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171 views25 pages

SRCRC Casebook 2024 - Preview

Uploaded by

Tejas Nandan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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C

ASEBOOK

SHRI RAM
CONSULTING
2024

&
RESEARCH CENTRE
TABLE OF CONTENTS

TOPICS PG NO. TOPICS PG NO.


About SRCRC. 1 Growth Framework 20
About Casebook. 2 Mergers and Acquisitions
21
Acknowledgement. 3 Framework
4 Common Framework 22
Faculty advisor’s note.
Marketing Framework 23
Past Clients. 5
6 Miscellaneous Framework 24
What is Consulting.
General Framework 25
Hierarchy of Consulting 7

9 3. Industry Analysis 27
1. Basic concepts
IT Industry 28
Economics 10
FMCG Industry 29
Finance 11 Automobile Industry 30
Organizational Behavior 12 Banking Industry 31
Marketing 13 32
Tourism Industry
Insurance Industry 33
2. Frameworks 14 EdTech Industry 34
Profitability Framework 15 Indian Hospitality Sector 35
Market entry Framework 17 Oil and Gas Industry 36
New product Framework 18 Cement Industry 37
Pricing Framework 19 Real Estate 38
TABLE OF CONTENTS
TOPICS PG NO. TOPICS PG NO.

4. Know your company 6. Guesstimates 101


39
McKinsey & Company 40 Guesstimate 1 102
Boston Consulting Group(BCG) 41 Guesstimate 2 104
Bain and Company 42 Guesstimate 3 106
Deloitte 43 Guesstimate 4 108
44 Guesstimate 5 110
KPMG
EY 45 Guesstimate 6 112
PwC 46 Guesstimate 7 114
Accenture 47 Guesstimate 8 116
ZS 48 Guesstimate 9 118
Kearney 49 Guesstimate 10 120

5. Interview transcripts 50
Mobile Phone Showroom 51
Profitability 52
CPG Company 53
Market Entry 54
E-Commerce Company 55
Others 57
ABOUT CASEBOOK
The Shri Ram Consulting Casebook is a comprehensive collection of real-life case
studies meticulously compiled by the Shri Ram Consulting and Research Center. We
here at Shri Ram Consulting and Research Center, are committed to delivering top-
notch research and consultancy services globally. This case book's main objective
is to provide professionals and students in a variety of fields with useful insights
and educational opportunities.

Containing a wealth of content, including guesstimates, interview transcripts, and


fundamental concepts in marketing, finance, economics, and profitability
frameworks, we aim at providing our readers a valuable resource. Our casebook is
an ideal tool for professionals seeking to enrich their expertise, as it provides a
holistic view of consulting knowledge, making it an effective teaching tool as well.
We aim to break down the vast and complex consulting know-how into a user-
friendly guide and help you enhance your problem-solving skills, gearing you up for
challenges, and empowering you with knowledge for the demanding journey
ahead.

While it doesn't guarantee absolute success, the case book significantly boosts
confidence by imparting essential practical knowledge for decision-making and
problem-solving, ultimately preparing individuals for job interviews. This project by
the Shri Ram Consulting and Research Center is, therefore, a must-read for anyone
seeking to learn from real-life business scenarios and interested in enhancing their
capabilities in navigating the complexities of the ever-evolving industry.

Shri Ram Consulting and Research Centre 2


OUR PAST CLIENTS

Shri Ram Consulting and Research Centre 5


BASIC
CONCEPTS
Finance Economics

Organisational Marketing
Behaviour
Shri Ram Consulting and Research Centre 9
BASIC CONCEPTS OF ECONOMICS
Economics is the study of scarcity and it shows the implications of resources, production, demand & supply of goods
and services adding to the welfare of the people in large. It has 2 branches , Micro-Economics & Macro-Economics.
_______________________

Monopolisctic Goods &Services


__

__
Competition
d umer Expenditure
Cons
__

__
__

__
__
__

Perfect
__ __

Market Business Household


Oligopoly
__
__

Competition Structure Sector Sector


__

__
__

__
__

__

Ren o fit
t, W a g
e s , In tre st & Pr
__

__

_______________________
s Monopoly F actors
o f P r o d u c ti o n
O

Demand-Supply Graph Market Structure Circular Flow of Income Price Elasticity of Demand Costs Curves

