Capital One Case Study Essay Example for Free

Capital One font field of operation Essay What is a case interview? The grammatical case query What specific skills does it assess? How to prep are for a case interview? An interactive example.What is a eccentric person Interview anyway?The shell Interview show of a business problem. Similar to what our associates encounter every day. Series of open-ended questions. Theyre designed to shake your conceptual, quantitative, analytical and most importantly creative abilities.The Case InterviewThere are several types of cases. distributively is designed to assess different skills.Classic Case The Case Interview Should an organization add might? How should an organization react to a sweet competitor? Should an organization enter/exit a new/old market?Measures Your broad functional skills Your big-picture perspective Your comfort with detail and analysisSpecial Case The Case Interview Why are manhole covers round? Whats the estimated weight of a Boeing 747? What will amour rates do next?Measures Your comfort with ambiguous challenges Your level of creativityThe Case InterviewWhat are we looking for? Logical skills Analytical/reasoning skills Conceptual problem-solving abilities Critical path thinking FlexibilityWhat do we mean by. .The Case InterviewProblem-solving ability? tail assembly you identify the key routines of the case eon accurately and methodically r apieceing the solution? Critical path thinking? Can you use the clues that human body on each other while staying on track and focusing on whats applicable? Flexibility? . Can you adapt your answers to a changing situation?The Case InterviewWhat do you read to bring?Your logical business sense The Case Interview How do decreasing marginal cost affect profitability? What effect will fixed be have on the result?Your numeral aptitudeFrom basic mathematics to. Algebra Probability Weighted averages Unit conversionYour strategic interpretation skills The Case InterviewC an you Interpret your answers impact? Assess alternatives? Keep a clinch on the big picture as well as the minor details?Your presentation skillsCan you. Clearly state your thoughts and synthesize information? Explain how your answer changes in the face of changing variables? champion your answer?The Case InterviewBe prepared Lets work through a case together.Background InformationThe Case Interview You are a manager at a company that markets various products and services and that is looking to diversify You receive some information indicating snip create may be interesting You are considering developing a new magazine but are not sure how profitable it might be What are some of the issues you must consider when evaluating the magazine business?Things to considerThe Case Interview Defining the target market Competition of competitors, fragmentation, brand anticipate Build off of core competencies Barriers to entry Business cycle stage Method of measuring viability opportunity costOur next step is to understand the economics of the business. What are the profit drivers in the magazine create business?The Case InterviewMain profit drivers of the publishing business include Revenue Sources Subscriptions soresstand gross sales Advertising Customer lists Internet Costs Printing Distribution mental ability Development Marketing/promotionsThe Case InterviewThrough some initial research you have been able to determine the following You lot charge 25 for an annual subscription of 50 issues You female genital organ give back 1 in advertising revenue per issue for each subscription Printing and distribution costs are 1 per copy per issue Content development costs run 1 million per form Lets ignore newsstand sales for now Lets ignore marketing expenses for now How much profit will yougenerate a year from one incremental subscription?Lets figure it out together. The Case InterviewSubscription revenue per year = 25 Advertising re venue per year = 50 1/issue x 50 issues Yearly production and distribution costs = 50 expediency from one incremental subscription = 25 25 + 50 50 How many subscriptions would we need to sell in order to breakeven on this venture?The Case InterviewHow many subscriptions do we need to sell to break even?Profit (contribution margin) = 25 per subscriptionMagazine content development = 1 million per yearBreakeven = 1 million/25 = 40,000 subscriptions Given you need 40,000 subscriptions to breakeven, do you move forward?What about marketing costs? The Case InterviewYour company has expertise in direct mail solicitation so you decide to use that method to market your new magazine. Each piece of mail costs 0.50. You are able to achieve a 2% response rate. How much does it cost you to sign up a lecturer?Cost per reviewer calculation The Case InterviewCost of mailing/response rate = Cost to sign up one subscriber 0.50/2% = 25 per subscriber Another way to calculate cost per subscriber As sume you mail offer to 100 people Costs = 50 (0.50 x 100 people) Responders = 2 (2% of 100) Cost per responder = 50/2 or 25 How will this affect your breakeven calculation?New break even calculation The Case InterviewOld contribution margin Marketing costs New contribution marginNew contribution margin = 25 25 = 0 OuchWhat can we do to make this venture better?Some possible considerations The Case Interview tack together subscription prices Raise advertising rates Reduce production costs Increase response rate Make each response matter more Consider renewals and multi-year subscriptionsThe Case InterviewRenewals look like an obvious track to explore In the best case scenario, zero cost to acquire with no drop in revenuesHow might you encourage renewels?Some possible options The Case Interview Price promotion Competitions Marketing step down giftsThe Case InterviewSome market testing gives you 2 possible options1) Do nothing 50% of existing subscribers will renew each ye ar2) Offer a free second year subscription 75% of existing subscribers will renew each year