TalTech School of Business and Governance

MMO5530 Strategic and Financial Management

Extended syllabus
Spring 2023

Course aims/objectives: To provide knowledge and practical skills on basics of strategic management as well
as fundamentals of financial management, with the focus on making investment
decisions.

Learning outcomes: The student:

1. Understands the main functions of a company, and the essence of strategic
management.
2. Can analyse the internal and external environment, as well as strengths and
weaknesses of a company.
3. Can find the critical success factors and carries out competitor analysis.
4. Knows how to develop alternative strategies and prepare the respective
implementation plans.
5. Understands the principles of making investment decisions, can analyse an
investment project.
6. Can find the required rate of return (cost of capital) for investment projects as well
as companies and choose the appropriate approach for evaluation investment
decisions, the related risks, and cash flows.

Brief description of the The course focuses on two key elements of running an enterprise: strategic
course and topics to be management and financial management. First, it enables to understand
covered: organizational setup, the challenges, and the environment in which the business
operates, the direction the management intends to head, the strategic plans to for
getting the enterprise moving in the intended direction and the tasks of implementing
the chosen strategy successfully. The course aims to equip students with the core
concepts, frameworks, and techniques of strategic management. Second, the course
focuses on one of the main tasks of financial management - making investment
decisions.

Language of the course: English

ECTS credits: 6 ECTS

Coverage of SDGs and SDGs 4, 8, 10, and 12 are thoroughly covered, SDG 1, 3, 4, 7, 13 and 16 in a more
ERS (sustainable superficial form and ethical dilemmas are discussed in the context of the general
development goals, management.
ethics, responsibility and
sustainability):

Students: This is a compulsory course for students studying on MARM06/22 programme.

Special needs: Persons with disabilities can participate in this course. Please inform the professor in
the beginning of the course of any special instruction, or assessments of this course
that may be necessary to enable you to fully participate in this course.

Registration: Students who would like to take the course should declare the course in the ÕIS
(Student Information System) by deadlines set in the academic calendar.

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Prerequisite courses General management and leadership knowledge and/or practice.
and/or knowledge:

Prerequisite resources: MS Office programmes. For free student download see the instructions
https://confluence.ttu.ee/it-info/it-arvuti-ja-oppetoeoekoht/tarkvara/microsoft-
office-kodukasutus

Professor(s): Mike Wahl, PhD, Associate Professor, mike.wahl@taltech.ee

Kalle Ahi, MA, Lecturer, kalle.ahi@taltech.ee

Contacting Professor(s): Preferred means of contact e-mail, responses provided within two workdays (48h).

Schedule for classes: Please see timetable in ÕIS https://ois2.ttu.ee/uusois/uus_ois2.tud_leht

Study process Flipped learning process where students are actively participating in the lectures,
description: seminars, and consultations. Students must do the basic learning prior to working
face-to-face with the teacher and then cover the applied learning and any problems
in class, there is less passive learning in class and more active and personalised
learning. Independently students are expected to do written quizzes, home
assignments, prepare presentations, and write individually the Strategic Audit report
(problem-based case study).

Course’s e-support: Course materials can be accessed via the e-learning environment Moodle under the
course title Strategic and Financial Management
https://moodle.taltech.ee/course/view.php?id=24492

Students can enrol to the course themselves using the password: MMO5530

If you have no Moodle account yet, please create it by filling in the registration form
at https://moodle.taltech.ee/login/signup.php

Study literature: Ross, S. A., Westerfield, R. W., Jaffe (2022). Fundamentals of Corporate Finance. 13th
ed. McGraw-Hill/Irwin. (RWJ)

Wheelen, T. L., & Hunger, J. D. (2012). Strategic management and business policy:
Toward global sustainability (13th ed.). Upper Saddle River, NJ: Prentice Hall.

Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic
management and business policy: Globalization, innovation and sustainability (15th
ed.). Harlow, United Kingdom: Pearson Education Limited.

