spjimr consulting casebook 2014

SPJIMR

A compilation of sample cases from the top Bconsulting case interview experiences at

Consulting Casebook 2014

A compilation of sample cases from the top B-schools and consulting case interview experiences at SPJIMR

Consulting Committee 2013

Casebook 2014 Consulting Committee

2014 SPJIMR Consulting Casebook

The Consulting Committee is extremely thankful to all the casebook by sharing their casehelp, this publication would not have been possible. All contributions to this document are by students of the batch 2012appeared for interviews of consulting firms on campus during their final placements. We would also like to acknowledge Kellogg Business School, Johnson School Consulting Club, Columbia Business school, IIM A, IIMB , XLRI and ISBtheir contribution through their casebo We hope casebook helps all those aspiring for prized and successful consulting careers. All the very best!

Reference Sources for the sample cases

[1] Kellogg Consulting Club Casepack 2001

[2] Casebook IIMA 2011

[3] Vault Case Interview Practice

ACKNOWLEDGEMNT

The Consulting Committee is extremely thankful to all those who contributed to sebook by sharing their case interview experiences. Without your support &

help, this publication would not have been possible.

All contributions to this document are by students of the batch 2012rviews of consulting firms on campus during their final

placements. We would also like to acknowledge Kellogg Business School, Johnson School Consulting Club, Columbia Business school, IIM A, IIMB , XLRI and ISBtheir contribution through their casebook.

We hope casebook helps all those aspiring for prized and successful consulting

for the sample cases:

asepack 2001

racticeGuide 2008

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those who contributed to interview experiences. Without your support &

All contributions to this document are by students of the batch 2012-2014 who rviews of consulting firms on campus during their final

placements. We would also like to acknowledge Kellogg Business School, Johnson School Consulting Club, Columbia Business school, IIM A, IIMB , XLRI and ISB for

We hope casebook helps all those aspiring for prized and successful consulting


1. Introduction 1.1 How to use these cases1.2 Job Functions 1.3 Skills & Requirements1.4 What to prepare1.5 How to approach a case1.6 How to answer questions

2. Frameworks

2.1 Pestel Framework2.2 Marketing Mix2.3 Porters Five forces2.4 Market entry strategies2.5 BCG matrix 2.6 McKinsey 7S framework2.7 Porters Generic Strategies2.8 Market based view2.9 Resource based view2.10 Profitability framework2.11 Blue Ocean Strategy2.12 Balanced Scorecard2.13 Total Quality Manage

3. Brainteasers

4. Types of cases

4.1 Profitability/OperationsCase 1 : Chilled BeveragesCase 2: Snack Food CompanyCase 3: Taxi Driver in MumbaiCase 4: Global Retail Bank

4.2 Industrial Analysis/ Growth

CONTENTS

Topic

1.1 How to use these cases

1.3 Skills & Requirements 1.4 What to prepare 1.5 How to approach a case 1.6 How to answer questions

2.1 Pestel Framework 2.2 Marketing Mix 2.3 Porters Five forces 2.4 Market entry strategies

2.6 McKinsey 7S framework 2.7 Porters Generic Strategies 2.8 Market based view 2.9 Resource based view 2.10 Profitability framework 2.11 Blue Ocean Strategy 2.12 Balanced Scorecard 2.13 Total Quality Management

4.1 Profitability/Operations Case 1 : Chilled Beverages 1 Case 2: Snack Food Company 2 Case 3: Taxi Driver in Mumbai 2

Case 4: Global Retail Bank 2 4.2 Industrial Analysis/ Growth

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Page No. 5-15

5 6 7 7 8

10

15-45 15 18 21 24 25 28 30 34 35 36 37 39 42

45-46

46-90

46 46 48 50 51 55


Case1: Frozen FoodCase2: Saturated Telecom MarketCase3: Aluminium Can manufacturer

4.3 Market Entry / Expansion/InvestmentCase1: Retail Bank in IndiaCase2: Tyre ManufacturerCase3: Gas Manufacturer

4.4 New Product OfferingCase1: Minibar in hotel roomsCase2: Third party automobile gas service station

4.5 Miscellaneous Case1:US TelecomCase2: Canada CoCase3: Online Gambling Business

5. SPJIMR Interview Experiences

Deloitte S&O Interview Experience #1Interview Experience #2Interview Experience #3

Deloitte TS&A Interview Experience #1

TSMG Interview Experience #1

PRTM Interview Experience #1

KPMG Interview Exper

EY Interview Experience #1

Deloitte Malaysia Interview Experience #Interview Experience #2

Case1: Frozen Food 2 Case2: Saturated Telecom Market 2 Case3: Aluminium Can manufacturer 1

4.3 Market Entry / Expansion/Investment Case1: Retail Bank in India 2 Case2: Tyre Manufacturer 2 Case3: Gas Manufacturer 3

Product Offering Case1: Minibar in hotel rooms 2 Case2: Third party automobile gas service station 2

Case1:US Telecom 3 Case2: Canada Co 3 Case3: Online Gambling Business 3

SPJIMR Interview Experiences

Interview Experience #1 Interview Experience #2 Interview Experience #3

Interview Experience #1





Interview Experience #1 Interview Experience #2

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55 56 58 59 59 61 63 65 65 67 71 71 75 82

90-165

90 90 98

109 114 114 120 120 130 130 137 137 145 145 148 152 159


1.INTRODUCTION

This document has been prepared by the Consulting Committee of SPJIMR Mumbai. The purpose of this document ipreparation for case interviews conducted by consulting firms during placements. This case book documents preparation techniques and pre requisites / frameworks for analyses, types of cases, sample cases with po It documents the interview experiences of students across various consulting firms. The aim of sharing these experiences is to inform students about the caseinterview experiences of past batches, and to accordingly help them prepare fortheir placements. The experiences listed below are not necessarily the best way in to handle case interviews. They only serve to give students an idea as to what to expect when they walk into a case interview. Every individual could have his / her own unique way of tackling consulting interviews, each of which could be correct. So you want to be a consultant. And you know that case interviews are an important tool consulting firms use to gauge how candidates might perform on the job. Dont worry. These pryou need. Doing well in a case interview is a matter of practice and preparation. Case interview skills are something you learn, not something youre born with. This book will help you review key concebusiness issues. By practicing these cases, you will learn to present a clear, concise, focussed, and organized flow of logical thoughts while analyzing a business problem. Remember that the field is growing and firms are good candidates. All they need is a reason to hire you. 1.1 How to use these cases These practice cases are designed to simulate the case interview experience for you and a partner. You should proceed as you would in an actual interview. This

This document has been prepared by the Consulting Committee of SPJIMR Mumbai. The purpose of this document is to assist the students of SPJIMR in their preparation for case interviews conducted by consulting firms during placements.

This case book documents preparation techniques and pre requisites / frameworks for analyses, types of cases, sample cases with possible solutions.It documents the interview experiences of students across various consulting

firms. The aim of sharing these experiences is to inform students about the caseinterview experiences of past batches, and to accordingly help them prepare fortheir placements. The experiences listed below are not necessarily the best way in to handle case interviews. They only serve to give students an idea as to what to expect when they walk into a case interview. Every individual could have his / her

que way of tackling consulting interviews, each of which could be correct.

