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Business case first 4 steps
- 1. summarize question
- 2. verify objectives
- 3. ask clarifying questions
- 4. lay out your structure
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Entering a new market
Step 1: do we enter the market -- competition, barriers to entry, industry structure
Step 2: if we enter, how to enter -- start from scratch, acquire existing player, form joint venture or strategic alliance
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Mergers and acquisitions
Step 1: determine goals/objectives of M&A -- why buying? business sense? better alternatives?
Step 2: evaluate payment -- how much? how to pay for it? can they afford it?
Step 3: due diligence -- company, its customers, industry, competitors
Step 4: exit strategies
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Developing a new product
Step 1: product -- differentiation, competition, substitutes
Step 2: market strategy -- impact on existing products, customer base, competitive response
Step 3: customers -- who, how to reach, needs
Step 4: financing of product
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Pricing strategies
Step 1: investigate product -- differentiation, competition, substitutes, market
Step 2: pricing strategy -- cost-based vs. price-based, supply and demand
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Growth strategies
Step 1: context -- industry vs. company growth, competitors
Step 2: growth strategy -- increase channels, increase product line, invest in marketing, diversity products/services, acquire
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Start a new business
Step 1: market -- market size, competition, barriers to entry
Step 2: VC perspective -- management, business plan, product, channels, customers, financing
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Competitive response
Step 1: evaluate competitor's product -- what is different? better?
Step 2: respond -- acquire, merge with another competitor, copy, hire competitor's talent, invest in marketing/publicity
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Increasing sales
Step 1: understand industry -- growth of industry vs. company, pricing vs. competitors
Step 2: sales strategy -- increase volume, increase amount of sale, increase prices, create seasonal balance
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Reducing costs
Step 1: get cost breakdown
Step 2: investigate any costs that seem out of line
Step 3: benchmark competitors
Step 4: determine any labor-saving approaches/technologies
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Increasing profits
Step 1: assess revenue
Step 2: examine costs
Step 3: determine whether to increase volume -- expand to new areas, increase sales force, increase marketing, reduce prices, improve customer service
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Turnarounds
Step 1: gather information -- company, failing areas, industry, competitors, financials
Step 2: determine actions -- review products/services, review finances, review talent, determine short- and long-term company goals, devise business plan, visit customers, prioritize goals
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