GRA 8507 Decision Making & Value Optimization (2020/2021)

GRA 8507 Decision Making & Value Optimization (2020/2021)

Course code: 
GRA 8507
Accounting, Auditing and Business Analytics
Course coordinator: 
Pål Berthling-Hansen
Product category: 
EMME - EMM specialisation in Energy
2020 Spring
Active status: 
Teaching language: 
Course type: 
One semester

This course is part of the Executive Master of Management in Energy in cooperation with BI Norwegian Business School and IFP School.

Todays competitive environment and disruptive nature in the energy industry places great demands on a company’s ability to understand the commercialization process. The relationship between organizational conduct, optimal decision-making and value generation is critical for many companies.

Learning outcomes - Knowledge

After the session students should have gained the ability to conduct advanced profitability and investment analysis’. Students will learn the theoretical models largely in use today, and their limitations. The students will also learn how to adapt the theoretical models to capture the real-life complexity that is often the case. The students will gain a thorough understanding of the importance of analyzing the context of the decision problem before applying the appropriate models.

Acquired knowledge
· Gain a thorough understanding of a model for analysing value generation.

Learning outcomes - Skills
  • Be able to conduct advanced net present value calculations in connection with real decision problems.
General Competence
  • An acceptance that economic/financial output often is the result of decisions and processes. An understanding that this therefore means that decision analysis is key to obtain financial results.
  • Gain a critical view on financial/economic analysis and understand their limitations, and at the same time understand the advantages of developing a data/information driven organization, where the focus is oin knowing and not believing
Course content
  • The decision context and decision biases
  • Value generation model
  • The connection between strategy, competitive advantage, quality and financial goals.
  • Profit versus net present value
  • Cash flow analysis
  • How to handle tax in specific decisions
  • The value of real options
  • Risk analysis for diversified and non-diversified investors/owners.
Teaching and learning activities

1 ECTS credit corresponds to a workload of 26-30 hours. 

Attendance to all sessions in the course is compulsory. If you have to miss part(s) of the course you must ask in advance for leave of absence. More than 25% absence in a course will require retaking the entire course. It's the student's own responsibility to obtain any information provided in class that is not included on the course homepage/ It's learning or other course materials. 

Sessions include lectures, seminars and group work.

Specific information regarding student evaluation beyond the information given in the course description will be provided in class.

The course is a part of a full Executive Master of Management in Energy (EMME) and examination in all courses must be passed in order to obtain a certificate.

Software tools
No specified computer-based tools are required.

Granted admission to the Executive Master of Management in Energy programme.

Exam categoryWeightInvigilationDurationGroupingComment exam
Exam category:
Form of assessment:
Written submission
Exam code:
GRA 85071
Grading scale:
Grading rules:
Internal examiner with external supervisor
Examination when next scheduled course
100No30 Day(s)Individual The students are evaluated through an individual 30 days course paper, counting 100% of the final grade.
Exam category:Submission
Form of assessment:Written submission
Grouping (size):Individual
Duration:30 Day(s)
Comment:The students are evaluated through an individual 30 days course paper, counting 100% of the final grade.
Exam code:GRA 85071
Grading scale:ECTS
Resit:Examination when next scheduled course
Type of Assessment: 
Ordinary examination
Total weight: 
Student workload
Teaching on Campus
40 Hour(s)
Student's own work with learning resources
95 Hour(s)
Sum workload: 

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 5 ECTS credit corresponds to a workload of at least 135 hours.