Consulting Prep Book IIM Shillong- 2022

CONSULTING PREP BOOK IIM SHILLONG

2022-2023

ISSUE DETAILS AND COPYRIGHT Consulting Case Book, ConQuest. © 2022, ConQuest All rights reserved.

Fourth Edition: September 2022.

Authors: Aanchal Chowdhury, Aditi Pathak, Deepali Singh Baghel, Naval Mittal, Paridhi Jain, Pratik Rathi, Shruti Gupta, Vivek Bansal, Yugadhya Mathuria No part of this document may be reproduced or transmitted in part or in full, in any form or by any means electronic or mechanical, including photocopy, recording, transcription or any information storage and retrieval system without full and formal approval from ConQuest, IIM Shillong.

ConQuest, IIM Shillong

2022-2023

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ACKNOWLEDGEMENT The fourth edition of Consulting Case Book by ConQuest – the Consulting and Strategy club of IIM Shillong, is the outcome of year-round hard work by all the members. But such a broad idea starts with a vision, the vision was inculcated in us by our immediate seniors, the ConQuest 2019-21 team consisting of Ankita Mittal, Asawari Joshi, Dhruv Anand, Kanika Gupta, Raksha Shetty, Summit Gupta and Yash Jain.

We would like to extend our sincere gratitude to Prof. Subhadip Mukherjee for his constant guidance as our faculty mentor.

We would also like to thank the PGP batches of 2020-22 and 2021-23, for sharing their valuable interview experiences and helping us make the case transcripts as close to reality as possible.

We would like to convey our special thanks to Aayush Jain, Akriti Kulshrestha, Karan Agarwal, Pratik Bapna, Raghav Charan, and Soumya Prakash for the extensive support they provided with the content of the Consulting Case Book.

We would also like to thank all of our alumni and readers for all their suggestions and feedback.

Team ConQuest 2021-23

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2022-2023

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EDITOR'S DESK ConQuest, the Consulting and Strategy Club of IIM Shillong is delighted to present the Consulting Case Book, your ultimate guide to prepare for and crack your Consulting interviews. The fourth edition of the Consulting Case Book looks to build on the success of the past editions and incorporate the feedbacks received regarding them. The document requires year-round hard work with an aim to provide a holistic view to the readers about the types of cases that are usually asked in a consulting interview and also equip them with resources.

It contains a collection of real-life interview experiences of candidates with some of the leading consulting firms. These interview experiences were collected, analyzed and sanitized for reader's ease. We also have provided all the major frameworks that help the students in analyzing and successfully cracking any case.

During our interaction with the candidates, who converted their interviews, we realized that another key factor to excel is to have an overview of industries, particularly the knowledge of value chain elements, segments, cost & revenue streams, growth drivers, major players and government policies. Therefore, we decided to dedicate an entire section to analysis of 14 industries that most frequently show up in interviews.

The domain knowledge about the career advancement and organizational hierarchy is really important for interviews & also for candidates to have a clarity of vision. Hence, we have provided a Consulting Primer to cover you on this base. This will also help to alleviate some of the grey area associated with consulting domain. Lastly, in any interview it is really important to know your way around domain related terminology that are used, you can find a list of all such major terms in our Glossary section.

At IIM Shillong, the vision of greater good is inculcated in students since day one, we believe that the benefits of the work put in by our team should not be bound by campus. We hope anyone who reads the case book finds it insightful.

Wishing you the best!

Team ConQuest 2021-23

ConQuest, IIM Shillong

2022-2023

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TABLE OF CONTENTS S.No

Particulars

Page No.

3 (e)

Iron & Steel

34

8-9

3 (f)

FMCG

35

Pros and Cons of Consulting

10

3 (g)

Healthcare

36

1 (c)

Roles in consulting and career ahead

11

3 (h)

Hospitality and Tourism

37

1 (d)

Hiring process and skills required

12

3 (i)

Information Technology

38

2

Business Frameworks

3 (j)

Insurance

39

2 (a)

PESTEL analysis and example

14-15

3 (k)

Power and Renewables

40

2 (b)

Porters 5 forces and example

16-17

3 (l)

Oil & Gas

41

2 (c)

BCG matrix and example

18-19

3 (m)

Retail

42

2 (d)

SWOT analysis and example

20-21

3 (n)

Telecommunications & Telemedia

43

2 (e)

Five C's analysis and example

22-23

4

Case Frameworks

2 (f)

Business Model Canvas and example

24-25

4 (a)

How to approach a case interview?

45

2 (g)

Ansoff Matrix and example

26-27

4 (b)

Structure of a consulting case interview

46

2 (h)

4 P's analysis and example

28

4.1

Profitability

3

Industry Snapshots

4.1.1

Profitability Overview

48

3 (a)

Aviation

30

4.1.2

Transport Department

49

3 (b)

Automobile

31

4.1.3

Cost Reduction Overview

50

3 (c)

Banking

32

4.1.4

IT service provider

51-52

3 (d)

E-Commerce

33

4.1.5

Thermal Power Plant

53

S.No

Particulars

1

Consulting Primer

1 (a)

Introduction to Consulting

1 (b)

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TABLE OF CONTENTS S.No

Particulars

Page No.

S.No

Particulars

Page No.

4.1.6

Public sector bank

54

4.6.1

Unconventional Case overview

75

4.2

Market Entry

4.6.2

Second hand car refurbisher

76

4.2.1

Market Entry overview

56

4.6.3

Retail chain category manager

77-78

4.2.2

Builder entering the Mall segment

57

4.6.4

Travel Aggregator

79

4.2.3

Water Purifier Company

58

5

Guesstimates

4.2.4

Farmer's Market

59

5.1

Data Sheet

81

4.2.5

Snack Category

60-61

5.2

Tips & Tricks

82

4.2.6

Catering Business

62-63

5.3

Number of Refrigerators

83

4.2.7

Beer manufacturer

64

5.4

Number of T-Shirts sold by e-commerce

84

4.3

Pricing

5.5

Number of Swiggy users

85-86

4.3.1

Pricing Overview

66

5.6

Number of Schools

87-88

4.3.2

Fertilizer Market

67

5.7

Cabs to & fro airport

89-91

4.4

Growth strategy

5.8

Broadband connections in India

92

4.4.1

Growth Strategy Overview

69

5.9

Number of Ketchup sachets sold

93

4.4.2

Auto parts manufacturer

70

5.10

Demand for Television

94

4.5

Mergers & Acquisition

5.11

Market Size of Diapers

95

4.5.1

Mergers & Acquisition Overview

72

5.12

Number of Airplanes flying out

96

4.5.2

Retail Conglomerate

73

5.13

Demand for Natural gas

97

4.6

Unconventional Cases

5.14

Calls received by customer care

98

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TABLE OF CONTENTS S.No

Particulars

Page No.

5.15

Non-Transport revenue by Ferry Co.

99

5.16

Number of nutrition food customers

100

5.17

Number of movie screens

101

6

Consulting Glossary

6.1

Glossary

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CONSULTING PRIMER

INTRODUCTION TO CONSULTING What is Consulting?

Consulting is a process of providing business advice and helping clients solve a business problem including tech, IT, operations, strategy domains.

Consultants are usually referred to as 'Problem Solvers' Consultants use various approaches to help the business, it could be in the form of primary and secondary research, logic and business sense and provide an insight on how to approach and solve a business problem.

Consultants work across a wide range of roles, projects, industries, sectors, geographies to analyze information, and help the client to achieve desired goal.

It requires both analytical and people skills.

The consulting process involves understanding and comprehending a client’s problem, using tools like Excel and PPT to analyze and then present in front of client.

The end to end role of a consultant majorly includes defing the business problem, collecting and analyzing data to better understand the problem, provide recommend and plan the implementation.

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Types of Consulting

Strategy Consulting: An upper level decision making showing broader picture, helps in M&A decisions, market entry or exit, etc.

Financial Consulting: Providing information and advice on investment strategies, audits, taxes, actuarial, valuation and risk management, etc.

IT Consulting: Tech consulting, IT advisory, business technology, cyber security, data analytics, designing, advising best use of tech

Operation Consulting: Improve operational efficiency, supply chain, distribution.

It includes HR, Marketing operations too

HR Consulting: Employee Management, compensation and recruitment, outsourcing roles, employee satisfaction

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INTRODUCTION TO CONSULTING Among a large pool of consulting companies in various domains, some of the major ones are listed below:

Management & Strategy Consulting

Financial Consulting

HR Consulting

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Technology Consulting

Operation Consulting

Health Care Consulting

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Social Impact Consulting

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PROS AND CONS OF CONSULTING

Pros of Consulting

Cons of Consulting

Networking:

Hard work:

Working with multiple teams Interaction with several different stakeholders Solving a problem requires inputs from people working in several domains, good number of connections in a smaller amount of time

When you work in the consulting domain, it generally entails: Long working hours-can span more than 12 hours per day High Pressure environment with stricter deadlines Diversified project means that you have to put an effort in learning while doing job

Diversity in work: Exposure in several industry/fields Type of projects like operations, entry/exit, growth strategy

Travel: Frequent travelling within smaller time span affects the efficiency and could be stressful for anyone

Steep Learning Curve: Working on complex business problems Developing strong analytical and communication skills

Problems like staying away from family and travelling to remote locations are frequent issues that come while working in this domain

Better exit opportunities More leadership position Venture Capitalist Policy making

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ROLES IN CONSULTING AND CAREER AHEAD Roles in Consulting

Career Ahead

Roles generally offered in B-Schools

Front End Role: Directly in touch with clients Have the responsibility to present the work done by the team

Partner

Back End Support Role:

Director

Specialization in specific skills like domain knowledge, data analytics, etc.

Principal

Knowledge Team:

Manager

Release papers, sectoral issues, research, etc.

Monitor economic and other macro factors and provide inputs to the firm

Consultant Building corporate strategy like restructuring, business assessment, etc.

Support Staff:

Associate

Prepare client powerpoint presentations, decks, videos, promotional activities, etc.

Better client interaction, deriving insights from in depth analysis, etc.

Expert Support:

Analyst Data collection, documentation, problem solving, etc.

Industry domain experts like food, automobile, textile, renewables, etc.

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HIRING PROCESS AND SKILLS REQUIRED

CV Shortlist:

CV Shortlist

Case Interview:

Case Interview

Fit Interview

Candidate will be given a case problem, guesstimates, etc.

It judges verbal, quantitative ability, business knowledge, communication skills & eye for details of the candidate Books and Mock Interviews are the way to prepare

HIRING PROCESS

Fit Interview: Matching candidates personality, skills, with that of firm, cultural fit Leadership and other soft skills are measured

Hiring Decision

Hiring Decision: Based on the performance in respective rounds

What do companies look for?

Soft Skills: Good communication skills Team work Generally, in interviews asking right questions reflect these abilities Participation in extra-curricular activities like sports, shows team work

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Practicality and effectiveness: Modularity: Can you break the problem into smaller modules which could be easily understood and helps in solving the problem Feasibility: Are you making assumptions which are making sense? like assuming there are 10 states in India, only 10 universities in the country, doesn’t bode well in front of interviewer

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BUSINESS FRAMEWORKS

BUSINESS FRAMEWORK 1: PESTEL To guage the MACRO ENVIRONMENT in which the company is operating. It includes an indepth analysis of the factors impacting the firm and its competitve environment.

Environmental Factors Weather, climate associated factors.

change,

and

their

Political Factors Public policies, Taxes, Fiscal Political climate, FDI policy etc.

Socio-Cultural Factors policies,

Societal values, attitudes, culture, lifestyle, demographic factors etc.

PESTEL ANALYSIS Legal Factors

Technical Factors

Laws & Regulations like labor laws, antitrust laws, health & safety etc.

Technical changes and developments, genetic engineering, patents & copyrights

Economic Factors Interest rates, inflation, unemployment rate, exchange rate, stock & bond market.

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BUSINESS FRAMEWORK 1: PESTEL ITC Example

Environmental Factors Increased rules and regulations in packaging and operations of the FMCG industry. Water re-usage facilities rainwater harvesting and treatment facilties

Political Factors

Socio-Cultural Factors

High taxation on cigarettes, advertisement ban on cigarettes, 100% FDI allowed in food processing, production linked scheme in FMCG sector

Increased consumption of packaged foods, increased awareness for ill-effects of tobacco consumption, status symbols works in favour of ITC hotels

PESTEL ANALYSIS

Legal Factors

Technical Factors

Cigarettes are highly legalised and most debatable sector in the country , health & safety issues in the business

E-Choupal to target agri-tech startups, growth in adoption of digital supply chains, operational & logistical efficiency in manufacturing facilities

Economic Factors India among top 3 tobacco producers in the world, 77% of ITC cigarettes in India, FMCG is the largest sector in India

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BUSINESS FRAMEWORK 2: PORTER'S FIVE FORCES To guage the COMPETITIVE ENVIRONMENT and the MARKET FORCES in the industry landscape. It helps to determine if the particular company or the industry is attractive or not.

Bargaining Power of Suppliers

Bargaining Power of Buyers A buyer group is powerful if: It is concentrated or purchase large volumes as a % of seller’s sales Undifferentiated products Low switching costs Buyers pose a credible threat of backward integration The industry's product is unimportant to the quality of the buyer's products or services Buyers are fewer in number as compared to manufacturers.

Buyer profits

A supplier group is powerful if: There are fewer substitutable products The industry is not an important customer of the supplier group The supplier group is an important input to the buyer’s business The supplier’s products are differentiated and have high associated switching costs The supplier group poses a credible threat of forward integration

Intensity of Rivalry Rivalry among existing competitors increases if: Numerous or equally balanced competitors exist Industry growth is slow Fixed costs are high Undifferentiated products and low switching costs Brand identity

Threat of Substitutes Substitute products that deserve the most attention are those that: Compete in price with the industry’s products Are produced by industries earning higher products Switching costs

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Barriers to Entry There are a number of factors that determine the degree of difficulty to enter an industry: Economies of Scale Product differentiation Capital requirements Access to distribution channels Cost advantages independent of scale (unique access to raw materials) Propriety technologies Relationship with suppliers of raw materials Geographical presence Time compression diseconomies Government regulations Legal or regulatory barriers Strong brand identity Trade Policies

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BUSINESS FRAMEWORK 2: PORTER'S FIVE FORCES ITC Example

Bargaining Power of Suppliers - Low

Bargaining Power of Buyers - Medium to High

Easy to switch between products of FMCG category Strong brand image in Cigarettes, Aashirvaad atta, Classmate, Savlon etc.

Brands run on customer loyalty and hence brand runs on premium in these segments Market potential of the FMCG and tobacco business is higher and hence plenty of customer available

Less concentration of suppliers Direct distribution has reduced bargaining power of supplier Switching costs are low since product differentiation is low, ITC uses standardised raw materials for production Plenty of suppliers available for the same type of materials

Intensity of Rivalry - High Enough varieties & product differentiation available in the market Strong R&D, marketing strategies adopted by rivals to gain market share Substitutes available for almost all products in each category

Barriers to Entry - High

Market filled with brands like HUL, P&G, ITC which have strong brand image creating disadvantage for any outside entry Massive capital investment required in the sector Entry in tobacco sector is difficult due to high regulations and increased awareness regarding the downside of the sector Industry works on a distributor model and hence quality distribution channel is very difficult to achieve

Threat of Substitutes - High Herbal products from Himalaya, Patanjali, HUL and P&G etc.

ITC Hotels - Oberoi Groups, Leela Hotels, Taj Hotels Tobacco - Kothari products, Godfrey Phillips, VST Industry, Golden Tobacco Company

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BUSINESS FRAMEWORK 3: BCG MATRIX The BCG growth-share matrix is a product portfolio planning framework that helps companies decide how to prioritize their different businesses. Each quadrant in the matrix represents a ceratin degree of profitability. The framework allows better allocation of resources & capital to generate most value.

High Growth Rate

STAR

Companies should invest in or discard these “question marks,” depending on their chances of becoming stars.

These are generally new products.

Companies should significantly invest in these “stars” as they have high future potential.

DOG

CASH COW

Companies should liquidate, divest, or reposition these “pets.”

These products are generally considered as failures.

High Market Share

Low Market Share

QUESTION MARK

Companies should milk these “cash cows” for cash to reinvest.

Funds brought from here can be used for STARS.

Low Growth Rate

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BUSINESS FRAMEWORK 3: BCG MATRIX ITC Example

High Growth Rate

STAR

FMCG Food processing Personal care Lifestyle

Hotels Agri business Paperboard & Packaging products

DOG

CASH COW

Infotech

High Market Share

Low Market Share

QUESTION MARK

Cigarettes Tobacco products

Low Growth Rate

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BUSINESS FRAMEWORK 4: SWOT ANALYSIS

INTERNAL ENVIRONMENT

A planning process for companies to analyse their internal and external environments while making business decisions. It helps to understand challenges and new pursuits.

HELPFUL

HARMFUL

Strength

Weakness

Internal factors that give an edge

Internal factors that are a weak link

to the firm in the industry

for firm's competitiveness

Brand Reputations, Resources and

High attrition rates, lesser returns,

Capabilities, Economies of scale

etc.

and scope etc.

EXTERNAL ENVIRONMENT

Opportunities

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Threat

External factors and conditions

External factors and conditions

that are favourable for the firm in

that are not favourable for the firm

achieving its goals & missions

in growth & profitability

Market trends, economic trends ,

New legislations, restrictions, etc.

growth opportunities, etc

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INTERNAL ENVIRONMENT

BUSINESS FRAMEWORK 4: SWOT ANALYSIS ITC Example

HELPFUL

HARMFUL

Strength

Weakness

Strong brand image

High dependence on tobacco

Well diversified range of products

segment

& services

Strong correlation of the brand

Increasing YoY revenues

with the cigarette business

Low debt

Hotel, FMCG business under

High CSR presence

pressure

EXTERNAL ENVIRONMENT

Opportunities

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Threat

Growth opportunity due to

Increasing competition in the hotel

acquisitions like Savlon from J&J

industry due to entry of foreign

Increasing purchasing power of

players

middle class segment in India

Increasing rules & regulations for

Rising consumption in rural India

tobacco & packaging industry

Growth in hygiene, perosnal care,

Intense competition in FMCG

beauty products

sector

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BUSINESS FRAMEWORK 5: FIVE C's To evaluate overall aspects of the business model, giving a high level view of the business, hence helping in decision making process.

Company What is the business Growth Drivers Segments Business Model Recent Trends

Context

Competition

Landscape of Business Operations

Major Players Market Share Major Competencies Value Proposition

5 C's

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Collaborator

Customer

Supply chain robustness of the company Upstream & Downstream suppliers

Demographics Customer attitude Customer Segmentation Brand Image Characteristics of Product

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BUSINESS FRAMEWORK 5: FIVE C's ITC Example

Company Operates in tobacco, hotels, FMCG, stationery, agri product Increase in disposable income, brand image , and operational efficiency are some growth factors.

Context

Competition

Covered in PESTEL analysis

HUL, Taj Hotels, Godfrey, Colgate Palmolive etc are major competitors

5 C's

Collaborator

Customer

Reduction in dependency on limited suppliers by diversification Local procurement for continued supply 20+ distribution centers in India

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Trust built in Aashirvaad atta, customer loyalty in GoldFlake.

Target segment from 1-5yrs in baby care products Strong brand image

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BUSINESS FRAMEWORK 6: BUSINESS MODEL CANVAS To understand the overall business model of a company. It offers a visual description of the firm's elements or a product's value proposition.

Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments

What are the key

What are the everyday

What are the products

How does the company

What are the customer

partners that

activities for running

and services offered by

establish and sustain

segments which the

motivates them &

the organization

the company

such relationships

company targets for its

supports them in their

products and services

business Who are the key suppliers What are the materials procured from them

Channels

Key Resources What are the key

What are the channels

resources consumed

used by the company

for the product

to communicate across

manufacturing and

the value chain

daily operations of the company

Cost Structure

Revenue Streams

What is the cost structure of the company - is it fixed or variable?

