notes

Question 1

When to use frameworks?

Answer 1

When we need to make a decision.

Question 2

Every brainstorm is…

Answer 2

an organised list of hypotheses

Question 3

Every framework is…

Answer 3

a list of questions you need to answer to make a decision (questions are derived from the hypotheses)

Question 4

“would it be worth it” means

Answer 4

would it be worth it financially? will they make money?

Question 5

interviewers want us to either

Answer 5

1) structure problems
2) draw insights from data

Question 6

two things to have in mind

Answer 6

1) what is the key issue I’m trying to solve
2) what are the best tools to solve it

Question 7

production bottleneck case

Answer 7

x

Question 8

what to do when talking to someone who is much more experienced in an industry than you
(estimations)

Answer 8

tree structure of size of that market
generic profit tree for a company in that industry

find the growth drivers and profit drivers of that industry

Question 9

what is teh customers price sensitivity
what are teh customer segments

Answer 9

x

Question 10

What is a potential market

Answer 10

total market that could exist (people that would consume if you do the right thing)

Question 11

market size of tvs
market size of bubble gum

Answer 11

replacement rate of TVs in households
penetration rate of bubble gum

Question 12

estimate how many shoes a person buys in a year

Answer 12

use replacement rate of formal shoes to determine how many formal shoes they buy per year

3 formal shoes in their closet and how frequently they are replaced is how many shoes they buy per year

COULD SAY:
I am going to find the replacement rate of the formal shoes as a function of the lifetime of the shoe
OR
I’m going to find the replacement rate of the formal shoes as the reverse of lifetime of formal shoes (1/lifetime)

= better because makes clear to interview what you are doing (explicitly explaining algebra)

Question 13

Using assumptions to figure out how much gum the average consumer consumes per year
X???

Answer 13

I chew 5/day but I’m above average (53 pieces/week)
High frequency gum chewers maybe 20 pieces/week
Low frequency gum chewers maybe 4-5/week
“Given that low frequency consumers are more frequent, I would say the average person consumes around 8-10 pieces/week “????? X

so average person chews 8 pieces/week so 8x50=400 400 pieces/year

rough logic:
SOME PEOPLE CHEW MORE, SOME CHEW LESS, they have a different distribution (there are more people in one category than the other eg. more people are low frequency chewers)