Case Prompt:
Your client tk Commodity Trade (tk ComT) is a global materials trader - they buy and sell raw materials. tk ComT had stable EBITDA margins in recent years. They consider expanding their target market and entering the Lithium (electric vehicle battery grade) trade, due to the current high demand for electric cars and Lithium-ion batteries. The client is concerned about minimizing the cash spending and about improving the payback period for this market-entry campaign, due to corporate cash policy.

As a consultant, you are expected to calculate the size of the Lithium market and to assess the payback periods for an organic market entry (with own resources) as well as for the acquisition of an established company. Finally, the client expects a proposal about the best market entry strategy and potential opportunities and risks.

\*Be MECE in all your answers!\*

Question 1. Lay out a framework for how you would approach the case. Use 4-6 buckets and with with layers deep. Structure your framework using a 1ai...2bii numbering system.
user
Sure, I'd be happy to assist you with constructing a framework for this case using the MECE (Mutually Exclusive, Collectively Exhaustive) principle. Here it is:

1. Overview (1a):
   - Client Background (1b): brief introduction to tk Commodity Trade and its business model.
   - Market Overview (1c): description of the current market for Lithium, local and global.
   - Market Size (1d): estimation of the size of the global Lithium market and its projected growth rate.
   - Market Buyer & Supplier Profiles (1e): brief profiles of key buyers, suppliers, and middlemen in the Lithium industry.

2. Market-Entry Strategies (2a):
   - Organic Growth (2b): providing details about the organic growth strategy, including potential barriers, costs, and timelines.
   - Acquisition Strategy (2c): explanation of how the acquisition route works, possible obstacles, and required expenditures.

3. Payback Periods Assessment (3a):
   - Organic Growth Payback Period (3b): assessment of the expected time it would take to recover the expenditure for introducing a new Lithium product line.
   - Acquisition Payback Period (3c): estimation of the amount of time required to recapture the purchased company cost.

4. Comparison (4a):
   - Organic vs. Acquisition (4b): organize a comparison between undertaking a brand-new venture section by section via "untimely section," early-growth, financial projections, management, and talent, etc.
   - Buying vs. Raising Capital (4c): discuss the benefit and drawback of financing by Payments-in-kind, Royalty Risk-sharing, Sell Yourself Investment, etc.

5. Recommendations (5a):
   - Recommended Method (5b).
   - Market positioning (5c).
   - Pricing strategy (5d).
   - Distribution Channels (5e): distribution channels and the need for customary billing and settlement systems.
   - Marketing Communications (5f): outline unique selling plans, Public Relations activities, promotions, digital and print advertisement, social media, events, and so on.

6. Potential Investment Opportunities (6a):
   - Brand-New Market Entrant.
   - Partnership Opportunities.
   - Product Mix.

7. Risks Analysis (7a):
   - Physical risks (7b).
   - Political Risks (7c).
   - Regulatory Hazards (7d).
   - Economic or Ecological Risks (7e): social factors, for example, fluctuation of an economy, political views, and so forth.

I hope this structure will be useful to you. Please feel free to let me know if you need extra information.
assistant
Case Prompt:
Your client tk Commodity Trade (tk ComT) is a global materials trader - they buy and sell raw materials. tk ComT had stable EBITDA margins in recent years. They consider expanding their target market and entering the Lithium (electric vehicle battery grade) trade, due to the current high demand for electric cars and Lithium-ion batteries. The client is concerned about minimizing the cash spending and about improving the payback period for this market-entry campaign, due to corporate cash policy.

As a consultant, you are expected to calculate the size of the Lithium market and to assess the payback periods for an organic market entry (with own resources) as well as for the acquisition of an established company. Finally, the client expects a proposal about the best market entry strategy and potential opportunities and risks.

\*Be MECE in all your answers!\*

Question 1. Lay out a framework for how you would approach the case. Use 4-6 buckets and with with layers deep. Structure your framework using a 1ai...2bii numbering system.
user
1a. Market size and demand for Lithium

* Research current market size for Lithium, including production and consumption levels
* Analyze trends and growth rates in the electric vehicle and Lithium-ion battery industries
* Forecast future demand for Lithium based on projected growth in electric vehicle adoption and battery production

1b. Competitive landscape and market entry options

* Identify key players in the Lithium market and their market share
* Assess the feasibility of organic market entry versus acquisition of an established company
* Evaluate the potential benefits and drawbacks of each market entry option

2a. Financial analysis of organic market entry

* Estimate the costs associated with organic market entry, including capital expenditures, operating expenses, and working capital requirements
* Calculate the expected revenue from Lithium sales based on forecasted demand and pricing
* Determine the payback period for organic market entry by comparing the expected cash inflows to the initial investment

2b. Financial analysis of acquisition

* Identify potential acquisition targets and their financial performance
* Estimate the purchase price and financing costs for the acquisition
* Calculate the expected revenue from Lithium sales and any synergies or cost savings that could be achieved through the acquisition
* Determine the payback period for the acquisition by comparing the expected cash inflows to the purchase price and financing costs

3. Proposal for market entry strategy

* Compare the payback periods and other financial metrics for organic market entry and acquisition
* Evaluate the potential opportunities and risks associated with each market entry strategy
* Recommend the best market entry strategy based on the client's goal of minimizing cash spending and improving the payback period

4. Implementation plan and next steps

* Develop a detailed implementation plan for the recommended market entry strategy
* Identify any potential roadblocks or challenges that may arise during implementation
* Outline next steps for further analysis or action, such as conducting due diligence on acquisition targets or developing a more detailed financial model for organic market entry.
assistant