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Vlad

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Frameworks with multiple steps

Hi there :)

when solving cases, I often find it a bit unrealistic to draw an accurate MECE issue tree at the beginning. Therefore, I have started dividing my analysis in two or more steps. For example: if I have a market entry case, I would do it as follows:

(1) draw issue tree to assess whether the market is interesting (size, growth, profitability, barriers to entry etc.). I would communicate that I would think of a specific strategy how to enter if we deem the market interesting. If not, I would think of alternatives to reach the company's goals.
(2) based on my analysis of the market, I would come up with an issue tree for either the market entry strategy or for possible alternatives.

I think that such an approach is far more accurate as the initial assessment of the market would allow me to come up with a more precise structure for the following issue tree(s). Would that be an approach that would be acceptable during an MBB interview? Thanks a lot :)

Hi there :)

when solving cases, I often find it a bit unrealistic to draw an accurate MECE issue tree at the beginning. Therefore, I have started dividing my analysis in two or more steps. For example: if I have a market entry case, I would do it as follows:

(1) draw issue tree to assess whether the market is interesting (size, growth, profitability, barriers to entry etc.). I would communicate that I would think of a specific strategy how to enter if we deem the market interesting. If not, I would think of alternatives to reach the company's goals.
(2) based on my analysis of the market, I would come up with an issue tree for either the market entry strategy or for possible alternatives.

I think that such an approach is far more accurate as the initial assessment of the market would allow me to come up with a more precise structure for the following issue tree(s). Would that be an approach that would be acceptable during an MBB interview? Thanks a lot :)

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Book a coaching with Vlad

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Hi,

First of all - both issue trees and buckets are just different ways of structuring the problem. Both work in certain cases. You should build a structure using your previous experience, based on:

  • Objective (Should have a metric and time-frame)
  • Context

E.g market entry cases can have completely different objectives:

  • Should we enter the market?
  • Which top 3 markets out of 10 we should enter?
  • Can we get xx% market share on the new market?
  • Can we get xx ROI if we enter this market?
  • etc

Depending on the Objective and the Context you should come up with a proper structure to address the problem. Of course, you may use the patterns that you've learned while solving the other cases.

There is a number of ways how you can approach the structure:

  1. Mathematical issue tree (e.g. Total time spent on cleaning operation = # of people x Frequency x Hours per cleaning per person) or formula (e.g. output rate = total number of people being served / time to serve one person) or common industry drivers (e.g. revenues = # of customers x av. check) (e.g Passengers on the plane = capacity x Load Factor) or the industry revenue streams (Fuel revenues / non-fuel revenues for the gas station)
  2. Drivers (e.g. drivers influencing the birth rate in a country)
  3. Buckets strcuctures (e.g. for the problems in sales : Sales strategy / sales people and allocation / motivation / sales process). Very often it's a real framework used by the consultants (e.g. the famous Bain Cap framework for PE due dills: Market / Competitors / Company / Feasibility of exit)
  4. Frameworks (e.g. People / Process / Technology) (e.g. The famous McKinsey framework - People don't want to do smth / they can't do smth / smth prevents them from doing that). Even academical frameworks in the rare cases (e.g. Product / Distribution / Price / Marketing (Also known as 4P))
  5. Value chains / Customer Journey / Process steps
  6. Consecutive Steps of the project (Analyzing cost structure / Benchmarking to calculate the cost savings potential / Analyzing the processes to reach the potential / Calculating costs and benefits)
  7. Etc

There is no magic pill how you can learn to build the MECE issue trees. It comes with a lot of Practice and reflection and building proper industry and functional knowledge.

Best!

Best

Hi,

First of all - both issue trees and buckets are just different ways of structuring the problem. Both work in certain cases. You should build a structure using your previous experience, based on:

  • Objective (Should have a metric and time-frame)
  • Context

E.g market entry cases can have completely different objectives:

  • Should we enter the market?
  • Which top 3 markets out of 10 we should enter?
  • Can we get xx% market share on the new market?
  • Can we get xx ROI if we enter this market?
  • etc

Depending on the Objective and the Context you should come up with a proper structure to address the problem. Of course, you may use the patterns that you've learned while solving the other cases.

