Business and Financial Models

by Clive Marsh

Overview

A good business model should describe how an organization creates and delivers value, meaning that financial modelling is a vital tool for business strategy, allowing hypotheses and scenarios to be translated into numbers. 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.
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.
Ideal for both small and large companies, Business and Financial Models also includes coverage of new visual thinking techniques, like Structured Visual Thinking, and how these can be incorporated into conventional business modelling.

Online supporting resources for this book include downloadable figures from the book.

Product Details

ISBN-13:	9780749468279
Publisher:	Kogan Page, Ltd.
Publication date:	03/03/2013
Series:	Strategic Success
Sold by:	Barnes & Noble
Format:	eBook
Pages:	296
File size:	4 MB

About the Author

Clive Marsh has worked for Capgemini, Ernst&Young, IBM UK, Shell and several niche consultancies, and is a member of the Chartered Banker Institute's academic team. He has a Masters Degree in Strategic Financial Management, is a Chartered Banker and Fellow of the Chartered Banker Institute, an Associate Chartered Accountant of the New Zealand Institute of Chartered Accountants and a Fellow of the Chartered Management Institute. A regular contributor to financial and business journals, Clive is the author of a number of books, including Financial Management for Non-Financial Managers (also published by Kogan Page).

Clive Marsh is a Chartered Banker, Fellow of the Chartered Institute of Bankers in Scotland, Associate Chartered Accountant (NZ) and Fellow of the Chartered Management Institute.
His past experience includes key roles as Head of Finance&MIS, Director of Commercial Services, Director of Business Development, Divisional Manager of Corporate Services and Group Taxation and Statutory Accountant.

Clive Marsh has worked for Shell UK, Shell NZ, Mobil, NatWest UK, NatWest NZ, DataBank (BNZ), A&L Girobank, IBM UK, Cap Gemini Ernst&Young, Link ICA, Sussex Coast College, EUK (Credit Agricole) and a number of niche strategy consulting firms. He now works as a coach and author with financial management skills as his main speciality.

Table of Contents

• • Chapter - 00: Introduction;
  • Chapter - 01: Stages in the development of a business and financial model;
  • Chapter - 02: Developing the research question and output definition;
  • Chapter - 03: Visual thinking to develop fundamental questions;
  • Chapter - 04: Input definition;
  • Chapter - 05: Scenario identification;
  • Chapter - 06: Building a simple model;
  • Chapter - 07: Using charts;
  • Chapter - 08: Modelling budgets;
  • Chapter - 09: Sales budgets;
  • Chapter - 10: Production – material, labour and direct overhead budgets;
  • Chapter - 11: Fixed assets and depreciation;
  • Chapter - 12: Managing and modelling cash flow and working capital;
  • Chapter - 13: Investment appraisal models;
  • Chapter - 14: The cost of capital;
  • Chapter - 15: Business valuation models;
  • Chapter - 16: Performance indicators;
  • Chapter - 17: Modelling the company balance sheet, P&L and ratio analysis;
  • Chapter - 18: Financial functions;
  • Chapter - 19: Building a business model;
  • Chapter - 20: Modelling projects;
  • Chapter - 21: Integration, complexity and business models;
  • Chapter - 22: Business models for the green economy

Editorial Reviews

"An excellent book that explains how to visualise and create pertinent and accurate business models within the current economic context. Clive has drawn a straight line from visual thinking and defining the critical questions through to creating useful and relevant financial business models."

Nikki Cole

"Clive Marsh's book demonstrates that he is a practitioner of the art of Financial Management not just an academic. It is a splendid introduction to the subject with lots of good examples which are easy to grasp and apply. It should improve the strategic financial understanding of managers of companies large and small. It deserves to be widely read."

Angus Cater

"A highly valuable, totally practical and fully integrated toolkit that makes essential reading for anyone looking to negotiate the turbulent economic climate... If you want to be guided in using business models to underpin practical strategies to develop all aspects of your business then you need look no further than this great book!"

Phil Ryan

"An excellent book that explains how to visualise and create pertinent and accurate business models within the current economic context. Clive has drawn a straight line from visual thinking and defining the critical questions through to creating useful and relevant financial business models." --Nikki Cole, Council Member, Brunel University

"A highly valuable, totally practical and fully integrated toolkit that makes essential reading for anyone looking to negotiate the turbulent economic climate... If you want to be guided in using business models to underpin practical strategies to develop all aspects of your business then you need look no further than this great book!" --Phil Ryan, MD, The Management Centre, Bangor Business School

"Clive Marsh's book demonstrates that he is a practitioner of the art of Financial Management not just an academic. It is a splendid introduction to the subject with lots of good examples which are easy to grasp and apply. It should improve the strategic financial understanding of managers of companies large and small. It deserves to be widely read." --Angus Cater, Chairman, SFS Group Limited

From the Publisher