Casing Frameworks to Memorize

Profitability Framework

1. Increasing Revenue

2. Decreasing Costs (fixed/variable)

Growing Business

1. Growth within Business

- BCG Growth Share: maximize your share of the fastest growing segments in a market

2. Growth outside of Core Business

Cost Cutting

1. Reduce need for what you're buying

2. Meet the need with less resources

3. Reduce the cost of resources

Market Entry

1. Market Opportunity (size, growth)

2. Potential Share (competitors, customer needs, our offering)

3. Potential Profit (TR-TC)

4. Capability/Risk (regulatory,, tax, etc.)

How to launch a new product?

1. Choose target segments

- Size & Growth

- Competition

- Customer needs

2. Define our strategy

- Product

- Price

- Distribution

- Brand & Advertising

3. Implementation

- Product Design

- Production

- Marketing & Sales

- Logstics

How to Price a Product?

1. Costs (Variable, Investment, Fixed)

2. Customer WTP

3.. Competitors/Substitutes

Whether to make an investment?

1. Impact on costs

2. Impact on revenue (breakeven = Investment Cost / Marginal Profit)

3. Implementation

M&A

1. Standalone Value

- Future Revenue

- Future Costs

- Valuation Multiples

2. Synergies

- Revenue Growth

- Cost Reduction

3. Capabilities and Risks

- Feasible?

Competitive Threat Framework

1. Potential Impact on Business

- segment

- potential loss

2. Opportunity Pursued by Competitor

- size/profitability

3. Possible Responses

- do nothing

- mitigate -- try to retain clients

- align -- lower prices

- replicate - launch competing offer

- collaborate

How to Optimize a Process

1. Map out current process, identify bottleneck

2. Look into each step

- eliminate

- reduce cost

- increase speed

- increase quality

3. Estimate gains

"Business Situation" Framework

Market

Customer

Product

Client