The Integrated Business Framework (IBF)

The Integrated Business Framework (IBF) was specifically developed for

solving case interviews at the top-tier management consulting firms to help
candidates having a solid MECE toolbox at hand to approach the most
common case interview types with just one single framework, which is easy
to remember even in high-pressure interview situations. The IBF serves as
the basis for the nine most common case types in the subsequent chapters.

The main components of the IBF are

• Strategy (Company, Customer, Competition)

• Operations (Revenue, Costs, Cash Management)
• Organization (Human Resources, Structure, Processes, Systems)
• SILENT

The first three components (Strategy, Operations and Organization) are

those which management can influence directly and can therefore be levers
that management can pull to increase the company’s value.

1
The forth area is SILENT and serves as an acronym for external factors
surrounding the company (common discussion areas around these topics
shown in brackets):

• Stakeholders (e.g. relationship management with all stakeholders of

the organization, e.g. shareholders, supervisory board, general
public, lobbying institutions)
• Investigators (e.g. consideration of regulatory bodies, both
governmental and non-governmental)
• Legislation (e.g. consideration of legal restrictions and changes in
legal matters)
• Economy (e.g. consideration of the general economic trends and
their implications like unemployment rates, disposable income,
spending power)
• Network (e.g. management of supplier relations, sales and
distribution channels, logistics infrastructure and strategy)
• Technology (e.g. observation of technological trends and
establishment of new technological standards, use of technology for
increasing efficiency/cost reductions)

2
 1. Growth Strategy Cases
Strat
1 Growth Strategy
Strat
Oper Orga
SILENT

• Company: Competitive • Legislation: Change of • Revenue: Volume? Price • HR: Capacity? Incentive
position? Strengths/ legal environment? level, trends, strategy and schemes?
weaknesses of the • Economy: Economic elasticity? Complementary- • Structure: Current and
company? cycle? Buying power? /substitute products? future business structure
• Customer: Target groups? • Network: Relationship, Marketing, positioning? (divisional, functional,
Industry growth and trends? power, capacity and Product lines and product matrix, etc.)?
Needs? Market saturation? flexibility of suppliers and lifecycle? • Processes: Process
• Competition: Industry distribution channels? • Costs: Cost level and orientation and customer
structure? Strategies? • Technology: Trends? New structure? Importance of focus? Efficiency
Strengths/Weaknesses? standards? costs? enhancement?
Barriers? • Cash Mgmt.: Financial
means available?
Example:

Structure "In a first step, I want to take a closer look at external factors
your plan such as the market, customers, and competition, and identify any
growth potential in conjunction with the strengths and Company
weaknesses of the client company and beyond. For this, it is
also necessary to understand the current revenue and cost
streams in more detail. Strategy
Customer Competition
On this basis we can verify various growth options on their
suitability, if possible also quantifying volume, price and costs, in Operations Organization
order to assess the revenue and profit contribution.
Revenue Human Resources
Finally, I want to address the specific implementation of the
growth strategy such as funding for the implementation, $$ Costs Structure
company structures and processes as well as incentive scheme Cash Mgmt. Processes
for employees."
Systems

S I L E N T

Market/Clients Competition Company External Factors Implementation

• How strong is market • What are the • What is the • Are there legal • What growth options
growing? How does competitors’ performance of our changes? come into question?
our share change? strategies? What business units? • How does the • How fast can they be
Search • What changes are customer segments • What are the current ecnomic cycle affect implemented, and do
your there within the are / are not covered? revenue (price and our growth? we have the
industry? • Their strengths and volume) and cost • Are suppliers and resources?
answers • What growth weaknesses? Why streams? sales channels critical • Is the growth
possibilities exist? and how they are • What are our elements for our supported by
With which effects on doing better? strengths and growth? incentive schemes,
the revenue and • Is an acquisition pos- weaknesses? • Is technology an structures and
cost? sible and reasonable? important factor? process?

• Clearly define those growth opportunities that exist for the company - you will find the basic starting points for growth in the
profit equation: more volume, higher prices, and lower costs (fixed/variable) if the cost side is relevant as well.
• Try to quantify the turnover and profit contribution of the growth option(s) defined by you.
Synthesize • Also, think of the implementation: Are the resources available? How fast can results be achieved? What must change for the
your case company? Point towards more in-depth analyses on demand.

3
 2. New Market Entry, New Product Launch,
New Positioning Cases

Redirection – New Market, New Product, New Positioning

Strat
2
Strat
Oper Orga
S ILE NT

• Revenue: Level of • Com pany: Product • Investigators: Regulators? • HR: Capacity? Know -how ?
demand? Willingness to portfolio? Cannibalization? Restrictions? Incentives?
pay? Revenue or Geographic presence? • Legislation: Legal • System s: Performance
profitability goals? Pricing • Custom er: Market size? conditions? management?
strategy? Market grow th? Lifecycle? • Econom y: Economic cycle?
• Costs: Cost structure? Segments? Entry barrier? Economic status, income?
Meaning of the costs? Market entry strategy? • Netw ork: Logistics?
• Cash Mgm t.: Financial • Com petition: Structure? Distribution channels?
resources or budgets? Intensity of competition? Suppliers? Strategic
Products? Strategies? partners?
Reactions? • Technology: Advantages
through technology?
Example New Market:
"First, w e need to be clear about the overall strategy and clarify
Structure the derived objectives for the expansion into new markets. On
your plan this basis, w e can assess w hic h mar kets are relevant to us,
especially in ter ms of revenue potential and entry barriers. In Company
the next step, w e should analyze these markets closer and
particularly go into com petitors and their products. Finally, the
topics of the im plementation are to be clarified, such as the Strategy
concrete market entry strategy and the available resources." Customer Competition