There is a number of ways how you can approach the structure:

  1. Mathematical issue tree (e.g. Total time spent on cleaning operation = # of people x Frequency x Hours per cleaning per person) or formula (e.g. output rate = total number of people being served / time to serve one person) or common industry drivers (e.g. revenues = # of customers x av. check) (e.g Passengers on the plane = capacity x Load Factor) or the industry revenue streams (Fuel revenues / non-fuel revenues for the gas station)
  2. Drivers (e.g. drivers influencing the birth rate in a country)
  3. Buckets strcuctures (e.g. for the problems in sales : Sales strategy / sales people and allocation / motivation / sales process). Very often it's a real framework used by the consultants (e.g. the famous Bain Cap framework for PE due dills: Market / Competitors / Company / Feasibility of exit)
  4. Frameworks (e.g. People / Process / Technology) (e.g. The famous McKinsey framework - People don't want to do smth / they can't do smth / smth prevents them from doing that). Even academical frameworks in the rare cases (e.g. Product / Distribution / Price / Marketing (Also known as 4P))
  5. Value chains / Customer Journey / Process steps
  6. Consecutive Steps of the project (Analyzing cost structure / Benchmarking to calculate the cost savings potential / Analyzing the processes to reach the potential / Calculating costs and benefits)
  7. Etc

There is no magic pill how you can learn to build the MECE issue trees. It comes with a lot of Practice and reflection and building proper industry and functional knowledge.

Best!

Best

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Hello!

You are completely right, I would suggest your approach for 3 reasons:

  1. Show that you know how to handle frameworks and you are not just writing down by hearth everything that is in your mind
  2. Detail a smaller framework with the same amount of time is easier and can give you the opportunity to do it simply better
  3. Present a framework focused on the first step is more effective and impactful, and make easier also for the interviewer to follow your solution process

More over, your interviewer (taht knows the solution) will be happy not to waste time listening to you detailing structures that you will never use in the case given.
On the other hand, consider that sometimes you can not give a solution after the first analysis. For example, a market cold appear not attractive because of low profit margins but then, looking at our client, we could discover that we don't have any profit in pur traditional markets and that that's the only market we can enter easily.

Feel free to contact me to discuss it further.

Hope it helps,
Luca

Hello!

You are completely right, I would suggest your approach for 3 reasons:

  1. Show that you know how to handle frameworks and you are not just writing down by hearth everything that is in your mind
  2. Detail a smaller framework with the same amount of time is easier and can give you the opportunity to do it simply better
  3. Present a framework focused on the first step is more effective and impactful, and make easier also for the interviewer to follow your solution process

More over, your interviewer (taht knows the solution) will be happy not to waste time listening to you detailing structures that you will never use in the case given.
On the other hand, consider that sometimes you can not give a solution after the first analysis. For example, a market cold appear not attractive because of low profit margins but then, looking at our client, we could discover that we don't have any profit in pur traditional markets and that that's the only market we can enter easily.

Feel free to contact me to discuss it further.

Hope it helps,
Luca

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Hello!

For this particular case your are describing, it makes sense to approach in two steps. However, it´s dangerous to think in an absolute way here, such as "it´s always better to do a two-steps approach when..."

Each case, even with the same topic or industry is different, and those who crack it well are the ones who don´t use recipies but land the particularities of the case.

Hope it helps.

Cheers,

Clara

Hello!

For this particular case your are describing, it makes sense to approach in two steps. However, it´s dangerous to think in an absolute way here, such as "it´s always better to do a two-steps approach when..."

Each case, even with the same topic or industry is different, and those who crack it well are the ones who don´t use recipies but land the particularities of the case.

Hope it helps.

Cheers,

Clara

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Hi,

it's correct dividing the approach into 2 steps. Only after you are sure the entry is good for the client objectives, you can think about how to enter. I this way your entry strategy it's far more accurate. In some cases however one of the two steps is not requested, therefore is always crucial to understand what is considered the success for the problem.

Best,

Antonello

Hi,

it's correct dividing the approach into 2 steps. Only after you are sure the entry is good for the client objectives, you can think about how to enter. I this way your entry strategy it's far more accurate. In some cases however one of the two steps is not requested, therefore is always crucial to understand what is considered the success for the problem.

Best,

Antonello

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