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:
Costs should be broken down into fixed and variable costs.
Sample Fixed Costs:
Rent & Utilities
Personnel
General/Administrative
Learners may include specific minor things like software systems, infrastructure, etc.
Sample Variable Costs:
Inventory
Learners might specifically write out items like produce for FarmPizza
Marketing
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:
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:
SylvanHome:
Partnerships with other eco-friendly products
FarmPizza:
Delivery service
Take home meal kits
Specialty/bespoke orders
Catering events
Vizual:
In-app purchases
Since these are fictitious businesses, learners can include anything that may reasonably be within the scope of their industry.
Want to print your doc? This is not the way.
Try clicking the ⋯ next to your doc name or using a keyboard shortcut (
Week 1 Mentor Guide
