I am the business manager of the Performance Chemicals division ($500million) of a Speciality Chemicals Company ($14billion). Our CEO wants us to become the fastest growing (moving from 4-5% growth to 10-15% growth) speciality chemicals company and has therefore asked all the divisions to present growth strategies to him. I would like you to advice us as we do not believe that there is significant untapped potential in the markets served by our division.
The case is designed to be presented to the candidate by an interviewer, who plays the role of the business manager of the Performance Chemicals division of a Speciality Chemicals Company.
Key question: What kind of growth strategies could help the division grow at a faster rate?
Answer: The company should look at strategies such as:
The interviewee should perform a back-of-envelope analysis which answers the key question - 'Whether or not the Performance Chemicals division can grow at a 10%+ per annum rate'; and recommend potential growth strategies for the business unit.
It is clear that the company has to look beyond traditional product strategy to generate the demanded growth.
The company should look at
Alternatively, the following strategies could also be considered:
The company should look at strategies such as product enhancements or product-service bundling, outsourcing non-core activities and new markets for the existing technological capabilities.
Two frameworks here: 4 Ps (= price, place, product, promotion), or the Ansoff Matrix (grow with existing or new products in existing or new markets). Both are quite MECE. Word of caution however --... (mehr)
Hi! It depends very much on the industry. In some cases (Growth strategy) I will use a broad structure, in others (e.g. “how to increase the excessive luggage revenues for an Airline”) I will use P... (mehr)
Hi Elisey, I would personally not recommend to use a single framework for all the so-called business situations (M&A, Entry, New product, Operations etc). Although this would help to more easil... (mehr)
Hi Anonymous A, From my understanding, you want to answer this question: is there a potential to launch a mobile/digital brand in Europe for P&C (property & casualty) insurance? If so, what... (mehr)
Hi Gerard, questions like this aim at judging your business acumen. The interviewer wants to see whether you are able to think through the focal sector/industry and derive implications for the compan... (mehr)
Growth questions are among the most common questions in consulting case interviews: gather the necessary Information about volume and price to find the best growth lever
6 Kommentar(e)The Value Chain - as e.g. by Porter - is a classic framework to structure the activities of a business and add value to products by transforming resources.
3 Kommentar(e)See how Core Competencies can serve as framework to analyze a company and help in consulting case interviews
0 Kommentar(e)A two-by-two matrix is a simple but effective method of presenting information. It is very popular within consulting as it provides the big picture of a certain option space.
3 Kommentar(e)The Compounded Annual Growth Rate (CAGR) Is a theoretical steady growth rate over a specific amount of time, not the average of the Y-o-Y growth rates. It can mask sub-trends within the period
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