General Models for Case Solving

1.1 Estimation Cases
Population World: 6 Billion Adults: 3/4 Below Poverty Line: 1/3 US Population US: 300 million No of households in US: 105 million Number of adults in US: 210 Million (18+ yrs) (70%) 200 million (21+ yrs) Number of Cars per household: 2.5 Minimum Wage: \$5 per hour Average Life Expectancy: 80 Yrs. In USA fraction of adults is high : 4/5 INDIA Population India: 1000 million No of households in India: 180 million Number of adults in India: 530 Million (18+ yrs) (53 %) 440 million (21+ yrs) Number of Cars per household: 0.02 Minimum Wage: Rs. 15 per hour Average Life Expectancy: 70 Yrs. Assume uniform distribution of Age and Salary among people Upper Class Upper Middle Class Lower Middle Class Lower Class

Demand Side o Who purchases the commodity? o How many commodities do they need each year? 1. o What raw materials to be used o An estimate of materials supplied and work from there. Revenue and Marketing 1.2 Strategy Cases Three Types: Cost.3 The 4 P Model 1) Product What product do you want to sell? What product are you able to produce? What advantages does your product offer? 2) Price What price must you charge to make a profit? What price are consumers willing to pay? What price are your competitors charging? 3) Place Where is there a demand for your product? Where are your suppliers located? What distribution channels are being used? 4) Promotion Who is your target audience? How do you reach them? How much do you want to spend on promotions and advertising? .• For estimation cases general guidelines: Supply side: o See who the suppliers are.

1. the higher the price of a product or service.e. the lower the price of a product or service. Conversely. The results indicate the overall industry attractiveness (i.e. the supply of another product will decrease.The lower the price of a product or service. Please remember that as the supply of one product increases.. all other things being equal.7 Porter’s Five Forces Michael Porter's Five Forces model analyzes the various competitive pressures at work in a given industry. ease of making a profit).). the smaller the quantity of goods consumers will be willing to purchase. the greater that demand for the quantity consumers will be willing to purchase (i. (We live in a world with finite resources but infinite demand. as well as the strength and influence that each of the competitive pressures have on the firms participating in the industry. Supplier will be willing to make more available (i.e. the greater the quantity of the item that will be produced. The following is a brief discussion of the five components. .. supply).. Price Supply Demand Quantity 1. The Demand Curve . points Access to Cash Advances. demand). the smaller the quantity producers will be willing to make available.Increase the APR slightly Decrease the annual fee o Hold heavy debt for long term Waive the annual fee Increase their credit limits Cash back programs. etc. Conversely.6 Supply & Demand The Supply Curve -The higher the price of a product or service. all other things being equal.

When considering change.8 "Star" Diagram/Organizational Analysis In doing an organizational analysis. as a whole. Vision should define Strategy. Corporate Culture must reinforce all seven components.9 The BCG Growth-Share Matrix The BCG Growth-Share Matrix provides a valuable framework that enables us to identify and evaluate the company's products relative to market share and the extent to which the market. is expanding or contracting. If one component is changed. managers will have trouble if they are in a decentralized structure while information and planning systems are centralized. recruit and develop the personnel the organization needs to accomplish its objectives. each as independently held businesses. . Strategy determines Structure and Decision Support Systems that are required to make the organization function. The Reward Systems must reinforce what you are trying to accomplish strategically and the Human Resource Systems must select. For example. it is most likely that the other components will have to be changed to be consistent with each other. Vision Strategy Decision Support Systems Human Resource Systems Structure Reward Systems Organization Culture Performance Problems arise when these seven components do not reinforce one another. all seven components must be considered. 1.1. The model can also be utilized to analyze a portfolio of companies held by a single organization by classifying them within the matrix. one should consider all seven components of the organizational unit.

deliver it to the market. not the company as a whole. that the unit achieves competitive advantage. Problem Child (also called "Question Marks") — A product with low market share in a high-growth market. Therefore an astute business manager would want to drop a “dog” from the product line.” It is at this level. maybe slow yet consistent growth isn't so bad. "dog" is certainly not "man's best friend. the product life cycle. something that is defective or undesirable). as indicated in the exhibit below. mother is concerned because her child is not growing as anticipated. it is analogous to a "bomb" (i. accelerating cash flow and. Michael Porter calls these activities “value activities. Hi Low Hi Market Share Low Star Problem Child Cash Cow Dog Profitability 1.e. Primary activities create the product or service. Since the cow is generating milk (i.Products or categories businesses are as follows: Star — A product with high market share in a high-growth market. Cash Cow — A product with high market share in a low-growth market. not coincidentally..10 Value Chain A business manager must understand the internal relatedness of the many activities involved in the production of a product or service.. Dog — A product with low market share in a low-growth market." Rather. cash). the marketer may elect to "milk the cow dry. every mother's prayer.e. Another perspective is that the manager shouldn't be quite so concerned if the product has carved out a little niche that is impervious to the competition.e. The value activities are grouped into nine categories. The categories of . something that fails miserably) or to a "lemon" (i. In this sense." so to speak. create a demand for the product. and provide after-sale support. Every business unit is a collection of discrete activities ranging from sales to accounting that allow it to compete. unless there are some extremely important overriding issues that outweigh the products market performance..