What are the major and minor activities through which the company

What are the major cost intensive activities and resources

earns its revenues

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BUSINESS FRAMEWORK 6: BUSINESS MODEL CANVAS ITC Example

Key Partners

Key Activities

Value Propositions

Customer Relationships

Customer Segments

Major Joint Partners:

Product Development

Hotel Business: ITC

Marketing Campaigns

B2B customers

ITC Essentra Ltd.,

Marketing &

hotels

Advertisements

Age group: 5-60 years

Gujaral Hotels,

promotional activities

FMCG: Foods, Personal

Customer Safety

Location: Pan India

International House

R&D activities

care. education &

CSR activities

Gender: Across all

Ltd.

CSR activities

stationary, Lifestyle

Subsidiaries: ITC

genders

retailing, agarbattis

Infotech, Russell Credit

etc.

Channels

Ltd., etc.

Key Resources

Investors

Tangible Resources:

services, e-choupal,

Distribution networks

Suppliers

Financial , intellectual,

ITC analytics

ITC app

Distributors

Retail stores

Agri: Commodities &

raw material like

ITC brand world

Customers

wheat, paper, tobacco

Information

Employees

etc.

Technology

Intangible Resources: Human resources, skills etc.

Cost Structure

Revenue Streams

Cost of raw materials

Cigarette business

Employee benefit expenses

Other FMCG business

Stock-in trade purchase

Agri business

Finance Cost

Hotel business

Depriciation cost

Paper & Packaging business

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BUSINESS FRAMEWORK 7: Ansoff Matrix

PRODUCT EXISTING

NEW

Market Penetration

Product Development

EXISTING

Concept of selling existing products in existing markets It involves increasing market share This can be done by selling more

MARKET

products/services to established customers or by finding new customers within existing markets.

Developing new products in the existing market It can involve the modification of an existing product so that it can appeal more to the already existing market

NEW

Market Development

Diversification

It involves finding new markets for

It involves reaching new markets

the existing products

with new products at the same

A basic assumption is that the

time

existing markets have been fully

It can be of 2 types - related

exploited

diversification & unrelated diversification

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BUSINESS FRAMEWORK 7: Ansoff Matrix ITC Example

EXISTING

NEW

Market Penetration

Product Development

Discount schemes on the products Augmented promotions Diverse product portfolio creates high barriers to entry

ITC introduced ready-to-eat gourmet cuisine ‘Kitchens of India’ which specialises in bringing to life age-old Indian dishes from across the country. ITC developed this new

MARKET

EXISTING

PRODUCT

product for an existing RTE market

NEW

Market Development

Diversification

ITC's Agri Business Division, has e-

Diversification of ITC into industries

Choupal, an initiative to link

like hotels, tobacco, technology etc

directly with rural farmers via the

has proved to be a success for it as

Internet for procurement of

a conglomerate

agricultural and aquaculture products. This will help develop the market in the rural sector

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BUSINESS FRAMEWORK 7: 4 P's Products

Define the product and its quality to introduce to the customer Who needs it & why?

Differentiation from the competitor

Price

Promotion

Amount that the consumers are willing to pay for the product Consideration for real and perceived price while also considering supply costs, seasonal discounts, competitors' prices, and retail mark-up

To communicate to the customers about the product Encompasses advertising, public relations, and the overall media strategy for introducing a product.

Place

Determines where the product should be made available: brick & mortar and/or online platforms The goals is to make the product available to right customer segment by focusing at the right place

4 P's ITC EXAMPLE

Products

Dynamic business and product mix FMCG, Agri-business, Hotels, Information technology, paperboards and packaging Product length & depth in each segment

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Price

Promotion

ITC has different price points because of its diversified product mix Covers all price brackets, with a majority in premium segment

ITC promotes its product through Print, television and radio Different brands have different brand ambassadors ITC launches digital programs for increased participation

2022-2023

Place

Unmatched distribution network Products reach to 4 million retail stores in India E-choupals ensure timely supply of high quality raw materials

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INDUSTRY SNAPSHOTS

INDUSTRY SNAPSHOT: Aviation Value Chain Inbound Aircraft Lease Fuel Route Selection Facilities Planning Flight & Support crew

Operations Ticket & Gate counter Aircraft operations In-flight services Cargo handling

Outbound Luggage delivery Cab and hotel reservation Connecting Flights Baggage system

Major Players Marketing Advertisements Travel Agencies E-commerce platforms Frequent Flyer Group sales

Customer support Lost baggage Service

Key Growth Drivers Growth

Cost

Rapid Urbanisation

Passenger services

Fuel

Government support

In-flight sales

Maintenance

Cargo business

User Charges

Tour packages

Rentals (fleet & equipment)

Opening up of tourism sector post Covid-19

Operating Metrics Departure Punctuality Seat Load Factor Available seat kms Ancillary revenue per passenger Revenue and EBITDAR

Indigo

25,930

Air India

9,557

Spicejet

6,603

Vistara

5,226

Air Asia

1,887

Union Budget 2022

Rs. 10,667 Cr. to Ministry of Civil Aviation,Rs. 601 Cr. for UDAN (Regional Connectivity Scheme)

Biometric Boarding

Plans to introduce biometric boarding using facial technology. Project in testing phase.

Planned investment

Planning to invest USD 1.83 bn in airport infrastructure and navigation services by 2026

Activity in AAI airports (Share in % FY '21)

Key Developments Low-cost Carriers (LCC) are driving growth in the airline industry Domestic traffic carried by LCCs has grown at a CAGR of 22.8%, thereby increasing their market share by 84.4% in FY 2020 Entry of Akasa Air, potential relaunch of Jet Airways, takeover of Air India by the TATA group and chances of merger among TATA airlines will change the competitive landscape of industry

Facts (FY '22)

Despite rising fuel cost, depreciation of INR against USD and Russia Ukraine war, the Indian Aviation sector is set to recover fully by mid-2022 from the pandemic effects.

Air passenger traffic: ~189 mn No. of aircrafts: 712 Freight Handled (MMT): 3.14 No. of airports: 129

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Revenue (Rs. Cr.)

Government Initiatives

Revenue

Private sector investment

Company

Services

As per a report from ICRA, the Indian aviation industry's FY '23 net loss is pegged at Rs. 15,000-17,000 cr. as compared to Rs. 23,000 cr. in FY '22.

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INDUSTRY SNAPSHOT: Automobile Value Chain R&D and Raw material supply Product innovation Procurement Supplier management Warehouse management

Auto Components Electronics Primary production Suspension Braking system

Product Assembly

Major Players Logistics & Transportation

Secondary Production (welding, machining) Body/ Chassis Quality Testing

Warehousing Distribution Dealership Management

Marketing & Services Advertising, promotion Insurance Financing After-sales services

Key Drivers Growth

Cost

Low cost advantage

Automobile sales

Raw materials

Policy support

After-sales service

Employee cost

Financing services

Advertisements

Used cars sales

R&D expenses

Rising demand for alternate fuel vehicles

Operating Metrics

Market segment

Maruti Suzuki

43%

Passenger Cars

Hero MotoCorp

35%

2-Wheelers

Bajaj Auto

35%

3-Wheelers

TATA Motors

42%

Commercial vehicles

Union Budget 2022

Introduction of battery-swapping policy to make EVs more viable for potential customers

Bharat NCAP

Announced in Feb 2022, plans to roll out India's own vehicle safety assessment programme

PLI Scheme

Scheme worth Rs. 25,938 Cr. launched in Sep 2021 for automobile and auto components

Major Segments (FY '22) in %

Key Developments GST on electric vehicles reduced from 12% to 5% and on chargers/ charging stations has been reduced from 18% to 5%

Utilization rate Manufacturing cycle time Defective Units/Recall rates Inventory Turnover ratio Average downtime

Tata Motors has signed MoU with the Gujarat government for the potential acquisition of Ford India’s Sanand plant in May 2022

Facts (FY '22)

MG Motors, owned by China's SAIC Motor Corp, announced plans to raise USD 350-500 mn in private equity in India to fund its future needs, including EV expansion, in Mar 2022

Market size: ~ 22.9 mn vehicles Expected growth rate (CAGR): Vehicles sold in India: ~17.5 mn FDI allowed: 100%(automatic route)

ConQuest, IIM Shillong

Market share

Government Initiatives

Revenue

Expanding R&D hub

Company

TVS Motor Company acquired a 75% stake in the e-bike maker Swiss e-Mobility Group (SEMG) at a valuation of USD 100 mn in Jan 2022

2022-2023

Page31 7 Page

INDUSTRY SNAPSHOT: Banking Value Chain Sales

Marketing Advertisement Branding Media Promotions

Offerings Acquisition Retention

Major Players

Products Funding Deposits & Securities Investing Credit, securities & financial products

Services Account Management Asset Management IPO Issuance

Revenue

Payment Clearing Settlement Trading

Banks

Assets'22 (in cr) ₹4,987,597 ₹2,122,934

SBI HDFC ICICI

₹1,753,000

Axis

₹1,175,178

Kotak Mahindra Indusland

₹479,000

Yes bank

₹307,057 ₹273,543

Government Initiatives

Key Drivers Growth

Transactions

Cost

Increasing working pop. & income

Interest on Lending

Interest expend

As per Union Budget 2021-22, the government will disinvest IDBI Bank and privatise two public sector banks & has carried out consolidation, reducing the number of Public Sector Banks by eight.

Economic recovery

Investment activities

Labour expenses

In budget' 2022-23, India has announced for central bank digital currency (CBDC) which will be possibly know as Digital Rupee

Innovation & Tech

Deposits with RBI

Advertising

Operating Metrics

National payments corporation India (NPCI) plans to launch UPI lite for offline UPI services for digital payments (upto Rs. 200 (US$ 2.67))

SCBs shares (in credit)

Revenue & Expenses Operating Profit Assets under Management (AUM) % of AUM above benchmark ROE & ROA Average time to close issues New account setup error rate Client survey score Sales per Branch AUM per employee Number of workflow process implemented

ConQuest, IIM Shillong

2022-2023

Market Size & Forecast

Facts

Total assets across the banking sector (including public and private sector banks) increased to US$ 2.48 trillion in FY21. During FY16-FY21, bank credit increased at a CAGR of 0.29%.

The Indian banking system consists of 12 public, 22 private, 46 foreign, 56 regional rural , 1485 urban cooperative & 96,000 rural cooperative banks.

According to India Ratings & Research (Ind-Ra), credit growth is expected to hit 10% in 2022-23 which will be a double digit growth in eight years.

The total number of ATMs in India reached 213,145 out of which 47.5% are in rural and semi urban areas.

Page 32

INDUSTRY SNAPSHOT: Ecommerce Value Chain Inbound Logistics Procurement of Raw material Inventory Management Storage

Outbound Logistics

Operations Product manufacturing/ packaging Warehousing Order management

Order fulfilment activities Delivery Partnerships

Major Players Marketing & Sales

Service

Multi-channel marketing Promotions Flexible payment methods

Complaints & feedbacks Returns & exchanges Quick support services

Revenue'20(in mn)

Company Amazon

3,393

Flipkart Snapdeal

2,896 132

PayTM Myntra

118

Infibeam Nykaa

44

62 15

Government Initiatives

Key Growth Drivers

Under Open Network for Digital Commerce (ONDC) - Equal opportunity to all, by setting protocols for cataloguing, vendor & price discovery

Growth

Revenue

Cost

Population & demand

Commission models

Ads & promotion

Internet penetration

Delivery Charges

Logistics

Government policies

Subscription fee

Technology

Surge in suppliers across segments

Amendments in Equalisation Levy Rules, 2016: Foreign firms operating ecommerce in India, are mandatorily to have PAN.

Afliliate Revenue

Tech Investment

Rs. 1500 cr. budget FY22 to incentivize online payments & initiatives to boost broadband penetration in rural India

Operating Metrics

100% FDI allowed in B2B & market place models

Major Segments

Sales conversion rate Average order value Customer lifetime value

Indian E-commerce sales expected to grow by 21.5% to reach the value of INR5.5 trillion ($74.8bn) in 2022

Customer acquisition costs Shopping cart abandonment rate Returning customer rate Bounce rate Net promoter score Click Through Rate Store sessions by Traffic source Average inventory sold per day

ConQuest, IIM Shillong

Market Size & Forecast

E-commerce payments in India is forecasted to rise at a compound annual growth rate (CAGR) of 18.2% between 2021 and 2025, to reach INR8.8 trillion (S$120.3bn) in 2025.

2022-2023

Facts Indian market is the 6th biggest E-commerce market in the world 60% of online purchases happen during business hours 60% of online purchases are made on Cash on Delivery

Page 33

INDUSTRY SNAPSHOT: Iron & Steel Value Chain Raw Material Iron ore– haematite Coal Coke Limestone Scrap

Steel Production

Iron Production Small component as plant is set close to limestone quarry Rail/roadways used for other materials

Oxygen Furnace: Molten iron and oxygen Electric Arc Furnace:Steel making from scrap

Global Scenario

SCM & Logistics

Pricing of all products Sales team efficacy Customer Service Support Tools

Inbound, outbound Demand planning Service & Delivery Warehouse Mgmt.

Ocean/Rail/Road

Growth

Revenue

Cost

Economic Growth

Construction

Raw Material Cost

Policy support

Sale of By-Products

Salary & Wages

Rising HDI

Pallets

Power and Fuel

Steel for capital good

Disruptions

Finance costs

Emerging Trends

Market Size

~1951M tonnes (2021)

Growth rate

~3.9% CAGR (2021-31)

China, India, Japan, USA Baowu Group, Nippon Prominent Players Key Geographies

Segments

Construction, Capital Goods, Automobile

Govt policy change

Industry Dynamics

Increasing consolidation & global player entry Expansion and upgradation of facilities by private players to reduce import reliance A capacity of 300 MTPA is targeted by 2030, requiring an investment of $156 billion by 2030-31

Focus

PM Awas Yojana to boost sector growth and Steel Scrap Policy to reduce import. 30% export duty to ensure internal supply

Market Size & Forecast Industry is capital intensive. Rs 7000 Cr required for 1 tonne capacity (Greenfield)

Consolidation of players: Strategic objectives related to M&A’s are to grow at a rate faster than an organic growth rate, Growth Opportunities: Efforts by Govt to make sector efficient & competitive.

Investment increase: Expansion and upgradation of facilities by private players to reduce import reliance Import & Export: Steel Scrap Policy to reduce import. 30% export duty to ensure internal supply

ConQuest, IIM Shillong

Fact

Trends

Key Growth Drivers

Increasing Investment

Determinent

Sales

For 1 tonne steel produced, 3 tonnes of raw material transportedexpensive, arduous Environmental concernsSecond biggest consumer of electricity. High Carbon Footprint

2022-2023

Facts On average, 1.83 tons of CO2 is emitted for every ton of steel produced; over 3,3 million tons annually to global emissions.

As of April 2022, India was the world's secondlargest producer of crude steel, with an output of 10.14 MT

Page 34

INDUSTRY SNAPSHOT: FMCG Value Chain R&D Developing New Products Improvements /variants in existing products

Procurement

Manufacturing

Raw materials sourcing Quality tests Release & storage

Processing Packaging Quality testing Storage inventories

Major Players Distribution Distribution stock house Channel distributor, retailer & ecommerce

Sales & Marketing Promotions Advertisement Branding Complaints/ feedbacks

Company

Market Share

ITC HUL

14% 12%

Marico

5%

Patanjali Ayurved

4%

Nestle

3%

Britannia

3%

Other

59%

Government Initiatives

Key Growth Drivers Revenue

New Products

Retailers (GT & MT)

Raw material & production

Internet penetration & Higher income

E-commerce

Distribution

Rising per capita income

In FY 2021-22, the government approved Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)

D2C platform

Promotions

In Nov' 2021, Flipkart signed an MoU with the Ministry of Rural Development to empower local rural businesses & SHGs

Operating Metrics

Cost

In budget 22-23, Rs. 1,725 crore (US$ 222.19 million) has been allocated to the Department of Consumer Affairs

Growth

In budget 22-23, Rs. 215,960 crore (US$ 27.82 billion) has been allocated to the Department of Food and Public Distribution

Major Segments

Out of Stock Rate Delivery on time & in full Average time to sell Sold products within freshness date Cash to cash cycle time Supply chain costs Supply chain costs v/s costs Carrying coast of Inventory On shelf availability Margin by product category

ConQuest, IIM Shillong

2022-2023

Market Size & Forecast

Facts

The revenue CY of FMCG industry India is estimated to be US$ 110 billion

The FMCG sector accounts for the fourthlargest sector in the economy

The FMCG market in India is expected to increase at a CAGR of 14.9% to reach US$ 220 billion by 2025, from US$ 110 billion in 2020 & processed food market to US$ 470 billion by 2025, from US$ 263 billion in 2019-20

FMCG includes consumer products & the import-export market.

Asia drives growth for Global FMCG with China, India & Indonesia are the biggest ones.

Page 35

INDUSTRY SNAPSHOT: Healthcare Value Chain Appointment Booking Walk-in Traditional Scheduling Scheduling via apps like Practo

Hospital Visit Primary/Second -ary/ Tertiary Hospital In-patient care Out-patient care

Major Players

Diagnostics

Treatment

Medical History Screening based on patient symptoms Testing

Medical Procedure Clinical Support Equipment & Supplies

PostTreatment Billing Monitoring & Discharge Follow-up visits

Rising medical tourism

Cost

Consultation charges

Premise & Equipment

Robotic automation

Room & Facilities charges

Maintenance & utilities

Increasing penetration of insurance

Pharmacy

Staff Salaries

Union Budget 2022 World Bank Loan eSanjeevani Telemedicine

Sector Growth Trend (USD Bn)

62,871

Max healthcare

42,659

Fortis Health

22,946

Narayan Hrudalay

14,285 12,647

Ayushman Bharat was allotted Rs. 6,412 Cr. & National Health Mission allotted Rs. 37,000 Cr. World Bank approved USD 1 bn loan towards Ayushman Bharat Health Infrastructure Mission Enables patient-to-doctor consultations home & doctor-to-doctor consultations

from

Key Developments Blackstone, CVC, Temasek & Max are in the fray for potential take over of Care Hospital (15 hospitals in India & 2 in Bangladesh with 2,400 beds) at a valuation of ~ Rs. 7,500 cr.

Average revenue per occupied bed Average length of stay Bed Occupancy Rate Equipment Utilization Average cost per discharge

In Aug 2022, the government identified 139 drug formulations on which trade margin rationalization (TMR) will be fixed between 33-50% on price to distributors in order to reduce drug prices

Facts (FY '22)

In Aug 2022, Ontario Teachers' Pension Plan Boar acquired a significant majority stake in Sahyadri Hospitals Group, the largest private hospital chain in Maharashtra for ~ Rs. 2,500 Cr.

Expenditure as % of GDP (FY 21): 2.1 Forecasted expenditure as % of GDP (FY 25): 2.5 No. of doctors (Nov '21): 1.3mn No. of medical colleges (Jul '22): 612

ConQuest, IIM Shillong

Apollo Hospital

Government Initiatives

Revenue

Operating Metrics

Market Cap (Rs. Cr.)

Aster DM

Key Drivers Growth

Company

US PE major KKR sold its entire 27% stake in hospital chain Max Healthcare and raised around Rs 9,000 crore from the stake sale which took place via block deal in 3 tranches in Aug 2022

2022-2023

Page 36

INDUSTRY SNAPSHOT: Hospitality & Tourism Value Chain Inbound Logistics Food & beverage Fuel Essentials

Operations Reservations Services and feedback Laundry operation Revenue management Staff training

Guest Services CheckIn/Check-Out F&B services Laundry services Transportation services

Major Players Marketing & Sales Advertisements Promotions & discounts Loyalty programs Tour packages

Growth

Revenue

Cost

E-Visa Facility

Room Tariffs

Employee Salaries

UDAN Scheme

Food & Beverages

Utilities

Reduction in GST

Theme Parks

Power and Fuel

Increase in Income levels

Events & Others

Consumable Materials

Market Share

Marriott

23%

IHCL (Taj Hotels)

16%

Hyatt Hotels

9%

EIH (Oberoi)

8% 45%

Others

Campaigns such as Swadesh Darshan, a theme-based tourist circuit was launched to harness the tourism industry’s potential 100% FDI allowed in B2B & market place models The government introduced a scheme to boost the tourism sector by providing one-month free tourist visa to 5 lakh tourists until March 31, 2022 Rs. 2,400 crore (US$ 309.13 million) has been allocated to the Ministry of Tourism which is 18.42% higher than the allocation for FY 2021-22.