So you want to be a consultant. And you know that case interviews are an important tool consulting firms use to gauge how candidates might perform on the job. Dont worry. These practice cases, a partner, and lots of practice, are all you need. Doing well in a case interview is a matter of practice and preparation. Case interview skills are something you learn, not something youre born with. This book will help you review key concepts and expose you to an array of business issues. By practicing these cases, you will learn to present a clear, concise, focussed, and organized flow of logical thoughts while analyzing a business problem. Remember that the field is growing and firms are good candidates. All they need is a reason to hire you.

These practice cases are designed to simulate the case interview experience for you and a partner. You should proceed as you would in an actual interview. This

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This document has been prepared by the Consulting Committee of SPJIMR s to assist the students of SPJIMR in their

preparation for case interviews conducted by consulting firms during placements.

This case book documents preparation techniques and pre requisites / ssible solutions.

It documents the interview experiences of students across various consulting firms. The aim of sharing these experiences is to inform students about the case-interview experiences of past batches, and to accordingly help them prepare for their placements. The experiences listed below are not necessarily the best way in to handle case interviews. They only serve to give students an idea as to what to expect when they walk into a case interview. Every individual could have his / her

que way of tackling consulting interviews, each of which could be correct.

So you want to be a consultant. And you know that case interviews are an important tool consulting firms use to gauge how candidates might perform on

actice cases, a partner, and lots of practice, are all you need. Doing well in a case interview is a matter of practice and preparation. Case interview skills are something you learn, not something youre born with.

pts and expose you to an array of business issues. By practicing these cases, you will learn to present a clear, concise, focussed, and organized flow of logical thoughts while analyzing a business problem. Remember that the field is growing and firms are starved for

These practice cases are designed to simulate the case interview experience for you and a partner. You should proceed as you would in an actual interview. This is

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your opportunity to sharpen your presentation, analytical and other critical skills while under fire. You should have a pen and a pad of paper on which to take notes, and a natural but professional disposition. Read the question, but only read the recommended solutions when you have first explored and exhausted all possible answers. 1.2 Job Functions Strategy While most problem-solving involves some sort of strategy, there are companies, groups, and assignments that are particularly focused on highdevelopment. Interpreted broadly, strategy includes the development of an overall approach to improving a companysareas. Operations/Process ImprovementA subset of strategy, operations focuses on improvigenerating part of the enterprise. MBA students tend to overlook the strategic aspects of this function and itsperception is that operations is not as glamorous asoperations can be quite strategic and is usually the key to a successfulorganization. Change Management/Organizational DesignAnother subset of strategy, change management relates specifically to human resource issues within organizations and structure with strategy, products, processes, and technology Implementation/Information TechnologyThis takes the strategy development one step further by executing the approach. For many consulting firms, this happ

your opportunity to sharpen your presentation, analytical and other critical skills while under fire. You should have a pen and a pad of paper on which to take notes, and a natural but professional disposition. Read the question, but only read

mmended solutions when you have first explored and exhausted all

solving involves some sort of strategy, there are companies, assignments that are particularly focused on high-le

broadly, strategy includes the development of an overall approach to improving a companys competitive position across multiple

Operations/Process Improvement A subset of strategy, operations focuses on improving the product or service

the enterprise. MBA students tend to overlook the strategic aspects of this function and its importance to the client organization. Their perception is that operations is not as glamorous as strategy, when in reoperations can be quite strategic and is usually the key to a successful

Change Management/Organizational Design Another subset of strategy, change management relates specifically to human

within organizations - emphasizing alignment of culture, people, products, processes, and technology.

Implementation/Information Technology This takes the strategy development one step further by executing the approach.

consulting firms, this happens to be the bread-and-butter part of the

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your opportunity to sharpen your presentation, analytical and other critical skills while under fire. You should have a pen and a pad of paper on which to take notes, and a natural but professional disposition. Read the question, but only read

mmended solutions when you have first explored and exhausted all

solving involves some sort of strategy, there are companies, level strategy

broadly, strategy includes the development of an competitive position across multiple

ng the product or service-the enterprise. MBA students tend to overlook the strategic

importance to the client organization. Their strategy, when in reality

operations can be quite strategic and is usually the key to a successful

Another subset of strategy, change management relates specifically to human zing alignment of culture, people,

This takes the strategy development one step further by executing the approach. butter part of the

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business, with a significanttechnology integration. 1.3 Skills & Requirements - Analytical and problem-solving ability- Teamwork - Customer focus - Intellectual curiosity - Listening skills/communication skills- Leadership

1.4 What to prepare

A typical interview for a consulting firm is a mix of case and fit.Case Preparation Cases are arguably the most important aspect of any consulting interview. A good perfposition with the firm; an excellent oneA typical case is a business situation, requiring strategy formulation in order to fix a problem or enhance efficiency (optimization). Itproblem statement, supported bystatement with a very broad problem description alongavailable. Case interviews are designed to help the interviewer assess the candidate on the following parameters

Thinking process The interviewer constantlthe latter thinks through the problem

Structuring This involves breaking down the problem into simple, logical components and structuring a broad approach framework.

business, with a significant amount of revenue coming from information

solving ability

Listening skills/communication skills

A typical interview for a consulting firm is a mix of case and fit. Cases are arguably the most important aspect of any

good performance in a case puts you in a very favorable position with the firm; an excellent one virtually guarantees an offer. A typical case is a business situation, requiring strategy formulation in order to fix

enhance efficiency (optimization). It can vary from a detailed problem statement, supported by several facts to a oneliner conceptual statement with a very broad problem description along with few, if any, facts

Case interviews are designed to help the interviewer assess the candidate on

The interviewer constantly evaluates the candidate as through the problem

This involves breaking down the problem into simple, logical structuring a broad approach framework.

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amount of revenue coming from information

Cases are arguably the most important aspect of any ormance in a case puts you in a very favorable

A typical case is a business situation, requiring strategy formulation in order to fix

can vary from a detailed liner conceptual

with few, if any, facts

Case interviews are designed to help the interviewer assess the candidate on

y evaluates the candidate as

This involves breaking down the problem into simple, logical

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Analytical and Quantitative skills application of basic quantitative concepts, achieved through an analytical approach to the problem in hand

Demeanor In addition to the above, interviewer also judges the candidate on his poise and maturity

Finally, cases also provide the candidterms of kind of work they can expect in the industry.

Fit Questions The objective of these questions is to determine the degree of fit between the candidate and the firm.This part of the interview serves the fol

Helps interviewer know more about the candidate, his lifeambitions

Explore candidates interests, and how they fit with those of firms Assess how coherently the candidate can present himself in a conversation In parallel to the above aspects, the candidate is continuously assessed on

his communications skills as well.Typically, a very good performance in both parts, i.e. case and fit, is essential for a final offer. Very strong performance in one section can compensate for average performance in the other to a certain extent; but a minimum decent shaspects of the interview is mandatory to beoffer. 1.5 How to approach a case Most successful case interviews follow a basic fourstructure, analyze and conclude.

Analytical and Quantitative skills A typical case problemquantitative concepts, achieved through an analytical

approach to the problem in hand In addition to the above, interviewer also judges the candidate and maturity

Finally, cases also provide the candidate a flavor of the consulting world in they can expect in the industry.

The objective of these questions is to determine the degree of fit candidate and the firm.

This part of the interview serves the following purposes Helps interviewer know more about the candidate, his life

Explore candidates interests, and how they fit with those of firmsAssess how coherently the candidate can present himself in a conversationIn parallel to the above aspects, the candidate is continuously assessed on

skills as well. Typically, a very good performance in both parts, i.e. case and fit, is essential for a

Very strong performance in one section can compensate for average a certain extent; but a minimum decent sh

aspects of the interview is mandatory to be considered for the next round/final

Most successful case interviews follow a basic four-part structure structure, analyze and conclude.