Example New Product: Operations Organization

"First I w ould like to understand more about the initial situation
(product, competition, market size and segments, customer Revenue Human Resources
needs). On this basis, w e can estimate our potential market
share and assess the turnover and profit contribution of the $$ Costs Structure
new product. Finally, w e should get into the topics of Cash Mgmt. Processes
im plem enting along the value chain, as w ell as the financing." Systems

S I L E N T

Demand/Revenue Product Industry Competition Implementation

• What are market size, • What and how • What structure does • Which player has • Which market entry
market grow th and sustainable is the the industry have? w hich market share? strategy are w e
market segments? USP? • Which players and • What are the products choosing?
Search • What market share or • How much does w hich factors affect and strategies? • Do w e have the
your revenue/profit do w e production cost? the industry currently? • What are their know -how and
expect? • Does the product • Which entry and exit strengths and management
answers • What is our pricing have to be adjusted to barriers exist for w eaknesses? resources?
strategy? Price level? new countries? players in this • How is the • How are w e financing
• Which distribution • How does it fit into our industry? competition going to our plans?
channels do w e product portfolio and react? • What risks are there?
have? product life cycle?

• Make a clear decision (yes/no), w hether the entry into a new market, the development of a new product or a repositioning of
the company should take place.
• If possible, quantify the sales and profitability and point out the most important topics for the market entry, product
Synthesize development or the repositioning.
your case • Also, think of the operational implementation of the project and indicate more in-depth analyses on demand.

4
 3. Mergers & Acquisitions Cases

Transaction – Merger, Acquisition, Alliance

Strat
3
Strat
Oper Orga
S ILE NT

• Com pany: Strengths/ • Stakeholders: Approval of • Revenue: Influence on • HR: Capacity? Know -how ?
w eaknesses of the supervisory committee? volume, price, profitability? Lay-offs? Company
companies? Competitive Hostile acquisition? Revenue synergies? cultures?
position? Rationale of the Representation in Overlap of customer • Structure: Current and
transaction? Acquisition media/communication? structure/segments and future structure?
candidates? Exit strategy? • Legislation: Antitrust products? Cannibalization? • Processes: Cross
• Custom er: Customer objections? Realization time? company integration of the
structure and needs? • Econom y: Economic • Costs: Cost synergies? processes? Interfaces?
Industry trends? Market cycle? Valuation level of Realization time? Unification?
saturation? companies? • Cash Mgm t.: Financing • System s: Integration? Time
• Com petition: Reactions? • Technology: Trends? possible? Equity or outside and costs?
Consolidation w ave? Multiple emerging capital? Debt level?
standards?

Structure Example:

your plan "Many aspects are to be considered w ith complex transactions.

In the first step, I w ould like to analyze the strengths and Company
weaknesses of the companies involved, and how the acquisition
can support our com petitive position. With this, w e should also Strategy
get into current industry trends, possible reactions of
Customer Competition
com petitors and external influences.

In the second step, w e should understand in detail w hich Operations Organization

revenue and cost synergies exist and also analyze any
potential negative impact on price and volume. It is also Revenue Human Resources
important to consider how and in w hat tim e fram e w e w ill realize $$ Costs Structure
synergies, and w hat resistance is to be expected. Here I w ould Cash Mgmt. Processes
like to particularly get into the aspects of personnel, future
organizational structure and process organization of the Systems
company and the IT systems, as well as risks associated w ith
the im plem entation and funding."
S I L E N T

Rationale Revenue Costs Organisation Implementation

• What are the reasons • What is future • What synergy effects • What is the structure • Do w e have know -
for the transaction? revenue potential? are there? of the new company? how and resources?
• What trends exists in • Is there potential for • How much costs w e • How are structure, • Is the operative daily
Search the industry? cross-selling? can save? processes and business affected?
your • How w ill competitors • What advantages and • How fast can they be systems of the • How high are the
react w hen the disadvantages w ill realized? integrated companies costs for the
answers transaction takes this bring to our • Do they have a and how long does implementation?
place? customers? negative effect on the that take to integrate? • How are w e financing
• What happens if the • Will our best staff stay operational business? • What difficulties and the transaction?
transaction does not loyal during this resistances are to be • Risks?
take place? phase of uncertainty? expected?

