2009年商学院案例集

小灶小灶是一个面向大学生的一站式职业发展教育平台。小灶品牌旗下包括以［小灶］、［名企实习］为代表的四个，以小灶学徒项目为代表的线下系列，以及即将于2016年8月正式上线的职业发展课程(ww-wxiaozaoorg小灶由杜克大学创业团队创建，以杜克大学－新加坡国立大学专利脑科学技术为教育体系建设，以顶尖MBA职业教育理念为基础，结合创始团队超过40年的职场经验，打造国内最高质量的大学生职业发展教育平台。小灶（订阅号）快速获取求职干货

小灶学徒顾问（）求职问题有问必答WHARTONCONSULTINGCLUB PageConsultingIndustryIndustryFirmOverviews(10InterviewOverview–Fit+CaseIndustryPracticeLinkstoOtherCasesfromFirmSuggestedCasesfromother

Notetothe DearConsultingClubThiscasebookismeanttoprovideyouwithabriefoverviewofconsultingrecruitingandinterviewpreparationaswellasanumberofpracticecases.Pleasenotethatthisismeanttosupplementtheexcellentworkdonebyourandotherschoolsinearliercasebooks,sowestronglyencourageyoutonotmakethisyoursolereference.WehaveindicatedwhichothercasebookswefoundparticularlyusefulatdifferentpointsinthisBIGPICTURE:CONSULTINGRECRUITINGINVOLVESLOTSOFLITTLETHINGS…THEREISNOSILVERBULLET WhatresourcesyouwillneedtoIsconsultingwhatyouwanttoWhichfirmdoyouwanttoConnectthedots(pre-MBAtoMBAtoconsulting)Getinvitedtointerview(prepareDemonstrateTeam-Well-

MBACMindustryFirmwebsites/Vault/CoffeeSecondYears/FirstYearsfromSpeakersonMBACMresumeSecondYears(atleast2Prep‘Fit’questionsMBACMmockInterviewswithSecondReadWSJ,Economist…Ace •Casebooks&IndustryPrimerCorePracticeextensivelywithFirstMBACMmockInterviewswithSecondReachouttoconsultingfirm

Page3IndustryFirmOverviews(10InterviewOverview–Fit+CaseIndustryPracticeLinkstoOtherCasesfromFirmSuggestedCasesfromother

•••••Industryoverview–Management••••••••••••• ••••••••••••Firmoverview–••••••••••••••••••••••••••Firmoverview–A.T.••••••• •••••••Firmoverview–Bain&•••••••••••••••••••••••••••••Firmoverview–Booz&••••••••••• ••••••••••••Firmoverview–BostonConsulting••••••••••••••••••••••••••••Firmoverview–••••••• •••••••Firmoverview–L.E.K.•••••••••••••••••••••••••••••••Firmoverview–McKinsey&••••••••••• ••••••••••Firmoverview–Monitor••••••••••••••••••••••••••••Firmoverview–Oliver••••••••••••••••••••••••

ConsultingIndustryIndustryFirmOverviews(10

Page36Contents:Interview

AtypicalconsultingGeneralFitinterviewpreparationwithsampleCaseinterviewWhatisacase?CasetypesandinterviewmethodsProblemsolving–whatisit?CommonIndustryTipsforgivingOtherIndustryAtypicalconsulting Waitinhospitalitysuitewithothercandidates/InterviewerasksforyoubynameHandshake/

resume/

InterviewerwillstartKeeptrackoftimesothatyoubywhenyouareexpectedtoreacha

YourchancetoasksuitewithinterviewerYouAppearwarm,

interviewerthatyouarefitforthefirm

Maintaonfident,

Notaskstock Agoodchancetogettolearnabouttheinterviewer’salGeneral

MakeagreatfirstimpressionProfessionalappearanceHaveneededsGraph/inpaperProjectconfidencefromstarttoBeyourself(extremelyhardtobeconfidentifWhatis

