Cambridge
Academy
In London

Introduction

This mastering leadership and financial skills seminar brings together two of the most critical areas of financial management: understanding finance to influence strategic decisions and financial analysis, planning, and control.

Course Objectives

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

·        Think and manage strategically and plan more effectively for the future.

·        Identify the role of financial management in strategic decision-making.

·        Use the financial techniques of planning and control.

·        Improve performance from the use of the tools of economic financial analysis.

·        Develop business strategies.

·        Understand how financial management supports strategic development.

·        Broaden their financial knowledge.

·        Develop and manage the financial aspects of their role more effectively and enhance their performance.

·        Increase their self-confidence in dealing with economic and financial issues and financial professionals.

·        Appreciate how such decisions may affect their departments, business units, and companies.

·        Acquire the ability, when involved in decisions about investment, operations, or financing, to choose the most appropriate tools from the wide variety of financial techniques available to provide a quantitative analysis.

·        Understand the exact nature and scope of the business problems to be analyzed.

·        Obtain quick 'ballpark' estimates of likely outcomes of decisions.

·        Understand the implications and relative importance of cash flow distinct from accounting profit in economic and financial analysis.

Target Audience

This course is designed for:

·        Financial analysts.

·        Financial controllers.

·        Accountants.

·        Treasurers.

·        Corporate planning professionals.

·        Business development professionals.

·        Middle and junior management is a valuable element in their career advancement.

Targeted Competencies

·        Strategic planning and thinking.

·        Financial statements.

·        Budgeting.

·        Financial risk management.

·        Business performance management.

·        Financial, economic decision-making.

·        Investment decision-making.

Course Outlines

Day 1: Fundamentals of Strategic Planning

·        What is strategy?

·        Strategic management.

·        Strategic analysis.

·        Mission.

·        Objectives.

·        Strategic decision-making.

·        The strategic planning process.

·        Environmental analysis.

·        Resources analysis.

·        Strategic choice and strategic decision-making.

·        Strategic implementation.

·        Corporate objectives and accountability.

·        Forecasting financial data.

Day 2: Fundamentals of Financial Statements

·        Financial statements.

·        Balance sheet.

·        Income statement.

·        Alternative asset valuation methods.

·        Cash flow statement.

·        Standard size (or horizontal) trend analysis of financial statements.

·        Vertical trend analysis of financial statements.

·        Segmental analysis of financial statements.

·        Value-added analysis of financial statements.

·        Understanding the cash flow cycle and the operating cycle.

·        Break-even and multiple product break-even analysis.

Day 3: Capital Structure and Leverage

·        Sources of funds.

·        Capital cost models.

·        Cost of equity.

·        Cost of debt.

·        Weighted average cost of capital (WACC).

·        Can we determine a company's optimal capital structure?

·        Capital structure models.

·        Preparing projections to assess financing needs.

Day 4: Capital Budgeting

·        Future values, present values, and DCF.

·        Capital budgeting principles.

·        Methods of evaluating capital investment projects.

·        Accounting rate of return (ARR) and payback.

·        Net current value (NPV) versus internal rate of return (IRR).

·        How do you choose which method to use?

·        Equivalent annual cost (EAC) method.

·        Capital budgeting methods.

·        Capital asset pricing model (CAPM) versus arbitrage pricing theory (APT).

·        Does it make a difference whether we lease or buy?

Day 5: Managing Financial Risks

·        The value of perfect information (VOPI)

·        Types of risk.

·        Risk management principles.

·        Talking to your bankers about managing risk.

·        How do you develop the tools for your company?

·        How to minimize risk?

·        Insurance and hedging.

·        Interest rate and foreign currency exchange rate risk.

Day 6: The Challenge of Financial Economic Decision-Making

·        The practice of financial-economic analysis.

·        Corporate value and shareholder value.

·        A dynamic perspective of business Benchmarking your own strategic position/competitor analysis.

·        The agency problem and corporate governance.

·        What information and data to use?

·        The nature of financial statements.

·        The context of financial analysis and decision-making.

Day 7: Assessment of Business Performance

·        Ratio analysis and business performance.

·        Management's point of view.

·        Owners' point of view.

·        Lenders' point of view.

·        Ratios as a system – pyramids of ratios.

·        Integration of financial performance analysis – the "Dupont" system.

·        Economic value added (EVA).

·        Predicting financial distress.

Day 8: Projection of Financial Requirements

·        Interrelationship of financial projections.

·        Operating budgets.

·        Standard costing and variance analysis.

·        Cash forecasts and cash budgets.

·        Sensitivity analysis.

·        Dynamics and growth of the business system.

·        Operating leverage.

·        Financial growth plans.

·        Financial modeling.

Day 9: Analysis of Investment Decisions

·        Applying time-adjusted measures.

·        Net present value (NPV) and internal rate of return (IRR).

·        Strategic perspective.

·        EVA and NPV.

·        Refinements of investment analysis.

·        Equivalent annual cost (EAC).

·        Modified internal rate of return (MIRR).

·        Sensitivity analysis, scenario analysis, simulation, and NPV break-even.

·        Dealing with risk and changing circumstances.

Day 10: Valuation and Business Performance

·        Managing shareholder value.

·        Shareholder value creation in perspective.

·        Evolution of value-based methodologies.

·        Creating value in restructuring and combinations.

·        Financial strategy in acquisitions.

·        Business valuation.

·        Business restructuring and reorganizations.

·        Management buyouts (MBOs) and management buy-ins (MBIs).