Financial Planning & Analysis - Project Management, Entrepreneurship & Small Businesses Video Lecture | Entrepreneurship & Small Businesses - B Com

good evening everyone welcome to
financial management my name is Arnold
and filming and today we're going to
discuss all about financial planning and
analysis this is for online presentation
theory all right for our presentation
you have to select the company so I
selected or I chose Philip Morris
International about the company's both
Mars International incorporated is an
American global security sabbatical
company with products sold in over 180
countries outside the United States it
is the most recognized and best-selling
products of the company which is Malboro
their aim to meet the expectations of
adult adult smokers by offering
innovative tobacco or tobacco products
of the highest quality available in
their preferred price category while
generating superior returns for
shareholders they operate with integrity
and are focused on responsibly delivery
long-term sustainable growth their aim
is to reduce the harm caused from
smoking by supporting effective
evidence-based regulation of tobacco
products and thrilled if a deep
investment in developing and assessing
products with the potential to register
with risk of the victor our tobacco
related receipt all right so as you can
see on the on the left side of their
screen that's the log of Philip Morris
International alright so what type of
company is Philip Morris International
it's a public company traded as New York
Stock Exchange p.m. all right so
industry it's a Rico to that our tobacco
founded in 1900 so that was 117 years
ago this is according to origin the
sources Wikipedia headquarters its
headquarters can be found in New York
City area served worldwide excluding in
the energy system
so Philip Morris International once you
is has been operating outside outside
United States key people rule this
Camilleri chairman and Andre talents
sub-bullet which is who is the CEO Chara
cigarettes cigars cough cause occupy
fine cutting rolling tobacco snuff
rolling papers and to its revenues 18
point 106 million that is in 2014
operating income eleven point seven
hundred two billion dollars US dollars
which is also in 2014 net income seven
point six hundred fifty eight billion US
dollars total assets thirty five point
one hundred eighty seven us billion a
billion US dollars total equity twelve
point six to nine billion u.s. dollars
number of employees it has a two
thousand five hundred as of 2014 and its
subsidiaries are some soccer net PMS PC
incorporated Ross men Benson & Hedges
capacitors Philip Morris International
and its website is
www.miamikettlebell.com can find that on
their website so as you can see it has
80,000 plus employees around the world
four hundred plus our research and
development scientists engineers and
technicians working on smoke free
products 180 plus markets where our
products are sold and as you can see the
competitors are Philip Morris
incorporated are following UV symbolized
for symbolizes Universal Corp Alliance
won international Reynolds American
incorporated shaped word Schwitzer
molded
international also Mia group british
american tobacco industry turning points
so Morse international incorporated and
then effectively all right so this are
the products or the famous products of
Philip Morris so as you can see and also
on the on the right part the top 15
internet a international brand so some
of the products of Philip Morris are
considered or are on the top 15 I
considered as the most famous product
that is widely used by light cigarette
smokers so top one is Morrow and then we
have LNM Philip Morris One Tree
Chesterfield Parliament and black so the
top one or the the highest is Navarro
alright so again what we're going to
discuss today is all about financial
planning so what is this financial
planning is what is what it's all about
what is its objective so first we have
to define what financial planning in
financial planning is the task of
determining how in the flesh will afford
achieve its strategic goals and
objectives according to invest appear
financial planning or financial plan is
a comprehensive evaluation of an
investor's current and future financial
state values and currently known
variables to predict future cash flows
asset values and withdrawal withdrawal
plan according to TFP dotnet the
starters of Professional Conduct defines
financial planning as the process of
determining whether and how an
individual can meet life goals through
the proper management of financial
resources so usually a company creates a
financial plan immediately after the
vision and objectives have been set the
financial plan describes each of the
active
these resources equipment and materials
that are needed to achieve this
objectives as well as the timeframes
involved all right so what are the
objectives of financial planning so we
have four here number one determining
capital requirements so this will depend
upon factors like costs of current and
fixed assets proportional expenses and
long-range planning so capital
requirements have to be looked with the
both aspects short term and long term
requirements number two we have to
determine the capital structure so the
capital structure is the composition of
