2016 Deloitte Foundation/FSA Faculty Consortium

Advisory Case/Assignment:

Huskie Motor Corporation: Where do we go from here?

Huskie Motor Corporation (HMC) is automobile manufacturing company with production and sales
throughout the world. HMC has asked your project team to assist in analyzing their performance and
make suggestions to improve their revenue stream and optimize their product line.

Automobile manufacturing and sales is a complex and highly competitive business. The automotive
industry has a broad global sales reach yet only 15 countries produce 88% of the world’s vehicles
(http://marketrealist.com/2015/02/intense-competition-leads-low-profit-margins-automakers/). HMC
is a fairly new and a smaller player in the automotive manufacturing market. However, they have some
very popular brands and high customer satisfaction.

HMC currently offers four brands: Apechete, Jackson, Special, and Tatra. Each brand has several models
and are listed below:

Brand Models Available

Apechete Chare, Island, Pebble, Rack, Sparro, Stork,
Summet, Trido
Jackson Baller, Clock, Core, Crux, Elevator, Fraction, Mud,
Roof, Salsa, Wood
Special Gazelle, Performance, Sprinkles
Tatra Advantage, Blooper, Jespie, Mortimer, Rambler
Contribution Margin and Sales Volume from January – September 2015 are reflected below:
Contribution Margin:

Brand Q1 Q2 Q3 Grand Total

Apechete $ 1,441,796.25 $ 784,707.25 $ 717,039.95 $ 2,943,543.45
Jackson $ 819,042.25 $ 418,069.85 $ 443,079.90 $ 1,680,192.00
Special $ 183,537.70 $ 95,224.50 $ 90,445.90 $ 369,208.10
Tatra $ 738,760.01 $ 522,609.37 $ 924,124.21 $ 2,185,493.59
Grand Total $ 3,183,136.21 $ 1,820,610.97 $ 2,174,689.96 $ 7,178,437.14

Sales Volume:

Brand Q1 Q2 Q3 Grand Total

Apechete 144 75 72 291
Jackson 120 60 60 240
Special 36 17 16 69
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 Tatra 123 104 188 415
Grand Total 423 256 336 1015

HMC is concerned that they have spread themselves too thin by selling in 30 countries. In addition, they
would like to improve the margin on their current models and be sure they are optimizing their product
lines.

To assist you with your analysis HMC has provided you with an Excel spreadsheet that reflects their sales
and costs from January 2015 to September 2015. They have also provided you with their plan data and
their marketing plan data. The worksheet titled “Information” in the file provides additional background
information about the spreadsheet.

Exercise I: Critical Thinking (15 minutes)

Split into groups of 5 people. Meet with your team members and do the following:

 Review the Excel file: Huskie_Motor_Corporation_Student_Version_FSA.

 Review the Automotive Industry Background Information provided in the “Auto Industry
Analysis” folder.
 Your team should discuss the following:
o What is the purpose of this analysis?
o What is the key question, problem, or issue?
o What data will be needed to answer the key question/problem/issue?
o What are the relevant key concepts?
o What assumptions are we making?

Exercise II: Data Analysis (30 minutes)

Your team should answer the following questions using the Tableau file “HMC_Tableau_FSA” and/or the
Excel above.

 Overall Performance Analytics:

o How is HMC performing globally?
o How are various HMC brands performing?
o How are the various sales channels performing?
o What are the most & least profitable models?
 Financial Analytics:
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educational endeavors of a not for profit nature.

Copyright 2016 Deloitte Development LLC. All rights reserved.

 o What is the current contribution cost per model?
o What is the average change in cost per model?
o What is the current contribution margin and sales volume per channel?

 Operations Analytics
o What model options are the top and bottom sellers?
o How many days on the lot are the various models?
 Forecast:
o Sales Volume (Q4 2015 – Q2 2016)
o Contribution Margin (Q4 2015 – Q2 2016)

Exercise III – Presentation: (20 mins)

 Your team should elect a representative to present your answers to Exercises I & II.
 Five teams will be randomly chosen to present their findings.

The right to use this material without explicit written permission is hereby granted to faculty in connection with classroom use and other
educational endeavors of a not for profit nature.

Copyright 2016 Deloitte Development LLC. All rights reserved.