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ere they have core skills. In existing businesses they can grow their product market or consider vertical integration. ... Feel out the interviewer: Where are the opportunities? What might be some options you can readily eliminate, . is vertical integration really a viable option for a healthcare provider? Continue to work through the tree systematically. If you ask about opportunities for pushing new products into existing markets and the interviewer seems very interested, pursue this path by offering suggestions for potentially viable new products. CASE 3: The Probing Case A superregional bank is attempting to increase its operating efficiency as a way to boost profitability. You have been asked to look at the noninterest, nonpersonnel expense base ( purchases expenses as a possible source of cost reduction opportunities. How would you determine the potential size of the opportunity for increased operating efficiency? What issues might you run into as you begin such as study? This case is asking you several questions simultaneously most of them are related to the size of opportunity and the means by which you could measure and manage the opportunity. Opening... Explore what kinds of information you would need to conduct such a study. Where would it e from? Often General Ledger and Accounts Payable systems do not provide the necessary information. Probing... this will be some fraction of the total US population (say 300mil). If you assume a uniform age distribution and an average life expectancy of 80 years (you have to make these types of assumptions), you can then estimate that only people in the ages 2070 will be potential buyers. Thus you eliminate 30 of 80 years or 3/8 of the 300 mil population. So, now you are down to a potential buyer pool of about 110 million. Now you might estimate how many people out of 10 play golf say 4 so now 4/10 of 110 gets you down to 44 million people who play golf. Now you have to estimate purchase frequency, how many balls per month an average person buys (you may want to temper this average purchase assumption by a least mentioning that retired people play much more than students). A good guess might be 15. So demand per month is now 15 x 44 million, or 660 million. Finally, you need to estimate the number of months per year that people play golf 12 months in good climate regions, maybe 5 in regions with cold winters so on average 8 is a decent estimate: 8 x 660 = 5280 million golf balls per year. Remember, the number itself is meaningless. The interviewer only wants to see your thinking process. Also, there are many ways to e up with an a