Industry Dynamics

Market Size & Forecast Indian Hospitality sector has a total market size of $50 billion with expected growth rate of 11%.

Sales conversion rate Average Ticket Size RevPAR– Revenue per Available Room ARR- Average Room Rates OR – Occupancy Rates ARN- Average Room Nights ARN - Available Room Nights Click Through Rate Prepaid Levels Sentiment Score RevPar Yield

ConQuest, IIM Shillong

Online Travel Aggregators (OTAs) Direct (Website/ app/ telephone) • Walk-ins

Company

Government Initiatives

Key Growth Drivers

Operating Metrics

Distribution

The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$ 75 billion International tourist arrivals are expected to reach 30.5 million by 2028.

2022-2023

Facts The United Nations World Tourism Organisation selected Pochampally in Telangana as one of the best tourism villages India was globally the third largest in terms of investment in travel and tourism

Page 37

INDUSTRY SNAPSHOT: Information Technology Value Chain Operations Set up Infrastructure setup Talent Acquisition Employee Training Talent retention Visa Handling

Customer Acquisition Pitching & acquiring new clients Cross-selling products to existing clients

Major Players Service Delivery

CRM Understanding client requirements Communication to software team Conflict resolution

Product Development Live testing at client's end Bug fixes Full deployment

Provide software update and IT support Maintain relationship with clients

Key Drivers Growth

Cost

Low cost advantage

Personnel worked

Employee salaries

Healthcare

Hourly Rate

Admin costs

AI/ML capabilities

Utilization ratio

Selling expenses

Surge in technology driven culture

Hardware Sale

Union Budget 2022

TCS

1,91,754

Infosys

1,21,641

HCL

85,651

Wipro

79,312

Redington

62,644

Other costs Eg: Leases

Allocation to the IT & telecom sector of Rs. 88,568 Cr.

STP Scheme

100% export-oriented scheme for export and development of computer software

Cyber Lab

Plan to build a cyber-lab for 'Online Capacity Building Programme on Cyber Law '

Major Segments

Key Developments Ranked 2nd in FDI inflows between April 2000-March 2022 worth USD 85.5 Bn. Computer software and hardware make up 14.5% of the cumulative FDI inflows.

Budget variance Resource Cost Maintenance & support expense Scheduling variance Mean time to Resolve the ticket

Union Bank of India launched a Metaverse Virtual Lounge and Open Banking Sandbox environment in partnership with Tech Mahindra in July 2022.

KPIs

HCL Technologies to acquire Swiss digital wealth management firm Confinale AG for USD 53.9 mn as announced in May 2022.

Total active clients Total Contract Value Attrition Rate Bench Strength

ConQuest, IIM Shillong

Revenue (Rs. Cr.)

Government Initiatives

Revenue

Operating Metrics

Company

After-sales service

Larsen and Toubro Infotech Ltd (LTI) and Mindtree Ltd agreed to merge to form India’s 5th most valuable software company in May 2022.

2022-2023

Page 38

INDUSTRY SNAPSHOT: Insurance Value Chain Product Development Customer insights Design & Development Products & services

Distribution & Sales Channel management Lead generation Distribution management

Marketing Promotions Advertising Referals

Major Players Underwriting Underwriting Assesment Risk Management Asset Management

Growth

Revenue

Cost

Increase per capita GDP

Underwriting

Claims

Digital Disintermediation

Investment Income

Investment & Ops. expense

Low Penetration

Cash value Cancellations

Acquisition & general expense

Star Health United India

18% 16% 11%

National Insurance Oriental Insurance HDFC Ergo General Others

10% 8% 6% 31%

In 2022, the Indian government plans to sell a 7% stake in LIC for Rs. 50,000 crore (US$ 6.62 billion). This is the largest initial public offering (IPO) in India.

India's Insurance Regulatory & Development Authority (IRDAI) has announced the issuance, through Digilocker, of digital insurance policies Under Union Budget 2021, fund of Rs. 16,000 crore (US$ 2.20 billion) has been allocated for crop insurance scheme In August 2021, the Parliament passed the General Insurance Business (Nationalisation) Amendment Bill

Major Segments

Qoute rate Quota rate

Market Size & Forecast India’s insurance penetration was pegged at 4.2% in FY21, with life insurance penetration at 3.2% and non-life insurance at 1.0%. In terms of insurance density, India’s overall density stood at US$ 78 in FY21.

Contract rate Number of referrals Blind rate Percentage Pending Sales Growth rate New Policies per Agent Retention rate Police in-Force per Agent Average time to settle a claim

ConQuest, IIM Shillong

Fraud Management Claims payout Adjudication CRM

Market Share

Company

New India Assurance

Government Initiatives

Key Growth Drivers

Operating Metrics

Policy admin. & Claims

The life insurance industry is expected to increase at a CAGR of 5.3% between 2019 and 2023

2022-2023

Facts India is the secondlargest insurance technology market in Asia-Pacific It accounts for 35% of the US$ 3.66 billion insurtech-focused venture investments made in the country.

Page 39

INDUSTRY SNAPSHOT: Power & Renewables Value Chain Project Planning Feasibility Study Infrastructure Planning Environment impact assessment

Manufacturing & Installation Mining Component manufacturing Assembly Site Preparation

Generation Conversion of raw material

Major Players Transmission Grid connection Transmission lines Substation transformers

Distribution Distribution lines connecting consumers to grids Billing and collection

Key Drivers Growth

Cost

Growing population

Plant load factor

Fuel costs

High demand

Contracted rate

Shift towards renewables resources

MW distributed

NTPC

1,32,669

Adani Group

31,686

Tata Power

42,815

Torrent Power

14,492

JSW Energy

8,736

Union Budget 2022

Allocation of Rs. 19,500 Cr. for the PLI scheme of solar modules manufacturing

Transmission costs

Replacement of thermal units

Identification of 81 thermal units generation to replace coal with renewables by 2026

Generation facility investments

Priority Lending

Major Segments

Increase loan limit for renewables sector under priority lending from current limit of Rs. 30 Cr.

Key Developments 2.82 crore households electrified under Pradhan Mantri Sahaj Bijli Har Ghar Yojana 'Saubhagya' with an aim to achieve universal household electrification.

Plant Load Factor Availability factor Performance Ratio Operating Cash flow Return on Investments

Energy sector projects with capital expenditure of Rs. 111 lakh crores (USD 1.4 trn) has been approved under the National Infrastructure Pipeline (account for highest share of 24%)

Facts

The Union Power Ministry said the peak power demand deficit stood at 0.4% in 2020-21, compared to 16.6% in 2007-08 and 10.6% in 2011-12.

49.5% of the installed generation capacity in India comes from the Private Sector players Peak power demand in 2022 - 210 GW

ConQuest, IIM Shillong

Revenue (Rs. Cr.)

Government Initiatives

Revenue

Operating Metrics

Company

The Government of India is preparing a 'rent a roof' policy for supporting its target of generating 40 gigawatts (GW) of power through solar rooftop projects by 2022.

2022-2023

Page 40

INDUSTRY SNAPSHOT: Oil & Gas Value Chain Exploration

Production

Identification of onshore/off-shore site Seismic surveys to assess potential

Project sanctioning Create infrastructure Strike ‘First Oil’

Major Players Storage

Transportation Crude is transported by tankers, pipelines, trucks, and railroads.

Crude: Storage at ports in large tanks Gas: Preserved in reservoirs (artificial or natural)

Refining and Marketing Refines raw material: Petrol, Diesel & LPG Distil & convert

by BP

Key Drivers Growth

Cost

Economic growth

Crude Oil

Employee salaries

Petrochemical

Natural Gas

Transportation costs

BS VI

Petrochemical

Selling expenses

Technological advancements

Others (LPG, Naptha, etc)

Exploration cost

Supportive FDI

RIL

28% 27%

BPCL HPCL

11%

NEL

8%

CPCL

4%

Other

15%

6%

Allowed 100% Foreign Direct Investment under automatic route.

Growing Demand

Commercialise 50% of its SPR to raise funds & build additional tanks to offset high prices.

Policy Support

Customs duty on certain critical chemicals were reduced.

Major Segments

Industry-Sub Sectors Upstream: Also known as the sector for exploration and production. Involves looking below the surface of the earth or in the water, drilling exploratory wells, assessing their economic potential, and operating wells to bring oil and gas to the surface Includes government-controlled businesses, integrated oil companies, and private players.

High Refining capacity Rapid Expansion Policy Support Supportive FDI guidelines Increasing energy demand

KPIs

Midstream: Involves marketing, storage, and transportation of natural gas and crude oil. Oil tankers, trains, barges, trucks, and pipelines are all forms of transportation.

Lease Operating Expenses Reserve Replacement Ratio (RRR) Barrels of Oil Equivalent (BOE) Natural Gas Equivalent (Cfe)

ConQuest, IIM Shillong

Market Share

IOL

Key Developments

Revenue

Market Trends

Company

Downstream: Includes refining of petroleum crude oil and processing & purifying of raw natural gas to derive thousands of products (petrol, kerosene, diesel, waxes).

2022-2023

Page 41

INDUSTRY SNAPSHOT: Retail Value Chain Inbound Logistics

Sourcing Vendor management Demand forecasting Price & trend forecasting

Network/route optimization Carrier provider Cold chain management

Inventory Storage & warehousing Allotment & scheduling Mechandising

Major Players Outbound Logistics Channels of transport Route analysis

Revenue

In-store replenishment Salesforce management Loyalty programs & discounts

Company

Revenue'22 (in cr)

Reliance Retail Ltd. Future Retail Ltd.

₹ 1,30,566

Avenue Supermart

₹ 22,225 ₹ 21,137

Shoppers Stop

₹ 3,487

Trent Ltd. V Mart Retail

₹ 1,674

₹ 2,708

Government Initiatives

Key Growth Drivers Growth

In-store Operations

Cost

Govt. announced 100% FDI in single-brand retail & 51% FDI in multi-brand retail under the automatic route.

Brand consciousness

Own brands & white labeling

Retail lease

Foreign Direct Investments

Loyalty & reward programs

In budget 22-23, Rs. 215,960 crore (US$ 27.82 billion) has been allocated to the Department of Food and Public Distribution

Stock in trade

In FY 2021-22, the government approved Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)

Rising Income levels

Cross-selling

Credit card fees

In October 2021, RBI announced plans for new framework for retail digital payments in offline mode.

Operating Metrics

Major Segments

Sales per square foot Gross margins return on investment Average transaction value Customer retention Conversion rate Foot traffic and digital traffic Inventory turnover Sales per employee Gross & Net profit Basket size/items per transaction Sell through

ConQuest, IIM Shillong

2022-2023

Market Size & Forecast

Facts

The retail industry in India ranks 4th in the world in terms of size and accounts for 10% of the overall GDP of the country. The industry's market size in 2020 was approximately INR 65.50 trillion.

Retail Industry is dominated by unorganized seller with approximately 13 million kirana stores and neighbourhood stores

Indian Retail Industry expected to reach INR 96.43 trillion by 2024 and it is estimated to grow at a CAGR of 10.15%.

Organised consists of supermarkets, Hyper, Departmental stores, Cash & carry stores & Specialty stores

Page 42

INDUSTRY SNAPSHOT: Telecommunication & Telemedia Value Chain Network Equipment

R&D Development of devices for new wave spectrum.

Identifying addon S/W technology

Manufactures hardware, routers, modem, fiber optical Ericsson, Nokia, Siemens

Technology Provider Software Technology (4G, 5G) Sterlite Tech, Mahindra, Qualcomm

Emerging Trends Scale & Distribution Distribution centres and warehouses for sim-cards, broadband, etc Scaling up devices

Revenue

Branding Advertising Promotion Complaints and feedback

Internet of things devices and sensors Satellite-based Narrowband-IoT Network Wired and wireless communication tech Universal Service Obligation Fund Public Data Office Aggregators Investment in optical fibre network Emergence of BWA technologies Green telecom

Government Initiatives

Key Growth Drivers Growth

Sales/ Marketing

FDI in telecom sector has been increased to 100% from 74%. FDI of up to 100% for infrastructure providers offering dark fibre, electronic and voice mail.

Cost

5G

Internet and voice services

Spectrum cost

Satellite communication

Cross provider calls

Advertising

The Department of Telecommunications (DoT) initiated discussions with banks to address financial stress in the telecom sector, particularly Vodafone Idea Ltd. (VIL) that urgently requires fund infusion to stay afloat

Fibre optics/ Support network

The Department of Information Technology intends to set up over 1 million internet-enabled common service centres across India as per the National e-Governance Plan

Cloud computing

Affiliations

KPIs

Major Players

Increasing mobile subscribers Untapped rural markets Rising internet penetration Development of telecom infrastructure Growth in Mobile Value Added Services Telecom advertising market Growing Cashless Transactions Rising per capita Income Levels Emergence of PPP Models in Telecom infrastructure Enhanced specturm limit

Call Completion Ratio Average Revenue per User Average Call Duration Idle Time on Network Tele-density Churn Rate Network Operating Cost Subscriber Acquisition Cost Call Dropout ratio Internet Penetration Gross Additions

ConQuest, IIM Shillong

Major Opportunities

2022-2023

Govt policy change PLI Scheme under Atmanirbhar Bharat Abhiyan- Rs. 12195 cr Bharat net ProjectOptical fibers laid in 178417 Gram Panchayats 100% FDI allowed in telecom sector PLI Scheme under Atmanirbhar Bharat Abhiyan- Rs. 12195 cr

Page 43

CASE FRAMEWORKS

HOW TO APPROACH A CASE INTERVIEW? Understand & clarify the problem statement

Candidates must be very certain that they have comprehended the problem statement clearly; a mistake made here has the greatest potential to sour the entire interview.

Start by asking clarifying questions. A person who asks the correct questions is more likely to fully comprehend the issue at hand and to find a workable solution.

It is not uncommon for the interviewer to withhold all the pertinent information at once in order to test the applicants' information-gathering skills; the evident goal is to determine how effectively the candidate will be able to do the same while talking with clients.

Unless absolutely required, avoid assuming anything; if a candidate requests it then its always better to communicate with the interviewer to get them validated.

Structure the problem

This entails compiling all the information obtained and interpreting it.

The A4 sheet method is highly beneficial for this, although candidates are free to utilise other techniques if they are more comfortable with them.

Candidates should aim to maintain their structure as straightforward as possible because the interviewer may occasionally ask for the working sheet.

As a result, the interviewer should be able to comprehend the strategy used by quickly scanning the sheet.

Frameworks can be used to organise data, but you shouldn't try to force any framework to fit your data merely for the sake of utilising it.

Additionally, applicants should explain to the interviewer how they arrived at a solution whenever a framework is used rather than saying that “I’m using market entry

Analyse the case

The applicants are needed to infer conclusions from the information obtained during this phase of the problem-solving process. The framework they select to use, if any, and the structure they choose to adhere to, aid in the process.

Candidates should ponder the following two questions: a) How did this data point appear to us previously? , and b) How do the competitors' data points compare?

It is advised that candidates create a hypothesis that includes several potential answers, validate their hypothesis by asking leading questions, and continue to restrict their set in response to debate. The applicant should keep the interviewer informed of their thoughts by communicating frequently.

When interviewers notice that a candidate is off course, they will frequently offer advice to assist them correct their thinking.

If the applicant discovers that certain information is still lacking, do not be afraid to probe the interviewer for it. No one will give the knowledge on their own, but if well-informed questions are asked, someone will undoubtedly assist.

Arrive at a conclusion

This is the final round of problem-solving and could determine whether an applicant passes the interview. All of the candidate's previous work will be for naught if she or he is unable to formulate a sound conclusion supported by a reasoned execution strategy.

Try to make sure that the recommendations are as realistic as possible because this enhances the likelihood that they can be put into practise in actual situations. Keep in mind that specific solutions earn more ratings than general, nonspecific responses.

Perform a brief "sanity check" to determine whether the suggested remedy, especially if it is quantitative in nature, makes sense before delivering it. If the initial response was derived following top-down approach or vice-a-versa, this might be accomplished by utilising a bottom-up technique.

ConQuest, IIM Shillong

2022-2023

Page 45

STRUCTURE OF A CONSULTING CASE INTERVIEW The following criteria, in combination, may be tested during interviews: Personality and behaviour tests (through HRQ) Solving problems (using examples and/or educated guesses)

Personality/behavioural (through HRQs) In addition to the more common inquiries like what are your strengths and weaknesses, why consulting, and why this specific firm, candidates are strongly advised to be ready for any type of question that may arise from the information listed in their CVs, particularly past work experience, internships, or projects.

Problem-solving (Case Interviews) Expectations

Case interviews are designed to gauge a candidate's capacity to analyse a novel scenario, unearth pertinent data while using their thought process to generate one or more potential solutions, and then articulate their ideas in a clear and concise manner.

Approach

Understanding the problem and the requirements first, establishing a structure that would help one solve the problem, analysing the information at hand, coming to a conclusion, and making recommendations are the basic steps in solving a case interview.

CLARIFY

ConQuest, IIM Shillong

STRUCTURE

ANALYSE

2022-2023

CONCLUDE

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PROFITABILITY

PROFITABILITY (Overview) The basic profitability framework requires breaking down of profit as 'Profit = Revenue - Cost', and further deep diving into each of the branches to identify the KEY PROBLEM. Cases can have issues related to revenue, cost, or both.

Preliminary questions to understand case context

Cost Segmentation on the basis of: 1. Logical Components 2. Value Chain Analysis

Analyse using the Profit equation

Value Chain Product/Service journey Primary Activities

Revenue

Price

Production

Volume

Distribution

Cost

Product Mix

Fixed

Inbound Logistics

Operations

Variable

Customer

Outbound Logistics

Services Support Activities

Region

Procurement

Customer type

R&D

HR Management Infrastructure

Customer Journey

Initial Questions Get a basic understanding of the company e.g. product/services, geographical presence etc.

Try to understand if it is a company specific problem or an industry wide phenomenon Consider the quantum of losses and the time period for easy comparison

ConQuest, IIM Shillong

Marketing & Sales

Alternate Approach Cost: Cost can be broken down into Fixed and Variable costs Revenue: Problems with units sold can be looked at from the demand and supply side.

Factors affecting revenue can be classified into Internal (Production, Distribution, etc.) and External factors (PESTEL analysis)

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Case 1: The State Transport Department of USA is exploring ways to increase their profits after a few years of dip The State Transport Department of the United States of America is exploring ways to increase their profits after a few years of dip

Yes – back-office team has majority of the staff Do we want to cut costs?

Is there a particular mode of transportation that they want to focus on?

Yes. Ferry.

What would you recommend?

Do we have any recent Top-Line or Bottom-Line figures for Ferry department?

Seeing as it is mostly staff costs, this may lead to layoffs. I think there are ways to trim the team down by leveraging technology, like by using ERP systems – we can explore that if you want

(Data for only one year provided, no trends. Data indicates marginal profits)

Okay sure

Would the department like to focus on increasing revenue or decreasing costs?

What is the primary operation of the Back-office?

Let’s look at revenue for now Sure. Do we want to increase non-transport related revenue or ticket volume?

Primary functions include Booking tickets, scheduling, etc.

Can you elaborate further?

I think most of these functions can be fulfilled by websites and self-service kiosks.

However, we may need a small technical team for its maintenance.

So, I am guessing there will one revenue stream coming from the ferry tickets, and another from non-transport activities like concession stands

Okay sounds good – can you summarize the case for us?

Yes sure, lets look at the non-transport revenues

(Gives summary, highlight the conclusions reached and tentative way forward)

What are your current sources of non-transport revenues?

Only concession stands at the docks – say we wanted to branch out, what other sources would you recommend?