Opportunitytoproject“consultant”duringtheWhenyoudescribeFocusonasetofskillsthat Workunderpressure/abilitytodeal andWhenyoudescribeyourDon’trepeatslogans;mostfirmsdothesameFocusonwhatthefirmsconsidertobetheiruniquefactors(e.g.internationalreach,BCG’sthoughtleadership,Bain’sofficecultureForin-depthprobingonleadershipquestions(typicalofPreparea5-10word‘newspaperheadline’thatencapsulatesthePreparebeforehanda1-2minutedescriptionthatquicklylaysoutthecontext,theactorsandthecomplicationFocusonyouractionsandthoughtprocessandtheimpactofyouractionsthatledtothesolution/eventualsuccessTipsontheFit

Almosteverysingleinterviewinvolvesatleastsomefit-interviewtypequestionsApplicantshavebeenturneddownfromthetopconsultingVerybasicstepsgoalongSHaveasucc tstoryPracticecanmakeTipsontheFitInterview

Establishcommonground(geography,family,interests,sports,etc.)Asktheinterviewerfriendlyquestionstalkaboutit)DiscusssomethingcontroversialCominaboutanythingMakeupelaboratequestionsyouknowtheanswerto slogans,mottos,tag-lines,etc.FocusonlyonyourbusinessqualificationsandSamplefit

TakemethroughyourlmeaboutatimewhenyouexhibitedlmeaboutatimewhenyoulmeaboutatimeyouhadWhyFirmWhatisyour WhatwouldyousayyourbiggestweaknessWhatareyourlong-termHowdoyoulikeWhatisyourfavoriteclassatCasetypesandcaseinterview

WhatisaAbusiness isfacinginafewTakesabout25minutes;haslimiteddatawhichisusuallyprovidedifaskedforApproachtosolutionismoreimportantthanthefinalsolutionTherearetwocommoncaseinterview‘Gowiththeflow’cases(typicalofmostfirms)–Youwilldeterminewhichareastoexploreandleadthediscussion,i.e.drivethecaseCommandandcontrol(typicalofMcKinsey)–InterviewerguidesthediscussionandcasehasheavybrainstormingcomponentsandtativeworkCommoncasetypes*(notacomprehensiveMarketEntry

ysis( l.non-profit)MarketSizingCapacityExpansion( l.outsourcing)Overallflowofa

~3 ~1-2 ~12-15 ~3ListenAskclarifyingTakejudiciousOrganizenotesasFormulateaninitialhypothesisaboutpossiblesolutions

minutetonyourDrawoutaframeworkaschecklistoftopicstoSelect3to5majortopicareasIdentifyrelevantsub-Presentnofattacktointerviewer–startwiththemostimportant

FollowyourtotesthypothesisAdjusthypothesisandnasdataHighlightinsightsfromanynumericalNote

DrivethecasetoaAnswertheTakeadefinitewithdataonhandMakemendationsandfollowthemwithsupportingevidenceAddress“risks”“nextTips:Communication,Notes&

Exinyourthought-processwhenpresentingyourMakehypotheseswhenaskingquestions/requestinginformationGobeyondverbalcommunicationBeengaging!EnjoythecaseproblemandworktogethertosolveBodylanguage(eyecontact,gestures,posture); oftenbutdonot Facialexpressions omposureatall egibly,angleitsuchthatthecase-givercanseeyourworkUseane geforeachthemeyouareexploringCircle/boxinsightsforuse Drawmathoutclearly(especiallyformarketsizing)Exinanyassumptions(bereasonablewithassumptions)Walkthroughyourlogicaloudandtietheresulttothecase7Tipstohelpyoustandoutinthecase

