小灶是一個面向小灶是一個面向大學生的一站式職業(yè)發(fā)展教育平臺。小灶品牌旗下包括以［小灶計劃］、［上海名企實習］為代表的四個微信公眾號，以小灶學徒項目為代表的線下訓練營系列，以及即將于2016年8月正式上線的職業(yè)發(fā)展課程網(wǎng)站(wwwxiaozaoorg-小灶由杜克大學創(chuàng)業(yè)團隊創(chuàng)建，以杜克大學－新加坡國立大學專利腦科學技術(shù)為教育體系建設(shè)核心，以北美頂尖MBA業(yè)教育理念為基礎(chǔ)，結(jié)合創(chuàng)始團隊超過40年的職場經(jīng)驗，打造國內(nèi)最高質(zhì)量的大學生職業(yè)發(fā)展教育平 小灶計劃（訂閱號快速獲取求職干貨小灶學徒顧問（服務(wù)號求職問題有問必答ROSSCASEBOOKROSSCASEBOOKRossConsultingDecember, Tableof Tableof Introduction&FirmIndustryCaseInterview24-1WeareproudpresenttheRCC2012casebook.Thisdocumentismeanttoprovideabriefoverviewofcaseinterviewsandaseriesofpracticecases.Foreachcase,wehavespecifiedthesource,difficultylevel,andindustry.Inthiscasebook,thedifficultylevelWeareproudpresenttheRCC2012casebook.Thisdocumentismeanttoprovideabriefoverviewofcaseinterviewsandaseriesofpracticecases.Foreachcase,wehavespecifiedthesource,difficultylevel,andindustry.Inthiscasebook,thedifficultylevelforallcasesaremediumorhard.Therefore,werecommendthatyourefertopreviousRosscasebooksforeasiercasesifyoujuststartedpreparingforcaseForthefirsttime,wehaveaddedfirmandindustryoverviewsectionstotheRCCcasebook.Thematerialastartingpointinyourefforttolearnmoreaboutfirmsanddifferentindustriesthatcouldgiveyousomeinsightswhilesavingyoualotoftime.However,itisonlyafirststepandweencourageyoutobuildtheinformationbydoingyourownresearchonindustriesengagingwithfirmstogainaBestofluckintheupcomingrecruitingRCC2012CasebookPouyaZangeneh(MBA2013)PhilipAnselmino(MBA2014)AdityaKapoor(MBA2014)JoydeepMukherjee(MBADeovratKajwadkar(MBA-2NotetotheManypeoplecontributedtothisyear’sManypeoplecontributedtothisyear’scasebook.Wearereallygratefulforyourhelpand????????AlexisJayBryantTangJohnRanzKimMichael??????PuneetDixitRajSharanSpecialthankstoBain&CoandBooz&CoforprovidingfullcaseswhichwillhelpRosscandidatesgainabetterunderstandingofthefirm’sexpectationinacaseinterview.-3FIRMSFIRMSAccentureisalargeglobalmanagementconsultingfirmspecializinginexecutablesolutionsandorganizationalAccentureisalargeglobalmanagementconsultingfirmspecializinginexecutablesolutionsandorganizationalQuickNumberofconsultants:Numberofoffices:200Services:18FocusedonpracticalsolutionsthatclientscanimplementBalanceofstrategyandimplementationRapidlygrowingmanagementconsultingInternalStrategyCollegeoffersconsultantstheopportunityforprofessionalgrowthNewconsultantshireintotheglobaloperatingmodeloraspecificSeniorSource:-5InterviewprocessFirstTwo45-minuteinterviewsconsistingofafitportionanda30minuteSecondThree45-minuteinterviewsconsistingofafitportionanda30minuteA.T.Source:-6A.T.KearneyA.T.Source:-6A.T.Kearneyisaglobalteamofforward-thinking,collaborativepartnersthatdeliversimmediate,meaningfulresultsandalong-termtransformationaladvantagetoclientsandcolleagues.QuickNumberofconsultants:57officesin3913Industry10practiceTraditionalstrengthsarestrategyandoperationalIncreasedpresenceinprivateequityDiverseworkenvironmentandfriendlyStrongestindustryverticals:IndustrialandConsumerRetail,Energy,andPublicSectorRecentManagingDirectorchangeandaggressivegrowthstrategyhasbeenannouncedforthefirmInterviewprocessFirstTwoback-to-back45mininterviews,eachincludesfitandConductedbyaSecond15minemailwritingWrittencase(60minprep,30min