capital the relative kind and proportion
of capital required in the business this
includes decision of death equity ratio
both short term and long term number
three you have framing financial
policies framing financial policy of
regard with regards to cash control
lending bar rings and etc number four
and the last one utilize scarce
resources all right everyone to a
finance manager ensures that this part
financial resources are maximally are
maximally utilized in the best possible
manner at least cost in order to get
maximum returns on investment so that
are the objectives of financial planning
so what is the importance of financial
plan why is it so important why is part
of the financial financial management so
the importance can be outlined as number
one so adequate funds have to be
insurance number two financial planning
helps and ensuring a reasonable balance
between outflow and inflow upon so that
stability is maintained
number three the national planning
ensures that the suppliers the plans are
usually investing in companies which
exercised financial planning
number four financial planning helps in
making growth and expansion programs
which help in long-run survival of the
company number five financial planning
reduces uncertainty with regards to
changing market trends which can be
faced easily through enough one and
number six financial planning helps in
reducing the uncertainties which can be
a hindrance to the growth of the company
leaves helps ensuring the stability and
Pervis profitability in concern so I
think number six we're going to go to
number six today all right so financial
plan intensive process so it has a six
process so the number the first step or
the first process is to determine the
count of current financial situation so
assessments are actions length tuition
from the past balance sheet or audit so
for today I'm going to use the summary
of finance financial ratio the determine
the current for the current financial
situation of Solus Philip Morris
incorporated number two the seventh of
the strength process is to develop your
financial goals so we're going to use
forecasting and put the data of
investment so I'm going to show you the
the forecasted income statement and
balance sheet that I created number
three
identify alternative courses of action
so we're going to use action plan for
net use resources to project that budget
plan or load and then we're going to
evaluate consider RSS which is the
fourth profit and then we're going to
create and implement our financial plan
and the last step is we're going to
review and revise the financial plan so
it's a cycle so the financial process is
a cycle so after reviewing our advising
financial plan it goes back to the Qura
to determine the current financial
situation if if the reviewing and
revising the financial scientist
effective or we meet the the financial
goals of the company
so we're going to move on for the first
step which is determine current
financial situation alright so in the
first step of the financial planning
process we will determine the current
financial situation with the reversal of
income savings living expenses and debts
preparing a list of current assets and
debt analysis our amount spent for
various items
gives it gives a foundation for
financial planning a CV so for today
what I'm going to what I'm going to show
you are is different a summary of
financial ratio that I created which is
part of seven number three okay so lucky
well let's move on so the first one
financial summary financial financial
analysis so the source is Yahoo and both
Google Finance right so as you can see
CH here on the current ratio our ratio
on to the app in in 2015 we have a one
point zero three one point zero two in
2014 and 0.99 so as you can see we have
seen the this is the current ratio
Philip Morris International and then we
also have the industry or the company
uses competitors our ratio so we have
1.0 we wish in the case that it
indicates with the company we have a
slight PE a slight difficulty meeting
its current aggregation so low values
however do not indicate a critical
problem so we have a go one zero zero
which is not really that well and so lot
more international has a good term has a
good long-term prospect it may be able
tomorrow against both prospects meets
its current to meet current obligations
so it went hi hi from 2013 region 0.72
one for you there's three so I think so
forth international is is having a
slight difficulties not a big problem
only a slight difficulty knowing its
meeting experience obligations so we
also have the quick ratio or acid test
for Joseph from 0.41 its what's up
scissors point 48 so indicating that the
company cannot currently fool feedback
its current liabilities it's a bad sign
for investors and for partner for
investors in partnership it's both Mars
international did not do quite well well
for the quick ratio rapid escalation
next one we have financial leverage
ratio so we have debt equity debt to
total assets and total capitalization
so first let's work on the debtor equity
from 2015 we have our two 2.15 which the
Queen wishes which is quite not good
because it decreased from three-point
Pacific's it's equipped 2.15 so the best
general means that a company has been
aggressive in our financing which it's
growth with death so this can result in
