Hi All,
during my preparation for case interview, I came across a not “classical” case. I would like to know feedbacks on my framework and overall approach. The case is “your friend has inherited a piece of land and would like to know what to do with it”- No other information available.
I approached it as an investment assessment. Please find below my framework summarized.
- CONTEXT ASSESSMENT --> from this assessment I would extrapolate the option/destination for the land to assess financially in my 2nd branch
- Internal factors
- Friend’s fund availability
- Friend’s preferences and skills (e.g. managerial skills)
- Land’s feature: location, land fertility, ecc
- External factors
- Businesses present around the land
- Eventual overall industries growth rates
- Internal factors
- OPPORTUNITY ASSESSMENT--> from the option arisen from the first branch (that could be either launch a business or rent/sell the land) I would assess it with a classical NPV/ROI/Payback of future cash flows (for sake of simplicity profits)
- Quantitative factors
- Revenues forecast
- Costs forecast
- Qualitative factors
- Advantage/disadvantages of the choice
- Quantitative factors
- RISK/NEXT STEPS
What do you think? Could it be a good approach? Did I miss something in my analysis?
Thank you very much!