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A typical case problem requires quantitative concepts, achieved through an analytical

In addition to the above, interviewer also judges the candidate

ate a flavor of the consulting world in

The objective of these questions is to determine the degree of fit

Helps interviewer know more about the candidate, his lifestory and

Explore candidates interests, and how they fit with those of firms Assess how coherently the candidate can present himself in a conversation In parallel to the above aspects, the candidate is continuously assessed on

Typically, a very good performance in both parts, i.e. case and fit, is essential for a Very strong performance in one section can compensate for average

a certain extent; but a minimum decent show in both considered for the next round/final

part structure clarify,

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Clarify: When you are given the case, listen closely, take notes, and make sure you understand what you are being asked for. Does the interviewer want a set of recommendations, a simple yes/no answer, a number or a process description? Make sure you answer the questioclarifying question. And before you move forward, paraphrase the question back to the interviewer to confirm the problem statement (ex. decided to enter this market and wants to know how be Structure: Now, tell the interviewer you would like to take a moment to develop an approach to the problem. Your interviewer expects you to do this and you should not worry about taking a silent minute or two to think before you begin speaking. Use this time to choose an appropriate framework for analyzing the case and to develop a set of questions based on your framework (frameworks are discussed in the next section.) Analyze: Once you have a framework, walk your interviewer through it, pout key questions you will ask and stating any initial hypotheses or assumptions. After you do this, your interviewer may give you additional information. Otherwise, begin asking your questions and working through your framework. Start broad and try to work through a range of issues methodically. When you have worked through an issue, briefly state your findings and move on to the next point. Dont focus on a single point and forget the big picture. As you work, note any key findings so you remembe

n you are given the case, listen closely, take notes, and make sure you understand what you are being asked for. Does the interviewer want a set of recommendations, a simple yes/no answer, a number or a process description? Make sure you answer the question you are asked! If something is unclear, ask a clarifying question. And before you move forward, paraphrase the question back to the interviewer to confirm the problem statement (ex. So the client has decided to enter this market and wants to know how best to do it?)

: Now, tell the interviewer you would like to take a moment to develop an approach to the problem. Your interviewer expects you to do this and you should not worry about taking a silent minute or two to think before you begin

king. Use this time to choose an appropriate framework for analyzing the case and to develop a set of questions based on your framework (frameworks are discussed in the next section.)

: Once you have a framework, walk your interviewer through it, pout key questions you will ask and stating any initial hypotheses or assumptions. After you do this, your interviewer may give you additional information. Otherwise, begin asking your questions and working through your framework.

ry to work through a range of issues methodically. When you have worked through an issue, briefly state your findings and move on to the next point. Dont focus on a single point and forget the big picture. As you work, note any key findings so you remember to mention them in your wrap-up.

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n you are given the case, listen closely, take notes, and make sure you understand what you are being asked for. Does the interviewer want a set of recommendations, a simple yes/no answer, a number or a process description?

If something is unclear, ask a clarifying question. And before you move forward, paraphrase the question back

So the client has

: Now, tell the interviewer you would like to take a moment to develop an approach to the problem. Your interviewer expects you to do this and you should not worry about taking a silent minute or two to think before you begin

king. Use this time to choose an appropriate framework for analyzing the case and to develop a set of questions based on your framework (frameworks are

: Once you have a framework, walk your interviewer through it, pointing out key questions you will ask and stating any initial hypotheses or assumptions. After you do this, your interviewer may give you additional information. Otherwise, begin asking your questions and working through your framework.

ry to work through a range of issues methodically. When you have worked through an issue, briefly state your findings and move on to the next point. Dont focus on a single point and forget the big picture. As you work, note

up.

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Use new information you gather to form new hypotheses and ask additional questions. Listen carefully to everything the interviewer says. Interviewers will often give you hints and attempt to help you if you appear to beWhile it is important to use your framework, dont allow it to constrain you. If the facts of the case take you in unexpected directions, be willing to explore new issues. If you get to a point where you feel stuck, feel free to ask forgather your thoughts. Sometimes it helps to summarize what you have found so far back to the interviewer. Finally, it is very important that you describe your thought process as your work. This can seem uncomfortable and artificial, but remethought process is the only way the interviewer can know what (and if) you are thinking. Conclude: Sometimes it can be hard to know when to conclude a case. Some cases have natural endpoints and some interviewers will tell you wup. But with others, you will need to look for signs from the interviewer, pay attention to the time and choose a point when you have enough findings to make useful recommendations. When you conclude, summarize your key findings and synthesizeor more overall recommendations. Depending on the case, you may also want to discuss any trade-offs or implications of your recommendation or explain why you ruled out other possible solutions. The purpose here is not to use up time show that you have a big picture view of the case and your analysis. And above all, relate your conclusion back to the original problem statement and make sure your have answered the question that was asked. 1.6 How to answer questions

Use new information you gather to form new hypotheses and ask additional questions. Listen carefully to everything the interviewer says. Interviewers will often give you hints and attempt to help you if you appear to be getting offWhile it is important to use your framework, dont allow it to constrain you. If the facts of the case take you in unexpected directions, be willing to explore new issues. If you get to a point where you feel stuck, feel free to ask for a moment to gather your thoughts. Sometimes it helps to summarize what you have found so

Finally, it is very important that you describe your thought process as your work. This can seem uncomfortable and artificial, but remember that describing your thought process is the only way the interviewer can know what (and if) you are

: Sometimes it can be hard to know when to conclude a case. Some cases have natural endpoints and some interviewers will tell you when to wrapup. But with others, you will need to look for signs from the interviewer, pay attention to the time and choose a point when you have enough findings to make

When you conclude, summarize your key findings and synthesize them into one or more overall recommendations. Depending on the case, you may also want to

offs or implications of your recommendation or explain why you ruled out other possible solutions. The purpose here is not to use up time show that you have a big picture view of the case and your analysis. And above all, relate your conclusion back to the original problem statement and make sure your have answered the question that was asked.

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Use new information you gather to form new hypotheses and ask additional questions. Listen carefully to everything the interviewer says. Interviewers will

getting off-track. While it is important to use your framework, dont allow it to constrain you. If the facts of the case take you in unexpected directions, be willing to explore new

a moment to gather your thoughts. Sometimes it helps to summarize what you have found so

Finally, it is very important that you describe your thought process as your work. mber that describing your

thought process is the only way the interviewer can know what (and if) you are

: Sometimes it can be hard to know when to conclude a case. Some hen to wrap-

up. But with others, you will need to look for signs from the interviewer, pay attention to the time and choose a point when you have enough findings to make

them into one or more overall recommendations. Depending on the case, you may also want to

offs or implications of your recommendation or explain why you ruled out other possible solutions. The purpose here is not to use up time it is to show that you have a big picture view of the case and your analysis. And above all, relate your conclusion back to the original problem statement and make sure

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There are some basic rules about how consultants think. Using the following intellectual structures to frame your answers to their questions in a familiar style will make it easier for themengender a feeling of intellectual

1. Keep the answers concise and full of content. This means that long and flowery sentences that add little of substance to your answer are not advisable. Nor are long, irrelevantworking life.

2. Make an assertion and support it with fact or example. So in answers to questions like are you a good leader, dont be too modest. Rather, objectify it with something like, When Inewspapers used me as their example of perfect leadership.might be a bit much, but you get the idea).

