St. Olaf Management Consulting Group September 9, 2013 Info Session

Agenda Unpack Management Consulting Purpose of the group Uncover the application & interview process – Case Interviews Meeting Schedule & Resources Assign prep-work

What is Management Consulting? Building the capabilities of clients Adding value to the client’s business through strategy development & problem-solving Develop your own answer to this question

Purpose of this group Drive awareness of careers in consulting Prepare students for case interviews Provide networking opportunities See Piper calendar for recruiting events

Applications Know when applications are due!!!! Review your resume with the Piper center Requirements to apply GPA > 3.7 Any and all types of majors What the recruiters look for… Demonstration of leadership Analytical skills Teamwork

Well-written Resumes Active language Well-organized Managed, created, led, developed, organized, formed Well-organized Tailored towards business Quantify success E.g. Led a team of 6 members to develop a marketing strategy for product X

Networking Networking needed for your resume to be read Develop contacts through recruiting events Follow-up with an email Set-up a phone call Be assertive!

Interviews Process Structure Two first round interviews Two final round interviews Structure Diagnostic Prepare stories to draw from Research firm Case

Cracking the Case: Structure Interviewer presents case scenario Identify the type of scenario e.g. profit & loss, cost reduction, merger & acquisition Outline strategy Materials provided by interviewer throughout the case e.g. graphs, profit & loss sheet, data set Solution/Summarize the case

Cracking the Case: Steps to Succeed PRACTICE Develop your own strategy/routine for each case scenario Build confidence Keep a Case Journal Review what you learned , mistakes, areas you would have done differently Review business terms Be confident with math skills Utilize resources Case in Point Additional materials

Cracking the Case: Practice Schedule Schedule practice cases with peers Sign-up for a time slot with me Schedule one practice case with an associate or consultant from a firm

Tips for Successful Case Practices Receiving case Provide interviewer with case ahead of time Review strategies for all case scenarios Interviewer Look through the case ahead of time Let the interviewee drive the case – if they get stuck, offer some guidance to steer them on course At the end of the case, ask them to summarize the case Give the interviewee feedback – strengths & areas for improvement

Prep-work Get a copy of Case in Point Memorize strategies Read a couple of cases to familiarize yourself with structure Practice ALOUD the case starts Memorize strategies See appendix

Appendix: Case Strategies Top 5 Improve Bottom Line: Profits Reduce Costs Entering New Market M&A (merger & acquisition) Growth Strategies

Case Strategies Remainder Developing New Product Increasing Sales Pricing Strategy Competitive Response Turnarounds Industry Analysis

Improve Bottom Line E = (P = R-C)M Economy = (Profit = Revenue – cost)*Market Start big & work in – is this an economy or market wide problem? If no, move in to the revenue & cost structure Profit Revenue Price Volume Identify major streams Change in % of total revenue over time Costs Identify major costs Benchmark agst. competitors

Reduce Costs Assessment Internal cost analysis External cost analysis Cost breakdown – any irregularities? Benchmark agst. competitors Internal cost analysis Union wages Suppliers Raw materials Economies of scale External cost analysis Economy wide problem? Interest rates Gov’t regulations Transport/shipping strikes Solutions Labor Cross-train workers Across the board pay cuts Change to 4, 10 hour work days Production Invest in technology Consolidate production space to gain scale Flexible product lines Just in time manufacturing – reduce inventories Outsource Renegotiate with suppliers Import parts

Entering a New Market Assessment Current market Decision to enter: CBA State of current market Investigate new market Current market Major players – market share Product differentiation Barriers to entry? Decision to enter: CBA Start from scratch Acquisition Joint venture

Growth Strategies Assessment Strategies Increase distribution channels Industry Growing? Competition Prices in relation to comp. Identify segment of business with highest growth potential Strategies Increase distribution channels Increase product line Invest in major marketing campaign Diversify products/services Acquire competition

Merger & Acquisition Objective Acquisition costs Due Diligence/Risks Boost Brand image Pre-empt competition ***Synergies Cost savings Distribution channel expansion Acquisition costs Fair Price? How will it be financed? Due Diligence/Risks Shape of economy Market leader? Profit margins Competitive response

Developing New Product What’s special/proprietary about it? Similar/substitutes available? Adv./Disadv. Fit in with product line? Customers Target customers? How to reach them? How do we retain them? Market Strategy Does it affect product line? **Canibalize an existing product? Competitive Response Enter a new market? Finance Best allocation of funds