Well, renting out the ferries for private parties, hosting birthdays and weddings, that could be an avenue to explore. We could also consider vending machines on the ferries.

That sounds good – could you give us an estimate of the revenue we can generate from this Refer to the guesstimate on Page No. 98 That looks good, we now have some data on the cost side (Gives the breakup of the expenses) Okay so it looks like close to 80% of all ferry expenses are for staff wages – does that include the crew?

Yes – but it is only a small percentage Okay so may I ask what is the remaining percentage? Maintenance staff? Back-office team?

ConQuest, IIM Shillong

2022-2023

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COST REDUCTION (Overview) Client's company is seeing lower profits & revenue due to surge in the cost of operating the business. Here, we do a value chain analysis, focusing on the operation activities like processing, storage & transportation to narrow down on the ares of improvement.

Profit Revenue

Raw Material

Cost

R&D

Processing Machinery Employees Technology Capacity Utilization Packaging

Inbound & Outbound Logistics Number of vehicles Quantity per trip Cost per trip

Storage & Distribution

Storage

Marketing

Distribution

Number of Warehouse

Number of vehicles

Rent/cost per warehouse

Quantity per trip

Budget components CRM

Customer Service Repair & spare parts Returns

Cost per trip

Value per trip

Value per trip

Initial Questions

Recommendations

Get a basic understanding of the company's cost breakdown across the Value chain e.g. Raw material costs, process, logistics, storage etc.

Ask if there has been any significant cost increase in any of the activity Try to understand if it is a company specific problem or an industry wide phenomenon Understand if there is any redudancy which can be eliminated to reduce cost

ConQuest, IIM Shillong

After understanding each cost component & breaking it down to individual expenses Recommend solutions to eliminate the extra cost components eg. unused warehouses Recommend solution to optimize the utilization capacity eg. inventory management, loading capacity, route optimization etc.

Recommend solution for better functioning & technology usage eg. automation, ERP etc.

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Case 2: Declining profits of an IT Service provider Your Client is an IT service provider. The profits of our client has been declining since the past 6 months. Can you help analyse the root of this problem and suggest measures?

I would like to ask some preliminary questions.

Sure, go ahead!

Could you please elaborate on the kind of IT services? Is it like Infosys which has it's clients for whom it develops a new software or provide any service related to telecommunications and telemedia?

Yes, It's exactly like that.

No, you are not missing out on anything. The number of clients have not changed in the past six months. Also our developers are one of the best in the industry and do their work in the most efficient manner. The kind of work has also not changed. You can proceed with analysing the costs.

Alright, so for an IT Services firm, if I think of costs, major would be infrastructural and administrative, software development costs, and the employee costs.

You are right in identifying the costs, although in this industry you call it as SG&A and employee costs.

Okay, talking about SG&A, I believe it would include hardware, software costs, and also all the Outsourcing costs while the employee costs would depend on the number of employees, their utilisation and wages. Should I discover if there is scope to improve any of these?

Were does our client operate?

Yes, that’s true. SG&A does not have much scope to reduce costs while I would definitely want you to explore the employee related costs. The factors you’ve mentioned are fine.

Our client has 4 offices across India and has clients globally Okay, what is the quantum of the decline in profits? Do we have any data regarding the same?

Our profits has declined by 15% in the past 6 months Is it an Industry specific problem or a company specific problem?

The client is the only one with declining profits, the rest of the players in the industry are doing well and their business is growing at a steady rate Okay, Can I take 2 minutes to structure my thoughts?

Yes

Okay, thank you. So in that case, I would want to ask if we have any information about how many employees we have and also about their utilisation rates to see if they are over or under staffed.

Sure, so you can have a look at these data points for number of employees, utilisation rates and number of employees in our office. Number of Employees: 5000 Employees, 75% utilization, Avg Cost Per Employees: Rs 70000 / employee Alright, do we have any data on how our competitors are placed in the same parameters? This would help me assess better if there is a problem of overstaffing leading to the problem of increased employee costs.

Yes, we do but first tell me you would like the relative values or absolute values? Also state the rationale for selecting any of these?

Okay, now that i have all the data, i can state that the declining profits can be due to two reasons.

Either the revenues have been declining or the costs have been increasing. Do we have any data I would like to assess it with relative values as it will help me analyze better with its competitors.

Relative values are always comparable while absolute values can differ from firm to firm on which is the reason behind this decline?

We do not have any data regarding the same. You can proceed with stating the variables for both Okay sure, I would like to start with analysing the Revenue.

The equation can be made as follows: Number of clients * Number of employees per client * The number of days the client's work is being done * Number of projects per client Am I missing anything?

ConQuest, IIM Shillong

Correct, so our competitors in the industry have the following: Number of employees: 4500 employee, 100% utilisation, Avg cost is same as ours which is Rs 70000 per employee Great, this clearly shows that there is a problem of overstaffing and utilisation. I would like to ask about billable and non-billable (bench workers) before i proceed. As it is an IT industry billables and non- billable employees are very common. Can you give me any data on that.

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Case 2: Declining profits of an IT Service provider

Good point, You are right, the extra 500 workers are the non billable employees allotted to each project. This is also the reason for the low utilisation rates. This is done because our client after his calculations have reached the conclusion that the cost of not taking a project due to understaffing is more than the cost of the employees. Could you move on to giving the client suggestions for solving this problem?

Alright, I would like to suggest the following: 1) Reducing the number of non-billable employees 2) Not keeping more than 1-2 non-billable employees per project if that is not being followed already 3) Thirdly, now there are a lot of freelancers looking for work, therefore whenever our client needs an extra hand they can hire them for the projects duration, with they don't have to bear the fixed costs.

4) Fourthly, outsourcing can be used in times of extremities in which they can earn the commission from the projects . Lastly, our client should map the number of projects or the prospective projects with the 5) number of employees more effectively. Making more industry relations and increasing their brand name can help them utilse their already employed people better without laying them off Great suggestions.

One last question, if you were to lay off the employee how many would you lay off?

I would definitely lay off less than 500 employees.

Great, that would be all. Thankyou!

ConQuest, IIM Shillong

2022-2023

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Case 3: Identify the issue leading to declining profits of a thermal power plant Your client is a thermal power plant in India. It has been facing declining profits for some time now. They have asked you to identify the problem.

I would like to ask some preliminary questions.

So, the client has been importing coal from Russia, and there has been no change in the process or the prices directly.

Has there been any change in the currency exchange rate?

Yes, exactly! Russian rubble has been appreciating with respect to rupee for 3 months now, because of which the client’s cost of importing raw material has increased.

Sure! Go ahead.

Can you please tell me where the plant is located, and since when has it been facing these declining profits?

The plant is located in Rajasthan and their profits have been declining since last 3 months.

Okay! Should I look at other components of the value chain?

No, that would be all!

Since the profits have been declining, either the revenue has decreased or the cost has increased.

There has been no change in their revenue. The demand and their prices have been constant during this period. Why don’t you look at the cost?

Alright! I’d like to analyze cost across the value chain. A typical power value chain has 4 parts: generation, transmission, distribution and sales. Is it fair to assume that our client, which is a thermal power plant would primarily be involved in generation and transmission?

Yes. They have been facing increased cost in generation.

Okay. Then I’d like to further break the generation process into 2 main buckets – Raw materials and the plant (which basically covers the actual process of generation of electricity). I’d like to analyze the raw materials first. Since it is a thermal power plant, the main raw material would be coal.

That’s correct!

Has there been any change in the price, amount or quality of coal used by the client.

No, there has been no direct change, but yes, the problem seems to be in the raw material only.

Can you identify it?

Alright then, I’d like to trace the journey of coal to identify the problem. Do we have any information on how and from where/whom does the client procure coal?

The client gets it imported from Russia.

Coal is usually transported in ships, and sometimes through land. Has there been any change in the transportation process?

It has always been transported through ships. No change there.

ConQuest, IIM Shillong

2022-2023

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Case 4: A Public Sector bank is facing declining profits in ATM business Your client is a public sector bank. It has been facing declining profits from its ATM business.

Help them in finding solutions to their problem I would like to begin with confirming the problem statement and would also like to ask few clarifying questions. Also, I would like you to please help me with a brief understanding on how ATM business works for the banks there a particular mode of transportation that they want to focus on?

Yes, it is regulated by RBI Okay, what I can think of here is that we are losing out on revenue which in turn is impacting us with additional costs as explained by you earlier. The reason I feel this can happen is majorly because of 2 reasons – 1. More technical downtime and unavailability of cash in our ATMs, 2.

ATMs not located in appropriate places or competition have ATMs strategically located which reduces ATM transactions for us – both own customers as well as other bank customers

Yes sure, go ahead.

You may focus on the second hypothesis of yours.

So our objective is to just focus on profits or profitability of ATM business

Okay, so for approaching this side of the problem, we need to first understand the 3500 ATMs we have and which are the ones that are loss making in terms of no of transactions. We need to have case by case analysis of each ATM or clusters and decide based on profitability, location etc. and a decide to shut down loss making ATMs. Further we need to find out locations which bring high number of ATM transactions like metro stations, IT parks, Residential societies etc. and we need to capture those places where competition is less or is not present. A future driven approach has been applied. Further we can explore option of mobile ATMs and can provide portable ATM machines to shops in residential localities where people can withdraw money using that machine and can collect cash from the shopkeeper. IDFC has been using this model lately

Yes, you may focus on absolute profits So as per my understanding, the revenue for ATM business comprises of the fee that is charged for transactions of own bank customers (over and above the free transactions) plus the fee charged by other banks for other bank customers using our ATM Yes, that’s correct but you are missing on one-line item that is crucial for profitability Is it related to fixed costs or variable costs?

That’s good enough. This was a constructive interactive. Thank you and all the very best

No, so in ATM business, your revenue loss becomes your cost and has a double impact on your income statement, which means if your customer uses other bank ATM, you loose out on revenue and you also have to pay a cost to the other bank for that transaction Correct thanks for helping me there. So, this burden is high mostly in cases of free transactions Right So, few more questions I have – How many ATMs do we have, any major split in terms of branch/non-branch, geography etc. How do we stand in terms of the number of ATMs with respect to other banks?

Okay. So our client has around 3500 ATMs spread across the country at present. Last year they closed 500 ATMs on account of losses. As far as industry is concerned, we have the second largest number of ATMs in India. Highest number of ATMs operated by a single bank is 5000 Thanks. And any information on how is our profitability as compared to the peers Our profits have dropped by 25% in the last three years. Other public sector banks have either maintained profitability numbers or have seen a maximum 5-7% drop in the previous years.

Private sector banks have highly profitable ATM business Are the inter-bank commissions standard – meaning is this same for all the banks?

ConQuest, IIM Shillong

2022-2023

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MARKET ENTRY

MARKET ENTRY (Overview) Company wants to venture into new markets, which can be new geography, new customer segment in existing geography etc.

Market Entry Ways to enter?

Industry Analysis

Objective Why does the client wants to enter into new market?

Why particular this market? (target market) What metrics to evaluate?

Market Attractiveness Addressable Market Growth rate

Customers

Competition

Market structure

Major Players

Consumer Behavior

Value propositions

Segments

4 P's analysis

Profit Margin

Organic Barriers to Entry Government Policies Financial constraints

Inorganic

Structured exporting

Partnership or Joint Venture

Setting up company's units

Acquisition

Capabilities & resources Suppliers, distributors etc.

Initial Questions Get a basic understanding of the company's product/services, & business model Try to understand why the company is entrying into new market business expansion, market testing, etc.

Analyze the market, structure & behavior, pain points, existing players, etc.

ConQuest, IIM Shillong

Key frameworks to implement: PESTEL - for holistic analyses of the market & to identify all the barriers to entry STP - to find out the target market and then further narrowing it down to total addressable market 5Cs - Company, Competitor, Customers, Context, Collaborators Porter's 5 forces - to understand the potential offering from external stakeholders & also the threats that company can face in the new market

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Case 5 : Builder wanting to enter the Mall Segment Consider a builder in Delhi who wants to enter the Mall segment. How should it decide on the location and what will be the revenue and cost streams for him?

Okay can I change the location from Delhi to Mumbai as I am more familiar with Mumbai?

Yes sure you can Can you tell me the mall will have premium brands or brands catering to middle class and upper middle class?

I see you have covered everything here, now tell me anything you will do differently in malls to reduce the pain points of consumers?

Sure I will suggest specific steps listed below: I want to make an application for malls that consumers can use to ease mobility from one store to another.

Usually, there are loyalty programs for different stores but not the entire mall, so a consumer who purchases from other stores does not benefit.

I would also make arrangements for pre-parking booking by pre-payment online, so customers do not face hassle in finding parking when they visit the mall.

Perfect, we can close the case now.

The mall will cater to middle and upper middle class Thank you, I will start with location factors for the shopping mall.

Firstly, the mall should be located in a nearby public mode of transport like a railway station, bus stand or auto stands as it caters to the middle class.

Demography plays a major role therefore mall should be situated in a location through which it covers the maximum radius of the population Since malls face stiff competition from each other the location should not have any other mall in close proximity.

As land costs are significant in Mumbai the builder should look for locations in suburban region to reduce costs.

The mall should not be located near a school, hospital, airport, or any such area which can cause regulatory issue.

Can you list the cost streams for the mall?

Major cost streams will be 1. Land ownership/ leasing cost 2. Registration/municipal cost 3. Overall construction cost including interiors 4. Employee cost 5. Maintenance cost 6. Property and other taxes Looks Good. And what about the revenue streams?

The Revenue stream for Mall will be as follows: 1. Advertising kiosks and billboards both outside and inside the mall. Advertising in form of Auto shows and fashion shows also adds to revenue flow.

2. Shop rentals form a major chunk of revenue 3. Rentals from the food court, cinema, and arcade center 4. Revenue from Parking space 5. Revenue from open spaces and banquet halls by renting them for events

ConQuest, IIM Shillong

2022-2023

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Case 6: Design a market launch strategy for leading water purifier company Your client is leading water purifier company and has recently launched water purifying powder in India that will remove all the impurities when mixed with tap/ground water. Design a market launch strategy

Yes, I thought that we should launch in a similar way like ORS Sachets. What are the costs you anticipate during the manufacturing?

Mentioned the different costs production, Marketing, Distribution,etc.

I would like to ask some questions regarding the product to decide on the target segment

Okay, assume that we are setting the selling price at Rs 10 Per 3 liters. What will be the revenue generated per day?

Sure, go ahead. You can take 5-6 minutes to come up with the target segment

I assume that around 50% of the Indian population will come under the lower middle and poor segments. Assuming the Indian population is 120 crores, 60 crore people will come under our target segment. I think 50% market penetration for our product with 30 crore people using it.

So, assuming a single person needs 3 liters of water per day if 30 crore people use it, our revenue will be 300 crores.

How does the process work? Will the powder purify any water?

It will purify the tap water and the groundwater In the entire process, is any waste generated?

Amazing. Now coming to the final question. I want you to think about pitching the product to your manager. Think about five aspects that you think are most prominent for this product? I Suggest you take around 5 minutes to get your thoughts together and answer the question?

For our convenience, let us assume that no waste is generated.

I would like to divide the target market into urban and rural segments and High- income, midincome, and lower-income. In Urban areas, our target should be the low- income segment to Lower middle-class segment as an upper-middle class and High- Income people in both areas will already have automatic purifiers installed.

Fair enough, what do you think about the rural areas?

I suppose similar logic applies for rural areas, so our target should be Lower middle class and poor

The five reasons why this product should be launched are: 1. There is an immediate need for a disruptive product like this that will change the hygiene system in the country 2. The product is portable and efficient 3. It will have an enormous impact on the health of the lower middle class and poor people, and positive advertising for the company 4. Increased customer reach with water shortages looming in the near future and RO not being an option as it generates more wastewater for water purified 5. High sales are expected with the low price of the product

Okay. Are there any other customers you want to target?

Yes, as our product does not leave any waste in the process, I would also market it in areas with high water scarcity in places such as Chennai, as it saves water. This product has high scope in the coming years with groundwater reserves emptied in significant cities, as people cannot use water purifiers due to high water wastage. We can target all segments of people in these areas.

Also, this product can be beneficial while traveling, and we want pure water.

Great, so we have decided on our target segment? How do you think we should launch our product? What should be the price of the product and quantity?

I think the price should be less enough for them not to think twice while paying. As our primary target segment is low-income groups, we should provide enough power to purify 3 liters of water for one person per day. I think we should launch it in small sachets and price it around 10 Rs. which is not a burden on them. Assuming a family of 4 needs 15 liters of water per day for drinking and cooking, they will need to spend less than 50 Rs for clean water

ConQuest, IIM Shillong

2022-2023

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Case 7: Assist a bank wanting to enter the farmer's market Our client is a bank that is looking to enter the farmer’s market. They want our help to understand what kind of products/ services can be offered to the farmers: 1. What are the different types of services that can be offered?

2. How would you evaluate whether these services should be extended to the market or not?

I would like to ask some clarifying questions.

For evaluation, the client should focus on 4 aspects. They should first perceive market demand (requirement). Then they should explore the competitive space and gauge how the existing public sector banks are faring in farmers’ market. The client should also check if there are any regulatory barriers imposed by the local governments. Finally, they should evaluate if the existing synergies can be expanded.

Very well. That makes sense. Thank you!

Yes sure you can Is this a private sector bank or a public sector bank? Also, where does it currently operate geographically?

The client is a leading private sector bank present PAN India (in most states).

Which customer segment does it cater to, in terms of urban/rural and what are its main competitors in the farmers’ market?

Their target customers are from the urban segment, which involves tier I, II, and III metro cities, with some presence in rural areas also. And currently, only public sector banks are involved in the farmers’ market.

Okay, can I take a minute to structure my thoughts, if that’s okay?

Sure!

All right, I would like to divide the products/services into 2 categories – lending and non-lending.

I’ll further divide lending into Personal Loans and Agriculture related Loans.

Under personal loans, the client can offer property loans, education loans, vehicle loans, and gold loans. They can diversify further based on the market demands.

Agriculture-related loans can be further divided into agriculture activities and animal husbandry.

For agricultural activities, the client can provide loans for land, equipment/machinery, inputs (seeds, pesticides, fertilizers), and storage (warehouses). It can also give business loans for the processing of agricultural produce.

Under animal husbandry, loans can be given for feeding cattle, building & maintaining sheds etc.

That sounds good. What about Non-lending products?

The client can offer bank accounts, investment options (like mutual funds), insurance, DMAT accounts, locker facility, digital transactions, ATMs (cards), micro ATMs etc.

Alright. And how can the client evaluate these products/ services?

ConQuest, IIM Shillong

2022-2023

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Case 8: Evaluate the potential reasons for the decline for market leader in the soya chips category in India Your client has been the market leader in soya chips category in India for the past ten years.

However, recently, their market share has declined from 60% to 20%. You are asked to evaluate the potential reasons for the decline and suggest measures.

I would like to begin by asking a few preliminary questions about the company and the market.

Sure, go ahead.

They are split equally.

The product operates PAN India and caters across customer segments.

I would like to evaluate the potential macro-environment variables that may have caused the market share decline Alright! Go ahead

Ok, now considering the growth rate of A & B. They will be selling 4,400 units each this year. So, how is the balance volume of 43,200 units distributed?

Can you elaborate what all would be included in the supply chain?

Okay, can I take a minute to structure my thoughts, if that’s okay?

A single-player captures it.

Definitely For a Soya Chips manufacturer, I would like to draw the supply chain in the following way: a) Research & Development b) Raw materials c) Processing d) Inbound logistics e) Storage and transportation f) Marketing and Distribution.

Am i correct in stating the value chain? If yes, has there been any change in any of these variables?

Good, there has not been any change or disruptions in the supply chain How does our pricing stand compared to the competitors and have there been any changes in the previous year?

Yes, there has been a new market entry in the soya chips market So, I assume the change in market share is due to the new players entering the market.

Is this a fair assumption?

Yes, you can go ahead with your assumption

ConQuest, IIM Shillong

Ok, so that implies the market structure in 2019 was Our client: 12,000 units A: 4,000 units & B: 4,000 units. Now, moving to 2020, 10,000 units sold by our client represents 20% market share.

