Modeling Objectives
We can build financial or engineering models for all
business needs. Your model will have the degree of automation appropriate to its
intended use, including user-interactive point-and-click features. Typical
modeling objectives are:
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Financial Model of the Firm
A financial model of your business will present management
information and key financial performance indicators in a concise,
understandable, decision-oriented format. The model will be live, in
other words, you will be able to change various parameters and see
the effect on the outcomes. Typically profitability by product,
major customer, and geographic region are modeled and presented along with
projections for future periods.
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Financial Statement Projection
Project financial statements, typically Income Statement, Balance
Sheet, and Cash Flow Statement based on planned strategic and operational
decisions and forecast investment, revenue and expense streams.
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Sales Forecasting
Forecast sales by important criteria, for example, major
customer, product and month. Forecasting models can be driven by manual
input, or a wide variety of conventional or customized forecasting
algorithms
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Product Cost Characteristics and Analysis
Analyze and evaluate the direct and indirect costs of a product
and evaluate strategies for controlling and/or reducing costs.
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Risk Analysis
Analyze the financial risks inherent in a business strategy. This
can be done by use of manually varied scenarios or with more sophisticated
probabilistic modeling.
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Data Cross-Tabulation Analysis
Perform cross-tabulation analysis of data.
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Data Mining
Extract, combine and otherwise manipulate data and files for
analysis and reporting.
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Profitability Analysis
Analyze the profitability of a business, subsidiary, product line
or individual product, or other business element to evaluate its contribution to
the strategic success of the firm.
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Business Planning
General planning and modeling of business activities, for example
revenue projections.
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Budgeting – Operating and Capital
Model the firm's operations and/or capital spending activities for budgetary
control of expenditures.
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Engineering Models
Specialized models for engineering projects. Examples are
bill-of-materials analysis for cost and/or structure evaluation, and job shop
cost estimating.
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2020
William E. Crisick. All Rights Reserved
Last modified:
03/23/20
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