Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

MC > Case > Flashcards

Case Flashcards

1
Q

MECE for customers of restaurant

A 
Walk in
Drive in
internet order
Phone order
3rd party (just eat, uber eats)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

MECE rules

A

1) Small elements can not overlap (mutual exclusive)
2) Sum of parts = whole (Collectivley exhaustive
3) Small elements must parallel one another (e.g. all customers of same restaurant)
4) Leverage magic three (aim for three-four items per group)
5) Use logic to look for oversights
5)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Profitability framework

A

Revenue Vs Cost

Revenue = Price per unit X total units sold

Cost = fixed cost per unit + (variable cost per unit X units sold)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

3CP rule of a framework

A

Consumer: Is there a demand, would this inc customers and retention, inc order size. Surveys etc to find out.

Company: Cost (method of implement, stat up, innovations)

Competition: Are they doing similar

Products: pricing strategy, cost of product and means of execution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Market sizing rules:

  • number per age group
  • income groups
  • world pop
A

0-80 = 750 people per age group (60 mill total)

income: 30% high, 50% med, 20% low in UK

UK X 100 = 600mill

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is a fixed cost

A

Price stays constant

E.g. electricity, rent, machinery, salaries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is a variable cost

A

Fluctuate

E.G Raw materials, freight.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is Net income

A

Revenue - costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Profit margin

A

Net income / Investment cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Return on investment

A

Profit from investment / cost of investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How to summarise in the case interview

A

Recap problem.
2-3 points of recommendation backed up with reasoning
If a question of should they e.g. enter a new market be definitive with answer. I.e. Yes because of …. risks are ….

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

5 steps to solving the case:

A

1) Summarise Q:
- ensure you’re clear
- any number changes convert straight away to %

2) Verify objectives: e.g. what would be considered successful (profit, market share etc)

3) Clarifying Qs only if needed
- E.G why do they want to do a certain thing

4) Decide structure and label case
- MECE
- 3-4 high level (e.g. for market entering CCCP = analyse client, competition, customer, product)
- discuss these with the interviewer to ensure comprehensive

5) Hypothesise
- Do this early e.g. I think Y is important, odds are it will be disproved but it helps to narrow scope -> case solving is one of elimination
- E.g. I hypothesis that profits have fallen because costs have risen

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Company & market factors

A

Profit/Revenue trends (how are they doing) and typical margins

Market share

Company reputation: market leader?

Capability: are they running at capacity

industry changes: M&A, New Tech, New regulations, Recession, new gov regulation, BREXIT

USP

Talent

Market trends and lifecycle (emerging, mature, declining

What is metric used to measure success

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Customer factors

A

Customer demographics

Changing needs/characteristics (e.g. rise of phone based ordering food)

Current spend, retention, loyalty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Competition factors

A

Market share of major players

USP/What makes them different

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Product factors

A

USP

How is distributed (can this be expanded)

New tech/products offered by competition

Is current production at capacity

Innovations in production and distribution

Product mix, Cost/Revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Profit and loss case structure

e.g. Sales are up but profits are down, how do we fix it?

A

Env(Profits = Revenue - costs)Market

Revenue = Price X quantity
Costs = Fixed costs + (quantity x variable costs)

Things to think about

  • Have competitions profits fallen: industry wide, look closer at external factors (e.g. natural disasters, new regulations, new entrant to market)
  • If no external changes, may be our problem (increased costs, lower revenues - smaller sale size/fewer customers, reduced availability compared to competition e.g. delivery etc), outdated products
18
Q

UKs Current:

  • unemployment rate
  • petrol prices
  • disposable income
  • strength of £
A
  • unemployment rate: falling, now 4%
  • petrol prices: slightly higher 127p/L
  • disposable income = income - tax. Currently £26000 in UK (increasing)
  • £1 = $1.27 (this was higher pre referendum
  • Interest rate (was 5% pre crisis and 0.5% 2009-2017) now 0.75%
19
Q

Profit and loss: (Use CCCP)

A

When brainstorming/fleshing out tree

Internal factors:

Revenue =
Company: Profit and revenue trends, Reputation, Market share, marketing
Costs =
Product: USP, Quantity being made, Cost/Revenue factors, distribution, raw materials and exchange rates (natural disasters can affect), tech used in production/shipping

External factors:

Competition/industry: How is client doing in comparison (Profits AS WELL AS costs), market share, new entrants, technology, Industry changes (M&A, New regulations, New gov, BREXIT), Talent, Market trends (emerging, mature, declining

Consumer market: demographics, env changes (recession, interest rates), retention, consumer confidence, disposable income, petrol prices, things affecting internal pricing (Raw materials)

20
Q

P&L Tree should include Three arms

A

Revenue (target inc)

Costs (target dec)

