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BUSINESS AND FINANCIAL MODELS MARSH, CLIVE

By: Publication details: KOGAN PAGE INDIA PRIVATE LIMITED 2013 LONDONDescription: X, 281 PAPERISBN:
  • 978-0-7494-6810-1
Subject(s): DDC classification:
  • 658.15
Contents:
Contents: Chapter 1: Stages in the development of a business and financial model • Scope • The fundamental question • A step-by-step approach • Skills required • Planning the model • Data quality • Tools • Summary Chapter 2: Developing the research question and output definition • The basic question • Output definitions, examples, financial outputs • Summary Chapter 3: Visual thinking to develop fundamental questions • Contributed by John Caswell and Sarah Gall • Challenging the traditional business model • New methods and approaches - a business model reflecting the world as it is today • Structured Visual Thinking (a trademark of Group Partners): principles for a dynamic world • An architectural approach to building a future • 4DTM approach • Summary Chapter 4: Input definition • Basics of input definition • Important variables • Summary Chapter 5: Scenario identification • Determining scenarios • Populating the spreadsheet with input values and formulae • Running different scenarios • Using Excel Scenario Manager for what-if analysis • Scenarios versus projections • Summary Chapter 6: Building a simple model • Process • Example • Data extraction using Excel pivot tables • Some reminders of best practice • Reasons for failure of a model and how to avoid them • Summary Chapter 7: Using charts • Excel charts • Using charts to help concentrate on the most important variables in an organization • Charts for break-even analysis • Chart tools • Presenting data and charts to communicate clearly • Using Excel pivot charts to show extracted data • Summary Chapter 8: Modelling budgets • Planning and budgeting • Departmental budgets and variance analysis • Some key departmental budgets • Capital budgets • Summary Chapter 9: Sales budgets • Sales budgets and forecasts are key to other budgets • Elements of a sales budget • Volume assumptions • Summary Chapter 10: Production- material, labour and direct overhead budgets • Production budget • Direct materials budget • Direct labour budget • Direct overhead budget • Gross margin and profit budget • Margin and profit sensitivity • Departmental budget spreadsheet • Summary Chapter 11: Fixed assets and depreciation • Accounting depreciation, straight line and reducing balance • Additions and disposals of assets • Tax depreciation (capital allowances in the UK) • Summary Chapter 12: Managing and modelling cash flow and working capital • The cash flow cycle • Working capital ratio • Optimal stock levels • Debtors • Cash models • Cash budget • Summary Chapter 13: Investment appraisal models • Relevant cash flow • Pay-back period • Return on capital • Accounting rate of return (ARR) • Discounted cash flow and net present value/internal rate of return • Capital rationing • Summary Chapter 14: The cost of capital • The average and the marginal costs of capital • Balancing equity and external borrowing • Risk and the cost of capital • Methods of determining the cost of equity • Significance of the cost of capital • Summary Chapter 15: Business valuation models • The value of a business and building value • Methods of valuing a business • Who can value a business and what information do they require? • Examples of valuation methods and their appropriateness to valuation reasons • Earnings-based valuations • Cash flow valuation models • Discounted cash flow (DCF) method of valuation • Summary Chapter 16: Performance indicators • Dashboards • Key performance indicators • The integrated standard costing system • Activity-based costing (ABC) • Summary Chapter 17: Modelling the company balance sheet, P&L and ratio analysis • Prepare an Excel model • Analysis and financial ratios • Ratio analysis • Summary Chapter 18: Financial functions • Financial formulae and using Excel fx functions • Excel financial functions • Summary Chapter 19: Building a business model • Modelling a start-up business • Opening balance sheet • Expected returns for risk - proprietors’ pay, bank interest • Forecast profit and loss statement and sales requirement • Required marketing and selling activity • Direct costs required • Building a model • Key indicators • Business plan • Summary Chapter 20: Modelling projects • What is a project? • Critical path analysis (CPA) • CPA example • Risk and uncertainty • Gantt charts and resource planning • Modelling projects using Excel • Summary Chapter 21: Integration, complexity and business models • The level of integration required • Data and systems integration • Cloud computing • Summary Chapter 22: Business models for the green economy • Future challenges and opportunities • Production processes • Demand for greener products and services • Investor expectations • Resourcing • Effects of climate change and other factors • Supply chains • Social responsibility • Changing models • Modelling green issues • Summary Appendix I Excel shortcut command Appendix • Chart for business model build project Appendix • Discounted cash flow tables • Index
Summary: A good business model should describe how an organization creates and delivers value. A vital tool for business strategy, it enables a company to experiment with different ideas and scenarios in a safe, low-risk environment, to consider what it is aiming to achieve, and to prioritize accordingly. Financial modelling involves building a financial evaluation from a more abstract business model, enabling hypotheses and scenarios to be translated into numbers. Business and Financial Models provides an accessible introduction to these essential strategic practices, with guidance on using Microsoft Excel for projection and analysis. The book takes you through the process of building your model from the initial phase of formulating questions through modelling cash flow, budgets, investment appraisal and 'dashboard' tools for monitoring performance. Business and Financial Models also includes coverage of new visual thinking techniques, and how these can be incorporated into conventional business modelling.
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Holdings
Item type Current library Collection Call number Status Date due Barcode Item holds
Book Book Main Library FINANCE (CUP 12/SH 1) 658.15/ MAR/ 19556 (Browse shelf(Opens below)) Available 11119556
Total holds: 0
Browsing Main Library shelves, Collection: FINANCE (CUP 12/SH 1) Close shelf browser (Hides shelf browser)
658.15/ KHA/JAI/ 18901 BASIC FINANCIAL MANAGEMENT 658.15/ KHA/JAI/ 18912 BASIC FINANCIAL MANAGEMENT 658.15/ KUL/ 19092 FINANCIAL MANAGEMENT 658.15/ MAR/ 19556 BUSINESS AND FINANCIAL MODELS 658.15/ MEL/LIP/ 19623 THE NEW CFOs 658.15/ PAP/HEA/ 18206 BUSINESS ANALYSIS & VALUATION USING FINANCIAL STATEMENTS 658.15/ Raj / 30614 Microfinance in Latin America