Scarcity Assymetric Information Externalities


KEY Supply & Demand
CONCEPTS Costs and Benefits Concentrated market power
MARKET FAILURE Public Goods
Incentives

REGRESSION TRADE OFF &


ECONOMICS OF SALE FORMULAS
OPPORTUNITY COST

Shri Ram Consulting and Research Centre 10


BASIC CONCEPTS OF ORGANISATIONAL BEHAVIOUR
It is the study of how people interact within organizations,which examines individual behavior, group dynamics,
and the influence of the larger social, political, and economic context on behavior.
The goal of Organisational Behavior is to understand how organizations function and to help individuals and
groups work effectively within themselves.

COMMUNICATION LEADERSHIP DIVERSITY


Effective communication is critical to Leadership is the process of guiding and Diversity and inclusion refer
the success of any organization. directing individuals and groups towards to the presence of a variety
Companies that communicate well can a common goal. Effective leaders are of perspectives, cultures,
avoid misunderstandings, build trust, able to inspire, motivate, and guide their and backgrounds within an
and increase employee engagement. followers to achieve success. organization. Companies
that embrace diversity and
inclusion can benefit from a
MOTIVATION ORGANISATIONAL CULTURE broader range of ideas.
Motivation is the driving force that Organizational culture refers to the
encourages individuals to take action. shared values, beliefs, and practices Why study Organisational
In organizations, motivation is critical that define an organization. A strong Behaviour ?
for achieving goals and objectives. culture can help to create a sense of Replaces intuition with systematic
study which improves the predictive
Companies that understand how to community among employees, which ability
motivate their employees can increase can increase job satisfaction. It also Improves the effectiveness of the
productivity, job satisfaction, and fosters a cohesive work environment study.
Understanding of human behaviour
retention. where individuals feel connected. will improve your impersonal skills

Shri Ram Consulting and Research Centre 12


Shri Ram Consulting and Research Centre 14
MERGERS AND AQUISITIONS FRAMEWORKS
Mergers & acquisition provide means of inorganic growth for a company. It is important to evaluate a prospective merger or acquisition
using a framework to understand the net benefits the acquirer can receive including financial as well as non-financial factors.

Initial Questions Approach/Framework


1. Understand client’s
Net Benefits
company
Questions can be asked to I
learn about client’s company,
its current state, industry in
Financial Non-Financial
which it operates, growth
strategy and aspirations. I I

2. Understand target company


Value Added Costs Acquirer Fit External Risks
Questions can be asked to
understand the target’s
I
market, market share,
profitability, and its Company Acquisition Integration
competitors. Synergies
Valuation Price Costs

Financial Non-Financial
Acquirer Fit
Value Added Synergies Costs 1. Cultural Fit:: Working norms, countries,
1. Valuation: Target company’s 1. Operational: • Revenue – Selling 1. Acquisition price: This price is entrepreneurial vs corporate, etc.
valuation indicate the present more quantity or higher pricing • quoted to the acquirer for this M&A. 2. Organizational Fit: Similarity in org
value of cash flows it can Costs – Economies of scale/scope, Typically, the price value will be structure, talent & skill set overlap,
generate in future based on its savings in R&D or selling (SG&A) costs given by the interviewer. etc.
current capital structure 2. Financial: Potential tax savings, 2. Integration costs: Costs incurred 3. Strategy Fit: Alignment in long term
2. Synergies: Synergies are (shield) improved leverage ratio, during M&A process for integration of growth strategies
additional benefits derived ability to take more debt IT systems, operation processes and External Risks: To be analyzed using
from combined ass organizational structure. PESTEL framework

Shri Ram Consulting and Research Centre 21


GENERAL FRAMEWORKS
BCG GROWTH MATRIX TAM, SAM & SOM
MARKET SHARE

HIGH LOW

HIGH TAM
MARKET GROWTH

SAM

SOM
LOW

ANSOFF MATRIX
MCKINSEY'S 7S
Existing
Products
New
Structure
Existing Market Product
Strategy Systems Penetration Development

Markets
Strategy Strategy
Shared
Values
Skills Style Corporation
Market Diversification
Development Strategy
New Strategy
Staff

Shri Ram Consulting and Research Centre 26


INDUSTRY
ANALYSIS
FMCG INDUSTRY
IT INDUSTRY

AUTOMOBILE
BANKING INDUSTRY
INDUSTRY
and many more..