volatile earnings as a result of the
additional interest and so we avoid the
death to total assets we have from 0.73
in 2013 and it is interested in
consistent from reserve point 84 to 2014
and then also 2015 we observe point beta
4 which suggests net of British American
Tobacco PLC this progressively becoming
less dependent on debt to burger
business comparing to the Philip Morris
International all right all right ok so
total capitalization which is 0.74 so
this results gained relatively decreased
from 0.87 year 2013 to 0 point
so unlike its industry or competitor
which is elite British British American
Tobacco to be covered this morning which
is 0.6 which is quite low I wish it was
higher than 0.7 seventy-four gained by
silkworms incorporated next one coverage
ratio so the current coverage ratio of
Philip Morris International as you can
see here is 7.54 in the year to 2015 it
decreased from 13 point 89 in the year
2013 as you can see here it's it's
industry or competitive situation is
seven point four to four to five point
six six so the lower the ratio of the
weaker the company's financial strength
is and the higher the companies that
work in that burden and the greater the
possibility of but bankruptcy or default
so all over I see our insurance coverage
ratio means less trainings are available
to meet interest payments and that the
business is more vulnerable to increase
its in interest
okay next one for the activity ratio we
have receivables turnover average
collection period and the street
competitor a primo turnover payable
turnover in date and inventory turnover
and social asset turnover alright so for
example turnover as you can see here we
have a nice quantity 58.81 it's equates
a seven point four three and then each a
increase the line for sixty-five unlike
its in the three year or competitors to
assure wishes 4.34 so the source
internationals where people will turn
over for the years 2015 which is nine
point nine three nine three sixty five
indicates that PMI would squeeze in
collecting of sanded cash analysis from
its customers during an accountant Terry
so the higher the soldier our turnover
the more efficient is the management of
debtors are we more liquid the debtors
are the better the company is in terms
of collecting their accounts receivable
so for the period we have 38 days here
okay
unlike before which is 45 okay and then
49 and then it's settled up so it became
law thirty eighteen so PMO turnover from
8.17 decrease to seven point three seven
and the specific significantly decreased
from distillation performance in 2013 as
you can see here so the ratio measures
the number of times the company pays in
supplier during a specific accounting
period so but looking at the current
ratio it's lower sure signifies that PMI
is as low in painting is the player so
they're equal seventeen it's it's pretty
it shows that PMI is where it's most
famous designer so so from 45 which is
the fastest one is equation 215 which
indicates
low payment alright so inventory
turnover PMI inventory turnover ratio
for the year 2015 as you can see here
1.07 inventory turnover ratio determines
the ability of a company to manage their
inventory levels it measures the
percentage of inventory the company
curbs currently have on hand to support
the current amount of revenue a higher
inventory turnover means the company has
life inventory therefore the company
spent less money on storage write down
and obsolete inventory if the inventory
is too light so if the inventory is too
light it may affect sales because the
company may not have enough to meet the
demand
alright so as you can see here for the
social asset turnover from 0.82 is
decreased to 0.79
in 2015 which indicates that the
business should either utilize its
assets in a more efficient manner or
just you know sell them alright so for
profitability ratio we have gross profit
margins less profit margin return on
investment return on equity so everyone
for existe for this for this financial
ratio analysis we're going to focus on
PMI and then its comparison to the
industry or competitors ratio but for my
explanation I'm going to focus more on
on p.m. Isis we're going to create the
financial planning for this company
right so from our gross profit margin we
have firms are five six or seven if
decrease to 0.65 so this shows letras
profit margin gross profits exceeding
production cost so gross profit margin
is a good indication of how a person
a company is at the most consummate a
fundamental level how efficiently a
company uses its resources materials and
rivers so the higher the percentage the
more the company returned routines on
each dollar of sales to service its
other costs and obligation so the
venerdi companies sought to control
costs however versus lights and
decreased for a slight increase in
persons each year so this is 65 percent
off for the gross profit margin so I
just multiply this by 100 percent to
make it on in decimal unlike unlike its
industry or can better this ratio from
zero instead of 7850 Queen to 0.75 so
however if it's quite higher than the
gross profit margin earned by PMI okay
for the net profit margin we have found
0.18 it's decreased again from your
point strength 23 so net profit margin
is a key way of working for
profitability it is very useful when
