Corporate Financial Strategy: Planning, Budgeting, and Control

Introduction:

This Corporate Financial Strategy: Planning, Budgeting, and Control 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