btribe.

in 2 very important aspects to conisder while building a d

Everything MBA! 1) Timeline

Agenda

1. Profit. Profit. Profit!

2. Case discussion
3. Q&A

MECE
Mutually exclusive and collectively exhaustive
Avg. Price

-Realisation
-Discount

-economic factors
-cyclical fluctuations
substitutes
buying patterns
regulations

Market Size

Demand Supply
Smartphones Product Category Life Cycle RM, Production
Demographic change Disruptions

New Market Market Development Diversification

Existing Market Market Penetration Product Development

Existing Product New Product

spects to conisder while building a discussion with a CEO/ interviewer
2) Industry/ company specific

PROFIT

Revenue Cost

Volume

Mkt size Market share

Internal issues External issues

4P Customers
Product- (iPhone)
Promotion Need -> Awareness -> Accessibity --> Affordable --> Experience
Place
Price Industry level factors Macroeconomic factors
.. Competition new, existing,..Technological adv
.. Wars
Org structure...

Market share
Customers

Possible reasons
SOV Awareness Promo mix
Promo efficiency

SOM Likeability 4P
 Customer relationship
Service
SOD Accessible Distribution
ble --> Experience

acroeconomic factors
chnological adv
 btribe.in
Everything MBA!

Agenda

1. Complete consulting 102: Cost

2. Case discussion
3. Case comp discussion

Primary

RM In-bound logistics

Quantity Transport
Quality

ASSIGNMENT:

1. Choose any publicly listed company (India)

2. Look at their last 5Y Financial data
3. Read their annual reports, investor presentations
4. Basis this work (above)- think of yourself as a consultatnt and come up with levers for improving E
5. What would your suggestions be for the same

Tip: also look at 1-2 competitors' data

Objective: 1) Annual Report 2) Get comfortable with reading financial data

3) OTJ learning frameworks

Evaluation: Intent
Structure
Logic
Visual perspective

Format: Excel File

CASE DISCUSSION

Your client is a cement manufacturer. The CEO is concerned that the revenues of this company have
He is aware that this trend can cause serious trouble to the company and has approached you for ad

Clarifying questions
Market supply/demand issues
Competitive activity
What expenses have reduced
DB Feedback
Framework

Discussion
Revenue 100 80
Cost 60 30
Profit 40 50

Avg
Life
Margin
Capacity

Channel partners Customer

Happy Product: Happy
Process + Cost: Discontent

Overall cost of the project will go

 Fixed cost
Variable cost

Operational

Production Warehousing

Man
Material
Machine
Method
come up with levers for improving EBITDA

t the revenues of this company have been dropping for the last 3-4 quarters. However, one surprising aspect is that profitabilit
any and has approached you for advice.

Product mix change?

Geographical
Marketing issue
Any change in distribution related issues?-margin/ benefits

BUSINESS MODEL What? How? Where?

TIMELINE 3-4 quarters

 ---short term
Only this company? Or to others as well?

CHANGES Product related changes???????? Process change???

is there technology that maybe is restricting production capacity while
are channel partners unhappy?

CEO:

We developed a product that lasts at least 1.5X longer compared to existing cement
At this same price as well
Company issue | Comp/ market no issue; Competitors are stil playing with the same products
No change in marketin spend
Customers (people like you and me who are building houses etc) are very happy
No supply side issues
Same channels

Old New
Rs 100 Rs 100
30 45
xyz xyz
1 Mn units 1 Mn units

User they earn less

Contractors/ laborers life difficult 2 days curing
4 days curing

Innocation in production
 Direct costs DM + DL + Mfg OH
Indirect costs

COST

Non-operational -expenses not incurred in running the business

Bad debts
Depreciation/ Amortization
Finance costs
Secondary

R&D
HR, Admin
Infra, Tech

Outbound logistics Sales After Sales

Mfg -> CFA -> SS -> Distributor -> Retailer

CFA: Clearing & Forwarding Agents

SS: Super Stockists
Distributor
Retailers

Better Penetration
RISK
sing aspect is that profitability is improving.

Technology that maybe is restricting the production while increasing margins

Product change? discontinued?
Price, volume
s?-margin/ benefits
ess change???
ting production capacity while increasing margins?

BETTER PRODUCT AT SAME PRICE

-1.5X longer

Does that mean any change in application process?????

ng the business
ng margins