All compulsory course literature and material can be found in Moodle

ASSESSMENT Examination

Assessment methods Assessment criteria

SM Quiz 1 to 5 (Evaluates
learning outcomes 1, 5
and 6) independently
solved test in Moodle
Maximum 100 points. Differentiated assessment:
„1“ – 51-60 points – poor – minimum acceptable achievement of the most
important learning outcomes along with application of knowledge and skills in a
typical and limited manner. In atypical cases there are apparent both a serious
lack of confidence as well as lack of knowledge and skills.
„2“ – 61-70 points – sufficient achievement of learning outcomes, along with
application of knowledge and skills in a typical manner. In atypical cases there
are apparent both a lack of confidence as well as lack of knowledge and skills.
„3“ – 71-80 points – good achievement of learning outcomes, along with
proficiency in applying skills and knowledge in a relevant manner. A certain

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Assessment methods
FM Homework
assignments 1 to 5
Strategic Audit part I and
II
(Evaluates learning
outcomes 2 to 6)
independently prepared
presentation slides and a
short in class presentation
Report
(Evaluates learning
outcomes 2 to 6)
independently written
report in Moodle
Assessment criteria
imprecision and lack of confidence are apparent in the depth and detail of
knowledge and skills.
„4“ – 81-90 points – very good achievement of learning outcomes, along with
proficiency in applying skills and knowledge in a relevant and creative manner.
Some details of knowledge and skills my exhibit errors which are neither
substantive nor serious.
„5“ – 91-100 points – outstanding and particularly profound achievement of
learning outcomes, along with creativity and consummate proficiency in
applying skills and knowledge.
The following criteria are used based on 100 points scale. Differentiated
assessment:
„1“ – 51-60 points – poor level of assignment solving, i.e. the student has
selected generally correct formulas/methods, but significant shortcomings occur
in the calculations/conclusions. There are misinterpretations of main results and
the additional questions have not been answered correctly.
„2“ – 61-70 points – satisfactory level of assignment solving, i.e. the student has
selected correct formulas/methods and the calculations/ conclusions are
partially correct, but the final answers/ conclusions are incorrect and the
additional questions have not been answered correctly.
„3“ – 71-80 points – good level of assignment solving, i.e. the student has
selected correct formulas/methods and most of the calculations/conclusions are
correct, but due to a minor mistakes the final answers/conclusions are incorrect
and the additional questions have not been answered correctly.
„4“ – 81-90 points – very good level of assignment solving, i.e. the student has
selected correct formulas/methods, the final answers/conclusions and
calculations are correct, but some of the additional questions have not been
answered.
„5“ – 91-100 points – excellent level of assignment solving, i.e. the student has
selected correct formulas/methods, the calculations are correct, the final
answers/conclusions are correct and all the additional questions have been fully
answered.
Maximum 10 points. Differentiated assessment:
„1“ – 5.1-6.0 points – poor – main points are not clear and lack significant detail.
Some information is linked to the presentation topic. Information is loosely
organized.
„2“ – 6.1-7.0 points – sufficient achievement of learning outcomes, main points
are somewhat clear but could use more detail. Some information is linked to the
presentation topic. Information is organized.
„3“ – 7.1-8.0 points – good achievement of learning outcomes, main points are
somewhat clear but could use more detail. Most information is linked to the
presentation topic. Information is organized.
„4“ – 8.1-9.0 points – very good achievement of learning outcomes, main points
are clear and detailed. Information is linked to presentation topic. Information is
well organized.
„5“ – 9.1-10 points – outstanding and particularly profound achievement of
learning outcomes, main points are very clear and very detailed. Information is
directly linked to presentation topic. Information is very organized.
Maximum 100 points. Differentiated assessment:
„1“ – 51-60 points – poor – the report contains the minimum of required
elements, but the terminology is not used correctly and in the right context,
much smaller contribution than required, formatting errors exists.
„2“ – 61-70 points – sufficient achievement of learning outcomes, the report
contains the required elements, but the terminology is not used correctly and in
the right context, the deadline has not been respected, smaller contribution
than required, formatting errors exists.
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Assessment methods Assessment criteria
„3“ – 71-80 points – good achievement of learning outcomes, the report meets
the requirements of both content and volume, the findings are not directly
derived from the research, linguistically difficult to understand, correct
formatting, there are some minor spelling mistakes.
„4“ – 81-90 points – very good achievement of learning outcomes, the report
meets all requirements of both content and volume, depth analysis, associated
with the broader organizational context, and the views and estimates of
arguments; expression is clear and understandable, correct formatting, there are
some very minor spelling mistakes.
„5“ – 91-100 points – outstanding and particularly profound achievement of
learning outcomes, the report exceeds requirements of both content and
volume, in-depth analysis, associated with the broader organizational context,
and the views and estimates of arguments; expression is clear and
understandable, correct formatting, there are no spelling mistakes.

