Step 1
Step 2
•
Define question on which we need to
develop ideas
•
Define/verify focus metric
•
Disaggregate question into its
constituting elements (according to
focus metric definition)  via driver tree
•
•
•
Step 3
How to increase profits?
Increase profits from
existing activities (selling
contact lenses)
Increase profits from
selling contact lenses
in current markets
Increase
revenues
Sell more
contact lenses
Develop ideas on…
…how each lever can be influenced into
the desired direction
Sell contact lenses in
new markets
-
Identify “levers” (drivers which we can
influence)
Optimize
operational costs
Sell contact
lenses at a
higher Ø price
-
More marketing
-
-
New sales
channels
Enhance brand
perception
-
Decrease
package size
-
…
•
… how a threat posed to the drivers/levers
of your focus metric could be prevented
-
New sales
models (e.g.,
subscriptions)
•
…what could be possible reasons for a
change in the focus metric and its
drivers/levers
-
…
•
…Etc.
Increase profits by adding new
activities (selling new
products/services)
-
Identify
potentials
along value
chain
-
…
-
Identify
uncovered high
potential markets
with low access
hurdles
…
-
Identify new
products / services
which could leverage
existing asset base /
capabilities
-
…
WORKSHEET 3
Structuring Exercise 2
Please draft an initial structure for each of the below stated case questions. Prepare the drafts on
paper and then upload an electronic version (see technical instructions provided in the explanation
video/handout in Week 1).
Please do not set yourself a time limit for drafting these structures! Focus on accuracy rather than
speed at this stage!
If no concrete goal is stated, please make explicit your assumption!
1.
A contact lens manufacturer seeks to quadruple its profits in 2 years and seeks our advice. How will
you approach the problem?
2.
You walk into a senior consultant’s office and he tells you he has been thinking about writing a book
on “Business in China” and retiring from the consulting business. He wants to know if it is a good idea
and if he will make enough money to retire. What will you tell him?
3.
A global social cause foundation wants to launch a huge program to improve the level of primary
education in Western Africa. They have hired us to make actionable recommendations regarding how
to ensure the success of the program. How would you approach this question?
4.
The national revenue authority of an emerging country has hired consultants to help improving the
national tax income. The goal is to grow income by 3x over 10 years. What would you consider to help
the client think through the issue?
Step 1
Step 2
Step 3
•
Define question on which we need to
develop ideas
•
Define/verify focus metric
•
Disaggregate question into its
constituting elements (according to
focus metric definition)  via driver tree
•
How to increase
national tax income?
Increase income from
existing taxes
•
Develop ideas on…
•
…how each lever can be influenced into
the desired direction!
Prosecute tax
evaders harder
-
Identify untapped
potentials for taxation
(transactions or assets)
-
Scrutinize
negligent tax
debtors
-
…
-
Scrutinize
criminal tax debtors
-
…
Increase income from
current taxpayers
Tax type 1 (income tax,
consumption tax,
corporate tax, etc.)
Identify “levers” (drivers which we can
influence)
Increase tax rate/
tax progression
-
Identify viable
areas for tax rate
increases
-
…
Tax type n
…
Stimulate
tax base
-
Stimulate
economic activity,
employment, etc.
via economic policy
instruments
-
…
Introduce new taxes
•
Step 1
Step 2
Step 3
Define question on which we need to
develop ideas
•
Define/verify focus metric
•
Disaggregate question into its
constituting elements (according to
focus metric definition)  via driver tree
•
Identify “levers” (drivers which we can
influence)
•
Develop ideas on…
•
…how each lever can be influenced into
the desired direction
•
… how a threat posed to the drivers/levers
of your focus metric could be prevented
•
…what could be possible reasons for a
change in the focus metric and its
drivers/levers
•
…Etc.
How to improve
primary education
in West Africa?
How to address
financial reasons
why children are
not sent to school?
High costs of
school fees,
materials, etc.
•
Reduce school
fees for lowincome
families?
•
Establish/
facilitate
secondary
market for
school material?
•
…
How to address
logistical reasons why
children are not sent to
school?
Foregone
family
income
•
•
Subsidize
families who
send their
children to
school
How to increase
number of children
who go to school?
Schools far
away (esp.
rural areas)
Infrastructural
challenges
(equipment,
capacity, etc.)
•
Make school
network more
granular
•
Implement
school bus
system
•
Establish
“roaming
teachers”
•
…
•
•
…
How to address
cultural reasons why
children are not sent to
school?
•
Skepticism
towards
“western”
education
Ensure
•
sufficient
school
buildings,
furniture, etc.
•
Ensure
sufficient
teachers
…
•
Religious
concerns
•
Work with religious authority
figures
•
Work with local
community
•
leaders to promote
idea of sending
children to school
Show “success
stories”
Launch
awareness and
education
campaigns
…
…
“Should I retire and write a book on
Business in China?”
Step 1:
Core Question
Financial Sense?
Step 2:
Criterion
Capabilities?
- Able to write/publish such a book?
- Able to AFFORD it (e.g., afford investment
if self-published? Or able to sustain the time
until cash flows in?)
Expected income
per year ( €)
Remaining life
expectancy (years)
x
Income stream A
(e.g., book sales)
Step 3:
Analysis Design
Income stream B
(e.g., speaker gigs)
Revenue
Ø Revenue per
book sold
-
Publishing model
(self vs. publisher)
-
Branding
-
Regulation of
book prices
-
…
Operat. Cost
# of books
sold
Variable costs
# of books
produced
-
Future demand
-
Competing
books/content
-
Fixed costs
Prod. & publishing
cost per book
(depending on
publishing model!)
(depending on
publishing model!)
-
Printing
-
Marketing
Sales channels
-
Distribution
-
Fees
-
Marketing effort
-
…
-
…
-
…
>
Required lifetime
income (€)
Income stream N
(…)
Risks?
-
Business
Operational
Strategic
Regulatory