Understanding Finance for Strategic Decision Making

Course Objectives
On successful completion of the Understanding Finance for Strategic Decision-Making course, participants shall be able to:
• Understand the application of elemental principles of finance to business strategy and policymaking
• Appreciate correlation between finance and strategy
• Comprehend how strategic decision making can increase shareholder’s wealth and result in value maximisation
• Know various functions of finance and how they affect the overall well-being of the firm
• Value assets and manage financial risk for the firm
• Understand various concepts related to working capital management, evaluation techniques, financial analysis, time value of money, etc.
Course Outline
Introduction to basics of finance and its relation to strategy
• Financial management
• Role of finance, 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, 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 of the organization
• 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
• Inter-relating financial planning and strategy
• Financial statement analysis: ratio analysis
• Comparative statement analysis

Methodology
The training methodology integrates lectures, interactive discussions, collaborative group exercises, and illustrative examples. Participants will acquire a blend of theoretical insights and hands-on practical experience, emphasizing the application of learned techniques. This approach ensures that attendees return to their professional environments equipped with both the competence and self-assurance to effectively implement the acquired skills in their responsibilities.
DATE:
1ST BATCH: 18th – 21st Feb, 2025
2ND BATCH: 5th – 8th Aug, 2025