So this implies if we take it on an annual level, the client will sell 13,333 units this year, and the total market volume shall be 66,666.

You can round off the figures to 13,000 and 65,000, respectively

So, has there been any disruption in the supply chain impacting our production & sales?

Has any new player entered the market?

Let me help you with some data based on which you can proceed forward. In 2019, our client sold 12,000 units, and the rest of the market consists of two players A & B. In 2020, the 9-month sales of our client are 10,000 units, and the A & B grew their volume by 10%.

Ok, let’s calculate the market structure in 2019. Since our client sold 12,000 units which represented 60% of the market share (by volume), this implies that the total market was 20,000 units. So, how is the balance of 8,000 units split between A & B?

Which area does the client service, and what customer segment does it cater to?

There has been no differentiation when it comes to price.

Can you give me some data on what the competitive landscape in term of market share before and after the new player entered the market?

Since a new player has been able to capture a significant share of the market. Can you provide me with the details of the company and its product offering?

The competitor has come with a healthier variant of soya chip, gaining a significant demand amongst the customers.

Ok, so can we imply that the decline in our client’s market share is attributed to the market entry of a new player who has developed a healthier variant of soya chips.

Yes, that’s correct. You can now proceed to suggest possible solutions.

We observe that the customer preference for our market has changed, and they have now preferred a healthier variant of snacks. So, I would break down the potential measures into short term and long-term actions.

In the shorter term, the company should try to regain some of its lost market share by promotional campaign and by offering discounts or benefits on our existing SKUs. While this can be piloted in the near term, in parallel the company should focus on analyzing the healthier variant market of soya chips. They should focus on developing a healthier variant of soya chips and come up with different flavors. In the end, have a promotional campaign for its launch.

What is the timeline you are expecting for these actions?

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Case 8: Evaluate the potential reasons for the decline for market leader in the soya chips category in India We can expect the short-term action to pilot in a couple of months, whereas the long- term action can be piloted end-to-end in the next 12 months.

Ok, can you think of any other measure?

We can think of acquiring the other company.

Ok, so can you, in brief, tell me about the factors you will consider before the acquisition?

During the acquisition, we must first consider the synergistic capabilities of the combined entity and the strategic advantage the company brings on board. The factors in evaluating these could be the manufacturing capabilities, product portfolio, supply chain partners, market reputation and lastly, the valuation of the acquiree.

Okay, great!

Lastly, can you mention some of the healthy snack items available in the snacking industry? Do you know anything about this industry?

Snacking industry has been growing year on year now and the customer preferences in this industry has also been changing now. Specifically now after the COVID-19 hit the world, people have started being more conscious about their health and well-being. They are looking for more healthy items.

The kind of healthy snacks available in the market currently are as follows: a) Baked chips b) Soya Chips c) Makhana items d) Chips made using lesser amount of oil e) Different flavored popcorns g) Flower seeds and healthy seeds h) Chips made with corn i) Chickpea snacks Out of these, our client can also tap into one of these segments introducing some unique and different flavours. They can use the method of sampling for testing the new flavours in the markets Thankyou, that would be all!

ConQuest, IIM Shillong

2022-2023

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Case 9: Feasibility of starting a catering business Discuss the feasibility of starting a catering business in trains traveling from Guwahati to Delhi

Sir, do we have any information about the number of trains, their frequency, and the seat capacity?

No, and please note that there will be no information provided to you apart from the problem statement. Please make appropriate assumptions at each step and let me know them. Also, you are provided 10 mins to arrive at the conclusion.

Sure sir. For solving the case, I will first try to look at the profitability of the business, then look at the operational feasibility and end the discussion with any challenges that may impact the business.

Sounds good. Please move forward.

Since I am from Guwahati and I have travelled a couple of time between Guwahati and Delhi in trains, so I will be making assumptions based on my personal experience. Currently, there are 3 regular trains that run between Guwahati and Delhi, and 1 weekly special train. So, there are 4 trains where I can start my catering business with. Is it fine to move ahead with this?

Yes. Please continue making appropriate assumptions and move ahead with the case. You don’t have to ask me in between as there is a 10-minute timer.

Guwahati is a market where the passengers prefer to take home-made meal while travelling, rather than buying during the journey, hence I have taken low % of potential customers So, a total of ~500 passengers is my target audience per week.

But there must be other catering services already present in the market. I personally tried food from 2 caterer while I was travelling. Their food was below average. If I can maintain the food quality, then I will be able to cover at least 30% of market share within few months.

Hence, the total customers will be 150 per week.

Now, let me calculate the profit per customer.

Okay Sir. Last time I travelled in the train, it had 15 boogies, and each boogie had 8 compartments. So, there was a total of 120 compartments. Each compartment had 8 seats. So, there was a total of 960 seats in every train. Considering the occupancy rate of around 80%, I can make an assumption that there were 750 people travelling in every train.

Next, one of the trains is Rajdhani which has their own catering service. So, very small passengers will opt for our catering food. We can ignore this train. Hence, we can run our business in 3 trains.

So, a total of 750*3= 2250 is my target audience.

Total Revenue = Rs. 31,500 Margin = 30% (including Logistics) Length of travel = 2 days Total profit per week = ~Rs. 20,000 Monthly Profit = Rs. 80,000

Now, I wish to divide my target audience into three categories based on the ticket class – (a) First Class Passengers (b) Second Class Passengers (c) Third Class Passengers The ratio of passengers can be divided into 10:30:60 into 1st, 2nd and 3rd class passengers, which I assumed based on my understanding of the Guwahati’s demography. More people here wish to travel in 3rd class ticket, followed by 2nd class and 1st class.

Considering the profit, I would say that I can start the business. However, there will be major challenges that I will have to cater to – (a) Trains getting delayed (b) Food may be served cold (c) More competition (as many trains are starting their own catering service like Rajdhani) (d) Shift of customer’s preference to travel via flight due to rising middle class income in the country Overall, looking at these challenges, I will re-think my decision of entering the business, and try other business options too.

ConQuest, IIM Shillong

2022-2023

Page 62

Case 9: Feasibility of starting a catering business Total Revenue = Rs. 31,500 Margin = 30% (including Logistics) Length of travel = 2 days Total profit per week = ~Rs. 20,000 Monthly Profit = Rs. 80,000 Considering the profit, I would say that I can start the business. However, there will be major challenges that I will have to cater to – (a) Trains getting delayed (b) Food may be served cold (c) More competition (as many trains are starting their own catering service like Rajdhani) (d) Shift of customer’s preference to travel via flight due to rising middle class income in the country Overall, looking at these challenges, I will re-think my decision of entering the business, and try other business options too.

Good Job. If there was no time crunch, what more you will consider during the analysis?

I missed the income level of the group. I would have taken this into account.

That’s all. Thanks.

ConQuest, IIM Shillong

2022-2023

Page 63

Case 10: Beer manufacturer wants to enter the Kolkata market. Estimate the market size of beer in Kolkata.

A company manufacturing beer wants to enter the Kolkata market. They want you to estimate the market size of beer in Kolkata.

Does the company manufacture premium or regular beer?

Population Split

% Population (Assumption)

Population (Number)

Weekly Consumption (Male)

Weekly Consumption (Female)

18-30

25%

3.75M

2

1

30-50

25%

3.75M

2

0.5

50+

30%

3M

0.5

0.2

They have products in both segments.

Do you want the market size in terms of units or sales?

First estimate the number of units from there maybe we can look at sales

The population of the Kolkata Metro area is around 15 Million. I would split them into different age groups: less than 18(who don't drink beer), 18-30(students and young professionals), 31-50 (older professionals) and 50+. These age groups will have different behaviour in terms of beer consumption You took the minimum age of beer drinkers to be 18, isn't the legal age 21?

Please note that gender ratio is taken as 1:1

Even though that is the case, college students are one of the heaviest drinkers of beer so leaving them out would not give a very accurate result.

Total

4.35M

Annual Consumption = 4.35M X 50 = 217.5M

Okay then, go ahead.

I would divide each age group by gender having a 50:50 split. Assign values to the percentage penetration to each group and the number of bottles of beer they drink in a week this would give me the weekly consumption.

You have not considered the income levels of the population. Do you think it is not a major factor in this calculation?

I do not believe it does. Because beer drinkers will consume beer irrespective of how much they earn. Also since the company manufactures beer in different price ranges, they will be able to cater to consumers from all income levels.

That seems like a fair assessment. You can go ahead with the calculation.

Microbreweries are mostly frequented by young professionals and college students who are from an affluent background. So we need to identify locations which have a high concentration of potential visitors. The 3 localities that come to mind are: 1. Park Street Area: Affluent locality, many colleges nearby, many office buildings nearby but mostly traditional companies with an ageing workforce. Threats: High concentration of rival pubs.

2. Sector V: Many colleges and IT Parks nearby with young workforce. Large potential market.

Threats: Lots of pubs around.

3. Newtown: Some colleges and IT parks around but not as concentrated as Sector V. Growing Rapidly. Very few competitors, IT crowd from Newtown frequent Sector V pubs on Friday evenings.

I think these are really good options. But where should the client set up their first brewery?

(Check the table on the right side)

What profitability and growth targets does the client have in mind?

Do you want me to calculate sales?

The client need not break even immediately but are looking at a longer term picture.

No, I think the client is satisfied with your answer. But they have a follow up question. They operate a chain of microbreweries in Bangalore and Mumbai and they want to expand their footprint into eastern India. They want you to suggest 3 locations in Kolkata where they could set up their breweries.

Then they should set up a brewery in Newtown which would help them the most in achieving their longer term strategy.

Thank you. That's all for the case

ConQuest, IIM Shillong

2022-2023

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PRICING

PRICING (Overview) Client has asked you for the pricing strategies of their product/services, this can be pricing for new product/services or revised pricing etc.

Various components in price (Selling Price)

Manufacturing cost 1. Direct 2. Overhead 3. Profits Distributor margins retailer margins

Pricing

Internal Factors

External Factors

Cost based

Costs

Returns

R & D Costs

% markup, margins

Production costs Fixed Variable Other specific costs

Breakeven period Payback period

Initial Questions Get a basic understanding of the company's product/services for which the pricing strategey is to be made Understand the expense company is incurring from raw material to end product for the customer Understand the target segment for the particular product/services to incoporate value based pricing Understand the brand value of the company & market propositioning

ConQuest, IIM Shillong

Value based (customer)

Competitor benchmark

Industry

Features Additional features

Structure

OthersSubstitutes Complements Proxy

Differentiating benefits

Willingness to pay Opportunity cost Extrapolate benefits

Price range (existing)

Recommendations Based on the company's target revenue & profits, give an estimate price Understand the objective eg. market penetration, promotional, inventory clearance, etc.

Make sure not to dilute the company's brand value or value proposition Margins can be given based on Industry standards

2022-2023

Page 66

Case 11: Client is a Korean conglomerate, and wants to launch a new fertilizer in the US market. Monetize the fertilizer.

Okay, can you tell me more about the client? What is the main business of the client? Where Okay. Now considering that we price the new fertilizer at $60/kg, we can say that the customers spend $60 for 0.2 acre land per cycle, and an additional $60 for the 5th cycle. In addition, they does the client currently operate? would be making an additional revenue from the 5th cycle. Added profit would be *profit per The client manufactures chemicals, fertilizers, and other petroleum products. They currently cycle* per 0.2 acre, from 1 kg fertilizer, per year. We can add a premium to the base price of $60 depending on this value, it should be lower than the value (profit per cycle)/5, since for the new operate in the European market. fertilizer the customer will be paying this amount every cycle.

Since the client operates in the European market, why are they targeting the US market?

That looks good, thank you.

Fertilizers is not a big market in Europe due to lesser income of farmers, hence for higher profits the clients want to launch it in US directly.

What is the new fertilizer? Is it different from the fertilizers people generally use in the US?

Yes, it accelerates the growth of vegetables.

Does it work on all kinds of vegetables or any specific types of vegetables?

It has been tested successfully on tomatoes, hence the client wants to launch it only for tomatoes as of now.

Does the client have a patent for this product? Does any similar market already exist in US? Yes, the client has a patent. No such market exists.

Okay. Does the client plan to set up a manufacturing plant in the Unites States or import the product? How are they planning to sell to the customers?

That will depend on the revenues we are expected to generate, you can ignore that for now. They plan to sell it through retail chains across US. Okay. To price the fertilizer, we cannot use competition based pricing since there is no competition, and cost based pricing also cannot be used since we don’t know about the cost details, hence I think that value based pricing will be the best way to monetize this fertilizer. You mentioned that it accelerates the growth of vegetables. By how much does time get reduced?

The time gets reduced by 20%.

How much time does the normal cycle of apples take to grow?

It takes 90 days.

Okay. This means that a farmer can grow 4 cycles in a year, taking 360 days. Reducing time by 20% means the new cycle will be completed in 0.8*90 = 72 days, and the farmer can now grow 5 cycles in a year. What is the price of the fertilizer that they currently use?

There is only one type of fertilizer in the market, which costs $60/kg.

How much quantity do they generally require?

5kg of fertilizer is required for 1 acre of land.

ConQuest, IIM Shillong

2022-2023

Page 67

GROWTH STRATEGY

GROWTH STARTEGY (Overview) Client's company is aiming for a XX% Year on Year growth and has asked you to create stepwise growth targets & relevant areas to work on to ahcieve those targets.

Growth Inorganic

Organic

Revenue/ User

Revenue/ transaction increase prices

No. of Transactio ns/users

Existing Product

New Product

Discounts & schemes

New Channels

New Marketing

Marketing

Better Marketing

New customer segments

Channels

Cross & Up selling

No. of Transactio ns/users

New Markets

Existing Marketing

Customer rentention

Bundling

Initial Questions

Existing Product

New Product New Customer Segments New marketing channels

Analysis

Get a basic understanding of the company's product/services & what it does?

Understand their target segments, what geographies they cater to?

Understand the product portfolio for any cross selling opportunities Understanding company's capabilities to expand product/service portfolio

ConQuest, IIM Shillong

Revenue/ transaction

No. of Users

Implementing the Ansaff Matrix and identifying where the company exisits in the matrix Asking relevant question around the company's goals Recommending strategies on venturing into new segments, leveraging new channels etc.

2022-2023

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Case 12: Automobile parts manufacturer wants to grow to 2X. Analyze the possible options and give recommendations Client is an automobile parts manufacturer. They want to grow to 2 X in the next 5 years. Analyze the possible options and give recommendations Okay, I'll start by asking you a few questions to better grasp the issue at hand. What city is the client based in? What does growth mean? Is it measured in terms of revenue, profits, or market share? What is the scenario of the market right now?

Sure. The client operates in Pan-India. Their goal is to increase sales. The market is really cutthroat. Together with us, there are 5 players, and each has 20% of the market share.

The number of contracts and the revenue per contract determine the revenue in the current markets. Since the market is competitive, it may not be able to increase income per contract; instead, we should concentrate on growing the number of contracts. Our Contracts is a function of the market's total number of contracts, the percentage of those we qualify for, the percentage of those we apply for, and our victory rate. Total contracts are beyond our control. By concentrating on R&D and comprehending market trends, we can improve our chances of landing the ones we're qualified for. We need to be aware of the internal decision-making procedures for the ones to whom we apply. Better ties with the OEM can increase our victory rate.

Great, that’ll be all. Thank you!

Okay, the client's primary clients appear to be auto manufacturers because the business appears to be B2B. Is that true? What is the procedure for selling?

Nice insights. Yes, 90% of our clients are automakers. We produce plastic components for cars like steering wheels and dashboards. Tender system is used in the selling process.

I want to know more about these bids. What is the procedure for bidding? What's the schedule?

What method of delivery will there be if we get the contract?

Sure. When a business decides to introduce a new vehicle to the market, the tender is released. If you prevail, you will receive the contract for the vehicle's whole life. The contract is granted in accordance with the pricing offered and the pre-existing relationship with the automakers. After receiving the contract, you establish a plant next to the automaker and begin manufacturing there.

Interesting. I think I’ve gathered a fair understanding of the context and the client I would like to start the analysis now. I'd like to break the case up into two sections: market expansion and market research. I would discuss geographic expansion, product diversification, and business integration under new markets.

What precisely do you mean by integration and diversification. How would you also choose which regions to expand to?

By diversification, I mean introducing new product categories. For example, we might look into producing parts for different types of vehicles, like 2-wheelers. Integration can then proceed either forward or backward. Forward integration would require us to manufacture the cars, which is not practical. In order to reduce our expenses for raw materials, backward integration would entail buying a plastic manufacturing facility. In order to expand geographically, I would first look into foreign clients who have been collaborating with us in India, like Suzuki. Since relationships are crucial to B2B transactions, our current connections will aid our entry into new markets.

Great, let’s talk about the existing markets.

ConQuest, IIM Shillong

2022-2023

Page 70

MERGERS & ACQUISITIONS

MERGERS AND ACQUISITIONS (Overview) Client has asked your decision regarding a potential merger or acquisition opportunity. It could involve understanding synergies involved, doing cost benefit analysis and due diligence process and arriving at a decision.

Strategic options Commercial (market related) Operational (target related) Financial (valuations) Legal (regulatory norms)

Implementation

Net Benefits/ Gains

Due Diligence

Non-financial

Financial

Business benefits Business synergies

Deal rationale

Deal Price

Firm's objective

Valuations

Potential Risks Synergy realization

Market reach (new/existing)

Is value a fair value?

New markets/ Channels

Integration

Competition/ Survival

Transaction type

Cost Reduction

Cultural Aspects

Cost savings/ tax benefits

Integration cost

Market share/ Competition

Portfolio Expansion

Initial Questions

Analysis

1. Get a basic understanding of the acquiror company (client's company) in terms of its goals and objectives Questions related to its current state, growth strategy, aims and aspirations, and integration plans.

2. Get a basic understanding of the target company Questions related to target's market share, profitability, competitors, expansion plan.

ConQuest, IIM Shillong

How can the merger or acquisition be effectively implemented?

Issues related to cultural and operational aspects

Macroeconomic risks

Exit Strategies Buyout Going public through an IPO Sale to PE firm Liquidation

Net Benefits/Gains

Valuations - Present value of cash flows it can generate in the future based on the capital structure Synergies - Revenue (more market share, etc) and Cost synergies (sharing of distribution channel, etc) generated through the merger/acquisition Analysis of risks through the PESTLE framework

2022-2023

Page 72

Case 13: US-based retail conglomerate wants to acquire a football club in Europe. Provide consultation on the same.

Your client is a US-based retail conglomerate with no exposure, whatsoever, to sports and related materials. It wants to acquire one of the top three football clubs in Europe. You are expected to provide consultation on the same.

I would like to begin by asking a few preliminary questions, to get a sense of the requirements and objectives of our client as well as the said acquisition.

Sure, go ahead.

What is the client’s objective behind making this acquisition? Is it a scope of business play, or is it something else?

The client’s decision to acquire a football club is an ambitious move. Even so, our goal would be to objectively look at this acquisition and derive the maximum benefit for him and for the conglomerate.

I agree on all fronts that Manchester United is a good buy, not only in terms of personal ambition but also from a financial standpoint. But how would you source finance for this acquisition, since you are from a CFA and IB background.

There are a couple of ways to source finance for this transaction. If the US-conglomerate is cashflow rich, the deal can accommodate a significant cash-deal clause. Using the same base, a lower-than-usual interest rate loan can be used for a leveraged buyout setup. If the USconglomerate is publicly listed or is trading in the private market at a premium, then a stockdeal can be structured accordingly. However, more information is required around the capital structure, cashflow position and market price of the stock.

Thankyou, that was very helpful. Did you happen to follow yesterday’s football match?

I am not a connoisseur of football. In fact, I have only seen a football match 5-7 years ago, that too for a run time of 15 minutes.

When the client specifies ‘top three football clubs’ – do they have anything in mind? If not, what factors do they want us to consider while shortlisting potential targets?

Wow, I really didn’t expect you to not follow football, given the kind of detailed explanation you gave on possible revenue channels, as well as the Ronaldo transfer. Good job!

