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Consulting Frameworks Cheat Sheet

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0% found this document useful (0 votes)
28 views3 pages

Consulting Frameworks Cheat Sheet

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

Consulting Case Frameworks — Exhaustive Knowledge Base

Purpose: A single reference of frameworks, decision flows, execution checklists, math, and interviewer signals to solve consulting cases. No
cases or market data included.

How to use this book


1. Clarify the objective and success metric (profit, market share, NPV, user growth).
2. State a working hypothesis and list the 2 most diagnostic analyses.
3. Structure into 3–4 MECE buckets, drill down until each branch suggests a concrete test.
4. Show arithmetic, label assumptions, and triangulate with a sanity check.

Foundations

MECE & Issue trees

Aim for 3 top-level buckets. Keep branches mutually exclusive.

Hypothesis-driven approach

One early hypothesis: design 2 analyses that would most quickly validate or invalidate it.

Pyramid Principle (synthesis)

Start with the recommendation, then 2–4 supporting arguments with evidence.

Core frameworks (what to use and how to execute)

Profitability (when profits fall or margins shrink)

Structure: Revenues | Costs

Revenue decomposition: segments, price × volume, channel mix, promotions, product mix.
Cost decomposition: COGS (materials, labor), SG&A, depreciation, one-offs.
Steps: decompose P&L → identify top 2 drivers → quantify sensitivity (price, volume, input costs) → propose interventions (price
increase, cost reduction, product mix).

Market Entry (when evaluating entering a country/segment)

Structure: Market Attractiveness | Competition | Company Fit | Mode of Entry | Financials & Timeline

Attractiveness: TAM/SAM/SOM, growth, margin pools, regulation.


Mode: organic, acquisition, JV, partner; evaluate speed vs. cost vs. control.
Deliverable: 3-year P&L sketch, payback estimate, key capabilities required.

Pricing (price changes, promotions, segmentation)

Segment customers by WTP and share.

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Model elasticity; compute revenue impact of price change including cannibalization.
Consider packaging, anchoring, decoy, and promotional leakage.

M&A / Acquisition

Structure: Rationale | Valuation | Synergies (revenue / cost) | Integration risks | Deal mechanics

Quantify synergies conservatively (best/base/worst). Assess retention risk for key personnel.

Investment / Private Equity

Base-case model: revenue growth, margin evolution, capex, WC. Exit multiple sensitivity. Compute IRR/NPV.

Operations & Supply Chain

Tools: process maps, value stream mapping, bottleneck analysis, Little's Law.
Tactics: reduce flow time, increase throughput, shift to pull systems, reduce batch sizes.

Market Sizing & Guesstimates

Top-down and bottom-up. Define SRU for bottom-up. State all assumptions and run one triangulation.

Industry & Competitive Analysis (Porter, 4Cs)

Porter’s Five Forces for industry structure.


4 Cs for market: Customer, Company, Competitors, Collaborators.

Execution checklists (what interviewers expect)

Case start (first 5–7 minutes)

Clarify target metric and constraints.


Present an issue tree with 3–4 buckets.
State a hypothesis and the tests you will run.

Analysis stage (middle 15–20 minutes)

Run the most diagnostic analysis first.


Show all arithmetic and round sensibly.
Narrate insights and update hypothesis.

Recommendation (last 5–8 minutes)

One-line recommendation, 2 supporting numbers, 2 risks, 3 next steps.

Drawing templates (copy these on paper)


Profitability sketch:

Revenue
├─ Segment A: Price × Volume
├─ Segment B: Price × Volume
Costs

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├─ COGS: materials, labor
├─ SG&A: marketing, admin
├─ One-offs

Market entry one-pager:

Market Attractiveness | Competitive Map | Entry Option (speed|cost|control) | 3-year sketch (rev/margin)

M&A one-pager:

Strategic rationale | Valuation summary | Synergies table (revenue|cost) | Integration checklist

Math & Formulas


Revenue = Σ (price_i × volume_i)
Contribution = Price − Variable cost
Break-even = Fixed costs / Contribution per unit
Little’s Law: Inventory = Throughput × Flow time
NPV & IRR basics; DuPont decomposition

Guesstimate flow (quick)


1. State the question and clarify the metric.
2. Define SRU and sequence: population → buyer % → frequency → price.
3. Calculate, round, sanity check with at least one alternative approach.
4. State assumptions and final value with unit and confidence band.

Interviewer signals and common traps


Silence often means they expect you to think; short interruptions often indicate a hint or a correction.
Avoid: unfocused branching, not stating assumptions, ignoring simple drivers, overcomplicating math.

Appendix — sources and evidence traces


This document synthesizes frameworks and checklists from the uploaded casebooks and consulting guides (FMS, Kellogg, HBS-style guides
and others supplied).

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