招群专属大礼包1.0-casebook wharton值得信赖一站式职业发展教育平台

小灶计划值得信赖的一站式职业发展教育平小灶是一个面向大学生的一站式职业发展教育平台。小灶品牌旗下包括以［小灶计划］、［名企实习］为代表的四个，以小灶学徒项目为代表的线下系列，以及即将于2016年8月正式上线的职业发展课程(ww-wxiaozaoorg小灶由杜克大学创业团队创建，以杜克大学－新加坡国立大学专利脑科学技术为教育体系建设，以顶尖MBA职业教育理念为基础，结合创始团队超过40年的职场经验，打造国内最高质量的大学生职业发展教育平台。小灶计划（订阅号）快速获取求职干货

小灶学徒顾问（服务号）求职问题有问必答WhartonConsultingClubPracticeCaseIntervieweConsultingClubThismanualistheresultofsignificantcontributionsbyyourfellowclassmates,whohavecontributedrealcasequestionsfromthe20042ndyearrecruitingseasontoassistyouinpreparationforconsultingcaseinterviews.Manystudentsareinitiallydauntedbytheprospectofpreparingforcaseinterviewswhichareforeigntoanythingtheyhavepreviouslyexperienced.Inourviewhowever,thereisnoneedtofeeloverwhelmed.Preparingforcaseinterviewsismuchlikelearningtoplayanewsport.Until,youactuallygetoutandstartplayingitcanbedifficulttounderstandwhatisgoingon,butonceyougetintoit,itallcomestogetherwithpractice.Literallyvolumeshavebeenwrittenonthetopicofcaseinterviewsandwestrongly mendthatyoureviewatleastoneofthemanypublicationsavailable.Readilyavailableresourcesincludethe2003WhartonCasebook,whichincludesadetailedintroductiontotheCaseInterviewprocess,DavidOhrvall’sCracktheCase,ortheVaultGuidetoCaseInterviews.Readingthesetextshoweverisverymuchlikereadingatextonhowtoplaybasketball–itmightgiveyouabasicunderstandingforhowtoplaythegamebutuntilyougooutandshootafewjumpshotsyouwon’tbemuchofaplayer.Itiswiththatinmindthatwehavefocusedthisyear’sguideonactualcases,includingquestionsfromrealinterviewstogetherwiththeinterviewee’ssolutionsupplementedbycommentsandmendationsfromtheCaseBookEditorialTeam(whohavehadthetimetoconsiderpreferredsolutionsandframeworksawayfromthepressureofalivecaseinterview)OurReadatleastonepreliminaryguide(moreifyoufeelFormasmallgroupof3-4memberswithsimilarexpectationsandtimeGettogetherregularlytopracticecaseschoosingcasesofasmanydifferenttypesandfromasmanydifferentsourcesaspossible(allinterviewersaredifferentandyouneedtogetusedtoverydifferentstylesofinterview)Givehonestfeedbackoneachothersperformance(youwouldratherfindoutaboutyourerrorsnowratherthaninarejectionfromaliveinterview)GetusedtothinkingoutloudandstructuringyourthinkingDoasmanycasesasyouneedtofeelcomfortablewiththeprocess.Forsomepeoplethiswillbetenforothersitwillbesixty.Onlyyoucanlwhenyouarereallygettingagriponthings.Remembertouseagooddoseofcommonsense.Caseinterviewsareaboutrealworldsituations,youwillnormallyhaveabettersensefortherightanswerthanyouinitiallygiveyourselfcreditfor.Yourownexperienceandyourfirstyearsubjectsshouldequipyouwelltoknowwhattheissuesare.GoodBen RichardVice–Member CaseBookCASECaseFirm–1OpticalBCG–Rd32HoldingBoozAllen–Rd53BoozAllen–Rd74PerpetualBain–Rd95McKinsey–Rd6PartyBCG–Rd7RazorsandBCG–Rd8BCG–Rd9ChewingATKearney–RdAlcoholBoozAllen–RdGasLEK–RdBCG–RdBCG–RdCellBCG–RdBCG–RdBCG–RdElectronicsBCG–RdAeroMcKinsey–RdPharmaceuticalsZSAssociates–Rd (PostBCG–RdBoozAllen–RdBenjaminMcKinsey–RdOtherCASE1:OPTICALFIBRES(BCG–RoundOurclientmakesopticalfibre(hasvolumeadvantagestocopperwire)whichismainlyusedbyOurclientmakesopticalfibre(hasvolumeadvantagestocopperwire)whichismainlyusedby ,cableandmobilephoneindustries.It’smadeinglassstrandsandrolledonto25kmspools.Theircustomers(whoaregenerallymajor snetworks)wouldbuyahugety,bundleitup,digatrenchandputthebundleoffibresintheground.They’veseena50%declineinrevenues,andhaverecentlybroughtinanewCEO.ThenewCEOwouldliketoWhydidrevenuesdrop50%inoneCanheexpectanimprovement,andifsoinwhatHowdoesourcompanycomparetoourAdditionalInformationProvidedAfterRelevantOpticalOpticalfibreissimilartoacommodity,soconsumersdonotpurchasebybrandandpricingisinlinewithcompetition.TherehasbeennosignificantchangeinsupplyfromtheTherearenodirectsubstitutesandnoregulationchangesduringthis.The“usage”oftheopticalfibres,forvoice,dataandinternet,hasactuallydoubledeachyear.(meaningyouwouldthinkyou’dactuallyneedtwiceasmucheachyear)CustomersareaskingforNomajorchangesincustomer’sindustry.Evenspreadacrossindustriesforproductsales.Currentusageis5T/second,butcapacityis100T/second.Interviewee’sWhyWhydidrevenuesdrop50%inoneIdeterminedtheproblemwasthatbecauseitissuchaneffortandexpensetodigthetrenchestoputthefibrebundlesin,thecustomerdoesitasinfrequentlyaspossiblewhichleadstoovercapacity.Canheexpectanimprovement?IfsoIfoundoutthattheybuyayearinadvanceofneedingit.Sinceusagedoubledyearly,Iworkedoutthatcustomerswouldreachcapacityin3.5years,andthereforewewouldbeimpactedfor2.5TheCEOwantsaben arkslidewithhowwecomparetoourcompetitors:whatwouldbethemainitemsyou’dwanttoseeonthatslide?IaskedforMarketShare(leader),Cost(lowestcost),People(noadvantage),CustomerBase(noadvantage),Product(norealadvantage),andBalanceSheet(highest)HeaskedifwecouldweatherthestormorifwewereinIsaidifwehadaprettyhealthyfinancialsituation,wecouldweatherthestormfor2.5yearsbutthatitwouldbeworthwhilelookingforotherwaystodiversifysincethiswouldbeacyclicproblem.Thekeytoansweringthisquestionisunderstandingwhatisactuallygoingonintheindustry.Togettotheheartofthisissueyoucouldask:Clearlyourclienthaslostasignificantportionoftheirrevenue.TounderstandwhytherearethreekeythingsIwouldwanttoexamine.First,whathaschangedaboutourClient–wehaven’theardofanymajorreasonwhythingswouldbegoingwronginternallybutsomeofthethingsthatIwouldwanttolookatare:Havetheylostkeysales nelwithgoodcustomerrelationships?Havetheylosttheirgoodreputationbecauseofsomeincidentoraccidentetc?Havetherebeenperceivedqualityproblems?EtcSecond,IwouldwanttolookatourkeyCompetitors–Aretheyofferingabetterproduct?(probablynotiftheindustryiscommoditized)Aretheysellingatalowerprice?Aretheyofferingbetterservice/deliverytimesetc?Aretherenowmorecompetitors?Areourcompetitorsbetterplacedgeographicallytomeettheneedsofourcustomers?Aretheirsomecompetitorsthatare ngbetterthanus?Ifsohowdotheydifferfromus?Aretheybiggerandleveragingtheirscale,etc?Third,IwouldwanttolookattheneedsofourCustomersandwhetherthesehavechanged.