Note* If you are over your limit of Financial Times articles, please sign up for a free FT account on a Yale network to get  unlimited access to articles. If you are over your limit of WSJ articles for the week, please use the Yale Library eJournal database

Three Cases of “Tax Inversion” Acquisitions By merging or acquiring a company in the UK and restructuring its tax headquarters abroad, companies can benefit from lower corporate tax rates. Such opportunities have been termed “tax inversions” and have been highlighted in recent healthcare news. Each deal comes with diverse additional rationales, and varying responses from the targets of acquisition.

• Shire a Jewel in Crown Among Drugmakers (Financial Times): AbbVie  and Shire
  • US pharmaceutical company, AbbVie, put forward offers to acquire Shire, a UK pharma company with a strong rare disease portfolio
• In Medtronic’s Deal for Covidien, an Emphasis on Tax Savings (New York Times: DealBook): Medtronic and Covidien
  • US medical device company, Medtronic, has agreed to purchase UK competitor Covidien
• Walgreen Considers Moving Headquarters Abroad to Lower Taxes (Wall Street Journal): Valeant and Allergan
  • US pharmacy retailer, Walgreens, may use an expansion of holdings in Alliance Boots, a UK pharmacy retailer, to undergo tax inversion

• Besides the lower tax rate that comes with tax inversion, are there other benefits of acquisition in each of these deals? How would you structure this analysis?
• Example benefit: Increased competitiveness for Medtronic-Covidien with the largest player in the medical device market, Johnson and Johnson (Bloomberg)

Note* If you are over your limit of Financial Times articles, please sign up for a free FT account on a Yale network to get  unlimited access to articles. If you are over your limit of WSJ articles for the week, please use the Yale Library eJournal database

Rebalancing your sourcing strategy (McKinsey Insights)

• Instead of the dichotomy of  insourcing and outsourcing, the potential options for a company can be reframed as a spectrum
• Described in this article are offshoring, nearshoring (neighboring countries), farmshoring (lower-cost, home country options), or onshoring
• If a company wants to open a new manufacturing plant, how do you analyze whether nearshoring or farmshoring would the preferred option?

Note* If you are over your limit of Financial Times articles, please sign up for a free FT account on a Yale network to get  unlimited access to articles. If you are over your limit of WSJ articles for the week, please use the Yale Library eJournal database

Taxis vs “Sharing Economy Services”

Road transportation in New York City has been historically dominated by “medallion taxis” or the yellow taxis that are regulated by the city via the medallion system. However, the recently emerging “sharing economy” services have been gaining coverage in the news. Uber and Lyft are similar services that use apps to call a fleet of cars in a given city to meet customers. Below are articles describing new developments.

• Regulation is Hurting Cabs and Helping Uber
• Uber’s Far War on New York Taxis Puts Million Dollar Medallions at Risk
• Why Uber Might Well Be Worth $18 Billion
• Uber Isn’t Worth $17 Billion
• Uber’s Travis Kalanick Explains His Pricing Experiment 

• How do medallion taxis respond to this price cut?
• How does Uber continue to grow under pressure from regulators, taxi competition, and Lyft competition?
• How does NYC respond to this / how does this affect NYC (e.g., tax revenue)?

Note* If you are over your limit of Financial Times articles, please sign up for a free FT account on a Yale network to get  unlimited access to articles. If you are over your limit of WSJ articles for the week, please use the Yale Library eJournal database

Apple and IBM announced a partnership targeted at winning over enterprise users using a combination of Apple’s experience with devices and IBM experience in enterprise software/support. As a result, this week reporters and analysts have offered various perspectives on the partnership.

• Apple and IBM take on corporate market together (Financial Times)
  • General details about the partnership

• IBM and Apple: From Rivals to Partners in 30 Years? (HBR)
  • A historical perspective of the IBM-Apple relationship

• Apple, IBM Enterprise Pact Faces Enormous Challenges (Fox Business)
  • Potential implementation risks

• The IBM Partnership Makes Apple A Real Enterprise Player In Retail (Forbes)
  • The potential of the partnership and what this means for competitors in this space

• How do you mitigate the implementation risks outlined in the Fox Business article? Are there other risks that have not been pointed out?
• How should competitors in the enterprise computing business like Microsoft respond to this partnership?

