Brainscape's Knowledge GenomeTM

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


See full index

Consulting > Frameworks > Flashcards

Frameworks Flashcards

1
Q

Bottom-Up Market Sizing

A
  1. What customer/product segments exists?
  2. How many purchases are there “an hour” by segment?
  3. How much is each purchase?
  4. How many hours/year do they operate? (50 weeks/year or 350 days)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Top-Down Market Sizing

A
  1. How many people/households will purchase?
  2. How much will they purchase?
  3. How often will they purchase?
  4. How much will they spend?
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Key Drivers on Revenue - Price

A

Overall Market Demand, Competitors, Customers

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

Key Drivers on Revenue - Quantity

A

Overall Market Demand, Competitors, Customers, Channels

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

Key Drivers of Cost - Fixed Cost

A

Fixed Labor, Marketing, Overheads, Interest/Depreciation, Taxes, Other Fixed Costs

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

Key Drivers of Cost - Variable Costs

A

COGS, Variable Labor, Distribution Costs, Other Variable Costs

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

Price - Overall Market Demand

A

Is product/service becoming a commodity with multiple providers offering identical options?
Is fundamental demand decreasing for the product? (Typewriters)

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

Price - Competitors

A

Are they driving price down, offering cheaper products?

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

Price - Customers

A

How much buying power do they have?

Are they negotiating for lower prices through bulk discounts?

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

Quantity - Overall Market Demand

A

Is it decreasing/increasing?

If decreasing, then quantities decrease across the whole market (client and competition).

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

Quantity - Competitors

A

Are they stealing customers (market share)?

Is their product more attractive?

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

Quantity - Customers

A

Are we meeting their needs?
Have their needs changed, or have they found a substitute that better meets their needs?
Are we missing out on targeting an attractive customer segment?

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

Quantity - Channels

A

Are we marketing/selling through channels relevant to our key segments?
If our consumer buys on the Internet and we sell retail, we’re inefficient.

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

Fixed Costs - Fixed Labor

A

Have salaries of management or required staff increased?

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

Fixed Costs - Marketing

A

Has the client increased spending without seeing related increase in sales?
Is there opportunity to use marketing budget more efficiently?
Are there more appropriate channels? Appropriate level of spending?

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

Fixed Costs - Overhead

A

Are rent and utilities increasing?

Can we decrease without impacting operations?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Fixed Costs - Interest/Depreciation

A

On mortgages, loans, etc… are rates increasing?

Has client made a major capital investment?

18
Q

Fixed Costs - Taxes

A

Has the client moved to a different tax bracket?
Have they opened a facility in a new location?
Are there opportunities to shift to lower tax options?

19
Q

Fixed Costs - Others

A

Insurance, etc. are costs increasing?

20
Q

Variable Costs - COGS

A

Are costs increasing due to market factors like increasing energy prices?
Can we negotiate with suppliers or switch to lower cost options?

21
Q

Variable Costs - Variable Labor

A

Dependent on how much is produced or serviced?

Have wages increased without a corresponding price increase?

22
Q

Variable Costs - Distribution Costs

A

Are costs increasing, say, because of changes in transportation?

23
Q

Variable Costs - Other

A

Storage, packaging, variable utilities

24
Q

Market Study - Overall Market

A

Is market demand increasing or decreasing?
If so, are some segments growing/shrinking disproportionately?
Have substitutions emerged?

25
Q

Market Study - Competitors

A

Who are they?
Have there been new entrants (locally or from outside area/different verticals)?
What’s our market share (by segment)? Is it changing?
Is the market fragmented?

26
Q

Market Study - Customers

A

What are their needs and are we addressing them?

Are their needs, demographics, or regions shifting (or is one accounting for most of the shift?

27
Q

Market Study - Company

A

Has the capacity of the company changed?
How is the sales force incentivized (or are they?)
What is the manufacturing process?
Does company have a high performance culture?

28
Q

Market Study - Product/Service

A

General: What are the prices of our products?
Have there been any price changes?
Have there been decreases in average spend for a particular segment?
Does our product/service have differentiating factors that are attractive to our customers? Has there been in a shift in quality/merits?

Channels:
Which distribution channels do we use?
How do they compare in pricing/penetration?
Are there opportunities to shift share or introduce new channels?
Is our marketing message, channel, spend effective?

29
Q

M+A - Market Assesment

A

Size of overall market, growth of the market, and competitive landscape

30
Q

M+A - Company Assesment

A

Top Performer, Revenue growth (historical and projected), profits, profit growth (historical and projected), market share (increasing/decreasing)

31
Q

M+A - Post Acquisition Strategy - Revenue

A

Growth, Synergies

32
Q

Post Acquisition Strategy - Revenue - Growth

A

Can you increase prices/spend? Can you increase quantities - frequency, purchase volume, # of customers

33
Q

Post Acquisition Strategy - Revenue - Synergies

A

If you can combine operations with another company, can you piggyback on what one company does well to improve sales of another company?

34
Q

M+A - Post Acquisition Strategy - Costs

A

Reduction, synergies, exit strategy

35
Q

Post Acquisition Strategy - Costs - Reduction

A

Can company decrease costs without adversely affecting operations?
Can it maintain current costs but still grow top line?

36
Q

Post Acquisition Strategy - Costs - Synergies

A

If the client plans to integrate the target into a parent or another holding company, can you decrease operation costs?
Leverage economies of scale?

37
Q

Post Acquisition Strategy - Costs - Exit Strategy

A

After client has increased profits, what do we plan to do?

Sell? IPO? Continue to operate? Spin-off? Expand?

38
Q

M+A - Risks/Benefits

A

Management team, cultural fit, complications, defensive strategy

39
Q

M+A - Risks/Benefits - Management Team

A

May be willing to pay more for a strong team, or better one

40
Q

M+A - Risks/Benefits - Cultural Fit

A

Concern of integrating departments with different structures - 2 sales departments with different compensation structures

41
Q

M+A - Risks/Benefits - Complications

A

Government regulations can hinder the buying process

Competitor growth or aggression would affect buyer’s decision or price point

42
Q

M+A - Risks/Benefits - Defensive Strategy

A

May be willing to pay more to purchase intellectual property to keep it from competitors

Consulting (7 decks)

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