Hello hello everyone!
I hope you are doing great. This week's assignment is about developing the structured
mindset to approach a problem statement in any consulting case.
I the week forwards, we will start taking the key consulting frameworks one by one.
But, before you consume that - put on thinking hats and apply the current learnings to
answer the below questions Submit the decision tree framework for the below problems 1. A brick-and-mortar cycle shop in Delhi is experiencing declining revenues and
wants to explore growth opportunities. What is causing this decline and how to
approach the growth?
Solution-----Revenue going down, it could be due to cost going up or profits going
down.
Revenue(-)
# units sold
(-)
Cost (+)
Variable
cost(+)
Profits(-)
While we assume that revenue is declining due to either rise in cost or profits
margin decreasing.
Lets take cost is increasing which is
Cost=#units&(fixed+variable cost)
Since mostly the fixed cost is increases because of less availability of Raw
material etc
Since both fixed and variable cost seems to be increasing in recent market.
Revenue is declining because increase in # units sold which is why you need to
focus on availability of vehicles which is either either electric or motor based
which can be sold to recent trends.
2. ABC clothing is planning to acquire BBY's online clothing marketplace. Should
they do it?
Solution--What are the ABC current revenue & profits.
Does ABC is looking to acquire to expand it clothing market space or what?
What portion of budget does ABC put to acquire the BBY’s
What is BBY’s current profit margin and turnover?
ABC profit margin > BBY revenue , then it could be acquired.
Since ABC is already profit declining ,it shall not purchase BBY for instance
instead should look for other competing stores to merge with to expand its
marketspace.
Please ensure that your submissions are not generic but tailored to the question at
hand.
Task 2 Add your hypothesis to each of the lines of the decision tree and be ready to narrate
the same during our feedback session.
All the best and see you soon!