We are very excited to announce the official release of our 2014 YGCC Life Sciences Casebook!

The casebook can be downloaded for no additional charge for those of you who have previously purchased the YGCC Advanced Resources. If you do not currently have access to the Advanced Resources, you can purchase the entire package for $30 (includes extensive PST, resume and case preparation materials developed by YGCC) from our website:

Click Here to Access YGCC’s Advanced Resources

The 2014 Casebook contains new materials based on interviews from candidates who have received offers from life sciences / healthcare consulting firms in this past year. It includes (1) a diverse collection of cases based on real-world examples, (2) an extensive glossary of life sciences / healthcare terms, and (3) links to other relevant cases from top consulting firms.

We hope that this year’s casebook will provide additional value as you prepare for consulting interviews, particularly if you are interested in life sciences /healthcare consulting.  It can also serve as a resource for people from a non-life sciences background that are interested in learning more about this important industry.

If you have any questions, feel free to contact us at yale.grad.consulting@gmail.com.

Best of luck in your interview preparation!

Sincerely,

Jonathan Chee
Managing Director of Content
On behalf of the YGCC Leadership Team

Note* If you are over your limit of Financial Times articles, please sign up for a free FT account on a Yale network to get  unlimited access to articles. If you are over your limit of WSJ articles for the week, please use the Yale Library eJournal database

As Cereal Slips, a New Battle Over Breakfast Dollars (Wall Street Journal)

• Consumer trends toward rapid breakfast options has attracted the attention of many major fast food chains
• If another national chain wanted to enter this competitive fast breakfast market, what factors would be most important?

GSK opens issue of spinning off consumer division (Financial Times)

• While GlaxoSmithKline is better known for pharmaceuticals products, the company also has significant consumer healthcare products
• How would you analyze the opportunity of a consumer healthcare spinoff?
• How would this move compare and contrast with January’s split of Abbott Laboratories split into Abbott Laboratories (medical products) and AbbVie (research-based pharmaceuticals)?

Note* If you are over your limit of Financial Times articles, please sign up for a free FT account on a Yale network to get  unlimited access to articles. If you are over your limit of WSJ articles for the week, please use the Yale Library eJournal database

The Chinese e-commerce giant, Alibaba is filing for what may be the biggest tech IPO in history. However, its efforts to expand beyond its core business by introducing Chat Apps (Laiwang) and gaming options in Mobile Taobao Apps have not been successful due to the fierce competition from Tencent in China. Alibaba now plans to invest in chat apps and on-line gaming start-ups in U.S.

• Alibaba’s IPO Filing: Everything You Need to Know (Wall Street Journal)
• Alibaba in Talks to Invest in Snapchat (Wall Street Journal)
• Why Alibaba Might Want to Invest in Snapchat (Bloomberg Businessweek)
• Alibaba Invests $120M in Mobile Gaming Co. Kabam at Valuation More Than $1 Billion
• Alibaba Looks More Like GE than Google

For Alibaba:
• How would the potential investments in start-up companies (such as Snapchat and Kabam) change Alibaba’s competitive strength against Tencent in China?
• Should Alibaba diversify its business into chat apps and gaming or focus on its core e-commerce business?

For the start-ups:
• How would the start-up companies benefit from the deal with Alibaba?

Note* If you are over your limit of Financial Times articles, please sign up for a free FT account on a Yale network to get  unlimited access to articles. If you are over your limit of WSJ articles for the week, please use the Yale Library eJournal database

Tesla Looking at California as Site for Battery Factory (Wall Street Journal)
Panasonic and Tesla Sign Agreement for the Gigafactory (Wall Street Journal)

With the goal of advancing mass market electric vehicles, Tesla sets out to partner with Panasonic to establish a large-scale battery manufacturing plant in the United States, known as the Gigafactory.

• What are the factors Tesla needs to consider to determine where to set up its Gigafactory? Among them, which ones make California a better choice?
• In this partnership, what’s the impact for Panasonic, a Japanese multinational electronics company with declining revenue?

