Case studies

Question 1

CIP

The first five steps

Answer 1

1. Summarise the question
2. Verify the objective(s). Ask if there are any other goals or objectives
3. Ask clarifying questions.
4. Label the case and lay out your structure
5. State your hypothesis

Question 2

1. Summarise the question

Answer 2

• Streamline the question

- Use percentages

Question 3

2. Verify the objectives

Answer 3

• State the assumed objective(s)

- Ask whether there are others

Question 4

3. Ask clarifying questions

Answer 4

• Ask if jargon or explanations are unclear

- Why does the company want to enter the market?

Question 5

4. Label the case and lay out your structure (3)

Answer 5

• 90 - 120 secs of silence allowed
• MECE
• Turn your notes to the interviewer

Question 6

5. State your hypothesis

Answer 6

• My hypothesis is that X has fallen because X has risen

Question 7

Core company questions (7)

Answer 7

1. Revenues and profits for the last three years
2. Customer segmentations
3. Product mix
4. Production capabilities/capacity
5. Brand? Market Leader?
6. Distribution channels?
7. WCS

Question 8

Revenues and profits for the last three years? (4)

Answer 8

a. What are the major revenue streams?
b. What percentage of total revenue does each stream represent?
c. What are the major costs?
d. Do any seem out of line?

Question 9

Customer segmentations (3)

Answer 9

a. Characteristics
b. Changing needs
c. Profitability by segment

Question 10

Product mix (4)

Answer 10

a. Cost/margins?
b. Product differentiations?
c. Market share?
d. Cannibalisation between products

Question 11

Production capabilities (3)

Answer 11

a. Does the company have the ability to expand?
b. Are they running at full capacity?
c. If not, why not?

Question 12

Brand (2)

Answer 12

a. How strong is the brand?

b. Is it a market leader or has the brand faded?

Question 13

Distribution channels (3)

Answer 13

a. How are the products and services currently distributed?
b. How can the company expand its channels?
c. How can it reach new markets?

Question 14

What constitutes success?

Answer 14

a. Which metric to use?

b. What is success through the eyes of the company?

Question 15

Core market questions (11)

Answer 15

1. Market size, growth rates, and trends?
2. Where is it in its lifecycle?
3. Industry drivers?
4. Customer segmentations?
5. Margins?
6. Industry changes?
7. Distribution channels?
8. Major players and market share?
9. Product differentiation?
10. Access to suppliers?
11. Barriers to entry/exit?

Question 16

Market size, growth rate and trends (2)

Answer 16

a. How is the industry doing overall?

b. How is the company growing compared with the industry?

Question 17

Industry drivers (14)

Answer 17

1. Brand
2. Street cred
3. Price
4. Marketing
5. Content
6. Size
7. Endorsements
8. Fads/Culture
9. Economics
10. Technology
11. Geopolitical events
12. Bargaining power of buyers
13. Bargaining power of suppliers
14. Distribution channels

Question 18

Customer segmentations (market, 5)

Answer 18

a. What segments are there?
b. How big are they?
c. Which is the company going after?
d. How profitable are they?
d. Which is the competition going after?

Question 19

Margins (Market, 1)

Answer 19

a. What are the typical margins within the industry?

Question 20

Distribution channels (Market, 1)

Answer 20

a. What are the major distribution channels within the industry?

Question 21

Major players and market share (3)

Answer 21

a. Who are the competitors?
b. How much market share do they have?
c. Is the market fragmented or dominated by major competitors?

Question 22

Product differentiation (Market, 1)

Answer 22

a. How do the competitors differentiate their products or services?

Question 23

Access to suppliers (Market, 2)

Answer 23

a. How difficult will it be to gain access?

b. How many suppliers are there and who supplies them?

Question 24

Barriers (market, 2)

Answer 24

1. Barriers to entry

2. Barriers to exit

Question 25

Barriers to entry (4)

Answer 25

a. Access to capital, distribution channels, raw materials, technical knowledge, or human talent b. Government regulations c. Sticky features d. Market domination by one or two players

Question 26

Barriers to exit (6)

Answer 26

a. Massive investments b. Nontransferable fixed assets c. contract requirements with suppliers d. government requirements e. costs of leaving is higher than incurred in the market f. barriers of emotion

Question 27

Review external factors (Retailer, 5)

Answer 27

a. Consumer confidence b. Disposable income c. Unemployment rates d. Petrol prices e. Environmental effects

Question 28

Review external factors (manufacturer, 6)

Answer 28

a. How is the kroner doing against other currencies b. interest rates c. tariffs d. petrol prices e. commodities f. environmental effects