Frameworks

Question 1

Pénétrer un marché

Answer 1

1.current market (size, growth rate, customer segmentation)
•competition
•product differentiation
•barriers to entry/exit

2. Yes, then how:
   •start from scratch
   •acquisition
   •joint venture

Question 2

Industry analysis:

Answer 2

1. Current market: 
 •performance 
 •life cycle 
 •client’s position within the industry 
 •major players and market shares 
 •industry changes (news players, regulation) 
 •drivers (brand, size, technology) 

2. Suppliers
   •how many
   •product availability
   •what’s going on in their market
3. Future:
   •are players entering or leaving the market
   •m&a
   •barriers to entry, exit ?

Question 3

Merger and acquisition:

Answer 3

1.objective/strategy: 
•increase market access 
•diversify their holdings 
•pre-empt the competition 
•Gain tax advantages 
•incorporate synergies: culture, marketing, op 

2.price :
•is the price fair ?
•can we afford it ?
•how are we paying for it ?

3. Due diligence. Research the company and industry
   •what kind of shape is the company in?
   •how secure market and customers?
   •how will the competition respond to the acquisition ?
   •are there any legal reasons why we can’t or shouldn’t acquire it ?
4. Exit strategies:
   •how long are they planning to keep it ?
   •did they buy to break it up and sell off parts of it ?

Question 4

Developing a new product:

Answer 4

1.The product:
•propriety ? Are the similar products ? Substitution?
•parented ?
•advantages/disadvantages

2.market strategy:
•how does affect our existing product line
•are we cannibalizing one of our existing products?
•are we replacing an existing product ?
•how will this expand our customer base and increase sales ?
•competition response.

3.customers: 
•who are they? 
•how can we best reach them ? 
•can we reach them through the internet ? 
•can we ensure that we retain them? 

4.Financing:
•How is the project being funded ?
•best allocation of funds?
•can we support the debt ? (What If interest rates change ? Economy sours ?

Question 5

Pricing strategy:

Answer 5

1.Investigate the product:
•what’s special about the product ?
•Are there sillier products out there? Price?
•where are we in the growth cycle of this product ?
•how big is the market ?
•RD costs

2. Choose pricing strategy:
   •cost based
   •price based
   •competition

Question 6

Growth strategies:

High cash reserve, how can we best use that money to grow the company ?

Answer 6

1.Determine the direction of the question(focus on a certain product, a division of the company overall?)
•how are we growing relative to the industry?
Is the industry growing ?
•are our prices in line with compet
•which segment of our business have the highest futur potential?

2. Choose growth strategy: 
•Increase distribution channels
•Increase product line
•Invest in major in marketing campaign
• diversify products or services offered
•Acquire can competition or a companion and different industry

Question 7

Staring a new business:

Answer 7

1.Starting a new business encompasses entering a new market as well:
• competition
•Market size and share
•Barrier

2.The way:
•Management (the team, core competencies, advisory board ?)
•Market & strategic plans (barrières to entry, major players, competition response)
•distribution channels
•products (product and technologY, disadvantage)
•customers
•Finance

Question 8

Competitive response:

Answer 8

1.competitive analysis
•what’s the new products how it is different from ours
•what has the competitor done differently? What’s changed?
•market shares and evolution

2.responses: 
•acquire competition 
•merge with the competitor 
•copy the competitor 
•hier the competitor’s management 
•increase our own profile with pr campaign

Question 9

Increasing sales:

Answer 9

—> doesn’t mean increasing profits:
1.what can be done:
•we ca industry
•our market share
•costumer surveys to cover what they want from us
•our prices ?
•what have the competition done in marketing and product development ?

2.4 easy ways to increase sales: 
•increase volume 
•increase amount of each sale (get each buyer to buy more) 
•increase prices 
•increase seasonal balance

Question 10

Reducing Costs:

Answer 10

1. ask a breakdown of the costs
2. if any cost seems out of line, investigate why
3. benchmark the competitors
4. Determine whether there any labor saving technologies that would help reduce costs

Internal costs;: union wages, suppliers, materials, economies is scale, increases support systems

External costs: economy, interest rates, gvt regulations, transportation/shipping strikes

Question 11

Increase profits

Answer 11

1.Aleays look at the revenue side first. Until you have your revenue streams, you can’t know where best to cut costs

• what are the revenue streams?
• what percentage of the total revenue does each stream represent
• Does anything seem unusual in the balance of percentages

Question 12

Turnarounds:

Company in trouve you’ve been brought to save it. What do you do?

Answer 12

1.Gather info: 
•tell me about the company 
•why is it falling ? Bad products, bad management, bad company 
•tell me about the industry 
•are our competitor facing same pb? 
•pubic or private held ? 

2. Choose actions:
   •secure sufficient financing so the plan has a chance
   •review talent and temperament of all employees
   •déterminé short term and long term goal
   •devise a business plan
   •visit clients, suppliers and distributors to reassure them
   •prioritize goals and get some small success under your belt asap to build confidence