Corporate Financial Strategy: Planning, Budgeting, and Control

Introduction:

This Corporate Financial Planning and Budgeting course enhances learners' capabilities to pursue profitability while preserving liquidity and minimizing financial risks in a complex global market. Participants will learn to formulate effective financial strategies, implement budgets, control financial sectors, and evaluate performance results.

Objectives:

By the end of this course, participants will be able to:

• Formulate economically rewarding and low-risk corporate financial plans.
• Compare and contrast capital structure options and make efficient investments.
• Prepare, control, and review budgets to support organizational development.
• Identify and manage various categories of risk.
• Improve evaluation processes of organizational performance.
• Enhance self-growth and financial awareness.
• Understand fundamental concepts in international corporate finance and budgets.
• Advance in analysis, assessment, and strategic judgment.
• Participate in financial forecasting and capital expense practices.
• Collaborate with other divisions on finance and budgeting.
• Explore ways to improve financial performance and future career paths in financial management.

Training Methodology:

• Interactive lectures
• Case studies
• Panel discussions
• Group work and financial model development
• Simulations
• Role-play exercises
• Problem discussions

Course Outline:

Unit 1: Corporate Financial Planning

• Strategic management
• Wealth maximization and stakeholder satisfaction
• Governance structures and the agency problem
• Social consequences of accounting ethics (e.g., Enron case study)
• Strategic plan creation
• Role and duties of a financial manager
• Cash plan creation for the master budget
• Cash flow projections
• Trend analysis
• Expansion decisions using regression analysis
• Financial model creation

Unit 2: Financing the Plan

• Sources of finance
• Equity finance
• Debt finance
• Hybrid finance
• Dividend and retained-initiation policy
• Pricing of debt
• Weighted average cost of equity (WaCE)
• Capital Asset Pricing Model (CAPM)
• Investment procedure
• Capital budgeting practices and methodologies (e.g., accounting return of investment, net present value, internal rate of return)
• Investment worthiness analysis

Unit 3: Creating and Controlling Budgets

• Budget allocation systems
• Types of budgetary systems
• Expansion and marginal budgeting
• Policy-based and event management-based budgets
• Budget elimination or modification
• Budget adherence and compliance management
• Responsibility accounting and cost analysis
• Break-even point and sensitivity analysis
• Evaluation templates (e.g., DuPont analysis)

Unit 4: Managing Fluid Assets or Cash

• Revenue and earnings
• Average working capital and conversion cycles
• Cash flow forecasting
• Flow ratios
• Net working capital
• Price for capital assets
• Working capital management techniques
• Working capital turnover ratio
• Estimation of monthly cash disbursements

Unit 5: Controlling Financial Risk

• Risk management
• Types and categorization of risks (e.g., SWOT analysis)
• Risk management framework and mitigation
• Financial risk control (currency values, interest rates)
• Financial instruments and commodities
• Currency bundle transactions
• Derivative contracts (options and futures)
• Risk management glossary

Tools and Techniques of Corporate Financial Planning

Participants will learn modern tools and techniques for effective financial forecasting, planning, and budgeting, relevant to those seeking certification in corporate financial planning and analysis.

Business Budgeting and Financial Control

This section focuses on developing and controlling budgets as a fundamental aspect of financial management. Participants will gain skills in managing the overall budget cycle, crucial for financial controllers and those pursuing financial control certification.