COURSE OBJECTIVES
At the end of this program, participants will be able to:
- Improve strategic thinking and engage in the organisation's strategic management and budgeting processes.
- Utilise appropriate forecasting techniques for effective strategic planning and budgeting.
- Apply key principles of financial management, including shareholder wealth maximisation, cash flow, time value of money, and risk assessment.
- Recognise cost behaviours and select suitable costing methods for financial planning, budgeting, and budgetary control.
- Implement best practices for creating operating budgets, capital expenditure budgets, and cash flow budgets.
- Align budget development and forecasts with organisational strategic objectives.
- Enhance overall financial decision-making and management skills within the organisation.
TARGET AUDIENCE
- Line Managers.
- Project Managers.
- Professional Advisers.
- Consultants.
- Financial Managers.
- Financial Analysts.
- Strategic Planning Managers.
DAY 1: Strategic Management and Financing
- Strategic Analysis, Strategic choices, and evaluation, and strategic implementation.
- Shareholder Wealth maximization, Corporate and Shareholder value creation.
- Financial Strategy, Dividend Policy, the Agency Problem, and Corporate Governance.
- Capital Structure Optimisation Models to minimize WACC.
- Using Strategy Maps to link strategies to Performance Measurement: The Balanced Scorecard.
DAY 2: Financial Planning, Forecasting, and Risk Analysis
- The Financial Planning Process and Modelling using Excel.
- Statistical Forecasting Tools and Techniques
- Using Excel for Optimum Product mix decisions.
- Short-term Financing, Working Capital, and the Cash Operating Cycle.
- Uncertainty and Risk: Business Risk, Financial Risk, Systematic Risk, Unsystematic Risk.
DAY 3: Cost Analysis Techniques
- Cost Behaviour and Activities.
- Product Costs and Period Costs.
- Cost Allocation and Absorption of Overheads.
- Marginal Costing, Cost-Volume-Profit (CVP) and ‘what-if’ analysis using Excel.
- Activity-Based Costing (ABC) and Activity-Based Management (ABM).
DAY 4: Budgeting, Budgetary Control, and Performance Improvement
- Stages in the Budget Preparation Process and Preparation of the Master Budget.
- Activity-Based Budgeting (ABB).
- Responsibility Accounting and Variance Analysis.
- Advantages, Disadvantages, and Behavioural Aspects of Budgeting.
- Lean thinking and integrating continuous performance improvement into the Budget Process.
DAY 5: Project Appraisal and Capital Budgeting
- The Time Value of Money, Future Values & Present Values.
- Discounted Cash Flow (DCF).
- Capital investment Project Appraisal.
- Project Risk: Sensitivity Analysis; simulation; scenario analysis; NPV break-even.
- Capital Rationing and Capital Budgeting and the Profitability Index (PI).
