Hello everyone,
I was wondering what would be the most exhaustive framework to follow for an opportunity assessment case.
Should it all be based on financial concepts (NPV, Payback, etc), and if not what kind of qualitative aspects to include.
Would appreciate the help!
If there was a “magic” framework that would work for every case… we wouldn't have case interviews - we would just give people the framework and ask them to apply it.
This means the framework must be customized to the context and specific question. By the way, beware of “exhaustive” frameworks. A lot of candidates go with the mindset of making sure they cover every possibility, but then get caught in the mistake of mentioning several possibilities that are not relevant to the specific case… (in general, I prefer someone who forgets something minor than someone who mentions something irrelevant).
Regarding financial metrics, those are fine. This is not a finance interview. So usually operating margin (EBITDA), IRR, NPV, and payback time are usually all you need, with focus on the first two.
(edited)
Hi there,
Not sure what you mean by exhaustive? To make something truly exhaustive, by its very definition you need to tailor it to the specific case prompt, company, and industry.
The general way to view opportunity is: do the benefits outweigh the costs, more so than other opporutnities do?
Depending on the case, you may have to compare the market (what other competitors are doing or have done) and the company (how well we can seize this opportunity)
There's no exhaustive framework.
Generally, it's good not to grow dependent on frameworks. I'd rather see them as a last resort. By now interviewers dread them. They rather want to see somebody who can structure a problem on their own instead of follow something that's been done a zillion times.
Still, it's good to know frameworks and apply them if in it need. There's a good overview of the main ones on PrepLounge here https://www.preplounge.com/en/bootcamp.php/case-cracking-toolbox/structure-your-thoughts
Otherwise, I suggest you take a couple of coaching sessions to define the right mindset in approaching cases and developing an internal muscle for structuring them (instead of ‘frameworking’ them).
Hi!
Unfortunately, there is no unique framework you could use for opportunity assessments.
Financial considerations matter but also more qualitative ones such as our client's capabilities and resources, possible synergies and risks, competitive response, etc.
Hope this helps.
Best,
Anto
