consulting preparation

8/13/2019 Consulting Preparation

1/22

Consulting Preps: frameworks, cases and companies

Overview of Cases

1 A case is:

1.1 Description of a business situation

1.2 A problem

1.3 Based on a real situation

2 !e purpose of a case is to "udge problem#sol$ing abilities, t!e basis of

consulting.

3 %!at are consulting companies looking for in a candidate&

3.1 Problem solving skills

3.2 Personal impact

3.3 Leadership

3.4 Drive !spirations

' %!at are consulting companies looking for in a case answer&

'.1 Abilit( to t!ink t!roug! problems:

'.1.1 Clear, logical reasoning

'.1.2 Curious, probing mind candidate to engage in sol$ing t!e

problem

'.1.3 Abilit( to s(nt!esi)e

'.1.' Basic numerical agilit(

'.1.* +ntuiti$e business sense

'.1. -(pot!esis generation use !(pot!esis to dri$e t!inking andformulate uestions

'.2 Abilit( to uickl( build working relations!ips:

'.2.1 /ffecti$e communicator

'.2.2 olerance for ambiguit(


2/22

'.3 !ere are two parts to a case:

'.3.1 0ec!anics # !ow (ou structure t!e case and go t!roug! t!e

anal(sis. !is is akin to creating an outline before writing a

paper.

'.3.2 Anal(sis # !ow (ou t!ink and sol$e problems

'.' Bot! are important.

* A good approac!:

*.1 isten to introduction carefull(

*.2 Carefull( t!ink t!roug! t!e problem at !and

*.3 Ask one or two clarif(ing uestions, if necessar(

*.' tructure t!e problem, possibl( wit! a logic tree # enables one to

organi)e t!e data presented

*.* Pick one branc! to probe, de$elop !(pot!eses, ask for rele$ant facts,

defendrefine !(pot!eses, probe furt!er

*. Pick t!e second branc! ...

*.4 Put it all toget!er: tr( to answer t!e o$erall uestion

During t!e case, (ou want to communicate e5plicitl( w!at (ou want to do

wit! t!e case. 6emember t!at (ou are tr(ing to lead t!e inter$iewer t!roug!

(our problem sol$ing approac!. %riting a paper is a good analog( to sol$ing

a case. +n a paper, (ou first order (our t!oug!ts in an outline, creating a

framework to sol$e t!e case. 7o o$er t!e framework at a !ig! le$el wit! t!e

inter$iewer and t!en plunge into one area at a time. 8se interim conclusions

to sum up a section of anal(sis before mo$ing on to anot!er area.

4 ime management during t!e inter$iew is t!e inter$iewee9s responsibilit(.

uggested time allocation for a 2#2* minute inter$iew is as follows:

4.1 !e time spent structuring t!e problem s!ould a$erage about fi$e

minutes, but will $ar( depending on t!e topic and (our le$el of comfort

wit! t!e issue.

4.1.1 Plan to spend at leastt!ree minutes t!inking about t!e problem

and framing t!e top#le$el issuesuestions t!at will need to be

answered during t!e course of t!e anal(sis. Do not be afraid to

take (our time and t!ink about !ow (ou plan to attack t!e case.


3/22

uccessful inter$iewees !a$e taken up to 1 minutes to t!ink

t!roug! t!e issues as !and. D;


4/22

+mpact of a consolidating industr( on a client compan(

!ould a compan( add capacit(&

-ow s!ould a client react to a new competitor&

!ould a client entere5it a newold market&

2 pecial Cases

2.1 Purpose

Assess t!e comfort le$el wit! ambiguous problems

/$aluate creati$it(

/$aluate raw anal(tical !orsepower

est poise under pressure

2.2 (pes

%!( are man!ole co$ers round&

-ow man( golf balls are t!ere in t!is state&

%!at do (ou t!ink interest rates will do ne5t (ear&

%rameworks for Cases

General Models

1 =inancial =rameworks # for profitabilit( cases (ou s!ould e5plore costand

reven&es

1.1 +ncome tatement


5/22

# ales 7eneral Administrati$e 7A

;perating Profit

# +nterest /5pense

/arnings Before a5es /B

#a5es


6/22

- ubstitutes

- +ndustr( Competition

- Complements t!e forgotten force

3 Business (stem

3.1 6D

- Product De$elopment

- +nno$ation

- 6esponsi$eness

3.2 0anufacturing

- Cost

- Eualit(

- peed

- uppl(

3.3 0arketing

- Pricing

- Product

- Place

-Promotion

3.' Distribution

- Cost

- C!annel

' +ssue ree

'.1 Do not use t!is framework in an inter$iew wit!out practicing it a few

times before !and.

