Financial Strategy: Core Skills for Effective Finance Management

Introduction:

This seminar on Strategic Financial Management Skills delves into the essential concepts of corporate finance, financial strategy, and management. By blending modern, practical examples with theoretical principles, this seminar brings these concepts to life. The primary objective is to equip participants with cohesive and powerful tools to develop their analytical skills and enhance their decision-making capabilities.

Objectives:

Upon completing the Strategic Financial Management Skills course, participants will be able to:

• Identify, select, and evaluate various techniques for performing capital investment appraisals.
• Formulate and implement an appropriate financial policy.
• Integrate financial considerations into overall business strategy.
• Plan and control cash and other current assets to minimize costs and optimize working capital.
• Understand that an appropriate financial strategy is crucial not only for competitive advantage but also for creating shareholder value that exceeds market expectations.
• Evaluate the role of corporate governance in achieving corporate objectives and understand the implications of corporate actions.
• Understand the relationship between a firm's financial strategy, its corporate life-cycle stages, and the interplay between capital structure and profitability.
• Assess their contribution to creating value for shareholders.
• Analyze the company's financial strategy through the lens of its lifecycle and Weighted Average Cost of Capital (WACC).

Training Methodology:

• Participatory lectures
• In-depth case studies
• Tutorials
• Financial modeling
• Role-playing activities
• Problem-solving workshops
• Self and peer learning
• Fieldwork

Course Outline:

Unit 1: Corporate Finance Strategy and Corporate Behavior

• Corporate goals and financial strategies
• Analysis and interpretation of financial statements (Part 1)
• Risk and capital structure
• Cost of equity and debt capital
• Agency issues
• Corporate control mechanisms
• Regulatory framework of financial statements

Unit 2: Financial Strategy in Phases of Corporate Growth

• Analysis and interpretation of financial statements (Part 2)
• Strategic building using modern analytical methods
• DuPont analysis
• Business lifecycle and capital structure
• WACC and shareholder return
• Cash budgeting and working capital management
• Working capital measurements
• Z scores

Unit 3: Management of Costs & Value

• Understanding value and cost
• Cost control policies
• Strategic cost management and reduction
• Cost structure and volume analysis
• New theories and practices in cost management and control
• Value management
• Value-based pricing
• Value chain analysis
• Financial policy on value and cost relations

Unit 4: Budgeting, Planning, and Business Strategy

• Strategy models
• Linking business strategy to financial strategy
• Planning and budgeting models
• Integrating budgets with business and financial strategy plans
• Budget management
• Effective budget delegation
• Beyond budgeting techniques

Unit 5: Capital Investment Decisions

• Discounted cash flow (DCF) analysis
• Capital investment project evaluation
• Comparison of alternative investment appraisal methods
• Capital budgeting principles

Unit 6: Restructuring, Reorganizations, Mergers, and Acquisitions

• Reasons and justifications for mergers and acquisitions
• Share valuation models and acquisition financing
• Financial strategy in acquisitions and takeover defenses
• Business restructuring and reorganization strategies