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8/6/2019 Case Workshop Unc
1/14
Kenan-Flagler Business School Consulting Club
Case Interview Frameworks
Overview
Determine Key
Issue(s)
Develop
Hypotheses
Gather Data /
Test HypothesesDevelop Options
Make
Recommendation
Refine Answer
As the interviewer describes the situation, think about what are the key issues
facing general management
Develop hypotheses
Decide what data you need to better understand the issues
Listen to the facts
Evaluate which facts are criticalto the key issues
Probe for more detail in critical areas
Usefacts andnumbers appropriate in building argument
Summarize optionsbefore making recommendation
Statepros andcons - be fact driven
Make your recommendation
8/6/2019 Case Workshop Unc
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Kenan-Flagler Business School Consulting Club
Case Interview Frameworks
Using Frameworks
There is no golden rule, more than one framework may be applicable
Use an appropriate framework
Do not force a framework
Be hypotheses driven
Be prepared to revise your hypotheses
Mutually Exclusive and Collectively Exhaustive (MECE)
Listen forclues from the interviewer
Acceptdirection from the interviewer
Display your thinking visually / graphically
Be transparentin your analysis
Leave time to summarize and make recommendations
8/6/2019 Case Workshop Unc
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Kenan-Flagler Business School Consulting Club
Case Interview Frameworks
Some General Frameworks
The Three Cs
The Four Ps
Porters Five Forces (+govt.)
Supply & Demand
The Profit Equation
Internal - External
NPV Analysis
Dont be afraid to create your own framework, as long as it is logical,
appropriate and transparentto the interviewer.
8/6/2019 Case Workshop Unc
4/14
Kenan-Flagler Business School Consulting Club
Case Interview Frameworks
Adjust Answer
Increasing Factors
Adjust Answer
Decreasing Factors
Analyze Results
Implications?
Calculate
Use Round Numbers!
Common sense check!
Make Assumptions
Determine The Key Drivers
Bottom Up or Top Down?
Market Sizing
8/6/2019 Case Workshop Unc
5/14
Kenan-Flagler Business School Consulting Club
Case Interview Frameworks
Decreasi
. ress re?
Price
- arket
iti
s
-
etiti
Decrease
Hi
er ar
.
sts
- Or
. Dysf
cti
- O
erti e
I
crease
Vol
e
Selli
Less
Profitable Items
Product
ix
evenues
-
dded
apacity?
Fixed
osts
- aw aterial Prices
Variable
osts
- Writeoffs
- Lawsuits
nusual Expenses
Expenses
nalyze sing
Profit Equation
Gat er Information
W at's Driving
t eDecline?
Declining Profits
8/6/2019 Case Workshop Unc
6/14
8/6/2019 Case Workshop Unc
7/14
Kenan-Flagler Business School Consulting Club
Case Interview Frameworks
Increase Capacity?
Competitors Plans
Global Competition
Substitutes
T reats
IndustryCapacity
Cyclical Seasonal
Economy
Consumer tastes
arket Trends
arket Demand
Bottlenecks
Design formanuf.
Improve Productivity
Add s ifts
Acquire
Outsource
AddCapacity
Investment vs. Improvement
Should We IncreaseCapacity?
8/6/2019 Case Workshop Unc
8/14
8/6/2019 Case Workshop Unc
9/14
Kenan-Flagler Business School Consulting Club
Susbsitutes
Demographic changes
New customers?
Values
Tastes
Disposable income
Mature market?
Price Sensitivity
Distribution channel
Bundled product?
Normal good?
Purchasing Habits
Cust
r
-
hat do they want?
- How do they ch oose?
! roduct
" lace
! rice
" romotion
Competitor
-
here are we positioned?
-
here is the competition?
Cost structure
Tangible
Intangible
Finances
Resources to respond?
Distributor
Vendor
Customer
Business relationships
Company
- How do we add value?
Given the above, is it worth making a competitive response?
How will the competition react?
Applying game theory or PARTS analysis may help.