AskquestionsthathelpclarifythescopeofthecaseandtheexactquestiontobeDrawoutas“MECE”(Mutuallyexclusive,collectivelyexhaustive)aframework/treeaspossibleTalkaboutthemostimportantbranchesfirstandexinwhytheymaybethedrivers;don’tjustfollowthesequenceinwhichyouwroteWhenaskingquestionsorformoredata,prefacethemwithcontextual ysis,orevenahypothesisastowhatyouexpectthedatashow ngmath,relatethenumbersqualitativelytothecase,andidentify/verbalizethetakeawaysfromyourysis‘Brainstorminbuckets’:Ifaskedtobrainstorm,takeaminute,identifythebroadleversthatcananswerthequestion,andrun-riotwithideas.Structureandalogicalapproachisalwaysappreciated.Whenpresenting mendation–takeaposition!Beconciseandtop-downinyourmendation(i.e. mendationfirstwithsupportingarguments,tieinnumbersifpossible).Then,mentiontherisksthatinvalidateyourAnoteaboutThereareThereareanunlimitednumberofframeworksthatcanbesuccessfully…butknowledgeofafewsolidframeworkswillgoalongway(profitability,marketentry,go/nogoinvestment,etc.)SampleframeworkscanbefoundinthefollowingWharton,Ross,Stern,Tuck,Kellogg,andotherschoolcasebooksavailableonwebcafeDavidOhrvall“CracktheCase”andMarkCosentino“CaseinPoint”Yourknowledgefrommanagement,marketingclassesandpriorworkexperience–readtheCORECONNECTORpublishedbytheWhartonConsultingClubtooYourownlogicalproblem-solvingCosentinoandOhrvallbothoffer“systems,”butthesesystemsareessentiallycombinationsofindividualcase-typeframeworksUsewhat(1)Youarecomfortablewith,and,(2)worksforyou.Beasoriginalaspossible:DEVELOPAFRAMEWORKTHATISRELEVANTTOTHECASEPROBLEMQUESTIONANDINDUSTRY!Somesampleframeworksareprovidedinthenextfewslides.Butthesearejust dodevelopyourownframeworksforeachcase!–Sampleframework rease

’searnings/profits(or‘bottom-line’ eStatement)hasdeclinedorstoppedYouneed mendways rease Customer/GrowthRevenuesProfitsC1marketshareC2marketshare

Productdifferenceourproductsandcompetitionprod.Pricing-CompetitiveparityinCanwe↑Volumemeetdemand?

(Fixed/Variable)PP&E(Property,nt&Equipment)IT/ Howdoourcostsr

Customerweserve?-CurrentsalesAretheylow-costDothesechannelsattracthighmargin entivestructures/

Sampleframework2:Marketentry;Investmentandnewtechnologyisconsideringenteringanewmarket.Yourgoalis mendwhetherornottheyshouldenterForthesetypesofcaseswhatiscommonisthatthe isconsideringspendingmoneytogetsomekindofeconomicreturn.Inadditiontoseeingwhetherthedecisionisfinanciallysound,youhavetotest:LikelihoodofimplementationsuccessbasedonindustryconditionsandfirmDoarisk••••••••••••Sampleframework3:M&A

isconsideringanM&AYourgoalis mendwhetherornottodotheStrategic RiskBasicdealCostsynergy-Revenue- Early-stageco.beingacquiredfortechnology?ResponsetocompetitorTypeofVerticalNewmarketentryviaDiversification

RevenueCAPEX&WorkingPBT(profitbeforePAT(profitafterCostofcapitalValue=(PAT/DealCostandNewFirmNewValue>Deal

Hasthe acquisitionsbefore?CapabilityOrganizationalCompatible(high%ofM&Adealsdestroyvalueasculturesarenotmergerintegrationprocess)CaninvestorsnotdiversifybythemselvesSampleframework4:

isconsideringoutsourcinganYourgoalis mendwhetherornottodotheDoNOTmake mendationoncostsavingsalone–exploreareaslikecustomer impact,premiumcustomersegmentimpact WhyaretheythinkingofCostMarketentryintoBRIC/otherEarly-stageco.beingacquiredfortechnology?ResponsetocompetitorCustomersWhichWhataretheir