'.2 op#le$el identifies t!e !ig!est le$el issues t!at need to be answered

to sol$e t!e problem. 8se 0/C/ 0utuall( /5clusi$e and Collecti$el(

/5!austi$e to ensure t!at all issues are co$ered.

'.3 Break eac! le$el down into parts t!at are more manageable.

'.' =ocus on most important branc!es or components first.

'.* An e5ample of an issue tree is pro$ided wit! t!e C!ina =actor( case.


7/22

* =ramework for a Finger case like G-ow man( golf balls in Albuuerue&H

*.1 uppl( c!ain

*.1.1 6aw 0aterials

- %!o makes t!e plastic needed for golf balls&

- ;btain an estimate of uantit( of material supplied and workfrom t!ere.

*.2 Demand side

- %!o purc!ases golf balls&

- -ow man( golf balls do t!e( need eac! (ear&

Additional Models

#he %o&r C's

!e four C9s stands for customer, competition, cost and capabilities. !is model is

intended to ask t!e critical uestions in understanding t!e core business of an

organi)ation. !e model is more of a back#of#t!e en$elope sketc! t!an a detailed

anal(sis. =illing in t!ese categories can be a first, cursor( step in understanding a

gi$en compan( or industr(. Alt!oug! t!is model is unlikel( to produce re$olutionar(

insig!ts, it ma( !elp in defining a business b( breaking it down into $er( basic

components and looking for conflicting elements. !e model is difficult to use wit!

di$ersified companies and interests.

(conomics

tudents s!ould re$iew t!e basics of economic t!eor(. 0an( cases, especiall( t!e

strategic ones, !a$e a strong backing in basic economics so knowing t!e

fundamentals will gi$e t!e student a strong base from w!ic! to work. ome of t!e

more rele$ant concepts include:

)&ppl$ * DemandThe Supply Curve -!e !ig!er t!e price of a product or ser$ice, t!e greater t!e

uantit( of t!e item t!at will be produced, all ot!er t!ings being eual. upplier will

be willing to make more a$ailable i.e., suppl(. Con$ersel(, t!e lower t!e price of aproduct or ser$ice, t!e smaller t!e uantit( producers will be willing to make

a$ailable. Please remember t!at as t!e suppl( of one product increases, t!e suppl(

of anot!er product will decrease. %e li$e in a world wit! finite resources but

infinite demand.

The Demand Curve -!e lower t!e price of a product or ser$ice, t!e greater t!at

demand for t!e uantit( consumers will be willing to purc!ase i.e., demand, all


8/22

ot!er t!ings being eual. Con$ersel(, t!e !ig!er t!e price of a product or ser$ice,

t!e smaller t!e uantit( of goods consumers will be willing to purc!ase.

Price

Quantity

Demand

Supply

Law of Diminishing +arginal ,tilit$!is concept or economic IlawI states t!at t!e le$el of demand or IsatisfactionI

deri$ed from a product or ser$ice diminis!es wit! eac! additional unit consumed

until no furt!er benefit is percei$ed, wit!in a gi$en time frame.

Law of Diminishing -et&rns!is concept suggests t!at alt!oug! additional units of labor ma( contribute to

increased producti$it( in absolute numbers, eac! additional unit contributes

relati$el( less t!an t!e preceding unit to producti$it(.