3. Consultants thrive on intellectual structure in their thought processes. You will need to build a logical structure to your thoughts and arguments and make it clear that that is whatthis, read Barbara Mintos book on pyramidindustrys bibles). For example, if you have three ideas on theso and then enumerate them carefully. Never forget to talk about all of them, give them equal time weighting, and dont be distracted from finishing your reasoning, evenway. One interviewing trick is to interrupt a flowpurposefully distract the student from his chain of thought, ainterviewee finds his or her way back to it.

4. Dont underestimate the interviewers ability: You do not need to explain everything in immense detail, and if they are unable to follow your reasoning they will ask you about it or they think you are talking nonsense. Either way,their opinion. For example, I used to do a case study on thedigital cordless telephones into the U.K. market. One well qualified

basic rules about how consultants think. Using the following structures to frame your answers to their questions in a familiar style

will make it easier for them to evaluate you in a positive manner and could engender a feeling of intellectual rapport.

Keep the answers concise and full of content. This means that long and that add little of substance to your answer are not

advisable. Nor are long, irrelevant anecdotes from university or prior

nd support it with fact or example. So in answers to you a good leader, dont be too modest. Rather,

objectify it with something like, When I was elected President, the newspapers used me as their example of perfect leadership.might be a bit much, but you get the idea). Consultants thrive on intellectual structure in their thought processes. You

build a logical structure to your thoughts and arguments and make it clear that that is what you are doing. (If you are concerned about this, read Barbara Mintos book on pyramid thinking, which is one of the industrys bibles). For example, if you have three ideas on theso and then enumerate them carefully. Never forget to talk about all of

em equal time weighting, and dont be distracted from finishing your reasoning, even if you are distracted by something on the way. One interviewing trick is to interrupt a flow of an argument, purposefully distract the student from his chain of thought, and see if theinterviewee finds his or her way back to it. Dont underestimate the interviewers ability: You do not need to explain

immense detail, and if they are unable to follow your reasoning they will ask you about it - either because they dont understand or they think you are talking nonsense. Either way, they will wish to confirm their opinion. For example, I used to do a case study on the introduction of digital cordless telephones into the U.K. market. One well qualified

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basic rules about how consultants think. Using the following structures to frame your answers to their questions in a familiar style

to evaluate you in a positive manner and could

Keep the answers concise and full of content. This means that long and that add little of substance to your answer are not

anecdotes from university or prior

nd support it with fact or example. So in answers to you a good leader, dont be too modest. Rather,

was elected President, the newspapers used me as their example of perfect leadership. (Well, that

Consultants thrive on intellectual structure in their thought processes. You build a logical structure to your thoughts and arguments and

are concerned about thinking, which is one of the

industrys bibles). For example, if you have three ideas on the subject, say so and then enumerate them carefully. Never forget to talk about all of

em equal time weighting, and dont be distracted from if you are distracted by something on the

of an argument, nd see if the

Dont underestimate the interviewers ability: You do not need to explain immense detail, and if they are unable to follow your

hey dont understand they will wish to confirm

introduction of digital cordless telephones into the U.K. market. One well qualified but

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overconfident - engineering student expounded at length on the concept and application of ergonomics in this product. Since I had played a major role in developing the ergonomicsis fair to say that I had already forknow. Despite my nonedistracted and made a fair fool of himself by using several unsupported and erroneous assertions.

5. The so what, or key takeanalysis is nice, but without a resulting message it is useless. So remember that when you finish a discussion orclear and useful. Ideally, it leads to a newhave discussed.

6. Dont respond to a question with a question, but if you really dont understand what they learning about new companies andto ask questions; sometimes thequestions you will ask. The basic rule of there are no stupidhowever, does not apply. There are stupid questions, in fact, there are verystupid questions and you should not ask them. Stupid questicontain three major errors. The first is asking for information you should already have, or will not need. Thequestion badly. A badly structured question isimprecise. Such questions also facts to the issue under discussion. The third is not really a question, but more an unstructured monologue of the persons thoughts.

7. A consultant knows where he is heading: the consultant has a critical path in mind for solving the case. If he is leading you, trust him to know what he is saying. He will have runwhat you need to solve it. In the sameyou are going the wrong way in ayour approach to the problem. He may decide to play Yes, No, or

engineering student expounded at length on the concept ergonomics in this product. Since I had played a major

role in developing the ergonomics of the specific product he cited, I think it is fair to say that I had already forgotten more about it than he would ever know. Despite my none-too-subtle signs of boredom, he refuseddistracted and made a fair fool of himself by using several unsupported and

The so what, or key take-aways are crucial. Consultants learn that without a resulting message it is useless. So remember

that when you finish a discussion or analysis, the resulting message must be clear and useful. Ideally, it leads to a new understanding of the issue you

Dont respond to a question with a question, but if you really dont meant, ask. Consultants are constantly faced with

learning about new companies and industries. They know that you will have to ask questions; sometimes they are setting tasks on purpose to see what questions you will ask. The basic rule of there are no stupidhowever, does not apply. There are stupid questions, in fact, there are very

and you should not ask them. Stupid questierrors. The first is asking for information you should

already have, or will not need. The second is to frame or structure the question badly. A badly structured question is ambiguous, unclear, or imprecise. Such questions also have an answer that only addsfacts to the issue under discussion. The third is not really a question, but

unstructured monologue of the persons thoughts. A consultant knows where he is heading: the consultant has a critical path

solving the case. If he is leading you, trust him to know what he is saying. He will have run through the case several times before and knows what you need to solve it. In the same way, you will be able to detect when you are going the wrong way in a case, because he will become bored with your approach to the problem. He may decide to play Yes, No, or

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engineering student expounded at length on the concept ergonomics in this product. Since I had played a major

of the specific product he cited, I think it about it than he would ever

subtle signs of boredom, he refused to be distracted and made a fair fool of himself by using several unsupported and

nsultants learn that without a resulting message it is useless. So remember

analysis, the resulting message must be understanding of the issue you

Dont respond to a question with a question, but if you really dont meant, ask. Consultants are constantly faced with

industries. They know that you will have on purpose to see what

questions you will ask. The basic rule of there are no stupid questions, however, does not apply. There are stupid questions, in fact, there are very

and you should not ask them. Stupid questions can errors. The first is asking for information you should

second is to frame or structure the ambiguous, unclear, or

have an answer that only adds irrelevant facts to the issue under discussion. The third is not really a question, but

A consultant knows where he is heading: the consultant has a critical path solving the case. If he is leading you, trust him to know what he

through the case several times before and knows way, you will be able to detect when

become bored with your approach to the problem. He may decide to play Yes, No, or

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Irrelevant game with you. This technique means he will not give you any other answers than these words. Dont be disturbed by this, but rather go with the flow and lead the

8. The professional service company. Dont forget that consultants are client driven. Answers should focus on what this means for the client and what is helpful advice. For thevalue.

9. We are in it for the money. Though MBAs should know this anyway, dont forget that all businesses are in it for only one of two objectives: either to make money or serve theRevenue Costs in your head. They cananswer.

10. Choose your examples. Interviewers may ask you to cite specific examples Make sure you are up to date on these examples newest strategy, or press releasesupport your argument using relevant examples. Make sure you are up to date and can back the example up with specific supporting evidence. I cant help thinking about the Dilbertwas advised by their consultants to develop furthercompany. Preliminary research by skeptical employees showed thatmodel company had just failed and filed for bankruptcy.

