Consulting Case Prep Flashcards
[I] Entering a New Market
Main Points?
- Goals? Objectives? Fit in Overall Strategy?
- Current & Future Market?
- State of Mkt? Industry? Product?
- If Entering, Best Way to do so
[I] Entering a New Market
What should you ask about Current Market?
- Size of current market?
- Growth rate? Trends?
- Where is the mkt in its life-cycle?
- Customer? Segmentation?
- Role of Technology in this mkt?
- Role of Govt Policy in this mkt?
[I] Entering a New Market
What to ask State of Market & Product?
- What’s Special or Proprietary about this Product?
- What are the advantages or disadvantages?
- The Major Competitors? Their Market Share? Trends?
- Pricing of our product?
- Barriers of Entry?
- Barriers of Exit?
[I] Entering a New Market
If Entering, What are the Options?
- Start from scratch?
- Acquire an incumbent?
- JV
[II] Industry Analysis
Main Points
- Current Market
- Suppliers
- Future Outlook
[II] Industry Analysis
Points to investigate about Current Market
- What is the size of the market? Growth Trends?
- Part of life-cycle is this industry in?
- Majors Players? Their Mkt Share? Our position?
- Profitability? Margins?
- Drivers (Brand/ Technology/ Size)?
- Role of Technology in this industry?
- Role of Govt Regulation/ Policy?
[II] Industry Analysis
Points to investigate about Suppliers
- Who are main suppliers? Their market share? Trends?
- Do suppliers derive a majority of their revenues from my industry?
- What is going on in their industry? Can they forward-integrate?
- Will they continue supplying to us? Can we backward integrate?
[II] Industry Analysis
Points to investigate about Future Outlook?
- Consolidation in this industry?
- Players entering or exiting this industry?
- Barriers to entry? Exit?
- Substitutes?
[III] Mergers & Acquisition
Main Points
- Goals, Objectives. Why buy?
- Company & Industry due diligence
- Acquisition costs
- Exit Strategy
[III] Mergers & Acquisition
Why buy?
- Access to Market (Improves Brand? Or New Customers?)
- Diversify Holding?
- Preempt competition?
- Tax savings?
- Synergies (Cost, Distribution Networks, Operations)
- Create Shareholder Value
[III] Mergers & Acquisition
Due Diligence
- Size of current Market? Growth? Trends?
- Place in life-cycle of industry?
- Currents Players? Their Mkt Share? Mkt share of acquisition?
- Profitability? Margins?
- Customers? Their segmentation? Trends?
- What will be Competitive Response?
- Will Merger receive legal approval?
[III] Mergers & Acquisition
Price of Acquisition
- What multiple are we paying? Is it fair?
- Are we paying cash or in stock? Or raising debt? Is it affordable?
- Can we service the debt in case economy goes bad?
[III] Mergers & Acquisition
What is exit strategy?
- Holding Period?
2. Are going to resell it out OR break it up and sell its parts?
[IV] Developing a new product. Main points?
- Product
- Customer
- Marketing Strategy
- Financing
[IV] Developing a Product
What are the main Attributes of the product that you need to know?
- What’s special/ proprietary?
- Is it patented?
- What are its advantages/ disadvantages?
- How does it fit in our current product line?
- Similar products/ substitutions?