Académique Documents
Professionnel Documents
Culture Documents
General approach
1. Summarize the question - This shows the interviewer that you listened. It allows you to hear
the information again. It keeps you from answering the wrong question. And it fills the gap of
silence between the interviewers question and your answer. When listening to the question, try to
weed out the irrelevant information to hear what the interviewer is asking; one word in the
question could make a big difference in your answer
2. Verify the objectives - if the objective to your case seems obvious, there is always a possibility
of an additional, underlying objective. So ask, One objective is to raise profits. Are there any
other objectives that I should know about? If the interviewer says, No. Higher profits is the only
objective, then we can determine that the choice of case scenario comes directly from the
objective. If there are two objectives, you will probably need to break the case in half and tackle
one objective at a time.
3. Ask Clarifying Questions
4. Lay Out Your Structure Many students find that it helps to draw a decision tree. A decision tree
is a map of the reasoning process visually breaking the case down into components and laying
out your structure.
Unique features
Patented?
Substitutes?
Adv. & Disadv.
Fitment with the overall product lines
2. Market strategy
Effect on existing products
Cannibalization
Replacement?
How will it affect sales and customer base
Competitors response
New or Old product if new, Barriers to entry?
Major players
3. Customers
Target segment
How to reach them
How to retain
4. Financing
Funding source
Best allocation of funds
Can we support debt bad economy, change in interest rates
1. Product
Unique features
Substitutes and their prices
Growth stage of industry
How big is the market, expected revenues
R&D costs
2. Pricing Strategy deciding pricing by own or responding to market or competition?
o Team
o Core competencies
o Advisory board?
Market and Strategic Plans
o Entry barriers
o Competitor response
o Major players, market share
Distribution channels
Product
o Product or technology
o Must have?
o Patented?
o Adv. & disadv.
Customers
o Who
o How to reach
o How to retain
Financing
o How is the project funded
o Best allocation of funds
o Debt obligations can be met (interest rates change, bad economy)
Gather information
Growth relative to industry
Customers opinion and expectations from us
Prices compared to competitors
Competitor actions in marketing and product development
2.
Scenario 12 Turnarounds
1. Gather information about company, industry, are competitors facing same problem, access to
capital, public / private
2. Reasons for failure product / management / economy
3. Choose from following corrective actions
1. Gather information about operations and business
2. Review products, services and finances
3. Review employee performance
4. Determine short term and long term goals
5. Visit clients, suppliers and distributors. Reassure them
6. Get quick wins to build confidence
[Four Ps]
1. Product: What are our products and services? What is the companys niche?
2. Price: How does our price compare to the competitions? How was our price determined? Are we
priced right? If we change our price, what will that do to our sales volume?
3. Place: How do we get our products to the end user? How can we increase our distribution
channels? Do our competitors have products in places that we dont? Do they serve markets that
we cant reach? If so, why? And how can we reach them?
4. Promotions: How can we best market our products? Are we reaching the right market? What kind
of marketing campaigns has the company conducted in the past? Were they effective? Can we
afford to increase our marketing campaign?
The need for a portfolio of businesses becomes obvious. Every company needs products in which to
invest cash. Every company needs products that generate cash. And every product should
eventually be a cash generator; otherwise, it is worthless
The payoff for leadership is very high indeed if it is achieved early and
maintained until growth slows. Investment in market share during the
growth phase can be very attractive if you have the cash. Growth in
market is compounded by growth in share. Increases in share increase
the margin. High margin permits higher leverage with equal safety.
The resulting profitability permits higher payment of earnings after
financing normal growth. The return on investment is enormous.
Only a diversified company with a balanced portfolio can use its strengths to truly capitalize on its
growth opportunities. The balanced portfolio has:
stars whose high share and high growth assure the future
cash cows that supply funds for that high growth
question marks to be converted into stars with the added funds
Used extensively for industry analysis starting new business, developing new product, entering
new market
1. The threat of new or potential entrants / barriers to entry
Control of strategic resources
Capital requirements
Govt regulations
Switching costs
Access to distribution channels
IP
Product differentiation
2. Intensity of rivalry among existing competitors
3. Pressure from substitution products
4. Bargaining power of buyers affect profitability, quality of service at lower cost
5. Bargaining power of suppliers supply and demand, more consumers give suppliers higher
power and vice versa
Product Scenarios
If a product is
If a product is
If a product is
If a product is
exit strategy.
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The perfect strategy for the high-cost producer is one that convinces competitors that market
shares cannot be shifted, except over long periods of time. Therefore, the highest practical
industry prices are to everyones advantage** meaning that price wars are detrimental and
everyone will profit more by keeping prices high.
General tips
How the Internet affects the company should be in the back of your mind in every case.
How the economy affects the company should be in the back of your mind in every case.
How the competition both internal to the industry and external (substitutions) affects the
company should be in the back of your mind in every case.