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Ind Prep

This document serves as a master guide for consulting interviews, focusing on major industries, their profit drivers, and essential frameworks for case interviews. It outlines key revenue streams, variable and fixed costs, and important metrics for industries such as Retail, Technology, Healthcare, Airlines, Manufacturing, and Financial Services. Additionally, it provides frameworks for market entry, supply chain analysis, operational feasibility, and unconventional case breakdowns.

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somnathspai0607
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0% found this document useful (0 votes)
3 views4 pages

Ind Prep

This document serves as a master guide for consulting interviews, focusing on major industries, their profit drivers, and essential frameworks for case interviews. It outlines key revenue streams, variable and fixed costs, and important metrics for industries such as Retail, Technology, Healthcare, Airlines, Manufacturing, and Financial Services. Additionally, it provides frameworks for market entry, supply chain analysis, operational feasibility, and unconventional case breakdowns.

Uploaded by

somnathspai0607
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

20/07/2026, 17:40 Google Gemini

Consulting Interview: Industry & Framework Master Guide


This document is designed to give you a rapid understanding of major industries, their profit
expand
drivers, and the essential frameworks needed to structure both conventional and unconventional
case interviews.
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PART 1: MAJOR INDUSTRY PROFILES
When you get a case, immediately identify the industry to understand its typical revenue streams,
cost structures, and key drivers.

1. Retail & FMCG (Fast-Moving Consumer Goods)


Revenue Streams: Unit sales, diverse product lines, private label vs. branded goods.
Variable Costs: Cost of Goods Sold (COGS), packaging, distribution/freight, store hourly
labor.
Fixed Costs: Real estate (rent/leases), corporate overhead, marketing/advertising.
Key Metrics to Keep in Mind:
Inventory turnover (how fast products sell).
Same-store sales (isolates growth from new store openings).
Profit margins (typically low volume, high margin for luxury; high volume, low margin for
groceries).
Shelf space and distributor relationships are critical.

2. Technology & SaaS (Software as a Service)


Revenue Streams: Recurring subscriptions, freemium upsells, one-time licensing, advertising,
data monetization.
Variable Costs: Cloud/server hosting costs, customer support, payment processing (often
very low).
Fixed Costs: R&D (software development), Customer Acquisition Cost (CAC), sales team
salaries.
Key Metrics to Keep in Mind:
Customer Lifetime Value (LTV) vs. Customer Acquisition Cost (CAC).
Churn rate (percentage of customers canceling).
High upfront fixed costs, but massive scalability with near-zero marginal costs.

3. Healthcare & Pharmaceuticals


Revenue Streams: Drug sales (patented vs. generic), medical devices, hospital services,
insurance premiums.
Variable Costs: Manufacturing/packaging, raw materials, sales commissions.
Fixed Costs: Massive R&D, clinical trials, regulatory compliance/FDA approvals, patent
maintenance.
Key Metrics to Keep in Mind:
Patent lifecycle (when does it expire? "Patent cliff").

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Stakeholder complexity: The patient uses it, the doctor prescribes it, the insurance
company pays for it.

4. Airlines & Transportation


Revenue Streams: Passenger ticket sales (economy vs. business), baggage fees, cargo, in-
flight food/services.
Variable Costs: Jet fuel (highly volatile), hourly crew wages, airport landing fees, catering.
Fixed Costs: Aircraft purchases/leases, maintenance, gate leases, IT infrastructure.
Key Metrics to Keep in Mind:
Load factor (percentage of seats filled).
Revenue per Available Seat Mile (RASM).
Highly cyclical industry, heavily impacted by economic downturns and fuel prices.

5. Manufacturing & Heavy Industry


Revenue Streams: B2B contracts, bulk unit sales, aftermarket parts, maintenance contracts.
Variable Costs: Raw materials (steel, plastic), direct hourly labor, shipping/logistics.
Fixed Costs: Factories, heavy machinery/depreciation, union contracts, storage/warehousing.
Key Metrics to Keep in Mind:
Capacity utilization (are factories running at 100%?).
Supply chain bottlenecks (inbound raw materials vs. outbound finished goods).
Defect rates and operational efficiency.