comparing companies in similar
industries so a higher my math profit
margin means that the company is more
efficient in converting sales into
actual profit
so if you look at the case of PMS net
profit margin here it's relatively
decreased from 2013 to 2015 which
indicates lost PMI is having
difficulties training sales into profit
so okay so return on investment ROI so
we have 0.22
your point blank so our which what is a
return on investment so ROI measures how
effectively the first use of its capital
to generate profits so the higher the
ROI develop so however by looking at
p.m. is where performance within three
years it's relatively decreased meaning
that the in
and gains compared unfavorably
investment cost from 0.33 to zero
internet however is quite higher than
its industry representatives to ratio
from reduced by 17 is 0.14 all right so
we have the last one return on equity so
the Philip Morris International to
return on equity for Gerry 2015 in 0.52
which is half from 2013 so this result
is still desirable however not only that
some factors contribute to these so the
higher the ro e or return on equity but
a higher your artery does not
necessarily mean better financial
performance with the company okay so the
hierarchy can be the result of high
financial leverage but too high
financial leverage is dangerous for a
company solvency so if I think if for me
it's good that it decreased from one
point fourteen wishes which is okay
which is a good indication to 0.52 which
is not that critical or it does is it
doesn't mean that it's it will endanger
or compromise the company all right okay
if the next process is to develop our
our financial goals or develop healthy
mental goals so you should periodically
or analyze your financial value symbols
exist involves identifying how you feel
about the money and why you feel that
way so the purpose of this analysis of
two different shape their needs from
year one so specific financial goals are
vile financial planning so others can
suggest financial goals for you however
you must decide which goals to pursue so
your financial goals can range from
spending all their current current and
come to developing an extensive
statement and investment program for
your picture for future financial
so after after viewing the dinner of
financial ratio analysis so based on
that we are going to create now our
financial books a week we must make sure
that our financial goals are realistic
so assuming that I am the owner or a
financial financial financial specialist
so we're gonna show an analyst so we're
going to create financial goals so as
you can see here we're going to use
forecasted income statement so this is
my financial goals for the income
statement so number one we have
certified first out percent increase in
total revenue extending the total
revenue earned this past few years as
you can see here above so our revenue
it's in 2015 six million seven hundred
ninety four results are thousands and
then a forecast of circa hundred thirty
three million four hundred ninety two
thousand fifty and then a fifty percent
assuming expression decreasing properly
the firm's limited staff optimistic
North America and for that sorry so
that's nine million three hundred fifty
five thousand it's a fifty percent is
Chris of it so it will become send ten
million seven hundred fifty nine
thousand point seventy five and then we
have seven thousand seven hundred thirty
one increase for it operating expense so
that will be one sound 1 million eight
hundred forty five thousand point
twenty-five quarterly for selling in
general admin so we have here is I hear
seven million that we have
in 1,000 we have 35 quarterly for the
depreciation the 34 been sport that will
be 100 100 so 100 million and then fix
into place to eat quarterly for initial
expense so such a sensitive point 50
cents worth so that will be turn the 60
million okay
I'm sorry that is 250 thousand I'm sorry
so that is 100 thousand and then 250
thousand all right and then there will
be a temperature decrease in interest
rate interest expense so you have here
16 points answer them assume of assuming
that we calculated the cents percent
increase of it and then income taxes
then assumed to be the same last year
and then income tax expense so we have
we have 100 point eighty and then
interest in that success will be 100
point India so so if we're going to sum
sum it up so 10,000 point 10 million for
769 thousand point 75 plus seven seven
seven million three hundred eighty one
plus one hundred thousand plus 250 so
we're going to have 18 million five
hundred thousand point 75
alright and then assuming that minority
is a minority interest is one of its
negative 145 so we have here amenities
145 thousand and one hundred supports
$105 for hit X 18 at elite number seven
assuming that we have 15,000 for the
preferred the event which is higher than
the previous year from
we have zero for that one and then
assuming that for EPS we have our the
last quarter which is 1 so we have third
one which is which is not shown our
income statement however of the major
part or the major what we're focusing
here is the increase in total revenue
and increase in cost revenue and what
will happen to that and also the
decrease in interest expense okay so we
also have our financial goals so we
