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 practical tools and techniques for analyzing 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 minimization of the 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.

Target Audience

• Senior Managers and Department Heads
• Strategy and Business Development Professionals
• Finance Managers and Financial Analysts
• Corporate Finance and Investment Professionals
• Project and Operations Managers
• Business Planning and Control Professionals
• Risk Management Professionals
• Treasury and Banking Relationship Managers
• Executives involved in strategic decision-making
• Professionals responsible for financial planning, forecasting, and capital decisions
• Individuals seeking advanced understanding of strategy, finance, and risk management

Outline

DAY 1 – Fundamentals of Strategic Planning & Business Direction

• What is strategy and strategic management
• Strategic analysis and decision-making
• Mission, objectives, and corporate goals
• Strategic planning process
• Environmental and resource analysis
• Strategic choice and implementation
• Corporate accountability and governance
• Forecasting financial data

DAY 2 – Financial Statements & Business Performance Analysis

• Fundamentals of financial statements
• Balance sheet and income statement
• Cash flow statement and operating cycle
• Alternative asset valuation methods
• Common size and trend analysis (horizontal & vertical)
• Segment and value-added analysis
• Cash flow cycle and operating cycle understanding
• Break-even and multi-product break-even analysis

DAY 3 – Capital Structure & Financing Decisions

• Sources of finance and capital structure basics
• Cost of equity and cost of debt
• Weighted Average Cost of Capital (WACC)
• Capital structure models and optimization
• Determining optimal capital structure
• Financial projections and funding needs
• Capital cost models and financial leverage concepts

DAY 4 – Capital Budgeting & Investment Appraisal

• Time value of money (PV, FV, DCF)
• Principles of capital budgeting
• NPV, IRR, ARR, and Payback methods
• Comparison of investment appraisal techniques
• Equivalent Annual Cost (EAC) method
• CAPM vs APT in investment decisions
• Lease vs buy decisions
• Capital budgeting methods in practice

DAY 5 – Financial Risk Management & Decision Tools

• Types of financial and business risk
• Risk management principles
• Value of Perfect Information (VOPI)
• Risk minimization strategies
• Insurance and hedging techniques
• Interest rate and foreign exchange risk
• Developing risk management tools for organizations
• Relationship with banks and financial institutions
• Strategic risk analysis and decision-making tools