–Ifthereisnothingwrongwithourproduct(Client)andourCompetitorshaven’tsuddenlygotbetterthenthedownturninsalesmusthavesomethingtodowiththeneedsofourCustomers.Whatistheircurrentusage?Whatistheircurrentcapacity?Whatistheiranticipatedusage?Whataretheirpurchasingpatternsrelativetocapacity?etcThisstructureshoulddriveyoutoidentifythekeyissue.ThewaythefactsarepresenteditlookslikemostofthequestionsonClientandCompetitorswillyieldlittlereturnandtherichestpartofthediscussionwillfocusaroundCustomerneeds.Thisshouldprovidetheopportunitytodiscoverallofthefactsaboutthegrowthindemandandthecapacityconstraintcurrentlyinplace.Itcouldalsoleadtounderstandingthe“lumpy”natureofthesecapitalpurchases.Thisdiscussionshouldalsodrawoutenoughinformationtoanswerthefollowupquestiononhowourclientcomparestoitscompetitors.CASE2:HOLDINGCOMPANY(BoozAllen–RoundClientisaholdingcompanyorconglomerate.Theyarealongstandingclientofours.Theirrevenuesareabout1.5B/year.Theyholdallsortsofcompanies,mostlyaroundlowtechmanufacturing,includingroughlyinthe“OilandGas”“Automotive”and“other”categories.Theholdingcompanydoesn’treallyhaveaunifiedportfolio,butbasicallyplacesbetsoncompaniesClientisaholdingcompanyorconglomerate.Theyarealongstandingclientofours.Theirrevenuesareabout1.5B/year.Theyholdallsortsofcompanies,mostlyaroundlowtechmanufacturing,includingroughlyinthe“OilandGas”“Automotive”and“other”categories.Theholdingcompanydoesn’treallyhaveaunifiedportfolio,butbasicallyplacesbetsoncompaniesitacquires.Itisnowlookingatanautopartsmanufacturer,andtryingtogetanideaofwhetheritshouldacquireit.WhatkindofthingswouldyouwanttoinvestigatetofindoutwhetheritwasagoodAdditionalInformationProvidedAfterRelevantFinancialFinancialhealthisexcellent–sittingonalotofcash.Theirportfolioiswelldiversified.Theyarenotlookingfor“synergies”necessarily.Aftermarketproducts–winchesforcars,trucks,ATV’s(revenuesof300MforthisproductTheyhave90%ofthemarketintheUS,andthemarketisexpectedtohaveflatSeconddivisionisdrivetrainmechanismforswitchingcarfrom2Wdriveto4Wdrive.It’sasmallnichemarket,mostlyluxurycars.Interviewee’sWhatweresomeoptionsfortheWinchproductssincethemarketintheUSseemedtappedout?WetalkedaboutmarketsnotreallyexistinginothergeographiesbecauseitwasmainlyATVsandtheyweren’tascommoninothercountries.Wetalkedaboutleveragingthetechnologyandalthoughnothingelsecouldbemadewithit,theydiddiscoverauseasa“tool”forhomeandshopuse(toliftbricksetc).WhowouldthecustomersbeWetalkedaboutsmallcontractorsandhomeuseconsumers(doityourself)IaskedwheretheyshoppedanditturnedoutthatsmallcontractorsshoppedmainlyatwholesalersandbigboxshopslikeHomeDepot.Thetrendwasmovingtowardsbigbox.Theseshopsonlyrenewtheircontractsonceayearwithmanufacturers.HowwouldyoufigureoutmarginsforHomeWetalkedabouthowmarginswerebasedonmargin/squarefootandthatyoucouldaskforasmallspace,butkeepitextremelywellstockedatalltimesandkeepourpackagingsmall.HowwouldyoubringincustomersinthisentirelynewAdvertisingthroughdoityourselfchannelsonTV,magazines,in-storedemos.