Chapter 3 Notes

What is the global population?

7.9 billion

How many people are there per generation

80 million

What is the average life expectancy of an american?

80 years

breakeven point in price

(total fixed cost/production unit volume) + Variable cost per unit

Best practices for reccomendations?

- don't hedge, choose an answer and defend it - lead with your answer and then justify it - be prepared for them to tell you no - show them your recommendations visually - make them feel like a client - if your answer is no; give them an alternative - be prepared with actionable steps to take in the short term with a reasonable budget that will move the dial

Best practices for note taking

- use bullet points and highlight key terms - do math on separate sheet and label the calculations - display them visually - only write on one side of the paper

What is the income breakdown in the US

30% top earners, 50% middle class, 20% lower class

How long should a summary be?

30-90 seconds

What is the population of the US?

320 million

What are the 6 types of scenarios you might be in?

1) 5 page written case, 20 min to read and then pitch 2) 25 slide deck, need to reduce to 7 + 1 recommendation slide and pitch 3) 3 page written case, need to asses and then hand-draw out 3 slides (no calculator or computer) 4) group interview: throw out case and you all respond simultaneously 5) group pitch: get written case have 60 minutes to read, and design a pwpt 6) you get a deck and have 24 hours to prepare a presentation for the next day

What are the 3 main skills you need to develop outside of critical thinking skills?

1) mental math 2) graph 3) pwpt

How many households are there in the US?

100 million

What is the amount of people per age?

4 million

How do you approach a population based problem?

Break it down into generations (0-20, 21-40, 41-60, 61-80) and then go from there

When should you do a final slide?

Create the "final slide" at the beginning and fill it in as you go

Compound Annual Growth Rate

Final Value / The initial value. Raise the result to the power of 1 divided by number of years

How do you approach a market sizing question?

First break it down into one of the 4 categories: population based, household based, world based, or wild card

What is the idea box?

Idea box is a spot in your notes where you can put in a solution that pops into your head as your are listening to the question

How do you structure a final slide?

Make it like a scorecard with the missing spaces for the information you are trying to solve for

Why is the idea box important?

Makes sure you don't forget that initial thought but prevents you from blurting it out and sounding rash

profit margin

Net Income/Revenue

Who asks factor questions?

Non-consulting firms (pepsi, J&J) - they allow them to get a sense of your problem solving skills without taking up as much time

ROI

Profit from investment / investment cost

What are the most common types of math questions you will get?

ROI, Multiplication/ division with lots of zeroes, percentages, breakevens, weighted averages, net present value

Net income

Revenue- Expenses

Contribution margin

Revenue/ Unit - Variable Cost / Unit

How do you approach a worldwide question

Take the population of one country (US) and extrapolate

When would they ask you to do a final slide?

Typically when you are doing a lot of solving for equations

How are factor questions asked?

What factors influence 'x' or what factors would need to be considered

If they ask you to summarize; what do you do?

answer immediately; do a short recap then go over 2-3 main points / recommendations

How do you approach a household problem

break it down by income

Breakeven point in units

fixed costs/(price-variable costs)

How should you set up your notes?

two column (one third, two thirds) left colum = problem, right column = structure for decision / solution