Direzione Didattica e Servizi agli Studenti Area Didattica e Servizi agli Studenti Polo di Management ed Economia Allegato 2: Syllabus English version Accounting Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. 2016 .Intermediate Accounting, 16th Edition, by Wiley & Sons. Only the following chapters: 3:The Accounting Information System 4: Income Statement and Related Information 5: Balance Sheet and Statement of Cash Flows 7: Cash and Receivables 8: Valuation of Inventories: A Cost-Basis Approach 11: Depreciation, Impairments, and Depletion 15: Stockholders' Equity 23: Statement of Cash Flows Corso Unione Sovietica, 218bis – 10134 Torino Direzione Didattica e Servizi agli Studenti Alternative textbook: Scagnelli S., Gromis di Trana M., Venuti F., Introduction to Financial Accounting - Concepts, cases and Exercises, Giappichelli editore 2018. Only the following chapters: Chapter 1. The accounting system Chapter 2. Accounting for ordinary business transactions Chapter 3. Adjusting and closing entries Chapter 4. Preparing Financial Statements Financial statement Suggested textbook: Accounts Demystified, Anthony Rice, Prentice Hall Only the following chapters: Corso Unione Sovietica, 218bis – 10134 Torino Direzione Didattica e Servizi agli Studenti Chapter 1. The balance sheet and the fundamental principle Chapter 2. Creating a balance sheet Chapter 3. The profit&loss account and cash flow statement Chapter 4. Creating the profit&loss account and cash flow statement Chapter 8. Financial Analysis - introduction Chapter 9. Analysis of the enterprise Chapter 10. Analysis of the funding structure Banking and Financial Institutions Suggested textbook: Miskin F., The economics of money, banking and financial markets, 11th Edition, Pearson, 2016. Only the following chapters: Chapter 2. An Overview of the Financial System Chapter 4. The meaning of Interest Rates Chapter 7. The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis Chapter 8. An Economic Analysis of Financial Structure Chapter 9. Banking and the Management of Financial Institutions Corso Unione Sovietica, 218bis – 10134 Torino Direzione Didattica e Servizi agli Studenti Corporate finance Suggested textbook: R.A. Brealey, S.C. Myers, F. Allen , Principles of corporate finance, McGraw Hill, 2014, (11/e Global Ed.) Only the following chapters: Chapter 1: Introduction to Corporate Finance Chapter 2: How to calculate Present Values Chapter 5: Net Present Value and other investment criteria Chapter 6: Making investment decisions with the Net Present Value rule Chapter 7: Introduction to Risk and Return Chapter 8: Portfolio Theory and the Capital Asset Pricing Model Chapter 9: Risk and the Cost of Capital Chapter 10: Project Analysis Chapter 16: Payout Policy Chapter 17: Does debt policy matter? Chapter 18: How much should a Corporation Borrow? Corso Unione Sovietica, 218bis – 10134 Torino BUSINESS MANAGEMENT MARKETING STRATEGIC MANAGEMENT COMPENDIUM Chapter 2 Porter five forces analysis have been able to make a return in excess of the industry Bargaining Power of Suppliers average. Porter’s five forces include - three forces from 'horizon- tal' competition: the threat of substitute products or ser- vices, the threat of established rivals, and the threat of new Threat Industry Threat of New Entrants Rivalry of Substitutes entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers. Porter developed his Five Forces analysis in reaction to Bargaining Power of Buyers the then-popular SWOT analysis, which he found unrig- orous and ad hoc.[1] Porter’s five forces is based on the Structure-Conduct-Performance paradigm in industrial or- A graphical representation of Porter’s five forces ganizational economics. It has been applied to a diverse range of problems, from helping businesses become more Porter five forces analysis is a framework that attempts profitable to helping governments stabilize industries.[2] to analyze the level of competition within an industry and Other Porter strategic frameworks include the value chain business strategy development. It draws upon industrial or- and the generic strategies. ganization (IO) economics to derive five forces that deter- mine the competitive intensity and therefore attractiveness of an Industry. Attractiveness in this context refers to the overall industry profitability. An “unattractive” industry is 2.1 Five forces one in which the combination of these five forces acts to drive down overall profitability. A very unattractive in- 2.1.1 Threat of new entrants dustry would be one approaching “pure competition”, in which available profits for all firms are driven to normal Profitable markets that yield high returns will attract new profit. This analysis is associated