• Make a clear decision (yes/no) w hether the possible transaction should take place.
• Base your statement on the 3 main reasons that create/destroy value for the company and justify your decision, and if
possible, also quantitatively.
Synthesize • Also, think about the risks in the course of the implementation and the emotional components in people, as w ell as about
your case reactions of the competition - suggest further analysis if necessary.

5
 4. Profitability Cases

4 Oper Profitability
Strat
Oper

• Revenue: Market size and • Company: Competitive

share? Sales streams? position? Strategy?
Segments? Ratio to costs? Strengths/weaknesses of
Trends? Measures taken so the company?
far? • Customer: Target groups?
• Costs: Relevant cost Industry growth and trends?
blocks? Ratio to sales Needs? Market saturation?
streams? Comparison with • Competition: Industry
competition? Trends? Fixed structure? Strategies?
vs. variable costs? Strengths/Weaknesses?
Measures take so far?

Example:

Structure "To influence a company's profitability, you can fine-tune the

your plan price, volume, and costs, which influence each other and also
depend on external factors. Company

In the first step, I would like to understand what measures were

previously taken to increase profitability and the achieved effect. Strategy
Then I go into the market size, revenue streams, customer Customer Competition
segments, as well as their contribution to earnings, as well
as on fixed and variable costs. Operations Organization

On this basis, we can compare our own performance with the Revenue Human Resources
competition in a next step, and orient ourselves on best
practices, and on the other hand, define corresponding $$ Costs Structure
strategic and operational measures to increase profitability, Cash Mgmt. Processes
and go into their implementation." Systems

S I L E N T

Revenue – Volume Revenue – Price Costs – Variable Costs – Fixed External Factors

• How big is the market • How and why does • What are the big cost • What are the biggest • What are the market
and our share? the price develop in blocks and how do cost blocks and how shares and strategies
• How and why does single segments? they develop? Are do they develop? Are of the competitors?
Search the volume of the • How high is the price there differences in they actively • What industry trends
your segments develop? elasticity? segments? Are they managed? exist?
• Company-specific or • How are we doing actively managed? • Can they be reduced? • What target groups
answers industry-wide trend? compared to the • What variable costs In which tmeframe? are there and how
• How can the volume competition? Does it along the value chain • Benchmarking? Out- can they be
be increased? make sense to can be reduced? sourcing/make to segmented?
raise/lower the Benchmarking? variable costs?
prices? Outsourcing?

• Break down the revenue and costs until you come across interesting information because average values are often misleading
- ensure structured notes so that you will not lose track.
• Compare the own development with the one of the environment and define appropriate measures to increase profitability - try
Synthesize also to quantify these.
your case • Consider a prioritized approach during implementation of measures – which measures can achieve rapid success?

6
 5. Pricing Cases

5 Oper Pricing
Strat
Oper Orga

• Revenue: Pricing strategy • Company: Products and • Systems: Proactive and

so far? Profitability/margin? positioning? Product life systematic pricing? Active
Price development on cycle? cost management?
product level? Influence on • Customer: Customer
pricing? Measures and needs? Willingness to pay?
reactions so far? Pricing Industry and price trends?
strategy in future? Impact Elasticity?
on revenue and profit? • Competition: Products and
• Costs: Cost structure of the positioning? Pricing
product? strategy? Cost structure?
Strengths/weaknesses?

Example:

Structure "To determine the optimum price level, I would like to understand
your plan more of the company, the products, and the positioning, as well
as of external factors such as markets, customers and Company
competition.

In the first step, we should go into the previous pricing and Strategy
profitability of each product as well as any measures that were Customer Competition
already taken in this area. After, we analyze market trends,
customers, and their needs as well as the willingness to pay Operations Organization
and our competitors.
Revenue Human Resources
On this basis, we can set the optimal pricing strategy, and
quantify the impact on sales and profit as much as possible. $$ Costs Structure
Finally, according to relevance and available time, I briefly want Cash Mgmt. Processes
to go into the issue of costs, as well as on the establishment of a
Systems
system to proactively and systematically manage the prices in
the future."
S I L E N T

Market &
Pricing Competition Costs Implementation
Customers
• How were the prices • What products/ • What image do we • What meaning do the • How can we actively
set so far? For what positioning does the have on the market? costs have? manage prices?
products? competition have? • Where are we in the • What is our cost • How do we commu-
Search • How do the prices • What price strategy life cycle? structure? nicate price changes
your change in the lapse of does the competition • What are the • Do we actively to sales channels
time? Are they too have? Successfully? customer needs? Are manage our costs? and consumers?
answers high/low? • How high are their they willing to pay? • Can we pass on • What reactions are to
• What price strategy prices in comparison? • What influence do increasing costs, or be expected of
for the future? With • What is their costs customers have on prevent a price customers and
what impact on structure? Are there pricing? increase by reducing competition and how
sales/profit? best practices? costs? do we deal with it?

• Make a clear decision (yes/no), whether the prices should be changed and if so, by how much.
• Support your recommendation with three main reasons that create/destroy company value via pricing.
• Try to quantify the impact of your recommendation on volume, revenue, and profit.
Synthesize • Indicate possible difficulties in the course of the implementation and try to anticipate possible reactions of customers and
your case competition.