11. Support your argument. Consultants hate why, I just feel that way. Professionally, consultants live by rationalizing everything, so you must bemade about your life, any views you have had orwith clear and coherent argumentation.

12. MECE - Mutually Exclusive, Collectively Exhaustive. This acronym means you are expected to argue using evidence and argumentation that covers every angle, but with clearly separate chains of thought. Your arguments must not overlap but, as a group, be

Irrelevant game with you. This technique means he will not give you any than these words. Dont be disturbed by this, but rather go

h the flow and lead the discussion while explaining where you are going.The professional service company. Dont forget that consultants are client

should focus on what this means for the client and what is helpful advice. For the unenlightened, helpful = increasing shareholder

We are in it for the money. Though MBAs should know this anyway, dont businesses are in it for only one of two objectives: either to

make money or serve the community. So keep simple concepts lCosts in your head. They can be the key to a well

Choose your examples. Interviewers may ask you to cite specific examples Make sure you are up to date on these examples - questions on

, or press releases are not uncommon. In the same your argument using relevant examples. Make sure you are up to

example up with specific supporting evidence. I cant help thinking about the Dilbert example of a successful company, which was advised by their consultants to develop further by emulating another company. Preliminary research by skeptical employees showed thatmodel company had just failed and filed for bankruptcy. Support your argument. Consultants hate little more than, I dont know

that way. Professionally, consultants live by rationalizing everything, so you must be prepared to explain any decision you have made about your life, any views you have had or any statements you make

clear and coherent argumentation. Mutually Exclusive, Collectively Exhaustive. This acronym means expected to argue using evidence and argumentation that covers

clearly separate chains of thought. Your arguments t overlap but, as a group, be completely conclusive.

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Irrelevant game with you. This technique means he will not give you any than these words. Dont be disturbed by this, but rather go

discussion while explaining where you are going. The professional service company. Dont forget that consultants are client

should focus on what this means for the client and what is ened, helpful = increasing shareholder

We are in it for the money. Though MBAs should know this anyway, dont businesses are in it for only one of two objectives: either to

community. So keep simple concepts like Profit = be the key to a well-structured

Choose your examples. Interviewers may ask you to cite specific examples questions on share price,

s are not uncommon. In the same way, your argument using relevant examples. Make sure you are up to

example up with specific supporting evidence. I cant l company, which

by emulating another company. Preliminary research by skeptical employees showed that this

little more than, I dont know that way. Professionally, consultants live by rationalizing

prepared to explain any decision you have any statements you make

Mutually Exclusive, Collectively Exhaustive. This acronym means expected to argue using evidence and argumentation that covers

clearly separate chains of thought. Your arguments

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13. Prioritize what is relevant. Most cases have sidetrack ideas that, though important, are only marginally relevant to the decision. Be conscious of not devoting too much time to suchdangerous when that marginal issue is one you knowexample, if you are asked to discuss Gaps sales strategy, and onare your primary area of interest or knowledge, but at present they are probably less than 1% of sales, beware overemphasizing the importance of that single sales channel. Explainand why. So, for example, if he wants you tosales, then he has the chance to tell you, otherother 99%. Pareto Rules!

14. Break down the problem into bite sized chunks:problems may not be solvable as a whole, but once broken down into small parts, they usually are.

15. Draw charts and diagrams:are usually a mixture of words and pictures, and are a very effective method of communication. If youout a decision tree, block chart or just a list of issuesthink need to be talked about. If you feel confident enough, you mayconsider using some economists graphs them right.

16. State assumptions: Many problems have no absolute right answer. Basing your thought process on assumptions is an these problems and is wellclearly articulating and sometimes defendinginterviews can win you major points with an interviewer. It is afault of bright people to make assumptions and not tell anyone else they have made them. What appears completely coherent to you fails miserably to convince anyone else

17. Conclude well: when you finish, summarize what you hConsultants are going to push you in the interview because they want to

Prioritize what is relevant. Most cases have sidetrack ideas that, though marginally relevant to the decision. Be conscious of not

devoting too much time to such issues. This I have found is especially dangerous when that marginal issue is one you know a lot about. For example, if you are asked to discuss Gaps sales strategy, and onare your primary area of interest or knowledge, but at present they are

% of sales, beware overemphasizing the importance of that single sales channel. Explain to the interviewer how you are prioritizing and why. So, for example, if he wants you to speak mainly about the onsales, then he has the chance to tell you, otherwise concentrate on the other 99%. Pareto Rules! Break down the problem into bite sized chunks: Large and complex

solvable as a whole, but once broken down into small

Draw charts and diagrams: Consultants work by producing charts. These mixture of words and pictures, and are a very effective

method of communication. If you are given a complex issue, try mapping out a decision tree, block chart or just a list of issues and sub

o be talked about. If you feel confident enough, you mayconsider using some economists graphs but make absolutely sure you get

Many problems have no absolute right answer. Basing process on assumptions is an obvious and neat way of solving

these problems and is well accepted business practice. More importantly, clearly articulating and sometimes defending assumptions in case interviews can win you major points with an interviewer. It is a

t people to make assumptions and not tell anyone else they them. What appears completely coherent to you fails miserably

to convince anyone else who cannot follow your secret thought processes.when you finish, summarize what you have said succinctly.

Consultants are going to push you in the interview because they want to

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Prioritize what is relevant. Most cases have sidetrack ideas that, though marginally relevant to the decision. Be conscious of not

ound is especially a lot about. For

example, if you are asked to discuss Gaps sales strategy, and on-line sales are your primary area of interest or knowledge, but at present they are

% of sales, beware overemphasizing the importance of to the interviewer how you are prioritizing

speak mainly about the on-line concentrate on the

Large and complex solvable as a whole, but once broken down into small

y producing charts. These mixture of words and pictures, and are a very effective

are given a complex issue, try mapping and sub-issues you

o be talked about. If you feel confident enough, you may but make absolutely sure you get

Many problems have no absolute right answer. Basing obvious and neat way of solving

business practice. More importantly, assumptions in case

interviews can win you major points with an interviewer. It is a common t people to make assumptions and not tell anyone else they

them. What appears completely coherent to you fails miserably who cannot follow your secret thought processes.

ave said succinctly. Consultants are going to push you in the interview because they want to

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see how far you can go.not pushing you and second the boundaries. By definition, that means that there will be ayou are out of your depth. They are not doing this to be mean, nor do they expect you to be able to know everything. They are just trying to see just how much you do know , or are able to cope

2.FRAMEWORKS

2.1 PESTEL Framework There are many factors in the macroof the managers of any organization. To help analyze these factors managers can categorize them using the PESTEL model which is a framenvironmental factors used in the environmental scanning component of strategic management. It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro-environmental factors that the company has to take into consideration.

see how far you can go. This means two things. First, be worried if they are not pushing you and second more usefully they are going to push you to

ies. By definition, that means that there will be ayou are out of your depth. They are not doing this to be mean, nor do they

you to be able to know everything. They are just trying to see just how much you do know , or are able to cope with.