(thisapparentlydidn’tworkaswellb/ctheyhadtosendpeopleto350storestodothedemosandforasmallcompanyitwastoomuch).HethenwantedtotalkaboutsalesintheDriveTraincomponentIaskedaboutconsumers,andwetalkedaboutconsumersbeingbothendconsumersandautomanufacturers.Iaskedhowoftencarswereredesignedandhesaidevery4-5years,butthetrendwasgoingdowntowardsevery3years.Whatdoes lTheopportunitytogetinaredesignisWhatWhatdoes lusaboutthefutureasthistimecontinuestogodown?IsthisanIsaidno,becausenowyouwilllikelyhavemorecompetitivepressurefromthosewhosawthisasaLastly,hewantedtoknowhowIwouldevaluatetheoveralldealItalkedabout ngsomesortofreturnoninvestmentcalculationtomakesurethereturnwasadequate,andthattheresultsweneededinaparticulartimeframeexisted.Myconcerninthiscasewouldbethattheintervieweehasn’tdevelopedaclearsetofcriteriaforassessingthepotentialacquisitionandusedthesetodrivethroughthecaseinastructuredfashion.ThereareanumberofpotentialapproachesbutIwouldprobablybreakitdownasBeforeanythingelseIwouldaskforsomemoreinformationonthepotentialtarget’sbusiness.Whatproductsdotheysell?Whataretheirrevenuesandmargins?Etc.ThenIwould whetherthismakestheacquisitiondesirablebylookingatthefollowing:FirstIwouldwanttolookatwhetherthisisanattractiveindustrytobegettingintogenerally–TheautomotivepartsindustryseemstobegenerallyconsistentwiththeotherproductsintheirportfoliosoIwouldassumethattheyprobablyhavetheskillstomanagethissortofbusiness,isthatcorrect?Iwouldalsowanttolookatthegrowthprospectsforthisindustry.Istheautomotivepartsindustryexpectedtogrowfasterorslowerthanotherlowtechindustrycompaniestheymayalsochoosetoinvestin?SecondIwouldwanttoexaminewhetherthisistherightcompanywithintheautomotivepartsindustrytobuy–inparticularIwouldwanttoknowtowhatextentourclientcouldderivevaluefromtheacquisition.Willtherebeanysynergieswiththeothercompaniesthatourclientowns?Willourclientbeabletoimproveprofitabilitybydrivingcostsoutofthisbusiness?Arethereopportunitiestoincreasesalesorgrowthebusinessfasterthanexistingmanagementispredicting?FinallyIwouldwanttoconsiderthesepotentialimprovementsfroma.DoestheclienthaveacertainNPVorROEtargetthatitislookingtoachievebeforeitinvests?CASE3:ELECTION(BoozAllen–RoundWhatdoyouthinkisgoingtohappenaftertheelectionifKerrywinsandDrugReimportationfromWhatdoyouthinkisgoingtohappenaftertheelectionifKerrywinsandDrugReimportationfromCanadaislegalized?I’dliketoknowwhatyouthinktheimpactwillbetoLipitor(Pfizer)andifit’snegative,howwecanmitigateit.AdditionalInformationProvidedAfterRelevantInIntheUS,theLipitormarketisLipitorismanufacturedinPuertoDrugreimportationisnotcurrentlylegal,soismostlyconductedviatheInterviewee’sWhatistheIbrokeitupintoashorttermrevenueimpactandalongtermimpactonthepharmalargemarginmodel.Idrewthevaluechainforthedrugmodel:Pharmaco,PBM–PharmacyBenefitManager(negotiatesprice)Pharmacy(sells)ConsumerInbetweenyouhavetheDoctortalkingtothepharmacyandthehealthplanultima ypickingupthetab.Weestablishedthatthehealthplanswillbepushingforthis,andthePBMswillputpressureonthePharmacosasthegatekeepertothecontractswithhealthplans.WhatwillbethefinancialIaskedwhatthepricingwascurrently.Itissoldfor$70permonth,andwewerelookingat$30permonthforthesamedruginCanada.Thatmeantthe$7Bwouldbe$4Bless.Bigeffect!WhatcanPfizertodoIaskedifthereweredrugsthattheysoldintheUSbutnotinCanada–thereare.Thisisanoption–theycanbumpmarginsonthoseproducts.Theycanlowercosts(theyshouldalreadybe