Introduction
Financial decision-making is crucial for all businesses to sustain and grow. Every aspect of business operations, from setting up an enterprise to daily activities like purchasing inventories, hiring employees, and marketing, hinges on finance. A proper understanding and strategic management of finance distinguish successful businesses from unsuccessful ones. This course emphasizes the importance of understanding finance for effective strategic decision-making.
Learning Objectives
Upon completing the Understanding Finance for Strategic Decision-Making course, participants will:
- Apply fundamental principles of finance to business strategy and policymaking.
- Appreciate the correlation between finance and strategy.
- Understand how strategic decision-making can maximize shareholder wealth and create value.
- Comprehend various finance functions and their impact on the firm’s well-being.
- Value assets and manage financial risk effectively.
- Understand key concepts related to working capital management, evaluation techniques, financial analysis, and the time value of money.
Training Methodology
This collaborative training program includes:
- Interactive lecture sessions
- Problem-solving sessions
- Presentations
- Case studies
- Financial modelling
- Group discussions
- Management games Xcelerate Training Institute employs the ‘Do-Review-Learn-Apply’ model for effective learning.
Benefits for Your Organization
Organizations will benefit from:
- Implementing effective capital budgeting techniques for prudent investment decisions.
- Evaluating various sources of finance using techniques like EBIT-EPS analysis.
- Understanding the cost of capital in relation to the firm’s objectives.
- Gaining insight into the time value of money and its impact on financial results.
- Designing an optimal capital structure mix.
- Identifying and mitigating financial risks.
- Setting financial goals that align with organizational objectives.
Benefits for You
Participants will gain:
- Knowledge of various financial concepts and terminologies.
- Expanded expertise in finance.
- Enhanced job opportunities in the field of finance.
- A foundation for further job-related training.
- Improved learning and decision-making abilities.
Target Audience
This course is ideal for:
- Budding entrepreneurs and start-up founders
- Financial managers and credit managers
- General managers, corporate managers, and operations managers
- Business policymakers
- Departmental heads, managers, and executives
- Financial analysts
- Investors
Course Outline
Introduction to Basics of Finance and Its Relation to Strategy
- Financial Management
- Role of Finance and Finance Functions
- Role of Finance Managers
- Agency Theory: Management vs. Shareholders
- Types of Financial Strategies
- Working Capital Management
Concept of Time Value of Money
- Time Value of Money
- Future Value and Present Value
- Cash Flows and Annuity
- Discounting and Compounding
Risk and Return: Trade-Off
- Calculation of Risks Using Standard Deviation and Variance
- Beta Estimation
- Systematic and Unsystematic Risk
- Asset Pricing Models: Capital Asset Pricing Model
Capital Budgeting
- Investment Decisions
- Investment Evaluation Criteria
- Investment Decision-Making Techniques: NPV, IRR
- Impact of Capital Budgeting on Strategy Formulation
- Risk Analysis
Investment Strategy
- Capital Investments
- Investment Decisions and Corporate Strategy
- Capital Rationing
Capital Structure
- Capital Structure Theory
- Understanding Debt Trap
- Financial Leverage
- EBIT-EPS Analysis
- Weighted Average Cost of Capital
Value Maximization and Risk Management
- Corporate Restructuring
- Value Creation
- Corporate Strategy and Mergers & Acquisitions
- Leveraged Buy-Outs
- Risk Hedging
- Risk Management Strategy
Financial Planning and Analysis
- Strategic Financial Planning
- Interrelating Financial Planning and Strategy
- Financial Statement Analysis: Ratio Analysis
- Comparative Statement Analysis
- DuPont Analysis
- Case Study