Consulting Case Prep Flashcards

1
Q

[I] Entering a New Market

Main Points?

A
  1. Goals? Objectives? Fit in Overall Strategy?
  2. Current & Future Market?
  3. State of Mkt? Industry? Product?
  4. If Entering, Best Way to do so
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2
Q

[I] Entering a New Market

What should you ask about Current Market?

A
  1. Size of current market?
  2. Growth rate? Trends?
  3. Where is the mkt in its life-cycle?
  4. Customer? Segmentation?
  5. Role of Technology in this mkt?
  6. Role of Govt Policy in this mkt?
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3
Q

[I] Entering a New Market

What to ask State of Market & Product?

A
  1. What’s Special or Proprietary about this Product?
  2. What are the advantages or disadvantages?
  3. The Major Competitors? Their Market Share? Trends?
  4. Pricing of our product?
  5. Barriers of Entry?
  6. Barriers of Exit?
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4
Q

[I] Entering a New Market

If Entering, What are the Options?

A
  1. Start from scratch?
  2. Acquire an incumbent?
  3. JV
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5
Q

[II] Industry Analysis

Main Points

A
  1. Current Market
  2. Suppliers
  3. Future Outlook
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6
Q

[II] Industry Analysis

Points to investigate about Current Market

A
  1. What is the size of the market? Growth Trends?
  2. Part of life-cycle is this industry in?
  3. Majors Players? Their Mkt Share? Our position?
  4. Profitability? Margins?
  5. Drivers (Brand/ Technology/ Size)?
  6. Role of Technology in this industry?
  7. Role of Govt Regulation/ Policy?
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7
Q

[II] Industry Analysis

Points to investigate about Suppliers

A
  1. Who are main suppliers? Their market share? Trends?
  2. Do suppliers derive a majority of their revenues from my industry?
  3. What is going on in their industry? Can they forward-integrate?
  4. Will they continue supplying to us? Can we backward integrate?
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8
Q

[II] Industry Analysis

Points to investigate about Future Outlook?

A
  1. Consolidation in this industry?
  2. Players entering or exiting this industry?
  3. Barriers to entry? Exit?
  4. Substitutes?
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9
Q

[III] Mergers & Acquisition

Main Points

A
  1. Goals, Objectives. Why buy?
  2. Company & Industry due diligence
  3. Acquisition costs
  4. Exit Strategy
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10
Q

[III] Mergers & Acquisition

Why buy?

A
  1. Access to Market (Improves Brand? Or New Customers?)
  2. Diversify Holding?
  3. Preempt competition?
  4. Tax savings?
  5. Synergies (Cost, Distribution Networks, Operations)
  6. Create Shareholder Value
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11
Q

[III] Mergers & Acquisition

Due Diligence

A
  1. Size of current Market? Growth? Trends?
  2. Place in life-cycle of industry?
  3. Currents Players? Their Mkt Share? Mkt share of acquisition?
  4. Profitability? Margins?
  5. Customers? Their segmentation? Trends?
  6. What will be Competitive Response?
  7. Will Merger receive legal approval?
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12
Q

[III] Mergers & Acquisition

Price of Acquisition

A
  1. What multiple are we paying? Is it fair?
  2. Are we paying cash or in stock? Or raising debt? Is it affordable?
  3. Can we service the debt in case economy goes bad?
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13
Q

[III] Mergers & Acquisition

What is exit strategy?

A
  1. Holding Period?

2. Are going to resell it out OR break it up and sell its parts?

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14
Q

[IV] Developing a new product. Main points?

A
  1. Product
  2. Customer
  3. Marketing Strategy
  4. Financing
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15
Q

[IV] Developing a Product

What are the main Attributes of the product that you need to know?

A
  1. What’s special/ proprietary?
  2. Is it patented?
  3. What are its advantages/ disadvantages?
  4. How does it fit in our current product line?
  5. Similar products/ substitutions?
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16
Q

[IV] Developing a product

What are the main points about Marketing Strategy?

A
  1. Replacing an existing product?
  2. Cannibalize any of our existing products?
  3. Does it expand our cust base/ increase sales?
  4. If new market, Barriers to Entry?
  5. Major players? Their mkt share? Trends?
  6. Competitive response of incumbents?
17
Q

[IV] Developing a product

What are the main points about Customer?

