Question

As a future CEO, what financial model makes the most sense for you to gauge the performance of your projects? How is the one you choose superior to other models? Are there any concerns with the model that you chose?

Answer 1

I would go for Top Down Approach as the financial model as a future CEO rather than the Bottom Up Approach:

Advantages for Top Down Approach/Superior to Other Model (Bottom Up Approach):

1. Focus on understanding the competition & the market size (current)

2. Focus on Value Proposition & Key differentiation for product/services to product/services already present in the market

Drawbacks/Concerns for this model:

1. Market Share Estimation might take 3-5 years which is tedious process

2. Need right positioning with key players and channel partnership at each stage