Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business
Lesson Topic: the use of financial statements in developing strategies
Learning Objective/s:
  • Describe the four primary financial statements and their relevance to strategic decision‑making.
  • Analyze key financial ratios to assess organisational strengths, weaknesses and strategic options.
  • Apply ratio analysis and budgeting techniques to formulate, evaluate and control business strategies.
  • Interpret financial data to recommend appropriate growth or cost‑leadership actions.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed handouts of financial‑statement extracts and ratio tables
  • Calculator or spreadsheet software
  • Case‑study worksheet (Company X scenario)
 Introduction:
Begin with a short video clip showing how a real company used its accounts to decide between launching a new product or acquiring a rival. Ask learners to recall the four main financial statements they have studied and explain that today they will see how those statements become strategic tools. Success will be measured by students’ ability to calculate and interpret key ratios to justify a strategic recommendation.
Lesson Structure:
  1. Do‑Now (5’) – Quick quiz on the components of the income statement, balance sheet and cash‑flow statement.
  2. Mini‑lecture (10’) – Explain how each statement feeds strategic analysis and introduce five core ratios (GPM, ROCE, Current Ratio, D/E, CCC).
  3. Guided practice (15’) – In pairs, calculate the ratios using the provided data set and discuss what each ratio reveals about the business.
  4. Case‑study analysis (20’) – Groups work through the Company X scenario, complete the worksheet, and decide which growth option is financially preferable.
  5. Strategy formulation activity (10’) – Each group drafts a brief strategic objective linking a target ROCE and cash‑flow requirement.
  6. Plenary & check for understanding (5’) – Teacher summarises the five‑step strategic use of accounting data; students answer an exit‑ticket question on one ratio’s strategic implication.
Conclusion:
Recap how financial statements and ratio analysis underpin every stage of the strategic planning cycle. Collect exit tickets asking learners to state one ratio they would monitor during implementation. For homework, assign students to locate a recent annual report of a publicly listed company, calculate the same five ratios, and write a short paragraph recommending a strategic move based on their findings.