Eligibility for Active and prepared seminar participation.

assessment:

Final grade formation: 1) Students perform a cumulative examination (SM Quiz 1 to 5, FM Home assignments
1 to 5) in written, which define 50% of the final mark,
2) Written homework (Strategic Audit part I and II, and the Report) defines 50% of the
final mark.

FG = (E+H)/2

The sum of points for each item is converted into a grade using the following
principles:
“5” excellent 91-100
“4” very good 81-90
“3” good 71-80
“2” satisfactory 61-70
“1” poor 51-60
“0” fail less than 51

Academic integrity: As a student at TalTech School of Business and Governance, you have an obligation
to conduct your academic work with honesty and integrity according to university
standards. It is expected that all work that you submit will be your own, and that you
have done the work that you are submitting. Plagiarism and cheating will not be
tolerated. Should you be found to be guilty of such activities, it will be followed with
grade “0” for the assignment or the whole course and a notice will be filed to the
School’s Committee for Handling Violations of Academic Practice and Contemptible
Behaviour. Depending on the Committee’s proposal, it may lead to Dean issuing a
letter of reprimand or in case of repeated or very severe misconduct, exmatriculation
from the University.

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Detailed schedule and topics
The semester plan is preliminary and might be changed in case of cancellations, changes in available reading
material, etc.

Week Topic Activities

Week 1 General and Strategic Before-class:
01.02.2023 Management Preparing for the course (expected 2 hours of work)
SOC1-312 E-learning: Please read the home page's introduction
to the course in Moodle and study the extended
syllabus.

In class:
Lecture: General and Strategic Management
Lecturer Mike Wahl

After-class:
Read Wheelen & Hunger (2012) Chapter 12 and
perform Moodle SM Quiz 1 (expected 4 hours of
work).
Open the quiz: 01.02.23 17:30
Close the quiz2: 08.02.23 16:00
Mike Wahl
Week 2 Introduction to Financial Before-class:
08.02.2023 Management Read before the lecture RWJ (2022) Chapter 1
SOC-312 “Introduction to corporate finance”. Pay special
1. Goals and fundamental attention to subchapters 1.1, 1.2, 1.4 and 1.5
principles of financial Read chapters 5 and 6 from RWJ. Take the practice
management test on time value of money (in Moodle).

2. Concept and applications In class:

of time value of money Lecture: Introduction to financial management and
brief review of time value of money
Lecturer Kalle Ahi

After-class:
Practice your skills with Excel financial functions. The
home assignment on Week 9 will be based on these
practice exercises (expected 12 hours of work).
Week 3 Introduction to capital budgeting E-Lecture means students independent work, we’ll
15.02.2023 not see each other at TalTech.
E-Lecture E-lecture: Read chapter 10 (RWJ). You may also read
chapter 9 (will be part of the reading for week 10)

