Learning Objectives
At the end of this program, each participant will understand:
- why market conditions dominate business decisions,
- the difference between cash and profit,
- direct and indirect costs,
- the value of budgets and cash flow forecasts,
- the impact of inventory build-up,
- the need to control working capital,
- financial statements and their management uses, and
- ratios as measures for management
Each participant will have these tools:
- basic financial statements – income statement, balance sheet,
- budgets and cash flow forecasts, including break-even analysis,
- income statement analysis, and
- Ratio Analysis: ROA or RONA, ROS, ROI, Liquidity, Debt to Equity.
Each participant will experience:
- playing all the major roles in an operating company – production, R&D sales and marketing, management, and finance, with team decision making in each area,
- generating financial statements for their operating company,
- preparing budgets and cash flow forecasts, including break-even graphs,
- calculating basic ratios on their operating company,
- using ratios and income statement analysis to compare their business to their competitor’s,
- identifying areas of operation needing improvement, and
- using ratios and other measurements to identify the “buttons” which drive company performance and behaviour.
Each participant will be better equipped to:
- interpret financial reports,
- prioritise and control costs,
- structure sales,
- reduce inventories and other working capital,
- target the best profit opportunities,
- analyse competitors,
- improve your bottom line through bench-marking,
- better serve internal and external customers, and
- understand how their actions impact other areas of the company.