Question

‘Applecore’ is one of the leading management consultancy firms in the UK since early 2000 and they have an enviable track record among a diverse clientele across several major industries in the region. You have recently joined Applecore as a management consultant and your firm, on the basis of a good reference from another long-standing client of yours, has received a call from a large automobile manufacturer to go and meet them for discussions to explore if your firm can take up a major consultancy work for them in the background as below.

The automobile manufacturer performed extremely well since its inception in 1995 but in the last 3-4 years they have been posting continuously disappointing results owing to the increasing competition from imported brands, a somber growth of the economy and a variety of other reasons. The manufacturer realized they cannot continue with this kind of a performance for long for reasons of diminishing profitability and hence are planning to hire one of the leading management consulting firms to undertake a consultancy work in the hope that the consultancy firm would be able to do a rigorous study of their value chain and come up with feasible solutions for restoring their profitability and set them back on a promising future track.

This automobile manufacturer, new to Applecore, is assigned to you as your new client by your firm and your immediate job is to initiate the first meeting with them to understand their requirements, make an effective pitch to bag the consultancy contract in the light of stiff competition coming from other good leading consultancy firms also vying for the same contract. You are further expected to work and deliver on the project within challenging timeframes.

         In the background of the above case, answer questions 3 and 4 below:

Q1. As a management consultant, how will you go about bagging and delivering the project?

Q2. Considering the nature of the consultancy assignment that requires in-depth value analysis, what and how will you apply/use an appropriate analytical model to the client’s business?

Answer 1

Ans1 – Part 1- Bagging The Project:

Project shall be awarded by client only if a viable value plan with clear cut benefits in concrete terms are presented , goes without saying within a quality time frame.In addition the capability of the Consulting firm too has to be presented that will give client the required level of confidence in the team , here since Applecore has been recommended by another client this credential will have to be leveraged so as to make the Auto mobile client believe in the capabilities of Applecore to deliver.

Ans1 – Part 2- Delivering The Project:

Project will only get delivered if realistic and practical aspects of improvements are promised. In case exaggerated plan is presented it might get the firm the project but delivery is bound to fail and that too when timeline is of essence. Milestone based approach shall help which shall keep giving the management confidence of values flowing and enhancing their belief in the realisation of the overall plan. This shall also act as a monitor to the overall project sticking to the planned timelines. Close and regular monitoring of the activities are core to the delivery. Also sufficient buffer needs to be build up into the plan as there are always few surprises on the way.

Another important aspect shall be right skilled team members and constant interactive environment or else things tend to fall between chair thus hurting the overall delivery. Clear cut escalation matrix to be in place also.

Ans2 – Analytical Model:

There should be two way thrust in the approach to doing the analysis –

· Studying the Cost side

· Analysing the Revenue side

Both need to be addressed in order for the company to come on track , merely cost efficiency without top line growth will not help long period sustenance and same applies if cost inefficiencies exist the benefits of top line growth shall get offset.

Cost Analysis:

Possibilities of cost reduction to be explored. This will increase cash efficiency and a possibility of financing discounts to consumers to make the offering more competitive and lucrative. Efficiencies in manufacturing costs to be explored. Also keeping in mind the fact that economy has been doing not good all efforts to be made to pass cost benefits to the consumer as in dull economy purchasing power in impacted the most and first thing that gets dropped from consumers list is items like automobile as these can be postponed but the beauty is with a discount offering chances of pulling back consumers is very good. This discount needs to come from the cost efficiencies.

Top Line Growth:

Pricing is a factor that plays a key role when there is competition and dull economy. There is no big a factor in bringing volume as the Price.This price cut can be achieved by aligning the component costs of the product. There are various aspects wherein cost of manufacturing be brought down without giving a feel to consumer – like quality of metal used , interiors etc.

In dull economy Consumer focus is on the price , he is too sensitive to a even small variation in price

Consumer Mindset:

An effective marketing campaign focussing primarily in establishing a differentiated product image and offering all values as competition will help.Additionaly a dosage of patriotism mixed in a fine ratio in the campaign shall give that extra edge against foreign products.