The client is looking for one of the clubs amongst – Manchester City, Manchester United, and Liverpool. Since we are the ones objectively evaluating the acquisition, why don’t you start with listing down some factors we should look at?

Thank you!

To evaluate such a decision, the first factor to consider would be the club’s current state revenues, as revenues would reflect best on the club’s annual earnings/cashflows. Amongst the ones listed, Manchester United’s revenue generation is considerably higher than the other two.

However, looking at it from a singular standpoint of numbers would not be an accurate evaluation. We should also look at it from a revenue channel standpoint.

What all revenue channels do you think any football club, such as a Manchester United should have in place and what are some additional ideas that can be constructed on to diversify their revenue channels more?

Traditional revenue channels include the matchday sales & ticketing as the matches work on a ‘home-ground’ hosting basis. Claims on broadcasting rights is another such correlated channel.

Based on these two factors, there are minimal differences between the top 3 clubs in terms of revenue churn. Moving to some differentiated channels, a large portion of income receivable by the clubs can come from sponsors, merchandise sale, retail, tours, and friendly matches.

Manchester United is considerably ahead on these facets as compared to the other two clubs in question. What pushes Manchester United beyond the edge, is the recent in-transfer of Cristiano Ronaldo, which is not only expected to yield increased sponsorships and merchandise sales but also enhanced returns on the transfer market. Additional revenue channels, especially in these digital times, includes discounts and merchandise giveaways through online league battles hosted on club’s website for increased traffic. (Understand the league battle concept, followed by a guesstimate on T-shirts sold due to Ronaldo’s signing.)

ConQuest, IIM Shillong

2022-2023

Page 73

UNCONVENTIONAL CASES

UNCONVENTIONAL CASES (Overview) Sometimes, it may be the case that none of the standard case frameworks can be applied to the business situation at hand. Just focus on the details without panicking and try to dissect the problem.

Easy Wins

Points to remember

Breakdown into a mathematical formula Remember the demand and supply side framework Problems could either be internal (in control of the company) or external (PESTLE framework) Always remember the MECE approach to analyze

Never try to force a framework Ask the interviewer for more details if you are not aware about the industry Be as comprehensive as possible. Use bucketed approach to dissect the problem and have a structural thinking If the scope of the case is broad, ask the interviewer if focus needs to be on any specific aspect to structure the thoughts in a particular direction

Chart out the entire process flow/ customer journey Example : E-commerce discovery and ordering process map

Fixed cost SEO Ads Social Media Email

Landing page Navigation Products per page Descriptions Options to the customers

Look for bottlenecks

Evaluation

Ordering

Pages Reviews by the customer Stars given Bundling of the product Use of the product

Cart Call options Wishlist Payment options case, credit card, UPI, etc

Delivery Sellers Shipping Dates Experience

Unboxing Condition of package Breakage Feedback by the customer

A bottleneck is any area along the production line where work can get backed up for any reason Performing a bottleneck analysis can lead to a potential solutions to get a continuous work flow

Miscellaneous frameworks which can be used PESTLE (Political, Economic, Social, Technological, Environmental, Legal)

ConQuest, IIM Shillong

SWOT (Strengths, Weaknesses, Opportunities, Threats)

2022-2023

VRIO (Valuable, Rare, Inimitable, Organized)

Page 75

Case 14: Second hand car refurbisher who is entering the Indian market. Identify the problem and suggest measures.

Your client is a second hand car refurbisher who is entering the Indian market. He is having problems in managing the inventory. Could you help with identifying the problem and suggesting some measures.

Before I begin my analysis, I would like to understand the problem statement a bit better. What exactly does our client do? Could you please elaborate on the same.

Your client deals in the second hand car market. They purchase the second hand cars from the sellers and refurbish every part of the car that is damaged. They then sell it to the consumers who want to buy a second hand car.

Where does our client operate? Does it refurbish all kinds of car parts or are there any specific parts that they deal in?

This company has 7 hubs across India (Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bangalore, and Jaipur). They refurbish all kinds of car parts and keep the inventory related to it in all the 7 hubs Can you tell me something about the competitive landscape and if this company or any other company has entered any other market previously?

This is a new start-up and has no competition in the market. They are the first of its kind. They have not entered any other market previously. We also do not have any information on any other company following a similar model.

Alright, great! Could you tell me the kind of inventory that is required by the company at all times? Also, could you tell me the lead time for any car that it takes to refurbish?

The inventory will include all the parts used in a car, can be a break pad or gears, anything that the car requires to look and function like a new one. The lead time is generally a week at the maximum.

Okay, Now that we have information about the lead time being 1 week, we can conclude that the inventory requirements for this company would be huge as they do not have time to place the order for the inventory after the car has come for refurbishing. The stocked inventory would be high for this company. Could you give me some information on the number of types of car parts that the company aims to keep?

Alright! 6000 kinds of different inventory is very difficult to keep. Hence the company has to prioritise on which inventory it needs to keep and which inventory they do not want to. They can select their inventory following the frequencyAl of use concept. In this we can collect data on which inventory parts are used more than others and which are very rarely used. By this we can keep more of the parts which are commonly used and less of the parts which are rarely used.

Good. Could you tell me another way in which inventory to keep/store can be determined?

The inventory can be decided on the basis of size then again, the number of inventory parts which are big in size will be kept less while the number of parts which are small or medium priced can be kept more. Although, this has to be in line with the frequency of use.

Another way in which we can manage the inventory that we keep is by assessing the lead time of all the inventory parts. For the parts that takes more time after ordering are to be kept more.

There are some parts that are easily available in the market, that can be purchased by local manufacturers instantly. These parts can be kept in lesser quantity to assess the inventory to be stored.

Good Suggestions here. I would to inform you that there are two kinds of inventory parts, OEM and OES. OEM parts are Original Equipment Manufacturers and OES are Original Equipment Supplier. In this industry some parts are OEM parts and some are OES parts. It is generally the trend that OEM parts take more time to procure than the OES parts. What suggestions could you give to accommodate this information and manage inventory more efficiently?

Okay, now that we have understood where the problem lies, I would like to give the following suggestions for managing the inventory more efficiently: a) Using a hub and spoke model where out of the 7 spokes that our client has 1-2 will be made the hubs (cities like Delhi and Bangalore). In these hubs most of the inventory will be stored and the spokes will have just the identified frequently used inventory. The cities for the hubs will be chosen after analysing the connectivity of it with all the spokes. b) Our client can make contracts with the local supplier in which they would give us the required car part as per their requirement at the time of the repair. c) Our client can follow a model in which they can keep the OEM parts more as the lead time for the same will be more. The company owners have a more formalised process hence instant delivery of these of parts cannot be done.

That's exactly what our client was looking for, thankyou!

Great point, so our client conducted a survey and collected data on the kinds of inventory parts used. We can conclude that there are 6000 inventory parts that has been identified till now.

Could you help the client manage this huge number of inventory? Also tell me ways in which the client can select the kind of inventory it thinks is necessary to keep.

ConQuest, IIM Shillong

2022-2023

Page 76

Case 15: Big Bazaar wants to increase the footfall in their chocolate category. Devise strategy to optimise shelf-space.

Your client is Big Bazaar, a retailer who wants to increase the footfall in their chocolate category division. It is also looking for a strategy to optimise shelf-space and want you to give suggestions to the chocolate category manager in Big-Bazaar.

Just to clarify, I would like to ask if this problem is only concerned with that one outlet located in central Kolkata or is it for all the outlets?

You just have to give solutions for that one outlet, you can assume it only has one outlet in Kolkata.

Alright, first I would like know more about our client. Can you tell me something more about the Product portfolio in relation to chocolates? Do they keep only premium chocolates or have all the kinds available?

Sure, Our client has a wide range of products in their portfolio. Although they do not have a lot of premium chocolates. They deal in all other varieties, that is white, milk and dark. They also keep candies, gums and toffees in their outlet.

That's great, could you tell me the quantum of the increase in footfall that our client is expecting?

Yes, please go ahead The category manager can select the chocolates based on the following: a) Taste and preferences of that region b) Cultural sentiments like some chocolates have cow's fat, these might not be suited in India c) Income level ( helps in deciding between luxury and normal chocolates) d) Demographics of the region Great, could you suggest some methods by which we can ascertain these?

The methods that can be used are: a) Sampling can be used in which some new brands will be brought to store and a sample of that chocolate can be given to all customers to increase the brand awareness b) Market surveys about which kind of chocolates are preferred by the customers c) Keeping more quantity of the highest selling brands/chocolates d) Having small kiosks in the store to promote chocolates and know the customer view e) Having feedback mechanism in the billing counter for the chocolates counter f) Keeping all kinds of chocolates like luxury, normal and handmade chocolates as every customer prefers a different kind Good suggestions, could you now help him optimise the shelf space?

Good question, they want to increase their footfall by 10%.

Alright! Could you tell me if their are any other retail chains or chocolate outlets nearby our client's stpre? If yes, are they facing the same issue?

There is no outlets nearby, just some small pan shops. Also they are not facing the same issue.

My last question before i move to the solutions would be that if the profits have been declining? or our client just wants to increase the profits as it is a growing market?

The profits have not been declining but our clients sees a good prospect in this industry and want to maximise their profitability looking at the upward trend Okay, To increase the profits our client can either decrease their costs or increase their revenue.

What aspect would you like me to evaluate?

Costs are not an issue for our client. Focus on the revenue.

Alright! I would like to form an equation for assessing the revenue.

Number of customers* Ticket size of each transacion* Avg price of each chocolate Am I missing something?

No, can you now directly move on to optimising the shelf space and the selection of chocolates?

Shelf space is one of the most important metrics in any retail chain hence optimising it is essential. a) Category manager should start making combo offers in which it is combing a variety of 2-3 chocolates and selling helping us to save space by not keeping all the chocolates separately b) Selecting the most sold size of each variety and then keeping maximum of those c) If two chocolates have the same composition then analysing the more popular brand and keeping chocolates of that only.

Alright, our client has already done these now, could you suggest 5 matrix that you will look at to evaluate the performance of your department?

Definitely! a) Assess the increase in footfall of the store by keeping new brands b) The profit/shelf space occupied by the new brands or the new chocolates c) Sales compared to previous month where the implementation had not been done d) Sales of the new chocolates that have been added in the portfolio e) Inventory turnover ratio f) Cash conversion cycle g) Quantity of the purchased chocolates or the percentage of the cart value comprising of chocolates h) Loyalty and substitution rates of the chocolates Perfect, Thankyou. It was good talking to you.

Okay, First i would be helping you with selecting the kind of chocolates and then go to optimising the shelf space, Is it alright?

ConQuest, IIM Shillong

2022-2023

Page 77

Case 16: The company facing problems delivering orders on time. Factors to keep in mind during supplier selection.

Your client is a major furniture E-commerce company. It has been severely affected recently by the COVID 19 lockdown. The company outsources all its manufacturing to third-party furniture manufacturers, and it only handles the supply chain, marketing, and sales of the furniture. All manufacturers are based in South India. There are multiple SKUs, and the stock is transferred directly from the manufacturing site to company-owned warehouses as per order requirements.

The company has faced problems delivering orders on time to its customers post the lockdown, mainly due to its suppliers not fulfilling orders on time. It plans to expand its supplier base. What are the factors you should keep in mind during supplier selection for such a vendor?

We need to keep in mind multiple factors before we select a supplier for such a company. Some of them are•Quality- I define it as fitness for the intended use. For a furniture manufacturer, the furniture must be able to meet the desired specifications. This will also include the style, design, and overall finish of the product. We can also consider prior customers’ testimonials, their previous quality check/control records (if any), and a quality audit performed on-site (if possible) •Price - Normally, quality does not always go side by side with price, but we must try to find out those suppliers who make better than average products at an average price. However, substandard and poor quality purchases should not be made at the cost of a low price •Location- The location of our supplier would vastly affect our delivery time and cost. Hence the ideal supplier should be located near our warehouses/ be able to deliver consistently on time at the lowest possible price •Flexibility- The supplier must be able to cope up with any demand fluctuations/ seasonality's involved •Size of the supplier – This would affect the order size that can be placed with the supplier. For fast-moving items/ items ordered in large quantities, we need the supplier to have a large manufacturing capacity Derive a formula to estimate the inventory level of their supplier. List all factors that need to keep in mind while determining inventory level?

The following factors need to be kept into account while deriving a formula for average inventory level•Lead time •Rate of consumption •Type of materials (special order or regular order) •Reordering level •Safety Stock Using these, I derived a formula as - Reorder point = (Average rate of consumption *Delivery lead time) + Safety Stock Do you have any questions for me?

What kind of projects the Supply Chain & Network Operations (the interviewer was from the SCNO team) practice takes up?

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2022-2023

Page 78

Case 17: Problems faced by a travel aggregator’s customer service team and recommendations to deal with the same.

Our client XYZ is an online travel aggregator. They provide online ticket booking and hotel booking services. COVID-19 has started spreading across the world and is just about to strike India. The company is developing strategies to effectively cope with the various problems that may arise due to the pandemic. The customer service team (call center) is expected to be strained the most during this period. The client has asked us to present a report on the variety of problems that this department can face and a set of recommendations to deal with the same.

List of expected problems: 1. Increase in number of calls 2. Unprecedented requests (cancellations, queries on safety measures etc.)

3. Lack of clarity on local govt policies and hotel policies 4. Remote working arrangements for call center employees 5. Training for call center employees for the right responses

Bucket these in internal and external factors External Factors: 1. Increase in number of calls 2. Unprecedented requests (cancellations, queries on safety measures etc.)

3. Lack of clarity on local govt policies and hotel policies Internal Factors: 1. Remote working arrangements for call center employees 2. Training for call center employees for the right responses

Calls have rapidly increased but due to WFH, only 50% of the workforce is effective, what are the solutions that can be rapidly implemented to tackle this? Infrastructure addition is not possible to due to logistical issues a. Prioritization of most frequent queries and aggregation of the common queries into themes b. Dashboard providing live status updates on important themes – with most frequently asked queries in that theme

How would the users know about the dashboard? a. Notification trigger via mobile app to redirect customers to the dashboard b. Social media advertisements like Instagram sponsored ads with a link to the dashboard targeted to XYZ customers

Does this capture the entire audience, what else can be done?

Email push notification as a catch for all segments – as elders may not be using the app or would be active on social media

Some questions on contingency planning.

ConQuest, IIM Shillong

2022-2023

Page 79

GUESSTIMATES

DATA SHEET Population of India is 1400 Million

Gender

Rural- Urban Split

Male

52%

Rural

65%

Delhi

1500

Female

48%

Urban

35%

Mumbai

600

Bangalore

700

Hyderabad

625

Chennai

425

Kolkata

200

Age Distribution

Household Size

0-15

25%

Rural

5

15-35

40%

Urban

4

35-60

30%

60+

5%

Household Income Distribution

Distribution by Religion Religion

Population

Area of major cities (in km2)

Hindu

80%

Muslim

15%

Christian

2%

Category

%

Mumbai

20 Mn

Delhi/Kolkata/Bangalore

15 Mn

Chennai/Hyderabad

10 Mn

Lucknow/Patna/Jaipur/Bhop al

3 Mn

Others

Elite

Greater than 20 lakh

3%

Affluent

10 lakhs - 20 lakhs

7%

Aspirers

5 lakhs - 10 lakhs

15%

Next Billion

1.5 lakhs - 5 lakhs

45%

Strugglers

Less than 1.5 lakhs

30%

3%

Note: These data-points are approximate figures for the purpose of guestimates and are valid as of 2021.

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Annual Household Income (in INR)

Approximate Population for Indian Cities

2022-2023

Page 81

GUESSTIMATES: Tips & Tricks A guesstimate combines an estimate with a guess. In order to solve a guesstimate, one must follow a methodical methodology, make reasonable assumptions, use quick calculations, and successfully explain the procedure to the interviewer.

Type of Guesstimates

Splits and Filters

Market Sizing: This kind of estimates entails estimating the size of a market or a company's revenue. By estimating the quantity and choosing a price for each sort of goods, this problem is resolved.

Unconventional: The structure of this kind of estimates might not be clear. Such educated guesses are frequently requested in interviews to evaluate the strategy rather than the precise numbers.

Methodology

When, guesstimates are solved by using top-down approach, following are various splits commonly used to drill down – Rural-Urban Split: Geography based approach Gender Split: Split between male and female Age Split: Split the population into various age ranges Income Split: Based on individual or household income

Demand and Supply Methodology

Top-Down Method:

Demand Approach:

Bottom-Up Method:

Supply Approach:

This method begins with a big set, such the entire population, and works to add various splits and filters while making plausible assumptions to arrive at an estimate.

This strategy begins by developing an estimate for a particular representative unit and then extrapolating with plausible hypotheses to arrive at an estimate.

ConQuest, IIM Shillong

2022-2023

This method of market sizing is based on calculating the number of consumers in the target market and the average number of units each consumer consumes over a specific time frame.

This method of market sizing extrapolates production amount based on the number of factories or the number of raw materials by using the supplier value chain.

Page 82

GUESSTIMATE 1 : Estimate the number of refrigerators present in Delhi Assumptions / Calculations

Total population of Delhi = 3 crores

Number of refrigerators can be divided into three segments - for residential use, for commercial use and refrigerators in electronic stores for display Calculation was done only for refrigerators in residential use as asked by the interviewer Penetration for Poor income group was considered 0

Average family size = 4 Total families in Delhi = 3 cr / 4 = 75 lakh families

Splitting population of Delhi into different income groups

Upper Middle

Rich

Notes / Suggestions

Lower Middle

Poor

Segment

Population

Households

Penetration

Rich

10%

=10% * 75 = 7

=100% * 7 = 7

Upper Middle

20%

=20% * 75 = 15

=100% * 15 = 15

Middle Class

50%

=50% * 75 = 38

=50% * 38 = 19

Poor

20%

=20% * 75 = 15

Not considered

*Approximate figures in lakhs

Absolute Number of Refrigerators = Sum of Penetration = 7 + 15 + 19 = 41 lakh refrigerators

ConQuest, IIM Shillong

2022-2023

Page 83

GUESSTIMATE 2 : Number of t-shirts sold by e-commerce companies in India per day Assumptions / Calculations

Males

Rate of internet = 40%, hence 40% * 1 bn = 400 mn Reach of e-commerce companies to deliver products = (3/4) * 400 = 300 mn Number of males and females assumed to be 50% each Females of age group 40-80 years rarely prefer use of t-shirts in India, hence not considered In India, 30% of people buy tshirts from e-commerce platforms, while 70% prefer buying from the market

Total population of India = 1 bn (approx)

Always consider the mindset of the country in the given problem Online portals provide coupons and offers but because of trust factor and fitting issues, people in India still prefer to buy offline

Females

Notes / Suggestions

Age Group

No. of males

T-shirts owned

Total t-shirts

0-15

45

4

=45 * 4 = 180

16-22

23

5

=23 * 5 = 115

23-50

65

4

=65 * 4 = 260

50-80

18

2

=18 * 2 = 36

Age Group

No. of females

T-shirts owned

Total t-shirts

0-15

45

3

=45 * 3 = 135

16-22

23

5

=23 * 5 = 115

23-40

40

4

=40 * 4 = 160

Total t-shirts owned by males and females = No. of t-shirts with males + No. of t-shirts with females = (180+115+260+36) + (135+115+160) = 590 + 410 = 1 bn approx Average life of t-shirt = 2 years; Demand per year = 1 bn / 2 = 500 mn No. of t-shirts sold through e-commerce platform / year in India = 30% * 500 = 150 mn No. of t-shirts sold in India / day through e-commerce = 150 * (10^6)/365 ~ 4.1 lakhs

ConQuest, IIM Shillong

2022-2023

Page 84

GUESSTIMATE 3 : Estimate the number of Swiggy users in Delhi (1/2) Assumptions / Calculations

Total population of Delhi = 3 crores

Internet and smartphone are two main requirements of people ordering through Swiggy Customers using desktop/laptop are negligible; not considered Of all the food delivery platform users, 50% of users in Delhi use Swiggy

Average family size = 4 Total families in Delhi = 3 cr / 4 = 75 lakh families

Households using online food delivery platform

Population of Delhi

Notes / Suggestions Estimating only the Swiggy customers and not food joints, delivery partners, etc.