Currentcosts(in-houseOutsourcedOutsourcingIT/Systemcost

Implementationrisk?PoliticalCurrencyPartnerQualityofLeadCustomerStakeholderStakeholders–joblossissuesManagemedia&IMPORTANT:Sometimesinterviewsmightmakeadifferenc weenOutsourcingandOff-shoring:formerreferstofunctionsthataredoneoutsidefirm’sboundaries.Latterreferstooutsourcedfunctionsdoneinadistantlocationsuchas orIreland.Sampleframework5:Non-profit

isanon-profitYourgoalistosolvethespecificproblemfortheImportanttodisythatyouunderstandthatnon-profitshavefundamentallydifferent besidejusttheeconomicsofaparticular •••••••••Afterdeveloaframework,problemsolvingrequiressmartfollow-upquestions&insights enternewmarket?Whatis doM&A?Post-mergerintegrationHow reaseprofits? How reducecosts?Byhow makenewinvestment?WhatisHow rease How grow outsource?Compare/valueWhatareindustryInfooncompetitors/marketStrategicrationaleunderlyingWhatproducts?Prices?What’sthecostProfitimpact WhichcustomerWhatarecustomerneeds/Whatchannels? Anyregional/geographicWhataretheAnyregulatory

Widevarietyofbusinessesguidedtofyimprovement(i.e.todosomebasicappliedmath)Notallissues/driversAnybehaviorberelevantbutshouldletyouquicklyzoneinonkeytoChangesover Thisismeanttobea–nota

eTipsforgiving Rememberthatthereisnooneanswertoanycase!AcandidatecanbecreativeenoughtotakeanewapproachtowardstheOtherreferences:Case

Thereareanumberofotherresourcestolearnaboutcaseprep.Wefoundthefollowingparticularlyuseful:Kellogg2004Casebook–Pages5toRoss2007Casebook–Pages3to25OlderWhartonCasebooksFormoredetailedoverviewsofspecificindustries,gotoS&PIndustryTearSheetsAccessvia ottLibrary

Remember,casesareaboutproblem-solvingabilities,notwhetheryouareanindustryCaseinterviewsspanabroadrangeofindustries.YoumayencountereverythingfromFinancialServicestoMiningtoEducationtoFormula1Thoseofyouwhohavenotworkedasconsultantsbeforewilllikelynothaveanybackgroundinmostoftheseindustries cangiveyouaveryhighlevelviewofsome‘typical’industriesthatcasesfocusonYouMUSTattendtheindustryprimerseriesledbypartnersfromvariousfirmsastheywillcapturekeyinsightsandlatesttrendsinthoseindustriesthattendtobepopularinWebelievethathavingaverybasicoverviewofanindustryhelpstomoreeffectivelytackleacaseAttheveryleastithelpsyouconstructaframeworkthatismostapplicabletothatparticularproblemcontext.Examples:Consumergoods:brandingisanimportantdriverofPharma:genericsmanufacturersposeamajorcompetitiveDonotattempttomasterindustryspecificsormemorizeindustryYouprimaryobjectiveoverthenextfewweeks/monthsistomastercase-problemsolving…not eanindustrySpendingalittletimeinformingyourselfaboutthebasicsofafewkeyindustriesshouldimproveyourproblem-solvingability.Thefollowingpageswillhelpinthisendeavor. Overview/Products&Key

Establishedlegacycarriers(e.g.,Delta,American,United)competewitheachotherandwithlow-costoperatorsonmultipledomesticroutes;priceisusuallythemajorcompetitivefactor.Somedomesticcarriersalsooperateinternationalroutes,cingthemompetitionwithoverseasairlinesConsumerPackagedGoods Overview/Products&Key

Lifestyle/consumerbehaviore.g.agingpopulation, works,onlineadvertising,gogreen,economicNewproductscriticaltoCompleynew,slightlyimproved,productlineInaddition,companiesdriving‘outside-in’productinnovation(fromoutsideofR&DProductmixandBrandmanagementarecriticaltoCPGEmergingmarkets –seenasimportantsourceoffuture

