Planification has been used by western countries only since the 60’s, after the success of the communist countries.
The plans are based on strategical considerations: e.g. SWOT diagnosis and analysis of the market = competitors, suppliers, customers, possible newcomers...). They define in financial terms how to put in practise the strategy. The financial plans describe the assets requirements (projected capital spending and proposed uses of net working capital) and the financial requirements (financing arrangements including dividend policy and debt policy, and sometimes the methods of issuance new shares of stock).
The elements of the financial plans can be formalized into a model. Generally, the models are run under different scenarios (conduct sensitivity analysis).
Limits: possible tendency towards bureaucracy ; it has become very difficult to predict even the near future. Financial management includes decisions that much depend on accounting and fiscal law and on services locally provided by banks. Therefore, the so-called universal corporate financial models are not easily applicable outside the United States.
Operating plans >>
|
|
Corporate finance
The subject: corporate finance
PART ONE: CAPITAL EXPENDITURE
The present value
Investment
decisions
Practical
problems in capital budgeting
Firms evaluation
PART TWO. BASICS OF FINANCE
The financial
markets
Options
The market
efficiency
Risk
Mergers,
Acquisitions, and Corporate Control
International
Financial Management
PART THREE FINANCING DECISIONS
Corporate
financing
Dividend policy
and capital structure
PART FOUR FINANCIAL MANAGEMENT
Financial
planning
Short-term
financial management
Courses created and updated by Dr David Chelly, PhD in Management sciences from the University of Tours.
|