Compact MBA for Telecoms Companies

Practical tools and techniques for improved strategic, commercial and financial management in the telecommunications sector

Course Overview

The MBA programme is developed specifically for those working in the telecommunications sector. Participants will learn how to use a range of forecasting techniques designed to deal with the uncertainty created by rapid technological change and convergence. Participants will then develop a toolkit of strategic analysis and planning tools with which to analyse their company's industry, environment and competitors as well as models for developing strategic options. The workshop will also develop participant's financial skills so that they can use investment appraisal techniques to evaluate strategic alternatives as well as learning the basic techniques of financial management to ensure the successful execution of their chosen strategy. The course is highly practical and extensive use is made of computer based simulation models, group exercises and case studies. All the techniques are illustrated with worked examples and exercises drawn from the communication sector.

About the Trainer

Graham Friend holds an M.A. and an M.Phil. in Economics from Trinity College, Cambridge. On leaving Cambridge Graham joined PriceWaterhourseCoopers as a Management Consultant where he also qualified as a Chartered Accountant. Graham has over 15 years experience of consulting with a focus in the telecommunications, media and technology sectors. Graham has a wealth of practical experience gained from managing diverse strategic and commercial planning assignments across Western European as well as Africa, the Middle East, the Caribbean, Australia, Singapore, Hong Kong and China. Graham is an expert in strategic, commercial and financial analysis and planning as well as business modelling. In addition to speaking at conferences around the world Graham was asked by The Economist to co-author two books, one on Business Planning and the other on Business Modelling. Graham is a highly experienced business trainer and has a gift for presenting complex commercial issues in a clear, concise and practical manner. Graham delivers training to companies such as Vodafone, Orange and Motorola as well as regulators such as the United Kingdom's Ofcom.

Course benefits

• Learn how to "speak the same language" as strategists, financiers and accountants
• Gain an understanding of the fundamental concepts and tools of strategy and how they apply to the communications sector
• Learn how to analyse the strategies of successful companies within the communication sector and how to develop your own winning strategies
• Explore a range of forecasting techniques designed to tackle the challenges presented by uncertainty
• Learn how to use investment appraisal techniques such as Pay Back, Discounted Cash Flow, Break-Even Analysis and Internal Rates of Return in order to evaluate strategic choices
• Gain an appreciation of the anticipated levels of financial performance required by stakeholders
• Learn how to prepare and present compelling business plans
• Develop the skills to review and analyse management accounts and financial information in order to ensure the successful execution of your company's strategy

Who should attend?

The MBA assumes prior financial, accounting or business school training and so is particularly relevant for

• Non-accounting managers and executives with financial performance responsibilities
• Cost centre managers and budget holders
• Engineers, IT and technical managers
• Sales and marketing managers
• Product development managers
• Operational managers
• Project managers
• Corporate attorneys / legal professionals

For those that already hold a business degree or have financial training the course is relevant for

• Business professionals looking to understand "the big picture"
• Those wanting to refresh their knowledge and skills
• Professionals wishing to gain an insight into the communications market

Prerequisites

The course requires no previous knowledge of finance or accounting or strategic analysis and planning techniques.

MBA Structure and Contents

The MBA programme can be run over three, four or five days and each programme is developed specifically for your organisation. Each Compact MBA is developed based on modules selected from the list below. This approach allows each MBA to focus on the specific needs of the organisation.