ngthisbutb/ctheirmarginsaresobig,it’snotapriority).TheycanalsolimittheamountofcheaperdrugoutputtomatchtheCanadianmarketsize(ie.sinceCanada’spopis10%ofUS,theycanreleaselessandlimitthemarketforthe“reimported”drugs)IalsosuggestedpushingforlongercontractswiththePBMssothatwecouldextendpastpatentlifeofLipitorandkeepmargins,butheaskedifthePBMswouldhavetoallowthat.Theywouldalsoknowwhentheywerecomingoffpatent,sowouldlikelynotsignthosetypesofcontracts.BoozBoozandsomeoftheindustryspecialistconsultingfirmswilloftenaskcasequestionsthatareindustryspecificandrequireyoutodemonstrateyourindustryknowledge.ABain,BCGorMcKinseyisextremelyunlikelytoeverexpectyoutohavethislevelofknowledgeaboutaparticularmarketbeforethestartofacasebuttheycanstillbeusedasreasonablepracticeCASE4:PERPETUALMOTION(Bain–Round1)NEWPRODUCT/MARKETIwasflyingbackfrommyclienttheothernight,andworkingawayonmylaptop.BesidemewasIwasflyingbackfrommyclienttheothernight,andworkingawayonmylaptop.Besidemewasseatedamadscientist,whoengagedmeinconversation,andwasexcitedtofindoutIwasaconsultant.Itseemsthathehascreatedaperpetualmotionmachine.Itrequiresnoenergy,andkeepsongoing.Hewantstoknowhowtomakemoneywithit.AdditionalInformationProvidedAfterRelevantNoNoadditionalinformationInterviewee’sWestartedwithageneralframeworkonthethingsIwouldcover.Shepushedmeintothecategoryofwhatitmightbeusedforandwestuckoncars.SheaskedmewhatthesizeoftheopportunitycouldIdidaquickmarketsizing,basedonthe#ofcarsintheUS,andwhat%Iwouldguessaretraditionalfuelvs.alternativefuel(asmall%)andthenassumeda%ofthoseboughtnewcarsyearlyandendedupwithalarge#.(40B,Ithink)WhatwouldconvincethesepeopletobuyourtechnologyintheirItalkedaboutvalueproposition,pricing,awareness,proofofHowwouldweconvincethetraditionalfuelcustomerstobuy*noresponseHowwouldyoupricethis?AndhowwouldthischangeoverItalkedaboutmakingsurewecoveredourCOGS,andthenlookedatEVCespeciallyintermsofactualfuelcostsandtimespentrefueling,environmentalfeelgoodfactoretc.Ithoughtthatinitiallywe’dpriceatapremiumandlaterinthelifecyclewhenitwasmoremature,Ifiguredwe’dpotentiallybecompetingonpricesinceotheralternativesmaycreepin.WhatwouldGMthinkofthisifweweretoapproachthemwithItalkedabouthowtheywouldprobablybethinkingaboutthefactthattheirbreadandbutterbusiness(traditionalfuel)wouldbethreatened,butultima ytheywouldneedtodecidewhethertheythoughtthecompetitorswouldcomeoutwiththisbeforethem,orwhethertheywouldwanttobethefirsttomarketwithit.Ialsotalkedabouthowitmaytakeawhiletoimplementbecauseofoperationaldifficulties,designetc.WouldyouinvestwiththeMadScientist,ifheaskedyouto?Why?Whatisyour30secondelevatorspeechtoWarrenBuffet?Lookingatthepotentialtousethistechnologyincarsisclearlyagreatoptionandthecaseapproachthattheintervieweewentthroughlooksprettygood.StartingfromamoregenericlevelhoweverIwouldprobablytacklethequestionasIfwelookatthebenefitsofaperpetualmotionmachine,itisbasicallyasourceofenergy.InassessingpotentialapplicationsofthetechnologythenIwouldaskthequestion“Whereistherethegreatestdemandforenergy?”or“Whereisthebestmarketforanewsourceofenergy?”Thiscouldleadtoareasonablediscussionofanumberofdifferentoptions:energyathome,energyinindustry,energyintransport.Transportmakessenseasamarkettodrilldownonthisproductbecauseitisclearlysuchalargesourceofenergyconsumption.Fromapricing