IndividualDiscountWholesalers(Sam’sClub,Largeboxretail(Wal-mart,Target,ConvenienceRetail(7-11,Rite-

Energy:(Generation,Transmission,&••Products&••Key

Regulationsongreenhousegasemission inginvestmentintransmissio work,renewablegeneration,smartgrids,andlikelynuclearSe1990s,deregulationoftransmissionsystem;newwholesaleelectricitytradingmarketsnowinmanyregionsofthecountry.Within"deregulated"markets,generation,transmission,anddistributioncarriedoutbyseparatecompanies.“Natural”monopoliesstillexistGeneration:combinedrevenueof$80B;majorcompaniesludeDukeEnergy,Exelon,andDominionResources.Highlyconsolidated;the50largestcompaniesearnover85%ofindustryrevenueTransmissionandDistribution:combinedannualrevenueofabout$260B.MajorcompaniesludeAmericanElectricPower,Exelon,PG&E,andSouthern.Highlyconsolidated;50largestcompaniesearnover80%ofrevenue

ernment,andresidentialPricesusuallyhighestforresidentialandcommercialconsumersbecauseitcostsmoretodistributeelectricitytoIndustrialconsumersusemoreelectricity,andcanreceiveitathighervoltages(withouthavingitstepped

RetailFewerthan1percentofcustomerinctionsintheutilitiesindustryarecurrentlymadeviatheInte,yetuptotwo-thirdscouldbeSlowdevelopmentofconnectionsbetweenutilityWebsitesandbackends.SuchconnectionsmakeitpossibleforconsumerstodorealbusinessonaWebsite,suchascheckorpayabill,ordernewservicesorreportatechnicalproblem.Profit

Demanddrivenbypopulationgrowth,economicactivity,andelectricityProfitabilitydrivenlargely ernmentregulationsandfuelCoststobuild,finance,maintain,manageandoperatepowerntsanddistributionlines.Costsdrivenbyvariationsinelectricitydemand,availabilityofdifferentgenerationsources,fuelcosts,andntavailability.Seasonality;i.e.costsusuallyhighestinsummerwhenmoreexpensivegenerationisaddedtomeethigherdemandFinancialServices:Consumer

Products&Key

Creditcrisis/financialmeownthreatenedsolvencyofindustryduetoilliquidassetsdifficulttoConsolidated,matureindustrywithprimarygrowththroughDemographicshift(babyboomeraging)creatinglargemarketforretirementOffshoringofvariousfunctionstoreduceexpenses(e.g.callcenters,backofficeLargenationalyers(BankofAmerica,Citi)competewith yersservice tendwellbeyondcommercia ingtoinvestmentbanking,securitization,proprietarytrading,etcwithservicesthatarereasinglyopaque

IndividualHigworthconsumers(prioritySmall/mediumbusinesseswithoutsufficientsizeforlargerinvestmentbankingfinancing

Stilllargeface-to-facepresencewithbank lers,reasinguseofATMservices,online reasinglyoffercreditcards,homeloans,etcasmeans reaseassetProfitRevenuerevenueisthespreadbetweenbank’sborrowingcostandtherateschargedtoborrowers;ProfitCosts:Overhead(branches,administration,compliance);Salaries;BadDebtFinancialServices:

Overview/Products&Key

Creditcrisis/financialmeownthreatenedsolvencyofindustryduetoilliquidassetsdifficulttoOneofthegloballeaders(AIG)nationalized reditcrisis,emphasizingtheimportanceofmonitoringinvestmentUSnationalhealthcarechangescouldcompleychangethelandscapeofthehealthinsuranceCompaniesfocusedonmanagingriskandcontrolling

Severallarge,integratedyersoperatingacrossmultiplepartsoftheindustry(AIG,Prudential,Somenicheyersfocusinginaparticularsegment(GeicoIndividualconsumersseekingtomanageriskathome/ontheSmall/medium/largebusinessesseekingtomanagerisksofpropertydamage,liability,

