Video Resource
Welcome to module “Understanding financial statements” where you will discover how to read and analyse key financial documents to make smarter business decisions and track your company’s financial health.
Learning contents, activities and resources
Start by going through this comprehensive PDF to help you get acquainted and broaden your understanding of the module and apply the knowledge gained
Hands-on infographic
Take action towards responsible budgeting/financial decisions to support your entrepreneurial journey
Doing the right things, before doing right the things.
John runs a small company that provides sustainable energy services nationwide. They offer sales and installation of solar energy systems, charge accumulators for domestic electric mobility, and air conditioning and domestic hot water systems based on aerothermal energy. After a few years of the individual residential customer's boom, this segment is reducing its purchases, and they should consider pivoting to other segments such as residential buildings, energy communities, and installations for companies.
CHALLENGE 1: Your P&L when experiencing a demand steady reduction.
Which is the immediate impact of a steady general demand reduction affecting your main target segment?
CHALLENGE 2: Analysing your previous Business Model to check if it will work for the needed market shift.
When changing from Individual residential customers to Residential buildings, energetic communities and Business customers, which building blocks of your business model will be directly affected?
CHALLENGE 3: Differentiating Value Proposals for the new market segments.
How many different Value Proposals will need to manage John for its new market goal?
CHALLENGE 4: Defining new contents for the Business Model Canvas building blocks by value proposal.
Which are the key partners needed for building residences new value proposal/target group?
CHALLENGE 5: How to build up a partial P&L for each value proposal and their specific building blocks contents.
What will determine the need of partial P&Ls by value proposal?
CHALLENGE 6: Consolidating partial value proposal P&L into an integrated one.
Why we need to integrate the different value proposal oriented P&Ls?
CHALLENGE 7: Solving constraints and limitations in the new consolidated P&L
In Johns business when consolidating the P&Ls we observe that they don’t have enough direct sellers to attend the three markets, how will you solve this in the more profitable way, without increase use of working capital?
CHALLENGE 8: Differentiation and integration in the P&L linked KPIs.
How you will balance the different operation in each market and the need of consolidation for a strategic view?
Escape Room
Challenge yourself and your understanding with our digital escape room by reflecting on your prior module knowledge and experience
Test Your Knowledge
Financial Literacy Quiz
Which is the Financial Statement reflecting the company patrimonial situation?
Which is the result of a continuous downshift in Company prices without a proportional COGS reduction?
Where you have to focus on to improve your Gross Margin if prices upshift it is not possible?
Which tool show the financial data affecting a function or a company department?
How can we effectively protect our value proposition from a financial point of view?
Which will be an effective way to spread financial goals among the whole organisation?
Personal Notes
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