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    Consulting Frameworks

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    Parr
    This document outlines frameworks for analyzing the profitability and market positioning of companies. It discusses factors to consider for a company's price, sales volume, and costs. It also covers frameworks for market entry assessment, mergers and acquisitions analysis using a 4 C framework, and Porter's generic strategies of operational effectiveness and differentiation. Key factors include demand elasticity, competition, market share, fixed vs variable costs, market potential, and cultural and management fit between companies.

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    Consulting Frameworks

    Uploaded by

    Parr
    131 views8 pages
    This document outlines frameworks for analyzing the profitability and market positioning of companies. It discusses factors to consider for a company's price, sales volume, and costs. It also covers frameworks for market entry assessment, mergers and acquisitions analysis using a 4 C framework, and Porter's generic strategies of operational effectiveness and differentiation. Key factors include demand elasticity, competition, market share, fixed vs variable costs, market potential, and cultural and management fit between companies.

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    Consulting Prep

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    This document outlines frameworks for analyzing the profitability and market positioning of companies. It discusses factors to consider for a company's price, sales volume, and costs. It also covers frameworks for market entry assessment, mergers and acquisitions analysis using a 4 C framework, and Porter's generic strategies of operational effectiveness and differentiation. Key factors include demand elasticity, competition, market share, fixed vs variable costs, market potential, and cultural and management fit between companies.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    131 views8 pages

    Consulting Frameworks

    Uploaded by

    Parr
    This document outlines frameworks for analyzing the profitability and market positioning of companies. It discusses factors to consider for a company's price, sales volume, and costs. It also covers frameworks for market entry assessment, mergers and acquisitions analysis using a 4 C framework, and Porter's generic strategies of operational effectiveness and differentiation. Key factors include demand elasticity, competition, market share, fixed vs variable costs, market potential, and cultural and management fit between companies.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 8

    Frameworks for cases

    Profitability Framework

    Price
    - Consumer demand elasticity
    - Competitors’ price changes
    - Market power – can we charge a premium? Have we lost a previous ability to charge a
    premium?
    - Product differentiation
    Sales volume (quantity)
    - Loss of market share due to competitors’ actions
    - Growth/reduction in overall market
    - Increase/decrease in sales to current customers with current products
    - Increase/decrease in sales to current customers with new products
    - Increase/decrease in sales to new customers with current products
    - Increase/decrease in sales to new customers with new products
    Cost
    - Portions which are fixed and variable
    - Time frames in which costs are avoidable
    - Allocation of costs to product, overheads etc.

    Note: changing volumes can wreak havoc on profitability when looked at from the perspective of
    fixed vs. variable costs. Be sure to understand what happens to fixed cost per unit when volume
    declines (it increases) and how this can affect profitability in capital intensive businesses.
    Company Market positioning
    Marketing assessment
    Market entry/ industry entry

    Market entry: 2 main questions

    1) What is the market potential of the product?


    2) What is the client’s capability to succeed in this market?
    M&A
     4 C framework can also be used

     Stand alone value of HD

    o Growth in market for doughnuts

    o HD's past and projected future sales growth (break down into growth in number of
    stores, and growth in same store sales)

    o Competition – are there any other major national chains that are doing better than HD
    in terms of growth/profit. What does this imply for future growth?

    o Profitability/profit margin

    o Capital required to fund growth (capital investment to open new stores, working
    capital)

     Synergies/strategic fit

    o Brand quality similar? Would they enhance or detract from each other if marketed side
    by side?

    o How much overlap of customer base? (very little overlap might cause concern that
    brands are not compatible, too much might imply little room to expand sales by cross-marketing)

    o Synergies (Hint: do not dive deep on this, as it will be covered later)

     Management team/cultural fit

    o Capabilities/skills of top, middle management

    o Cultural fit, if very different, what percent of key management would likely be able to
    adjust

     Ability to execute merger/combine companies

    o GB experience with mergers in past/experience in integrating companies

    o Franchise structure differences. Detail “dive” into franchising structures. Would these
    different structures affect the deal? Can we manage two different franchising structures at the same
    time?
    Porter’s generic strategy
    Operational effectiveness

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