Finance For Non-Finance Simulation

Objectives

Finance can often be a make or break factor in organisations. Yet, it is often something that is foreign to non-finance areas of the organisation.
This simulation ensures that you:
i. Know how your business generates profits today, and how it will need to generate profits in the future.
ii. Understand how your daily decisions impact your organisation strategically and financially. iii. Continuously identify areas for improvements in business operations.

 

Who Should Attend

Any employee who requires a better understanding of finance to perform better at their roles.

 

Course Description

This simulation is a board game-based simulation, which brings financial statements to life through a simple but profound model of a company. It invites participants to think like business owners so they can base their future decisions on sound business thinking. Participants from the incoming management team of A&O Inc. – an established company that is facing some tough challenges. The company is losing their market share and there are increasing demands from suppliers and customers. A&O Inc. now needs a new, disciplined financial strategy.
Teams learn how to monitor cash flow, make resource utilization improvements, and measure results in the balance sheet and income statement. Participants can gain new skills or build on prior experience to:
• Read and interpret financial statements;
• Identify critical elements affecting profitability; and
• Analyze financial ratios and key performance indicators, and make priorities accordingly.
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Participants explore the cause-and-effect relationships that govern a company’s financial statements and develop an intrinsic business sense that will govern their future decisions in everyday work.
Key Concepts:
• Stakeholder value.
• Cash flow.
• Return on assets.
• Return on equity.
• Profitability.
• Operating costs.
• Margin.
• Capacity utilization.

 

Duration

2 days

Course Outline

MODULE LEARNING OBJECTIVES

Talking finance

Introducing key finance terminologies via the board game Learning to interpret financial statements – income statement, balance sheets and cash flow

Using financial ratios to assess the financial performance of a company

Basic concepts

Understanding the basics of Return on Investment (ROI), break even, risk management, and cost & contribution accounting

Evaluating opportunities

Understanding common methods used to evaluate the financial viability of opportunities and programmes

Using financial tools

Assessing the financial viability of projects/companies by:
(i) calculating profitability, liquidity, and working capital
(ii) using break-even analysis
(iii) evaluating finance plans
(iv) assessing the impact on shareholder value

Budgeting

Learning to how to prepare & review budgets
Understanding & quantifying your company’s objectives Measuring the financial impact of strategic plans on your company

Projections

Learning to use basic forecasting tools

Understanding Pricing and
its drivers

Learn how important price is to your business in relation to cost and how finance plays a key role with your customer wins via the simulation

Making your case

Learning how to use charts & graphs to illustrate finance for use in your organization