youmayneedtothinkaboutthepriceofthetechnologyasagainstthesavingsthatitgenerates.Youwouldneedtoensuretherewasstillsufficientsavingstojustifyconsumerswishingtotryanewtechnology.Equallyitwouldbeimportantthatthemadscientistpricestheproductsothatcarmanufacturerscanimplementthetechnologyprofitably.30secondThisisasourceoflimitlessenergy.Asenergydemandcontinuestogrowit esamoreandmorepreciousresource.Whowouldnotwanttoinvestinalimitlesssourceofapreciousresource?CASE5:NUTRACORP(McKinsey–RoundNutracorpisa$5BnutritionfoodscompanybasedinFrance.TheyhaveabroadEUpresenceandhaveexcellentmarketshareinFrance,Germany,andSpain.Theyhavetwolinesofproducts:PremiumInfantProducts,whichincludesmilkandsolidfoodsforinfantsupto2yearsold.Thesearesoldthroughtheretailchannel.Nutracorpisa$5BnutritionfoodscompanybasedinFrance.TheyhaveabroadEUpresenceandhaveexcellentmarketshareinFrance,Germany,andSpain.Theyhavetwolinesofproducts:PremiumInfantProducts,whichincludesmilkandsolidfoodsforinfantsupto2yearsold.Thesearesoldthroughtheretailchannel.Medicalnutritionsupplements,whichareforsickpatients(HIV,Cancer,Diabetes),andarebasicallyapillorpowderthathelpthepatientrecovertheirstrength.ThesearesoldthroughtheDirectSalesChannel.TheCEOfeelsthatthegrowthpotentialforthiscompanyhasmaxedoutinEurope.We’dliketoexploretheUSMarket.AdditionalInformationProvidedAfterRelevantSinceSincethisisaMcKinseystructuredcase,andwouldbemostvaluablegiveninthatstyle,itiswrittenupthatwaysopeoplegetusetothechoppiness.Interviewee’sWhatarethekeyareasyouwouldexploretodeterminewhetherthisisagoodIbasicallytalkedthroughmyown alframeworkformarketentry,whichincludedtheinternalaspects:capabilities,channel/ rrelationships,customers(aretheythesame),andprofitabilityaswellasindustrythingslike:thegrowthrateandsizeoftheUSmarket,thecompetitorsandregulatorya)Nowlet’stalkaboutthemedicalnutritionalfoodsupplementsfortheDiabeticMarket.Howwouldyougoaboutsizingthismarket?Patientstake2supplementsperday,andtheycost$1.50persupplement.Goaheadandestimateit.(Additionalinformationprovidedifasked:5%prevalencerate,90%compliance300MintheUS,5%prevalencegives15Mpeoplewithdiabetes,90%ofthemtakethesesupplements,gives13.5M,x1.5$/suppx2supp/dayx365daysgivesabout$14.8BforamarketHowcouldwegrowthisWouldbedrivenbyraisingcompliance(smalleffect);prevalenceofdiabetesinpopulation;increaseindosagepriceoramount.HowwouldthecompetitorsintheUSreacttousenteringtheIprobablymissedsome,butIusedincreaseinsalesforce,differentiating/positioningtheirproductasbetter,blockingchannels,moredollarstoadvertising.3)Whichchanneldoyouthinkmakesthemostsenseforthemtogoafterastheyenter?HereIwasgivenachartthatlookedliketheoneattachedonthenextpage.