Case in PointA powerpoint summary of types of cases as presented by Marc P. Cosentino (4th ed.)By: Helen Lee For the Caltech Consulting ClubThe Case Commandmentsn1. Listen to the Questionn2. Take Notesn3. Summarize the questionn4. Verify the objective(s)n5. Ask clarifying questionsn6. Organize your answern7. Hold that thought for “one alligator” think before you speakn8. Manage your timen9. Work the numbersn10. Be coachablen11. Be creative and brainstormn12. Exude enthusiasm and a positive attituden13. Bring closure and summarizeTypes of Case QuestionsnBrainteasersnBack-of-the-Envelope (estimation questions)nBusiness Case Questions (our focus in this ppt.)Number casesBusiness strategyOperationsThe Ivy Case Systemn4 initial stepsn12 popular case scenariosThe First 4 stepsn1. Summarize the questionn2. Verify the objectiven3. Ask clarifying questionsn4. Lay out your structureThe Twelve Case ScenariosnStrategy CaseEntering a new marketIndustry AnalysisMergers and AcquisitionsDeveloping a new productPricing StrategiesGrowth StrategiesStarting a new businessCompetitive responsenOperations CaseIncreasing salesReducing costsImproving the bottom lineTurnaroundsEntering a New Marketn1. Determine why? Whats our objective/goal? Does it fit into our overall strategy?n2. Determine the state of the current and future marketn3. Investigate the market to determine whether entering it would make good business sensen4. If we decide to enter, we need to figure out the best way to become a player (Cost-benefit analysis)Start from scratchAcquisitionJoint venture/strategic allianceIndustry Analysisn1. Investigate the industry overallLife cyclePerformanceClients position w/in industryMajor players and market shareIndustry changesdriversn2. Suppliers & product availabilityn3. Future outlookMergers, acquisitionsBarriers to entryMergers and Acquisitionsn1. determine goals and objectivesn2. How much are they payingn3. Due diligence (research the company and the industry)n4. exit strategiesDeveloping a New Productn1. Think about the productSpecial? Patented? Substitutions?n2. Think about market strategyReplacing existing product? Expand sales or customer base?Barriers to entering marketMajor playersn3. Think about customersWho are they and how can we best reach themn4. Think about financingPricing Strategiesn1. Investigate the productn2. Choose a pricing strategyCost-based pricingPrice-based costingCompetitive analysisn3. Supply and demandGrowth Strategiesn1. Ask feeler questions. Growth could mean focusing on a certain product, division, or company overall. Determine direction of questioning.n2. Choose a growth strategy based on situation and explain why.Increase distributionIncrease product lineDiversifyEtc.Starting a new Businessn1. Investigate the marketn2. Worth investing in?ManagementMarket & Strategic PlanDistribution ChannelsProductsCustomersFinanceCompetitive Responsen1. analyze competitors actionsn2. choose one of the following response actions:Acquire the competitorMerge with competitorCopy competitorHire competitors managementIncrease our own profile with P.R. campaignIncreasing Salesn1. Increasing sales doesnt always mean increasing profits. Find underlying reason to increase salesnFour ways to increase sales:Increase volumeIncrease amount of each saleIncrease pricesCreate seasonal balanceReducing CostsnType A:1. ask for breakdown of costs2. investigate any abnormalities3. benchmark competitors4. determine any labor-saving technologies that help reduce costsnType B:Internal costs: union wages, suppliers, materials, economics of scale, etc.External costs: economy, interest rates, etc.Increasing the bottom line: ProfitsnProfits=(Revenues x Costs)*VolumenIdentify revenue streamsnExamine your costsnDetermine whether you want to pump up the volumeTurnaroundsn1. gather informationWhy is it failing?Industry analysisTell me about the companyn2. Choose appropriate actionLearn as much about the business as possibleReview services, products, and financesSecure sufficient funding so your plan has a chanceReview talent and temperment of employees, get rid of deadwoodDetermine goals (short and long term)Business planVisit clients, suppliers, distributors and reassure themPrioritize goals and get some small success.Caltech Consulting ClubnPractice cases offered to members of the Caltech communitynhttp:/consulting.caltech.edu/nFor general announcements, join the mailing listThe End