6. Financial Services (Retail Banking)


Revenue Streams: Net interest margin (interest charged on loans minus interest paid on
deposits), transaction fees, wealth management fees.
Variable Costs: Customer acquisition, default/bad loan write-offs.
Fixed Costs: Branch real estate, IT security, regulatory compliance, employee salaries.
Key Metrics to Keep in Mind:
Interest rates (macroeconomic environment).
Risk and regulatory constraints.

PART 2: CORE FRAMEWORKS & APPROACHES


1. Market Entry
Don't just use a qualitative checklist; determine Economic Sense and Operational Feasibility.
Economic Sense (Can we make money?):
Market Size & Growth.
Expected Market Share (Competitor analysis, barriers to entry, product differentiation).
Expected Profit = (Market Size * Market Share * Profit per Unit) - Fixed Investment.
Implementation/Feasibility (Can we actually do it?):
Production: Do we have the capacity and raw materials?

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Distribution: Can we access the necessary channels?
Marketing/Brand: How will we acquire customers?
Method of Entry: Organic (build from scratch), Acquisition (buy a local player), or Joint
Venture (partner up).

2. Supply Chain / Value Chain


Use this to isolate where a problem (like a cost increase or volume drop) is happening:
Inbound Logistics: Sourcing raw materials, supplier relationships, receiving.
Operations (Production): Manufacturing, assembling, quality control, packaging.
Outbound Logistics: Warehousing, distributing to retailers or directly to customers.
Marketing & Sales: Pricing, promotions, sales force effectiveness.
Customer Service: After-sales support, returns, warranties.

3. Operational Feasibility Checklist


When recommending a new strategy, verify:
Financial: Do we have the capital? What is the ROI/Payback period?
Capacity: Do we have the physical/tech bandwidth?
Regulatory/Legal: Are there government restrictions, patents, or compliance issues?
Organizational: Do we have the management talent and company culture to execute this?

PART 3: BREAKING DOWN UNCONVENTIONAL CASES


If a case doesn't fit standard Profitability or Market Entry, you must create a custom framework.
Use these "buckets" to structure your thinking dynamically:

Structure 1: The Timeline (Pre / During / Post)


Best for: Customer journey, process bottlenecks, or evaluating a new service.
Pre-Purchase: Awareness, marketing, getting to the store, waiting in line.
During-Purchase: The actual transaction, user experience, product quality, payment.
Post-Purchase: Customer service, retention, repairs, word-of-mouth.

Structure 2: Stakeholder Analysis


Best for: Public sector, non-profits, M&A integrations, or PR crises.
Internal: Employees, management, shareholders/investors, board of directors.
External: Customers, suppliers, competitors, government/regulators, local community.

Structure 3: The 4 Ps (Sales & Marketing Issues)


Best for: Declining sales of a specific product, launching a new product.
Product: Features, quality, packaging, differentiation.
Price: Too high/low? Price elasticity, payment terms, discounts.
Place: Distribution channels (online, retail, direct sales), geography.
Promotion: Advertising, brand perception, sales force incentives.

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Structure 4: The 3 Cs (or 4 Cs)


Best for: Broad business situations, growth strategy, competitive threats.
Customer: Demographics, needs, price sensitivity, switching costs.
Company: Core competencies, financials, brand, supply chain.
Competition: Market share, their products/pricing, barriers to entry.
(Product): Substitutes, lifecycle, complementary goods.

Structure 5: Supply vs. Demand


Best for: Pricing issues, capacity problems, macroeconomic shifts.
Supply side: Production capacity, raw material availability, labor, distribution.
Demand side: Customer willingness to pay, market trends, disposable income.

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