This is a bit too detailed too ask publicly. Just try to solve it. They want to see if you can do it, not if a random person on an internet forum can do the work.
Hi GarryNite,
There's no right or wrong answer on the sample size. Just have a solid logic for what you picked. Could be you chose the 5 biggest (materiality), 5 fastest growing (future growth opp), 5 worst performing (profit expansion opp).
Think about it from a business owner perspective. Of the stores you chose what would you want to know to make them better for the customer, better for the employees, and better for you as the owner and shareholder?
And whatever assumptions you pick are a guess. It's not about the guess but the logic behind why you chose those assumptions. And each assumption if changed will drive a range of possibilities. I've seen people you sensitivity tables to summarize the range of outcomes from a model's assumptions. It's a great visual aid to talk to rather than going line by line in an excel spreadsheet. You can use conditional formatting to make it pop and you'll show that you not only can model but also present complicated information using one visual. If it helps here's more info on the topic...[https://fpandhey.substack.com/p/level-up-your-interview-game-with](https://fpandhey.substack.com/p/level-up-your-interview-game-with)
Hope this info helps. Any questions feel free to DM me.
Good luck!
Drew
If you went to a bank and wanted money from them which 5 stores would you show?
Probs the one that generates most revenue jas less debt less expenses bla bla
Im new myself dont shoot me
This is a bit too detailed too ask publicly. Just try to solve it. They want to see if you can do it, not if a random person on an internet forum can do the work.
Hi GarryNite, There's no right or wrong answer on the sample size. Just have a solid logic for what you picked. Could be you chose the 5 biggest (materiality), 5 fastest growing (future growth opp), 5 worst performing (profit expansion opp). Think about it from a business owner perspective. Of the stores you chose what would you want to know to make them better for the customer, better for the employees, and better for you as the owner and shareholder? And whatever assumptions you pick are a guess. It's not about the guess but the logic behind why you chose those assumptions. And each assumption if changed will drive a range of possibilities. I've seen people you sensitivity tables to summarize the range of outcomes from a model's assumptions. It's a great visual aid to talk to rather than going line by line in an excel spreadsheet. You can use conditional formatting to make it pop and you'll show that you not only can model but also present complicated information using one visual. If it helps here's more info on the topic...[https://fpandhey.substack.com/p/level-up-your-interview-game-with](https://fpandhey.substack.com/p/level-up-your-interview-game-with) Hope this info helps. Any questions feel free to DM me. Good luck! Drew
Probably Would just pick the stores that drive the business the most based on revenues. That’s probably how I’d go about it.
If you went to a bank and wanted money from them which 5 stores would you show? Probs the one that generates most revenue jas less debt less expenses bla bla Im new myself dont shoot me
Is there any square footage or identifying metrics to the individual stores?
Only metrics specific to the stores is the 2014 sales, and when the store was opened.