Take the practice test in Moodle. The home

assignment on Week 10 will be partly based on these
practice exercises (expected 12 hours of work)

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SOC – physical contact at classroom (students come to TalTech School of Business and Governance premises for lectures / exercises)
Online – virtual contact over Moodle BBB (students do course activities with Professor online, following the provided link and materials)
E-Lecture – independent work (students do the indicated reading / tests / exercises from home, without Professor’s involvement, using
the materials provided)
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NB! Late assignments are not graded and cannot be resubmitted, missed tests cannot be retaken. In both said cases a student receives
a “0” (zero) grade for the late / missed test or assignment. If assignments are made available to the public, it constitutes impermissible
sharing of knowledge during the evaluation of the learning outcomes. A student who offers his/her knowledge to another student in an
un-allowed format has violated academic integrity and breached academic practices. Such activity can be sanctioned academically.
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 Week 4 Introduction to Strategic E-Lecture: “Introduction to Strategic Management
22.02.2023 Management and Business Policy and Business Policy” (Wheelen & Hunger, 2012) Read
E-Lecture the textbook chapters 1, 2, 3 and perform the SM
Quiz 2 (expected 6 hours of work).
Open the quiz: 22.02.23 16:00
Close the quiz: 01.03.23 16:00
Mike Wahl
Week 5 Scanning the Environment E-Lecture: “Scanning the Environment” (Wheelen &
01.03.2023 Hunger, 2012) Read the textbook chapters 4, 5 and
E-Lecture perform SM Quiz 3 (expected 6 hours of work).
Open the quiz: 01.03.23 16:00
Close the quiz: 08.03.23 16:00
Mike Wahl
Week 6 Suggestions for Case Analysis Before-class:
08.03.2023 Please study the slides “Suggestions for Case Analysis”
SOC-312
In class:
Seminar: Suggestions for Case Analysis
Lecturer Mike Wahl

Group exercise: Strategic audit of BMW AG3

After-class:
Start working on your individual homework “Strategic
audit report”. Follow the TalTech Style Manual and
take use of the provided template.
Week 7 Strategy Formulation In class:
15.03.2023 Lecture: Military strategies
SOC-312 Guest Lecturer Lauri Teppo

After-class:
E-Lecture: “Strategy Formulation” (Wheelen &
Hunger, 2012) Read the textbook chapters 6, 7, 8 and
perform SM Quiz 4 (expected 6 hours of work).
Open the quiz: 15.03.23 16:00
Close the quiz: 22.03.23 16:00
Mike Wahl
Week 8 Strategy Implementation and E-Lecture: “Strategy Implementation and Control”
22.03.2023 Control (Wheelen & Hunger, 2012) Read the textbook
E-Lecture chapters 9, 10, 11 and perform SM Quiz 5 (expected 6
hours of work).
Open the quiz: 22.03.23 16:00
Close the quiz: 29.03.23 16:00
Mike Wahl
Week 9 Time value of money: Valuation E-Lecture: “Time value of money: Valuation of
29.03.2023 of financial securities financial securities”. Review chapters 5 and 6 from
E-Lecture RWJ (2013). Make sure that you have completed the
practice test. Read chapter 7 (incl. 7.1-7.5) and
chapter 8 (8.1)
Take the test (home assignment 1) in Moodle
Open the quiz: 29.03.23 16:00
Close the quiz: 05.04.23 16:00
Note that two attempts are allowed for the test.
There is a 6-hour minimum time interval between the
attempts.

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https://www.bmwgroup.com/en/company/leadership-and-governance.html
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 Kalle Ahi
Week 10 Capital budgeting in practice We’ll meet in class again
05.04.2023 Before the lecture:
SOC-312 Read or review chapters 9 and 10 from RWJ). Solve
the following basic practice problems: listed in the
end of chapter 9 (problems 1, 3, 5, 12 – use Excel if
necessary), listed in the end of chapter 10 (problems
2, 4, 7, 14)

In class:
We’ll go through some practice exercises (example of
a replacement decision). Session of questions and
answers. Feedback on HA 1.

