)

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Case Frameworks
Session 2&3

Introduction to Consulting
- Consulting Club, FMS Delhi

Contents
Porters 5 Forces

SWOT Analysis

Value Chain Analysis

4P Analysis

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Porters Five Forces

Used to assess the attractiveness of an industry; can be used to evaluate market entry and M&A opportunities.

Profit

New
Entrant
Revenue

Quantity

Suppliers

Competition

Cost

FC

Price

VC

Customers
Company

C
rs
Collaborators

Substitute

Competitors

Customers

Porters is an extremely powerful framework that can be used in profitability as well as in cases where market evaluation or
industry evaluation is required.
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Porters Five Forces (Example)

CASE: STEEL MAJOR DECLINING PROFITS (ACE THE CASE)

Your client is Tata Steel, a global major. Since the past one year,
they have been facing a heavy decline in gains. Analyze the
various factors and suggest recommendations.
http://forbesindia.com/article/special/ten-reasons-why-steelstocks-remain-out-of-favour/40381/1

SWOT Analysis
Useful in assessing a business environment for a market entry (geography, new product lines, etc.) or business opportunity

Profit

Revenue

Strength

Weakness

Internal Factors
Quantity

Opportunities

Threats

Cost

FC

Price

VC

External Factors
Company

C
Collaboratorrs

SWOT helps in cases where one needs to evaluate a company either as an M&A
target or in cases you are to propose a entry strategy in a new market

Competitors

SWOT Analysis is a powerful company analysis tool but needs lot of detailing to arrive at acceptable solutions
4

Customers

SWOT Analysis (Example)

Flipkart - Myntra Merger

The Value Chain

Used to look at activities throughout organizations, supply chains and distribution networks; to understand the workings of a n
organization; to determine where value is added and to identify weaknesses or bottlenecks within an organization.
Example from a typical manufacturing set-up

Research
work and
approval

Sourcing the
required
materials and
services
required for
production

R&D

Inputs

Production
process to
packaging
ready to be
sold

Profit

Logistics
planning and
product
distribution
strategies

Marketing
strategy,
sales force
training,
push vs. pull
strategy

Revenue

Post sales
support,
repairing,
sales return

Quantity

Cost

FC

Price

VC

Company

Production

Distribution

Marketing &
Sales

Service

C
Collaboratorrs

The framework is useful to solve cost

problems. Say you have understood that
it is the variable costs that are going up.

it is a good practice to break down the

entire manufacturing process and find
out the component that is the cause

Competitors

A very simple yet powerful framework and is almost always helpful cracking cost cases
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Customers

The Value Chain (Example)

CASE: CEMENT PRODUCER (BCG)

There is a major cement manufacturing company which recently
has started experiencing a decline in profitability. They have
hired you to determine the cause of the same and suggest
remedial measures.

Four Ps
Useful when evaluating a product or marketing strategy ; Can be used to determine the cause of an increase or decrease in
sales ; It can also help in identifying new opportunities to market new or existing products.

Product

Does the product satisfy customer needs?

Is the product differentiated?

Profit

Revenue

Price

Quantity

Place

Cost

At what price are the customers selling the their products?

Has their been any recent changes in the price of your products?
FC

Price

VC

Where have you traditionally sold your products?

What markets do you think ideal to launch new products?
Company

Promotion

What are different promotion strategies followed by the client?

Based on your segmentation what should be the ideal positioning
of the product/brand?
C
Collaboratorrs

The frame work is helpful in revenue problems. In cases where the company is losing
market share it is usually one or more of the Four Ps that is the reason.
Competitors

This is usually a theory heavy framework and would require a bit of reading on 4Ps of major
brands to use this effectively.
An effective tool but requires a bit of theoretical pre-reading
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Customers

4 P Analysis (Example)

A major chemical manufacturer produces a chemical product

used to preserve foods in containers. Despite an increase in
market share, the manufacturer has experienced a decline in
profits. The CEO of the company is worried about this trend and
hires you to investigate.

Consulting Club Contacts

Team Conclub Members

Arush Singhal
Avneesh Bansal
Bodhisatva Gautam
Jayant Dalmia
Kanav Mayar
Siddharth Shandilya

arush.s16@fms.edu
avneesh.b16@fms.edu
bodhisatva.g16@fms.edu
jayant.d16@fms.edu
kanav.m16@fms.edu
siddharth.s16@fms.edu
Others

conclub@fms.edu
https://www.facebook.com/TheConsultingClubFMSDelhi

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