BUSINESS AND FINANCIAL MODELS MARSH, CLIVE
Publication details: KOGAN PAGE INDIA PRIVATE LIMITED 2013 LONDONDescription: X, 281 PAPERISBN:- 978-0-7494-6810-1
- 658.15
Item type | Current library | Collection | Call number | Status | Date due | Barcode | Item holds | |
---|---|---|---|---|---|---|---|---|
Book | Main Library | FINANCE (CUP 12/SH 1) | 658.15/ MAR/ 19556 (Browse shelf(Opens below)) | Available | 11119556 |
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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