ABC Cars

Forecasting Revenues
 Two countries of operation

Three main types of cars

Management uses Bottom-Up

and Top-Down for 12 month
forecasts

Only Top-Down is applied for

long-term predictions
12 Month Expectations
Company-specific Data Country A Country B
Number of Car Dealerships 451 382
Expected Sales per Dealership 269 312
Sales Breakdown:
Car Type 1 41% 34%
Car Type 2 35% 38%
Car Type 3 24% 28%
Average price Car Type 1 ($000's) 23.4 28.4
Average price Car Type 2 ($000's) 19.8 20.7
Average price Car Type 3 ($000's) 28.9 30.7 12 Months
Dealership commission 25% 30%

Macroeconomic Data Country A Country B

GDP Growth 1.80% 4.30%
2016 2017
Unemployment 3.40% 8.10%
Debt / GDP 45% 55%
Population (in million) 45.3 52.7

Industry Data Country A Country B

Total Car Market Worth Current Year (in billion $) 133.8 103.9
Expected Growth of the Market (12 Months) 3.5% 1.9%
Expected Market Share of ABC 2.4% 3.5%
 10 Year View

Macroeconomic Data Country A Country B

GDP Growth (per year) 1.50% 3.20%
Unemployment 3.40% 6.40%
Debt / GDP 40% 45%
Population (in million) 48.3 55.7

10 Years
2016 2026
Industry Data Country A Country B
Total Car Market Worth (in billion $) 155.3 142.4
Expected Market Share of ABC 3.2% 4.0%
Your Task
Forecast the companys revenues
for the next

12 Months
10 Years

*Use Bottom-Up and Top-Down for the 12

month forecast; Use only
Top-Down for the 10-year prediction