Feedback on structure

Question

Hi there,

I am having difficulties in setting up a structure for this case and was wondering if someone might share his/her opinion on how I tried to structure it..

I detailed my structure below, however, I am not sure if this is way too complicated and if there is a better way to structure it.

Any feedback is highly appreciated!

1) Increase in Rev $120m could be achieved by increasing sales with existing products or increasing sales of new products; in the increase sales existing products, it could come from either increasing the sunglasses or the prescribed glasses. And each of the two could be increased by higher volume or higher price. Based on this structure I would identify how rev is split between the two existing products, ask for market and competitor data in order to identify opportunities.

What do you think? Does this makes sense?

Thanks so much in advance.

Answer 1

Hi there,

Thanks for solving my case!

The initial structure for the case should be one for a profit increase, as the information to focus on revenues should be revealed later by the interviewer.

Once realized that you have to grow revenues (or if the interviewer adds that to the initial prompt for whatever reason) and you have clarified that you should grow or anyway prioritize the current industry (you may have options to grow also in different industries), using the division in current products or new products would work well.

Possible improvements in your structure:

You could have hypotheses on possible options to grow price and volume that you can check/compare with competitors, instead of comparing with competitors without any initial hypotheses
You could structure more clearly how to grow with new products
You could define criteria to choose between multiple options if several alternatives to grow are available

For any additional questions please feel free to PM me.

Best,

Francesco

Answer 2

Hi there,

I'm not quite sure you're totally clear on what a framework is.

In this particular case, the prompt is so light on detail that you could have a number of different frameworks entirely based on the clarifying questions you ask!

That said, this is a pretty classic profitability case, so having a Market, Competitor, Customer, and Company/Product bucket wouldn't be a terrible way to go about it, with a strong focus on the Total Contribution Margin profit tree.