Table of Contents -- -- Table of Figures -- ACKNOWLEDGMENTS -- INTRODUCTION -- -- CHAPTER 1 - DESCRIPTION OF STRATEGIC PLANNING -- 1. What is a "plan"? -- 2. What differentiates STRATEGIC from TACTICAL? -- 3. The Strategic Business Plan -- CHAPTER 2 - HOW TO MAKE A PLAN IN 12 EASY STEPS -- 1. Establish your Goal -- 2. Define all crucial Difficulties and Opportunities -- 3. Create Job Descriptions -- 4. Sequencing the Tasks -- 5. Define a Time Schedule -- 6. Assemble your first Functional Organization Chart -- 7. Select Staff -- 8. Collect Cost Data to prepare your Budget -- 9. Compose a Financial Forecast -- 10. Establishing Leadership -- 11. Provide clear Employment Contracts -- 12. Establish Controls -- 13. Conclusion -- -- CHAPTER 3 - THE FEASIBILITY STUDY -- 1. Technical Feasibility -- 2. The Market -- 3. Permits and Licenses -- 4. Political Stability -- 5. Availability of Supplies -- 6. The Labor Market -- 7. The Site -- 8. Investment in Plant and Equipment -- 9. The Life of an Asset -- 10. Inventories and Working Capital -- 11. Minimum Cash Balance -- 12. Operating Data -- a. Variable or Direct Production Costs -- b. Production Volume -- c. Fixed Costs -- d. Income Taxes -- e. Internationalization -- CHAPTER 4 - PROFITABILITY AND FEASIBILITY MEASURES -- Viability measures are: -- 1. Definition and Timing of Cash Flow -- EXAMPLE 1 -- 2. Differential Cash Flow -- 3. Pay Back Period -- EXAMPLE 2 -- 4. Discounted Cash Flow Calculation -- EXAMPLE 3 -- = 90.59 -- 5. The Net Present Value (NPV) -- EXAMPLE 4 -- INCREMENTAL CASH FLOW OF A PROJECT -- Using the formula (1 + r)-n -- EXAMPLE 5 -- Alternate 2 -- 6. What discount factor should one use? -- 7. Limitations to the NPV method -- 8. The Internal Rate of Return -- -- EXAMPLE 7 -- Present value of 1 at Compound Interest is 1/(1 + r)-n -- 9. Cash Flow versus Funds Flow.

10. The IRR On Investment (IRROI) -- 11. The IRR On Equity (IRROE) -- 12. Limitations to the IRR methods -- a. No Root -- b. Negative root -- EXAMPLE 9 -- The IRR of the following example is -2.28% -- The discount formula becomes 1/[1 + (-.0228)]-n -- c. Multiple Roots -- EXAMPLE 10 -- -- d. IRR Before and After Taxes -- e. Contiguous and Continuous Discounting -- EXAMPLE 11 -- EXAMPLE 12 -- EXAMPLE 13 -- f. Transactions at the beginning or at the end of a period -- EXAMPLE 14 -- The ROI is 10% -- g. Impact of Duration on Profitability Measures -- CHAPTER 5 - PLANNING WITH INFLATION -- 1. Optimizing Financing Structures without Inflation -- 2. Optimizing Financial Structures with Inflation -- Is Inflation good or bad? -- 3. Exposing the Inflation Problem in Business -- EXAMPLE 15 -- a. A Forecast assuming NO Inflation -- -- b. A Forecast assuming 10% Inflation per year -- Income Statement - 10% Inflation -- -- 4. Common Inadequate Defense Strategies -- 5. The Benefits of Debt Financing -- 6. Strategic Debt / Equity Planning -- -- a. Demonstrating the relation between Borrowing, Inflation, and Asset Life -- The ideal percent of debt financing depends on Inflation, and Asset Life. -- b. Testing the Theory with 2 Replacements in a 30 year Forecast -- EXAMPLE 16 -- If B = the percent to be borrowed, then -- 7. Conclusion -- -- CHAPTER 6 - STRUCTURING A FINANCING PACKAGE -- 1. Feasible Debt Structures -- a. The "curt" Schedule: -- b. The grace period: -- c. Graduated Loan: -- d. Multiple payments per period: -- e. Creative combinations: -- 2. The different Loan Repayment Structures -- a. Interest Only Loan -- b. Amortized Loan -- c. Simple Interest Loan -- 3. The different Interest expenses. -- a. For an Interest Only Loan -- b. For an Amortized Loan -- c. Simple Interest Loan -- d. Interest payments compared.

