The assignment:
A municipal utility company aimed to pursue growth beyond its home market and required a robust 10-year economic plan as a basis for decision-making and management. The objective was to evaluate entry and growth scenarios in additional markets (e.g., regional expansions) with financial transparency and to design the plan in such a way that it could be updated over time.
The approach:
We developed a driver-based model and structured the calculation around key building blocks such as revenue assumptions, “Cost-to-Acquire” (sales/marketing) and “Cost-to-Serve” (operational fulfilment). We identified and validated the required parameters through workshops, structured questionnaires and external plausibility checks (including fulfilment, procurement and channel assumptions), and translated them into consistent scenarios across the planning horizon. In addition, we refined the model architecture and cost logic (including contribution margin accounting) and made the planning process flexible and easy to update through variables and scenario logic.
The result
A strong, scenario-based economic plan was developed as a key decision-making and management tool, featuring a clear cost structure, insights into profitability and break-even analysis, along with a straightforward management template. This model has become an established, reusable planning logic, updated in practice, and now serves as a reliable foundation for regular planning and management activities.
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Your contact person
Dr. Mathias Bauer
Managing Partner
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