Intended Learning Outcomes (Skills, Knowledge,
Attitude)
"How
important is it to actually live a company's values? Values provide internal and
external orientation and legitimize decisions and actions. They also send a
signal that the company is a reliable cooperation partner. They can, therefore,
help businesses lower their costs and improve their economic value creation. If
lived values have such advantages, why is explicit - and effective - values
management not as widespread as one might think? How do inconsistencies between
propagated values and actual behavior arise, and what is the role that misled
expectations among different stakeholders may play?"—Editor (Schöler,
Gabriele; Verl. Bertelsmann-Stiftung, pls. see literature)
Based on these
critical questions cited above the students shall learn the concepts of
·
Valuation
·
Creating Value
·
Digitalization
and technological advance
·
Capitalism
and how these
concepts can be implemented successfully into financial strategies.
After the
participation of this module the students are able to use the fundamental
knowledge about how the capitalistic system functions, how the management of
value creation of business works in a capitalistic context of a digital world,
how the valuation of a business is based on this knowledge and to analyze and
evaluate the results in a given context. The students are able to work on concrete
problems out of these areas and to apply with the help of structured quality
analyses and usable mathematical formulas. Especially in little working groups
the students can exchange, understand and test their new knowledge about these
areas of the module. Through the participation of this module the students
recognize the dependencies of financial strategies from the capitalistic system
in which it works and are able to use the knowledge about the economic system
and the creating of financial strategies to drive business to higher
longstanding value and transactions.
Contents
·
Valuation of
business
·
Managing for
value creation of business
·
Digital
strategies to increase the valuation of business
·
Capitalism as
the frame to understand value creation of business
·
Implementing
financial strategies
·
Thinking, Fast
and Slow (Kahneman)
·
Digital business
models
·
Finance of
innovations
Quantitative Methods
·
Models and methods for a valuation as state of the art
·
Models and methods for value creation incl. digital strategies
·
Models of Capitalism and its critics
·
Models and methods used in business
administration
Applied
methods in Economics and
Business administration
r
Analysis models and
methods (research and analysis models):
·
Process models
(e.g. procedure of due diligence, procedure of business acquisition)
·
Business
valuation models (individual and total valuation models)
·
Component models
(e.g. time series analyses for key figures development)
·
Normative
decision theory (e.g. assessment of the impacts of individual forms of
financing)
·
Qualitative
optimization models
·
Quantitative
optimization models
·
Forecasting
models (budget figures)
·
Models
of interaction (communication)
r
Quantitative empirical
methods (comparative – statistical, mathematical methods, data analysis):
·
Key figures on the financial
situation (such as liquidity, inventory turnover period), the income situation
(e.g. return on investment, interest expense ratio), the financial position
(e.g. cash flow figures, days payables outstanding); in this context, working
with primary data and secondary data
·
Quantitative comparative analyses
(e.g. statistical references from Standard & Poor’s)
·
Statistical analyses (e.g. medians of
key figures in rating classes)
·
Mathematical business valuation
methods of individual valuation; this includes:
·
Liquidation value method
·
Reproductive value method
·
Mathematical business valuation
methods of total valuation; this includes:
·
Capitalized earnings method
·
Multiplier method
·
Discounted cash flow method
·
Empirical analyses in the context of
case studies for business valuation (e.g. Weighted Average Cost of Capital,
Capital Asset Pricing Model)
r
Qualitative and
interpretative methods (expert interviews, polls, standardised surveys)
·
Qualitative
company analyses (branch, organizational structure, management, business
relationships, payment behavior)
·
Descriptive
decision theory
·
Prescriptive
decision theory
·
It is possible to
conduct expert interviews as part of the project work
Teaching and Learning Styles
-
Lectures and discussions: Theory and Reality
-
Case studies and group work
-
Special guests lectures (N.N.)
