Genese-de-Strategie

[The Origin Of Strategies]

About GDS

• Merger • Strategic Consultancy • Banking • Auction

• Acquisitions • Process Reengineering • Securities • Business Dilemma
• Enter Market • Specific Services • Shares • Trade Conflict
• Exit Market • Case Studies • Currency • Common Information
• New Products • Group Discussions • Valuation • Battle of Sexes
• Joint Venture
What We Have Done Till Now?

• Maxim Value Model

Case
Frameworks • F.R.A.M.E. Method

• Grooming session for Internships

Interview
Guide • Answering HR Questions

• Competitive Interactions and Game Theory

Game
Theory • Game Theory and Supermarket pricing

• Money: Demand & Supply & Overall Prices

Banking • Loan Banking
What We Have Done Till Now? (cont.…)

• Improving Sales of Toy Making Company

Case Study • Supply Chain Metrics of Winery

• Common Information
Game
Theory • Business Dilemma

• Merger & Acquisition

Business
Strategies • Business Valuation Methodology

• Market Positioning of Retail Chain Stores

Case Study • Acquisition by Private Equity Company
Business Strategies
The Cases

The Cases Business Cases

Game Show
Cases

Estimation Cases
 Business Cases
Tests Your Basic Tools & Concepts

Certain information available – varying with interviewers style and type of case
How Do You Crack It?
Formulate your framework
Ask right questions

Creativity or ‘Out-of-the-box-thinking’
 Game Show Cases
Tests Your So what counts ?

Why soda cans are cylindrical ?

Customers Won’t Cut Their Hands On Sharp Edges

Structures With Comers Develop Fractures
Due To High Stress At The Edges.
 Estimation Cases
SECOND most important skill set in CONSULTING!
Tests Your

Plausible estimations

Tree diagram

Conduct Sanctity Check on Final Number

Sample Case Study: PE Firm Buying Med-bag

Your client is private equity company that is considering acquiring

a medical products division, Med-bag, which is being divested
from VARCO, a larger healthcare firm. Your client wants you to
tell them if Med-bag is an attractive investment.

PRIVATE EQUITY: Private equity consists of investors and funds that make investments
directly into private companies or conduct buyouts of public companies that result in a
delisting of public equity. It is the equity capital that is not quoted on a public
exchange.
Med-bag Sales vs. Competitors

Others
Dabur
Ranbaxy
Med-bag
Med-bag Revenues
Med-bag Expenses
Expense After Relocation

Expense increase / decrease after relocation

Labor -30%
Material -10%
Rent -30%
Shipping 50%

Other Charges
Shutdown Costs $1.5 million
Mexico Setup Costs $1.75 million
Finance
 Finance
Why You Should Start Saving Today? Year 0 : $100
Compounding Principle Year 10: $ 231
Year 20: $ 650
Your Skills Are Not Going To Increase Your Salary At This Rate ! Year 30: $ 1230
Year 40: $ 2840
Year 50: $ 6555
Non Inflation Adjusted : $ 17.5k

How much should U save? Assumption:

Saving while working: $20k/Yr.
Saving while Playing: $5k/Yr.
Case1: First 9 years of fun and then 18 years of work. At the end of 27 years, you have:
5k*(1.109^27)/(1.02^27) + … + 20k*(1.109^18)/1.02^18 + … + 20k = $1.12 million

Case2: First 9 years of work, then have 9 years fun and work another 9 years, you have:
20k*(1.109^27)/1.02^27 + … + 5k*(1.109^18)/1.02^18 + … + 20k*(1.109^9)/1.02^9
20k = $1.72 million
Finance

A Pretty Worse Case Saving Money Example

Purchase Porsche: $50k … 1st Year
Maintenance Cost: $10k … Per Year
Interest Rate: 15% … Per Year
Total Mortgage after 27 years: $1.176 Million

Invest in good hedge fund or good stock @ 15% / year

Spend Later in 9 years.
Total Additional Income: $2.52 million

Whopping $ 3.7 Million Dollar Difference !

Game Theory – The Dark Knight
Game Theory – A Beautiful Mind