Overview of strategic and commercial planning

• Stakeholder analysis and corporate objectives
• USPs, differentiation and sources of sustainable competitive advantage
• Creating shareholder value
• Business planning framework
• Layout and contents of a business plan
• Strategic challenges facing the communication sector

Introduction to financial concepts and analysis

• Overview of the layout and contents of the Profit and Loss, Balance Sheet and Cash Flow Statements
• Definitions of key financial terms
• Profits and profit margins
• Return on capital employed
• Free Cash Flow
• Historic financial performance within the communication sector

Industry and environmental analysis

• PESTEL analysis
• Value chain analysis
• Industry life cycle
• Porter's Five Forces model
• Managing uncertainty in the communications sector

Forecasting Techniques - Part 1

• Understanding the process of forecasting demand and essential forecasting concepts
• Forecasting in real vs. nominal terms
• Determining the potential market demand for a product or service
• Understanding the suitability of different forecasting techniques in particular situations
• How to use the time series method to make a forecast based on trend and seasonality
• How to use explanatory methods, notably regression analysis to make a forecast

Forecasting Techniques - Part 2

• Using the product life cycle and s-shaped growth curves to forecast take-up
• The Bass model of diffusion of innovation to forecast new demand for new services
• Price elasticity of demand in telecoms markets, practical applications
• Price elasticity coefficient estimates
• Empirical evidence of price elasticity of demand for telecoms services
• Demand for mobile internet services, a sample survey: methodology and results

Advanced financial concepts and accounting

• Revision of basic financial concepts from Day One
• Fundamental principles of accounting and account preparation
• Accounting for capital expenditure and fixed assets
• Accruals and prepayments
• Interest, corporation tax and shareholder funds
• The importance of economies of scale and the strategic implications within the communications sector

Financial ratio analysis - part I

• Contribution analysis and profitability margins, e.g. EBITDA margins
• Sources of finance or capital and measures of capital employed
• Expected returns and the Weighted Average Cost of Capital
• Returns on investment including the Return on Capital Employed (ROCE), Equity (ROE) and Net Assets (ROTA)
• Quantifying expected levels of profitability and returns within the communications sector

Financial ratio analysis - part II

• Measures of liquidity and solvency, e.g. Current Ratio, Acid Test, Gearing and Interest Cover
• Investment ratios, e.g. PE Ratios, EBITDA and Sales multiples
• The role of the financial institutions and equity analysts
• Learning from the Dot Com bubble

Typical Ratios, Profitability and Expected Returns in the Telecom Industry

• Evolution of ratios, margins, returns and capital expenditure at different stages of the industry life-cycle • a 20 year historic analysis of the UK mobile industry
• Benchmarks for expected levels of profitability, return, capital expenditure and gearing in the telecoms sector
• Understanding financial analyst's reports, a practical example working through a real analyst's report

Understanding Costs and Increasing Profitability

• Increasing return on investment, an overview
• Different types of costs, including cost of sales, operational expenditure, depreciation and amortisation, weighted average costs of capital (WACC)
• Identifying and costing value chain activities, value add analysis
• Strategies to reduce costs and increase returns
• Overview of regulatory cost accounting and setting interconnect rates

Essential Marketing Concepts

• The marketing strategy development process and understanding markets and customers
• Understanding the suitability of different market research methods
• The benefits of market segmentation and applying segmentation methods and targeting
• The 4 Ps: Adjusting the he elements of the marketing mix
• Developing a value proposition and market positioning

Generating strategic alternatives

• Learning from the experience of other markets
• The TOWS matrix
• The Boston Consulting Group Matrix
• The Ansoff Matrix
• The industry attractiveness screen
• Successful strategies within the communications sector

Investment appraisal - part I

• How companies create shareholder value
• The fundamental principles of investment appraisal
• Pay back analysis, J-curves and peak funding
• Break even analysis
• Typical financial targets in the communication sector

Investment appraisal - part II

• Discounted Cash Flow analysis and Net Present Value
• The risks of relying on terminal values
• The Internal Rate of Return
• Using Excel to calculate the NPV and IRR
• Investment decisions when capital is limited
• Investment appraisal and the challenges of uncertainty

Reviewing management information

• The typical layout of management accounts
• The importance of materiality
• Trend analysis and the use of Excel
• Variance analysis
• Sources of variances

Case study

• Based around current issues in the communication sector
• Draws together the learning from previous sessions
• Allows participants to deploy their new skills in a practical exercise
• Team working and presentation skills tested

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