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13 Cards in this Set
- Front
- Back
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Steps in Analyzing a Case
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1. Clarify-take notes, ask questions, rephrase question and see if you have good understanding of it
2. Structure-Ask for time to organize thoughts, use framework, draw out framework, walk interviewer through it 3. Solve-think out loud so interviewer can follow, pick up on clues from interviewer 4. Recommend-Use data, facts,and key findings to present clear and concise recommendation supported with key points 5. Next steps-talk about how you would proceed as if you were staffed on engagement |
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Important Population Numbers for Market Sizing Cases
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World-6.6B
US-300M NYC-8M LA-4M China-1.3B Europe-740M |
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Gross Profit Margin and Net Profit Margin
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Gross=Sales-COGS/Sales
Net=Net profit/Sales |
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Contribution Margin
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Revenue-Variable Costs
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Return on Investment
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(Revenue-Cost-Investment)/Invested Capital
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Elasticity
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Elastic Products Volume is sensitive to price
%Change Volume/% Change Price |
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Rule of 72
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Years for investment to double
72/Rate of return |
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Profit Equation
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Profit=Revenue-Costs
Inputs for Revenue=Price (elasticity, positioning, pricing strategy) and Volume (Increase market share, market growth, changing customer demand, new markets) Inputs of Cost=Variable (COGS, raw materials, energy inputs, labor) Fixed (Overhead, machinery, interest expense, depreciation) |
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Porter's 5 Forces
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Determines if industry is attractive
1. Threat of new entrants- EOS, gov. barriers, access to distribution channels, access to raw materials 2. Substitutes-switching costs, comparable products 3. Competitive Rivalry-Fragmented industry, slow growth, low differentiation, Motives to cut prices 4. Supplier Power-supplier is important to buyer's final products, supplier's products are differentiated, supplier products make up large portion of cost structure 5. Buyer Power-Large customer, product has little differentiation, low switching costs, buyer has a lot of info |
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E&Y Structuring Framework
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1. Strategy-consider firm's overall business strategy and make sure recommendation is in line
2. Process-what are key processes that must be implemented once plan is in place (governance and capability) 3. People-what are key skills required, current roles and responsibilities, what org structure will work? 4. Technology-what are tools and tech needed to run processes efficiently? What are existing capabilities? 5. Performance Management-key business drivers and relevant metrics? 6. Location |
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3 C's
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Company-how does company create and capture value (Profit equation, product offering, value chain, collaborators, competencies, culture)
Competitors-who is customer and how company is meeting needs (Segmentation, market share, size, and growth, what influences customer decision?) Competitors-differences between you and competitor (Product offering, value prop, advantages and disadvantages of marketing, operations, and talent, market share, fragmentation) |
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Value Chain
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How company creates value through internal operations
R&D, sourcing, inbound logistics, manufacturing, distribution, sales and marketing, service |
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4 P's
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Price-Elasticity, competitor pricing, strategy, customer willingness to pay
Product-differentiation, unique attributes, why customers buy product (ie. service, quality, speed) customer loyalty, substitutes Place-distribution channels, inventory (push v. pull, just in time, carrying cost), Transportation Promotion-advertising, personal selling, trade promotions, PR, direct sales |