created the forecasted forecast and
balance sheet so number one we have a
certified increase in cash and
equivalents exciting capturing for four
years so we have here for cash
equivalents we have seen three million
four hundred seventeen thousand yes
dollars so we are going to calculate
twenty five percent increases that so
we're going to have formulas turn
seventy one point twenty five so going
to 1045 we're going to ten increase 10%
increase in accounts receivable no
increase in inventory to avoid future
risk no prepaid expenses assumed to be a
number five number five I think to be
less of the same last class here so
we're going to omit that number six ten
percent increase for property plant
equipment increase efficiency so you
will see that here on the property flags
with Mentos across so we increase of 10%
and then twenty percent decrease in
amount owed to creditors
okay so that that will be in the
accumulated depreciation that can be
seen in accumulated depreciation and
answer we're going to calculate the
total assets so from thirty three
million and
so we have now our total assets words
for the Year 2015 is 36 million 264
points of difference there are 64
thousand 475 alright so there will be
insured 10% increase in long-term debt
so our debt roll goes have is going to
increase by 10% and also important
activities in retained earnings so
long-term debt so we owed we owed we
owed money from our creditors so we're
going to use that money for us for the
example for the 10% increase for a 40
expansion of our property plans or
upgrades plant equipment to increase
increase efficiency so we go we're going
to borrow money assuming this we're
going to borrow money okay so after
after after creating financial goals now
we're going to move on with practices of
Teresa's exhibition identify alternative
courses of fashion and the next one is a
gallery and then we're going to
implement a financial plan and more
monitor internationally so we're going
to want to charge that by revising and
reviewing by the Financial Field so the
course of action what I said earlier so
were we were mainly focusing on
increasing our revenue decrease in
interest defense and increase in
gossip little all right so for what
identifying the course of action so we
have number one discreet your revenue so
we have how are we going to do that how
are you how are we going to fill fail or
which reach that specific provision to
increase our revenue by how many percent
was that again 30 per person so how are
you going to do that we have before five
course of action for one increase your
marketing so an obvious way to encourage
yourself is the mister with our
marketing so PMI should conduct
marketplace research to learn which
methods speak to their target audience
so run run ads and promotions
consumption location and check the
results before spending the entire
budget for this one so incorporate some
way to monitor marketing communications
such as using coupons electronic codes
or website traffic statistics so that is
for increasing the market and number two
we have to review our pricing strategy
so it's not if P my product or services
percentages based special attention to
our present values find out what
competition is charging and rate or
lower p.m. ice prices based on your
goals so lowering the prices can
increase revenues to make up for lower
margin you're raising rated p.m. ice the
products project can create a higher
perceived value in the
consumers and increased your margin so
raising the prices can also increase the
revenues without increasing sales also
so we have numbers to re-expand
a distribution channel so changing where
P up PMI sells our product can
significantly boost their sales and
revenues with out of our training period
they are marketing our projects or
perform a careful study of the effects
of using online selling directly also
similar retailers distributors and
outside sales reps to project how each
method can affect their cell volume
stress of profit margins and so little
relative so in some cases new
distribution channels required marketing
support we have numbers more diversify
or other diversify offering
so if PMI is a mature company it might
be time to add new products or services
to put 8 exponential growth so if they
feel saturated the market to the
marketplace determining the products
your target customers live that you're
not selling and then that you think that
you can a PMI can make and market
profitable profitably so they might need
to fold all products they might need to
replace all products with new ones so
this might result in decrease in sales
but higher revenues if your placements
are as a higher price so that's another
option and then we have the number the
last option with witches develop
relationships so the more people they
can get me promote their product or
service the more filled in reverie uses
they will have so we'll look for
business that don't compete with you but
which have the same target customers
and developed cross promotions for
example if they say they sell sports
apparel sponsor golf and tennis
structures instructors and youth would
purchase career and promote your life so
partnering with charities to get them to
promote it to your supporters use social
media programs to live to build the
following generated less satisfied
