Why using sales from the previous year (590) to predict profit and not the sales planning for the upcoming year (501.5)?

Roland Berger Case: Onlinestar RolandBerger
New answer on Jan 24, 2020
1 Answer
1.2 k Views
Anonymous A asked on Jan 24, 2020

(edited)

Overview of answers

Upvotes
  • Upvotes
  • Date ascending
  • Date descending
Best answer
Luca
Expert
Content Creator
replied on Jan 24, 2020
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

Hello,

The reason is simply because the "Share of sales" data are referred to the sales of Y3.

If you eliminate a specificate part of the sales (e.g. products <5€) you can not assume that share of sales of products will be the same.

Does it make sense?

Luca

Was this answer helpful?
Luca gave the best answer

Luca

Content Creator
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached
64
Meetings
3,091
Q&A Upvotes
33
Awards
5.0
19 Reviews
How likely are you to recommend us to a friend or fellow student?
0
1
2
3
4
5
6
7
8
9
10
0 = Not likely
10 = Very likely