45minutefit45minutefullBain&Bain&CompanyisaglobalmanagementconsultingfirmdifferentiatingitselfinsolvingBain&Bain&Companyisaglobalmanagementconsultingfirmdifferentiatingitselfinsolvingbusinessproblemsforclientsbyworkingwiththeclients’teamasbusinesspartnersandfocusingonresults.QuickNumberofconsultants:Numberofoffices:ExpertiseacrossallmajorindustriesandacrossBainredefinedtheboundariesoftraditionalstrategyconsultinginworkingwithcompaniessuchas:TiedEconomics,BridgeSpanGroup,PEconsulting,BainCapitalEmphasisonpeople–opportunitiestobalancework–life,internationaltransfers,externships,privateequityrotationsLeadingconsultingfirmusedbymajorprivateequitySource:-7InterviewprocessFirstTwo-45minuteinterviewsincludingabrieffitinterview(5-10min)andacaseinterviewSecond45minbehavioral45minuteinterviewscaseWrittencase:Intervieweehas60mintoreviewawrittencasefollowing30minpresentation/Q&AbyinterviewerBooz&Source:-8Booz&Booz&Source:-8Booz&Companyisaglobalmanagementconsultingfirmknownforitsfunctionalexpertise,industryforesight,and“sleevesrolledup”approachtoworkingwithclients.QuickNumberofconsultants:Numberofoffices:Booz&Companyhasalwaysbeenknownfordeepindustryandfunctionalexpertiseacrosspublicandprivatesectors,influentialglobalstudiesandbooks,andmanagementmagazine“strategy+business”Emphasisonmentoringandassessment–seniormentor,juniormentor,360degreeperformanceassessmentExpertiseacrossdiverseindustriesandfunctionalSeniorVicePresident,InterviewprocessFirstTwo45-minuteinterviewsconsistingofafitportionanda30minuteSecondTwo45minuteinterviewswithpartnersfollowingthesameformatasthefirstround.BostonConsultingBCGisaglobalmanagementconsultingfirmandoneoftheBostonConsultingBCGisaglobalmanagementconsultingfirmandoneoftheworld'sleadingadvisoronbusinessCommitmenttobothclients'successanditsownstandardsiswhatsetsBCGapart.QuickNumberofconsultants:560077officesin42countries19Industry18practiceRegionalStaffingCreativeandsupportiveBCGprovidesoneofthelowestleverageratiosintheconsultingindustry;seniormanagementworkscloselywithjuniorconsultantsEmphasisonageneralistapproach.ConsultantsarenotrequiredtospecializeinanindustryorservicelineuntilreachingthePrincipallevelSource:-9InterviewprocessFirstTwoCaseInterviews(IncludesasectionforConductedtypicallyby2ndyearConsultantstoSecond AllInterviewsare45minwithatleast25mindedicatedtotheSomeoffices(suchasChicago)pilotingawritten-10SeniorSeniorPartner-10SeniorSeniorPartnerorInterviewprocessFirst30minbehavioral30mincaseinterviewSecondRound:30minbehavioral60minindividualcase90mingroupcaseDeloitteisaglobalmanagementconsultingfirmspecializinginstrategyandimplementationacrossabroadrangeofindustriesandfunctions.QuickNationalstaffingmodelprovidesflexibilitytoworkinavarietyofindustriesregardlessofofficelocationFocusedonexecutablestrategythatoffersopportunitiesinbothstrategyandimplementationJobflexibilityandcultureencouragework-lifeRecentlyinvested$300MinDeloitteUniversity,aleadershipcenternearPendingacquisitionofMonitorGroupwillexpandstrategypracticeandNumberofconsultants:Numberofoffices:89USStrategy&HumanErnst&Ernst&Young(EY)isoneofthelargestprofessionalservicefirmsinErnst&Ernst&Young(EY)isoneofthelargestprofessionalservicefirmsintheworldservicedeliveringcapabilitiestohelpcompaniesturninnovationintoaction,informationintoinsightandriskintoresults.QuickNumberofconsultants:167,000OneoftheBigFourAccounting+consultingProminentAdvisorypracticesPI(PerformanceImprovements,includesalloperationsrelatedworkandastrategyfunctionknownas“strategicdirectionTAS(TransactionAdvisoryServices)–includesCommercialAdvisory(valuation,duediligence)andOperationalTransformationServices(PostMergerIntegration)Senior-11InterviewprocessFirstOncampus,consistingoftwosessions,abehavioralinterviewandacaseSecondBehavioralCaseMcKinsey&McKinsey&CoisalargeglobalmanagementconsultingfirmfocusingMcKinsey&McKinsey&Coisalargeglobalmanagementconsultingfirmfocusingonhighprofilestudiesforbusinesses,governments,andinstitutions.QuickNumberofconsultants:17,500Numberofglobaloffices:99IndustryPractices:22FunctionalPractices:StrongresearchdepartmentsupportingconsultantsNationalstaffingmodelHighprofileclientsandTeamswithdiversebackgrounds(MBAs,PhDs,JDs)Aculturethatpromoteswork-lifebalanceEncouragesactivediscussion;individualshave“obligationtoAssociatePrincipal-12InterviewprocessSelectedcandidateshavetotakeProblem-Solvingtest:26questions,60minFirstRound:Two45-60minuteinterviewsconsistingofacaseandfitquestionsSecondRound:Three45-60minuteinterviewsconsistingofacaseandfitNote:Fitquestionsaddressthreemainpoints:personalimpact,leadership,andproblemsolvingskillsOliverOliverWymanisoneoftheworld'sfastest-growingstrategyconsultingfirmswithspecializedexpertiseOliverOliverWymanisoneoftheworld'sfastest-growingstrategyconsultingfirmswithspecializedexpertiseinstrategy,operations,riskmanagement,organizationaltransformation,andleadershipdevelopment.QuickNumberofconsultants:Numberofoffices:20CareerTracks?????SpecializedindustryandfunctionalRigorous,provenstrategyandoperationalimprovementmethodologiesCollaborativeworkingstyleAgenda-settingWork-lifeFinancialServicesGeneralManagementconsultingOrganizationtransformationconuterJobManagerSeniorJobSource:-13InterviewprocessFirstOnebehavioralinterview–45Onecaseinterview–45minSecondRound:Behavioralinterview-1Caseinterview–1PwCPwCAdvisoryisarapidlygrowingconsultingorganizationbackedbythestabilityandstrengthPwCPwCAdvisoryisarapidlygrowingconsultingorganizationbackedbythestabilityandstrengthofthePwCbrand.Theysupportclientsindesigning,managingandexecutinglastingbeneficialchange.QuickPracticeNationalStaffingFocusonfourindustryverticals:FinancialServices,HealthCare,ProductandServices,PublicSectorConsultingpracticeprojectedtodoubleinthenexttwoHighinvestmentbythefirmoninternalnetworkingeventstodevelopstrongintra-companybondsNewemployeesrecruitforaspecificindustryfocusratherthanageneralistrolePeople&-14InterviewprocessoverFirstRound(On-campus,2sections,45minMini-CaseandSecondRound(3sections,45minContentinterview:IndustryFocusCaseinterview:apresentationbasedonacaseemailed48hoursinadvanceRolandRolandBergerisoneofthetopinternationalconsultancies.ItpridesitselfonRolandRolandBergerisoneofthetopinternationalconsultancies.Itpridesitselfondevelopingcreativestrategiesandimplementingpracticalsolutions.QuickNumberofconsultants:270049officesin35countries25Industrygroupsand26functionalareasworldwide3industrygroupsand4functionalareasinNorthAmericaValuesentrepreneurialspiritandindividualityofconsultantsThreecorevalues:entrepreneurship,partnershipandexcellenceDeepUnderstandingofdiverseculturesandmarketsInternaltransferpolicythatallowsconsultantstopermanentlychangeofficesiftheyhavesuitablelanguageskillsEverynewhireisassignedaseniormentortohelpwiththetransitionandpersonaldevelopmentProjectManager-15InterviewprocessFirst45mininterviewwhichincludesfitandshortConductedby1-2SecondPersonalfitBusinessknowledgeCaseinterviewthatincludesaConductedbyconsultantsandmembersofmanagementTheCambridgeTheCambridgeGroupisamanagementconsultingfirmspecializingmarketdemand.helpingclientsidentifyandQuickNumberTheCambridgeTheCambridgeGroupisamanagementconsultingfirmspecializingmarketdemand.helpingclientsidentifyandQuickNumberofconsultants:Numberofoffices:1AcquiredbyTheNielsenCompanyin2009enablesaccesstokeycustomerinsightsEmphasisonhelpingGrowthstrategy–toplinegrowthMajorindustriesincluderetail,CPG,andfinancialservicesOffice-basedconsultingmodellimitsfrequencyoftravelProjectProjectProjectSource:-16InterviewprocessSingle3consecutiveinterviewstotaling2hoursconsistingofacaseandfitZSZSAssociatesisaglobalmanagementconsultingfirmspecializinginusingdatadrivenstrategiesZSZSAssociatesisaglobalmanagementconsultingfirmspecializinginusingdatadrivenstrategiestoprovidesalesandmarketingsolutions.QuickNumberofconsultants:Numberofoffices:20ExpertiseinmarketingandsaleswithafocusinhealthcarePartnershipwithclientstodesignandimplementZSservicesincludeconsulting,outsourcing,technology,andProject-specificandformaltrainingprovideopportunitiesforcontinuedprofessionaldevelopmentBusinessBusinessoperationsBusinessAssociateSource:-17InterviewprocessFirstOncampusconsistingoftwosessions,abehavioralinterviewandacaseSecondBehavioralCaseBusinesspresentationinterview–evaluationofcommunicationINDUSTRYINDUSTRYAirline-19HighlysusceptibletothreatsofterroristDiseaseAirline-19HighlysusceptibletothreatsofterroristDiseaseoutbreaksalsolimitairlineChangesinfuelpriceshaveamajorimpactonEconomicconditionsgreatlyimpactamountofleisureOnlinetravelagencies(Orbitz,Expedia,Kayak,Airlines’salesteam:callcenters,online,orTravelmanagementcompanies(TMCs)servingcorporateLeisuretravelers–71%,generallypriceBusinesstravelers–FreightTransportation–MarketAirlinesareProliferationoflowcostcarriersofferingpayperserviceoptionsFlexiblecapacityisanimportantfactorinairlineprofitabilityAverageannualgrowth:OnlinebookingandcheckingtoreduceadministrativeexpensesProfitmarginsaround1.6-CostLabor–Fuel–Aircraftdepreciation/rentals-Airportgates/facilityrentals–Maintenance–WeatherresultedincancelledflightscanbeasignificantexpenseRevenueTicketChargesforbagsandon-boardFuelCapacityoptimizationiskeyforAuto-20PurchasedecisionsinfluencedbycurrentfuelPlantAuto-20PurchasedecisionsinfluencedbycurrentfuelPlantcapacityutilizationisveryimportant,over80%utilizationrequiredforRelationshipwithUnitedAutoWorkers(UAW)unionamajorfactorinindustryDealershipnetworks–largestdomesticWholesalers–purchasefleetsofvehiclesforbusinessesandresaletoRentalLargeandSmallandSUVsandlightMarketFocusonfuelimprovingIncreasedpopularityofhybridandelectricvehiclesTop8firmscontrol80%oftheAverageannualgrowth:ProfitmarginaroundSignificantmodelredesignsoccurapproximatelyevery5yearsCostMaterials–78%,LongtermcontractswithkeysuppliersareLabor–5%,RelationshipwiththeUAWiscriticalMarketing–Depreciation–RevenueVehicleVehicleExtendedBrandingiskeyforsellingsimilarproductatdifferingpricepointsCommercialBanking-21NewlegislationlimitsbankingfeesandCommercialBanking-21Newlegislationlimitsbankingfeesandrequiresbankstomaintainhighercapitalreserves,bothhavedecreasedindustryprofitabilityNontraditionalcompetitorsarebeginningtoofferbankingservices-RetailBranchStandaloneMobileRetailcustomers–Corporateclients–MarketIndustryconsolidation,especiallyinthewakeofsubprimemortgageIncreasedgovernmentMobilebankingisincreasingmoreimportanttolongtermsuccessAverageannualgrowth:CostWages–Baddebtexpense–21%,recentlevelsaresignificantlyhigherthanhistoricalaverage(5%)Interestexpense–Facilities–RevenueLoanFeebasedCreditRevenueisdependentonprimerateandaggregatehouseholddebt-22Keysuccessfactor:BlockbusterDrug(>$1Bin-22Keysuccessfactor:BlockbusterDrug(>$1BinannualFDAapprovalrequiredbeforeanysalescanbePricecompetitionfromgenericdrugChangeindrugutilizationandmixGovernmenthealthcarepolicesthatarenotOver-the-counter(canbesoldwithoutprescription):Retailoutlets–CVS,Walgreens;MailPrescriptiondrugs:Hospitals,Mailorderpharmacy:ExpressScripts,Patients/consumerswhoneedtheseThetargetingstrategyhastoconsidertwootherstakeholders:1.Doctorswhoprescribethesemedicines2.InsurancecompaniesthatpayforthemMarket Healthcarereformisexpectedtoboostsalesasmoreindividualsgainprescriptiondrugcoveragein TariffbarriersarenolongerarelevantformofprotectionDemographicshiftswillincreasesalesovernextfiveyearsto2017 Lossofpatentonkeydrugsformanylargepharmacompanies.around2010-11Cost Themanufacturingcostofpharmaceuticalsisthelargestshareoftheindustry’scost-Research&Development-Marketingcosts– Wagesaccountfor11%inthecost TheindustryalsofaceshighliabilityinsurancecostsandhighlegalfeesandsettlementsRevenue Pharmaceuticalmanufacturingindustryishighlycapitalintensivewithhighrevenuevolatility Theeffectofseasonalityishighoncertainproducts(vaccinesandcoldmedicine)andlowonotherproducts(painmedicines) Federalgovernmentgrantsfor-23MajorplayersareRetailCo.,Sears,Macy’s,-23MajorplayersareRetailCo.,Sears,Macy’s,TargetandJCPenny.Togetherthesecompaniesaccountfor81%ofmarketshareChangesinconsumerdisposableincomecancauseconsumerstodeferpurchasingproductsfromretailersasindustryissensitivetochangesineconomicactivityBig-BoxSpecialtyRetailDiscountDepartmentTheindustryisconsumer-orientedand,duetothespectrumofproducts,itsmarketsaregenerallysegmentedintodifferentagegroupsSegmentsharesoftherevenuehaveremainedrelativelyunchangedoverthepastfiveMarketOverthefiveyearsto2017,retailsectorrevenueisforecasttogrowatanaveragerateof4.5%peryearEmploymentintheindustryisprojectedtogrowslowlyConsolidationisexpectedtocontinuewithinthisindustryTheindustry'scontributiontotheGDPisexpectedtounderperformcomparedtotheUSeconomyCostIndustrycostsaresimilarformostoperators,butvarybetweenfirmsofdifferentoperatingsizesandLargestexpensefortheindustryisCostofGoodsSoldwhichhasincreasedduetoweaksalesEmployeewagesaccountforRentalcostsareMarketingcostsareclosetoRevenueWomen’sApparelsaleaccountsforthemajorshareofrevenuesat21%Drugs&CosmeticsandFurniture&Householdappliancescontribute16%eachtototalrevenueChildrenandMen'swearareeach10%ofretailrevenueToys-8%,Footwear–5%andmisc.items-13%areothersourcesof-24AverageRevenuePerUser(ARPU):Measureofgrowth-24AverageRevenuePerUser(ARPU):MeasureofgrowthCapital-intensivetelecomindustrythebiggestbarriertoentryisaccesstoNewtechnologyispromptingaraftofsubstituteservices,withlowerpricesandmoreexcitingservicesdrivingdownindustryprofitabilityi:ts://w.investpedia.co/features/industrhandbok/teleco.asp#ixzz2BnRRtxjTDirectResidentialandsmallbusinessThecorporatemarket-lessprice-sensitivethanresidentialcustomers.Largemultinationals,premiumservicebuyersincludethoseoptingforhigh-securityprivatenetworksandvideoconferencing.MarketExpectationsofalways-onserviceeverywhereforcingoperatorstoboostnetworkcapacityandconnectivityIncreaseddemandofavarietyofnewserviceslikemobilepaymentplatformsandcloudcomputingRevenueincreaseforecastforInternetservicesis7.9%perannumtill2017andforwirelesstelecomtoincreaseby4.8%till2017CostInvestmentandinvestment-relatedcostsare65-70percentofthecostsofWagesharesareataboutAnotablepartoftheinvestmentsarewhateconomistsrefertoas“sunkcosts”.Thesearelongterminvestmentswhichcanbeusedonlyforspecificeconomicactivities.RevenuePlainoldtelephonecalls,andincreasingtextandimages.High-speedinternetaccess,broadbandinformationservicesandinteractiveThefastestgrowthcomesfromservicesdeliveredovermobileAdvertisingincomeaccountsforabout5%oftotalindustryrevenue.-25Advancedmeteringtechnologywillbecomeaconsistentfeature-25AdvancedmeteringtechnologywillbecomeaconsistentfeatureofthisindustryoverthenextfiveTheUtilitiesindustryisinthematurestageofitslifecycleandisassociatedwithlowriskSeasonalityofelectricityconsumption(duetoweathershifts)cansqueezerevenuesintheshortTransmissionIndustrialandMarketOverallgrowthoverthenextfiveyearsisanticipatedtobepositiveIntheshortterm,therecession'slingeringnegativeeffectsareanticipatedtoconstraingrowthRenewablepower,suchassolarandwind,areprojectedtogrowstronglyoverthenextfiveyearsPublicutilitycommissions(PUC)areexpectedtograntrateincreases,fuelingrevenueandprofitgrowth.CostPurchasedpoweraccountsforthelargestcomponentofthisindustry'scoststructure–44%Wages-9%,wagegrowthhasfallenduetoslowerrateincreasesandindustryconsolidationHighdepreciationcostsbecauseinfrastructurerequiressignificantcapitalinvestmentsMarketing,maintenancecontractsandothercosts–15%RevenueTransmittedelectricityisseparatedintotwocategories,baseloadandintermittentelectricityBaseloadelectricityisexpectedtoaccountforthebulkofindustryrevenue[95%](Coal–36%,Naturalgas–25%,Nuclear–17%,Others–Intermittentelectricityisgeneratedfromrenewableenergysources[5%revenueshare]CaseInterviewCaseInterviewCaseTheoverallCaseTheoverallstructureofthecaseinterviewtakesthefollowingUnderstandthe (~1-2 (~1-2 (~20 (~1-2 ?Askforamoment ?Referbackto ?StateSummarizetheproblemplanyourstructure frameworkasyoumove recommendationasastatementtomakesure?Develop3-4areasto througheachofthemain directresponsetotheyouunderstandthe analyzealongwithafewareas