person so I will be assuming that p.m. I
will will use an innovative and
innovative way innovative way of
connecting or developing relationships
with their target customers with regard
to difference all right and then we have
number we have a second delicious
increase in cost of goods sold so first
of all cost of goods sold is the
accumulated total of all cost used to
create a product or service which it
will have to be sold so this cost fall
into the general subcategories of direct
labor materials and our handsome and in
a service visit the cost of goods sold
is considered to be a labor payroll
taxes and benefits of most people to
generate the billable hours and in a
retail or wholesale business the cost of
goods sold is likely to be impression
dyes that what's bought from a
manufacturer so we have here increasing
his results as I aside I stated here so
I was increase in the cost of goods sold
countable so really just rising prices a
rise in prices for supplies even though
this was included in my financial goals
so assuming that there is an increase in
resources by contrast have our notes
improvements in constant roles
productivity or adaptation of new
technology can bring the co-chief
resident stationary so if we are going
to increase on arriving it of course it
will affect increases of goods also it
is it because the century that is the
total cost used to for even create a
product or service which has been sold
so if we're going to increase and
increase our revenue we have to risk
also our cost of crystal so okay so next
one decrease in interest expense so
interest expense on the income statement
represents the cost of borrowing money
from bad bond investors and other
sources in the short term working
capital means as property for a property
planned equipment to the balance sheet
of our competitors our increase in
inventory so how are we don't decrease
that so for visit where our asset
incentive intensive and increase in
interest rates can be a major Henry so
Henry Lynch problem so reducing earnings
the same way they benefit banks and
insurance companies so the primary
defense of a firm firms management is to
lock in that maturities as far into the
future as possible so that they can
continue to pay the lowest imagine of
imaginable interest rate so this is our
so this is p.m. ice action in order for
them to decrease the interest expense so
there will be increase in revenues and
then we're going to borrow money since
we're going to because our targeted
interest and we're ever near so how are
we going to do that so we have to create
more products and we're going to exert
more effort so we're going to acquire
Marshall risks with that so we're going
borrow some money just in case just in
case of you needing it so how are you
going to make three steps so we have to
lock in that maturity as far into the
future and ASAP so that we can speak to
the lowest and any imaginable researcher
so as you can see the financial goals
that I created and the course of action
it's a quite connected to each other
okay so part for number three for a
course of action we also are going to
have a budget plan for them
so I created here a simple budget plan
assuming that this piece philip morris
internet incorporated is going to use
this budget plan so as you can see we
have three general in general and
administrative expenses and marketing
expenses
or we have hearing items and then the
description and then the year and map
the year that we're going to acquire or
use it and then also have this
corresponding amount so we have also
automobile expenses and then technology
expenses and other expenses we also
included included it here so total
expense so seven seven million seven
hundred thirty one thousand which can be
found in our income statement so as you
can see here we have seven million we
were going to sum the sum up the total
total of reselling horse a general
administrative expenses so i made the
breakdown and then we're going to add
the other expenses which is the
organization and then the unusual
expansion as included
here on this part and this part so the
total expense only seven million seven
hundred thirty one thousand and then
we're going to have a project which is
factory expansion for the year 2016
amounting to three million dollars three
million u.s. dollars
okay so budget plan is also part of a
financial planning okay so we are going
to have a breakdown of with the factor
especially over a month into thirty
million dollars using the keypad okay so
what is capex okay packs or capital
expenditure are formed used by a company
to acquire or upgrade physical assets
such as property industrial buildings or
equipment it is often used to undertake
new projects our investments in life are
by difference as I included here in my
budget plan so we have here a project or
an upgrade which is a factor expression
which is 3 min thirty million dollars
and then we're going to have a breakdown
or we are going to have the expenses
that is going to be used for a defector
expansion so we have here for the
building expenses for the building so
those $800,000 salary where the traps
and benefits or the expansion we have
here $750,000 and then for the supplies
and equipment we have here it's 1
million two hundred twenty-five thousand
dollars and then start of transport the
