scenarios.txt

• 1. summarize question
• 2. verify objectives
• 3. ask clarifying questions
• 4. lay out your structure

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

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

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

Step 1: investigate product -- differentiation, competition, substitutes, market

Step 2: pricing strategy -- cost-based vs. price-based, supply and demand

Step 1: context -- industry vs. company growth, competitors

Step 2: growth strategy -- increase channels, increase product line, invest in marketing, diversity products/services, acquire

Step 1: market -- market size, competition, barriers to entry

Step 2: VC perspective -- management, business plan, product, channels, customers, financing

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

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

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

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

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