Price

Quantity

Cost of

In uts

Value ofOutput

Comparative !dvantage

Comparati$e ad$antage states t!at it is in t!e best interest of a nation to import anitem from anot!er nation w!en it cannot produce t!e item as ine5pensi$el(. !e

concept of comparati$e ad$antage goes a step fart!er, contending t!at it ma( be to

a countr(Js ad$antage to import goods from ot!er nations e$en t!oug! t!e( ma( be

able to produce t!e goods less e5pensi$el( at !ome. !is is based upon t!e premise

t!at not producing t!e item in fa$or of producing anot!er item w!ic! offers better


9/22

production efficiencies will ultimatel( benefit bot! countries see also economies of

scale).

(lasticit$ of Demand!e degree to w!ic! demand for a product or ser$ice can be altered b( a c!ange in

price indicates t!e e5tent of t!e elasticit( of suc! demand. =or e5ample, a person

w!o seeks to purc!ase a particular brand and model of automobile ma( decide to

s!op competiti$el( from dealer to dealer for t!e lowest price. !is would

c!aracteri)e demand t!at is elasticin nature. -owe$er, t!ere are circumstances

w!ere t!e le$el of demand is not altered b( a c!ange in price. =or e5ample, a

diabetic will probabl( be willing to pa( as muc! mone( as !e or s!e !as to bu(

insulin, t!e medication t!at would sustain t!at indi$idualJs life. +n t!is case, t!e

demand is inelastic.

Cross /lasticit(: Percentage c!ange in uantit( demanded of one good in response

to a 1 percent c!ange in t!e price of a related good.

QxPy

x

y

x x

y y

y x

x y

E Q

P

Q Q

P PP QQ P

%

%

= = =

/

/

/E5P(is positi$e if t!e two goods are substitutes

/E5P(is negati$e if t!e two goods are complements

upplier /lasticit(: Percentage c!ange in t!e uantit( supplied in response to a 1

percent c!ange in price.

S

S S SE Q Q Q

P P / P= =

%

%

/

(conomies of )cale/conomies of scale e5ist w!en t!e a$erage cost AC declines as output increases,

o$er a range of output. +f AC declines as output increases, so must t!e marginal

cost 0C. 0arginal cost is t!e cost of t!e last incremental unit of output.

!e relations!ip between AC and 0C can be summari)ed as follows:

0CKAC L /conomies of scale

0CLAC L Constant returns to scale

0CMAC L Diseconomies of scale


10/22

!e s!ape of t!e cost cur$e is 8 s!aped. !e generall( accepted e5planation for

t!is is t!at AC initiall( declines because fi5ed costs are being spread o$er increasing

output and t!en e$entuall( increase as $ariable costs increase see law of

diminis!ing marginal returns. !e minimum efficient scale 0/ is t!e minimum

le$el on t!e a$erage cost cur$e. /conomies of scale are not limited tomanufacturing. 0arketing, 6D, and ot!er functions can reali)e economies of scale.

(conomies of )cope/conomies of scope e5ist if t!e firm reduces total production costs b( increasing t!e

$ariet( of acti$ities it performs. %!ereas economies of scale are usuall( defined in

terms of declining a$erage cost functions. +t is more customar( to define economies

of scope in terms of t!e relati$e total cost of producing a $ariet( of goods toget!er

in one firm. /conomies of scope ma( be ac!ie$ed b( Ile$eraging core

competenciesI across multiple business acti$ities. =or e5ample, it ma( make

economic sense for a manufacturer of tape to get into t!e business ofmanufacturing note pads wit! ad!esi$e backings as t!ere are commonalties in t!e

two businesses at man( points along t!e $alue c!ain.

Learning C&rve!e learning cur$e refers to cost ad$antages t!at flow from accumulated

e5perience t!roug! lower costs, !ig!er ualit( and more effecti$e pricing and

marketing. !e magnitude of learning benefits is e5pressed in terms of a Iprogress

ratio.I !e ratio is calculated as t!e unit cost after doubling cumulati$e production

di$ided b( t!e pre$ious cost C2C1. A ratio of less t!an one suggests t!at some

cost sa$ings due to learning is taking place. !e median appears to beappro5imatel( .@. !is implies t!at for t!e t(pical firm, a doubling of cumulati$e

output is associated wit! a 2N reduction in unit costs.