Shri Ram Consulting and Research Centre 27


IT INDUSTRY
KEY DRIVERS MARKET SIZE CHALLENGES
Surging demand for data storage and The global IT industry market size was USD Data management
processing: Driving growth in cloud 5.2 trillion in 2022 and is projected to reach Meeting the needs of the business
computing and big data analytics. USD 6.8 trillion by 2025. Managing costs
Increasing need for cybersecurity: Expanding In 2022, the IT industry directly employed Project management
market for cybersecurity software, services, 11.5 million people in the United States and Recruiting and retaining talent
and hardware. 40 million people worldwide. Training and development
Adoption of innovative technologies: AI, ML, Global IT spending on research and Diversity and inclusion
and IoT reshaping the IT landscape. development (R&D) reached USD 1.7 trillion Cybersecurity
Rise of the digital economy: Rapid growth in in 2022.
e-commerce and online businesses.
Globalization of IT: Development of versatile
IT solutions for businesses worldwide.

KPIs Sector
IT TRENDS
Here are some of the KPIs used in the IT Composition
Industry: Artificial intelligence (AI) and
Mean Time to Repair (MTTR) machine learning (ML)
Mean Time Between Failures Cloud computing
Customer Satisfaction Cybersecurity
IT Cost as a Percentage of Revenue Data analytics
IT Project Success Rate Internet of Things (IoT)
Semiconductors & Technology Software and
Semiconductor hardware and Services
Equipment: equipment

Shri Ram Consulting and Research Centre 28


EDTECH INDUSTRY
KEY DRIVERS MARKET SIZE CHALLENGES
Accessibility and flexibility drive the surge in The Global EdTech market is anticipated to rise at Ensure your product meets customer needs
online education. a considerable rate during the forecast period, and expectations by offering different levels
AI and VR revolutionize teaching methods and between 2023 and 2030. for beginners, intermediates, and advanced
enhance engagement. India is the second largest market for e-learning users.
Tailoring learning experiences to individual after the US with a market size of $6 billion, K–12 Enable users to customize their learning
student needs boosts sector growth. leads the market in terms of sector-wise growth at paths according to their preferences and
The dynamic job market fuels demand for $2.7 billion, followed by College and Upskilling. goals.
continuous learning. Indian edtech startups had managed to keep their Provide excellent customer service and
The pandemic accelerates the global adoption of pots boiling until the beginning of the pandemic, support to address any questions or concerns
digital education tools. the sector had just one unicorn — BYJU'S. In the promptly.
Interactive elements in edtech platforms create last three years, six edtech startups have entered
engaging learning environments. the billion-dollar clu.

KPIs Sector
TRENDS
Here are some of the KPIs used in the EdTech Composition
Industry: Hybrid Education Becomes the New
User Engagement Normal
Retention Rate The Rise of Chat GPT and AI-Assisted
Learning Outcomes Learning
Market Reach and Growth Immersive Technologies Transform
Customer Acquisition Cost (CAC) E-Learning the Edtech Landscape
Educational Educational
Revenue Metrics platforms &
Gaming and
How Chat GPT Can Improve
Learning Content and
Feedback and Satisfaction Scores Corporate Education
Management Virtual Reality
Systems Training

Shri Ram Consulting and Research Centre 34


KNOW YOUR
COMPANY

Shri Ram Consulting and Research Centre 39


OVERVIEW :
A global management consulting firm founded in 1926 by
University of Chicago professor James O. McKinsey, that
offers professional services to corporations, governments,
and other organizations, McKinsey has developed numerous
frameworks, models, and tools that have become widely
used in the industry. It’s legacy of innovation and
intellectual rigour continues to shape the field of
management consulting today.

MAJOR CLIENTS SERVICES OFFERRED :


RECENT DEVELOPMENTS :
McKinsey Digital
1. Launch of an open-source M&A
ecosystem for digital and AI Growth, Marketing &
Sales
projects. Operations
2. Acquisition of Vivid Economics People & Organisational
Performance
and Planetrics. QuantumBlack, AI by
3. Partnership with Salesforce to McKinsey
deliver AI-powered growth Risk & Resilience
Strategy & Corporate
AIM : Finance
Sustainability
Assist organisations in solving their most Transformation
FINANCIAL
critical and complex business problems
PERFORMANCE :
Revenue : $18.5 billion, 8.8% yoy CAREER PATH :
increase.
Business Engagement
Profitability: estimated margin of Analyst
Associate Associate Director Partner
Manager Principal
24%.

