BU121 Lecture Notes - Lecture 6: Contingency Plan, Sensitivity Analysis, Cash Cash
Document Summary
No formula - projections based on research and logic - educated guess you can defend market. Market potential, not just #households still doesn"t equal sales forecast are they ready to buy? also consider geographic market operating in. Large number and keep filtering to a logical number *not preferred. What you can do given capacity and marketing plan compare to breakeven - what you have to do. Sensitivity analysis and contingency plan assumption to base sensitivity on: Change in price, change in sale, unexpected demand, cash flow if sales are more rapid. Is the opportunity worthwhile: many companies are financially feasible but return on investment is so low, they might as well invest elsewhere. 1% install satellite radio: % listen to radio, % care about benefits, % would pay price, % adoption rate. If you are selling a technology - how will you cross the chasm and weather the tornado . Must be aware as you build your forces.