An App Like Yo Could Turn Out to Be Bigger Than Twitter (Wall Street Journal)
Yo, a simple App, which sends a contact a notification of “Yo.” , recently received $1.5 million in funding, putting its valuation at between $5 million and $10 million.

• What are the ways for Yo to monetize its user base?
• How does Yo differentiate itself from Twitter and other social Apps

Note* If you are over your limit of Financial Times articles, please sign up for a free FT account on a Yale network to get  unlimited access to articles. If you are over your limit of WSJ articles for the week, please use the Yale Library eJournal database

Blackstone Group LP, a private equity firm out of New York City, is set to acquire Royal Dutch Shell PLC’s half-stake in a massive Louisiana gas field. The firm is currently the largest alternative investment group in the world, specializing in both tangible assets such as real estate, as well as commodities like the liquid gas derived from shale fields.

• Blackstone nears deal for Shell’s Haynesville Shale Stake Sources
• Blackstone Said in Talks to Buy Shell’s Haynesville Stake
• Shell Sets Plan to Boost Return

• Will the rapid development of shale fields lead to a pricing depression in the future for liquid gas commodities, as recently seen in the natural gas market?
• In the past, many companies like airlines have lost significant capital due to hedging with energy commodities that dropped significantly in value after purchase. Will the surge in PE development of shale fields change hedging practices?
• What’s the major drivers for Shell’s decision to reshape its U.S. shale portfolio, that is, to reduce its exposure to North America shale?
• What are the reasons for Blackstone to invest in the Louisiana gas field?

Note* If you are over your limit of Financial Times articles, please sign up for a free FT account on a Yale network to get  unlimited access to articles. If you are over your limit of WSJ articles for the week, please use the Yale Library eJournal database

How to prepare for Asia’s digital-banking boom (McKinsey Quarterly)
With the rapid adoption of eCommerce in Asia, companies have an opportunity to capture an outgrowth into digital-banking.

• How does a smaller bank prioritize the options for digitization outlined in this article?
• What are the barriers to entry for a non-banking entity with a strong digital presence to enter digital-banking? (See Alibaba and Tencent)

When a Spinoff Makes Strategic Sense (HBR)
A resource based view analysis of the strategy behind spinoffs

• What potential resources are generated from the spinoff of News Corp newspapers (FT)?
• What potential resources did Abbott Labs gain / create from spinning off Abbvie in 2013?

Note* If you are over your limit of Financial Times articles, please sign up for a free FT account on a Yale network to get  unlimited access to articles. If you are over your limit of WSJ articles for the week, please use the Yale Library eJournal database

Solar Makers Set for Record 2014 Shipments on Strong Demand (Bloomberg)

Investors still wary of getting burnt by solar (Financial Times)

• Solar panel manufacturers are expecting large growth for the rest of 2014 into 2015
• This growth has been partially stabilized by US government incentive programs
• When the US government incentives drop in 2016, how do manufacturers adjust to this potentially large drop in demand?
•  How to solar manufacturers protect themselves against another excess supply event in this situation?

Note* If you are over your limit of Financial Times articles, please sign up for a free FT account on a Yale network to get  unlimited access to articles. If you are over your limit of WSJ articles for the week, please use the Yale Library eJournal database

On Thursday the FDA approved Merck’s Keytruda for advanced melanoma. Of particular note, Keytruda was approved within three and a half years (2011) while being in Phase I trials by utilizing several accelerated approval methods including “breakthrough therapy designation” and “orphan product designation.” Additionally, this approach allowed Keytruda to receive approval before a Bristol-Myers Squibb drug in Phase 3 (Nivolumab clinical trials started in 2008).

• Keytruda Cancer Drug Approval Is A Triumph For Merck (Forbes)
  • Industry perspective on Keytruda
• FDA approves Keytruda for advanced melanoma (FierceBiotech)
  • Overview of approval process for Keytruda
• Bristol-Myers Sues Merck Over Cancer Immunotherapy Patent (Bloomberg)

• What potential risks did Merck need to consider before utilizing this strategy?
• How does BMS respond to Keytruda’s approval? For example, should BMS reallocate resources on clinical trials for its drug, Nibolumab, to other cancers?
• What does the BMS-Merck lawsuit accomplish?

