Introduction to Financial Modeling & Strategic Analysis

Understanding Financial Models

Financial modeling is the process of creating a structured mathematical representation of a business, project, or investment using financial data and assumptions. Strategic analysis evaluates an organization's internal capabilities and external environment to support long-term decision-making. Together, they help managers forecast performance, evaluate alternatives, and make informed business decisions.

• Financial models estimate future financial performance.
• Strategic analysis supports long-term planning.
• Both rely on data, assumptions, and sound judgment.
• They improve decision-making under uncertainty.