TRAINING COURSES

Understanding Finance to Influence Strategic Decisions

Start Date: 17 Mar 2019
End Date: 21 Mar 2019
Duration: 5
Fees:
Country: Istanboul / Turkey
Category: Finance, Accounting & Investment
Details:

Introduction

A good understanding of strategic analysis and decision-making and the links between these and finance enables all managers at every level to make better strategic decisions and achieve improved performance.

This highly interactive seminar has been designed to build on the theoretical framework by developing the practical tools and techniques for analysing and evaluating strategic alternatives and making strategic financial decisions.

 

Objectives

The objectives of this seminar 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 sources of finance and financial (or capital) structure , and evaluate the models of optimum capital structure and minimisation 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.

 

Training Methodology

This seminar is presented in a very user-friendly way to suit individuals with varying levels of financial knowledge and experience. The seminar will be conducted along workshop principles with formal presentations, case studies and interactive worked examples. Numerous relevant examples and participative case studies are provided to illustrate the application of each of the topics covered. Each learning point is reinforced with practical examples and participative exercises.

Difficult mathematical concepts are minimised wherever possible and handled in a visual way that is easy to understand with numerous illustrative examples.

Our aim is for this to be an enjoyable learning experience.

 

Organisational Impact

The organisation will gain through:

         Recognition of the importance of finance as a critical component of the strategic decision-making process, and the development of managers to be able to think strategically to:

o    understand and anticipate the financial factors that form the basis of strategic decision-making

o    evaluate the financial consequences of alternative strategic decisions

o    all of which should ultimately result in better strategic planning, and improved company performance

         Increased awareness of the importance of effective forecasting

         Use of the financial statements and tools and techniques of financial analysis that will help managers make more informed and therefore better management decisions

         Use of techniques that will support the company in its more effective planning and evaluation of capital investment projects, and cash flow improvement

         The mitigation and minimisation of financial risk through risk analysis and the effective use of the appropriate techniques of risk management

         The sharing of knowledge gained throughout other divisions and departments of the company.

 

Personal Impact

Delegates will develop an understanding of:

         The influence of financial considerations on an organisationís strategic decision-making

         The use of Excel© tools to develop long-term financial models and forecasts

         How to analyse and interpret the financial statements: balance sheet; income statement; cash flow statement, in order to make more informed and therefore better financial decisions

         How to develop and manage the financial aspects of their role more effectively, enhance their performance, broaden their role, and appreciate how their decision-making may impact on their own department or business unit and the organisation as a whole

         How to improve their self-confidence in dealing with finance and financial professionals

         How to be better placed to liaise effectively with other professionals on financial issues.

 

Who Should Attend?

An understanding of how finance influences strategic decision-making is crucial for every role and at every management level in the organisation. 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

         Engineering

         Project Management

         Purchasing

         Logistics

         Human Resources

         and any other non-financial areas that need or wish to understand the financial aspects of the strategic decision-making process.

 

 SEMINAR OUTLINE 

 

DAY 1

Fundamentals of Strategic Planning

         What is strategy?

         Strategic management

         Strategic analysis

o    Mission

o    Objectives

o    Strategic decision-making

         The strategic planning process

         Environmental analysis

         Resources analysis

         Strategic choice and strategic decision-making

         Strategic implementation

         Corporate objectives and accountability

         Forecasting financial data

 

DAY 2

Fundamentals of Financial Statements

         Financial statements

         Balance sheet

         Income statement

         Alternative asset valuation methods

         Cash flow statement

         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

 

DAY 3

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 companyís optimal capital structure?

         Capital structure models

         Preparing projections to determine financing needs

 

DAY 4

Capital Budgeting

         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?

         Equivalent annual cost (EAC) method

         Capital budgeting methods

         Capital asset pricing model (CAPM) versus arbitrage pricing theory (APT)

         Does it make a difference whether we lease or buy?

 

DAY 5

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 minimise risk?

         Insurance and hedging

         Interest rate and foreign currency exchange rate risk

 
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