4Ps

Oellogg9s P!ilip Ootler de$eloped t!is model. +t stands for product, price, placement

i.e., distribution c!annels, andpromotion.!ese are t!e four critical dimensions in

marketing an( product or ser$ice.

/al&e Disciplines

=red %iersema and 0ic!ael rac( of CC +nde5, +nc. !a$e de$eloped a set of

strategic foci called t!e $alue disciplines (Harvard Business Revie,anuar(#

=ebruar( 1QQ3, pp. @'#Q3. !e disciplines are:

Operational e0cellence# Pro$ide customers wit! reliable products or ser$ices at

competiti$e prices and deli$ered wit! minimal difficult( or incon$enience, wit! t!e

goal of leading t!e industr( in price and con$enience e.g., Dell Computer.


11/22

C&stomer intimac$# egment and target markets precisel( and t!en tailor

offerings to matc! e5actl( t!e demands of t!ose nic!es, combining customer

knowledge wit! operational fle5ibilit( to respond uickl( to almost an( need e.g.,

-ome Depot.

Prod&ct leadership# ;ffer customers leading#edge products and ser$ices t!at

consistentl( en!ance t!e customerJs use or application of t!e product, t!ereb(

making ri$alsJ goods obsolete e.g.,


12/22

conditions of sale. Bu(ers gain strengt! t!roug! t!eir s!eer si)e and w!en t!e

purc!ase is critical to t!e seller9s success.

Benefit of Complements !is is considered a si5t! force t!at is not directl(

captured in Porter9s model. !is force is t!e opposite of t!e Threat of Su&stitutes.%!en t!e economics are promising for a complementar( product, t!ere is a

spillo$er effect on t!e primar( product.

Industry

Competitors

Rivalry amonexistin firms

Suppliers

Su!stitutes

Potential

Entrants

"uyers

#ive #orcesComplement

)tar DiagramOrganiational !nal$sis

+n doing an organi)ational anal(sis, one s!ould consider all se$en components of

t!e organi)ational unit. Rision s!ould define trateg(. trateg( determines

tructure and Decision upport (stems t!at are reuired to make t!e organi)ation

function. !e 6eward (stems must reinforce w!at (ou are tr(ing to accomplis!

strategicall( and t!e -uman 6esource (stems must select, recruit and de$elop t!e

personnel t!e organi)ation needs to accomplis! its ob"ecti$es. Corporate Culture

must reinforce all se$en components.

Stratey

Re$ard

Systems

%uman

Resource

Systems

Structure

Decision

Support

Systems

Vision

Orani&ation

Culture

Performance


13/22

Problems arise w!en t!ese se$en components do not reinforce one anot!er. =or

e5ample, managers will !a$e trouble if t!e( are in a decentrali)ed structure w!ile

information and planning s(stems are centrali)ed. %!en considering c!ange, all

se$en components must be considered. +f one component is c!anged, it is most

likel( t!at t!e ot!er components will !a$e to be c!anged to be consistent wit! eac!ot!er.

#he C rowth5)hare +atri0

!e BC7 7rowt!#!are 0atri5 pro$ides a $aluable framework t!at enables us to

identif( and e$aluate t!e compan(Js products relati$e to market s!are and t!e

e5tent to w!ic! t!e market, as a w!ole, is e5panding or contracting. !e model can

also be utili)ed to anal()e a portfolio of companies !eld b( a single organi)ation b(

classif(ing t!em wit!in t!e matri5S eac! as independentl( !eld businesses.

Products or categories businesses are as follows:

Star ' product wit! !ig! market s!are in a !ig!#growt! marketS e$er( mot!erJs

pra(er.

"ro&lem Child also called IEuestion 0arksI T A product wit! low market s!are in

a !ig!#growt! marketS mot!er is concerned because !er c!ild is not growing as

anticipated. Anot!er perspecti$e is t!at t!e manager s!ouldnJt be uite so

concerned if t!e product !as car$ed out a little nic!e t!at is imper$ious to t!e

competitionS ma(be slow (et consistent growt! isnJt so bad.