A
  1. Who are the customers for this product? What is their segmentation? Trends?
  2. How do you reach them? Can you use internet?
  3. How do you retain them?
18
Q

[IV] Developing a product

What are the main points about Financing?

A
  1. How do we fund this product?
  2. What is the best allocation of funds?
  3. Can we support the debt burden?
19
Q

[V] Pricing Strategies

Main Points to consider

A
  1. Product
  2. Market/ Industry/ Competition
  3. Clarify pricing objectives
  4. Cost-based Pricing
  5. Price-based Costing
  6. Competitive Pricing
20
Q

[V] Pricing Strategies

Main Points to ask about the Product

A
  1. What is proprietary/ special about the product? Do we’ve patent?
  2. What are the advantages/ disadvantages of the product?
  3. How does this product fit in your product line? Cannibalizing?
  4. What are the R&D costs?
  5. Are there similar products in the market? Substitutes?
21
Q

[V] Pricing Strategies

Main Points to ask about the Market

A
  1. Size of Mkt? Trends?
  2. What part of life-cycle is this industry?
  3. Who are the customers? Segmentation?
  4. Role of technology? Govt policy in this industry?
22
Q

[V] Pricing Strategies

Main point to ask about pricing objectives

A
  1. Pricing to win market share or make profits
23
Q

[V] Pricing Strategies

Cost-Based Pricing

A
  1. What does it cost to make?

2. What are other costs associated? Figure out the break-even point

24
Q

[V] Pricing Strategies

Price-Based Costing

A
  1. What is it worth to the customer compared to other things?
  2. Is this a must-have product?
  3. How much is the customer willing to pay?
  4. Supply / Demand
25
Q

[V] Pricing Strategies

Competitive Pricing

A
  1. How much is the competition pricing similar product?

2. What are their profit margins?

26
Q

[VI] Growth Strategies

Main Points

A
  1. Learn about the company
  2. Learn about the industry
  3. Discuss Growth in different parts
27
Q

[VI] Growth Strategies

Main points to ask about company

A
  1. What products/ services you offer? What’s unique/ proprietary? Advantages/ Disadvantages of our products & services
  2. What is your goal or objective?
  3. Are you a public or private company?
  4. What are your major divisions? Profitability? Profit Margins?
  5. Who are your customers? Customer segmentation?
28
Q

[VI] Growth Strategies

Main points to ask about industry

A
  1. Size of market? Growth rate? Trend?
  2. What point in the lifecycle is this industry?
  3. Major players? Segmentation? Trends?
  4. Consolidation/ M&A? Entry/ Exit of Players?
  5. Are we lacking in any aspect against our competitors
29
Q

[VI] Growth Strategies

Discuss Growth in different areas

A
  1. Increase product line?
  2. Increase distribution networks?
  3. Invest in marketing campaign?
  4. Offer installments to buyers?
  5. Acquire competitor?
  6. Pay dividend? Buy-back debt?
  7. Spend on R&D? Spend in buying PP&E?
30
Q

[VII] Starting a New Business

What are the points to consider?

A
  1. Industry
  2. Product
  3. Customers
  4. Management
  5. Distribution Channels
  6. Finance
31
Q

[VII] Starting a New Business

Points to ask about the industry

A
  1. Size of Market? Growth? Trends?
  2. What point in lifecycle is industry?
  3. Who are main competitors? Their market share? Trends? Profitability?
  4. Barriers to entry?
32
Q

[VII] Starting a New Business

Points to ask about product

A
  1. Proprietary/ Special? Do we have patent?
  2. Advantages/ Disadvantages of this product?
  3. Pricing of the product?
  4. Use of technology/ internet to deliver/ manufacture this product
33
Q

[VII] Starting a New Business

Points to ask about customer

A
  1. Who are our customers? Segmentation? Trends?
  2. How will be reach the customers? Over the internet?
  3. How do we retain them?
34
Q

[VII] Starting a New Business

Points to ask about Management

A
  1. Who’s in the management?
  2. What’s their core competency?
  3. Have they worked together?
35
Q

[VII] Starting a New Business

Points to ask about Distribution Channels?

A
  1. What are our distribution channels?
36
Q

[VII] Starting a New Business

Points to ask about Finance?

A
  1. How are we financing this project?
  2. Best allocation of funds? over what time?
  3. Can we service the debt?
37
Q

[VIII] Competitive Response

Main Points

A
  1. Our company

2. The competitors