating financial opportunities and understanding the strategic context of financial decisions.

Unit 2: Asset Pricing

This unit focuses on how financial assets are priced and how investors make strategic allocation decisions in uncertain markets. You will explore portfolio theory, learning how to construct diversified portfolios that optimize risk and return, and delve into the Capital Asset Pricing Model (CAPM) along with multi-factor models to better understand the drivers of asset returns. Through these topics, you will develop a deep understanding of investment analysis and strategic asset allocation, preparing you to make informed investment decisions in both corporate and market contexts.

Unit 3: Corporate Finance

In this unit, the focus shifts to strategic corporate financial management and its role in maximizing firm value. You will analyse critical financial policies, including ownership structures, compensation policies, capital structure decisions, debt and dividend policies, and the strategic considerations involved in initial public offerings (IPOs). The unit further covers advanced valuation techniques and the strategic rationale behind mergers and acquisitions. By integrating theoretical frameworks with practical case studies, this unit equips you to evaluate and implement financial strategies that enhance competitive advantage and support long-term growth. You will leave with the ability to make strategic financial decisions that align with broader corporate objectives and create sustainable shareholder value.