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Business Situation Framework Session

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Sagar Sethi
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50 views6 pages

Business Situation Framework Session

j

Uploaded by

Sagar Sethi
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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CONSULTING PREP SESSION

Business Situation Framework


Types of Cases

Market Entry/Market Mergers &


Profitability Pricing
Growth Acquisitions
Business situation framework – 3C1P
COMPANY CUSTOMERS COMPETITORS PRODUCT
• Who are our customers? • Who are our competitors? • Nature of product (think out
• Capabilities and expertise loud about the product, it's
Identify customer segments
Market share of each benefits, why someone
• Distribution channels competitor would buy it)
used by the company Size and growth rate of each • Commodity good or easily
segment • Competitors behavior*
(Target customer differentiable goods (could
• Cost-structure (mainly company increase
fixed vs. variable - is it segments, products, differentiation)
pricing strategy,
better to have higher • What are the key needs of
distribution strategy, • What are its complementary
fixed cost with lower each segment? goods
brand loyalty)
variable, or vice versa, • What price is each segment • What are its substitutes?*
compare to industry) willing to Pay • Competitor Best practices
(are they doing things • Product characteristics, it’s
• Investment cost (optional: • Distribution channel we're not?) lifecycle, etc.
only if case involves an preference for each • Packaging (optional) - can
segment? • Barriers to entry* (do we change in packaging make
investment decision) need to worry any new product more likely to meet
• Customer concentration entrants to market?) needs of specific customer
• Organizational structure and power* (does one segments? (eg. Bundling,
customer control all the • Supplier concentration* etc.)
demand)

* Derived from Porter’s Five Forces


Case Framework: Value Chain Analysis

Source: FMS Casebook


Case interview reminders: Do’s
• Compare "company/client" metrics (revenues, gross margins, unit sales, • Clarify the problem statement again
pricing, changes in segment mix, product mix) to competitors' metrics to
• Before making a calculation walk the interviewer
determine whether it’s a COMPANY-SPECIFIC or INDUSTRY-WIDE problem
through the steps you are going to take (Revenue =
• Totals and Averages are very misleading.... Always SEGMENT YOUR METRICS Market Share * Total Market Size). Then take a
minute to do the calculations on your paper and gut
• Example: Total sales are flat, but Segment A represents 20% of sales, and
check your answers
Segment B represents 80%... Segment A grew 100% this year, Segment B
declined by 25%... BUT total sales were FLAT. If you don't segment, you MISS • Have a conversation
THE WHOLE POINT
• Think before speaking
• Segment revenues (by product, channel, customer type, region) (total
• Organise your worksheet
revenues, revenues per unit)
• Maintain eye contact
• Segment costs (by fixed vs variable, costs within each segment of value
chain) (total costs, cost per unit)
• Segment customers (by demographics, needs, purchasing patterns, price
point, other)
• Segment competitors (by channel, region, product, customer segment)
Case interview reminders: Don’ts
• Don’t ask the interviewer where they want to start the case. Pick a place and give a brief
explanation why you are starting there
• Don’t rapid fire questions. Lead each question with a transition from the data you just got or a
rationale for why you are asking the question
• Do not name any framework while solving the case, use concepts from these frameworks
• Don’t be rigid with your solutions: It is important to back your suggestions. But if the interviewer
challenges your views, welcome other perspectives.
• Do not panic: if you make a mistake or hit a roadblock. Ask for help or buy some time to
reorganize your thoughts.

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