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Could someone help me with a high level framework for this prompt?

Business Operations Strategy Prompt - Part 1
Your client is a leading global player in the pharmaceutical market. Its sales in Europe for Valvo, a drug used to treat a type of heart disease, are deteriorating.
You have been hired to understand why sales are deteriorating and to recommend actions to overcome these factors.

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Top answer
Hagen
Coach
edited on Jan 20, 2025
#1 recommended coach | >95% success rate | 8+ years consulting, 8+ years coaching and 7+ years interviewing experience

Hi Maria,

I would be happy to share my thoughts on your question:

  • First of all, can you please provide a proposal that I can review? There is no point in coaches presenting their approaches when it is you who is currently preparing for the interviews and wants to learn how to do it.
  • Moreover, and contrary to what other coaches have said, you need to first understand what aspect is causing revenues to decline, then identify the root cause of that aspect's behavior, and finally brainstorm initiatives to turn the situation around.

You can find more on this topic here: How to succeed in the final interview round.

If you would like a more detailed discussion on how to best prepare for your upcoming pre-interview assessments and/or interviews, please don't hesitate to contact me directly.

Best,

Hagen

Evelina
Coach
on Jan 19, 2025
EY-Parthenon (6 years) l Ex BCG l 97% success rate l 30% off first session l free 15' intro call l LBS

Hi Maria,

I suggest the below framework/structure to crack this case;

1. Market Analysis
    •    Industry Trends: Is the cardiovascular drug market shrinking? Are there policy or regulatory changes affecting sales?
    •    Competitor Landscape: How does Valvo compare to competitors in efficacy, branding, or availability? Are new entrants disrupting the market?
    •    Customer Needs: Are patient or provider preferences shifting toward alternative treatments or generics?

2. Product Performance
    •    Efficacy and Safety: Are there concerns about Valvo’s effectiveness or safety profile?
    •    Differentiation: Does Valvo have a clear competitive advantage or address unmet needs?

3. Sales and Distribution Strategy
    •    Salesforce Effectiveness: Are there challenges in engaging key decision-makers or aligning incentives?
    •    Distribution Channels: Are there bottlenecks or inefficiencies in reaching pharmacies and hospitals?

4. Marketing and Awareness
    •    Brand Positioning: Is Valvo effectively differentiated and well-perceived by stakeholders?
    •    Awareness Campaigns: Are providers and patients adequately educated about Valvo’s benefits?

5. Regulatory and External Factors
    •    Regulations: Are stricter guidelines or approvals impacting prescriptions?
    •    Macroeconomic Factors: Are healthcare budget cuts or economic shifts affecting sales?

Next Steps
    •    Collect data on market trends, competitors, and internal performance.
    •    Identify root causes and prioritize actions such as salesforce optimization, marketing initiatives, or operational improvements.

Please DM me if you'd like more details / practice more case frameworks.

Best,
Evelina 

Alessa
Coach
on Jan 20, 2025
xMcKinsey & Company | xBCG | +200 individual & group coachings | feel free to schedule a 15 min intro call for free

Hey Maria! I would add some ideas: 

  1. Market & Competitive Dynamics
    • Changes in regulatory policies affecting drug pricing or reimbursement?
    • Entry of new competitors or generics disrupting market share?
    • Shifts in prescribing patterns by cardiologists or general practitioners?
    • Evolving patient preferences or trust in alternative treatments?
  2. Internal Commercial Performance
    • Salesforce effectiveness: Are reps targeting the right stakeholders (doctors, hospitals, insurers)?
    • Marketing and branding efforts: Has there been a shift in messaging, positioning, or channel focus?
    • Pricing and market access strategy: Are discounts, rebates, or partnerships effectively utilized?
    • Supply chain issues leading to stockouts or distribution gaps?
  3. Stakeholder Sentiment & Engagement
    • Physician perception: Are they seeing better outcomes with alternatives?
    • Patient adherence: Are patients switching due to side effects, affordability, or convenience?
    • Payer dynamics: Are insurance companies or government bodies favoring competitors?
    • Key opinion leaders (KOLs): Are influential doctors still endorsing Valvo?
  4. Innovation & Lifecycle Management
    • Has there been a loss of differentiation due to newer, more innovative treatments?
    • Any patent cliffs or pending regulatory changes that are impacting perception?
    • Potential for line extensions (new indications, combinations, or formulations)?
  5. Execution Plan
    • Quick wins: Immediate tactics to stabilize sales (targeted marketing, strategic pricing).
    • Mid-term actions: Strengthening physician engagement and payer negotiations.
    • Long-term strategy: R&D investment, geographic expansion, or partnerships for sustained growth.

Alessa

Nikita
Coach
edited on Jan 22, 2025
MBB & Tier2 preparation | 100+ offers | 7 years coaching | 2000+ sessions

Hey Maria,

Ideally, if you provide your own version of the structure to comment on first.

Agree with Hagen here: it's bad practice to use a qualitative framework for a quantitative problem

Firstly, you need to figure out which mathematical driver is causing revenues to decline (price / quantity / product mix).

Then you´ll need to dive into CJM (Customer Journey Map) to figure out at which stage there´s a problem. Then deep dive into qualitative factors at this stage.

Good luck,
Nick

Thabang
Coach
on Feb 01, 2025
Ex-McKinsey Consultant | McKinsey Top Coach & Interviewer | Special Offer: Buy 1 Session Get 1 Free (Limited time!)

Hey there, 

Just to add on to what has already been said, I'd also clarify with the interviewer if we should consider supply side challenges (i.e. maybe drug production has dropped and this could be the reason for reduction in sales)

Then on the demand side, definitely the way to go with this is to break down sales into its (quantitative) drivers, and offer an expansive set of possibilities within each driver. 

Please try avoid doing a random set of analysis that is not directly linked to identifying root causes of revenue decline. 

All the best

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