There are many factors in the macro-environment that will affect the decisions of the managers of any organization. To help analyze these factors managers can categorize them using the PESTEL model which is a framework of macroenvironmental factors used in the environmental scanning component of strategic management. It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the

ironmental factors that the company has to take into

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This means two things. First, be worried if they are they are going to push you to

ies. By definition, that means that there will be a point when you are out of your depth. They are not doing this to be mean, nor do they

you to be able to know everything. They are just trying to see just

environment that will affect the decisions of the managers of any organization. To help analyze these factors managers

ework of macro-environmental factors used in the environmental scanning component of strategic management. It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the

ironmental factors that the company has to take into

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Typical PESTEL factors to consider include:Factor Political

Economic

Social

Technological

Environmental

Legal

Political factors These refer to government policy such as the degree of intervention in the economy. What goods and services does a goextent does it believe in subsidizing firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nthe infrastructure of the economy such as the road and rail system. Economic factors These include interest rates, taxation changes, economic growth, inflation and exchange rates. For example:

Higher interest rates may deter inborrow

Typical PESTEL factors to consider include: Could include: e.g. EU enlargement, UN, NATO, SAARC, ASEAN, international trade, taxation policy e.g. interest rates, exchange rates, national income, inflation, unemployment, Stock Market e.g. ageing population, attitudes to work, income distribution e.g. innovation, new product development, rate of technological obsolescence e.g. global warming, environmental issues e.g. competition law, health and safety, employment law

These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidizing firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system.

These include interest rates, taxation changes, economic growth, inflation and

Higher interest rates may deter investment because it costs more to

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e.g. EU enlargement, UN, NATO, SAARC, ASEAN, international trade,

est rates, exchange rates, national income, inflation, unemployment, Stock Market e.g. ageing population, attitudes to work, income distribution e.g. innovation, new product development, rate of technological

e.g. global warming, environmental

e.g. competition law, health and

These refer to government policy such as the degree of intervention in the vernment want to provide? To what

extent does it believe in subsidizing firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business

ation and the quality of

These include interest rates, taxation changes, economic growth, inflation and

vestment because it costs more to

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A strong currency may make exporting more difficult because it may raise the price in Terms of foreign currency Inflation may provoke higher wage demands from employees and raise costs Higher national income growth may boost demand for a firms products

Social factors Changes in social trends can impact on the demand for a firms products and the availability and willingness of individuals to work. In certain developed countries of the world, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staff is living longer. It also means some firms have started to recruit older employees to tap into this growing labor pool Technological factors New technologies create new products and new processes. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organizations providing the products. Environmental factors Environmental factors include the weather and climate change. Changes in temperature can impact on many industries ininsurance. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. Legal factors

A strong currency may make exporting more difficult because it may raise

Terms of foreign currency Inflation may provoke higher wage demands from employees and raise

me growth may boost demand for a firms products

Changes in social trends can impact on the demand for a firms products and the availability and willingness of individuals to work. In certain developed countries

ion has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staff is living longer. It also means some firms have started to recruit older employees to tap into this growing labor pool.

New technologies create new products and new processes. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. Technology can reduce costs, improve quality

lead to innovation. These developments can benefit consumers as well as the organizations providing the products.

Environmental factors include the weather and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant

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A strong currency may make exporting more difficult because it may raise

Inflation may provoke higher wage demands from employees and raise

me growth may boost demand for a firms products

Changes in social trends can impact on the demand for a firms products and the availability and willingness of individuals to work. In certain developed countries

ion has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staff is living longer. It also means some firms have started to recruit older

New technologies create new products and new processes. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. Technology can reduce costs, improve quality

lead to innovation. These developments can benefit consumers as well as the

Environmental factors include the weather and climate change. Changes in cluding farming, tourism and

insurance. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant


These are related to the legal environment in which firms operate. In recent years there have been many significant legal changes that have affected firms behaviour. The introduction of age discrimination and disability discrimination legislation, an increase in the minimum wagto recycle are examples of relatively recent laws that affect an organizations actions. 2.2 Marketing Mix / The 4Ps Marketing Mix While marketing a product, a firm needs to balance an appropriate mix of several key elements to create a successful marketing campaign. Each of these elements is required to be mixed in the right proportion. For example, a brilliant product might be unsuccessful if it is not properly priced. The 4Ps

The marketing mix has been tradi

e legal environment in which firms operate. In recent years there have been many significant legal changes that have affected firms behaviour. The introduction of age discrimination and disability discrimination legislation, an increase in the minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organizations

Marketing Mix / The 4Ps

While marketing a product, a firm needs to balance an appropriate mix of several elements to create a successful marketing campaign. Each of these elements

is required to be mixed in the right proportion. For example, a brilliant product might be unsuccessful if it is not properly priced.

The marketing mix has been traditionally defined by the 4 Ps

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e legal environment in which firms operate. In recent years there have been many significant legal changes that have affected firms behaviour. The introduction of age discrimination and disability discrimination

e and greater requirements for firms to recycle are examples of relatively recent laws that affect an organizations

While marketing a product, a firm needs to balance an appropriate mix of several elements to create a successful marketing campaign. Each of these elements

is required to be mixed in the right proportion. For example, a brilliant product

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Product/Service The product or the service that the firm develops should be able to satisfy the customer needs, as determined by market research. This would involve decisions regarding the brand name, functionality, styling, quality, support service, warranty, accessories etc.

Price The pricing strategy of the firm determines the profitability of the

company. The pricing strategy followed by the firm could be market skimming, market penetration or neutral pricing. The kfor pricing are - the value of the product or service to the buyer, preestablished price points for the products or services, price sensitivity of the customer, discounts to be offered pricing strategy of the competitors, etc.

Promotion - This represents the methods of communication that a firm

may use to provide information about the product. Promotion comprises elements such as advertising, public relations, personal selling and sales promotion. The promotional strategy could be a pustrategy. A push strategy makes use of a company's sales force and trade promotion activities to selling strategy requires high spending on advertising and consumer promotion to build up consumer demand for a product.

Place This involves providing access to markets for the products. It is

about creating distribution channels for products. A firm could follow Market coverage strategies such as intensive distribution, selective distribution, exclusive distribution, franchising etc.

The 8Ps In the modern context, in a services dominated world, 4 additional Ps have been added to the marketing mix framework.

The product or the service that the firm develops should be able to satisfy the customer needs, as determined by market research. This would involve decisions regarding the brand name, functionality,

g, quality, support service, warranty, accessories etc.

The pricing strategy of the firm determines the profitability of the company. The pricing strategy followed by the firm could be market skimming, market penetration or neutral pricing. The key decision points

the value of the product or service to the buyer, preestablished price points for the products or services, price sensitivity of the customer, discounts to be offered pricing strategy of the competitors, etc.

This represents the methods of communication that a firm may use to provide information about the product. Promotion comprises elements such as advertising, public relations, personal selling and sales promotion. The promotional strategy could be a push strategy or a pull strategy. A push strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product. A pull selling strategy requires high spending on advertising and consumer

p consumer demand for a product.

This involves providing access to markets for the products. It is about creating distribution channels for products. A firm could follow Market coverage strategies such as intensive distribution, selective

ution, exclusive distribution, franchising etc.

In the modern context, in a services dominated world, 4 additional Ps have been added to the marketing mix framework.

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The product or the service that the firm develops should be able to satisfy the customer needs, as determined by market research. This would involve decisions regarding the brand name, functionality,

The pricing strategy of the firm determines the profitability of the company. The pricing strategy followed by the firm could be market

ey decision points the value of the product or service to the buyer, pre-

established price points for the products or services, price sensitivity of the customer, discounts to be offered pricing strategy of the competitors, etc.

