Consulting Decaffeinated: Season-04

Departure: Backspace Consulting LLP, Kolkata

Arrival: Indian Institute of Management, Raipur

Breakspace Case-in-law
Breakspace Out of the Case
How to Analyse a Case?

B
ü  Contingency Plan

ü  Deciding on an Action Plan

ü  Evaluating the Options

ü  Analyzing the Options

ü  Current Situation Analysis

ü  Identifying the Stakeholders

ü  Defining the Problem Statement

ü  Identifying the Problem

Framework: SWOT

Strong customer
base, strong brand
Lack of trained
value, good
workforce, lack of
distribution
clear strategy
network, loyalty of
customers

Advent of new
technology, exploring
Recession,
new geographic
entry of competitors
locations, increase in
purchasing power of
customers

Strengths and Weaknesses- both analyze the internal environment of the firm
Opportunities and Threats- both analyze the external environment of the firm
 Framework: SWOT

Durex

Experience and Popularity: Controversies:

Quality and variety Advertisements create a lot
Distribution Network : Increasing of controversies
the presence Limited products: No product-
Continuous Investment: RB line variety
guiding the brand to make it Free Condoms: Government
bigger turning a competitor by
providing free condoms

Rising awareness: People are

learning the need to protect Restrictions: Government
themselves restrictions on advertisements
will affect growth
New markets: Using current
brand to improve market share Traditional mindset:
with new products Discomfort in social discussion
Framework: Profit = Revenue - Cost

Revenue Profit? Cost

An effective framework for handling the “Why are profits falling?” cases
Framework: 4Cs- Company, Cost, Competition, Customer

Payment Solutions
Wallet
Company Bank
Customer service
Marketplace

Online shoppers Customer acquisition

App users Customer retention
Customer Cost Businesses Paytm
Service level…
Online and offline
merchants
Banks
Other e-wallet
and digital
Competition payments app
E-commerce
companies

Useful for “New Business Opportunity” cases

Framework: 4Ps

Price
(Retail, Discount, Bonuses, Payment Plans, and Credit terms)

Promotion
(Advertising, Personal selling, Sales promotion, Public relations, Sponsorship,
Sales calls, Brochures, and E-mails)

Place
(Distribution, Retail Locations, Downloads, Delivery, and Logistics)

Product
(Variety, Quality, Design, Package, and Brand)

Defining your marketing plan- whether you are launching a new product or re-evaluating an existing one
 Framework: 4Ps

Advertisements
Event tickets
Price
(Retail, Discount, Bonuses, Payment Plans, and Credit terms)
Consulting services

Content marketing
Promotion
New customer offers (Advertising, Personal selling, Sales promotion, Public relations, Sponsorship,
Business Cooperation Sales calls, Brochures, and E-mails)

Digital Place
(Distribution, Retail Locations, Downloads, Delivery, and Logistics)

Restaurant info
Table booking
Product
Delivery
(Variety, Quality, Design, Package, and Brand)

Defining your marketing plan- whether you are launching a new product or re-evaluating an existing one
Guesstimate: Framework

RASCAL
 Framework: Porter’s Five Forces

Ed-Tech

Number of Suppliers: Many Time and Cost of Entry: Moderate

Size of Suppliers: Varying Specialist Knowledge: Low
Uniqueness of Service: Low Economies of Scale: High
Ability to Substitute: High Cost Advantage: Low
Cost of Changing: Low Technology Protection: Low
Barriers to Entry: Low
LOW
Rivalry among
HIGH
existing
competitors
HIGH

Number of Customers: Many End Consumer Needs: Varying

Size of Each Order: Varying Service Perception: Unhealthy
Competitors’ Differences: Low Cost of Change: Low
Price Sensitivity: High Variety of Choice: High
Ability to Substitute: High
Cost of Changing: Low HIGH

HIGH
To understand where power lies in a business situation
 Framework: Porter’s Five Forces

Patanjali

Number of Suppliers: Many Time and Cost of Entry: Moderate

Size of Suppliers: Varying Specialist Knowledge: Low
Uniqueness of Service: Low Economies of Scale: High
Ability to Substitute: High Cost Advantage: Low
Cost of Changing: Low Technology Protection: Low
Barriers to Entry: Low
LOW
Rivalry among
HIGH
existing
competitors
HIGH

