Financial Modelling

Position :

A motor manufacturer took the decision to expand into the, then, rapidly expanding Far Eastern markets. Several years later the new markets experienced a severe recession impacting new car volumes. Local importers had invested heavily and were rapidly  facing bankruptcy. There was a growing demand for service and parts; an area of the business previously not well exploited.

Objective :

Analyse the available survival options. Provide the tools enabling  local regional staff to optimise survival strategies.

Method :

• Create a financial model of the importer business
• Analyse the financial strength and business efficiency of each  national importer
• Devise an individual financial survival plan for each market
• Arrange a regional conference to communicate the overall strategy to importers
• Devise and present a training programme for local regional staff, reinforcing key areas and introducing the financial modelling software
• Visit each market, and create agreed action plans based on the financial forecasts
•  Monitor the regional follow up activities