Who should attend
An understanding of how finance influences strategic decision-making is crucial for every role and at every management level in the organization. In addition to interns, financial analysts, financial controllers, accountants and others active in the planning process this seminar has been designed for business professionals from:
sales and marketing
and any other non-financial areas that need or wish to understand the financial aspects of the strategic decision-making process.
About the course
A good understanding of strategic analysis and fundamental financial concepts enables all professionals at every level to make better strategic decisions and achieve improved performance.
This highly interactive seminar has been designed to establish the theoretical framework for analyzing and evaluating strategic alternatives and to review the tools and techniques available to professionals for making strategic financial decisions.
## Course Objectives
The objectives of the course are to enable delegates to:
- Develop strategic thinking, and use the strategic management process to develop missions and objectives and carry out strategic analysis and decision-making
- Forecast financial data using various Excel® models
- Understand the structure of the income statement, balance sheet, and cash flow statement, and analysis of the cash operating cycle, for improved financial performance, and better management of working capital and cash flow
- Identify the alternative the alternative sources of finance and financial (or capital) structure, and evaluate the models of optimum capital structure and minimization of weighted average cost of capital (WACC)
- Use the technique of discounted cash flow (DCF) for capital budgeting and evaluation of capital project investment, using net present value (NPV), internal rate of return (IRR), equivalent annual cost (EAC), and the profitability index (PI)
- Use the techniques of uncertainty analysis and risk analysis and develop appropriate risk management tools of insurance and hedging of interest rates and foreign currency exchange rates.
## Course Outline
Fundamentals of Strategic Planning
- What is strategy?
- Strategic management
- Strategic analysis
- The strategic planning process
- Environmental analysis
- Resources analysis
- Strategic choice and strategic decision-making
- Strategic implementation
- Corporate objectives and accountability
- Forecasting financial data
Fundamentals of Financial Statements
Alternative asset valuation methods
Statement of cash flows
Common size (or horizontal) trend analysis of financial statements
Vertical trend analysis of financial statements
Segmental analysis of financial statements
Value added analysis of financial statements
Understanding the cash flow cycle and the operating cycle
Break-even and multiple product break-even analysis
Capital Structure and Leverage
Sources of funds
Capital cost models
Cost of equity
Cost of debt
Weighted average cost of capital (WACC)
Can we determine a company’s optimal capital structure?
Capital structure models
Preparing projections to determine financing needs
Future values, present values and DCF
Capital budgeting principles
Methods of evaluating capital investment projects
Accounting rate of return (ARR) and payback
Net present value (NPV) versus internal rate of return (IRR)
How do you choose which method to use?
Capital budgeting methods
Capital asset pricing model (CAPM) versus arbitrage pricing theory (APT)
Does it make a difference whether we lease or buy?
Managing Financial Risks
The value of perfect information (VOPI)
Types of risk
Risk management principles
Talking to your bankers about managing risk
How to develop the tools for your company?
How to minimize risk?
Insurance and hedging
Interest rate and foreign currency exchange rate risk
Videos and materials
Because of COVID-19, many providers are cancelling or postponing in-person programs or providing online participation options.
We are happy to help you find a suitable online alternative.