Student Reflective Learning Blog

In the second week of lectures, we were given the topic of International Value Management. Value management is the managing of shareholder value. The key components of Value Management are Organisational capabilities, strategy and finance. traditional methods used to measure performance are Earnings per share and Return on capital employed (ROCE). Earning per share is calculated by dividing profit, net of tax, dividends to shareholders by the amount of ordinary shares outstanding. This shows the amount each shareholder gets if all the net income is distributed among them which usually doesn't happen and instead they are reinvested in the business. ROCE, on the other hand, means the profitability ratio of a company it is measured by comparing the profitability and the capital employed. Moreover, the lecturer briefly explained us about shareholder value creation/destruction, in highly volatile and complicated marketplace, it is important to create shareholder value which can lea...

In the first week of lectures, I was able to understand what is corporate financial management, it is the way of managing a company's finances effectively and efficiently in order to achieve the organisation's goals and objectives. For further understanding of this topic I referred the website Investopedia.com where an article reviewed by Will Kenton, 2019 states the corporate financing involves Financing Divisions, investment Decisions and Dividend Decisions.  Link:  https://www.investopedia.com/terms/c/corporatefinance.asp The primary concern of corporate finance is to increase the shareholder value by long and short term financial planning and also by implementing different strategies. Other common corporate concerns when it comes to corporate finance are, Revenue/Sales Maximization, Profit Maximization, Survival, Market Share Dominance and Social Responsibility. However attention must also be given to the boundaries, looking through the Anglo American lens comp...