Units

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Sample subject outline - 5 Week Teaching Period - 5 2012

Note: Subject outlines often change before the semester begins. Below is a sample outline.

Rationale

Anyone committing resources to a complex project must consider four major issues that are core subjects of the field of finance. These are the Investment Decision, the Financing Decision, Market Risk, and the Agency Problem. Academic finance has developed a standard set of theories and models addressing each of these issues, and that have come to frame the modern practice of finance. An understanding of the theories and models is vital not just to determine the extent to which they might or might not aid in your analysis and execution of particular complex projects, but also to appreciate the language, assumptions and objectives of other financial stakeholders that are influenced by them.

Aims

The aim of this unit is to describe and critically assess, in the context of complex projects, the theories and models that finance has developed to address the four core issues of investment, financing, market risk, and agency.

Objectives

Course Learning Goals (Corporate Programs)

The QUT Business School has established the Assurance of Learning (AOL) Goals to meet contemporary industry needs and standards. Achieving these learning outcomes will assist you to meet the desired graduate outcomes set at QUT - aligned with other internationally renowned business schools. Students will develop the following capabilities relevant to a contemporary global and sustainable business environment:

Program Goal 1: Understand Self and Lead Others in an International Environment (ULO)

1.1 Develop the personal attributes of action and outcome orientation, ability to influence and self-knowledge that distinguish the manager of complex projects.
1.2 Develop and demonstrate the leadership and communication skills to manage the staff involved in complex projects
1.3 Work effectively in managing people and a wide range of stakeholders through understanding of culture cognition, personality and human lifecycle.

Program Goal 2: Lead Strategic Planning, Design and Implementation (SPDI)

2.1 Understand the context of complex projects and the design and implementation of appropriate project strategy and systems to match emergent requirements
2.2 Demonstrate the capacity to design, establish and manage the organisational architecture for complex projects
2.3 Develop the understanding and skill to deliver probity and governance requirements for complex projects
2.4 Develop the capacity to design and implement innovative business planning, reporting and performance measurement systems.

Program Goal 3: Think Holistically: Innovate and Creatively Problem Solve (TH)

3.1 Develop the insights to manage people and systems subject to on-going change and constantly adapt to emergent conditions
3.2 Demonstrate the capacity to envision novel, critical and creative responses to complex and emerging problems

Program Goal 4: Develop the understanding of and skill to design, manage and lead strategic procurement practices that respond to the challenges of the complex organisational and project management environment. (SP)

4.1 Develop, plan and implement a comprehensive and effective acquisition strategy to deliver complex strategic capabilities.
4.2 Assess and implement the contractual requirements of a complex acquisition taking into account the implications of international law and conventions, intellectual property rights, and ensuring the appropriate allocation and mitigation of contractual risks.
4.3 Develop, plan and implement strategic sourcing arrangements covering the capability life-cycle.

Unit Objectives
Upon completion of this unit, you should be able to:

1. Identify how each of the four core issues of finance - investment, financing, market risk, and agency - manifests in a particular set of problems for the implementation and management of a complex project, and how these relate to the fundamental questions for all complex projects, namely Fitness For Purpose and Value For Money.
2. Apply a critical understanding of finance theories and models to synthesise relevant information and develop strategies for mitigating those particular problems, including the assessment, pricing, allocation and management of the risks associated with each.
3. Successfully communicate both the problems and the strategies to stakeholders in the project.

The specific course learning goals and unit objectives that apply to this unit are shown in the assessment section of this unit outline.

Content

Module 1: Standard Theories & Models of the Investment Decision
Module 2: Critically Analysing the Standard Models
Module 3: The Financing Decision
Module 4: Market Risk
Moduel 5: Market Risk Management
Module 6: The Agency Problem

Approaches to Teaching and Learning

• There is a commitment to critical inquiry and intellectual debate in regard to the material covered, and students are encouraged to relate the theories and research discussed to situations known to them.



• Students are expected to source relevant written material before each meeting



• Students are expected to bring a real-life team problem from their workplace to form the basis of their individual assessment assignment



• A variety of resources are available online. Not least of these resources are members of the GSZ533 class, and the lecturers, all of whom are available via e-mail.

Assessment name: Discussion Paper
Description: Valid model or invalid heuristic? - You will be given a real example of criteria used for assessing project value for money that applies standard finance theoretical concepts. Discuss whether, in your opinion, these criteria are appropriate or inappropriate given the assumptions of the theories and the real circumstances of the project. Further discuss how you would approach a project where such criteria were proposed by the procuring authority.

Length: 1,500 words
Relates to objectives: Unit objectives; 1, 2 and AOL goals: ULO (1.1), SPDI (2.1) (2.2), (2.3), TH (3.2)
Weight: 40%
Internal or external: Internal
Group or individual: Individual
Due date: End of Module 3

Assessment name: Case Analysis
Description: Project risk analysis and management - Having selected a real complex project of your choice, identify its significant market and agency risks, develop and communicate strategies for managing each one, and identify the way that these strategies contemplate and manage their impact on other project stakeholders.

Length: 2,500 words
Relates to objectives: Unit objectives: 1, 2, 3 and AOL goals: ULO (1.1), (1.2) (1.3) SPDI (2.1) (2.2), (2.3), TH (3.1), (3.2)
Weight: 60%
Internal or external: Internal
Group or individual: Individual
Due date: End of Module 6

Academic Honesty

Academic honesty means that you are expected to exhibit honesty and act responsibly when undertaking assessment. Any action or practice on your part which would defeat the purposes of assessment is regarded as academic dishonesty. The penalties for academic dishonesty are provided in the Student Rules. For more information you should consult the QUT Library resources for avoiding plagiarism.

Resource materials

Prescribed Text
Viney, C. (2011) Financial Market Essentials North Ryde NSW: MacGraw-Hill Aust Pty Ltd.

Required References
As set out in the unit learning guide.


Other Resources
GSZ533 Learning Guide and Blackboard site

Risk assessment statement

There are no out-of-the-ordinary risks associated with lectures or tutorials in this unit. You should, however, familiarise yourself with evacuation procedures operating in the buildings in which you attend classes and take the time to
view the Emergency video.

Disclaimer - Offer of some units is subject to viability, and information in these Unit Outlines is subject to change prior to commencement of semester.

Last modified: 23-May-2011