This represents the methods of communication that a firm may use to provide information about the product. Promotion comprises elements such as advertising, public relations, personal selling and sales

sh strategy or a pull strategy. A push strategy makes use of a company's sales force and trade

for a product. A pull selling strategy requires high spending on advertising and consumer

This involves providing access to markets for the products. It is about creating distribution channels for products. A firm could follow Market coverage strategies such as intensive distribution, selective

In the modern context, in a services dominated world, 4 additional Ps have been

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These additional Ps are

Process This means the process by which the firelements. The firm needs to determine between the standardization and customization of processes. It also needs to determine processes that are aligned to its organizational strategy.

Physical Environment -

delivered may have a significant impact upon whether the service was satisfactory. This forms perceptions about the product or service to be provided.

People Getting the right talent mix is extremely essential for a firm,

especially in the services sector. The front line staff is the point of contact with the customer and is responsible for providing a favourable customer experience. Hence, it is critical to recruit the right talent pool and train and develop people. It is also crsuccession planning.

This means the process by which the firm delivers product elements. The firm needs to determine between the standardization and customization of processes. It also needs to determine processes that are aligned to its organizational strategy.

- The appearance of the place where the services are delivered may have a significant impact upon whether the service was satisfactory. This forms perceptions about the product or service to be

Getting the right talent mix is extremely essential for a firm, lly in the services sector. The front line staff is the point of contact

with the customer and is responsible for providing a favourable customer experience. Hence, it is critical to recruit the right talent pool and train and develop people. It is also critical to develop a leadership pipeline for easy

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m delivers product elements. The firm needs to determine between the standardization and customization of processes. It also needs to determine processes that are

where the services are delivered may have a significant impact upon whether the service was satisfactory. This forms perceptions about the product or service to be

Getting the right talent mix is extremely essential for a firm, lly in the services sector. The front line staff is the point of contact

with the customer and is responsible for providing a favourable customer experience. Hence, it is critical to recruit the right talent pool and train and

itical to develop a leadership pipeline for easy

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Packaging: This is the most recently added P of marketing. The role of

packaging is critical as it attracts the customer to purchase the product. Packaging involves using the appropriawith the identity of the product as well as differentiate the product in a retail outlet. For the services sector, packaging could involve certain tangible features such as uniforms of the service agents or the look and feel of the service package.

2.3 Porters Five Forces Origin Porters five forces analysis was developed in 1979 by Michael Porter. It is a framework analysing the macro environment of an industry. It is widely used to evaluate the attractiveness of a bqualitatively, that the business has to offer. Any business is said to experience the impact of the five forces that determine profitability. The Structure Bargaining power of Suppliers

A high level of supplier bargaining power is not good for profitability as it has the potential to impact the COGS if suppliers demand greater prices, to affect production schedule if they negotiate delivery terms more convenient to them etc.

Firms can have significant bargainto resources that are rare or if they have considerable size and reputation in the market

For example, Boeing and Airbus are the only makers of large aircraft and can hence impose their will on the customers

Bargaining power of Customers

: This is the most recently added P of marketing. The role of packaging is critical as it attracts the customer to purchase the product. Packaging involves using the appropriate colours, look and feel o match with the identity of the product as well as differentiate the product in a retail outlet. For the services sector, packaging could involve certain tangible features such as uniforms of the service agents or the look and

el of the service package.

Porters five forces analysis was developed in 1979 by Michael Porter. It is a framework analysing the macro environment of an industry. It is widely used to evaluate the attractiveness of a business based on the expected profitability, qualitatively, that the business has to offer. Any business is said to experience the impact of the five forces that determine profitability.

Bargaining power of Suppliers er bargaining power is not good for profitability as it

has the potential to impact the COGS if suppliers demand greater prices, to affect production schedule if they negotiate delivery terms more convenient to them etc. Firms can have significant bargaining power if they produce or have access to resources that are rare or if they have considerable size and reputation

For example, Boeing and Airbus are the only makers of large aircraft and can hence impose their will on the customers

aining power of Customers

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: This is the most recently added P of marketing. The role of packaging is critical as it attracts the customer to purchase the product.

te colours, look and feel o match with the identity of the product as well as differentiate the product in a retail outlet. For the services sector, packaging could involve certain tangible features such as uniforms of the service agents or the look and

Porters five forces analysis was developed in 1979 by Michael Porter. It is a framework analysing the macro environment of an industry. It is widely used to

usiness based on the expected profitability, qualitatively, that the business has to offer. Any business is said to experience the

er bargaining power is not good for profitability as it has the potential to impact the COGS if suppliers demand greater prices, to affect production schedule if they negotiate delivery terms more

ing power if they produce or have access to resources that are rare or if they have considerable size and reputation

For example, Boeing and Airbus are the only makers of large aircraft and

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A high level of customer bargaining power is bad because a company may have to invest significantly in product differentiation or customer acquisition to serve the markets. These extra costs will have a direct impact on the bottom-line

Markets in which supply exceeds demand or in which customers are large players with significant market shares can tilt the power in the favour of customers.

For example Tata group on account of its sheer size can dictate terms to suppliers like ABB.

Threat of New entrants

Ease of entry of new entrants would mean greater competition , loss of market share and can easily lead to excess supply scenario thereby reducing profitability for all firms in that industry.

Industries that require high initby the government are said to have created barriers to entry for new entrants.

Consider the relative ease with regards to investment, regulatory approval and the required infrastructure with which a local Kiranaas opposed to a new entrant in Telecom services that requires significant infrastructure and spectrum investments.

Threat of Substitutes

Industries where products can be easily substituted are also not considered very attractive. It is difficult to prevent customers from switching in such a market. Furthermore such markets are also highly sensitive to price and supply fluctuations

For example natural gas may be considered as a substitute to petrol Competitive Rivalry

A high level of customer bargaining power is bad because a company may have to invest significantly in product differentiation or customer acquisition to serve the markets. These extra costs will have a direct impact

Markets in which supply exceeds demand or in which customers are large players with significant market shares can tilt the power in the favour of

For example Tata group on account of its sheer size can dictate terms to

Ease of entry of new entrants would mean greater competition , loss of market share and can easily lead to excess supply scenario thereby reducing profitability for all firms in that industry. Industries that require high initial investment or that are highly regulated by the government are said to have created barriers to entry for new

Consider the relative ease with regards to investment, regulatory approval and the required infrastructure with which a local Kirana shop can be setup as opposed to a new entrant in Telecom services that requires significant infrastructure and spectrum investments.

Industries where products can be easily substituted are also not considered s difficult to prevent customers from switching in such a

market. Furthermore such markets are also highly sensitive to price and

For example natural gas may be considered as a substitute to petrol

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A high level of customer bargaining power is bad because a company may have to invest significantly in product differentiation or customer acquisition to serve the markets. These extra costs will have a direct impact

Markets in which supply exceeds demand or in which customers are large players with significant market shares can tilt the power in the favour of

For example Tata group on account of its sheer size can dictate terms to

Ease of entry of new entrants would mean greater competition , loss of market share and can easily lead to excess supply scenario thereby

ial investment or that are highly regulated by the government are said to have created barriers to entry for new

Consider the relative ease with regards to investment, regulatory approval shop can be setup

as opposed to a new entrant in Telecom services that requires significant

Industries where products can be easily substituted are also not considered s difficult to prevent customers from switching in such a

market. Furthermore such markets are also highly sensitive to price and

For example natural gas may be considered as a substitute to petrol

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Every industry would prefer to operate in an environment of minimum competition

The number of competitors, the degree of innovation and kind of

competitive strategies employed may significantly influence the intensity of competition. The greater the intensity of compepressure on margins and profits.