Of food and grocery, only food ordering customers are considered Ask for calculating just for user base or considering active user base (approxmately)

Average no. of households

Affordability factor

Internet & smartphone users

(80% assumption)

(90% calculated)

Households using online food delivery platform = (Population of Delhi / Average no. of households) * Affordability factor * Internet and smartphone penetration = (3,00,00,000 / 4) * 0.8 * 0.9 = 54 lakh

Number of Swiggy users in Delhi

Households using online food delivery platform

Users per household

Swiggy users

Active users

(~54 lakh)

(1.8 calculated)

(50% assumption)

(70% assumption)

Number of Swiggy users in Delhi = Households using online food delivery platform * Users er household * Swiggy users * Active users = 54,00,000 * 1.8 * 0.5 * 0.7 = ~34 lakh

ConQuest, IIM Shillong

2022-2023

Page 85

GUESSTIMATE 3 : Estimate the number of Swiggy users in Delhi (2/2) Notes / Suggestions Here, below poverty line and poor class has not been taken into consideration as they rarely order from online delivery platform One can also consider the awareness factor while solving this guesstimate

Internet & Smartphone users Income Group

Distribution (%)

Penetration (%)

Total Users

Lower Middle Class

50

80

=50 * 0.8 = 40

Upper Middle Class

25

100

=25 * 1.0 = 25

Upper Class

25

100

=25 * 1.0 = 25

Total Weighted Average

90%

Users per household User Frequency

Distribution (%)

No. of users

Total Users

High

20

3

=0.2 * 3 = 0.6

Moderate

40

2

=0.4 * 2 = 0.8

Low

40

1

=0.4 * 1 = 0.4

Total Weighted Average

ConQuest, IIM Shillong

2022-2023

90%

Page 86

GUESSTIMATE 4 : Estimate the number of schools in the city of Mumbai (1/2) Assumptions / Calculations

Total population of Mumbai = 2 crores (approx)

Both private and government schools are considered Assumed that large schools have all classes from class Nursery to 12th, medium schools have till class 10th while smaller or primary schools have classes till grade 5th.

It's always good to confirm with the interviewer whether to go for private schools or government schools or both

%age of school going children in different income segments

Upper Class (10%)

Middle Class (40%)

Lower Middle Class (30%)

Below Poverty Line (20%)

(100% penetration)

(100% penetration)

(60% penetration)

(30% penetration)

Therefore, percentage of students going to school = 60,00,000 * [(10% * 100%) + (40% * 100%) + (30% * 60%) + (20% * 30%)] = 44,40,000

Average students per school for each category of school *Calculations on next page

Notes / Suggestions

Population below 18 years of age (school going) = 30% Total population for consideration = 2 cr * 30% = 60 lakh

Large Schools

Medium Schools

Primary Schools

720

683

48

Overall average number of students per school = (720 + 683 + 96) = 1500 (approx) Total number of schools in the city of Mumbai = Total number of students going to school / average number of students per school = 44,40,000 / 1451 = 2960 schools (approx)

ConQuest, IIM Shillong

2022-2023

Page 87

GUESSTIMATE 4 : Estimate the number of schools in the city of Mumbai (2/2) Notes / Suggestions These percentages / numbers are all based on assumptions being communicated to the interviewer while solving for the guesstimate

Average students per school for each category of school

Particulars

Large Schools

Medium Schools

Primary Schools

Number of students per class

40

35

30

Number of divisions per class

4

3

2

Number of classes

15 (till class 12th)

13 (till class 10th)

8 (till class 5th)

Total number of students per school

= 40 * 4 * 15 = 2400

= 35 * 3 * 13 = 1365

= 30 * 2 * 8 = 480

Percentage of schools in the city

30%

50%

20%

Average students per school

= 2400 * 30% = 720

= 1365 * 50% = 683

= 240 * 20% = 96

Overall average number of students per school

ConQuest, IIM Shillong

2022-2023

= 720 + 683 + 96 = 1500 (approx)

Page 88

GUESSTIMATE 5 : Estimate the number of cabs to & fro Delhi airport in a day (1/3) Assumptions / Calculations Airport doesn’t operate at maximum utilization Turnaround time: Domestic 1.5hrs, International - 3hrs No. of Gates: Domestic - 30, International - 40 Each gate has 2 hangers Utilization rate assumed uniform at 50% for international flights, while calculated separately for domestic flights

Notes / Suggestions Consider both domestic international flights

STEP 1: For this, we will first calculate the number of flights (carrying passengers) per day to and from the airport.

Maximum number of flights departing in a day Parameter

Domestic Flights

International Flights

Number of gates (A)

30

40

Number of hours in a day (B)

24

24

Turnaround time (in hours) (C)

1.5

3

No. of hangars at each gate (D)

2

2

Maximum flights (A*(B/C)*D)

960

640

and

Total Flight Departures: a) Operating Domestic Flights = 60% * 960 = 576 (*calculation for 60% on next page) b) Operating International Flights = 50% * 640 = 320 Total Flights = 576 + 320 = 896

ConQuest, IIM Shillong

2022-2023

Page 89

GUESSTIMATE 5 : Estimate the number of cabs to & fro Delhi airport in a day (2/3) Assumptions / Calculations Airport doesn’t operate at maximum utilization Turnaround time: Domestic 1.5hrs, International - 3hrs No. of Gates: Domestic - 30, International - 40 Each gate has 2 hangers Utilization rate assumed uniform at 50% for international flights, while calculated separately for domestic flights

Notes / Suggestions On confirming with the interviewer, only the paint used for interior residential walls has been taken into consideration

Domestic Flight Rush Hours of the day

Number of hours

Capacity

Total Capacity

06:00 - 09:00

3

100%

300%

09:00 - 18:00

9

60%

540%

18:00 - 21:00

3

100%

300%

21:00 - 00:00

3

60%

180%

00:00 - 06:00

6

20%

120%

Average Capacity Utilization for Domestic Flights

= 1440% / 24 =60%

STEP 2: Next step is to estimate the number of seats in a flight For this, we can estimate the approximate 30 rows in a flight with 6 seats in each row from A to F, hence 180 seats in one flight.

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2022-2023

Page 90

GUESSTIMATE 5 : Estimate the number of cabs to & fro Delhi airport in a day (3/3) Assumptions / Calculations Flight occupancy during peak hours is assumed as 100% while the occupancy of flight during non-peak hours is assumed at 60% The slots of peak and non-peak hours have been kept same as the ones used during calculation of domestic flight rush Assumed that only 50% of the people take a cab from the airport

STEP 3: Calculating the occupancy rates in flight during peak and non-peak hours.

From the previous table itself, peak hours assumed are 06:00 - 09:00 and 18:00 - 21:00, hence 6 hours in total, so the occupancy rate for peak hour is assumed at 100% while for non-peak hours, it is assumed to be 60%.

The average occupancy rate calculated is 62.5%.

STEP4: Number of passengers in a day = Average Occupancy Rate * Number of flights * Number of seats = 62.5% * 896 * 180 = 100,000 approximately Number of people taking cab = 50% * 100,000 = 50,000 STEP 5: Now we assume that on average 2 people share a cab.

Therefore, number of cab rides = 50,000 / 2 = 25,000

Notes / Suggestions

STEP 6: Also on average it takes around 2 hours to complete a cab ride and assuming a sift of 12 hours for a cab driver, he/she can pull 6 rides a day.

Therefore the number of cabs to & fro Delhi airport in a day = 25,000 / 6 = 4167 (approximately)

Number of cabs to & fro Delhi airport in a day = 25,000 / 6 = 4167 (approximately)

ConQuest, IIM Shillong

2022-2023

Page 91

GUESSTIMATE 6 : Estimate the household broadband connections in India Assumptions / Calculations BPL population assumed to not have any broadband connections Rural : Urban split is 70:30 Rural Households = 74/5 Urban Households = 31/4

Notes / Suggestions Approach with household estimation not per person approach Discount for BPL families Common mistake would be to assume only whole numbers as a possible unit of broadband connection owned by a family

Total population of India = 140 crores Total Population of India= 140 cr

Population above poverty line =126 cr

BPL 10%= 14 cr

Rural Popn= 82 cr

Urban Popn= 44 cr

Assuming 5 members per household

Assuming 4 members per household

R. Household = 16 cr

U. household = 11 cr

Rural Households

Urban Households

Low (40%) Mid (40%) High (10%)

Low (40%) Mid (40%) High (10%)

Number of households

6,00,00,000

6,00,00,000

1,50,00,000

4,40,00,000

4,40,00,000

1,10,00,000

Average broadband connections per household

0.01

0.25

0.5

0.25

0.5

1

Broadband connections

60,00,000

1,50,00,000

75,00,000

1,10,00,000

2,20,00,000

1,10,00,000

Particulars

Broadband Connections

Rural Connections

Urban Connections

Total Connections

285 Lakh Connections

440 Lakh Connections

725 Lakh Connections

Total house hold broad band connections in India are 7.25 Crore.

ConQuest, IIM Shillong

2022-2023

Page 92

GUESSTIMATE 7 : Estimate the number of Ketchup sachets sold/distributed by a single McDonalds store in a day Assumptions / Calculations Number of counters in the McDonalds Store = 5 Time Taken to complete 1 Order = 4 mins Operational Hours = 8AM to 11 PM. i.e., 15 hours Orders which can be completed in 1 Hour = 60Mins/4 Mins = 15 Orders

Notes / Suggestions Approach with proper division of time slots Don’t forget to take appropriate assumption and explain your rationale behind the occupancy rate taken for each time slot

Maximum Orders which the store can cater to 5 Counters

15 Operational Hours

15 orders/hour

1125 Orders

Now ,coming to the demand side. We will divide the day into various time slots and accordingly, occupancy can be assumed

Time Slot

Number of hours

Maximum orders

Occupancy Rate

Reasons

Orders Taken

8 AM - 11 AM

3

225

65%

Breakfast Time

146

11 AM - 2 PM

3

225

60%

Lunch Time

135

2 PM - 6 PM

4

300

40%

Post Lunch (Idle Time)

120

6 PM- 9 PM

3

225

80%

Evening Snacks Time

180

9 PM - 11 PM

2

150

70%

Dinner and closing Time

105

Total Orders Executed in a day = 685 Approximately Since, Burger and Fries are the most dominant items sold by McDonalds. It is assumed that each order has 2 Burgers and 1 Fries on an average. Further, to order 2 burgers, 3 ketchups are required and for 1 fries, 1 ketchup would be required i.e., 4 Ketchup Sachets per order

Total Sachets Sold/Distributed are= 685 x 4 = 2740 Sachets

ConQuest, IIM Shillong

2022-2023

Page 93

GUESSTIMATE 8 : Estimate demand for the Television market in India in a year Assumptions / Calculations BPL population assumed to not have any Televisions Rural : Urban split is 70:30 Average Life of a TV = 5 Years Growth Rate of the Market = 5% Rural Households = 74/5 Urban households = 31/4

Notes / Suggestions Approach with household estimation not per person approach Discount for BPL families Common mistake would be to assume only whole numbers as a possible unit of broadband connection owned by a family

Total population of India = 140 crores Total Population of India= 140 cr

Population above poverty line =126 cr

BPL 10%= 14 cr

Rural Popn= 82 cr

Urban Popn= 44 cr

Assuming 5 members per household

Assuming 4 members per household

R. Household = 16 cr

U. household = 11 cr

Rural Households

Urban Households

Low (40%) Mid (40%) High (10%)

Low (40%) Mid (40%) High (10%)

Number of households

6,00,00,000

6,00,00,000

1,50,00,000

4,40,00,000

4,40,00,000

1,10,00,000

Average Tv per family

0.5

1

1.5

0.75

2

3

Total Tv

3,00,00,000

6,00,00,000

2,25,00,000

3,30,00,000

8,80,00,000

3,30,00,000

Particulars

Total TVs in India= 26.65 crores Approximately Total TVs = 26.65 crores

Total Demand of TV Average Life of a TV = 5 Years

5.33 crores approximately

Considering growth Rate of 5% for Television Market, we can say that Total Demand would be 5.33 crores

ConQuest, IIM Shillong

2022-2023

Page 94

GUESSTIMATE 9 : Estimate the annual market size of diapers in India Assumptions / Calculations Assuming the size of population 100M Dividing into 35% urban and 65% rural Family size for urban 4 and rural 6 Assuming each family has 2 parents and hence kids in rural 2 per family and 4 per family in rural 3 years maximum age for child using diapers Rural has 70% access to diapers while urban has 100% Number of days in year 360 and number of diapers consumed is 4 per day Market Size: (0.3*100%) + (1.7* 70% ) = 1.52M Average consumption per day = 4 No. of days in Year =360 Total no of diaper consumed= 1.56*4*360=2251 M per year

Notes / Suggestions Discount for families who don’t use diapers Common mistake would be to assume equal family size in rural and urban

ConQuest, IIM Shillong

Total population of India = 100 crores (assumed) Total Population

35%

(100 M)

65%

Urban

Rural

Family Size=4

Family Size=6

8.7 M Families

10.8 M Families

17.5 M Children

43.3 M Children

2% child below 3 yrs

4% child below 3 yrs

Market Size

0.3M children

1.7 M children

70% access to diapers

100% access to diapers

Target Market Size- 1.56 M 2251 M diapers is the annual consumption

2022-2023

Page 95

GUESSTIMATE 10 : Estimate the number of Airplanes flying out of Delhi Assumptions / Calculations Yearly load taken by cargo planes = 1000 Kilo tones. Dividing the types of planes in three part small, medium and heavy with share of 30%,50% and 20% respectively.

Load carrying capacity of 50, 100 and 200 tones respectively Time taken by plane to take off is 30 sec with time between the two flights depend upon peak, medium and low traffic demand at 2m,4m,6m respectively. Rush hour, medium traffic, low traffic have time span of 10,8,6 hours respectively.

Number of lanes in airport is 3, airport is running 24X7 and there are no other types of planes flying out from the airport Number of passenger flights = (10* 60 / 2.5) + (8*60/4.5) + (6* 60 / 6.5) = 402 Number of flights: 402*50%*3 = 603 flights Cargo Flights = 342 flights Total flights per day= 945

Notes / Suggestions Consider cooling period between two flights Common mistake would be to neglect the cargo planes in your calculations

ConQuest, IIM Shillong

Type of Flight

Passenger Planes

Cargo Planes

Peak Traffic

Medium Traffic

Low Traffic

Time on runway

30 secs

30 secs

30 secs

Time between two flights

2 mins

4 mins

6 mins

Total time taken

2.5 mins

4.5 mins

6.5 mins

Number of hours

10 hours

8 hours

6 hours

Light Weight Capacity

Medium Weight Capacity

Average Capacity

50 Tonnes

100 Tonnes 150 Tonnes

Load sharing

30 %

50 %

Heavy Weight Capacity 20 %

Approach Step 1: We start by assuming the type of planes which fly out of the airport. Two major type passenger planes and cargo planes are taking off from the Delhi airport Step 2: Generally, the time taken by flight to take off will be same. So, the time between two flights will vary depending upon the flight traffic. If it is a rush hour then there should be minimum time difference between two flights which is 2 min.

Step 3: Now, we can assume how many hours are rush and how may are not. Do the respective calculations to reach the number for three laned in airport. And hence get the total number of passenger flights.

Step 4: Cargo flights are also taking off from the airport. Now, due to varying size of cargo planes from 10 tones to 200 tonnes. So, assuming a ball park range of 50 ton, 100 ton and 150 ton load capacity for light, medium and heavy capacity cargo planes. Also, the load sharing would be different i.e. assuming 30% for light, 50% for medium and 20% for heavy capacity planes. Earlier assumption at 1000 kilo tones for the yearly capacity of the airport we can get the total number of cargo planes per day.

Step 5: Adding the number of planes for cargo and passenger planes will give the total number of airplanes taking off from the airport The number of planes taking off from the airport is 945 per day

2022-2023

Page 96

GUESSTIMATE 11 : Estimate the household demand for Natural Gas in India Assumptions / Calculations BPL population assumed to not have any natural gas connections Rural : Urban split is 70:30 Unit of measurement is assumed as Standard Cubic Metres (SCM) Rural Households = 74/5 Urban households = 31/4

Total population of India = 140 crores Total Population of India= 140 cr

Rural Popn= 82 cr

Urban Popn= 44 cr

Assuming 5 members per household

Assuming 4 members per household

R. Household = 16 cr

U. household = 11 cr

Rural Households

Urban Households

Low (40%) Mid (40%) High (10%)

Low (40%) Mid (40%) High (10%)

Number of households

6,00,00,000

6,00,00,000

1,50,00,000

4,40,00,000

4,40,00,000

1,10,00,000

Percentage of households having gas pipes

1%

5%

10%

20%

40%

70%

Households using Natural Gas

6,00,000

30,00,000

15,00,000

88,00,000

1,76,00,000

77,00,000

Particulars

Notes / Suggestions Break down the problem in all possible consumer segments Be aware about the unit in which natural gas is measured

Population above poverty line =126 cr

BPL 10%= 14 cr

Total Households Rural Households Urban Households

Avg. Annual consumption

Total Consumption

51 Lakh Households

180 SCM

91.8 Crore SCM (app)

341 Lakh Households

200 SCM

156.64 Crore SCM (app)

We can say that total household demand for natural gas is 248.44 Crore SCM, primarily driven by increase in gas pipeline adoption in urban areas

ConQuest, IIM Shillong

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GUESSTIMATE 12 : No. of calls received by all customer care centres in Delhi in a month Assumptions / Calculations Total Population of Delhi is 2 Cr Population below 18 years of age and above 60 years are assumed to be not working % of people working in customer care centres is 15% Up to 18 years of Age = 0.25* 2,00,00,000 18 – 60 years of Age = 0.7* 2,00,00,000 Above 60 years of Age = 0.05* 2,00,00,000

Splitting Population of Delhi into different Age groups

Up to 18 years 25% = 50L

Bifurcating population on the basis of nature of work done

Above 60 years 5% = 10L

18- 60 years 70% =140 L

% of people working in customer care centres

% of people working in other profiles

Population working in Customer care centres = 21,oo,ooo Let’s assume that the working hours in a call centre are from 9am to 6pm with 1 hr break time.

Notes / Suggestions Consider both BPO and in house customer care centers Common mistake would be to neglect the cooling period between calls

Total Working Hours

8

No. of working days in a week (B)

5

Less : Idle Time per day (Non call Time)

2

No. of weeks in a month (C)

4

6

Total Calls hours per person (A x B x C)

Effective Hours (A)

120

Total Hours spent on calls in Delhi (Working population x Total calls per person) = 25,20,00,000 Total Time spent on 1 Call (in mins)

6

No. of calls per hour

10

Total calls received by Customer care centres in Delhi in a month = 25,20,000 * 10 = 2,52,00,00,000

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GUESSTIMATE 13 : Estimate Potential non-transport revenue for ferry transport company Assumptions / Calculations Ferry season comprises of Peak season lasting 4 months rest of the months Non peak season Fleet size is 10 Number of weeks per month is 4 Total Revenue for advertising = 40,000* 10* 4* 4 = 64,00,000 Similarly for the outsourcing, party hosting for peak and non peak seasons Total revenue = 1,28,00,000 + 1,28,00,000 + 64,00,000 = 3,20,00,000 rupees

Sources of Revenue

Advertising

Outsourcing

Ferry Season

Peak Season

% of Ferries used

Notes / Suggestions Consider all possible channels of revenue Common mistake would be to neglect the seasonal effect on ferry business

Party Hosting

Revenue per Ferry (INR per week)

Total Revenue

Non Peak Season

Ferry Season

Advertising

Outsourcing

Party Hosting

Peak Season

100%

20%

40%

Non-Peak Season

100%

80%

60%

Ferry Season

Advertising

Outsourcing

Party Hosting

Peak Season

40,000

80,000

40,000

Non-Peak Season

20,000

40,000

20,000

Ferry Season

Advertising

Outsourcing

Party Hosting

Peak Season

64,00,000

25,60,000

25,60,000

Non-Peak Season

64,00,000

1,02,40,000

38,40,000

Total

1,28,00,000

1,28,00,000

64,00,000

Total Revenue for ferry transport Rs 3,20,00,000

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GUESSTIMATE 14 : Estimate no. of Athletics Inc. gym (Posh areas, high income consumers) customers whom we can sell nutrition food Assumptions / Calculations Area of Chennai = 400 sq. kms.