Case Interview Frameworks
Competitive Response
8/6/2019 Case Workshop Unc
10/14
Kenan-Flagler Business School Consulting Club
Case Interview Frameworks
New Product Introduction?
Product
Have we done homework?#
hat does the segment want?
Proliferation of products already?
PriceHave we e
$
plored sensitivity?
Can we make a profit at this price?
Promotion
Push orPull?Cost of launch?
#
ill current promotions help?
Place
Is distribution aligned with customer?
Are we e$
perienced in this channel?
CustomerDoes product met a need?
Is market growing?
Can we eat the young?
Many
%
hat wil be the strategy?& ow cost or Differentiated?
Few
Yes
YesCan we beat them?
NoCan we erect some?
Are there barriers to entry?
Any precious resourcethat we own?
(Ricardian rents)
'
ill we be first movers?
No
CompetitionIs there any?
Finance
Are we able to finance the launch?Should we buy an e
(
isting producer?
OperationsD0 we have capacity?
Supply network?
Marketing)
ill we cannibalize e(
isting products?Is this a complement
0
bundled good
Does it build on resources?
CompanyCan we do it?
8/6/2019 Case Workshop Unc
11/14
Kenan-Flagler Business School Consulting Club
Case Interview Frameworks
International Expansion
Doesit matchourgrowth strategy?
- 1 OE2
1 OI
Alliancewith local firm?
- Joint venture/distributor
Canour resources succeedoverseas?
-Flexibleenough toadapt?
Is organ ization consistent
withoverseas 'autonomy'
CorporateValues
-Bribery
Worker's cond itions / child labor
Internal
Cu ltural Differences ofCustome rs
- Tastes /produ ct preferences
-Va lues /gender roles
3ethod s ofConducting Bu siness
- Introdu ctions
-Government con tacts
Edu cationa l Differences
Ec onomy4
Exc hange 1 ates
Seasona lity
- Weather
Distribu tion system- Transportation in frastructure
-Different channels
Political Clima te
- Instab ility
Local 3 arket
-S ize
-Competition
External
Amount
Timing
-Startup /disposition
- Operating
Discoun t 1 ate
CashFlows
1 OI /Hurdle 1 ate
Quantitative
8/6/2019 Case Workshop Unc
12/14
Kenan-Flagler Business School Consulting Club
Case Interview Frameworks
Useful Life
Timing
- OpportunityCost
Size
- 5 arket Potential
- Outflows
- WorkingCapital
CashFlows
- 6 isk Free 6 ate
- Inflation
- 6 isk Adjust
Discount6
ate
NPVAnalysis
Strategic Fit
- 5 issing Links
ofValueChain
Synergies
-Seasonality
-Volatility
- Inflation
DemandCycle
Environmental
Stability
Regulation
Political
-Current Supply
Potential Demand
Competitors
OtherFactors
Investment Decision
Investment Decision
8/6/2019 Case Workshop Unc
13/14
Kenan-Flagler Business School Consulting Club
Case Interview Frameworks
Strategic Objective Strengths Weaknesses
Resources AcquisitionFit
Internal Factors
Porter's FiveForces
ThreeC's
IndustryAttractiveness
Soft Issues
-Culture/Fit
- anagement
Hard Issues
- Price
-BalanceSheet
IdentifyAcquisition
Candidates
External Factors
Analyze Opportunity
Understand Purpose
Diversification?
Gain arket Share?Geographic Expansion?
Company Acquisition
8/6/2019 Case Workshop Unc
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Kenan-Flagler Business School Consulting Club
Case Interview Frameworks
YesThen Buy Back Stock
to Raise Stock Price
NoCan e Release ood News
to Raise Stock Price?
Do e Have Cash?
Yes
Issue Debt, Buy Back Stock
No
Are e Highly evered?(Relative to the Industry)
Self-Help
Has Financial Strength
Strategic Compatability
Cultural Fit
Classic M&AIs there a Firm That...
hite Knight
Two ptions Both
Designed to Raise the
Value of the Company
Hostile TakeoverDefense
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