Consider the mobile handset segment in which there are numerous competitors and new products are frequently introduced. Hence companies are under immense pressure to respond to new offerings of compThe model assumes that buyers, suppliers and competitors cannot collude and that there is symmetric information flow within the market about competitor actions. Extensions Complementors are widely considered to be the sixth force. This force afor firms entering into strategic alliances in the form of Joint Ventures, partnerships etc.

would prefer to operate in an environment of minimum

The number of competitors, the degree of innovation and kind of competitive strategies employed may significantly influence the intensity of competition. The greater the intensity of competition the more is the pressure on margins and profits.

Consider the mobile handset segment in which there are numerous competitors and new products are frequently introduced. Hence companies are under immense pressure to respond to new offerings of competitors. The model assumes that buyers, suppliers and competitors cannot collude and that there is symmetric information flow within the market about competitor

Complementors are widely considered to be the sixth force. This force afor firms entering into strategic alliances in the form of Joint Ventures,

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would prefer to operate in an environment of minimum

The number of competitors, the degree of innovation and kind of competitive strategies employed may significantly influence the intensity of

tition the more is the

Consider the mobile handset segment in which there are numerous competitors and new products are frequently introduced. Hence companies are under

The model assumes that buyers, suppliers and competitors cannot collude and that there is symmetric information flow within the market about competitor

Complementors are widely considered to be the sixth force. This force accounts for firms entering into strategic alliances in the form of Joint Ventures,


2.4 Market Entry Strategy Market entry strategies are generally used by companies entering their operations/sales in new countries or new markets ofthese strategies have become very popular on account of companies started looking for diversifying into emerging countries. The broad framework for entering into any market is given below Step 1: Understanding Market Dynamics

Step 2: Understanding Risks Involved & Timing of Entry Analyze the different types of risks involved in entering a new market

No knowledge of market Weather risk Systematic risk Sovereign risk Foreign exchange risk Liquidity risk

Market entry strategies are generally used by companies entering their operations/sales in new countries or new markets of the same location. Recently these strategies have become very popular on account of companies started looking for diversifying into emerging countries. The broad framework for entering into any market is given below

Step 1: Understanding Market Dynamics

Step 2: Understanding Risks Involved & Timing of Entry Analyze the different types of risks involved in entering a new market

No knowledge of market

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Market entry strategies are generally used by companies entering their the same location. Recently

these strategies have become very popular on account of companies started looking for diversifying into emerging countries. The broad framework for

Analyze the different types of risks involved in entering a new market

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Also, the company has to take into account the timing of entry i.e. first mover or late entrant and depending on that redefine the value proposition and market entry strategy. Step 3: Types of Market Entry Options 1. Licensing is defined as the method of foreign ocountry agrees to permit a company in another country to use the manufacturing, processing, trademark, know-how or some other skill provided by the licensor. It is quite similar to the franchise operation. Coca Cola is anof licensing. In Zimbabwe, United Bottlers have the licensee to make Coke. 2. Joint ventures can be defined as an enterprise in which two or more investors share ownership and control over property rights and operation.Joint ventures are a more extensive form of participation than either exporting or licensing. In Zimbabwe, Olivine industries have a joint venture agreement with HJ Heinz in food processing. 3. Ownership: The most extensive form of participation is 100% ownership and this involves the greatest commitment in capital and managerial effort. The ability to communicate and control 100% may outweigh any of the disadvantages of joint ventures and licensing. However, as mentioned earlier, repatriation of earnings and capital has to be carefully monitored. The more unstable the environment the less likely is the ownership pathway an option. 4. Export processing zones (EPZ): Whilst not strictly speaking an entryEPZs serve as an entry into a market. They are primarilyfor would be investors but can also provide employment for the host country and the transfer of skills as well as provide a base for the flow of goods in and out of the country. 2.5 The BCG Matrix

pany has to take into account the timing of entry i.e. first mover or late entrant and depending on that redefine the value proposition and market

Step 3: Types of Market Entry Options

is defined as the method of foreign operation whereby a firm in one country agrees to permit a company in another country to use the manufacturing,

how or some other skill provided by the licensor. It is quite similar to the franchise operation. Coca Cola is an excellent example of licensing. In Zimbabwe, United Bottlers have the licensee to make Coke.

can be defined as an enterprise in which two or more investors share ownership and control over property rights and operation.

are a more extensive form of participation than either exporting or licensing. In Zimbabwe, Olivine industries have a joint venture agreement with HJ

: The most extensive form of participation is 100% ownership and his involves the greatest commitment in capital and managerial effort. The ability

to communicate and control 100% may outweigh any of the disadvantages of joint ventures and licensing. However, as mentioned earlier, repatriation of

s to be carefully monitored. The more unstable the environment the less likely is the ownership pathway an option.

(EPZ): Whilst not strictly speaking an entryEPZs serve as an entry into a market. They are primarily an investment incentive for would be investors but can also provide employment for the host country and the transfer of skills as well as provide a base for the flow of goods in and out of

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pany has to take into account the timing of entry i.e. first mover or late entrant and depending on that redefine the value proposition and market

peration whereby a firm in one country agrees to permit a company in another country to use the manufacturing,

how or some other skill provided by the licensor. excellent example

of licensing. In Zimbabwe, United Bottlers have the licensee to make Coke. can be defined as an enterprise in which two or more investors

are a more extensive form of participation than either exporting or licensing. In Zimbabwe, Olivine industries have a joint venture agreement with HJ

: The most extensive form of participation is 100% ownership and his involves the greatest commitment in capital and managerial effort. The ability

to communicate and control 100% may outweigh any of the disadvantages of joint ventures and licensing. However, as mentioned earlier, repatriation of

s to be carefully monitored. The more unstable the

(EPZ): Whilst not strictly speaking an entry-strategy, an investment incentive

for would be investors but can also provide employment for the host country and the transfer of skills as well as provide a base for the flow of goods in and out of

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The BCG matrix (Boston Box, Bosthe Bruce Henderson for the Boston Consulting Group in 1968 to help corporations with analyzing their business units or product lines. The matrix is used as a tool by companies to allocate its resources among ilines. It is also a useful tool to classify, understand and possibly predict the performance of its products.

The model is a 2X2 matrix that classifies products based on their Relative market share and Market growth rate into four cRationale for Classification Market Growth rate A growing market is always a good sign because it implies greater demand and more opportunities for business to earn revenues. But it also means that to tap the market, businesses will have tocapacity, generating awareness and building efficient distribution channels etc. A growth rate of over 10% is considered to be desirable in any market. Relative Market share Relative market share is used as an indicator to assess ability to generate cash flows. If the largest competitor has a 60% share and if your company has a 20% share then the ratio works out to be 3:1. This indicates

The BCG matrix (Boston Box, Boston Matrix, portfolio diagram) was created by the Bruce Henderson for the Boston Consulting Group in 1968 to help corporations with analyzing their business units or product lines. The matrix is used as a tool by companies to allocate its resources among its various product lines. It is also a useful tool to classify, understand and possibly predict the

The model is a 2X2 matrix that classifies products based on their Relative market share and Market growth rate into four categories.

A growing market is always a good sign because it implies greater demand and more opportunities for business to earn revenues. But it also means that to tap the market, businesses will have to invest in expanding capacity, generating awareness and building efficient distribution channels etc. A growth rate of over 10% is considered to be desirable in any market.

Relative market share is used as an indicator to assess ility to generate cash

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