Скачать или смотреть Pareto Analysis What McKinsey, BCG and Bain consultants do first with huge XLS spreadsheets

You wonder how Management Consultants handle huge loads of data? Learn how you can apply the 80/20 principle, also known as Pareto analysis or ABC analysis, to huge Excel spreadsheets to keep on top of your data and get the key messages out of your data.
ABC analysis or the 80/20 principle, also known as Pareto analysis, is a fundamental tool for management consulting. This analysis allows managers to identify the most important elements within a data collection. By sorting customers in descending order of revenue, they can conduct an ABC analysis to determine which customers have the highest importance and contribution to the company's success.
To illustrate how this 80/20 principle analysis works, an example would be using a list of 50 customers with revenue figures. The top three customers, the key customers, alone account for a remarkable 88% of the total revenue, showcasing the power of the Pareto analysis. Customer number one holds the highest revenue share at 48%, followed by customer number two with 24% and customer number three with 16%.
The 80/20 principle, or Pareto analysis, further demonstrates that customers below the top five have a much lower impact on the company's overall revenue. So we suggest grouping customers into A, B, and C categories based on the ABC analysis. A customers, typically key customers, have a revenue share higher than 10%. B customers have a share between 1.5% and 10%, while C customers have a share below 1.5%.
By understanding the concentration of revenue among customers using the 80/20 principle, they can allocate resources more effectively, optimize supply chain operations, and analyze market share. Additionally, the Pareto analysis can extend beyond customers to examine supplier concentration and identify key suppliers.
Moreover, the 80/20 principle or Pareto analysis can be applied to various aspects of business operations, such as Excel data analysis, warehousing, and purchasing. In warehousing, the ABC analysis can help identify slow-moving goods and free up working capital by removing them from shelves.
To summarize, the 80/20 principle, also known as ABC or Pareto analysis, is a vital tool for management consulting firms. It provides crucial insights into customer concentration, supplier concentration, and market dynamics, helping managers prioritize resources and make sound strategic decisions, based on the ABC analysis.

#spreadsheet #business #analysis

Gabriel Goldbrain wants you to score a job in a top tier 1, tier 2 or tier 3 strategy consulting firms like McKinsey, BCG, Bain.

The Goldbrain SUCCESS TRAINING
Goldbrain developed the Goldbrain SUCCESS TRAINING. It is a rigorous training programme tailored to aspiring strategy consultants.

Apply for the Goldbrain SUCCESS TRAINING!
Send your CV to: [email protected]

Don’t forget: the Goldbrain SUCCESS TRAINING is free if you fail. You only pay when you score a job at a leading management consulting firm, because we want you to succeed! Check out the details on:
https://www.gabrielgoldbrain.com


Case interview training
Looking for a senior case interview partner? Get case interview training from Goldbrain. Purchase one of Goldbrain’s case interview training packages
Single case interview training session: https://sowl.co/bvj9Fb
Three case interview training sessions: https://sowl.co/WEATU

Timestamps:
00:00 Intro
00:19 Gabriel Goldbrain Success Training
00:40 What is ABC/PARETO Analysis?
00:54 Example: The most important customers
01:42 What you can conclude from an ABC analysis
02:21 Where does the name ABC analysis come from?
03:31 PowerPoint Slide Summary
07:27 Examples of using ABC analysis
08:38 Outro+Video Recommendation

If you liked this video we encourage you to check you:
   • How you can apply funnel analysis to becom...  
   • Why you better are MECE to survive McKinse...  

Follow Goldbrain on Insta:   / gabrielgoldbrain  
Subscribe the Goldbrain Youtube channel:    / @gabrielgoldbrain  

Please note: Goldbrain is independent and not associated in any way with the consulting firms mentioned and discussed in this social media content/video. We received no financing for creating this social media content unless and where we explicitly state otherwise.