Case Interview Frameworks

Question 0

Sketch out a framework for entering new markets.

Answer 0

Step 1: Why? Goal? Objective? Fit?
Step 2: Market? Size? Growth? Stage? Customers? Tech? Comp response?
Step 3: Analyze market. Competition? Share? Differentiation? Pricing? Substitutions? Barriers? Risks?
Step 4: Build? Buy? Buddy?

Question 1

What are the 12 case scenarios?

Answer 1

Entry Newmarket.
Industry analysis.
Mergers and acquisitions.
Developing a new product.
Pricing strategies.
Growth strategies.
Starting a new business.
Competitive response.
Increasing sales.
Reducing costs.
Improving the bottom line.
Turnarounds.

Question 2

Draw a diagram to guide questions that analyze an industry.

Answer 2

Step 1: overview:: Life cycle?Growth history? Position? Players? Changes? Driving Forces? Margins?
Step 2: supply chain:: upstream? Down stream? Who? Changes?limitations?
Step 3: future: are people entering or leaving? M&A? Entry and exit barriers? Substitutions? Disruptions?

Question 3

Draw a flowchart to guide analysis of a M&A candidate.

Answer 3

Goals?
Price?
Target(s) due diligence?
Exit Strategy?

Question 4

Draw a diagram for a pricing problem.

Answer 4

Product, pricing strategy, supply and demand.

Competition.
Low cost producer vs differentiation vs market segmentation.
Cost Based Pricing.
Price demand elasticity 
Price based costing.

Question 5

Draw diagram describing how to enter a new market.

Answer 5

1 - Why entering?
2 - Define Market.
3 - go/no go.
4 - Build, buy, partner. Cost benefit analysis.
First define current market conditions. - size, growth, customers
* Identify major players marketshare competition
* Establish how the product is differentiated from the competition
* Identify any barriers to entry

Question 6

What are Michael Porter’s Five Forces?

Answer 6

1 Entrant Threat 
       * Barriers
       * Economies of Scale
       * Capital Requirements
       * Government Policies/Regulatory
       * Access to Distribution Channels
       * Product Differentiation 
       * Proprietary Technology
2 Intensity of rivalry among existing competitors
3 Pressure from substitutions
4 Bargaining power of buyers 
5 Bargaining power of suppliers

Question 7

Developing a new product.

Answer 7

Product, market, customers, financing.

1 Product
Why is it special
Do we have intellectual-property
Direct and indirect competition
Advantages and disadvantages
How does it compare to the rest of our product line

2 Market
How does it impact our existing productline
Are we cannibalizing
Are we replacing an existing product
Does this expand our customer base and sales
Is this a new market are there any barriers
Who are our competitors in this market what are the marketshares

3 Customers
Who are they
How to reach them
How to keep them

4 Financing
Cash equity debt
Time to break even
Will cash generation support the debt
Debt risk interest rates economic downturns

Question 8

Growth strategies.

Answer 8

Identify where the opportunities lie
Evaluate which growth strategies are appropriate

Growth strategies
Increase distribution channels
Increase productline
Investing major marketing campaign
Diversified products and services
Acquire competitors or diversify

Question 9

Starting a new business.

Answer 9

1 Evaluate the markets being entered
2 Business model due diligence

Management.
Market and strategic plans.
Distribution channels.
Products.
Customers.
Financing.

Question 10

Competitive response.

Answer 10

Competitive analysis, response

Competitive analysis.
New products.
Market changes.
Marketshare.

Competitive response.
Acquire.
Merge. 
Copy.
Innovate.
Poach.
Advertise

Question 11

Increasing sales.

Answer 11

Evaluate market, choose sales strategy

Increase volume. - Customers, channels, marketing
Increase amount of each sale
Increase prices
Seasonal balance

Question 12

Reducing costs.

Answer 12

Breakdown costs
Investigate remediate
Check competition
Tech to improve Efficiency

Cost classes
Internal: wages, suppliers, materials, economies of scale, increased support systems.
External: economy, interest rates, regulations, transportation or shipping strikes.

Question 13

Improving the bottom line.

Answer 13

Profits = revenues - costs

Economy
Market
Revenues
Costs

Volume
New markets
New distribution
Salesforce
Marketing
Reduce prices/increase prices
Customer service

Question 14

Turnarounds.

Answer 14

Learn about company
Review services, products, finances.
Secure funding
Review Talent and culture
Determine short-term/long-term goals
Business plan
Reassure clients, suppliers, distributors
Prioritize goals
Use small goals for moment And confidence

Question 15

What are the five parts of the value chain?

Answer 15

Raw Materials
Operations
Delivery
Marketing & Sales
Service

Question 16

Describe the BCG matrix.

Answer 16

2*2
Market Share vs Growth

• | ?
  ——
  $ | X

Question 17

What are the seven S’s?

Answer 17

Strategy
Structure
Systems

Style
Skills
Staff
Shared values

Question 18

Give a demographic breakdown by quartiles and quintiles.

Answer 18

0-14 65M
15-29 66M
30-44 64M
45-60 66M
61++ 59M

0-19 86M
20-39 86M
40-59 86 M
60++ 59M

Question 19

List several ways to compare two competitors in a market.

Answer 19

Market Share Units
Market Share \$\$$
Costs 
Gross margins
Operating margins
Profits
Cash
Distribution
Customer segments
Intellectual property
Sales and Marketing