Unit STRATEGIC ANALYSIS AND BUSINESS PLANNING

Course
Business administration
Study-unit Code
20A00096
Location
PERUGIA
Curriculum
Accounting strategy and control
Teacher
Andrea Cardoni
Teachers
  • Andrea Cardoni
Hours
  • 42 ore - Andrea Cardoni
CFU
6
Course Regulation
Coorte 2023
Offered
2024/25
Learning activities
Caratterizzante
Area
Aziendale
Academic discipline
SECS-P/07
Type of study-unit
Obbligatorio (Required)
Type of learning activities
Attività formativa monodisciplinare
Language of instruction

English
Contents

The course includes the main concepts, approaches and tools related to the business strategy, with a particular focus on strategic analysis and business planning.
During the course particular emphasis is given to the study of strategic analysis tools and their related interpretation and implementation issues. A focus on the analysis of business performance and value creation in a strategic perspective is provided.
Additionally, the analytical tools are framed in the field of business planning. The main scopes, contexts and components of the business plan are presented and discussed with reference to operational issues and entrepreneurial implications.
Reference texts

- Robert M. Grant, Contemporary Strategy Analysis, John Wiley and Sons Ltd., 2012 - Chapters I, II, III (par. 2 excluded), IV, V, VI
- Business planning guide – IFAC;
- Harvard Business Review, Entrepreneur’s Handbook, Harvard Business School Publishing Corporation, Boston, Massachussetts, 2018.
- Andrea Cardoni, Strategia e performance nel sistema d'impresa, Giappichelli, Torino, 2016.
Readings and supporting materials suggested during the lectures and the slides of the lectures available on Unistudium platform.
Educational objectives

The learning outcomes are referred to the following:
- knowledge of the main concepts of business strategy;
- knowledge of the logical steps for the implementation of strategic analysis;
- knowledge of the approaches and criteria to define objectives, values and results of an enterprise;
- knowledge of business performance and value creation analysis in a strategic perspective;
- knowledge of analysis framework and tools for external environment, industry and competitors;
- knowledge of the framework and tools for resources, capabilities and business processes analysis;
- knowledge of the main scopes, contexts and components of the business plan.
The main competence (i.e. the ability to apply the acquired knowledge) will be:
- to analyze the strategic profile of a company;
- to identify the relevant strategic drivers and features of external environment, competitive system and competitors;
- to analyze the internal structure basing on functional perspective, value chain and resource based view;
- to analyze and assess financial performance in a strategic perspective;
- to elaborate and interpret the business plan in the right operational perspective.
Prerequisites

In order to face the subjects described and the conceptual tools proposed with the necessary awareness, it is very important to have a good knowledge of business economics and principles of accounting.
Teaching methods

Face-to-face lectures, seminars, presentation and discussion of real cases.
For each topic covered in the first part a theoretical introduction is provided and the related analytical approach is presented, continuously referring to real cases and examples. To support the understanding of performance analysis and business planning some cases of calculation are performed and discussed.
During the lectures some group works will be assigned and, if applicable, evaluated on a individual basis.
Learning verification modality

In order to test the theoretical and technical capacity to apply the concepts learned during the course the students are required to implement a Strategic Analysis “Project Work” to be presented as part of the exam by the date/time of the session reserved to participate.
The project work final valuation counts for 10 points on the total score and it is assigned according to the following criteria:
- Completeness of the information required: 2 points;
- Clarity of language and formal style: 2 points;
- Contextualization of the frameworks: 2 points;
- Originality and personal elaboration: 2 points;
- Conceptual and calculative correctness:2 points.
Specific instructions to prepare and present the Project Work are provided in the Unistudium Platform and discussed during the classes.
In addition, the evaluation will be performed though a written test assigning two questions to assess the knowledge and competences related to the other parts of the program. The written test includes:
- an exercise of calculation related to the quantitative framework of the strategic analysis and business planning – counting up to 10 points;
- an open question on the theoretical concepts of the program – counting up to 10 points.
The time assigned for the written test is around 75 mins.
Extended program

From business strategy to strategic analysis
The concept of business strategy
General meaning. Specific meaning (Mintzberg 5 P). Levels of strategy. Strategic Business Unit.
Evolutionary perspective: from long range planning to strategic management
Evolutionary perspective of studies and schools. Formulating strategy: long range planning and strategic planning. The influence of behavioural approach and the strategic management perspective.
Strategic management: main features and the role of strategic analysis
The three steps of strategic management and the relevance of strategic analysis. Process and components of strategic analysis. FOCUS ON: SWOT analysis, VRIO analysis and Business Model analysis.

The strategic analysis in a qualitative perspective
The analysis of core perspectives and strategic objectives
Shareholder approach and stakeholder approach. Corporate social responsibility. Vision, mission and values. Goals and objectives setting criteria (SMART). Types of objectives and balanced scorecard logic. The unifying perspective of value creation.
The analysis of external environment
Macro-environment: PEST analysis and Stakeholder analysis. Micro-environment: Industry structure and five forces analysis. Dynamic competition and game theory. Market segmentation and strategic groups.
The analysis of internal environment
Functional approach: firm as a system. Process approach: firm as a value chain. Resource based approach and the VRIO analysis.

The strategic analysis and planning in a quantitative perspective
Financial statement, investments and financial structure
General structure of financial statement. Financial method of classification. Operational method of classification. Analytical relevance of financial statement components in a strategic perspective: Net Working Capital, Net Invested Capital, Equity, Net Financial Position. FOCUS ON: planning the financial investments and structure.
Income statement and economic performance
General structure of income statement. Value added method of classification and margins (Value Added and EBITDA). Functional method of classification and margin (Industrial Margin). Fixed costs and variable costs method of classification and margin (Contribution Margin), break even point and operational leverage. FOCUS ON: planning the economic performance.
Profitability, financial sustainability and economic value added analysis
Profitability ratio (ROI) and its determinants. The indicators for analyzing financial sustainability (Financial leverage, Reimbursement Capacity, Interest Incidence). The economic value added (E.V.A.) analysis: overview. NOPAT and WACC. The impact of financial leverage on value creation. FOCUS ON: planning the value creation and financial sustainability.
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