What a typical prompt looks like
Example prompt
"You need to increase your client's revenue by 40% in the next 2 years."
It is important to understand the problem better by asking some preliminary questions. Some important questions are:
- 1Understand the company: geography, products, customers, value chain.
- 2The objective behind targeting growth.
- 3Current growth rate of the company.
- 4Current growth rate of the industry.
- 5Timeline to achieve this growth if not given in the statement.
- 6Any budgetary constraints to be kept in mind while solving the case.
- 7Keep checking operational feasibility at every stage: are our current plants capable of meeting the increased demand?
Let us look at the different ways of increasing revenues. The methods can be broadly divided into organic means and inorganic means.
Grow the customers and the revenue per customer
Organic means can be divided into the number of customers and the revenue per customer.
Number of customers
Growth via existing channels covers supply (capacity), distribution (online or offline, number of distributors and amount sold per distributor) and demand (improving the quality of current services). Growth via new channels covers new customer segments, new geographies and new revenue streams.
Grow through joint ventures and acquisitions
Inorganic means include joint ventures, mergers and acquisitions. Points to note under these are the criteria for shortlisting companies, identifying key geographies to expand to via mergers and acquisitions, and the timeline for the proposed increase.
- 1Criteria for shortlisting companies.
- 2Identifying key geographies to expand to via mergers and acquisitions.
- 3Timeline for the proposed increase.