Case Study
Lariat Profitability Plan
Using the dataset identify how Lariat may move gross profits past the 75 million mark. Use the skills learned of Pivot tables, Excel functions and T-test to visualize and prove your findings. Below are the original files shared in the course
Overview
Lariat made just under 65 million dollars gross in 2018. The Big men upstairs want to increase that to at least 72 million dollars gross next year. It is ambitious but you are tasked with identifying drivers of revenue and a create a plan for next year to accomplish this. Ooo yea and the decision makers want a dashboard so they can get more in-depth insights from the data.
Company
Lariat Rentals (Fictitious Company)
Tools
Excel, PowerPoint
Goal
Increase Gross Revenue to $72,000,000 in 2019
Dates
December 2020 – January 2021
My Approach & Contributions
Using my Excel skills I created different pivot tables and explore the data to better understand the data. Then with that information I created 4 plans to that could achieve the companys goals of 72 million dollars gross in 2019. It all came together in a PowerPoint presentation that would verbally be presented to a mock stakeholder for him to be able to ask quesitons on my findings. Lastly I created a report on my findings for the companys other teams to explore after the presentation.
The Results
Project Summary
The plan to increase revenue to 72 million dollars gross in 2019 was shown to be possible. The ultimate plan was combining all three plans, in a combined strategy and through the predicted outcomes would result in a 74.9 million dollar gross revenue.
There were 3 strategies and then a final strategy combining all 3. The first strategy was targeting cars that are not performing and replacing them with higher value cars. At the time it was seen best to remove 45 of the lowest performing cars and remove them the highest performing cars. After some time I’ve discovered the a more nuanced approach, but the idea remains the same remove low performing cars, that are losing us money and replace them with high-performance cars that are common as well.
The second strategy was to increase the rental rates 5%. This increases gross revenue $3.25 million dollars. Simple and effective strategy.
The third strategy was to re-negotiate insurance rates. A 10% lower quote would result in a $480,000 less of expenses.
Combining these three strategies would increase gross revenue over 10 million dollars and removes $400k in costs, thus increasing the bottom line and reaching the goal of $72 million gross revenue.
Now the decision makers will have to implement the strategy and if we are able to achieve each goal we should be looking to close to a $75 million gross revenue in 2019
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