Consultancy Case

Crack the Case

E(P=R-C)M

E: External Factors

P: Profitability – decrease in revenue, cost going up

R: Revenue

C: Cost

M: Marketing

Profit: Revenue, Cost

Revenue: Volume, Price

Cost: Variable Cost and Fixed Cost

Volume (Market Size, Market Share)

Market Share – Competition (Aim: Can I grab something from my competitor)

- Sustainability of current products

- Distribution Channels

- How regulations might affect my products market share

- Quality provider

- Capacity the company can produce

- Pattern analysis

Price – How the price is changing – Factors affecting the cost

Fixed Cost – Long term assets – buildings, equipment, SGNA,

Variable Cost – product that the company sells, material cost, employee salary, labor cost, transportation cost, taxes, commissions, overhead cost

 Benchmark --> Ways to save cost:

Savings:

- Can we outsource or lease

- Existing contracts – renegotiate

- Buy in bulk - volume discounts

- Reduce shipping cost

- Cross train

- Relocate manufacturing

- Cheaper Labor

- Improve technology for process improvement

- Decrease the labor working hours

- Change the product mix – analyze trends for future prediction

Note: When you are new to the market it might not have any benchmark. But if it is expanding on current mark, we can ask for the bench mark.

Growth Framework:

Client:

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