subtotal is two hundred twenty five
thousand so we also have there we also
included those are T subscript
description of each of each of each item
I'm sorry this is the description that
year and then we also have the quantity
how many do we need how are how many
how much do we need and then the cost
per hour per quantity and then we
calculated the total so the total
project cost in a million a year so it
is very nonlinear coefficient here shown
in our budget plan as we also have the
operating expense expense expenditure
answer which is the opposite of came
back so if capex are funded by the
company for an upgrade operational
expenditure are effects on the other
hand if the money a company spent on
ongoing day-to-day basis in order to run
a business or assess them so I included
here for example for the current year
December 31 2016 for the income that is
thirty three million four hundred ninety
two thousand fifty so I included all
other all the expanders all the values
here in in my income statement so as you
can see here is the next rocket will be
thirteen million nine hundred eighty
three thousand five seven three the
total expenses on the other hand which
is fourteen million nine hundred ninety
one point seven five is the results from
our income statement sent here so as you
can see the operating income is fourteen
thousand nine hundred ninety one 1401
and 3990 1025 and we have the breakdown
here using the operating expenditure so
just to be clear
where did fourteen million nine hundred
ninety one point seven five missions
operating expenses interest so then
there's the breakdown
okay so next course of action will be
shown in the contingency plan which I
created for P online so assuming that
complete this contingency plan will be
least likely Emma so what does the
contingency plan so when it's a course
of action designed to help an
organization respond effectively the
significance to share event or situation
that may or might or may not happen so a
contingency plan is sometimes referred
to us as Plan B because it can be also
used as an alternative for action
expected results field to materialize so
contingency planning is a component of
business continuity disaster recovery
and risk management so restoring
operations is under disaster recovery so
I'll let assume that something will
happen or just in case that something
happens to the factory expansion or our
to the building that was currently
existing for operation so we come it
might be knocked down by natural
disasters such as flood which is our
first event so our priority is very high
so we have budget period which is 1
million and then the second one is
factory damages caused by fire which is
also a high priority and we also have
this corresponding budget which is 850
thousand US dollars so the total planned
costs for our contingency plan is
1,850,000
okay all right so after after the course
of action so we're going to evaluate
that evaluate and implement our
financial plan now how are we going to
do that so we have options here possible
adult reading that lessons can be as
follows so the first one is the network
so one of the main evaluations of the
financial department conducts is an
assessment of company's network which is
highlighted in the company's annual
report with the hopes of attracting
potential investors and stockholders the
net worth often business is the total
sum of the liabilities constructed from
the oldest as values of the difference
if the company has a negative or it due
to outstanding banking laws and unpaid
taxes the financial evaluation may lead
to endless to create a plan to lower the
liability and increase the assets so we
have first networks for evaluating our a
financial plan so we have number two
wishes monthly expense budgets so a
business is the monthly operational
budget that shows how much the
difference as an income and how much it
has inexpensive so a financial
evaluation of the company can include
analyzing the monthly budget to see how
the business is spending money so to
earn the profit the company must spend
less than its earnings and as a
marketing process for one financial
evaluation technique is to add up
everything the company is responding on
a monthly basis and compare it to the
income or financial planning and
adjustments may be neither
as a negative income each month so we
can show that the monthly operational
budget in quarterly in average size in
everything a financial site whether it
is legal financial finance so we're just
going to select the the companies that
were productive our business plan and
then check the expenses or the
operational budget in each quarter okay
and then we also have market growth and
potential so the financial standing of a
company can be improved by changing the
companies approach the market so
financial financial analyst may spend
time analyzing the market in terms of
its growth potential for a particular
product or service the business offers
if the company already has many direct
competitors on the market the financial
analyst meet the earnings potential
if the company takes the prize
development or service in a slightly
different direction so this type of
financial evaluation technique is a
pre-planning technique okay all right so
next one we're going to implement the