Shri Ram Consulting and Research Centre 40


OVERVIEW :
Deloitte is a multinational professional services network that
offers a range of services including audit, consulting, tax,
and financial advisory services to clients worldwide. The firm
was founded in 1845 and is headquartered in London, United
Kingdom. With a presence in over 150 countries, Deloitte is
one of the "Big Four" accounting firms. Deloitte's culture is
built on integrity, respect, commitment to each other, and
strength from cultural diversity.
MAJOR CLIENTS SERVICES OFFERRED :
RECENT DEVELOPMENTS :
Audit
1. Acquired BIAS Corporation, a Consulting
leader in the Oracle Cloud Financial Advisory
Infrastructure. Risk Mitigation and
2. Plans to invest Rs. 1,000 crore management
Tax planning
in a new centre for innovation.
Development and capacity
3. Signed an MoU with a leading building
Indian IT company Strategy and business
AIM : planning
Resource Mobilization
To help clients and people excel and is one
FINANCIAL Investment Advisory
of the world’s leading business advisories.
PERFORMANCE :
Revenue : $64.9 billion, 14.9 % yoy CAREER PATH :
increase.
Analyst/ Senior
Profitability: estimated margin of Associate
Consultant
Senior
Manager
Manager
Director Partner
Consultant
10.6 %.

Shri Ram Consulting and Research Centre 43


OVERVIEW :
PwC is a leading multinational professional services network
with roots dating back to the mid-19th century. The firms
were a result of the merger between "Price Waterhouse" and
"Coopers & Lybrand" in 1998. PwC uses data analytics and
artificial intelligence heavily in its operations and is also
committed to corporate responsibility i.e., sustainability
initiatives and ethical business practices.

MAJOR CLIENTS SERVICES OFFERRED :


RECENT DEVELOPMENTS :
Cyber Security
1. PwC India honoured with Transformation Consulting
UiPath's 2022 Innovation Environmental, Social, and
Governance (ESG)
Partner of the Year Awards. Consulting
2. Collaborations with Workiva, Financial Risk and
Zoho Corporation, and o9 Regulations (FRR) services
Solutions Forensic Services
Licensing and Contract
Compliance
AIM :
Management Consulting
Commitment to building trust in society and Digital strategy consulting
FINANCIAL
addressing significant challenges
PERFORMANCE :
Revenue : $50.3 billion, 16.2 % yoy CAREER PATH :
increase.
Analyst/ Senior Senior
Profitability: estimated margin of Associate
Consultant
Consultant
Manager
Manager
Director Partner

11 %.

Shri Ram Consulting and Research Centre 46


Shri Ram Consulting and and
Shri Ram Consulting Research Centre 2950
Research Centre
GROW REVENUES OF A STANDALONE MOVIE THEATER IN BOMBAY
Estimate the revenues for standalone theatre

So, I have a very unconventional case for you. Your client is your with varieties being hosting concerts, purchasing exclusive rights
friend, who owns a standalone movie theatre in Bombay. He to certain shows, etc., or change the way of provision to OTT.
wants to grow his revenues, and has come to you for help. How What about increasing revenue/customer?
would you help your friend?
Yes, it can be further broken down as
Who are the exact customers of my friend, and can I assume it to
revenue/customer/transaction * #transactions/customer. For the
have sources of revenue as movies, advertisements, food, parking,
first, upselling, bundling, quantity reduction and decoy pricing
and tickets?
can play a role. For the second, we can look at supply, demand,
You can assume them to be middle-to-upper end classes, and and distribution separately.
yes, sources of revenue are correct. Let’s look at the supply and infrastructure aspect now
Can we consider my friend’s competitors to be other movie Supply would be affected by movies, frequency of shows,
theatre chains, multiplexes, and OTT platforms? Lastly, want kind infrastructure, and hours of operation., I’ve broken down the
of increase is expected and over what time period? infrastructure considering seats as a bottleneck. It could be
written as #seats * %utilization. These can be improved by
He wants to see a 2x increase over the next 3-4 years.
reducing distance between seats as well as rows, expanding the
I’ve broken down the organic route as growth from existing walls of the theatre, and improving any bad quality seats.
businesses or new businesses. Existing businesses would cover Absolutely. Good job. Now after all our discussion, you’ve given
revenue from tickets, parking, food, advertisements, and movies. around 7-8 very innovative ideas. What would be the top 3
New businesses could comprise of things such at launching on solutions as per your analysis?
OTT, home theatre screens, movie cabs, and hosting exclusive
In order of priority, I believe they’d be Exclusive screenings (for
shows/concerts. Revenue can further be broken down as
sports, concerts, shows, etc.) ,Differential pricing ,Increasing the
#customers * revenue/customer Talking about #customers, it’s
seating capacity.
actually target market * market share %. So, my friend can increase
the target market by opening a theatre in a new geography. Or, for Great, we can end the case here.
improving market share, he can introduce new movies/products,