After the lecture:

Home assignment 2 (HA 2). Solve and upload to
Moodle, the solutions to several capital budgeting
exercises. The exercises are based on the practice
problems (16 hours of work).
Due date: 09.04.23 (on Sunday)
Cut-off date: 12.04.23 16:00
Kalle Ahi
Week 11 Lessons from capital market E-Lecture: “Lessons from capital market history; risk
12.04.2023 history; risk and return and return” (16 hours of work). Read chapters 12 and
E-Lecture 13 RWJ and write a short report (up to 1.5 pages) on
the background and predictions of capital asset
pricing model (CAPM).
Due date: 12.04.23 16:00
Cut-off date: 19.04.23 16:00
Kalle Ahi
Week 12 Company financing and cost of E-Lecture: “Company financing and cost of capital” (16
19.04.2023 capital hours of work)
E-Lecture Read chapters 14 (exclude 14.5 -14.7) from RWJ
(2022)
Solve the following basic practice problems: listed in
the end of chapter 14 (problems 1, 2, 7, 8 (note that
you have to find YTM or yield to maturity which is
discussed in chapter 7), 9)
Home assignment 4. Solve and upload to Moodle, the
solutions to several exercises that are based on cost
of capital or company financing. The exercises are
based on the practice problems.
Due date: 19.04.23 16:00
Cut-off date: 26.04.23 16:00
Kalle Ahi
Week 13 Company financial analysis and E-Lecture: “Company financial analysis and
26.04.2023 performance evaluation performance evaluation”. Read chapters 2 (for review
E-Lecture of financial statements) and 3 from RWJ.
Take your case company (preferably) and compute
the relevant financial ratios (including efficiency,
leverage, value and other ratios) that best describe
the performance of your company and write a short
report summarising your results. When submitting
your assignment, please upload the data and
calculations in a separate Excel file.
Due date: 26.04.23 16:00
Cut-off date: 03.05.23 16:00
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 Kalle Ahi
Week 14 Strategic Audit part I Before-class:
03.05.2023 Prepare presentation slides I for a short presentation
SOC-312 for this seminar (Audit steps 1-5a). Each work is
assigned only 5 minutes for presentation (expected 8
hours of work).

Slides:
1. Title slide
2. Current Situation
3. Corporate Governance
4. EFAS table
5. Industry Matrix table
6. IFAS table
7. SFAS table
NB! Please upload your presentation before your
seminar to Moodle.
Due date: 03.05.23 16:00
Cut-off date: 03.05.23 17:30

In class:
Students short (5') presentations

After-class:
Continue working on your individual homework
“Strategic Audit” report.
Mike Wahl
Week 15 Strategic Audit part II Before-class:
10.05.2023 Prepare presentation slides II for a short presentation
SOC-312 for this seminar (Audit steps 5b-8). Each work is
assigned only 5 minutes for presentation (expected 8
hours of work).

Slides:
1. Title slide
2. SFAS
3. TOWS
4. Implementation, Evaluation and Control Plan
NB! Please upload your presentation before your
seminar to Moodle.
Due date: 10.05.23 16:00
Cut-off date: 10.05.23 17:30

In class:
Students short (5') presentations
Conclusions and lessons learned

After-class:
Use the Strategy Wizard for self-reflection.
Mike Wahl
Week 16 Strategic Audit report E-Lecture: Strategic Audit report (expected 26 hours
17.05.2023 of work). Students must independently write a written
E-Lecture case analysis (Strategic Audit report) covering all the
issues in the chosen case in a complete manner.
Completed reports must be submitted though Moodle
on agreed deadline. Please upload additionally to your
report the MS Excel (.xls) file.
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 Due date: 17.05.23 16:00
Cut-off date: 17.05.23 17:30
Mike Wahl

Bye, bye ;-)