Step 1: Define the Business Objective

• The objective is to determine appropriate salary hikes for employees

based on relevant factors.
Data Modelling: Salary Hike
What-If analysis
• What-If analysis is a powerful tool in Excel used for exploring different
scenarios and understanding how changes in input variables affect
the output or results.
• Its main purpose is to help make informed decisions by simulating
different situations and observing their potential impact
Main functions and tools used for What-If
analysis
• Scenario Manager:
Scenario Manager lets you create and manage different scenarios with varying sets of
input values. This tool is useful when you want to compare multiple scenarios and their
impact on results.

• Goal Seek:
Goal Seek allows you to set a target value for a specific cell by adjusting the value of
another cell. It's particularly useful when you want to achieve a specific outcome.

• Data Tables:
This allows you to see how changes in one input variable can affect the output. It's
useful for performing sensitivity analysis.
Here we have to do what if Analysis
Here Total Revenue is =Price* Quantity (Qty), Total cost is 10% of
Total Revenue, Item Cost= 20 times of Quantity (Qty) and Total Cost =
Transportation Cost + Item Cost and Profit= Total Revenue-Total Cost
Use Scenario Manager in Data section of Excel will give you
various changing scenario’s of profit for different Quantity
values
Click on Add to create various scenarios
Here we have to do what if Analysis
So here we have given a name for Scenario: 200 Qty, cell that we will pick is
quantity cell that is C4 in ur case, so in 2nd figure u can see it wants the scenario
value: 200 provided, so simply add more values here for 300 Qty, 400 Qty, 500
Qty by clicking on Add button.
Adding for 400 Qty
Now u can see all the scenarios that u want r
added into it.
Now click different quantity values or
scenarios to see the change in other values.
Click on Summery to see all the scenarios at
one place.
Goal Seek: My Goal here is to achieve Profit(C9) of $2000 with
respect to Quantity (C4), so set sell will be the Profit cell (C9), To
value is our target value which is 2000 and we will see that with
respect to Quantity cell (C4)
So here we got for Profit of $ 2000 the
Quantity will be 227
Activity: Do goal seek for change in Profit($
4000) wrt to Price.
Data Table:
Data Table: So create a table here of various
profit values for various Quantity.
Now we have to select this newly created table having Qty and
Profit,
Note only select the value cell and don’t select the column
name.
Select the table and then click on Data Table
As in our Data Table we have to give the values of Quantity and that is
arranged in Column wise manner so we will use column input cell and
in that we will select the Quantity (C4) as its value are going to change
and for that I will find the various Profits
Click OK and u will get the Data Table filled
Activity: Create a Data Table for Price Vs
Profit
Next Slides are solution so firstly try by
urself
Solution Step 1:
Step 2:
Step 3:
Solution
Activity 1:Goal Seek: here the Marks of Hindi Subject is not given,
and we need to derive the marks of Hindi by giving different values of
Total Marks using Goal Seek Function.
Solution Activity 1:
Activity-2: Scenario manager: for 3 months,
January, Feb. and March 2023, for the given Data.
Solution Activity 2:In data Section Click on What-If analysis and
choose Scenario Manager and then add a scenario with the name
“Revenue of January”
Add the Values of various cells like raw material,
Making, Packaging, transportation and others.
Add a scenario with the name “Revenue of
Feb.”
Add the Values of Cell for Feb. Month
Add a scenario with the name “Revenue of
March”
Add the Values of Cell for March Month
The Scenario Manager will give you all these 3 Scenario’s
double click on these scenarios to see different values.
You will see the summery report but I need name of cells.
Rename the cell from here.
Find Default case, Best Case, Worst Case for
various sales growth
Generate a Summery report like this.