CVA

Economics and Management student – Not only does that mean I have an interest in business, finance, policy etc but also problem solving

I like to be challenged and learn – always take opportunities to do so

I’m at my best when I’m under pressure working with lots of other hardworking people

·       Strategy Boutique – Since 1987

·       Mission – help COEs manage the Value flow of their business

·       Philosophy – Customer Centricity

o   Driving customer-centric value, however, demands a deep understanding not only of the customer, but also of the quantified cost and economic implications of meeting those needs.

o   Value is only sustainable if it “flows” to all stakeholders

·       Core philosophy – customer-centricity – approach makes sense to me

·       International industry opportunity -excited about lots of different things = opportunity to gain range of experience and tackle a range of problems

·       Focus on training and learning at all levels

International exposure and variety of work

Besides the benefits of being a global strategy boutique, we deliver our products in a very differentiated way, by combining :

• Creativity & Rigour
• Industry high-level vision & detailed technical expertise 
• In-depth analysis & pragmatic outputs
• Sophisticated frameworks & easy-to-action results

3 products – MOVE, PRIME, LEAD

MOVE  -  Market Oriented Value Enhancement – companies reach full potential of their existing footprints (markets, customers, products, services) to deliver quick tangible financial upsides without any large investments, break-through innovations or risky strategic moves.

PRIME - PRoductivity IMprovEment  -goes beyond cost reduction to address all levers of the productivity equation (revenues, costs and capital) with an objective of short-term results and long-term sustainability and with value to the customer as the primary driver.

LEAD - Lighten Empower Accelerate Deliver is a unique set of products that covers all steps of the leadership chain from the Vision and Ambition setting to the design and the implementation of a strategy and a transformation plan, ensuring it cascades down to all levels of the organisation.

·       Mining, Metals & Materials; Private Equity; Telecom, Media & Technology; Transportation, Defence & Security ; Energy & utilities

·       Financial Services:    provided the first CVA client and therefore was the first industry area that developed. It has remained a core sector for over 25 years, representing ~40% of Sales in certain offices

• undergoing major upheaval as a result of the financial crises,.major players have to deal with the significant issues that arise from changes to the industry structure, changes in customer perception, and impact of regulatory change

·       Public Sector :   public sector organisations and Government departments achieve efficiency and effectiveness in their remit to deliver valued services to the public. By developing insight and best practice from the private sector as well as cross-fertilising ideas within the public sector we have helped deliver new and innovative solutions to some of the major issues these bodies face.

How much client contact does the consultant have in the first year?

What kind of typical work is there?

What’s the travel schedule like?

Start

• Summarize question
• Verify objectives and ask if there are others
• Ask clarifying questions
• Label the case and lay out your structure
• State your hypotheses

4 types

• Profit and Loss
• Market Entry
• Pricing
• Growth and Increasing Sales

E(R-C=P)M

• External factors
• Company
  • Revenue (Price x volume [remeber mix])
  • costs - variable and fixed costs]
  • Also consider customer segmentation, mix,, production capabilites, distrobution channels, what consittutes succes?
• Market
  • size, growth, trends, stage in life cycle, industry drivers, customer segmentation, margins, industry changes, regulation, distribution chnanels, product diferentiaiton, barriers to entry, major players...

SOLUTIONS:

• Increase revenue: Buy more, spend more, increase customers
  • increase customers - ^ distro channels or marketing; new markets or new products
• decrease costs - labour, production, finaince
  • Finance - refiance debt, hedge, selling assets

• ASK WHY THEY WANT TO ENTER THE MARKET!
• analyse company first and then market to look through companies eyes
• Step 1 - ask about companyes profits/revenues for last 3 years, product mix, new porduct?, extisting products, segmenations, distro channels sales force,production, stength of brand, WCS?
• Step 2 determine the size of the market - current size, growth rate (ask for trends),, lifecycle, who are customers, segmentation, technology's role (will it change), competition?
• Step 3 - does entry make snese -  competitiors, product differemiation, pricing, substitutes, barriers to entry AND exit, risk?
• Step 4 - decide if and how - 4 ways
  • start form scartch and grow organically
  • aquitr plare in the industry
  • joint ventru/strategi alliance
  • outsourcing
• Analyse pros and cons then decide
• REMEMBER lead recommendation with answer - yes/no if yes - then why, how, risks and next steps (in long and short-term outlook)

• Step 1 - Investigete company (size, what products it sells, is it a market leader)
  • What is the pricing objective - profits, market share, brand positioning
• Step 2 - Investigate product (how does it compare with competion, subsittutes?, growth cyles and supply-and-demand)
• Step 3 - Determine a pricing strategy - 3 types
  • competitive analysis - what will the reponse from competitiors be
  • cost-based procing - add up costs and add profit - not best way but company needs to no what costs are
  • Price-based costing - what are people willling to pay
• Look at all three and see where they intersect

• Clarifying question - revenues last 3 years and any forecasgs
• Step 1 - learn about company;s size, resources, and products etc
• Step 2 - investigate industry is it grorwing, client vs industry
• Increase volume/revenues
  • increase number of distro channels
  • increase porduct line via diversification - don't cannibalize the existing products
  • analyse business segements -what has best potential
  • marketing campaign
  • acquire competitior
  • seasonal balance?
• Can also find niches in developing industires with high barriers to entry