Growth strategy: PrepLounge Coaches War !

case structure Case structure and frameworks MBB Structure
New answer on Jul 09, 2021
3 Answers
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Anonymous A asked on Jul 08, 2021

Hello 

this post is about the growth strategy framework concept, and like any other framework it shall be customized to fit the given case.

I looked at multiple Q&A (on preplounge and outside preplounge) about structuring growth strategy cases that have increasing revenues as a goal. I saw 2 approaches suggested by coaches listed below.


Some coaches called the first structure "not solid/not exclusive"  & suggested the second approach, contrarily, other coaches called the second structure "non-exhaustive" and suggested the first approach.

The first Structure approach: Use a generic framework to allow the candidate ask questions and avoid jumping into the solution structure immediately (which will be the second approach) 

  1.  Analyze External Factors: the argument for having this bucket is if a company wants to grow revenues by 10% in a market growing at 20% versus growing in a shrinking market 
  • Evolution of the market
  • competition 
  • consumers tastes and trends 
  • Regulations

     2. Analyze Internal Factor: Use the algebraic form of R = V x P 

  • discuss revenue streams
  • discuss pricing

      3. Growth Strategy :

  • Organic 
    • Existing revenue sources 
      • Increase Volume
      • Increase Price
    • New revenue sources
  • Inorganic 
    • Acquisitions
    • Partnerships

The Second Structure approach: Uses the third bucket of the first structure above as the structure however I do see that some of the buckets above could be inherited in this structure: Revenues = V x P could be discussed when analyzing the organic branch under existing revenue streams however analyzing the market or external factors is important for the argument listed above 

Growth Strategy :

  • Organic 
    • Existing revenue sources 
      • Increase Volume
      • Increase Price
    • New revenue sources
  • Inorganic 
    • Acquisitions
    • Partnerships

some coaches called the first structure "not solid/not exclusive", contrarily, other coaches called the second structure "non-exhaustive". 

So what do you say? 

(edited)

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Henning
Expert
replied on Jul 09, 2021
Bain | passed >15 MBB interviews as a candidate

I'm not convinced by either, but would also challenge the premise of the question:

  • Firstly, both structures have their flaws: 
    • The first one focuses on process (1. Analyse external factors 2. Analyze internal factors). This does not cover content (what the strategy could be), but process (what you plan to do). But it is not clear how discussing revenue streams or discussing pricing actually will lead to a good answer. 
    • The second structure (much like the third branch of the first framework) is very generic.
  • But more importantly:
    • You need to develop a tailor made framework for every case and just looking at organic/inorganic without much specificity is not helpful. Therefore you shouldn't try to find "the growth strategy framework". It doesn't exist. It needs to be put together specifically for your case and question at hand.
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Sidi
Expert
replied on Jul 08, 2021
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 300+ candidates secure MBB offers

Hi!

Simple Answer - both approaches are bad. :-P 

The first approach is typical junior "bucket thinking" without a logic from which the buckets are derived. 

The second is just conceptually wrong. "Organic" and "Inorganic" are not principal ways to grow. These are just the modes in which a particular growth direction can be executed. Literally EVERY single growth measure can be realized organically or anorganically.

It's a nice example of how casebooks prevent people from thinking.

Cheers, Sidi

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Anonymous B replied on Jul 08, 2021

There is no war, only peace...

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Anonymous A on Jul 08, 2021
Haha … figurative language
Henning gave the best answer

Henning

Bain | passed >15 MBB interviews as a candidate
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