Understanding Finance to Influence Strategic Decisions

Understanding Finance to Influence Strategic Decisions

 

Date & Location: (21-25/Mar) Istanbul – ( 20-24/May) Kuala Lumpur – ( 16-20/Dec) Geneva

Register Now

Course Overview

Introduction:

This interactive and user-friendly seminar answers the questions you have always wanted to ask about finance and strategic management:

  • What are the core principles of finance and their links with strategic decisions, planning and budgeting?
  • What are the financial tools, techniques and know-how that influence strategic decision-making?
  • How are these tools and techniques practically applied in real-life business situations?

To answer these questions and many more, the Instructors own commercial career experiences and many other real-world business scenarios are shared throughout this exciting seminar to illustrate and reinforce the use of the essential financial tools and techniques. Their use will enable non-financial and financial professionals at every level to make better-informed decisions to improve organisational performance and increase corporate value, with the aim of achieving the primary commercial objective of maximisation of shareholder wealth.

This seminar will highlight:

  • Linking business and financial strategic decision-making processes with financial planning and budgeting
  • Clarification of the financial statements and their links with financial planning, budgeting and decision-making
  • Alternative costing systems, budgeting and measurement systems that support financial decision-making
  • Capital investment decision-making using discounted cash flow (DCF), and long-term debt and equity financing decisions, capital structure and the weighted average cost of capital (WACC)
  • Linking key performance indicators (KPIs) to strategic decisions using a balanced scorecard, and the management of financial risk, interest rate and foreign currency exchange rate exposures

 

Program Objectives:

  • Think strategically and use the strategic management process and its links to key performance indicator (KPI) systems as a basis for improved decision-making to maximise shareholder wealth
  • Analyse and interpret the income statement, balance sheet, and statement of cash flows, and use appropriate costing and measurement systems for more effective planning and budgeting, management of working capital and cash flow, and improved financial performance
  • Identify the alternative sources of long-term finance, and evaluate the models of optimum capital structure and minimisation of the weighted average cost of capital (WACC)
  • Apply the technique of discounted cash flow (DCF) for evaluation of capital project investments, and capital budgeting
  • Use the techniques of uncertainty analysis and risk analysis and develop appropriate risk management tools, and insurance and hedging of interest rates and foreign currency exchange rates

 

Who Should Attend?

  • General Management
  • Sales and Marketing
  • Estimating and Costing
  • Operations
  • Engineering
  • Project Management
  • Procurement
  • Logistics
  • Asset Management
  • Human Resources

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

 

Program Outline:

DAY 1

Linking Strategic Management and Decision-making with Financial Planning and Budgeting

  • Strategy and strategic management
  • Vision, mission, and objectives
  • Key features of strategic decision-making
  • Rolling out and implementing strategies
  • Value creation and maximisation of shareholder wealth
  • Corporate objectives, accountability, and corporate governance
  • Management accounting and the links between strategic planning and budgeting

DAY 2

The Financial Statements and Their Links with Planning and Financial Decisions

  • The three key financial statements
  • Balance sheet
  • Income statement
  • Statement of cash flows
  • Sources of internal and external funding
  • Cost of equity, cost of debt, and the weighted average cost of capital (WACC)
  • Capital structure models to minimise WACC
  • Preparing a long-term financial plan to determine funding requirements

DAY 3

Costing Systems, Budgets and Measurement Systems that Support Financial Decision-making

  • Costs and activities
  • Cost behaviour
  • Fixed costs and variable costs
  • Cost/volume/profit (CVP) relationships, contribution and break-even analysis
  • Direct and indirect costs
  • Activity-based costing (ABC)
  • Refining the costing system for improved decision-making

DAY 4

Capital Investment Decisions

  • Future values, present values and discounted cash flow (DCF)
  • Capital budgeting principles
  • Evaluating capital investment projects using accounting rate of return (ARR) and payback
  • DCF evaluation methods of net present value (NPV), internal rate of return (IRR), modified internal rate of return (MIRR), equivalent annual cost (EAC)
  • Deciding on which investment appraisal methods to use
  • Capital budgeting, capital rationing and the profitability index (PI)
  • Further factors to consider in investment appraisal

DAY 5

Linking Performance Measures to Strategic Decisions and Financial Risk Management

  • Linking strategic objectives to key performance indicators (KPIs) in a balanced scorecard
  • Obstacles to achieving strategic objectives created by the accounting and costing system
  • Uncertainty and risk analysis
  • Types of business risk and financial risk
  • Risk management principles
  • Development of risk management tools to mitigate and minimise risk
  • Insurance and hedging
  • Interest rate risk and foreign currency exchange rate risk