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Although, the name might imply an academic emphasis, the seminar provides the participants with "real" business skills that can be applied to their everyday work tasks. One of the major skills acquired is the ability to think “concretely” about ROI, and to actually calculate it for all types of investments, for example, investments in new or existing products, marketing and sales programs, new manufacturing equipment, information technology software and systems, etc.
In addition, although, the participants will learn how to interpret and evaluate the balance sheet, income and cash flow statements, the financial focus is not on “debits and credits” or “accounting mechanics.” The emphasis is on understanding financial objectives and analysis techniques.
The seminar’s topics are linked together by two overarching business methodologies:
Value-Based Financial Management Methodology:
A. To provide a return on investment (ROI) to stockholders, management has to continually increase the value of the business, through producing significant profitable annual sales growth, which generates a sufficient level of free cash flow.
Although, profitability is the necessary condition of a business or product, it is not sufficient, because, contrary to conventional business wisdom, profits are not cash. The necessary and sufficient condition of a successful business or product is free cash flow, which is the real measure of generated economic value.
B. In addition, the free cash flow has to be at a sufficient minimum level to cover the weighted average cost of capital, the risk adjusted cost of capital or the opportunity cost of capital. In other words, before a company can generate a satisfactory level of free cash flow to increase the value of the business, the company has to invest capital and achieve a ROI greater than the cost of the capital itself.
Hence, looking upon a business as a collection of investment projects, for example, investments in new or existing products, new manufacturing equipment, sales programs, information technology software and systems, etc., the goal has to be to have every investment project generate or save a significant level of free cash flow, and thereby, achieve a sufficient ROI.
C. To accomplish the above, companies have to measure the correct financial value “drivers,” with the correct “tools.” In addition, the companies have to use the same “tools” to measure all the various types of investment projects, as well as, measuring the business as a whole, and utilize the identical “tools” employed by professional investors, to assist them in making their investment decisions vis-à-vis the company.
Consequently, companies cannot use standard accounting methods to measure ROI, like return on equity (ROE) or return on assets (ROA), which measure substandard value producing activities. Additionally, ROE and ROA cannot be used to measure all the various types of investment projects, and professional investors cannot use them to make successful equity and/or debt investment decisions.
Value-Based Product Marketing and Development Methodology
A. Optimize products and prices between buyers, competitors, and internal financial requirements, using an externally driven development process, that is, 1) identify the buyers' problems, needs, and/or the benefits required by the buyers; 2) determine the value to be delivered to the buyers, with emphasis on incremental value delivered via competitive advantages; 3) set prices based on the value delivered, pricing segments analysis, pricing leverage analysis, pricing strategy and/or the marketing strategy; and 4) determine the product development investment and manufacturing costs that can be justified.
B. Identify the business value creating market segments, and the product line development sequencing, through the development of a strategic product marketing plan, that identifies the market segments, price segments, optimum prices, product configurations, product development investments, manufacturing costs, targeted marketing and sales programs, and unique product positionings.
C. Identify the value delivered to the buyers through price segments identification, pricing leverage analysis, competitive value analysis, and classifying features and benefits based on the value they deliver to the buyers, that is, required, persuasive, and preemptive features and benefits, and detrimental, dissuasive, and preemptively dissuasive features.
Amongst, the specific topics presented are: 1) before performing a detailed evaluation, how to quickly evaluate the market considerations and the business strength considerations for a new product or business opportunity, 2) how to identify the value producing market and price segments for a product, and 3) why you should, and how to calculate the free cash flow, and the return on investment (ROI) generated from a new or existing product investment, a marketing or sales program, an information technology system or a manufacturing automation investment.
On our web site (www.MBAseminar.com), we list the major product and financial questions answered in the seminar. These questions are especially informative in respect to the overall content presented in the program. If you or your people can answer these questions today, don't attend the seminar. However, if you or they cannot answer these questions, please register for one of our sessions.
This seminar has been extremely well received by over 6,000 professionals from large, and small companies. As affirmation, see the seven complimentary letters on our web site (www.MBAseminar.com) from Sony, IBM, Varian, RISE Technology and MDL Information Systems.
In addition, to marketing and financial professionals, the seminar attracts sales, scientific, manufacturing, and engineering managers, who want to deepen their understanding of the subjects covered. It helps them to design and manufacture value-producing products, and to communicate more effectively with their counterparts in the marketing and financial functions.
If you want to improve your or your people’s ability to think as product marketing savvy and financially adroit business people, then please register yourself or them for one of our seminars. We also conduct on-site seminars for numerous companies, including IBM, Sony, Mentor Graphics, and many other large and small companies.
Accordingly, we have priced the seminar to make it cost-effective to instruct groups of people. Consequently, I would be happy to discuss an in-house seminar, either standard or customized, with the associated reduced fee per attendee, versus the fee for the above public seminars (that is, $299.00 for the first day only or $399.00 for both days).
We would also be happy to e-mail you an Adobe Acrobat PDF File, that contains a brochure describing the seminar in detail, background information on the seminar's developer and presenter, complimentary letters from companies like Sony, IBM, Varian, etc., and a registration form. You can also go to our web site (www.MBAseminar.com) to get a detailed description of the seminar or to register.
If you don't have Adobe Acrobat Reader on your PC, we can also e-mail you a Microsoft Word File. (Note: Acrobat Reader is a free program that you can download from www.adobe.com.)
Due to the fact, that we conduct this seminar regularly, you can reschedule a seminar date at anytime, and not forfeit the seminar fee.
We also conduct an all financial version of this seminar called The Return on Investment (ROI) Seminar, and I would be happy to send you an Adobe Acrobat PDF File containing a brochure. You can also go to our web site www.ROIseminar.com for detailed information.
John Allen
Intelligent Resources
106 Pasatiempo Drive
Santa Cruz, CA 95060-1429
Telephone: (831) 425-1839
Facsimile: (831) 425-1840
E-mail: jallen@MBAseminar.com
www.MBAseminar.com
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