INTRODUCTION

It is essential to fully understand how finance influences strategic decision-making because it provides the foundation for an organisation’s economic survival, development, growth and future prosperity.

Are you familiar with the core principles of finance and their links with strategic decisions, and financial planning?

Are you able to use the financial tools, techniques and know-how that influence strategic decision-making and apply them practically in real-life business situations?

This course helps use of the essential financial tools and techniques and will enable non-financial and financial professionals at every level to make better-informed decisions to improve financial performance, and increase corporate value and shareholder value.

Course objectives:

Think strategically and use the strategic management process and its links to 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.

Use the techniques of uncertainty and risk analysis and develop appropriate risk management tools, and insurance and hedging of interest rates and foreign currency exchange rates

The benefit of this course:

Considering how risk may be most effectively managed using the appropriate risk management tools, and insurance and hedging of interest rates and foreign currency exchange rates

Improving your self-confidence to be better placed to deal with financial and other professionals on financial and strategic issues

Mitigating and minimising financial risk through risk analysis and the effective use of the appropriate techniques of risk management

Communicating more effectively with financial professionals and sharing throughout the organisation the knowledge gained from the semina

 

Course 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 Financing

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 Financing Requirements

DAY 3

Costing Systems and Measurement Systems that Support Financial Decision-Making

Costs and Activities

Cost Behaviour

Fixed Costs and Variable Costs

Cost-Volume-Profit (CVP) Relationships, Break-even and Sensitivity Analysis

Direct and Indirect Costs

Activity Based Costing (ABC) and Management (ABM)

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.