*SpecialtyRetailersseemedtoberightanswer,butIcan’trecallwhatIsaid,andtothisdayamnotsurewhatthereasonsare.Heexplicitlysaidthisisnota tativequestion.MassSpecialtyMomandUS#ofTotal%ofinfantnutrition4)Switchinggearsagaintothemedicalnutritionproducts–let’stalkaboutCancerpatients.Howmanycancerpatients4)Switchinggearsagaintothemedicalnutritionproducts–let’stalkaboutCancerpatients.Howmanycancerpatientswouldweneedtoattracttoourproducttobreakeven?Wehave50SalesReps$10MbudgetforPR,ourdirectcostsare80%andassumetheytake2dosesperdayfor5monthsoutofayear.AdditionalinformationprovidedifSalesrepssalariesare$100K/year,plus$100Kinbenefits.ThepriceofadoseisIdidabreakeventhatlooked10M+(200K*50reps)=(2doses*5months*30days*20%*$1)*#ofptsandendedupwith#ofpts=330K5)TheCEOwouldlikeyour mendationofyoursuggestions,basedonwhatyoulearnedtodayaswellasanyotherideasyouhavetoadd.*noresponseDifferentinterviewers,notjustdifferentfirms,canhaveverydifferentstylesofinterviewingandmuchofthiscomesdowntomoodor alitysoitisdefini yworthwhilemakingsureyouarepreparedforinterviewsthataremorelikeaninterrogationaswellasinterviewswhereyougettotakethelead.Rememberalsothat,althoughtheymaybefiringquestionsatyou,youstillneedtobethinkingabouthowyoucandemonstrateanunderstandingofthecompletesetofissues.Don’tjustanswerthequestion,butalsothinkabouthowyoucansetoutastructurearoundyouranswer.Theinterviewee’sresponsetothefirstquestionisagoodexampleofthis.Theyhavelaidoutasetofissuesthattheywouldwanttoexploreindeterminingwhetherthisisagoodmarkettoenter.Thereisnoonestructureforthisquestionandanumberofdifferentapproacheswouldbeequallyacceptable.YoumaywanttodoaPorter’sFiveforces ysisoftheUSmarketandoverlayacomparisonofotherinternationalmarketsthatmaybemoreattractive–forexample,aretheirhigherprevalenceratesinAsia?Oragreaterpropensitytopay?Thecandidateappearedtohavedifficultieswithquestionnumber3.Thisquestioncouldpotentiallybeapproachedbyaskingtwoquestions:FirstlyIwouldwanttodeterminewherewecangetthebiggestbangforourbuck–thatis,whichsaleschannelgetsusthebestaccesstothemarketperclient.TheanswerappearstobeoverwhelminglytheMassRetailerswhere10chainsgiveusaccesstoa$10.5Bmarket.(Notetheremaybeaninconsistencyhereasbothspecialtyretailersandmassretailersarelistedas40%butwithverydifferentsalesnumbers).NextIwouldwanttoconsiderwhetherthereareanyfactorslimitingorcomplicatingaccesstomypreferredchannel–Onitsfacethemassretailchannellookslikethebestbecauseithasaveryhighsalesnumberforaverysmallnumberofclients(10chains).Wewouldneedtoknowhoweverwhattherestrictionsonaccessingthischannelare.Massretailersmaychargeapremiumforshelfspacemakingthisanextremelyexpensiveoption.Alternativelymassretailersmaycarryonlyasmallnumberofwellknownbrandsmakingitalmostimpossiblefornewentrantstogainaccessuntiltheyhaveestablishedareputationinthespecialtyretailersthatcarrymorebrandsetc.AgoodanswerwouldinvolveatleastidentifyingthesepotentialCASE6:PARTYGOODS(BCG–RoundOurclientisamanufacturerofpartygoods.Theyhavetwoproductportfolios:everydayandseasonal.Everydayproductspertaintooccasionsthathappenthroughouttheyearsuchasbirthdaysandanniversaries.Seasonalgoodsareforoccasionssuchasthe4Ourclientisamanufacturerofpartygoods.Theyhavetwoproductportfolios:everydayandseasonal.Everydayproductspertaintooccasionsthathappenthroughouttheyearsuchasbirthdaysandanniversaries.Seasonalgoodsareforoccasionssuchasthe4thofJulyorThanksgiving.TheyhaveadesignfacilitythatcomesoutwithdifferentpartythemesandtakescareoflicensingforgoodsusingcharacterslikeMickeyMouseorShrek.Theyalsohaveamanufacturinganddistributionfacilityandasalesforcethatprovidessupporttoretailers.Oneoftheirlargeandnewcustomerscametomanagementcomplainingthattheirpricesaretoohigh.Theyclaimedthatthisisduetohighdistributioncosts.Aftersome ysis,theclientfoundthistobetrue.WehavebeenaskedtofigureouthowwecandecreasedistributionAdditionalInformationProvidedFreightEveryday SeasonalandEverydayUPS Number PriceperBoxes TotalCost Boxes TotalCostPer Per Monthly No.of Annual rTruckload-fillemptytruckwithgoodsupto1000boxespertruck,costs$1500pertruck,makesonlyoneLessthanTruckload-fillpartoftruckwithgoodsupto500boxespertruck,costs$1000pertruck,makesonlyoneSampleForEverydayUseUPSforZones1and2whereCostpermonthlessthan UselessthantruckloadforZones3,4, TotalMonthlyCostSavingsperForEverydayandSeasonalUseTruckloadforallZonessincetruckloadcostof$1500islessthanUPScostperCostSavingsperTotalAnnualCostInterviewee’sInterviewee:Interviewee:Ifirstneedtounderstandthedistributionprocessandcostbreakdown.Then,Iwanttobenarkagainstcompetitorsandfindoutwhattheyare ngintermsofdistribution.Then,basedontheinfo,Iwanttofigureoutwhatthebestalternativesareforourclient.Interviewer:That’sagoodframework.Let’sstartwithcosts.Whatdoyouthinkarethecostsrelatedtodistribution?Interviewee:Labor,Trucks,Sortingmachines,OH,freightetc.Iwentthroughtheentirevaluechainandidentifiedcosts.Interviewee’sSolutionInterviewer:Interviewer:Here’sabreakdownoffreightcosts.TheyuseUPStodistributegoods.(Explainstableattached)Whatdoyouthink?Interviewee:I’dliketogetmoreinformationaboutotherourcustomersandseasonalvolume.rs,thegeographicconcentrationInterviewer:OthercompetitorsuseamixofUPSandtruckstodistributegoods.(Seespreadsheetformoreinfo)Howdoyouthinkwecansaveduringoureverydaymonths?Howaboutduringtheseasonal/everydaymonths?Interviewee:(computescostdifferenceandInterviewer:You’remeetingwiththeCEOtomorrow.HowwillyousummarizeyourInterviewer:There’sgreatopportunitytosaveusingacombinationofUPSandtruckloadservices.Fromourinitialcomputationswecansaveasmuchas$54,800annually.(seecomputation)ThisThiscaseisrelativelystraightforwardand,ifyoucandothemath,thenthecaseshouldpracticallysolveitself.Thekeytobeingsuccessfulistoensurethatyouasktherightquestionsupfronttoobtainallofthenecessaryinformationtocalculatethecostsavingsandthatyouthenlogicallyandthoroughlydrivethroughthosecalculations.Thecandidatehasdoneaprettygoodjobofthathere,firstaskingaboutthedistributionprocessandaboutthealternativesusedbycompetitorstoelicitinformationbeforestartingthecalculations.Ifyouaregoodwithnumbersthenthesecasescanbealittleboringasyouarenevercalledontodoanythingreallycreativeandyouwillprobablyneverfeeloutofyourdepth.Thatisnotnecessarilyabadthinghoweverasthereisprobablyverylittlerisk