Number of Customers: Many End Consumer Needs: Varying

Size of Each Order: Low Product Perception: Healthy
Competitors’ Differences: Moderate Cost of Change: Low
Price Sensitivity: High Variety of Choice: High
Ability to Substitute: High
Cost of Changing: Low HIGH

HIGH
To understand where power lies in a business situation
 Framework: BCG Matrix
Relative Market Share
(Cash Generation)
High Low

High
Relative Market Growth
(Cash Consumption)
Assumption:
1. Increase in market share will result in increase in
generation of cash
2. Growth of market would mean consumption of
cash

Low
The matrix gives a relevant business unit position within these two important determinants of profitability
Framework: BCG Matrix

Patanjali HUL
Soups Atta
Jam
Hair-care Cornflakes Foods
Kesh Kanti Oats
Body-care Oral-care
Oral-care Foods Chocolates Soaps Toothpaste
Dant Kanti Atta Noodles Deodorants
Biscuits
Toothpaste
Detergents Disinfectants
Beverages Tea
Floor Cleaner
Lipton
Health drink Grocery Fairness Cream
Men’s

Agarbatti
Shampoo
Herbal Home-care
Pooja Essentials Hair-care
Medicine Bru
Cleansers Coffee
Ghee
Honey Body-care Moisturizing cream Brooke Bond
Nutritional Supplements Soaps
Vaseline
Chyawanprash

Focusing on health- Catering to each and every

conscious market segment of the society
Student Query

How to Pitch? How to participate in B-School Competitions?

Digital TV at a glance

……………………………………………………………………………………………………..
……………………………………………………………………………………………………..

Market
Size : XX Players Airtel Tata Sky Dish TV ….
Billion Brand recall ✓ ✓ ✓
Performance ✘ ✓ ✓
Penetration ✘ ✓ ✘
Distribution ✘ ✘ ✓
CAGR :
XX Flexibility ✓ ✘ ✘
…

……………………………………………………………………………………………………..
……………………………………………………………………………………………………..

Customer segmentation – Gap analysis

Age: 25-30 Age: 25-30

•  Installation Inconvenience •  Installation Inconvenience
•  Perceived absence of •  Perceived absence of
Information Information

Age: 31-40 Rural Market Age: 31-40

•  Perceived absence of •  Installation Inconvenience
Information •  Perceived absence of
•  Installation Inconvenience Information

Age: 41-60 Age: 41-60

•  Installation Inconvenience •  Installation Inconvenience
•  Perceived absence of •  Perceived absence of
Information Urban Market Information
 Recommendation: Tapping the potential
•  Bundling with mobile pack (Price of mobile
services may be same and that of digital may be
Urban lowered perception is important)
•  ……….
25-30
•  Bundling with mobile pack (Price of mobile
services may be same and that of digital may be
lowered perception is important)
•  ……….

Rural Rural
41-60 25-30
•  Bundling with mobile pack (Price of mobile
services may be same and that of digital may be
lowered perception is important)
•  ……….

•  Bundling with mobile pack (Price of mobile

services may be same and that of digital may be
lowered perception is important)
•  ……….

Urban Urban
41-60 31-40
•  Bundling with mobile pack (Price of mobile
services may be same and that of digital may be
lowered perception is important)
•  Bundling with mobile pack (Price of mobile Rural •  ……….
services may be same and that of digital may be
lowered perception is important) 31-40
•  ……….
 Roadmap

2018 2019 2020 2021 2022

Package

…………………. ……………………
Tie-ups

………………….. ……………………….
Experience

………………………………………………. ……………………
Innovation

………………… ……………… …………………

 Scenario analysis

Cost
NPV projection

Revenue Market
projections Share

Best Case Most Likely Worst Case

Parameters: Parameters: Parameters:
Macro-Economic: ….. Macro-Economic: ….. Macro-Economic: …..
Technological: ….. Technological: ….. Technological: …..
Competitive: ….. Competitive: ….. Competitive: …..
…. …. ….

 Appendix

2018 2019 2020 2021 2022

Addnl. Investments
Assumptions ……..
……..
Addnl. Costs
……
…..

……….. ……
………. Expected Reach
…………..
…… Addnl. Revenue
…………………. ……
………..
……
…
 References

•  Source is important
Framework: PESTLE Model

P E S
olitical: determines conomic: determinants of ocial: determinants such
government’s influence on economic performance that as cultural trends,
the economy of certain has an impact on the industry. demographics, etc. e.g.
industry e.g. tax policies e.g. inflation rates, interest retail buying trends in
rates Kolkata during Durga Puja

T L E
echnological: egal: could be laws enacted by nvironmental: includes
factors innovation that a country that affect business or impacts determined by
may affect the internally set policies of the surrounding environment.
operation e.g. R&D company e.g. labour laws, Industries most impacted
consumer laws would be farming,
agriculture.

To track the environment in which a company is planning to launch a product/service/project

Donald Trump: PESTLE Model

P E S
Abandonment of TPP Anti-immigration
Populist
“America First” Use of social media
Casual authoritarian Spending cuts Pro-life

T L E
Federal research cuts Review of US Policy (Iran) Global warming as hoax
Lack of agenda New legal leader
Reversal of climate
No advisors on technology Strategic impatience (N. Korea) change regulations

To track the environment in which a company is planning to launch a product / service / project
 Sector Specific Frameworks/Information
Telecom Insurance
Customer preferences: Call Centre Issues: Major costs:
•  Prices •  Administration
•  Service (new connection, issue resolution) •  Automation •  Investigation
•  Discounted high usage plans •  Peak Demand-Manpower mismatch •  Claims
•  Recharge SKUs range •  Incentive Structures •  Distribution Network
•  Offers (customized, promotional) •  Other fixed costs
•  Prepaid vs Post paid
•  Training etc. Claim Cost:
No. of policies * %Claimed * Claim Amt.
Process flow of applications:
Receive è Documentation è Survey è Permission è
Fee Collection è Approval è Servicing Revenues Pharmaceutical
•  Domestic market
•  Export
Banking Factors influencing domestic market
Major Costs: Customer preferences: Sources of Revenue:
•  Strategy- Financials; product strength; R&D pipeline
•  Borrowing costs •  Service •  Card transactions •  Operating segment (Generic vs Lifestyle vs Niche)
•  Checks for loans •  Costs •  Net interest income •  Regulations
•  NPAs •  Quality •  Transactions •  Product portfolio age
•  Branch Costs •  Convenience Factors influencing export market
•  Technology •  Technology
•  Utilities •  Perception •  Manufacturing base (cost effectiveness & demand)
•  Investments etc. •  National Presence etc. •  R&D base
Listing down important pointers for each of the sectors helps the candidate think faster in terms of making the entire framework
 Exhaustive Value Chain Framework

Management Consulting

Design Procure Produce Storage

•  New Designs •  Suppliers •  Land, Labour, Capital •  FGs Storage
•  Contracts
•  Availability of Designers •  Freight In •  Location •  Capacity
•  Storage
•  Competitor •  Quality •  Capacity •  Safety, Theft, Damage
Benchmarking •  Raw Material
•  Management Planning •  Lease Agreements

•  Technology

Reverse Post-Sales Distribution

Marketing
Logistics Service and Sales
•  Percentage Defects •  Service Quality •  Positioning •  Number of Nodes
•  Margins
•  Transport Costs •  Why Returns? •  Promotions •  Stock Outs, Lead Time
•  Truck Utilizations
•  Benchmarking •  Market Research •  Retail Channels •  Shelf Space
•  Availability
•  Call Center Efficiency •  Customer Preferences •  Accessibility
•  Inventory Planning

To be covered in details on the next slide

 Exhaustive Value Chain Framework

Product Mix Distribution Channel

Specifications Availability
Advantages Accessibility
Disadvantages Retailer Push
Quality Benchmarking
Performance
Warranty

Pre Sale || During Sale || Post Sale ATL

-- Location -- Layout -- Service BTL
-- Access -- Placement -- Return Policy
-- Parking -- Billboards -- Parking Awareness
-- Salesman Discounts
-- Trial Rooms
-- Billing Loyalty Plans
-- Customer Exp. Tie-Ups
 General Categorisation

Management Consulting

Strategy Operations Financial Advisory Human Resource IT / Technology

•  Corporate •  Process •  M&A •  Talent Acquisition •  IT Strategy

•  Public Policy •  Lean Six Sigma •  Risk Management •  Change Management •  Technology Integration
•  Transformation •  Supply Chain •  Valuation •  L&D •  Performance Improvement
•  Innovation •  Logistics •  Due Diligence •  Manpower Planning •  IT Security

Roles and Responsibilities

•  Market Research •  Process Flow •  Market Integration •  Leadership and Talent •  Project Management
•  Brand Management Optimization •  Valuation Acquisition •  Business Analyst
•  Public Policy •  Capacity Planning Considerations •  Compensation and •  Technical Solutions
•  Corporate Planning •  Resource Allocation •  Synergy Maximization Benefits Designs
•  Network •  Working Capital •  Performance •  Strategic Technology
•  Organizational
Optimization Management/Job Sourcing
Transformation Management
•  Cost Reduction Evaluation •  IT Infrastructure
•  Sustainable •  Financial Risk Analysis
•  Service Level •  Employee Retention Development
Profitable Growth Improvement •  Investment Analysis •  HR Functions and HR •  Strategy Consultant
•  Implementation •  Quality Control •  Portfolio Value Solutions •  Outsourcing Risk
•  Out-of-Box Solution •  Inventory Creation •  Employee Training Analysis
Management •  System Design
 General Categorisation

Management Consulting

Strategy Operations Financial Advisory Human Resource IT / Technology

•  Corporate •  Process •  M&A •  Talent Acquisition •  IT Strategy

•  Public Policy •  Lean Six Sigma •  Risk Management •  Change Management •  Technology Integration
•  Transformation •  Supply Chain •  Valuation •  L&D •  Performance Improvement
•  Innovation •  Logistics •  Due Diligence •  Manpower Planning •  IT Security

Companies

•  Deloitte Consulting •  Kurt Salmon •  Ernst & Young LLP •  Aon Hewitt •  Oracle Consulting
•  McKinsey & Company •  L.E.K. Consulting •  FTI Consulting •  The Segal Company •  SAP Services
•  Bain and Company •  The Cambridge Group •  Booz Allen Hamilton •  Towers Watson •  Cisco Systems, Inc.
•  The Boston •  Simon-Kucher & •  Capital Square Group •  Leathers Milligan & •  HP Services
Partners •  Capgemini Associates, LLC •  Infosys Consulting Inc.
Consulting Group
•  ZS Associates •  PwC •  Tata Consulting
•  KPMG LLP •  Verve Financial
•  Roland Berger Strategy •  ABC Consultants Services
•  Accenture Services
Consultant •  Covenant India •  Cognizant
•  A.T. Kearney •  Dean & Company •  Crisil •  Shilputsi •  Wipro Consulting
•  PwC LLP •  Alvarez & Marshal •  Corporate •  HR India Consulting Services
•  CeNext •  Third Eye Consultants •  Mancer Consulting •  Gartner, Inc.
•  Hay Group •  Aequor •  VSK Fin. Consultants Services •  Genpact
 General Categorisation

Boutique Consulting

Strategy Operations Financial Advisory Human Resource IT / Technology

•  Corporate •  Process •  M&A •  Talent Acquisition •  IT Strategy

•  Public Policy •  Lean Six Sigma •  Risk Management •  Change Management •  Technology Integration
•  Transformation •  Supply Chain •  Valuation •  L&D •  Performance Improvement
•  Innovation •  Logistics •  Due Diligence •  Manpower Planning •  IT Security

Roles and Responsibilities Companies

- Strategic Sourcing and - Insight Sourcing Group - CapTech
Procurement - Eagle Hill Consulting - Edgeworth Economics
Selective Industry
- Cold Calling - The Brattle Group - The Cambridge Group
- Extensive Data Analytics - ClearView Healthcare - Clarkston Consulting
- Client Relationship Client Exposure Partner - Jabian Consulting
- Specialized Consulting - Point B - The Chartis Group
- Early Leadership Role - Cornerstone Research - Stern Value Management
- Strategic Consulting Big Fish in a Small Pond - ScottMadden Management - Novantus, Inc.
- Business Development Consultants - Marakon
Specialist - Analysis Group, Inc. - Backspace Consulting
- Local Focus Niche Area, Less Scope - The Bridgespan Group LLP
Human Resource Consulting

•  Human Capital Development Analyst

Human Capital •  Human Capital Consulting Analyst
Management •  Senior Human Capital Consultant

•  Trainee Recruitment Consultant

Recruitment •  Senior Recruitment Consultant
•  Senior Corporate Recruiter

•  Compensation and Benefits Analyst

Benefits and •  Compensation and Benefits Manager
Compensation •  Employee Relations Director

Training and •  Training and Development Manager

•  Chief Human Resources Officer
Development
•  Human Resources Director

•  Corporate Safety Coordinator

Health and Safety •  Health and Safety Manager
•  Occupational Safety and Hazard Expert

Hay Group, Hewitt Associates, PricewaterhouseCoopers, Deloitte, KPMG

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