What-if tools / find Answers to Strategic Questions
Analysis-one includes powerful “what if”, “goalseek” and scenario analysis capabilities.
What-if tools such as the goalseek tool, help answer the “How do we get there?” question and assist management
to formulate strategies to achieve business targets and avoid the default ‘hit & miss’ approach. Understanding
the sensitivity and impact of key drivers on performance improves the management’s ability to forecast future financial
performance.
The goalseek tool enables management to visualize the sensitivity of key drivers such as price, volume, cost of sales, variable
expenses, inventory days, debtor days and creditor days on business performance. The example below details the mutually
exclusive strategic changes required to achieve a Return on Capital Employed (ROCE) of 16.55%...
