IIT Kharagpur Case Workshop

22nd October, 2011

 Agenda

 Key success factors in case solving

 Why do Frameworks exist?

 Basic Frameworks

 Mock Case Interview

 Case Discussion
 Case Solving: Key Success Factors
Write down Clear out any Take a minute
details
of problem Paraphrase
& verify
doubts in
statement
to
gather Start of
statement when given your thoughts
described
 Focus on segregating key issues
 Think of a framework to start
approaching

 Ask Questions!
 Think aloud
 Verify all assumptions you make
 Note down all responses for further reference
 Keep recording ideas & thought process. Maintain structure (tree / otherwise)
 Be prepared to revise your work if suggested (verbally or otherwise)
 If asked to summarise, state the broad structure followed and key inferences
 Frameworks

 Frameworks provide a ready-made

structure
 They act as guidelines at various points
during a case
 More than one framework may be
applicable
 Do not force a framework
 Mutually Exclusive and Collectively
 Guesstimates
Determine The Key Drivers
Bottom Up or Top Down?

Make Assumptions

Calculate
Use Round Numbers!
Common sense check!

Analyze Results
Implications?

Increasing Factors Decreasing Factors

Adjust Answer Adjust Answer

 4Ps & Porter’s Five Forces
4Ps:
 Product

 Price

 Place

 Promotion

Porter’s Five Forces: Competitors

and New
entrants

Suppliers and
Company Customers
Distributors

Substitutes Government
Regulations
Declining Profits

1. Internal or external?
2. In recent times?
 Increase Profits

Revenues COGS SG&A

Price Unit Volume Direct Material Direct Labor Variable O/H

Price Sensitivity Existing Market Scale Economies Replace w/machines Cost Acctg.
- Elasticity - Promotion /Diseconomies - Union? - Allocation Drivers
- Place - Supply Constraints - Does pricing
reflect Cost

Competitive Environ. New Markets Inventory Mgmt.

- Substitutes - Geographic - Carrying Costs
- Economies of Scope - Shrinkage
 Customer Turnover

What Has Changed in

the Following Environments?

Company Customer Competition Regulatory

Product Tastes changing? Are low cost competitors Do new tax

Is quality sagging? stealing from us? incentives exist?

Price Disposable income? Are diffentiated competitors Any new regulations

Have sensitivities changed? stealing from us? restricting the use of our
Overpriced versus our competition? product and favoring substitues?

Place Demographics of our target? Are competitors integrating

Is our distribution getting squeezed out? into distribution and
Are Customers Changing Channels? shutting us out?

Promotion Do new substitutes exist? Are they offering our customers

Are we spending? special incentives to switch?
Push vs. pull? (particularly with substitutes)

Has public image changed?

 Increase Capacity

Should We Increase Capacity?

Market Demand Investment vs. Improvement

Industry Capacity Market Trends Improve Productivity Add Capacity

Competitors Plans Threats Cyclical / Seasonal Bottlenecks Add shifts

Economy Design for manuf. Acquire

Global Competition
Consumer tastes Outsource
Substitutes
 Case Discussions

1. Calculate the number of

windows in India
 Case Discussions

2. A national petrochemical
company is looking to set up a
petrochemical park somewhere
in Mumbai. What are the factors
it should look into?
 Case Discussions

3. Our client, a juice

manufacturer, has recently seen
a drop in his profits. Help him
analyse why.
 Case Discussions

4. A generics pharmaceutical
company is looking to expand into
a new country because of the
following reasons:
The old market has become
saturated
The profits in the old market were
low