2014
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How many words are there in the daily edition of The Times? How many songs are stored on iPods in the UK? How many spikes
are there on the back of a hedgehog? These and other provocative questions await you, in preparation for your interview with
Oliver Wyman.
FOOTBALL
Inanaverageweek,domorepeopleplayfootball,orwatchafootballmatch?
Morepeopleplayfootballthanwatchafootballmatch.
Thekeytoapproachingmarketsizingtypequestionsis:tostartbyclarifyingthequestionthentoidentifyanyassumptionsyoucanmaketosimplify
theproblemnexttobreakdowntheproblemlogically,beforefinallygettingintothedetailofthenumbers.Interviewerswillbeimpressedwithpeople
whocanapproachaproblemconceptually,andalsowhocanfindwaysofgettingtoaroughlyrightor"80/20"versionofthetruthquickly,whichcan
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berefinedlater.
Startbyraisinganyquestionsyouhavetoclarifytheparametersoftheanalysis.Inthiscase,youmightwanttoconfirmthat"watchingamatch"
meanswatchingamatchinperson,notonTVandthat"playinginamatch"meansplayinginanorganizedmannerwith2fullteamsandadefined
pitch,ratherthanakickaboutwithfriendsinthelocalpark,orwithyourchildreninthegarden.Footballcouldinclude5asideaswellasfullXIs,but
doesnotincludenonstandardfootball,e.g.EtonFivesorothervariants.
Therearenormallysomesimplifyingassumptionstomakeupfront
andyoushouldalwayslaytheseouttotheinterviewerandconfirms/heis
happywiththem,beforeproceeding.Theassumptionsinthisexamplecouldbe:
AssumewearetalkingaboutpeopleinEngland
andthattheconclusionforEnglandwillbethesameasfortherestoftheU.K,asthereisno
structuralreasontobelievetheothernationsbehavedifferently
Assumewearetalkingaboutdistinctindividualsrather>thanplayedoccasions
sopeopleplaying>onceaweek>orwatching>onceaweek
doesnotcount
Assumeyouonlyneedtoprovethatthenumberplayingisgreater/lessthanthenumberwatching
ratherthantheabsolutenumbersinvolved
ineach.
Onceyou'veclarifiedthescopeandagreedyoursimplifyingassumptions,youcanstartlayingoutalogicalstructuretobreakingdowntheproblem.
Forthisquestion,oneapproachwouldbetostartbylistingoutallthedifferentplayingandwatching"occasions".Thisallowsyoutoshowyour
interviewerthatyou'veconsideredtheproblemasawhole,ratherthandivingdownaparticularlineofargument
andalsoallowsthemtoalertyou
toanythingyou'vemissed.Don'tbeafraidtouseapieceofpapertowritethesedown.
Forexample,anoccasionlistmightlooklike:
Children
SchoolPElessons
Interschoolmatches
Otherchildren'smatches(countyorotherlocalleagues)
Adults
Adultamateur:5aside,localSundayleagues,companyteamsetc
Adultprofessional:PremierLeagueetc.
Onceyoulaidouttheoccasions,youshouldthenprioritisewhichonestoanalyse,inthiscase,basedon:
a).Doyoubelievethenumbersofplayersvsspectatorswillbeasymmetric,ordotheplayersandspectatorscanceleachotherout?Ifcancelingout,
youcanignoretheoccasion,forthepurposesoftheanalysis(remember,youdon'tneedtoknowhowmany,justmoreorless)
b).Whichoccasionscontributethemosttototalplayerorspectatornumbers:youshouldalwaysfocusyoureffortsonthe"bigticket"itemswhichwill
havethemostimpactonthefinalsolution.
A"prioritizationmatrix"mightlooklike:
Thelogicbehindthisprioritizationisasfollows:
Mostchildren(especiallyboys)willplayfootballatschool,buttherearerarelyanynonplayingspectatorsotherthanthePEteacher
Achildplayinginamatch(schoolorotherleague)willonaveragebring1parentorotherfriendtowatch
sothenumberplayingandthenumber
watchingwillcancelout
Practicallynoonewatchesadultsplayamateurfootballonaregularbasis
Professional,i.e.League,footballplayersareasmallproportionofalladultsplayingfootball
andcertainlyinproportiontothenumberof
spectators
Thisleavesuswithtwooccasionsinfavourofplayers
SchoolPE(significant)andAdultAmateur(unknown)andoneoccasioninfavourof
spectators
AdultProfessional(significant).Therefore,ifyoucanprovethatSchoolPEisgreaterthanAdultProfessional,youcananswerthe
question,withoutneedingtoworkoutthenumberofAdultAmateurplayers(currentlyunknown).First,startbyworkingouthowmanychildrenplay
footballinschool
a)HowmanyschoolagechildrenarethereinEngland?
Englishpopulation=50m(youwouldbeexpectedtoknowthis/knowthatthetotalUKpopulationisaround60m,andmostofthisisinEngland)
Yearsofschoolplayingregularmatches=9
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(Ages7
16,asmostdon'tstartPEintheirfirstfewyearsatschool,andtendtostopplayinginSixthForm,orleaveschool)
Therefore,totalchildren=2m/3*9=2m*3=6m
Thereareactually7.5mchildreninschoolintheUK,so6mofmatchplayingageinEnglandseemssensible.
b)Ofschoolagechildren,howmanyplayfootball?
Remember,youarelookingfortheminimumlikelynumber,toproveitismorethanpeoplewatchingfootball,ratherthantheactual.
Youshouldalsobearinmindthattheproportionofchildrenplayingisverydifferentforgirlsthanboys.Acautiousminimumestimatecouldbe
Proportion of girls
= 0%
Proportion of boys
=25%
Therefore,theminimumlikelynumberofpeopleplayingfootballinanaverageweekis750,000.
Next,workouthowmanypeoplewatchprofessionalfootball.
Therearetwodimensionstothetotalnumberofspectators:
numberofmatches*numberofspectatorspermatch.
a)Howmanyprofessionalmatchesarethereperweek?
Assumethateachprofessionalteamplayseachweek.
Youmayknowthenumberofprofessionalteamsalready
butdon'tworryifyoudon't.Thebestapproachistobreakitdownfurther
intonumber
ofleagues*teamsperleague.Ifyouassumethereare4leagues,and20
25teamsperleague,thisgivesyouarangeof80
100teams,oran
averageof90teamstherefore45matches.
Theinterviewerwillletyouknowifyouarecompletelywrongonthenumber:thekeythingistoshowalogicalapproachtoestimation.
b)Whatistheattendanceateachmatch?
Thefirstthinktobearinmindisthatattendancewillvarysignificantlybetweenthedifferentleagues
sothePremierLeaguewouldhavemuch
higherattendancethanDivision2.YoucouldstartbyassumingthateachLeaguehashalftheattendancepermatchthanthepreviousleague.This
meansyouonlyneedtoestimatetheaverageattendanceataPremierLeaguematch.
=30/2+30/4+30/8
=15k+8k+4k(roundup)
=30k+15k+8k+4k
=57k
=57k/4
=approx15k
Theactualnumberforaverageattendanceis15.4k,soveryclosetothisnumber.
c)Whatisthetotalaverageattendance?
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Therefore,thelikelynumberofpeoplewatchingprofessionalfootballis675k.
675kislessthanthe750kminimumestimateforchildrenplayingfootball,whichdoesnotincludethenumberofadultsplayingamateurfootball.
Therefore,morepeopleplayfootballthanwatchfootballinanaverageweek.
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