problem/objective–itsituationandobjectivestailoredsub-topics ?Useonesheetofpaper shouldnotcomeasaAsk1-2 ?Structuretheframeworkpertopic–thinkof surprisetoquestionsaroundthe inalogicalfashion–it caseasaPowerPoint topicand/ormetricsto shouldopenwiththe ?Incorporatekeybeusedforthe mostimportant ?Tiebackeachpiece metrics/findingsasThequestionsposed andprovidethe analysistothemain partofyourshouldnecessitatea interviewerwitha shortresponse– roadmapofwhere ?Includerisksand plantotakethe ?Walkthrough Engagetheinterviewer calculations/analysisbyturningthe ?Driveinsightswheneverframeworktowards Porter’sFivePorter’sPorter’sFivePorter’sFiveForcesBargainingPowerof ThreatofPorter’sFiveKeyInternalIndustrygrowthExitbarriersThreatofNewPorter’sFiveKeyInternalIndustrygrowthExitbarriersThreatofNewEntry(BarrierstoEntry)EconomiesofscaleAccesstodistributionchannelsCompetitorresponseBrandProprietaryproductThreatofSwitchingcostsRelativeAvailabilityofandconsumerpropensitytosubstituteBargainingPowerofSwitchingcostsThreatofforwardintegrationProductdifferentiationBargainingPowerofBuyervolumeBuyerswitchingcostsAbilitytobackwardintegrateSubstituteproductsKeyMarketing KeyMarketing QualityandreputationServiceandwarrantiesPackagingandsizePositioningandmarketsegmentationDifferentiatedversuscommodity“Pull”versus“push”ConsumerawarenessPublicrelationsBuyingprocessPerceivedvalueWillingnesstopayStrategy→relationtomarketsize,productlifecycle,andPlaceTransportation→alternatives,efficiencies,KeyMarketingTomakethisaKeyMarketingTomakethisa5Csanalysis,onewouldalsoevaluatecostsandchannels.Dataforthesetwodimensionsiscoveredelsewhereinthecasebook. StrategyandvisionAvailableresources/CapacityExperience/LearningCurveEconomiesofScale/ScopeResources→financial,SwitchingcostsMarketGeneral KeyInternalGeneral KeyInternal→Price,CustomerService,External→Competition,Substitutes/Complements,MarketForces/DemandPrice→Competition,Elasticity,Differentiation,SegmentsProductMix→Attributes(e.g.niche,patent),Quality,%ofRevenue,VarietyAlternativeRevenueStreamsNumberofFixedCosts→Manufacturing,Labor,Marketing,Overhead,IT,SG&A,PP&EVariableCosts→Inputs,Distribution,Marketing,Maintenance,Packaging,InventoryBenchmarkOpportunityCost/CostAccounting/CapacityUtilizationExternal→Unionstrikes,Technology,CurrencyFluctuations,Tariffs,NewEntrantsGeneral KeyPurchaseDriversPriceElasticityGeneral KeyPurchaseDriversPriceElasticityCostofCapitalFinancialCapabilityGeneral KeyEconomyGeneral KeyEconomy→Oil,InterestRates,UnemploymentInternationalIssues→Politics,Regulations,Taxes,TariffsSupplyGovernmentPolicyCapitalCostsAccesstoTechnology,Distribution,KeyFormula TimeValueofRuleofLittle’sKeyFormula TimeValueofRuleofLittle’sKeyFormula ReturnonAssetsKeyFormula ReturnonAssetsReturnonEquityDuPontWorkingIncome?=Gross?=?