Consulting Internship Framework Flashcards

Profitability Framework

Mathematically analyze a business’s profitability, identify flaws, inspect qualitative aspects

1. Break down profits of the business

2. Break down revenues into price per unit x number units sold

3. Bread down costs into VC and FC

4. Break VC into cost per unit x units produced

3C’s Framework

Focus on customers, competition, company

1. Customer demographics, needs, size and growth rate, price sensitivity

2. Value proposition and brand of competitors, market share and growth, financial health

Provides broad overview of strength and weaknesses

Value Proposition

Statement that communicates the benefits and value of product or service to customers. Ex: Your local coffee shop may have a value proposition that's similar to this one: We help our local customers to feel good and do good by fueling them up with artisanal coffee in a community-focused space

Mergers and Acquisition Framework

Break down the thought process for merging and acquiring a company

1. Organizational Values of the two businesses and their compatibility

2. The synergy in terms of operation

3. Other variable factors: feasibility, legality, cultural attributes

Or look at 4 aspects and components

1. Market: size and growth, profitability, threats, regulations

2. Target Business: Financial position, assets, quality of management team

3. Buyer: reason for acquisition, financing, buyers acq experience, timing

4. Synergies and risks: value of individual and combined entities, risks of failure

4p/7p Marketing Mix

1. Product

2. Price: all pricing plans

3. Place: Geographic location and distribution channels

4. Promotion: Strategies used for promoting product

   with the addition of

5. People: Customers and stakeholders

6. Process: flow of activities or mechanism between customers and business

7. Physical Evidence: Everything physical (packaging to service environment)

Porter’s 5 Forces Model

Evaluate the strengths and weaknesses of the industry surrounding the business

1. Competitors

2. Suppliers

3. Customers

4. New Entrants

5. Substitute products

   mapping these allows for understanding of the competition of the industry and the company’s long term profitability

Market entry framework

Used for new market business plans to enter

1. Market: size profitability, products present, competition, regulations

2. Client capabilities: Difference between pre existing business

3. Financials: current position relative to cost to enter, expected further costs and revenues

4. Entry strategy: timing, speed, merger opportunities, management approach

Pricing Case Framework

considers all factors when creating pricing plan

1. Cost based: FC, VC, and number goods sold

2. Value based: Features and additional emotional, financial, etc value this product brings

3. Competitor Based: Pricing plans of competitors, substitutes, etc

Top Down Approach

process that starts with a big picture or overall goal and then breaks it down into smaller, more detailed components

Bottom Up

starts with individual elements or details and gradually builds them up to create a larger system or understanding

Unit economics

single unit cost and revenue

loss leader strategy

strategy of taking on a loss for greater market entry