Insuranceagents(sales)stillmanagemuchofthefront-endsalesprocesstoOnline ingeasierwithbetterwebsitesandaggressiveDirectmarketingtoemployeesviain-officedemonstrations(Aflacsupplementalinsurance,ProfitRevenuerevenueisthespreadbetweenpremiumscollectedandclaims/paymentsmadeoverProfitCosts:Overhead(administration,compliance);Salaries;SalesCommissions;

Manufacturingsector ludescompaniesthatareinthebusinessofmechanical,physical,orchemicaltransformationof ponentsintonewproducts lude:textile,paper,chemical,computer/electronics,transportationequipment, Overview/Products&Key

Variesbysubsector.Media yersgenerallycompeteforaudienceinterestinordertogeneratemoreadvertisingrevenue.Landscapeisverycompetitivewithafewmajoryersowningintegratedportfoliosacrosstheentiremediauniverse(Disney, ,NewsCorp,etc) Overview/Products&Key

Keysuccessfactorcomesdowntohing:Productstargetvarioustreatmentareas(TA):cancer,cardiovascular,psychologyUS,EuropeandJapanarelargestmarketsalthoughemergingmarketopportunity )isFood&DrugAuthority(FDA)needstoapprovealldrugsbeforePrivateEquity(Go/NoGo

Products&Key

LargeramountsofequityrequiredforeachPotentialwaveofdealsfailinginthecomingBuyingandsellingofcurrentPEcommitmentslikely reaseoverthenextfewGrowingneedforPEfirmstohavecash

DealvolumehassharplydeclinedLarge(e.g.KKR,Carlyle,Blackstone,TPG),Mid($250Mto$5B),andSmallMarketPE

NewcustomersofPEdealsmaybeInstitutionalCustomerscanrangefromsmallfamily-ownedcompaniestolarge

LeveragedBuyouts:controllinginterest(ofequity)isacquiredthroughhighVentureCapital:investorsgivecashinexchangeforshares/controlofinvested;typicalwithstart-MezzanineCapital:financingthatcontainsequitybasedoptionsandsubordinateddebt(e.g.convertibleGrowthcapital:financingtoexpand,restructure,orenternewmarketswithlittlechangeinDistressedInvestments:investinginfinanciallystressedProfit

Whatfinancialleverscanbepulledtomakethismoreprofitable(variouswaystoaccesscash,capstructures,Whatoperationalleverscanbepulledtomakethisdealbetter(more agementWhatreturnoninvestmentisrequiredtomakethisinvestmentWhatisthetimeframeofreturnonthisIsthereabetter(moreprofitable)investmentwheremoneyshouldbe Products&Key

Systems:IBM,Hewlett-Semiconductors:In,Samsung,Toshiba,TexasCommunicationsEquipment:Cisco,Nokia,Software:,IBM, Software:,ITServices:Accenture,IBM,RelevantBysize:Enterprise,SMB(small/mediumbusinesses),Bytype:Businessvs.Variesbycustomerfocus.Business/Enterprise-focused yerstendtorelyondirectsales SMB/Retail/Consumertendtorelyonindirectchannels.

Systems:Lowermargin(COanagementkeytoSemiconductors:Highfixedcosts(capex)andhighlycyclical;manufacturingCommunicationsEquipment:ManufacturingSoftware:license/maintenanceversussubscriptionservicemodel;renewalrates;highgrossmargins,buthighR&DITServices:staffutilization;revenueper :revenuepermunications Products&

municationsisamammothindustry,comprisingcompaniesthatmakehardware,producesoftware,andprovideservices.Hardwareludesavastrangeofproductsthatenablecommunicationacrosstheglobe,suchasbroadcastingsalites,ephonehandsets,fiber-opticcablesetc.Servicesluderunningtheswitchesthatcontrolthephonesystem,andInteaccess,andconfiguringprivatworksbywhichinternationalcorporationsconductbusiness.switchingequipment.Key

