Mastering Finance for Strategic Decision-Making

Introduction:

In the Mastering Finance for Strategic Decision-Makingcourse, participants will gain a comprehensive understanding of how finance intersects with strategic analysis and decision-making. The course aims to enhance managerial skills across all levels to facilitate more informed strategic choices, thereby improving overall performance.

By bridging theoretical concepts with practical applications, the course will teach participants how to analyze and evaluate various strategic options and make sound financial decisions.

Objectives:

Upon completing the Mastering Finance for Strategic Decision-Making course, participants will be able to:

• Enhance strategic perception and decision-making capabilities.
• Employ the strategic management process to define missions, set objectives, and conduct strategic analysis.
• Make financial projections using various Excel models.
• Interpret income statements, balance sheets, and cash flow statements to improve business operations and working capital management.
• Analyze alternative finance approaches and capital structure models, and suggest strategies for optimizing WACC.
• Apply discounted cash flow (DCF) methods in project evaluation and capital budgeting, including NPV, IRR, EAC, and PI techniques.
• Identify and recommend risk and uncertainty management strategies, including insurance and hedging.
• Appreciate the impact of financial metrics on corporate strategy formulation.
• Enhance confidence in financial issues and communication with finance professionals.
• Collaborate effectively with specialists in economics and finance.

Training Methodology:

• Case studies
• Group discussions
• Gaming
• Role plays
• Workshops
• Working with resource tools

Course Outline:

Unit 1: Strategic Planning

• What strategy means
• Strategic management
• Strategic analysis: Mission, Objectives, Strategic decision
• The strategic planning process
• External and resource analysis
• Strategic choice and decision-making
• Strategy execution
• Corporate targets and responsibilities
• Predicting monetary values

Unit 2: Reading and Interpreting Financial Statements

• Financial statements overview
• Statement of financial position
• Statement of comprehensive income
• Equity valuation methods
• Cash flow statements
• Horizontal and vertical analysis
• Ratio analysis
• Valuing created value
• Analyzing cash flow vs. operating cycle

Unit 3: Capital Structure and Leverage

• Sources of funding
• Capital cost models
• Cost of equity and debt
• Calculating WACC
• Determining optimal capital structure
• Capital structure models
• Financial requirements forecasting

Unit 4: Capital Budgeting

• Future worth, present worth, and discounted cash flow
• Capital budgeting rules and methodologies
• Payback periods and accounting rate of return
• NPV and IRR
• Basis for selecting investment projects
• Equivocal Annual Cost method
• Capital budgeting methods
• CAPM vs. Arbitrage Pricing Theory
• Buying vs. leasing decisions

Unit 5: Managing Financial Risks

• Value of perfect information
• Overview of risk management
• Risk management strategies
• Risk assessment and management tools
• Reducing risks
• Insurance and hedging strategies
• Interest rate and foreign exchange risk