How Business Finance Comes to Life The company’s finances are represented by value markers and value carriers. Using these allow the teams to imitate the circulation of capital during the financial year.

Business Finance Comes to Life

The Scenario Year 1: Focus on Working capital – ”Turning Dead wood into Cash“ Run a year in Apples & Oranges Inc’s business to learn the flow of cash within the organization, then discuss the possible improvements, and see how results can be significantly improved by putting focus on working capital. Before After Accounts receivable Inventory

The Scenario Where are we heading… and how do we get there? Year 2: Going for profitable growth – ”Choose your strategy for growth” In year 2 the competition gets tougher and you have to choose a strategy for growth based on the Ansoff growth matrix. Where are we heading… and how do we get there?

The Scenario Year 2: Focus on cash – “Profit is an opinion. Cash flow is a fact.” Having gone through Year 2 you will have noticed that you almost ran out of cash during the year. Now it’s time to learn more about cash flow and the difference between cash flow and profit. € ¥ £ $

The Scenario Year 3: Many Small Wins – ”a Competition Between the Teams!” You will now learn about eight suggested projects and explore potential for improvements. You then get to determine which levers to prioritize and suggest which projects to go for and experience the effect on you result. Who is the winner? Net Sales Quality Support Functions Productivity Purchase Price

Secure that the learning leads to useful knowledge – that sticks. The Next Steps Activity Link to your own area of responsibility Assess your current performance as a company. Share your conclusions and discuss the way forward: How can you make a difference? Secure that the learning leads to useful knowledge – that sticks.

What’s the difference between operating profit and net profit? Why are they always going on about cash flow… we are making money aren’t we? What’s the difference between operating profit and net profit? Working capital… is it really working? Profitable growth… that is something for the managers to figure out, right? Top-line vs. Bottom-line? Is there a Middle-line…? KPIs who needs them?!? What is a Balance Sheet? Value added services, we don’t have those… do we? Which is more important, to grow or to make money? Business finance… isn’t that why we have a finance department?! What does ROI really mean?