Accenture FY19 Case Workbook One Accenture Consulting PDF

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THE

“GREAT UNKNOWN”
CASE EXAMPLE
Interview Example: Potential Methodology:
• The client, a leading manufacturer of Problem Understanding
prefabricated kitchen furnishings, has • Has the size of the market changed in
been steadily losing market share over the last two years?
the last two years.
• Has the competitive structure of the
• The senior executive team would like industry changed? Mergers and
you to help them understand why and Acquisitions? New Entrants?
what they can do to improve their
market standing. • Are there any new products or new
technologies that are gaining
market share?

• How are we currently positioned (low


cost, high quality, etc )? What is our
competitive advantage?

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THE
“PARADE OF FACTS”
CASE EXAMPLE
Interview Example: Potential Methodology:
• Client is a leading food company that • Key Problem: Profitability of Business
wants to develop a fresh prepared and Size of Market
meal business
• Trend among consumers is toward • Problem Understanding:
fresher food with no artificial • Ask about consumer test What
preservatives or coloring prices are consumers responding
• Consumers are currently purchasing to? Are there any items spoiling on
$5 0 billion of frozen meals—trend is the shelf?
toward more upscale products • What is the competitive structure
• A fresh meal plate combining a of this market currently?
protein, vegetable and starch is • What are the components of the
delicately arranged in a sealed plastic company’s cost structure?
dome package
• Nitrogen gas flushing is used to • Structure Analysis:
extend shelf life • What is the break-even point for
• Product is currently in limited the firm?
consumer test at $5 50 to $8 50 1 Determine Gross Margin per Unit
per meal 2 Determine fixed costs
• Shelf life of product is 14 days— 3 Divide to find break-even
product will spoil in 21 days potentially • Estimate the size of the market (a
causing food poisoning case within a case)
• Client wants to know if they can make • Determine the market share they
money in this business will need to break-even
• Client wants to know if the market
is big—how will they keep • Develop Recommendations:
competition out • Discuss the competitive structure
• Client wants a consultant to assist in of the market Can the firm
building business case realistically achieve the break-even
market share?

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THE
“BACK OF THE ENVELOPE”
CASE EXAMPLE
Interview Example: • Estimate the average number of units a
• Estimate the total number of dry dry cleaner can handle per week
cleaners in Philadelphia • Assume that the average dry
cleaner has two workers who
Potential Methodology: typically handle 20–30 customers
• Assume there are two million people (or 80–120 units of clothing)
in Philadelphia per hour
• Estimate the size of market by • If the average dry cleaner is open
segmenting the population eight hours a day, 5 days/week,
• Assume the population consists of they typically handle 3200–4800
25% adult men, 25% adult women, units per week (80–120 units
and 50% children x 8 hours x 5 days)
• Assume children have no dry • Divide the total market size by the
cleaning and only 25% of adults use average units handled per dry
dry cleaning cleaner to find the total number of
• Estimate the average number dry cleaners
of “units” of clothing each man • There are between 208 and 312
and woman brings weekly to the dry cleaners in Philadelphia
cleaners For this case, assume that
3 shirts/ blouses and 1 suit are
brought to the cleaners each week
• Thus the total size of the market
(per week) is one million units of
clothing (1 million people x 25% x
4 units per person)

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PRACTICE
CASES

THE “GREAT UNKNOWN” SAMPLE

• A major furniture retailer has • Citibank is considering purchasing


experienced declining profits for four another credit card company If the
quarters, yet over that same time acquisition is made, Citibank will gain
period, it has experienced a 25% access to 100,000 new card holders.
growth in sales and has opened many What is the estimated value of this
new stores. Why are profits declining? acquisition?

• A fast food company is thinking about • A commercial bank is re-evaluating the


putting a franchise in an airport.They number of branches it operates, and
hire you to see if they should do so. whether they should increase the
number of branches or close some
• A bread division of a large food down. How would you suggest they go
company is facing increasing about it?
competition in its market and wants to
know if it should exit the market. • A large conglomerate company is
facing declining profits in its railroad
• A car company is interested in company division and is considering
developing a new car. What marketing shutting it down. You have been hired
related issues should it consider to determine if this is the
before doing so? right course of action and identify
potential alternatives.
• What factors influence the revenue
potential of a new pharmaceutical • New York City has hired you to
product? determine what optimal route or what
destination taxi drivers should go to
when they do not have a customer.

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PRACTICE
CASES

THE “BACK OF THE ENVELOPE ” SAMPLE

• How much money could Continental • Estimate the change in the price of oil
Airlines save by giving customers 1/2 a in the year 2000 from today’s price.
can instead of a whole can of Sprite? Will it increase or will it decrease?

• What is the estimated value of a • Estimate the number of attendees for


taxi medallion in New York City? a free concert for U2 in Central Park
in New York City.
• Discuss what is wrong with the
following statistic: the Volvo is the
safest car on the road because a
recent study has shown that Volvos
have the fewest number of accident
deaths per mile driven.

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