Capital One Case Workshop — Example Case Recommendation + Move to 15 minute frequency to ~3x the number of buses, but ~4x the revenue... .. but beware of 100% capacity utilization with that strategy + Other ideas for improvement: + Decrease price off-peak and/or run less frequently curing off-peak + Would decrease cost and likely increase utilization + Increase price on-peak + Would increase revenue, with potentially litle downside to # of tickets + Improved marketing to different target audiences during off-peak + Would increase # of tickets and revenue + You do not need to list all factors or all opportunities for improvement; your 2-3 strongest to help avoid rambling Tinie ho ek Pe eT Cue Retail PeteyCapital One Case Workshop — Example Case Profitability Factors Remember + Revenues + Profit = Revenue - Cost + Price per ticket oe Chee + NOT Profit = Revenue + Expenses + Fixed Costs + This concept comes up frequently in our cases + Variable Costs + Marketing Expense + Other + Competition + Think: To increase Profit can we increase =i Gacaral porno Revenue, decrease Cost, or both?Ren eee ec Ler + re pun atl tne tom YC DC pan Freya Sundae, Wy? * 10.00 peol raver NYE OE on ray ane Sundays beeen pe sing one ‘finns staal metocs (Cet Mne),ere CEN ei eats kere 0.000 ta ptt casters + Aepates 10 popes 80% 329 jm i ns Ra, iCerrone eon Nene ee ec Ker Market Research ‘searon the rahe 1c rem pm on Faye ed ‘inane? (cnet aba Dera mest yon eo) LT i i “ponent | I + Wat sterchargeswouldyou Peay sem sateen {impo peta? Ce 8 4ee Renee Mr ec ESy Recommendation + Move to 15 minute requeney o~Bx he umber of buses, but be the raven bt beware of 00% capacity ization with hat strategy + Oar ies for improvement: "Decrease pce peak ana ran ess Requerty dung of pek odd eecreste eos ar ey east zaon + Increase eon pes > Woudnerease revenue, wih potty ti dnnsie to # behets + improved marketing ocr gel asiences ung of-eak + You donot ned tt a factor Fa epportun you 23 suongest o hap avoid vanbeg