Let’s assume that the percentage split of total area into Posh, middle income, suburbs/slums categories is 30%, 45%, 25% respectively Assuming high income people live in posh area Population density = 25,000 per sq. km Percentage of people going to gym = 10% Market share = 20% Customers per outlet = 2000/outlet Segment customers on basis of age groups:

20-35 yrs - 50%, Fitness - 70%, non - 30% 35-50 yrs - 35%, Fitness - 40%, non - 60% 50+ yrs - 15%, Fitness – 10%, non – 90% Notes / Suggestions % of fitness freaks buying our nutrition food – 60% (assuming some people don’t buy nutrition food at all) % of non fitness freaks buying our nutrition food – 20%

Posh area customers = 120* 25K* 0.3 = 60,000 Total Fitness Freaks = 0.7* 1000+0.4* 700+0.1* 300 = 1010 Non-fitness freaks = 2000-1010 = 990

Notes / Suggestions Identify all types of customers Common mistake would be to neglect gym goers who don’t consume nutrition supplement

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Splitting Total area into different segments

Posh 30 % = 120 sq. km

Suburbs/ Slums 25%=100 sq. km

Middle 45% total area into different segments Population Density 25k per sq. km = 30L

Finding the numbers of Athletics Inc. gyms in posh areas depending people going to gym and market share

People going to gym 10% = 3L

Number of Athletic Inc. customers (20% market share) = 60,000 Number of stores (2000 customers per outlet) = 30

1 store Fitness freaks buying nutrition food – 60% Non-fitness freak buying nutrition food – 20%

20-35 years of age 50% = 1000

Fitness freak 70%=700

Non fitness freak 30% = 300

35-50 years of age 35% = 700

Fitness freak 40% = 280

Non fitness freak 60% = 420

50+ years of age 15% = 300

Fitness freak 110%=30

Non fitness freak 90% = 270

Total Fitness freaks = 1010, Total Non-fitness freaks = 990 Therefore, we can say that in Chennai 0.6* 1010 + 0.2* 990 = 705 people per store and 705* 30 = 21,150 customers in all will buy nutrition food

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GUESSTIMATE 15 : Estimate the number of movie screens in Delhi Assumptions / Calculations Let’s assume that the % split of movie buffs and causal watchers in each of the income group is 10%,and 25% respectively Operational Hours in a day = 15 hours i.e., 5 shows per day Weekdays- Out of 15 hours, generally night time (5 hours) has higher occupancy rate since people return from office and other obligations. Therefore, we can say that 2 shows operate at 70% occupancy rate and 3 shows function at a 60% occupancy rate

Weekends – Out of 15 hours, apart from morning and lunch time (5-6 hours), which generally sees some idle seats, the other time can be considered peak hours. Therefore, we can say that 3 shows operate at 100% occupancy rate and 2 shows function at a 70% occupancy rate Low Income Group = 0L Middle Income Group = 90L* 10%* 4 + 90L* 25%* 1 = 58.5L High Income Group = 60L* 10%* 4 + 60L* 25%* 1 = 39L

Notes / Suggestions Consider all types of seats offered in a movie hall.

Common mistakes would be to consider Friday as part of weekend.

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Splitting Population into different income groups High 30% = 60L

Low 25% = 50L Middle 45% = 90L

Bifurcating population on the basis of movie watching behavior Generally, Low Income group don’t have the luxury to watch movies in cinemas

Movie Buffs

Movie Buffs

Casual Watchers

Casual Watchers

Number of seats required in a month in Delhi = 97.5L (See Calculations) Now, coming to the screen side. Let’s assume that a movie screen operates from 10AM to 1AM, i.e. for 15 hours and caters 5 shows in a day.

1 week

Weekdays = 5 days

Weekend = 2 days

3 Shows

x

300 seating capacity

x

60% Occupacy rate

3 Shows

x

300 seating capacity

x

100% Occupacy rate

2 Shows

x

300 seating capacity

x

70% Occupacy rate

2 Shows

x

300 seating capacity

x

70% Occupacy rate

After calculating, we can say that, in a month one screen can cater to(4800(Weekdays)+ 2640)(Weekends) = 7440* (30/7) = 32000 seats Approx.

Therefore, we can say that Delhi has 97.5L/ 32,000 screens i.e., 300 screens

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CONSULTING GLOSSARY

CONSULTING GLOSSARY

20,000 Feet

80/20 Rule or Pareto Principle

AOB: Any Other Business

The big picture—For example: “ The view from 20,000 feet.” Other variantinclude “30,000 feet,” “bird’s eye view,” and “the 1,000-mile view.”

This guideline suggests that 80% of the value of effort can be achieved in 20% of the time. It is a constant reminder in the industry to focus on the most important aspects of a project, rather than getting mired in the details

Term generally used while developing an agenda for the team meet. Denotes time schedule to discuss miscellaneous topics in a meeting.

Actionable

Adding Value

Alignment Modelof Strategic Planning

B2B

A general phrase that can mean a number of things, but all of them revolve around the idea of being productive.

Evolved from the concept of “value added.”

Focuses especially on aligning the internal operations to work effectively & efficiently towards the mission and goals of the organization.

Business to Business, referring to a company's primary audience for sales and marketing

Can be acted upon or can be done.

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Acquisition

When a company, acquirer, purchases and absorbs the operation of another, i.e. the acquired. The acquirer gets control of acquired company

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CONSULTING GLOSSARY

B2C

Balanced Scorecard

Bandwidth

Baseline

A strategic framework for categorizing your strategy into four interdependent balanced areas financial, customer, internal business processes, and employee learning & growth.

Availability. For e.g. : “I will have band width to take on that project if I complete this month customer attrition model.”

Base level of previous or current performance that can be used to set improvement goals and provide a basis for assessing future progress

Benchmarks

Beach

Best of Breed

Best Practices

Metrics or standards that competitors in the client market attain. Used usually for operational efficiency.

It refers to a consultant that is not actively enrolled in any project and therefore not on a billable project

Something that is considered superior to its substitutes; can apply to many things in Consulting. See “Best Practices.”

Developing benchmarks for practice or techniques that have shown superior results relative to other practices or techniques.

Business to Consumer refers to a company’s primary audience for sales and marketing.

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CONSULTING GLOSSARY

Big 3

aka “MBB”

Big 4

Deloitte Ernst &Young KPMG PricewaterhouseCoopers

1. McKinsey 2. Bain 3. BCG

Blanks

Boil the Ocean

PowerPoint slides that are drawn on a notepad. More senior Consultants often describe a presentation yet to be drafted by “blanking” a series of slides and giving them to a junior Consultant to perform the work required to complete them.

An idiomatic phrase meaning to undertake an impossible task to make a job or project unnecessarily difficult. The phrase appears in business as well as in other group settings and is considered to be a negative phrase in relation to how one approaches a task. For example: “We don’t need to boil the ocean to get the exact number on this. Just make an estimate based on historical data for one product line.”

Bottom Up

Business Plan

Buttoned Down

Bypass Attack

Developing an estimate by starting with the lowest-level assumptions & building those all the way up to an estimate. For ex. , estimating market size by starting with individual products and prices and adding up to a total industry size. Contrast with “Top-down.”

A formal guide outlining your business goals and plans to achieve the goals. It may also include background information on the organization attempting to achieve these goals

Completed thoroughly and professionally. For example: “Get this customer acquisition model buttoned-down and then we’ll move on to international market sizing.”

It avoids any belligerent move directed against the competitors’ territory. It involves bypassing competitors and attacking easier markets.

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CONSULTING GLOSSARY

Buckets

CAGR

Campus Hire

Case

Categories

Acronym for Compound Annual Growth Rate. For example, if a market grows from $100 billion to $230 billion over the course of 9 years, the CAGR is 9.70%. This is analogous to the Internal Rate of Return in Finance.

A consultant hired directly from under graduate or business schools, as opposed to “experienced hire”

A consulting project. (Also called as a Study or an Engagement)

Capacity Building

Cascading

Cause and Effect

Charge Code

It is the process of creating, improving and retaining core skills, knowledge and capabilities of an organization’s people and processes.

The process of aligning the various KPIs, goals, and projects in an organization to the higher strategy.

All actions taken should be contributing to a higher- level goal or strategy.

The process of identifying the relationship between things or events. The purpose is to identify if one event or action caused another to occur.

An unique code provided with each project/ assignment to which you can charge work-related expenses

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CONSULTING GLOSSARY

Change Management

Circle Back

Core

C-Suite

A service provided by consulting firms to help with a period of major company change, such as an acquisition or a major shift in strategic priorities.

To catch up again later, but used to indicate that now is not the right time. For example: “Let’s circle up after the 6 p.m. call. I have a few tweaks to make to my model.”

Compare with “Touch base.”

The chief concerns of a company or business unit.

Refers to any number of executives with a capital C at the beginning of their title (the C stands for “Chief.”

For example: COO, CFO, CEO,CIO, CMO,etc.

Core Client

Core Competencies

Cost Benefit Analysis

Critical Success Factor

A client with a long- standing firm relationship, and one in which there is continual dialogue between senior executives even if there are no ongoing projects

Similar to Core, but usually used to address areas where a company performs very well compared to competitors or similar companies.

For ex. : “Our core competencies in procurement have led to larger gross margins than other manufacturers.”

A management tool that involves calculating or estimating the monetary costs and the potential benefits of a proposed course of action.

The term used to describe an element that is required to reach business goals and vision.

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CONSULTING GLOSSARY

Cost Leadership

Crisp

Cultural Competence

Critical Path

It is one of the three competitive strategies an organization may choose to focus on to gain a competitive advantage over their competitors.

It requires the organization to offer the lowest prices on goods/services in the marketplace.

An adjective indicating that the referenced work or analysis is thorough and complete, perhaps by gastronomical allusion to food that is fully prepared; it is duly noted that crisp objects, while ostensibly finished, are also far more brittle and prone to shattering

A set of values, behaviours, attitudes, and practices which enable people to work effectively across racial/ethnic and cultural lines.

The key tasks needed in order for a process to achieve a desired result

Customer Perspective

Dashboard

Due Diligence

Differentiation

The external customer’s point of view on an organization, & the value they place on the product/services offered by the organization.

A reporting tool used to consolidate important metrics & information to display in one concise layout to inform the viewer at a glance of current data.

Comprehensive study / survey of a business model with an aim to set clear expectations, risks, etc. as part of a business proposal.

Differentiation is a competitive strategy used by organizations to gain a competitive advantage over its competitors. The organization using this strategy will focus on offering unique products/services to different customer segments.

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CONSULTING GLOSSARY

Deep Dive

Deck

Drill Down

Deliverable

Similar to “double click”, this means a thorough and in - depth exploration of particular topic.

Slide presentation ,typically in MS PowerPoint.

To get beyond the higher- level summary in to the details.

Anything that is owed by you to your manager/ team, or owed by team to client

Double click

Economic Value Added

Elevator Pitch

Experience Curve Analysis

Similar to “deep dive”, this means a thorough in-depth exploration of a particular topic

Method to measure the financial performance which assesses actions and activities of an organization as to whether they have created value and how much for shareholders.

The results and key conclusions in roughly a paragraph. Derived from the idea of being able to convince someone of something important within the span of a shared ride in an elevator.

The experience curve analysis is a model which can be used to understand the trend between production output and production costs.

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CONSULTING GLOSSARY

Empowerment Evaluation

Elevator Test

Encirclement Attack

Experienced Hire

An evaluation approach that aims to improve the organization’s people to help them achieve their goals.

A test of one’s ability to explain concepts in a short-period of time (typically 60 seconds or less). The elevator test represents a hypothetical situation where you are sharing the elevator with a VIP and need to give them a quick summary/presentation during the ride

Only well-financed firm use it. It involves an attempt to capture a wide slice of the competitors’ market through a grand offensive on several broad fronts

A consultant hired from an other company, typically with a higher starting position and salary than 1st year consultants.

Facetime

Fact Pack

Flank Attack

Focus Areas

This strategy is used when the challenger sets its sights on its target weakest points.

Focus areas describe the things that you want to accomplish to deliver your vision - summarized into distinct themes. When all of your focus areas have been achieved you should also have achieved your vision.

Meeting in person or virtually.

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Typically, a “pack” of information that provides essential “facts” on a project or an industry or a company.

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CONSULTING GLOSSARY

Focus Group

Forecast

A form of qualitative research which engages a group of people (usually 3 or more) in an interview-like process in order to gauge their perceptions, opinions, beliefs, and attitudes to a particular product, service or topic.

The estimated value of a metric at a future point in time. Different from the target amount of a metric, a forecast estimate what the metric will likely be based on historical data.

Gantt Chart

Type of bar chart that illustrates a project schedule with start and finish dates, deliverable, etc.

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Frontal Attack

Gain Traction

This strategy is used when the challenger masses its competitive forces right up against those of the opponent by attacking its competitors’ strengths rather than its weaknesses. For this to succeed, the challenger needs a strength advantage over its opponent.

Have a client or senior person engaged in an idea. This is an important concept for selling new Consulting projects, and/or for suggesting an addition or change to a Consulting work plan.

Guesstimate

GapAnalysis

GMC

An educated guess.

Comprehensive study / survey of a business model with an aim to set clear expectations, risks, etc. as part of a business proposal.

Global Management Consultancy, some times referring to just the Big 3, sometimes referring to the Big 3 plus the Big 4 accounting firms.

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CONSULTING GLOSSARY

Greenfield

New opportunity. For example: “Entering the Indonesian insurance market is a true Green field opportunity for the Company.”

Granular

A detailed level of abstraction; often used in the context of increasing the fineness of the analysis, as in: “We need to get more granular here”

Guerrilla Attack

Hands

It involves making small, intermittent attacks on different territories of the opponent. A guerilla attacker uses both conventional and unconventional means of attacking the opponent.

Often prefaced with ‘client,’ indicates the interpersonal skills of an individual in relation to a particular group of people, as in, “That manager sure has great client hands”

Hard Data

Hard Stop

High Level

Human Capital

Hard data describes data in a numerical form that can be precisely measured and quantified.

It represents objective measures of data such as revenue, costs, profit etc.

Used to indicate that after the time indicated, the listeners are on their own, because the person stating that they have a hard stop sure isn’t going to be around to help after then

Similar to 5,000-mile view, but highlevel can also mean a very rudimentary analysis (often lacking in detail)

Describes the skill, knowledge, and output of employees as physical assets to organization.

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CONSULTING GLOSSARY

Hit the Ground Running

Hybrid Strategy

Joint Venture

KPI

The ability to add value in a project quickly, meaning getting up to speed on the important details and understanding and taking on next steps quickly.

It is a term used to describe organization applying combination of two or more competitive strategies

A joint venture is a form of strategic partnership between a foreign organization and domestic organization

A KPI is a stable indicator that helps to determine whether a goal has been accomplished (KPIs can apply equally to your vision, focus areas, organizational goals)

LitmusTest

Lagging Indicator

Leading Indicator

Leverage

A test that is an effective and definitive way of proving something or measuring it. A litmus test is only determined by a single key factor.

A measurable fact that records the actual performance of an organization. A lagging indicator includes the following- annual sales, growth in annual sales, gross margin, annual net income and growth in annual net income.

A measurable factor that changes before the company starts to follow a particular pattern or trend. Leading indicators are used to predict changes in the company, but they are not always accurate. Leading indicators can include- % growth in sales pipeline, etc

Make use of; translate into additional gains. This is an extremely common Consulting word. For example: “We just need to leverage the core competencies we have in the mortgage lending business to our other product lines.”

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CONSULTING GLOSSARY

Low Hanging Fruits

The things that can easily get done.

Megatrends

Megatrend is a term given to global economic transformations that are persistent and affect business, society, politics, technology, and environment.

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Managing Up

Market Segmentation

MECE

Helping superiors to do their job better by giving them feedback, keeping them in the loop, and anticipating problems they may have and helping them resolve them. Managing up is an incredibly valuable skill for junior Consultants.

Market segmentation describes the process of breaking up a market into clearly distinguishable and relevant subgroups based on a common factor, such as interests, demographics, sociographic etc.

Stands for Mutually Exclusive, Collectively Exhaustive. A standard for developing communications that cover all of the relevant issues effectively without redundancy. Very prominent concept at Mc Kinsey.

Mission Critical

Mission Statement

Near-Shore Outsourcing

A product, concept, analysis, or service that is irreplaceable. For example: “Do we really need this expensive item? Is it missioncritical?”

A mission statement describes an organization's core purpose for existing. A mission statement is not a goal and does not usually have a time-frame attached to it.

Near-shore outsourcing is the strategy of moving certain business operation or functions to low-cost countries that are close to the home country of the organization.

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CONSULTING GLOSSARY

Parallel Hire

Performance Driver

Pipe or Pipeline

PIOUTA

A consultant hired from another company, typically with a more senior position and higher starting salary than 1st year consultants. See also “experienced hire”

A performance driver is a metric used generally as a key indicator or early warning that an issue is present.

Short for pipeline and refers to upcoming projects the Consulting firm may have available (e.g.

Supervisor, what is in the pipe?)

Pulled it out of thin air

POA

Push Back

Progress Review

Qualitative

Plan of Action

To indicate to a superior Consultant that something is difficult or challenging and may not be realistic. Being able to push back effectively when a manager may be overpromising or unrealistic is an important, delicate skill. Pushing back can also be done.

A periodic meeting to review progress made and results from time to time. Can also refer to a professional performance review for Consulting.

A subjective form of measurement.

Examples of qualitative measurement are surveys and customer feedback forms.

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CONSULTING GLOSSARY

QC

Space

Stand Up Call

Straw Man

Quality Check, typically referring to need to check for typos, grammar mistakes, calculation errors, etc.

A market, arena, field of endeavor, or general area

A ‘quick’ round table team call to update status from each team member/lead.

A construct presented purely for the sake of argument, with the implication that it is not designed to withstand repeated attacks

Thinking Out of the Box

Top Down

Touch Base

Unique Selling Proposition

The ability to be creative or innovative in solving a difficult problem. “Thinking out of the box” typically is a blanket solution to a difficult problem that no one has solved yet.

Developing an estimate by starting with the highest-level assumptions and using estimates to drill down to a smaller-level estimate. For ex., estimating market size by starting with the number of potential customers and estimating how many purchases the product, how frequently, and at what price points.

Contrast with “Bottoms- up.”

To catch up with someone, typically a person with whom you’ve not had much contact lately. For example: “I’ve been dealing with another client all week and I know I owe you some numbers. We’ll touch base after my afternoon conference call.”

USP is a marketing technique used to highlight how a business’ products/ services are unique from competitors.

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CONSULTING GLOSSARY

Up or Out

Upward Feedback

Value Chain

Value Add

Employee promotion policy where if you’re not promoted “up”, you’re counseled “out” of the company.

The process of providing feedback “upward” to more senior employees, from managers to partners

The overall process or actions that an organization completes in order to add value to an item. This may include marketing promotion and after-sales support

A takeoff on “value added,” which is based on the notion of increasing shareholder wealth by contributing to the profitability and therefore value of a firm. Now used to describe anything that “adds value,” i.e., is positive, productive, and helpful. For example: “Consultants are clearly value-add professionals.”

Value Proposition

Vision Statement

White Space

Work Plan

A statement that outlines how an organization intends to differentiate themselves from their competition and provide value to its customers

Vision statement is an aspirational description of what an organization wants to achieve or accomplish in the mid to long term.

An opportunity for a company to generate revenue where it is not currently. For ex: generating revenue from an existing product in a new market.

It is a schedule for completing a project or set of tasks for a project.

The work plan is a dominant issue in all Consulting projects.

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