UNDERSTANDING FINANCE FOR STRATEGIC DECISION MAKING

Objective:

• Understand the application of fundamental finance principles to business strategy and policy development
• Recognize the relationship between finance and strategic decision-making
• Apply financial decision-making techniques to maximize shareholder value and organizational performance
• Understand the key functions of finance and their impact on business success
• Evaluate investments, value assets, and manage financial risk effectively
• Apply concepts of working capital management, financial analysis, capital budgeting, and the time value of money in strategic decision-making

Content:

Finance Fundamentals and Strategic Management

• Understanding financial management principles
• Exploring the role and functions of finance within an organization
• Understanding the responsibilities of finance managers
• Applying agency theory to management and shareholder relationships
• Exploring different financial strategies
• Managing working capital effectively

Time Value of Money

• Understanding the time value of money
• Calculating present value and future value
• Managing cash flows and annuities
• Applying discounting and compounding techniques

Risk and Return Analysis

• Measuring financial risk using variance and standard deviation
• Estimating beta and market risk
• Understanding systematic and unsystematic risks
• Applying the Capital Asset Pricing Model (CAPM)

Capital Budgeting and Investment Decisions

• Understanding capital investment decisions
• Applying investment evaluation criteria
• Using Net Present Value (NPV) and Internal Rate of Return (IRR)
• Evaluating the strategic impact of capital budgeting
• Conducting investment risk analysis

Investment Strategy and Capital Structure

• Developing capital investment strategies
• Aligning investment decisions with corporate strategy
• Understanding capital rationing
• Exploring capital structure theories
• Managing financial leverage and avoiding debt traps
• Applying EBIT-EPS analysis and Weighted Average Cost of Capital (WACC)

Value Maximization and Financial Risk Management

• Understanding corporate restructuring strategies
• Creating long-term shareholder value
• Managing mergers, acquisitions, and leveraged buy-outs
• Applying risk hedging techniques
• Developing effective financial risk management strategies

Strategic Financial Planning and Analysis

• Developing strategic financial plans
• Aligning financial planning with business strategy
• Analyzing financial statements using ratio analysis
• Performing comparative financial statement analysis

For Whom:

• Entrepreneurs and Start-up Founders
• Finance Managers and Credit Managers
• General Managers, Corporate Managers, and Operations Managers
• Business Executives and Policy Makers
• Departmental Heads and Senior Managers
• Financial Analysts and Professionals involved in strategic financial decision-making