Contents:

Chapter 1: Stages in the development of a business and financial model • Scope • The fundamental question • A step-by-step approach • Skills required • Planning the model • Data quality • Tools • Summary

Chapter 2: Developing the research question and output definition • The basic question • Output definitions, examples, financial outputs • Summary

Chapter 3: Visual thinking to develop fundamental questions • Contributed by John Caswell and Sarah Gall • Challenging the traditional business model • New methods and approaches - a business model reflecting the world as it is today • Structured Visual Thinking (a trademark of Group Partners): principles for a dynamic world • An architectural approach to building a future • 4DTM approach • Summary

Chapter 4: Input definition • Basics of input definition • Important variables • Summary

Chapter 5: Scenario identification • Determining scenarios • Populating the spreadsheet with input values and formulae • Running different scenarios • Using Excel Scenario Manager for what-if analysis • Scenarios versus projections • Summary

Chapter 6: Building a simple model • Process • Example • Data extraction using Excel pivot tables • Some reminders of best practice • Reasons for failure of a model and how to avoid them • Summary

Chapter 7: Using charts • Excel charts • Using charts to help concentrate on the most important variables in an organization • Charts for break-even analysis • Chart tools • Presenting data and charts to communicate clearly • Using Excel pivot charts to show extracted data • Summary

Chapter 8: Modelling budgets • Planning and budgeting • Departmental budgets and variance analysis • Some key departmental budgets • Capital budgets • Summary

Chapter 9: Sales budgets • Sales budgets and forecasts are key to other budgets • Elements of a sales budget • Volume assumptions • Summary

Chapter 10: Production- material, labour and direct overhead budgets • Production budget • Direct materials budget • Direct labour budget • Direct overhead budget • Gross margin and profit budget • Margin and profit sensitivity • Departmental budget spreadsheet • Summary

Chapter 11: Fixed assets and depreciation • Accounting depreciation, straight line and reducing balance • Additions and disposals of assets • Tax depreciation (capital allowances in the UK) • Summary

Chapter 12: Managing and modelling cash flow and working capital • The cash flow cycle • Working capital ratio • Optimal stock levels • Debtors • Cash models • Cash budget • Summary

Chapter 13: Investment appraisal models • Relevant cash flow • Pay-back period • Return on capital • Accounting rate of return (ARR) • Discounted cash flow and net present value/internal rate of return • Capital rationing • Summary

Chapter 14: The cost of capital • The average and the marginal costs of capital • Balancing equity and external borrowing • Risk and the cost of capital • Methods of determining the cost of equity • Significance of the cost of capital • Summary

Chapter 15: Business valuation models • The value of a business and building value • Methods of valuing a business • Who can value a business and what information do they require? • Examples of valuation methods and their appropriateness to valuation reasons • Earnings-based valuations • Cash flow valuation models • Discounted cash flow (DCF) method of valuation • Summary

Chapter 16: Performance indicators • Dashboards • Key performance indicators • The integrated standard costing system • Activity-based costing (ABC) • Summary

Chapter 17: Modelling the company balance sheet, P&L and ratio analysis • Prepare an Excel model • Analysis and financial ratios • Ratio analysis • Summary

Chapter 18: Financial functions • Financial formulae and using Excel fx functions • Excel financial functions • Summary

Chapter 19: Building a business model • Modelling a start-up business • Opening balance sheet • Expected returns for risk - proprietors’ pay, bank interest • Forecast profit and loss statement and sales requirement • Required marketing and selling activity • Direct costs required • Building a model • Key indicators • Business plan • Summary

Chapter 20: Modelling projects • What is a project? • Critical path analysis (CPA) • CPA example • Risk and uncertainty • Gantt charts and resource planning • Modelling projects using Excel • Summary

Chapter 21: Integration, complexity and business models • The level of integration required • Data and systems integration • Cloud computing • Summary

Chapter 22: Business models for the green economy • Future challenges and opportunities • Production processes • Demand for greener products and services • Investor expectations • Resourcing • Effects of climate change and other factors • Supply chains • Social responsibility • Changing models • Modelling green issues • Summary

Appendix I Excel shortcut command

Appendix • Chart for business model build project

Appendix • Discounted cash flow tables • Index

A good business model should describe how an organization creates and delivers value. A vital tool for business strategy, it enables a company to experiment with different ideas and scenarios in a safe, low-risk environment, to consider what it is aiming to achieve, and to prioritize accordingly. Financial modelling involves building a financial evaluation from a more abstract business model, enabling hypotheses and scenarios to be translated into numbers. Business and Financial Models provides an accessible introduction to these essential strategic practices, with guidance on using Microsoft Excel for projection and analysis. The book takes you through the process of building your model from the initial phase of formulating questions through modelling cash flow, budgets, investment appraisal and 'dashboard' tools for monitoring performance. Business and Financial Models also includes coverage of new visual thinking techniques, and how these can be incorporated into conventional business modelling.

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