Financial requirements

In this lesson

1. 0:00 Financial analysis and decision making overview
2. 2:00 Financial objectives and strategy alignment
3. 3:12 Investment decisions and capital allocation
4. 5:04 Financing decisions and capital structure
5. 6:16 Tailoring funding strategy by business unit

About this lesson

You'll explore the key financial objectives that support business strategy—managing risk, maximising return on investment, securing appropriate capital structure, and maintaining strong cash flow—and discover how investment decisions (capital budgeting, asset replacement, mergers and acquisitions, and dividend policy) directly enable strategy delivery. The lesson also covers financing decisions and why a tailored funding strategy is essential. You'll see how the right mix of debt and equity, aligned with your organisation's lifecycle stage and strategic business unit characteristics, minimises cost of capital and ensures adequate liquidity. Importantly, this lesson focuses on the strategic perspective: in SBL, you won't be asked to perform technical calculations, but you will need to assess, evaluate, and challenge financial information presented in case studies—so understanding these concepts is fundamental to your exam success.

Duration: 8m