Download - 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$e communicator
'.2.2 olerance for ambiguit(
-
8/13/2019 Consulting Preparation
2/22
'.3 !ere are two parts to a case:
'.3.1 0ec!anics # !ow (ou structure t!e case and go t!roug! t!e
anal(sis. !is is akin to creating an outline before writing a
paper.
'.3.2 Anal(sis # !ow (ou t!ink and sol$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$el issuesuestions t!at will need to be
answered during t!e course of t!e anal(sis. Do not be afraid to
take (our time and t!ink about !ow (ou plan to attack t!e case.
-
8/13/2019 Consulting Preparation
3/22
uccessful inter$iewees !a$e taken up to 1 minutes to t!ink
t!roug! t!e issues as !and. D;
-
8/13/2019 Consulting Preparation
4/22
+mpact of a consolidating industr( on a client compan(
!ould a compan( add capacit(&
-ow s!ould a client react to a new competitor&
!ould a client entere5it a newold market&
2 pecial Cases
2.1 Purpose
Assess t!e comfort le$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
-
8/13/2019 Consulting Preparation
5/22
# ales 7eneral Administrati$e 7A
;perating Profit
# +nterest /5pense
/arnings Before a5es /B
#a5es
-
8/13/2019 Consulting Preparation
6/22
- ubstitutes
- +ndustr( Competition
- Complements t!e forgotten force
3 Business (stem
3.1 6D
- Product De$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.
-
8/13/2019 Consulting Preparation
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$ice, t!e greater t!at
demand for t!e uantit( consumers will be willing to purc!ase i.e., demand, all
-
8/13/2019 Consulting Preparation
8/22
ot!er t!ings being eual. Con$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$or of producing anot!er item w!ic! offers better
-
8/13/2019 Consulting Preparation
9/22
production efficiencies will ultimatel( benefit bot! countries see also economies of
scale).
(lasticit$ 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$er a range of output. +f AC declines as output increases, so must t!e marginal
cost 0C. 0arginal cost is t!e cost of t!e last incremental unit of output.
!e relations!ip between AC and 0C can be summari)ed as follows:
0CKAC L /conomies of scale
0CLAC L Constant returns to scale
0CMAC L Diseconomies of scale
-
8/13/2019 Consulting Preparation
10/22
!e s!ape of t!e cost cur$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$enience e.g., Dell Computer.
-
8/13/2019 Consulting Preparation
11/22
C&stomer intimac$# 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.,
-
8/13/2019 Consulting Preparation
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$ard
Systems
%uman
Resource
Systems
Structure
Decision
Support
Systems
Vision
Orani&ation
Culture
Performance
-
8/13/2019 Consulting Preparation
13/22
Problems arise w!en t!ese se$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$erriding issues
t!at outweig! t!e products market performance.
-
8/13/2019 Consulting Preparation
14/22
Cas' Co$
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 $alue c!ain, and b( w!om&.
-
8/13/2019 Consulting Preparation
15/22
Company Infrasructure
Procurement
Information Systemsuman Resource (anaement
In!ound
*oistics Operations
Out!ound
*oistics
(ar)etin
+
Sales
Services
Support
,ctivities
Primary
,ctivities
Value C'ain
eneric )trategies 6Porter7
0ic!ael Porter suggests t!at business strategies can be classified as pursuing cost
leadership8 differentiation8 or foc&s. /ac! of t!ese strategies is described as
follows:
*verall Cost +eadership -ere t!e business works !ard to ac!ie$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#
-
8/13/2019 Consulting Preparation
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$e c!ange. 6eengineering is
-
8/13/2019 Consulting Preparation
17/22
defined b( 0ic!ael -ammer and ames C!amp( in Reenineerin the Corporation
as It!e fundamental ret!inking and radical redesign of business processes to
ac!ie$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$e
-
8/13/2019 Consulting Preparation
18/22
ad$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$el of
asset specificit(.
-
8/13/2019 Consulting Preparation
19/22
Profit L E 5 P#RC # =C
=et Present /al&e 6=P/7!e
-
8/13/2019 Consulting Preparation
20/22
1.7i$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/ -
8/13/2019 Consulting Preparation
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.
-
8/13/2019 Consulting Preparation
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.