Brainscape's Knowledge GenomeTM

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


See full index

CONSULTING > Consulting > Flashcards

Consulting Flashcards

1
Q

What the 4 steps of a business case

A
  1. Listen and Clarify :
  2. Structure
  3. Analyse
  4. Conclude
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What do you do in step 1 of a business case?

A

Listen and Clarify : Ensure complete understanding biz issue
1 Listen carefully
2Take notes
3Qs
4Take time to evaluate the info

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

What do you do in step 2 of a business case?

A

Structure : Develop approach to solve problem
1 Structure problem
2 Identify key issues and prioritise
3 Formulate initial hypothesis
4 Say structure and hypothesis

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

What do you do in step 3 of a business case?

A

Analyse: Ask info to test hypothesis
1. Ask Qs, collect info
2. Develop test, refine hypothesis
3 Iterate
4 Hone in on solution
5 Verbalise thought process

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

What do you do in step 4 of a business case?

A

Conclude: Synthesis findings to reccos
1. Summarise findings - draw out key facts. n.b. don’t recap
2. Make reccos
3. Consider risks
4. Add next steps

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

What is the the profitability equation

A

Profits = Revenues - Costs
Revenues = P X Q
Costs = FC + VC

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

How do you calculate the break even quantity

A

Breakeven Q=FC/ (P- VC)

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

What factors impact price

A

Market power
Price elasticity
product diffs
Opportunity to have Differential prices: Airlines /concert seats
Methods of pricing:
Cost Plus - travel
Cost Minus - Tesco cards
Market price
Cost matching - Price match
Market Based - Crude oil
Brands - Designer clothes

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

How can we segment the factors that impact volumes

A

External factors & Internal factors

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

External factors that affects price

A

1 Competition
Postion/image
customers
profitability
future plan
Substitutes/ compliments
market forces

2 Customer ; need (latents vs demonstrated)
Price sensitivity
Segmentations - product extension

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

Internal factors that affect volume

A

Logistics
Manufacturing capacity
Distribution channels

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

What are the Growth strategies

A

–> existing prods to existing customers
–> existing to new
–> new to existing
–> new to new

nb Extensions are not new products

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

What are considerstions to do with Cost

A

VC vs FC
Short run vs log run
% Capacity utlisation vs impact on unit cost
Weighting of cost
COGS: labour, material overheads
SGA, marketing, sales & distribution, Gen&admin, R&D

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

Costs for a plane

A

Inventory
Maintenance
Depreciation

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

What are the issues to

A

1 What is the industry structure
2. Whatare the relevantmarket conduction
3Competition
4 Suppliers
5 Barriers to entry/ exit
6 Current and pot. substitutes

Other considerations:
Key success factors : tech leader ship, consumer insight, brand equity
trends affecting benefits + cost drives`

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

What are the types of industry structures

A

Competitive
Monooply
Oligopoly

17
Q

What factors do you consider when thinking about the market

A

Size
Growth
Profitability
Segmentation
Regs
Tech change

18
Q

What factors do you consider for evaluation competition

A
  1. Key players
  2. Industry Concentrations
    3 Key Comp market strategy positions
    4 Market share split
    5 How differentiated are Competitors
    6 Describe price competition
    7 Relative cost bases
    8 Competitor vertical or horizontal integrations
19
Q

What factors do you consider for Suppliers

A

1 Industry production chain
2 Buy side vs sell side - Who and and how powerful?
3 economies of scale/ synergies
4 alternatives
5 trends
6 supply stability/continutity

20
Q

What factors do you consider for Barriers to entry/exit

A

How signficant? - high learning curves, FC, access to distribution
How often entry/exit?
Competitive response
Steep learning curve?
Brand equity importance
Regulated industry?

21
Q

What are the two approaches for Market Entry

A

1= 3Cs
Customer
Competitors
Capabilities

2=Current Business vs Proposed Business

22
Q

What factors to explore in Market Entry

A

Size Market
Understand competition
Analyse Customer needs
Identify gaps in customer needs
match current vs need strengths
evaluate a barriers to entry
Evaluate methods of entry
Previous entry track record & why?

23
Q

How do you define the Market in Market Entry

A

Industry infrastructure
Assess size, profits & growth –> ask Market capacity
Identify trends ( regs, tech, demographics)
Identify Key success factors
Evaluate risks

24
Q

How do you define the Competition in Market Entry

A

Key plays
Competitive situations (concentrations and intensity)
Share + positions
Core competencies (Strength, weakness resources)
Competitive response
Differentiation
Cost structure

25
Q

How do you analyse the Customer needs in Market Entry

A

Segmentation (size, profitability, share growth)
Drivers of purchases ( product, price, promos, place`)
Power in the market

26
Q

How do you evaluate Company strengths vs new market neeeds in a New Market Entry

A

Core competencies
Productservice portfolio:
differentiation
,management
workforce
key skills
resources estabilished

2 potential positioning and price position
Source of volume - steal share? expand capacity
Niche or mass strategy?
Cost structure - scale vs scope
CAPEX req
Returns

27
Q

How do you evaluate the barriers to market entry

A

1 customer related:
- product differentiation
-brand loyalty
switching costs
access to distribution

2 non customer related
- IP
economies of scale
Capital requirements
XP -
Regulation

28
Q

How do you evaluate the methods of market entry

A

1 Build Acquire Partner - Costs & risks

29
Q

How do you evaluate Capacity Expansion

A

1 Benefit Demand + potential revenue
2 Evaluate means of expansion - Upgrade vs new
3 Market considerations ie regs
4 Impact on demand & pricing: will expansion create XS?
5 Competitive response
6 Cost vs Benefits
7 Alternatives: investigate other options: ie outsource, lease, acquisitions existing plants

30
Q

What issue do we consider when considering how to expand capacity

A

Availiabilty of locations
Customer proximity
Transport cost
Labour Costs
Tech Req
Time Required
Capital costs of new vs existing
CAPEX

31
Q

What are the steps in structuring an acquisition case

A

1 understand our biz
2 why buy new biz? what are synergies? - Clarifying question
3 Competitive
4 Organisational issues?
5 NPV cost <benefits
6 Alternatives: other targets;natural growth

32
Q

What should you under stand about aqcuiring company

A

Core competencies
cost structure
current industry structure

33
Q

Why acquire a a company

A

1 More resources: increase cacpcity, distribution, broaden products improve tech human cap, brand name, customers (network affect)

2 Decrease costs : Economies of scale,Economies of scope (brand, distribution, advertisement sales force management , talent etc.

3) quicker learning curve

4 ) other strategy

34
Q

What Organisational issues should be considered for M&A

A

will synergies happen?
Preemptive changes to help integrations
Can firm do integration now?

35
Q

If vertical is M&A vertical ( new biz) or horizontal ( Capacity)

A

Why biz separation
Coordination cost of using market
how to enhance benefits or reduces costs
how does ownership add value
Organisations issues ( eg agency costs)

36
Q

What is general approach to Investment case

A

Understand current biz and industry
Why biz wants to invest?
Do financial analysis (NPV analysis)
Other general considerations (competitive response, options value - follow on opportunities)
Timing: should the investment be made now
other strategic considerations
alternatives to making investment

37
Q

How do you do a financial evaluation for investments

A

1 Upfront cost
2 Cash in flows and outflows over time
Opportunity costs (best option-chosen option)
- upfront and over time
Costs of capital
Upsides / down side to investment ( sensitivity analysis)

CONSULTING (1 decks)

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