networksinemergingmarketscausingbroadbandsubscriberstooutnumberfixed-linebroadbandsubscribers.Manyhouseholdsaregivinguptheirlandline,preferringtouseaorVoIPservices(Skype,Vonage)ontheirLandscapeisverycompetitiveandwirelesscarriershaveundergoneawaveofconsolidation:Inrecenttimes,Cingular Big4cellularyersareAT&T,Verizon, andSprintCablecompaniesattemptingtocapturewirelesscustomersthroughwirelessserviceofferingsoftheirown(orinpartnership)e.g.ComcastintroducingWiMAXserviceinPortland,Ore;COXwillofferservicelate’09. •Individuals,companies

Carrier-ownedstoresandleadingretailerslikeWal-Mart,RadioShackandBestBuyaresignificantchannelsforphonesalesandservice.Majorcarriershaveonlinestoresforphoneandservicepurchases.Theyarejoinedonlinebyalloftheirretailcompetitors(BestBuy,Walmart,RadioShack)aswellas ,wirelessspecialtyretailerslike RevenueDrivers:Subscriptions,dataservices(SMS, andinte accessons), advertising,appCostDrivers:VC:marketing&advertising,salaries;FC:capitalcosts(equipment,infrastructure–celltowers

ConsultingIndustryIndustryFirmOverviews(10

Page36ListofPractice

CaseCase1:McKinsey–MexicoCityAirportTaxiCase2:Bain–FranchisingCase3:BCG–GreetingCardCase4:Bain–UKAssetCase5:McKinsey–MightyMiningCase6:Bain–TheReelCase7:Lenovo–PublishingCase8:BCG–RetirementApartmentCase9:Bain–BigYellowCase10:A.T.Kearney–CarCase11:Bain–BloodCase12:McKinsey-Case13:A.T.Kearney–Manny’sCase14:Bain–Zenith

PageMcKinsey,Round: Overviewforinterviewer Informationtobeprovidedupfront(handcandidateattachedexhibit)Thisisaprofitabilitycase,sotheformulaP=R-Cshouldbeframeworkproposedbythecandidate.determiningthepossiblerevenuetobemadeandtotalkaboutcoststodetermineprofitability.containsalotofinformationwhichthecandidatewillneedtoCaseStyle:Command&Control

candidateasksfordataagain,referhim/hertothehandout.Airporthandles42millionpassengersThereare5,500taxisoperatinginthe ageataxitakes60minutestodrivepassengerandreturntoairportfornext.regulatedrates. age40%ofdomesticflightspassengersand80%30%ofdailydemandoccursbetween6:00a.m.and10:00Taxidriverskeep50%ofthe

PotentialIssueTree&ApproachtoSolvingtheEstimatedailydemandfor Estimatepossible EstimatepossibleEstimatethenumberofpassengersarrivingeachdayEstimatepassengersthatwillrequireIsthisdemandbeingPossiblefollow-upandguidancetointerviewerSeefollowingAssumethatpassengervolumeisequallydistributedthroughtheyear/week/day.Assumethat50%ofpassengersarefromdomesticflightsand50%internationalflights.

Demandnotbeingmetdaily:500passengersinthe+8,000passengersinthe=8,500passengersneedingservicex$200=$1,700,000dailyrevenueYearlyRevenue=Possiblefollow-upandguidancetointerviewer

maintenance,drivers’salary,gas,carrepairs,etcP=R–Profit=Revenue–maintenancerepairsdrivercommissions–permitP=571,200,000–($8,000x2,000taxis–285,600,000–($1,000x2,000taxis)=267,600,000Possiblefollow-upandguidancetolcandidatetoconsideronlypermitscosts,carmaintenanceanddriverssalaries(thenumbersforthesecostsweregiventocandidateatthebeginningofthecaseinterviewonthehandout)

