Financially Fabulous: Strategic Decision Making

Course overview

How do you make financial decisions? Finance is a constant requirement for all businesses to stay afloat. The idea that businesses exist primarily in order to produce more money is not absurd.

Each and every action has its origin in finance, including starting a business, establishing an operation, buying inventory, recruiting staff, producing goods, paying rent, placing ads, acquiring machinery, and paying dividends to shareholders.

Money, capital, cash, and investments are all related phrases that, to a non-professional, may all have the same meaning. An expert, however, would not only be able to distinguish between these phrases but also comprehend the requirement for skillful administration in each and every area of finance.

A manager’s ability to manage finances effectively may be the difference between a successful and failing company. Simply setting aside money and using it for other purposes won’t lead to the company’s success.

Understanding that there is science involved in the allocation and acquisition of finance is necessary. Management must make smart judgments addressing important financial issues. Gaining expertise in the smart use of finances will boost a company’s profitability and guarantee its long-term survival in the face of fierce competition.

What are the many ways to get money? Which source is most appropriate for the company? What impact will time value of money have on the business’s operations? Which investments will be the best for the company?

Introduction

How can the performance of an investment be assessed? Which combination of financial structures will best support the corporate’s overarching goals? How can the business manage debt while maintaining financial leverage? How will decisions that maximize value be made as a consequence of proper alternative evaluation? The general management of the company can find these inquiries perplexing.

They won’t be able to recognize the strategic ramifications these questions may have on the firm’s financial stability due to their lack of expertise. Understanding the relationship between strategy and finance becomes crucial for both general managers and finance managers. General Managers must become knowledgeable in finance to make wise decisions, and finance managers must recognize strategic management to achieve successful financial outcomes.

We are The Training Bee, a global training and education firm providing services in many countries. We are specialized in capacity building and talent development solutions for individuals and organizations, with our highly customized programs and training sessions.

This Training Bee training course understands that having a solid understanding of money is crucial for making strategic decisions and draws a comparison between the two. Any professional who wants to have a greater understanding of finance both practically and conceptually must take this course as a requirement.

Learning Objectives

Upon completing Financially Fabulous: Strategic Decision Making, participants will be able to:

• Recognize how to use fundamental financial concepts into decisions about business strategy and public issues.
• Recognize the link between strategy and money
• Understand how making strategic decisions may maximize value and improve shareholder wealth.
• Understand the main financial operations and how they impact the firm’s overall health.
• Assessing assets and controlling the company’s financial risk

Our Unique Training Methodology

This interactive course comprises the following training methods:

• Role-playing – Participants will take part in several role-plays and understand practical ways of solving issues.
• Journaling – This consists of setting a timer and letting your thoughts flow, unedited and unscripted recording events, ideas, and thoughts over a while, related to the topic.
• Social learning – Information and expertise exchanged amongst peers via computer-based technologies and interactive conversations including Blogging, instant messaging, and forums for debate in groups.
• Project-based learning
• Mind mapping and brainstorming – A session will be carried out between participants to uncover unique ideas, thoughts, and opinions having a quality discussion.
• Interactive sessions – The course will use informative lectures to introduce key concepts and theories related to the topic.

Training Medium

This Financially Fabulous: Strategic Decision Making training is designed in a way that it can be delivered face-to-face and virtually.

Course Duration

This training is versatile in its delivery. The training can be delivered as a full-fledged 40-hour training program or a 15- hours crash course covering 5 hours of content each day over 3 days

Pre-course Assessment

Before you enroll in this course all we wanted to know is your exact mindset and your way of thinking.
For that, we have designed this questionnaire attached below.

• What function does financial management serve in a company?
• Describe the differences between management and financial accounting.
• What are the main three financial statements, and what data does each one offer?
• Describe the meaning of the term “cash flow” and the role it plays in financial decision-making.
• What function do financial ratios serve in evaluating the financial success of a company? Give some instances of typical financial ratios.
• Describe the time value of money notion and how it relates to strategic decision-making.

Course Modules

This Financially Fabulous: Strategic Decision Making covers the following topics for understanding the essentials of the Agile Workplace:

Module 1 – Basics of finance explained, along with how it relates to strategy

• Financial administration
• Functions of finance and its role
• What financial managers do
• Agency theory: shareholders versus management
• Various financial tactics

Module 2 – Time value of money theory

• Money’s worth over time
• Future and current values
• Annuities and cash flows
• Compounding and discounting

Module 3 – Trade-off between risk and reward

• Risk assessment using standard deviation and variance
• Estimate of beta
• Risk that is both systematic and random
• Models for asset pricing: Costing of Capital Model

Module 4 – Capital planning

• Investing choices
• Criterion for evaluating investments
• Techniques for making investment decisions: NPV and IRR
• Impact of capital budgeting on an organization’s strategy formation
• Risk assessment

Module 5 – Investment approach

• Capital expenditures
• Decisions on investments and company strategy
• Capital restriction

Module 6 – Capital arrangement

• Theory of capital structures
• Recognizing the debt trap
• Monetary leverage
• EBIT-EPS evaluation

Module 7 – Maximizing value and managing risk

• Corporate reorganization
• Value generating
• Business planning and mergers and acquisitions
• Leveraged acquisitions

Module 8 – Financial analysis and planning

• Planned financial strategy
• Financial planning and strategy are related
• Analysis of financial statements: Ratio analysis
• Analysis of comparative statements

Post-course Assessment

Participants need to complete an assessment post-course completion so our mentors will get to know their understanding of the course. A mentor will also have interrogative conversations with participants and provide valuable feedback.

• Describe how financial analysis plays a part in making strategic decisions. How may financial data affect and direct strategic decisions?
• Describe the idea of cost of capital and how it affects the viability of investment initiatives. Give an illustration of how to use cost of capital in decision-making.
• What constitutes a comprehensive financial strategy for an organization’s main elements? Describe the elements that should be taken into account while creating a financial strategy.
• Discuss the benefits and drawbacks of various funding options for businesses. How businesses should assess and decide which finance sources are best for their strategic initiatives?
• Describe the capital budgeting procedure and the various methods for assessing investment possibilities.

Lessons Learned

Strategic decision-making requires the use of financial data, which is why the course emphasizes its importance in influencing and guiding strategic decisions. Decision-makers may make wise and useful choices if they are aware of financial statements, ratios, and ideas like cost of capital.

Long-term decision-making is impacted by time value of money: The temporal value of money theory emphasizes how variables like interest rates and inflation cause a change in the worth of money over time. This knowledge aids in assessing long-term investment prospects and taking time into account when making strategic financial decisions.

Risk management and evaluation are essential: Risk management and assessment are part of finance. To reduce possible financial risks, organizations must implement risk management techniques and grasp the link between risk and return.

“Making the Best Decisions Possible: Linking Finance and Strategy”