Frameworks

Question 1

Market sizing framework step 1

Answer 1

Ask Clarification questions

Question 2

Market sizing framework step 2

Answer 2

Map out your calculations (e.g. with an issue tree)

Question 3

Market sizing framework step 3

Answer 3

Round numbers and calculate (always pick simple numbers)

Question 4

Market sizing framework step 4

Answer 4

Sense-check your results

Question 5

Step 1 of the Replacement Concept

Answer 5

Calculate the quantity of the product REPLACED annually by using the lifetime of the product.

Question 6

Step 2 of the Replacement Concept

Answer 6

You also need to take into account the growth of the market

Question 7

Step 3 of the Replacement Concept

Answer 7

Combine both numbers for the total annual market size (replacement and growth numbers)

Question 8

Categories for ‘picking an easy segmentation’

Answer 8

1. Product/Service types (e.g. Uber vs Black Cab)
2. Different ways that product/service will be used (Airport journeys vs London Journeys vs inter-city journeys)
3. Customer types (segmented by age)

Question 9

Common lists to be MECE

Answer 9

• Products
• Countries
• Business entities (e.g. suppliers, clients, competitors, regulator, company itself)
• Distribution channels (retail stores, restauarants, wholesalers, etc)

Question 10

The 8 steps to break down a Case Interview

Answer 10

1. The Background
2. The Recap (back to them)
3. The case and objective clarification (clarifying Qs)
4. The grand pause (2 mins)
5. The Game Plan (explaining thought process)
6. Creative Questions
7. Quantitative questions
8. Case summary and next steps

Question 11

The two types of market sizing exercises

Answer 11

1. Top down (uses a population approach, then pares it down to a smaller issue)
2. Bottom up (a channel of distribution - how much of something is sold in a day. This is then rolled up to annual and county-wide numbers).

Question 12

Profitability Framework (the two elements of it)

Answer 12

1. Revenue side of equation (break down revenues into prices and volumes)
2. Cost side of equation: fixed costs and variable costs

Question 13

Difference between fixed and variable costs

Answer 13

• Variable costs vary based on the amount of output produced.
• Variable costs may include labor, commissions, and raw materials.
• Fixed costs remain the same regardless of production output. - Fixed costs may include lease and rental payments, insurance, and interest payments.

Question 14

Further things to consider for a profitability question (basically, think about all the elements of profitability)

Answer 14

i. What changes prices
ii. What changes volumes
iii. What affects fixed costs
iv. What drives variable costs in a business

Question 15

Market Study framework (flip of profitability framework) - the two sides of it

Answer 15

• External side*:
• Market, competitors and customers
• Internal side*
• Company + product/service (this addresses the fixed costs associated with the company

Question 16

The four-point framework for mergers and acquisitions

Answer 16

1. Market - is it attractive
2. Company - is our company picking the right company to merge with or acquire (look at operating revenues and profits)
3. Post-acquisition strategy (how are you going to make money than you purchased the original company for)
4. Risks and benefits (valuing intangible assets)

Question 17

Business Situation Framework (Four factors)

Answer 17

CCCP

1. Customer (identify segments, and their willingness to pay)
2. Product (complimentary goods, substitutes, product lifecycle, razer blade model)
3. Company (capabilites and expertise, distribution channels, intangibles like brand loyalty)
4. Competition (monopoly/oligopoly, barriers to entry, supplier concentration, industry regulatory environment)

Question 18

Trending topics to try and fit in

Answer 18

#Artificial Intelligence (human-machine collaboration)
#Digital (harnessing technology to drive value)
#Data Analytics (predictive)
#Design Thinking (learning from the creative)
#Sustainability (planet is in tears)