External factors (industry/env/market specific solutions)

21
Q

Ways to increase revenue

A

Inc customers

  • Increase availability (distribution channels)
  • Inc marketing
  • Enter new markets
  • Develop new products/keep up
  • pricing (need to be profit but competitive

Make customers buy more often (inc loyalty, sales and deals)

Make customers spend more (Upselling and multi buy, delivery etc)

22
Q

P&L Cost factors

A

Labour (fixed cost)

Production (Variable cost) X quantity (also fixed cost of machine running etc)

Finance (Refinance debt, Hedge, Sell assets, IPO)

23
Q

P&L total structure

A

1st look at possible external factors (Economy/customer, markets, competition)

Now do P&L tree

Revenue (no. customers, Buying frequency, Average spend, also cost of product)

minus

Costs (Labour costs, Production costs, Delivery etc costs, Streams/ability to fund - Finance)

24
Q

Market entering question

A

Do we entering
How do we enter
Advantages and disdvantages of each

25
Q

Steps to market entering question

A

1) Company
- The profits and revenue
- What constitutes success (IMPORTANT)
- current market share

2) Current & future market
- size of the market
- where is industry in life cycle
- what role does tech play in industry, where does company lie on this

3) Investigate the market
- Who are competitors
- How do their products differ
- How will our pricing be competitive
- Barriers to entry (lack of brand street cred, capital req, access to raw material, access to distribution channels, lack of human capital, gov policy)
- Big players?
- Barriers to exit if market sours (contracts etc)

4) Best way to enter the market
- Start from scratch
- Acquire existing
- JV
- Outsource manufacturing/marketing/distribution

26
Q

Ending New marketQ

A

Look at pros and cons of each sector

Give a definitive Y/N answer

If the answer is no then offer an alternative strategy

27
Q

Increasing sales

A

This is similar to P&L but with more emphasis in P.

Increasing sales can mean increasing volume increasing revenue or both (remember to check Previous years growth)

28
Q

Steps to inc sales Q

A

Learn about company: size, Resources, products, trends

Investigate the industry.

  • how is client growing in comparison to industry
  • are prices in line with competition

Steps to increase volume/revenue

  • expand distribution channels (apps, online etc)
  • Inc product line through diversifying services
  • invest in marketing
  • Aquire competitor (inc market share)
  • Keep it seasonal (e.g. garden centre flowers in summer, Xmas trees in winter to improve sales)
29
Q

Key things to consider in the industry

A

Where in life cycle
How is industry overall performing (last 1, 2, 5yrs)
How is company doing in comparison
Major recent changes (M&A regulations, new players)
What drives industry (Fads, brand cred, price, quality, marketing, products)

Suppliers:
- what is going on down the supply chain

Future:

  • Barriers to entry and exit
  • Players entering or leaving the market
30
Q

Financing considerations

A

How is it being funded
Do they want to raised funds by going public?
Do they want to take out debt, can they support a debt?

31
Q

Customer considerations

A

Who are they and what is important to them?

How are they segmented (demography)

How is it best to target/Reach them?

How to ensure brand loyalty

32
Q

Things to think if a competitor introduces a new product

A

How does it differ from what we offer?

Have the customers/markets needs changed?

Is the change an increase or expansion into new channels?

33
Q

Responses to new competitor product

A

Introduce a new product/Copy

Increase own products profile

Cut prices

Gain talent to develop new product

Acquire/merge with competitors who are in the same market

34
Q

Analysing why a company is failing

A

Why:
Bad product/service, bad management, bad economy?
Competitors feeling the same?
Access to capital?

35
Q

Actions for a failing company

A

Analyse services/products/finances
Review talent/employee temperament
Determine short and long term goals

36
Q

How to cut labour costs

A 
Cross train workers
Cut overtime
4 10hr days not 5 8hr
Give workers stake in business
Contemplate lay offs
Across the board pay decreases
37
Q

Cutting production costs

A 
Invest in tech (automation)
Reduce inventory (JIT)
Outsource
Renegotiate suppliers
Import parts
38
Q

How to examine profits

A

Examine revenues before costs

If sales flat but market share the same this suggests market wide issue

More likely to be a revenue problem

39
Q

Possible reasons for market wide decline

A

1) Overall decline e.g. soda for healthier water (trends)
2) mature market (CDs not being sold as they are replaced by streaming)
3) Substitute e.g. video rental decline as people prefer to go out e.g. movies

40
Q

Market stage and what to do

A

Emerge/growth: R&D, competition and pricing

Mature: manufacturing, costs, competition

Decline: exit strategy

41
Q

Problem with suddenly lowering price

A

If prices lowered an volume suddenly shoots up you will work beyond capacity

Workers doing Overtime = inc cost

MC (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions