Demographics Same Market?
Supply Transport
Volume Inbound Logistics
Revenue Needs Market
size/Growth Supply Storage
Price/Unit Customers
Size/Growth
Market Profitability Product Mix
FC
Profits Cost Volume
WTP Competition
VC Process
Intensity
Cost/Unit
Economic Value/Brand
Outside Trends Regulation Stage 1,2, etc.
Factors Industry
Challenges Market Share Current/Future
Competition Financial Position Design
Strategies 3Cs Growth
Important assets
and capabilities Sequential
Financial Health Target
Customer Need Quality of target’s Manufacturing
management Parallel
Usage Process
(who/where/ho Product Offering
Culture us vs. Operations
w) target Maintenance
M&A
Good vs. Profitability
Product
Services Acquisition
Planned/Unplann
Rationale
Competencies ed
Product Lifecycle
Company Financing
Quality Checks
Substitutes Selling Points Buyer
Experience with
Financial acquisitions? Inspections
Perceived Value Performance
Right time?
Resources Where/When
Competitor Price
Price Value of each
Customer P entity Inventory Storage
Sensitivity Market Size
Cost of Synergies
Marketing 4Ps Production Cost Product Types Inventory Transfer
Synergies/Risks Outbound
Revenue of Syn Logistics
Messages Market Profitability Direct Sales
Biggest risks of
Media Platform Competition fail Logistics to Buyer
Promotion Consumer
When to Regulations Performances
Differences FC
Products
Compet Strats between current
and new market
VC
Physical/Web Client First new market Brand Loyalty
Capabilities entry? Market Cost-based
Characteristics # of Units sold
Place Customer Expect Have others Luxury or Value? Annually
entered already?
Profitability
Market Entry Financing Norms
Req. for Sales Current situation Targeted
or Laws
Price of next best
Customer Cost to enter Alternative
Economic Trends
Concentration
Financial
Customer Ongoing Costs Features that
Value-Based
Bargaining Price Sensitivity after entry Marketing Make ours better
Power
Information Expected Rev Value of these
Availability and ROI Brand Awareness Pricing features
Supplier Ideal Timing Available
Concentration Market Substitutes
Segmentation
Suppliers Test in region
Cost of Switching
Bargaining first? Competitor-Based Price of Subs
Suppliers Supply Chain
Power Entry Strategy Competitor
Supplier Solo or Joint Entering Market
Venture? Value of us vs.
Differentiation In Market them
Decentralized Production?
Potential New Competitive
Subs Control or no? Advantage Pricing Strat
Tariffs? Objective
Threat of Cross-sell/upsell
Ease of Sub
Porter’s 5 Forces Substitutes Overall Strategy to take into
for Industry Eval Finances account
Evolution of
Customer to Sub Possibility to sell
different versions
Regulation System Structure of same prod
Authorize Reqs
Org Design
Captial Reqs
Threat of new
Entrants Economies of Processes
Scale
Competitor Same as Above
Network Effects Advantage then compare
Number of
Competitors
Similarity
Existing Rivals between
products
Financial health
of compet
• Drivers for M&A
• Expansion into new market
• Access to new products/diversification of portfolio
• Rights to use different product or tech
• Industry disruption
• More control over product pricing/increase market share
• Lessen competition
• Risks Involved
• Regulatory issues with anti-trust laws
• Financial risks – consolidation to one set of books
• Country shifts – tariffs or international regulations
• Currency shifts
• Lacking experience in new markets
• Synergies
• Revenue
• Distribution Network – can sell more
• New Markets – access/customers
• Cross-Selling – selling to existing customers with more types of products
• Costs – FC/VC
• Marketing – and other SG&A expenses
• PPE – example could be new tech/process means less time or equipment + less
depreciation loss annually
• Salaries
• Buyer Power – Favorable contracts
• Transpo/Logistics – Supply chain streamline/consolidated.
• Economies of Scale – efficiency and lower costs because of FC drop
• Storage
• Overhead lessen due to footprint consolidation
• Energy/fuel
• People
• Consolidation of personnel and specializations
• Diversification of experience
• Tech
• Software
• Regulators and Solutions:
• Regulators block due to anti-trust laws/worry about monopoly
• Solutions:
• One of the companies can divest in a part of their portfolio
• Asset Buy – could only buy portions of a company to limit size
• Smaller purchase that meets our needs- like a new tech
• What would you divest from?
• Least profitable product
• Moving away from an outlier product
• Structuring a Transaction:
• (IMO) Project main office – set up a formal structure for tasks/work
• Work leads by function/workstream – manufacturing, R&D, finance, HR, product, IT, etc.
• Milestones – like timeframe and bottom-up fed info
• Oversee the feedback loop and keep stakeholders informed
About the company: • PROFITABILITY: (P * Q) – (Q * VC) – (FC)
• Profits and revenues for last few years (trends)
• Customer segmentations
• PROFIT MARGIN: Net income / revenue
• Characteristics • INVENTORY TURNOVER: Sales / Inventory
• Changing needs • GROSS MARGIN: (Revenues – COGS) / Revenues
• Profitability by segment • CONTRIBUTION MARGIN (CM): Sales – VCs
• Product mix
• Costs/margins • CONTRIBUTION MARGIN RATE: CM / Sales
• Product differentiation • RETURN ON INVESTMENT: P – Cost of investment / COI or Net Income/Costs of
• Market share • BREAKEVEN POINT: FCs / CM
• Production capabilities / capacity
• Brand
• BREAKEVEN POINT IN UNITS = FC / Price - VC
• Distribution channels • PRODUCTION COSTS: Labor + Materials
• What constitutes success • NPV: CF * (1 / (1 + i)^n)
• CUSTOMER ACQUISITION COSTS: Marketing Expenses / New Customers Annually
About the Market:
• Market size, growth rate, and trends • MARKET SIZING (Useful Data):
• Where is it in its life cycle (emerging, mature, decline) • US population = 300 mil
• Industry drivers • Chinese = 1 bil
• Customer segmentation
• Margins
• Indian = 1 bil
• Industry changes • Australian = 25 mil
• M&A? New Players? • UK = 60 mil
• Changes in technology • EU = 500 mil
• Regulations
• Distribution channels • Per Household developed countries = 3
• Major players and market share • Per Household developing countries = 4
• Product differentiation • Life Expectancy = 80 yrs
• Barrier to entry/exit
• Median HH Income = $45K
Recommendation • I am confident that we can press forward with….
Fixed Costs Variable Costs
• Potential Failures • Rent • Raw Materials Cost
Risks Associated
• Consumer Risks • Salaries • Wages
Next Steps • Where to take this
• Interest Paid • Sales Tax by Loc
• Insurance • Transpo/logistics
• Prop Taxes or Storage costs
• Depreciation • Energy/Fuel
• Maintenance
• PP&E
Behavioral Questions:
1. Walk me through your resume.
2. I've read your resume, but tell me a bit about yourself otherwise.
3. Why our firm?
4. Why Consulting?
5. What do you consider to be your greatest accomplishment so far and why?
6. Tell me about a time when you had to work with a difficult client or team
member. How did you handle the situation?
7. Talk to me about how you built creditability in your first job.
8. Tell me about a time you were part of a team and things did not go smoothly,
what did you do? Lessons learned?
9. Tell me about a time you had to deliver difficult news in a professional
environment.
10. What is or was your favorite class you've taken and why?
11. Tell me a time when you had to make a decision with limited information.
What was your approach?
12. Tell me about a time where you leveraged data to make a decision.
13. Tell me about a time where you had to convince others to see something your
way.
14. Tell me about a time when you were part of a high performing team. What
was your role in achieving success?
15. If I talked to your last boss, what is the one best thing he or she would tell me
about you?
16. Tell me about a time you had to motivate a teammate to do something he/she
didn’t want to do?
17. Tell me about a time when you went beyond your responsibilities to achieve a
goal.
18. Tell me about a time you've failed as a leader.
19. What would your learning team at school tell me about you?
20. Tell me about a challenge you set for yourself then accomplished.
21. What do you want to get out of a consulting experience?
22. Tell me about an ethical dilemma you have faced.
23. Did you like your previous job? Why or why not?
24. Tell me about a time where you made a mistake. What lessons did you learn?
25. What are three words that your learning team would use to describe you?
Why?
26. Why do you pursue a career in consulting?
