Opportunity Assessment Structure

Cost reduction cost-benefit analysis opportunity assessment sourcing
Recent activity on Jan 29, 2019
3 Answers
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Anonymous A asked on Jan 28, 2019

I had a case regarding a restaurant chain assesing a potential change from fresh to frozen supplies for a commodity.

I approached the case in terms of impact to each element of the value chain in cost and customer satisfaction.

This worked except it left out the risks/implementation side of it which was an oversight.. How could I have structured/approached this in a more MECE/thorough way?

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Sidi
Expert
replied on Jan 29, 2019
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 300+ candidates secure MBB offers

Hi Anonymous,

at the highest level approaching a "strategic action case" entails the following three elements:

1. Define the OBJECTIVE of the client (without knowing the objective, it is logically impossible to come up with a meaningful structure)

2. Define the criterion according to which the concrete question of the client can be answered, given the basic objective

3. Outline side conditions that need to be met (usually these include capabilities (operational and financial) as well as the ability to manage risks associated with the recommendation

Cheers, Sidi

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Vlad
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Content Creator
replied on Jan 29, 2019
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

What was exactly the objective of the change? Clarifying the objective is the first and the most important step. You can not build a proper structure without it.

Best

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Anonymous A replied on Jan 29, 2019

Frozen produce is said to be cheaper - 'should the company change to frozen produce'

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Sidi gave the best answer

Sidi

McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 300+ candidates secure MBB offers
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