Understanding the Financial Impact of Operating Decisions
Created in partnership with: Ahmad Rahnema Alavi
About This Course
Managers make decisions every day that have an impact on the company’s financial performance. Reputable companies that went bankrupt during the financial crisis between 2007 and 2009 might have escaped that fate if managers had seen problems arising soon enough to take corrective actions to preserve the firm’s cash, and ultimately, its solvency.
In this Learning Sprint, you will learn how common management decisions related to inventory, marketing, sales practices, procurement and others can stress company cash flows. With deeper insight into the relationship between Working Capital and Working Capital Requirements, managers will better understand the impact their decisions have on company Profit & Loss (P & L) statements.
Ahmad Rahnema Alavi
Deputy Associated Dean for Faculty, Director of Financial Management Department and holder of the Fuel Freedom Chair for Energy and Social Development at IESE