Introduction

This 5-day seminar will help participants understand how financial analysis and basic financial concepts can be used by managers at all levels to make better strategic decisions. The seminar will establish the theoretical framework for making strategic financial decisions and review the tools available to managers for analyzing and evaluating strategic alternatives.

Topics examined in this seminar include such fundamental concepts as risk versus return, the cost of capital, the time value of money and the significance of statistics. The seminar will also examine the importance of financial planning, capital budgeting, leverage, capital structure and mergers as a means to achieve strategic objectives. Finally, the seminar will review the potential impact of economics, taxes and foreign currency on strategic planning.

Seminar Objectives - Upon completion of the seminar attendees will:

• Understand the importance of finance as a component of the strategic decision making process
• Understand the significance of the theoretical concepts underlying the use of financial tools in the strategic decision making process
• Understand the application of financial tools in the strategic decision making process
• Understand how external factors can impact strategic financial plans and affect strategic decisions
• Have gained practical experience using analytic tools to evaluate the financial consequences of alternative strategic decisions
• Have used financial tools to evaluate strategic alternatives in case studies taken from the real world

Training Methodology

The seminar will be presented in a participative classroom style with discussion, practical exercises and case studies. Attendees will need to bring a pocket calculator in order to participate in the exercises and case studies. If the attendee has a laptop computer with Microsoft Excel he or she may want to bring that.

Seminar Benefits

Attendees should leave the seminar with a better understanding of how financial considerations help to determine an organization’s strategic decisions which should enable managers to better anticipate how such decisions may affect their own department or business unit. Organizations should benefit from the ability of managers to understand and anticipate the financial factors that go into strategic decisions which should ultimately result in better strategic planning.

Who Should Attend?

This seminar is designed for business professionals from sales and marketing, project management, human resource and other non-financial areas that need or wish to understand the financial aspects of the strategic decision making process. Other prospective attendees would include interns, junior financial analysts and other people active in the planning process.

Seminar Outline

Module 1 - Fundamentals of Strategic Planning

• Why plan
  • Establish an unambiguous direction
  • Balance long term and short term objectives
  • Identify required and available resources
  • Establish investment criteria
  • Compare investment alternatives
• Components of a plan
  • Mission Statement
  • Long Term Goals
  • Short Term Objectives
  • Operating Plan
  • Financial Plan
• Apply Knowledge in an Exercise

Module 2 - Fundamentals of Financial Statements

• Understanding financial statements
• Analyzing financial statements
• Using financial analysis in strategic planning
• Apply Knowledge in an Exercise

Module 3 - Important Concepts

• Profit Versus Wealth
• The Value of Money Over Time
• Risk Versus Return
• The Cost of Capital
• Apply Knowledge in an Exercise

Module 4 - Capital Budgeting

• Preliminary Steps
• Capital Budgeting Methods With No Risk
• Capital Budgeting Methods With Risk
• Apply Knowledge in an Exercise

Module 5 - Capital Structure and Leverage

• Basic Concepts
• Explaining Financial Leverage
• The Impact of Working Capital on Leverage
• Capital Structure
  • Capital Structure and the Value of Stock
  • Capital Structure and the Value of the Firm
  • Capital Structure Controversies
• Sources of Capital
  • Equity
    • Common
    • Preferred
    • Quasi Equity
  • Debt
    • Long Term
    • Short Term
    • Seasonal
    • Permanent
  • Lease versus Loan
• Apply Knowledge in an Exercise

Module 6 - Bringing It All Together

• Review What Was Learned in Previous Modules
• Apply Knowledge in an Exercise

Module 7 - Case Study

• Establish Strategic Objectives
• Establish Minimum Return of Investment Criteria
• Establish Strategic Investment Needs/Alternatives
• Determine Financial Resource Requirements
• Determine Financing Alternatives
• Analyze projected ROI from Each Investment Alternative
• Do Sensitive Analysis using Different Financing Alternatives
• Analyze Profit and Loss and Cash Flow Implications of Each Alternative
• Analyze Each Alternative’s Balance Sheet Impact
• Analyze Impact on Capital Structure, Stock Price and Value of Firm
• Make Recommendations

Module 8 - Case Study

• Review and Discuss Recommendations

Oxford Management Centre
John Eccles House
Robert Robinson Ave
Oxford Science Park
Oxford
OX4 4GP
United Kingdom

Tel: +44 1865 338088

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email info@oxford-management.com