Cash Co ' product wit! !ig! market s!are in a low#growt! market. ince t!e

cow is generating milk i.e., cas!, t!e marketer ma( elect to Imilk t!e cow dr(,I soto speak, accelerating cas! flow and, not coincidentall(, t!e product life c(cle.

Do ' A product wit! low market s!are in a low#growt! market. +n t!is sense, IdogI

is certainl( not ImanJs best friend.I 6at!er, it is analogous to a IbombI i.e.,

somet!ing t!at fails miserabl( or to a IlemonI i.e., somet!ing t!at is defecti$e or

undesirable. !erefore an astute business manager would want to drop a GdogH

from t!e product line, unless t!ere are some e5tremel( important o$erriding issues

t!at outweig! t!e products market performance.


14/22

Cas' Co$

Star

Pro!lem

C'ild

Do

(ar)etS'are

Profita!ility

i

*o$

*o$i

/al&e ChainA business manager must understand t!e internal relatedness of t!e man(

acti$ities in$ol$ed in t!e production of a product or ser$ice. /$er( business unit is a

collection of discrete acti$ities ranging from sales to accounting t!at allow it to

compete. 0ic!ael Porter calls t!ese acti$ities G$alue acti$ities.H +t is at t!is le$el, not

t!e compan( as a w!ole, t!at t!e unit ac!ie$es competiti$e ad$antage.

!e $alue acti$ities are grouped into nine categories, as indicated in t!e e5!ibit

below.

"rimary acti$ities create t!e product or ser$ice, deli$er it to t!e market, create a

demand for t!e product, and pro$ide after#sale support. !e categories of primar(acti$ities are inbound logistics, operations, outbound logistics, marketing and sales,

and ser$ice.

Support acti$ities pro$ide t!e input and infrastructure t!at allow t!e primar(

acti$ities to take place. !e categories are compan( infrastructure, !uman resource

management, information s(stems, and procurement.

Ralue c!ain anal(sis is useful in discerning possible s(nergies among $arious units

of an organi)ation e.g., s!ared procurement. Ralue c!ain anal(sis is also !elpful

in determining w!ic! $alue acti$ities are best outsourced and w!ic! are best

de$eloped internall(. =inall(, $alue c!ain anal(sis pro$ides a structure t!atpro$ides great insig!t into t!e flow of acti$ities t!at lead to t!e creation and

distribution of a particular product or ser$ice. e.g., %!at $alue is added to t!e

manufacture and sale of gasoline at eac! point in t!e $alue c!ain, and b( w!om&.


15/22

Company Infrasructure

Procurement

Information Systemsuman Resource (anaement

In!ound

*oistics Operations

Out!ound

*oistics

(ar)etin

+

Sales

Services

Support

,ctivities

Primary

,ctivities

Value C'ain

eneric )trategies 6Porter7

0ic!ael Porter suggests t!at business strategies can be classified as pursuing cost

leadership8 differentiation8 or foc&s. /ac! of t!ese strategies is described as

follows:

*verall Cost +eadership -ere t!e business works !ard to ac!ie$e t!e lowest

production and distribution costs, so t!at it can price its products lower t!an its

competitors and win a large market s!are. =irms pursuing t!is strateg( must be

good at engineering, purc!asing, manufacturing, and p!(sical distribution of t!e

products. e5as +nstruments is an e5cellent implementer of t!is strateg(. !e

problem wit! t!is strateg( is t!at ot!er firms will usuall( emerge wit! still lower

costs from t!e =ar /ast, for e5ample and !urt t!e film t!at rested its w!ole future

on being t!e lowest cost producer. !e real ke( in t!is strateg( is for t!e firm to

ac!ie$e t!e lowest costs among t!ose competitors adopting a similar differentiation

or focus strateg(, and remaining so in t!e long run.