Question1–Overallapproach,goodshortcuts&Estimatethenumberofpassengersarrivingeach3.5millionpassengers/4weeks=875,000passengers62,500domesticpassengersx40%ofdomesticusetaxis=62,500internationalpassengersx80%ofinternationalusetaxis=Totalpassengersdemandingtaxisdaily=Non-peakhours=22,500passengersneedataxi(=75,000x30%)5,500taxisoperatingthencapacityserves22,000passengers.Excessdemand=500From6to10pm,usingthesamelogiccapacitymeets22,000passengers:5,500taxisoperatingthu cessdemand=8,000passengers(need2,000taxis).Duringnon-peakhours(16hours)22,500passengerswillneedataxi.With5,500taxisinoperationthereiscapacitytoserve88,000passengersduringthattime.Inthattimeperiodthereicesscapacity.Toservicedemandnotbeingmetinthemorningandnightperiods2,000taxisare

internationalflights.

MexicoCityAirportTaxiFacts&Airporthandles42millionpassengersThereare5,500taxisoperatingintheairportfornext. ageapassengerpays$200cabfareviaregulatedOage40%ofdomesticflightspassengersand80%ofinternationalflightspassengersusetaxis.30%ofdailydemandoccursbetween6:00a.m.and10:00a.m.,40%occursbetween6:00p.m.and10:00p.m.Assumeeachpassengerusesone ageeachtaxirequires$8,000yearlyonTaxidriverskeep50%ofthe

shouldbuy2,000permitsbasedonthepotentialyearlyprofitof$267,600,000fromexcessdemandattheairport.

Possibleretaliationfromothertaxcompanies,suchasenteringothermarketswheretheoperatesandstealings.Thereisnoguaranteeairportwillnotallowadditionalpermitsinthefuturewhichcouldreasethenumberoftaxisattheairport.Bain,Round Problemstatement isagymfranchisor.The focusesonsmallgyms(approxima y3000squarefeet)withstandardfitnessequipment,gymviaanaccesscard.Staffingatthegymisminimaltonone(dependsoneachindividualfranchisee).Thisbusinessisgrowingveryrapidly.However,thereisnowanewcompetitorofferingasimilarfranchisingopportunity.Tomakeour’sfranchisingopportunitymoreattractive,ourwouldlikeyourinputonhowtheprofitabilityofitsfranchisescanbeOverviewfor Informationtobeprovidedupon(presentedinthesubsequentslides)wouldludethe ysisbasedonunderstandingofrevenueandcoststructuresBrainstormingofnewrevenueBrainstormingofcostcuttingysisofprosandconsofmarketConclusion/ CaseType:Various

Seefollowingslidesforfurther

PotentialIssueTree&ApproachtoSolvingtheProfitStructure(RevandKeyrevenueKeyfixedandvariable

MarketSizeoftheGrowthKeycustomersegmentsanddifferentiatingqualities

KeyAmountofconcentrationorBycustomerKeydifferentiatingguidanceto

guidancetointerviewerOverallmarketexpectedtogrowhealthierlivingtrends$10billioninrevenuelastRelevantsegmentation

guidancetointerviewerKeycompetitorsofferessentiallyNotakeyaspectofthecase;

Question1– Overallapproach,datarequiredandIdentifytherevenuepermember,fixedandvariablecostsfora•MonthlyMembershipdues:$40/Vending ):$5/al ):$15/Total:$60/VariableCosts:None(ortoominimaltoFixedRent:$24/squarefeet/year(or$6000/Equipment:$144Kinitialcost,3yeardepreciation,$0salvagevalue(or$4000/month)Labor:40hours/week@$20/hour(or$3200/Utilities:$400/Franchisefee:$300/Marketing:$100/Total:$14000/BreakevenContributionmargin:$60/FixedCosts:$14000/#ofmemberstobreakeven=$14000/$60=

InformationtoprovideupGuidecandidatetothepermember,fixedandvariablecosts),brainstormingeachofthepotentialassociat