=Operating?Interest=?Tax=NetEconomics AdverseSituationinwhichanindividual’sdemandforEconomics AdverseSituationinwhichanindividual’sdemandforinsuranceisalignedtotheirriskofloss(i.e.peoplewiththehighestexpectedvaluewillbuyinsurance)andtheinsurercannotaccountforthiscorrelationintheprice.RestrictEqualizeConsumerEconomicgainachievedwhenconsumerspurchaseaproductforapricelessthantheirwillingnesstopay.ConsumerSurplus=WillingnesstoPay-EconomiesofTheaveragecostperunitforabusinessentityisreducedbyincreasingthescaleofEconomiesofTheaveragecostforabusinessentityisreducedbyproducingtwoormoreIfE>1,decreasepricetoincreaseIfE<1,decreasedpriceleadstolowerFormofriskmanagementusedtohedgeagainsttheriskofalossinwhichthecostisequaltoexpectedloss.LawofDiminishingAtsomepointintheproductionprocess,theadditionofonemoreunitofoutput,whileholdingeverythingelseconstant,willeventuallyleadtoadecreaseinperunitMarginalCostofonemoreunitofEconomics EntityistheonlysupplierofaEconomics EntityistheonlysupplierofaparticularLackofcompetition→producelessandchargeBarriersmayincludegovernmentregulation,networks,patents,RevenueisthemidpointofthedemandMoralTheunobservableactionsandrisksthathumansmaytakeonceacontractissignedsincetheydon’tbearconsequences.Itisaspecialcaseofinformationasymmetrythataffectsthecostoftransaction.MarketisdominatedbyasmallnumberofDominantstrategyisalwaysSequentialgames–commitmentsPerfectFirmstakeprice→MR=Maximumprofit=MR=PriceSituationinwhichidenticalgoodsaresoldatdifferentpricesfromthesame1srdegree→Differentpricefordifferentwillingnessto2nddegree→Differentpricefordifferent3rddegree→DifferentpricefordifferentsegmentsRiskIndividualswhoprefercertaintyovertheuncertainforthesameexpectedvalueRiskIndividualswhoareindifferentonrisktakingiftheEVistheRiskIndividualswhopreferriskeveniftheEVforacertaineventandtheriskisthe Thepurchaseofsecuritiesononemarketforimmediate Thepurchaseofsecuritiesononemarketforimmediateresaleonanothermarketinordertoprofitfromapricediscrepancy.Break-Totalamountofrevenueneededtooffsetthesumofafirm'scosts.Impliesthatthefirm'sprofitwillbe$0.CompoundAnnualGrowthRate:(Endingvalue/beginningvalue)^(1/#ofyears)-1.Mostlikelytoshowupinacasewithgraphsandexhibits.Themaximumlevelofoutputofgoodsand/orservicesthatagivensystemcanpotentiallyproduceoverasetperiodoftime.WhenafirmisabletodeliverbenefitsequaltocompetitorsbutatalowercostORabletodelivergreaterbenefitsthancompetitors.C=P-V,wherePisunitprice,andVisvariablecostperCoreTheactivitiesthatafirmdoeswelltocreatecompetitiveSubdivisionofamarketintodiscretegroupsthatsharesimilar DiscountAlsoknownascostofcapital.Thereis DiscountAlsoknownascostofcapital.Thereisanopportunitycostassociatedwitheveryinvestment,withthecostbeingtheexpectedreturnonanalternateinvestment.EnteringNewThreemainmethods:startfromscratch,formjointventure,acquireanexistingFiveCompany,Customer,Cost,Channels,FixedCoststhatdonotchangewithanincreaseordecreaseintheamountofgoodsorservicesproduced.FourProduct,Price,PromotionandGrossACompany’stotalsalesminusitscostofgoodssold,dividedbythetotalsalesrevenue,expressedasapercentage.HorizontalTheacquisitionofadditionalbusinessactivitiesatthesamelevelofthevalueInternationalMainmechanisms:exporting,licensing,franchising,jointventure,foreigndirectinvestment(acquisitionorstartup). InventoryAratioshowinghowmanytimesacompany'sinventoryissoldandreplacedoveraperiod.Shouldbecomparedtoindustryaverages: InventoryAratioshowinghowmanytimesacompany'sinventoryissoldandreplacedoveraperiod.Shouldbecomparedtoindustryaverages:lowturnoverimpliespoorsalesorexcessinventory;highratioimplieseitherstrongsale