action the four sections okay so how are
we going to do that one implementing a
financial plan so we're finishes all
awaiting it so you will probably need to
rely on expertise of a specialist so we
the firm researcher is going to evaluate
and implement that financial plan on its
own so it's going to need help from
these specialists so we have here
professionals that can help help draft
legal documents find the right service
or they need and help leverage a
specific program or equation so we have
CPA for that insurance and rope
low current services and estate planning
lawyers so if our that we're going to
implement financial our financials and
them you are going to be seeking help
from specialists okay next one the last
process so we have a reviewing and
revising financial plan so how are we
going to do that alright so changing the
financial plan too often will be as bad
as not having a financial plan at all so
then again there is no ideal sixth
period after we shore deal with a plan
can be recommended so it is up to that
it's up to the firm set asides and how
often to review the plan so every six
months are up up to different for every
two years or every five years right so
in the case of PMI so we have asked we
have the forecast business income
statement which is for 2016 so it would
be better if our zone certified set or
review it every six months so the
factors that will guide you regarding
how often you should go here plan are so
we have financial products here so the
type of financial products that you have
invested in so if there are products
that are insuring at short intervals
then you may have to reduce your plan
and then we also have the growth goals
so it is the type of goals that you have
set so if you have many short-term
growth a goal as each goal is achieved
interviewer a financial planner also we
have the personal factors so it's the
number of your dependent increases or
decreases we need to hear your plan as
well so if your income increases or
decreases you need to reviewer plan and
so on and so forth so this are the
factors or that triggers that we need to
review on our financial plan for
financial products are going
we also have our personal factors okay
and then we also an hour we're going to
write our financial planner how are we
going to be to do that so the site is
all those that you have sold we have set
are so relevant
so have you lost interest in achieving
and of them so if yes so we need to row
button and then yes no then we have to
stick with our goal and then we can also
add some fresh goals as ever that we
want to so we have to revise for
financial goals okay number two is the
decide if your time frame that you set
for the goals are so same or you have
previously inside so we have set that
for - for the whole 2016 so if that
exits up exit the time axis the year so
we have to change our financial plan
again and then are the financial
instruments that you choose to meet your
goals a going as per plan so if our
financial instruments visit a help or
very not folks are not but should be
team that well so we have to we have to
revise against our financial alright so
how are we going to reconstruct our
financial plan so modify the flaw the
plan the financial plan involves over
one so the linking goals that you have
already achieved or do not wish to
achieve anymore governor's plan it also
involves adding fresh doses alright and
we have number two if XP to the time as
what I've said a while ago after
reviewing the financial plan so we have
to change it if it's necessary to go
from 2015
succeeds 2050 or a month or six months
we have to add more to that okay and the
number and the last want list investing
and this investing in financial
instruments is necessary okay so there
you have the three perform all the six
process or Dafina of financial planning
process so let us review again so the
first process is determined current
financial situation so what we did is we
use the financial ratio analysis to
analyze the current financial situation
of those Philip Morris and Trump
incorporated the second step for the
second process is we develop our
financial goals using forecasted income
statement and forecast the balance sheet
okay and the third process is to
identify alternative courses of actions
and and each financial goal has its own
action and and we must make sure that
each of this action will be performed in
order for us to achieve our our goals
okay so we I already explained that as
well number four evaluate assess and
implement our financial plan so we also
have our evaluating methods and also who
are we going to stick sequence is in
order for us implementing before
implementing our financial plan so we
have professionals for that and then the
last process which is review and revise
the financial plan we also have the
methods and also the factors affecting
affecting the financial plan so it
answers the question why are we going to
work
once the financial center are over are
they're going to reach future changes
okay so that's the end of my
presentation all the on the financial
ratio analysis is summary and alternate
effects and effects are uploaded on the
Aimee portala okay I hope that you
understand my frustration
again this is Arnold M filament taking
Masters in Business Administration have
a great night everyone
why