Differentiation: -ere t!e business concentrates on ac!ie$ing superior performance

in an important customer benefit area $alued b( a large part of t!e market. ;ne

e5ample is if t!e compan( stri$es to be t!e ser$ice leader in its industr(, t!e

!ig!est ualit( producer, t!e st(le leader, t!e tec!nolog( leader, and so onS but it is

!ardl( possible to be all of t!ese t!ings. !e firm culti$ates t!ose strengt!s t!at will

gi$e it a competiti$e ad$antage in one or more benefits. !us t!e firm seeking

ualit( leaders!ip must make or bu( t!e best components, put t!em toget!er

e5pertl(, inspect t!em carefull(. !is !as been CanonJs strateg( in t!e cop(#mac!ine field.

ocus -ere t!e business focuses on one or more narrow market segments rat!er

t!an going after a large market. !e firm gets to know t!e needs of t!ese segments

and pursues eit!er cost leaders!ip or a form of differentiation wit!in t!e target

segment. !us, Annstroll$ 6ubber !as speciali)ed in making superior tires for farm#


16/22

euipment $e!icles and recreational $e!icles and keeps looking for new nic!es to

ser$e.

According to Porter, t!ose firms pursuing t!e same strateg( directed to t!e same

market or market segment constitute a strateic roup.!e firm t!at carries offt!at strateg( best will make t!e most profits. !us, t!e lowest#cost firm among

t!ose pursuing a low#cost strateg( will do t!e best. Porter suggests t!at firms t!at

do not pursue a clear strateg( # Gmiddle#of#t!e#roadersI ## do t!e worst.

)trategic #$pes 6+iles * )now7

0iles and now !a$e di$ided strategic options into four categories in contrast to

PorterJs t!ree 7eneric trategies. A firm can onl( pursue one of t!ese strategies at

a time, but it is common for a compan( to s!ift from one strateg( to anot!er as its

situation, and t!e industr(, c!anges.

Defender'!ose firms t!at !a$e a leaders!ip s!are of t!e market will oftenconcentrate on sta$ing off t!e competition, mo$ing to erect as man( barriers to

entr( as possible. !e( are closel( related to PorterJs ow Cost Producers,

le$eraging t!eir ad$anced position along t!e learning cur$e and t!eir name

recognition to maintain a superior market position.

Reactor' uc! companies are second#mo$ers, letting ot!ers s!ow t!em t!e wa( to

success. !e( react to c!anges in t!e market and mo$es of t!eir competitors and

so must maintain fle5ibilit(. %!ile t!is strateg( ma( be profitable in t!e s!ort run,

its long#term $alue is uestionable.

nalyer' Anal()ers pick apart t!e market $er( carefull( looking for nic!es anddemandsuppl( gaps. !is strateg( is akin to PorterJs focused companies. !ese

firms are not necessaril( inno$ators, but instead concentrate t!eir efforts in $er(

carefull( and narrowl( defined efforts.

"rospectorT !ese firms are t!e first#mo$ers and t!e inno$ators. !is is a !ig!#risk

strategic a$enue to follow, but t!ose w!o are successful can c!ange t!e wa( t!e

game is pla(ed and create $er( strong competiti$e ad$antages.

Other 9e$ Concepts

-eengineeringPopulari)ed as Business Process 6eengineering BP6, reengineering refers to

breaking down business processes and rein$enting t!em to work more efficientl(,

cutting out wasted steps and en!ancing communication. Business processes are

often replete wit! implicit rules t!at !amper t!e wa( in w!ic! work s!ould trul( be

done. =urt!er, processes are often $iewed as discrete tasks, a !abit t!at pre$ents

management from making frame breaking, co!esi$e c!ange. 6eengineering is


17/22

defined b( 0ic!ael -ammer and ames C!amp( in Reenineerin the Corporation

as It!e fundamental ret!inking and radical redesign of business processes to

ac!ie$e dramatic impro$ements in critical contemporar( measures of performance

suc! as cost, ualit(, ser$ice, and speed.I

#otal :&alit$ +anagement 6#:+7E0 refers to t!e practice of placing an o$erriding management ob"ecti$e on

impro$ing ualit(. %!ereas E0 is more of a p!ilosop!( t!an a specific strateg(,

t!e stated ob"ecti$e is often I)ero defectsI or Gsi5 igmas.H A !ig!er le$el of ualit(

is linked to increased customer satisfaction and t!us leads to t!e abilit( to c!arge a

!ig!er price at w!at is often a lower cost. +t is important to ensure t!at t!e added

benefit from incrementall( increasing ualit( outweig!s t!e added cost associated

wit! t!e ualit( impro$ement effort. E0 was initiall( limited to t!e manufacturing

sector but !as more recentl( been applied effecti$el( to ser$ice businesses as well.