4. The Combinations of Loan Structure and Interest Expense -- a. For an Interest Only Loan -- b. For an Amortized Loan -- c. For a Simple Interest Loan -- d. The combined costs compare as follows: -- 5. Impact of the Loan Format on the ROE -- a. Influence of the Interest Rate on the ROE -- EXAMPLE 20 -- b. Influence of the Loan Repayment Schedule on the ROE -- 6. Conclusion -- CHAPTER 7 - FUNDING YOUR PROJECT -- 1. Anatomy of a Financing Document -- a. IDENTITY -- b. AUTHORITY TO BORROW -- c. PURPOSE OF THE LOAN - LEGALITY AND LICENSES -- d. CAPACITY TO SERVICE DEBT -- e. EXISTENCE OF ADEQUATE COLLATERAL -- f. POLITICAL ENVIRONMENT -- g. POLICIES -- h. PRODUCT VIABILITY -- i. OPERATING DATA -- j. FINANCIAL DATA -- 2. Conventional Sources of Money -- External Sources of Funds come from Grants, Equity or Loans. -- 3. Additional Sources -- 4. Sources of Collateral -- CHAPTER 8 - THE SENSITIVITY ANALYSIS -- 1. The importance of documentation format -- 2. Maximizing Project visibility by means of format -- 3. Conventional and New formats of Classic Financial Reports -- a. Description of the SMELTER PROJECT'S INPUT DATA -- b. Conventional Format for Financial Reporting -- c. Revised Format for Financial Reporting -- 4. The Financial Synopsis Report -- 5. The Sensitivity Reports -- CHAPTER 9 - CONTROLLING INFORMATION OVERFLOW -- 1. Information becomes "overflow" when it is hard to digest. -- -- 2. What is a Strategic Planning Graph? -- -- 3. How to produce a Strategic Planning Graph -- GRAPH 1 - Example of a Strategic Planning Graph -- GRAPH 2 - How to produce a single Y-axis Graph -- GRAPH 3 - Adding a second Y-axis on your Graph -- GRAPH 4 - Producing a multiple Y-axes Graph -- GRAPH 5 - Producing a multiple curve Graph -- CHAPTER 10 - How to use a S. P. G. -- 1. Reading the Result of simultaneous changes in many assumptions.

GRAPH 6 - An Example of Strategic Target-Planning -- GRAPH 7 - If Flags on the Y-axis are unevenly distributed -- -- GRAPH 8 - If equal and unequal Flags are mixed -- How to read mixed distribution of flags -- -- 2. Manipulating the variables Volume, Price and Cost per unit -- ORIGINAL BASE CASE = V (P - C) -- Select the best suited Y-axis between -- VOLUME PER PERIOD -- UNIT PRICE -- UNIT VARIABLE COST -- INVESTMENT 50,000 -- GRAPH 9 - Reading the Result of such changes -- P = [v (p - c) / V] + C -- How to target with Volume, Revenue and Cost simultaneously -- GRAPH 10 - Targeting with such changes -- -- 3. Debt and Equity valuation -- GRAPH 11 - The limit for a Loan repayment term -- GRAPH 12 - An exercise in understanding Leverage -- 4. Valuing a Business -- 1. The market value of the assets. -- 2. The book value of the business. -- 3. The value of a going concern with an S.P.G. -- -- 5. Calculating the value of a going concern: -- -- RAPH 13 - Valuate a Business using the NPV method -- -- GRAPH 14 - Valuate a Business using the Strategic Planning Graph -- CHAPTER 11 - The Real World and Strategic Planning -- 1. A Fish Cannery -- 2. Port development -- 3. Aqueduct Power Supply -- 4. Uranium Mining Project -- 5. Comparative Study for a major bank -- 6. A Greek Cannery -- 7. Steel Mill -- 8. Hydro-electric Power facility -- 9. Arbitrage Deals -- 10. Pioneering the STRATEGIC PLANNING GRAPH -- -- ABOUT THE AUTHOR.