Cases Flashcards

1
Q

Main principles for Market Entry

A
  1. Understand company currently
  2. Understand market of interest
  3. Evaluate Financials
  4. Economic Implications
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

ME:

Company Currently

A

Revenue, Strengths and weaknesses, Product mix, Customers, Distribution, Finances

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

ME:

Market of Interest

A

Growth rate, Customers, Stage of Life Cycle, Trends, Key players, Substitutions

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

ME:

Financials

A

Barrier costs (investment costs), Fixed/variable costs, Revenue, years to breakeven.

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

ME:

Economic Implications

A

If entering: How, Competitive advantage, timing and speed, orgnaization. If not, what can we do?

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

Profitability Formula

A

Profit = Revenue - Costs

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

Profit:

Revenue Breakdown

A

Revenue per unit x units sold. Has either changed? Over what time period?

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

Profit:

Questions to ask about Revenue

A

Is this an everyone thing or an us thing? Competitor, Decreased demand? Decrease quality?

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

Profit:

Cost breakdown

A

Cost per product (fixed and variable costs. (Variable = cost per unit x unit sold). Has anything changed?

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

Profit

Questions to ask about Cost

A

Is this an us thing or an everyone thing?

Materials gone up? Labor gone up?

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

Main principles of growth strategy

A

Products
Price
Marketing
Financials

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

GS:

Products questions

A

Product mix and lifecycle, state of those industries, biggest potential, driver of customer satisfaction, growth rate compared to competition.

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

GS:

Price questions

A

Price in comparison to competition, customer price sensisitvity

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

GS:

Marketing questions

A

Current marketing and sales strategy vs competitors

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

GS:

Financials questions

A

Current funds available for growth, shareholders demands

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

GS:

Growth strategies

A

Increase market penetration (market campaign), develop a new product for the same market, use current product in new market, or make an entirely new product for a new market.

17
Q

Main principles of mergers and acquisitions

A

Analyze which and why acquiring, the target industry and market, the target company, and the feasibility

18
Q

M+A:

Questions for analyzing client company

A

Why acquiring? - strategic, defensive, synergistic (cost saving, etc), undervalued (client can bring target company potential value). Which industry, what other buisnesses does the client have? Clients key customers

19
Q

M+A:

Questions about target industry

A

Where does company fit within larger market, how big is market, growth of market, focus (high volume or high margin), barriers to entry, competitors, profitability of competitiors, possible threats.

20
Q

M+A:

Questions about target company

A

Company market share, company growth, company profit, synergies, key customers, valuation

21
Q

M+A:

Questions about feasibility

A

Is target open for acquisition, are there funds available, client experienced in integration, risks

22
Q

Competitive Response: Relevant questions

A

What is the nature of the product and how does it differ from what we offer? (how important are new features, what will they let the competitor do, why is it being introducted?), what market segment is addressed by new product, does client have resources to be used in new market/product

23
Q

Competitive Response: Recommendations

A
  1. Make current product more attractive: redesign, change market segment, increase marketing, build loyalty, cut prices
  2. Introduce new product: Acquire different products: acquire competitor/capabilities, or copy with resources
  3. Do nothing
24
Q

Pricing: main concepts

A

Investigate the company and the product and then choose a strategy.

25
Q

Pricing: Investigating company

A

What products does the company cell, where does company stand in market.
What is companys key objective? (profit, market share, growth, brand position, competitive response) clarify before starting analysis.

26
Q

Pricing: Investigating product

A

How does product differ from competition, what are alternatives/substitutes, what stage lifecycle, is supply and demand foreseeable.

27
Q

Pricing: Pricing strategies

A
  1. Competitive analysis- price based on competitors (are there comparable products, how do they compare, how are they priced?)
  2. Cost-based- breakeven + profit. Considered outdated
  3. Price-baseed: determine value of product in customers eyes.
28
Q

Valuation: Methods

A

Discounted cash flow or industry multiple method

29
Q

Valuation: Discounted Cash flow

A

Divide projected annyal cash flow by interest rate.

30
Q

Valuation: Industry multiple method

A

Ratio of actual firm valuation to book value of same firm. Do for multiple industry players and find average.