Effective Commercial Management Skills

Course overview

The key aim of any commercial manager is to improve the profitability of the organisation, this means not just focusing on the figures. Successful holistic commercial management involves recognition of not just the price and product but also strategic analysis, risk, delivery, strong client and suppliers relationships, and getting the right people on board to deliver the goods.

This 8 module course has been specifically developed to cover every aspect of this multi-faceted role. It provides best practice techniques and skills to allow you to understand how to choose and win the business, the subtleties of each contract, build lasting relationships, manage and mitigate risk and ultimately contribute positively to the bottom line every time.

Who should take this course?

• Commercial directors and managers
• Contract directors and managers
• Business development directors and managers
• Sales and marketing directors and managers
• Commercial engineers
• Procurement and purchasing managers
• Operations
• Project managers

How does this distance learning programme work and what do you get?

• Eight modules, each requiring between 3 to 4 hours study to be completed as you choose
• The course and its modules start at any time to suit you
• Modules may be downloaded to study on your PC or to print hard copies. (You may also opt to receive them printed-and-bound from us.)
• Each module has self-assessment progress questions and model answers
• The course has an optional on-line multiple choice assessment at the end, with a certificate of completion being awarded

What this distance learning course offers you:

It will:

• Increase your confidence when using shared financial information in decision-making
• Enable you to gain competitive advantage by developing mutually profitable relationships
• Empower you to negotiate a win/win deal every time
• Outline key challenges facing every commercial manager and how to overcome them
• Advance your strategic and commercial analysis skills to make profitable decisions
• Allow you to start the course and its module at any time to suit you

Structured to fit into your working day

The course is designed to fit around your current commitments with each module requiring an average study time of 3 to 4 hours. Course materials can be sent to you anywhere in the world and offer the flexibility of studying at work, at home or on the move, while always having access to confidential help and support.

FEATURING – ONLINE FINAL ASSESSMENT

Upon completion of the course there is an OPTIONAL final assessment in the form of an online multiple-choice paper.

Course modules

MODULE 1 – COMMERCIAL AWARENESS

• The importance of profit
• The value of intellectual property
• Using business analysis
• Applicable law
• What is a contract?
• Contract types, terms and formation
• Legal remedies
• Breach and damages
• Product liability
• Contract requirements
• Bringing the contract into effect
• Intentions to purchase and instructions to proceed
• Changing the contract

MODULE 2 – KEY ISSUES IN COMMERCIAL CONTRACTING AND RELATIONSHIPS

• Including the right boilerplate clauses
• Seller and buyer obligations
• Price and payment
• Delivery and the passing of property and risk
• Acceptance, rejection and inspection
• Time schedule for performance
• Cancellation and termination
• Warranties, bonds and guarantees
• Intellectual property rights
• Liabilities and indemnities
• Impact of competition law
• Importance of confidentiality
• Purchasing, procurement, buying and outsourcing
• Partnerships, partnering and joint ventures
• Win/win negotiations

MODULE 3 – STRATEGIC COMMERCIAL ANALYSIS

• Achieving business stability and growth
• Techniques of strategic analysis
• Approaches to market analysis
• Defining business unit strategy
• Competitor profiling
• Directional policy matrix
• Competitive positioning
• Differentiation and price
• Understanding the volume-cost-profit relationship
• The contribution approach
• Product and service pricing
• Cost profiling

MODULE 4 – COMMERCIAL OPTION APPRAISAL

• Tips and tricks of option appraisal
• Force-field analysis
• Stakeholder analysis
• Identifying financial sensitivity and evaluating risk exposure
• Evaluating business development options
• 'AID' analysis
• New business development options
• Key stages in business development
• Vision statement
• Quantum leap approach
• Strategic options
• Organisation structure
• Business development projects

MODULE 5 – PERFORMANCE MEASUREMENT

• Essentials of the profit and loss account
• Essentials of the balance sheet
• Cash flow statement
• Key performance indicators: strategic, financial, operational, City
• Return on investment
• Freehold land and building valuation
• Profit margin on sales
• Asset turnover
• Ratios: stock, debtor, creditor, liquidity, current, quick, gearing, employee
• Comparisons with competitors

MODULE 6 – FINANCIAL ANALYSIS FOR DECISION-MAKING

• Budgets and budgeting control
• Overhead costs and capital expenditure
• Useful techniques for forecasting and reporting
• Effective cash management to ensure liquidity
• Improving profitability
• Product, service and customer profitability
• Practical financial techniques and commercial factors: evaluation, pay-back period, NPV and more
• Essential replacements and legislation requirements
• The management role
• Investment risks and rewards

MODULE 7 – COMMERCIAL RISK MANAGEMENT

• The risk pendulum
• Risk bearing, risk sharing
• Partnership sourcing and contracting
• Exclusion clauses
• Insurance
• Customer characteristics and company culture
• Key contractual milestones
• Residual obligations and risks
• Pricing
• Account management

MODULE 8 – COMMERCIAL MANAGEMENT OF PROJECTS

• Risk management through sensitivity analysis
• Analysis of price and volume changes
• Identify the risky parameters and tie them down
• Schedules and milestones
• Budgets for projects: labour, material, equipment and other costs
• Preparing estimates
• The project plan
• Monitoring a project to success
• Building in quality
• Overcoming problems effectively and without penalty