with its principal innova- firms. This results in many new entrants, which eventually tor Michael E. Porter of Harvard University. will decrease profitability for all firms in the industry. Un- Porter referred to these forces as the micro environment, to less the entry of new firms can be blocked by incumbents contrast it with the more general term macro environment. (which in business refers to the largest company in a cer- They consist of those forces close to a company that affect tain industry, for instance, in telecommunications, the tradi- its ability to serve its customers and make a profit. A change tional phone company, typically called the “incumbent op- in any of the forces normally requires a business unit to re- erator”), the abnormal profit rate will trend towards zero assess the marketplace given the overall change in industry (perfect competition). information. The overall industry attractiveness does not The following factors can have an effect on how much of a imply that every firm in the industry will return the same threat new entrants may pose: profitability. Firms are able to apply their core competen- cies, business model or network to achieve a profit above the industry average. A clear example of this is the air- • The existence of barriers to entry (patents, rights, line industry. As an industry, profitability is low and yet etc.). The most attractive segment is one in which en- individual companies, by applying unique business models, try barriers are high and exit barriers are low. Few new 5 6 CHAPTER 2. PORTER FIVE FORCES ANALYSIS firms can enter and non-performing firms can exit eas- 2.1.3 Bargaining power of customers (buy- ily. ers) • Government policy The bargaining power of customers is also described as the • Capital requirements market of outputs: the ability of customers to put the firm under pressure, which also affects the customer’s sensitivity • Absolute cost to price changes. Firms can take measures to reduce buyer • Cost disadvantages independent of size power, such as implementing a loyalty program. The buyer power is high if the buyer has many alternatives. The buyer • Economies of scale power is low if they act independently e.g. If a large number • Economies of product differences of customers will act with each other and ask to make prices low the company will have no other choice because of large • Product differentiation number of customers pressure. • Brand equity Potential factors: • Switching costs or sunk costs • Buyer concentration to firm concentration ratio • Expected retaliation • • Access to distribution Degree of dependency upon existing channels of dis- tribution • Customer loyalty to established brands • Bargaining leverage, particularly in industries with • Industry profitability (the more profitable the industry high fixed costs the more attractive it will be to new competitors) • Buyer switching costs relative to firm switching costs 2.1.2 Threat of substitute products or ser- • Buyer information availability vices • Force down prices The existence of products outside of the realm of the com- • Availability of existing substitute products mon product boundaries increases the propensity of cus- • Buyer price sensitivity tomers to switch to alternatives. For example, tap water might be considered a substitute for Coke, whereas Pepsi • Differential advantage (uniqueness) of industry prod- is a competitor’s similar product. Increased marketing for ucts drinking tap water might “shrink the pie” for both Coke and Pepsi, whereas increased Pepsi advertising would likely • RFM (customer value) Analysis “grow the pie” (increase consumption of all soft drinks), al- • The total amount of trading beit while giving Pepsi a larger slice at Coke’s expense. An- other example is the substitute of traditional phone with a smart phone. 2.1.4 Bargaining power of suppliers Potential factors: The bargaining power of suppliers is also described as the • Buyer propensity to substitute market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be • Relative price performance of substitute a source of power over the firm when there are few sub- • Buyer switching costs stitutes. If you are making biscuits and there is only one person who sells flour, you have no alternative but to buy it • Perceived level of product differentiation from them. Suppliers may refuse to work with the firm or • Number of substitute products available in the market charge excessively high prices for unique resources. • Ease of substitution Potential factors are: • Substandard product • Supplier switching costs relative to firm switching • Quality depreciation costs • Availability of close substitute • Degree of differentiation of inputs 2.3.