Shri Ram Consulting and Research Centre 65


Unconventional Growth

Revenue Growth in Movie Theatre

______
Organic Growth Inrganic Growth

New Businesses Existing Businesses

______
OTT Platforms Increasing Target Market Increasing Revenues

______
______
Supply Infrastructure Differential Pricing

___________________________________________________________________________
INTERVIEW NOTES RECOMMENDATION
Theatre targets middle to upper level classes. There is a need to increase revenues and market share by
Sources of revenue are tickets, advertisement, food, parking. introducing exclusive screenings, differential Pricing, and
Opening a theatre in a new location is recommended. increasing the seating capacity.
Differential pricing to be adopted to improve revenues.
Increasing revenue by upselling, decoy pricing, bundling and
quantity reduction.

Shri Ram Consulting and Research Centre 66


GUESSTIMATES
GUESSTIMATES

Shri Ram Consulting and Research Centre 101


Guesstimate 9
Number of Delhi Metro Users in a day

ASSUMPTIONS
1)Delhi Metro (DMRC) caters to not just Delhi as a location but National Capital Regions too which include -
Faridabad, Ghaziabad, Gurugram, Noida and so on.

2)There are 9 lines operating in Delhi Metro - (1) Red, (2) Blue, (3) Green, (4) Pink, (5) Magenta, (6) Yellow, (7) Violet,
(8) Orange, (9) Gray

3)The average number of boxes in one metro train = 6


4)The total capacity of one coach of metro train = 200 (50 seating and 150 standing). Average number of
passengers in one metro train = 6 X 200 = 1200 approximately.

5)Now, let’s break down the busiest and non-busiest hours of the Delhi Metro.
(Weekday)
Busiest Hours- 8 AM – 11 AM and 4 PM – 8 PM (Total – 7 Hours)
Non-Busiest Hours: 6 AM – 8 AM and 11 AM – 4 PM and 8 PM – 12 AM (Total – 11 Hours)
Metro pauses it’s services from 12 AM – 6 AM

6)During the busiest hours, the frequency of metro trains coming to one station 4 minutes.
7)During the non-busiest hours, the frequency of metro trains coming to one station is 6 minutes.

Shri Ram Consulting and Research Centre 120


Guesstimate 9
Number of Delhi Metro Users in a Day

DELHI METRO

_____
User Completed Trips = 2
Average Number of Users in 1 Metro = 1200
Total Number of Metro Lines = 9

_____

_____
Number of Users In Non-Busiest
Number of Users In Busiest Hours
Hours

_____
_____

Busiest Hours = 7 hours Non- Busiest Hours = 11 hours


Metro Train Arrival Rate (Peak hours) Metro Train Arrival Rate (Off Peak hours) =
= 60 min / 4 min 60 min / 6 min

Total Number of Users in Busiest Hours: Total Number of Users in Non-Busiest Hours:
2 x 1200 x 9 x 7 x 60/4 = 22,68,000 2 x 1200 x 9 x 7 x 60/6 = 23,76,000

Total Number of Delhi Metro Users in a Day =


22,68,000 + 23,76,000 = 46,44,000 Users (4.6 Million Apoprox)

Shri Ram Consulting and Research Centre 121


ALL THE
BEST!

For any queries, feedback or


suggestions, write to us at
[email protected]

Shri Ram Consulting and Research Centre 123

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