FINANCE ASSIGNMENT
Strategic Analyst role: Read and complete the following in advance of your interview
1
5_85 7_84
In advance of the interview please create three slides on steel, a commodity similar to one you may be asked to analyze on the job
Do your best to answer these questions, one per slide: What have we spent in the past on this category? What are the major costs for suppliers providing us steel? What does the overall market for steel look like? Spend no more than one hour on this.
It is more important that you give thought to these three questions than it is to come up with the “right” answer or to create detailed or sophisticated slides. If you are unsure of how to answer a question or how to obtain the next level of detail, come prepared to discuss those questions.
Bring a printed copy of the three slides to the interview
The following materials are provided
Blank, sample slides to use as a starting point
Excel spreadsheet of spend data
During the interview we will review the materials you prepared in advance, conduct a deeper discussion on that commodity, and ask you questions about your skills and experience as they relate to the job requirements
Candidate Materials
Preliminary
1 October 2015
.
Historical spend on steel parts
2
Blank
Key suppliers
Key parts
Steel Etc is the largest supplier to BAE
Spend and supplier mix in 2013 and 2014 are largely similar
Note: List assumptions or other notes here
Source: Interview data set
7_84 11_85 19_85
10
Over half of spend is on ½” and ¼” stainless steel plate
“Other” plate is largely composed of carbon plate thicker than ¼”
Candidate Materials
1 October 2015
.
Analysis of steel plate supplier’s economics
3
5_84 10_85
Blank
Cost Type C – Brief description of cost and what part it plays in the supplier’s business
Cost Type B – Brief description of cost and what part it plays in the supplier’s business
Cost Type A – Brief description of cost and what part it plays in the supplier’s business
Note: List assumptions or other notes here
Source: List data sources here
Candidate Materials
1 October 2015
.
Steel plate market conditions
4
5_84
Blank
Note: List assumptions or other notes here
Source: List data sources here
Steel and iron prices have been rising
Candidate Materials
1 October 2015
.
0
20
40
60
80
$100M
Spend on steel plate
2013
1/2" Stainless
1/4" Stainless
1/4" Carbon
Other
90
2014
100
0
20
40
60
80
$100M
Spend on steel plate
2013
Industrial
SteelCo
Steel Etc
Discount Steel LLC
90
2014
100
0
20
40
60
80
100%
Steel plate supplier cost structure
Typical costs
Cost Type A
Cost Type B
Cost Type C
0
20
40
60
80
$100
Price per ton
Steel
Iron
201020112012301320142015