9e$ )&ccess %actors/ssential success factors are t!ose factors t!at are most critical in determining a

firmJs abilit( to sur$i$e and prosper. Attributes of essential success factors are t!e

following:

- 0anagement can influence t!emS

- !e( impact t!e o$erall competiti$e position of t!e firm in t!e industr(

- !e( are an interaction of c!aracteristics of an industr( and eac! firmJsstrategies.

-A firm must suppl( w!at customers want and sur$i$e competition fromot!er firms

!erefore, management s!ould ask:

- %!at do customers want&

- %!at does t!e firm need to do to sur$i$e competition&

/ssential success factors are t!ose factors t!at lead to t!e answers to t!e abo$e

uestions. =or e5ample, for wood products, essential success factors are owning

large forests and ma5imi)ing t!e (ield of t!ose forests.

Core CompetenciesA concept populari)ed b( Professors 7ar( -amel and C.O. Pra!alad, core

competencies pro$ide potential access to a wide $ariet( of markets, make a

significant contribution to t!e percei$ed customer benefits, and are difficult for

competitors to imitate. !e classic e5ample of a compan( t!at !as effecti$el(

le$eraged its core competencies is -onda, w!ic! !as gained a competiti$e


18/22

ad$antage in numerous product markets t!roug! its focus on le$eraging its skill at

making engines.

/ertical ;ntegration+n some industries companies find it ad$antageous to integrate backward towards

t!eir suppliers or forward towards t!eir customers. Rertical integration makes t!e

most sense w!en a compan( wants greater control of a c!annel t!at !as ma"or

impact on its product cost or w!en t!e e5isting relations!ip in$ol$es a !ig! le$el of

asset specificit(.


19/22

Profit L E 5 P#RC # =C

=et Present /al&e 6=P/7!e


20/22

1.7i$e me an e5ample of w!ere (ou did somet!ing unpopular and !ad to stand upfor (ourself at work.

11.%!ere do (ou see (ourself in fi$e (ears&

12.Describe a situation w!ere (ou !ad to present orall( to an important group ofpeople.

-eso&rces?

http?www.weffeet.com.

http.www.hbsp.harvard.ed&.

#he )kills in Demand

Consulting firm inter$iews t(picall( in$ol$e a combination of general background

uestions, a case uestion and uestions about (our past be!a$ior t!e muc!

dreaded be!a$ioral inter$iew approac!. !ere are, of course, man( different

approac!es to inter$iewing and, for t!at matter, to being inter$iewed. But t!e

bottom line is t!at firms are screening for skills t!at matc! t!eir needs. +t is $itall(

important t!at (ou make e$er( effort to understand w!at t!ese skills are before (ou

step into t!e inter$iew room.

Common skills on inter$iewer c!eck lists include...

)kill @1? ! Passion for ;deas.?ou canJt eat w!at a consulting firm makes. ?ou

canJt dri$e it. ?ou canJt smell it. !e product is an idea, an insig!t, a suggestion, a

wa( of t!inking. 8ltimatel(, consulting firms are not!ing more t!an repositories of

pure !uman capital. !is means t!at t!eir most important asset !as to be t!e abilit(

to generate rele$ant ideas t!roug! rigorous t!inking and careful researc!. -ence

t!e fren)( to !ire t!e best and t!e brig!test of AmericaJs business sc!ools. !is

intellectual focus of consulting is clearl( important in deciding w!et!er (ou would

do well in t!e field. A good consultant !as to be a great t!inker wit! a passion for

ideas. ?ou need to be t!e t(pe t!at does well in sc!ool and likes it. ?ou need to

en"o( problem #diagnosis, problem#framing and problem#sol$ing.

