BCG

Task 3

Data Analysis - Modelling

From data to insight.

Here is the background information on your task

Note: please complete the previous task (Data Analysis – Foundations) before commencing this task.

One BCG expert sent some financial data. The market he suggested is at a similar stage of development to Company X’s home market. There are two main operators who form an effective duopoly. Company A launched handset leasing 2 years ago, but its competitor, Company B, did not. This allows us to isolate the impact of handset leasing on profitability.

Elisse hands you a partially completed Excel model and some financial statements from the two companies, and asks you to complete the analysis. 

Within the workbook, Elisse has also added in a guiding sheet for you to follow. If you find yourself stuck, you may want to refer to the sheet for guidance on how to complete the tasks. There is also a list of the technical terms you learned in the previous exercise – in case you need to remind yourself. 

Here is your task

Part A:

Analyse the data from Company A and Company B to determine the impact of leasing handsets on financial performance. State and apply your own assumptions, and identify the metrics you would use to perform a financial forecast for Company X.

Part B:

Apply the metrics and performance impacts you have identified to forecast the upside in terms of the key metrics for Company X. To do this, first assume that Company X will grow at industry average, then assume it will grow at the same rate as Company A, which introduced leasing. Comparing the two forecasts will allow you to calculate the net impact of leasing.

Submit the excel file back to use when you are done. Put it in the folder with all the other task your performed at BCG.

 

Resources to help you with the task

Excel Model & Financial Statements (partially completed)

Hint: Refer to the model answer in section 6 of the previous task (Data Analysis – Foundations) for a list of technical terms.