-
Seminar paper
Literature
Anderson,
Patrick L.: The Economics of Business Valuation: Towards a Value Functional
Approach. Stanford University Press, Stanford, Calif. 2012
Audretsch, David
B. / Link Albert N.: Valuing an Entrepreneurial Enterprise. Oxford Univ. Press,
Oxford 2012. Electronically published: http://books.google.de/books?id=DWNnX-BYx5gC&printsec=frontcover&hl=de&source=gbs_ViewAPI&redir_esc=y#v=onepage&q&f=false
Cryan, Dan /
Shatil, Sharron / Piero: Capitalism. A graphic guide. Gutenberg press, Malta
2009
Davidson, Ian /
Tippett, Mark: Principles of equity valuation. Routledge Pub. New York 2012.
Electronically published: http://books.google.de/books?id=CrFiNE27m1EC&printsec=frontcover&hl=de&source=gbs_ViewAPI&redir_esc=y#v=onepage&q&f=false
Doyle, Gillian:
The economics of the mass media. Edward Elgar Pub. Cheltenham 2006
Erasmus, Pierre
/ Dietmar, Ernst: International Business Valuation. UVK-Pub. München 2014
Fischer, Thomas:
A service perspective on value creation strategies. Harland media Publ.
Lichtenberg 2010
Fulcher, James:
CAPITALISM: A very short introduction. Oxford University press. Oxford 2004
Hawawini,
Gabriel / Viallet, Claude: Finance for Executives. Managing for Value Creation.
4th Ed. (or 5th Ed.) South-Western, Cengage Learning Publ. Mason, OH 2011.
Hirschheim, Rudy / Heinzl, Armin / Dibbern, Jens: Information System
Outsourcing – Towards Sustainable Business Value. 4th Edition,
Springer Verlag 2014
Kreutzmann,
Daniel: Company Valuation and Information in Analyst Forecasts. Logos Verlag,
Berlin 2010. Electronically published: http://books.google.de/books?id=2USnuW3tLsUC&printsec=frontcover&hl=de&source=gbs_ViewAPI&redir_esc=y#v=onepage&q&f=false
Malecki, Edward
J.: The digital economy business organization, production processes and
regional developments. 1. Publ. London 2008
McKinsey &
Company: Valuation. Measuring and Managing the Value of Companies. 5. Ed. John
Wiley & Sons, Inc. Hoboken, New Jersey 2010
Meier, Andreas:
eBusiness & eCommerce managing the digital value chain. Springer Verlag,
Berlin 2009. Electronically published: http://books.google.de/books?id=4HZwDeu7VCwC&printsec=frontcover&hl=de&source=gbs_ViewAPI&redir_esc=y#v=onepage&q&f=false
Moore, Jason W.: Capitalism in the Web of Life – Ecology and the
Accumulation of Capital. Verso-Verlag 2015
Neal, Larry / Williamson, Jeffrey G.: The Cambridge History of
Capitalism – Two Volume Set. Cambridge University Press 2014
O‘Sullivan, Kevin:
Strategic Intellectual Capital Management in Multinational Organizations
Sustainability and Successful Implications. Business Science Reference.
Hershey, PA 2010
Piketty, Thomas:
Capital – in the Twenty-First Century. The Belknap Press of Harvard University
Press. Cambridge, Massachusetts London 2014
Provost, Foster
/ Fawcett, Tom: Data Science for Business – What you need to know about data
mining and data-analytic thinking. 1st Edition, O’Reilly & Associates 2013
Reilly, Robert
F.: The Handbook of Advanced Business Valuation. McGraw-Hill Pub, New York
2000.
Electronically published: http://books.google.de/books?id=vOnLAyTSk_wC&printsec=frontcover&hl=de&source=gbs_ViewAPI&redir_esc=y#v=onepage&q&f=false
Schöler,
Gabriele: Values management and value creation in business case studies of
internationally successful companies. Verl. Bertelsmann-Stiftung, Gütersloh 2009
Thomas, Rawley:
The valuation handbook valuation techniques from today's top practitioners.
Wiley Verlag, Hoboken 2010
More literature at the beginning of the course
Financial Strategies for Digital Technology Management