Financial Analysis, Planning, and Control Strategies (10 Days)

Introduction:

In the process of conducting analysis, planning, and control, it is essential to survey various facets of an organization and identify how financial planning and analysis support decision-making, particularly in the area of control.

The financial forecasting and purchasing management course focuses on the practical application of economic and financial models, which are crucial for performing strategic and operational analysis within a company.

Participants in this course will develop the skills to effectively plan for business needs and apply essential planning and analysis concepts in ways that are directly relevant to the business environment.

This course also covers performance planning, evaluation, and understanding the risks and viability of an organization's profitability.

As the backbone of strategy formulation and implementation, financial planning and analysis are critical, and this course equips participants with the technical skills necessary for successfully integrating the financial and risk components of their roles.

Objectives:

By the end of this financial analysis and planning course, participants will be able to:

• Formulate forecasts and improve planning practices.
• Utilize financial planning and analysis tools to enhance planning and monitoring activities.
• Improve outcomes by effectively using economic and financial analytics.
• Integrate planning, forecasting, and budgeting with costing and performance management.
• Expand their financial knowledge to better execute the financial aspects of their responsibilities.
• Build confidence in addressing financial matters and collaborating with financial professionals.
• Use financial information to support the implementation of organizational strategies.
• Select the appropriate quantitative analysis techniques for investment, operational, or financing decisions.
• Gain a deeper understanding of strategic and operational planning, including budgeting.
• Master business terminology related to costing and budgeting.
• Recognize the importance of a robust costing and budgeting system.
• Understand and accurately apply cost behavior analysis.

Training Methodology:

• Financial Modeling Workshops
• Scenario Simulations
• Problem-Solving Exercises
• Collaborative Learning with Peer Feedback
• Expert Seminars

Course Outline:

Unit 1: The General Features of Financial Economic Decision-making

• Financial economic analysis methodologies and tools
• Value creation for corporations and shareholders
• Strategic benchmarking and competitive analysis
• Addressing agency conflict and enhancing corporate governance
• Identifying essential data and information for analysis
• Understanding the purpose and function of financial statements
• The role of financial management in planning and analysis

Unit 2: Business Performance Assessment

• Utilizing ratio analysis for comprehensive business performance evaluation
• Insights from management, owners, and lenders
• Interdependence of ratios and ratio pyramids
• Financial integration through the Dupont system
• Calculating economic value added (EVA)
• Best practices in forecasting financial performance and reducing distress

Unit 3: Projection of Financial Requirements

• Relationship between financial forecasts and projections
• Framing operational budgets
• Standard costing and performance budgeting
• Cash flow forecasting and budgeting
• Importance of planning and forecasting analysis
• Navigating business expansion systems
• Leveraging operational leverage in planning
• Formulating financial growth strategies
• Fundamentals of finance modeling

Unit 4: Planning and Analysis of Investment Decisions

• Time-adjusted performance measures
• Evaluating non-recoverable costs (NPV) and internal costs (IRR)
• Strategic investment decision-making
• Relationship between EVA and NPV
• Key factors in investment evaluation
• Annualized resource cost (EAC)
• Modified internal rate of return (MIRR)
• Sensitivity analysis, scenario analysis, simulation, and NPV break-even techniques
• Managing investment risk in dynamic environments

Unit 5: Valuation and Business Performance

• Strategies for increasing investor wealth
• Shareholder value creation concepts
• History and evolution of value-based methods
• Value creation during structural changes and business transactions
• Financial strategic perspectives in acquisitions
• Techniques and methodologies for company valuation
• Corporate restructuring and internal reshaping
• Management buyouts and buy-ins

Unit 6: Strategic and Financial Management

• Differences between financial and managerial accounting objectives
• Synergy between strategy, operational goals, budgets, cost structures, and performance metrics
• Principles of strategic planning and its value
• Refining mission, vision, strategy, and financial targets
• External and internal analysis: SWOT and PESTEL
• Implementing activities within the organization
• Identifying internal value creation factors

Unit 7: The Structure of Budgeting

• Definition and purpose of budgeting
• Budgeting concepts and classifications
• Budgetary management and the human behavior component of planning and control
• Scheduling, sales planning, and advancing the budgeting process
• Organizational budgeting processes
• Top-down vs. bottom-up budgeting
• Incremental vs. zero-based budgeting

Unit 8: Cost Financial Decision-Making for Budgeting

• Scope and categorization of internal costs
• Cost behavior analysis (fixed and variable costs)
• Applying breakeven models using equations
• Contribution margin principles
• Differences between variable and fixed costs
• Conventional costing vs. activity-based costing
• Product costs vs. period costs

Unit 9: Controlling Budget Variances

• Budget structure within the organization
• Department and project-level budget variance analysis
• Analytical approaches to budget variance management
• Flexible vs. static budgets
• Calculating flexible-budget variances and volume variances
• Standard costs in variance investigations
• Variance analysis in continuous improvement frameworks

Unit 10: Beyond Budgeting and Expanding Performance Measurement Systems

• Advantages and disadvantages of traditional budgeting
• Improving budgeting practices within the organization
• Forward-thinking practices beyond conventional budget preparation
• Linking strategy, budgeting, and performance measurement with the Balanced Scorecard
• Expanding financial and customer dimensions
• Perspectives on internal business processes, learning, and growth
• Adapting and designing the scorecard to fit organizational needs