+f (ou find (ourself struggling wit! t!e academic#side of business sc!ool, gettingstuck on cases, disliking writing, but e5celling along ot!er dimensions e.g. !uman

interaction or entrepreneurialism (ou probabl( s!ould not be a consultant. ?ou

ma( $er( well get a "ob offer an(wa(. =irms ma( !ire (ou opportunisticall(, knowing

t!at t!e( (ou can generate more $alue for t!em t!an (ou are being paid. But

ad$ancing and leading ma( be a different matter altoget!er.
http://www.weffeet.com/http://www.weffeet.com/


21/22

+ would add t!at firms arenJt nearl( as pedigree#sensiti$e as some seem to t!ink.

eaders of some of t!e most prominent firms in t!e consulting profession !a$e

made it wit! degrees from institutions far below t!e top#ranked sc!ools. Pedigree

can neit!er guarantee one success nor condemn one to failure. =or t!at matter, t!e

0BA degree itself need not be necessar(. A number of firms are !iring persons wit!ot!er degree backgrounds e.g. law, engineering, public administration, medicine.

0cOinse(, in particular, !as recentl( been aggressi$e in its pursuit of attorne(s,

P!Ds and t!e like. + guess s!eepskin is s!eepskin... And, of course, man(

undergraduate students enter consulting, often in two or t!ree (ear programs w!ic!

are e5pected to be followed b( a stint at business sc!ool.

)kill @2? ! Passion for Client )ervice. %it! all of t!e mone( being t!rown

around b( t!e consulting firms t!ese da(s, it can be eas( to get into t!e profession

for t!e wrong reason. After all is said and done, consulting is a ser$ice profession

and most firms screen carefull( for commitment to ot!ers and abilit( to e5cel in

meeting client needs. As a consultant (ou will alwa(s be working to !elp ot!ers.

?our abilit( to ser$e clients will determine (our success and t!e prospects of (our

emplo(er. %!ile intangible, a personal commitment to e5cel in meeting t!e needs

of (our clients is $ital to en"o(ing t!e profession. +n a recent letter publis!ed b(

0itc!ell 0adison 7roup, a seasoned e5#0cOinse( consultant put it t!is wa(: I+t is

onl( t!roug! personal e5cellence t!at t!is profession becomes trul( en"o(able.

!ose w!o demonstrate superior skills gain personal control earl( in t!eir careers.

!ese indi$iduals are in suc! demand t!at, at an( point in time, t!e( !a$e

numerous options to c!oose from. !e( t(picall( become engagement managers

sooner, and tend to set t!e pace for t!eir teams. !roug! t!eir intellectual

leaders!ip t!e( gain respect from t!e clients, t!e partners and t!eir teammates. +na business world w!ere institutional lo(alt( is rare, t!e indi$idual needs to e5cel and

generate !is or !er own marketabilit(. !e result is t!at t!e institution needs t!e

indi$idual, not t!e re$erse. ;$er t!e (ears, + !a$e obser$ed t!at unfriendl( clients

become attenti$e w!en listening to people of e5cellence because t!eir contribution

is uniue. !ose w!o ac!ie$e e5cellence feel great about t!emsel$es and are more

likel( to find t!e consulting e5perience a pat! to fulfillment. !e financial rewards

become window dressing and t!e !ig! of t!e e5perience becomes t!e drug of first

c!oice.I

)kill @3? ! Passion for People. A consultant once told me t!at some of t!e most

fulfilling relations!ips of !is life were wit! clients.


22/22

!a$e to connect. -owe$er (ou accomplis! t!is, w!et!er it be b( c!arm, !umor,

listening or !ard#work, itJs $ital t!at (ou en"o(, understand and communicate wit!

clients. Consulting firm inter$iewers are looking for people t!at t!e(Jd like to work

wit! t!emsel$es. +tJs onl( !uman.o, itJs an odd admi5ture in demand at t!e

consulting firms. mart, likable people w!o are good at !elping ot!ers.

consulting preparation

Documents