Intro Management Consulting

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Week 1 Mentor Guide

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Mentor Guideline
INDIVIDUAL CHALLENGE #1 - Problem Solving and Frameworks
Mentor notes:
This challenge tests learner’s abilities on constructing the MECE framework to analyze profitability for three different fictional companies:
Slyvan Home - an ecommerce zero-waste home cleaning products retailer
FarmPizza - a plant-based pizza chain
Vizual - a photo and video editing phone application

Learners are asked to create a MECE profitability framework to break down their chosen company’s costs and revenues. This is expected to be delivered in a slide deck presentation (as a PDF). While each company may have slightly different specifics, the guide below shows a broad overview of what learners could include in each of their MECE breakdowns:

Costs should be broken down into fixed and variable costs.
Sample Fixed Costs:
Rent & Utilities
Learners may include specific minor things like software systems, infrastructure, etc.

Sample Variable Costs:
Learners might specifically write out items like produce for FarmPizza
Shipping & Handling (especially for SylvanHome, because it is an ecommerce business)

Note that of the three, Vizual is likely to have the fewest costs—given that it is a software application with minimal marginal cost per copy sold.

Revenues should be fairly simple. The primary revenues will come from the number of items sold x the cost of each item.
However, learners can be creative in thinking of other revenue streams. For instance:
Partnerships with other eco-friendly products
Delivery service
Take home meal kits
Specialty/bespoke orders
Catering events
In-app purchases

Since these are fictitious businesses, learners can include anything that may reasonably be within the scope of their industry.

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