Dear YGCC Members,

Please find important information regarding full-time opportunities at L.E.K. Consulting for PhDs and MDs below.

Important Recruiting Dates

Application start: August 15, 2014
Application deadline: October 2, 2014

Apply on our website: www.lek.com/careers
Life Sciences Specialist, ’15
*positions are listed by office; please apply to your top choice

First Round Interviews: Early/Mid-October
Final Round Interviews: Mid/Late-October

For more information please visit our website: www.lek.com/careers and our advisor blog: ask.lek.com

Company Description

L.E.K. Consulting is a global management and strategy consulting firm that uses deep industry expertise and analytical rigor to help clients solve their most critical business problems. Founded more than 30 years ago, L.E.K. employs over 1000 professionals in 21 offices across Europe, the Americas and Asia-Pacific. L.E.K. advises and supports global companies that are leaders in their industries – including the largest private and public sector organizations, private equity firms and emerging entrepreneurial businesses. Areas of expertise include Life Sciences, Media & Entertainment, Retail & Consumer Goods, Private Equity, Aviation & Airports (Travel & Leisure), MedTech, Healthcare Services and Building & Construction. With a reputation for solving the most complex issues, L.E.K. helps business leaders consistently make better decisions, deliver improved business performance and create greater shareholder returns. For more information, go to www.lek.com.

Life Sciences Specialist

L.E.K. Life Sciences Specialists have their Ph.D.s in a science field and are from the top programs at leading universities. Life Sciences Specialists are hired for their expertise in the life sciences field, which has proved invaluable to our clients.

Specific responsibilities include:

• Gathering primary and secondary data on markets, competitors, and customers through database and Internet searches, market research and other commercial reports, internal client data, and telephone and in-person interviews.
• Leveraging scientific background and transferring specific knowledge base to the team in order to develop rigorous solutions to client issues.
• Developing rigorous strategic and financial analysis that will be utilized to determine L.E.K.’s recommendation to the client. Examples include developing a spreadsheet model of market growth and competitor share, developing a valuation model for a company or product using discounted cash flow analysis, testing customer sensitivity to product attributes using adaptive conjoint analysis, or determining probability distributions of acquisition value.
• Collaborating with project team members to derive trends, conclusions, and recommendations based upon the analysis. A Life Sciences Specialist must transform what he or she has learned into thoughtful insights regarding the client’s strategic direction.
• Making L.E.K. an enjoyable and rewarding place to work. This includes coaching colleagues and transferring skills, offering constructive advice, and contributing to the social environment of the office.

Application Requirements

L.E.K. does not have a rigid checklist of qualities a potential Life Sciences Specialist must possess. Rather, our recruiting experience has shown that outstanding academic achievement, comfort with quantitative analysis, significant professional experiences, notable extracurricular interests, and demonstrated leadership and initiative are excellent preparation for a position within the Life Sciences Specialist Program at L.E.K. Consulting.

Interested applicants should apply online through our website at www.lek.com/careers by October 2, 2014.

Solution Providers is an internationally established management consulting company and a valued partner to many of the world’s largest international financial services firms. Since its formation in 1996, Solution Providers has supported its clients in all stages of project management from the development of strategies and operational frameworks through technical implementation and handover, enabling its clients to generate added value for their businesses. Solution Providers distinguishes itself by the passion and involvement of its over 150 employees who represent more than 15 nationalities. The company has branches in Zurich, Hamburg, Singapore and New York.

Important Dates

OCR resume submission deadline: October 15, 2014, 9:30 am (https://yale-csm.symplicity.com/students/)

OCR interview date: Oct 28, 2014

Associate Consultant Financial Services

We are looking for motivated students with excellent academic performance, a pronounced interest in financial services consulting, and exceptional interpersonal skills to join our New York based team.

The position offers the opportunity to acquire first-hand consulting experience in the financial services industry, build knowledge on a wide range of companies and solutions, and apply project management best practices in a fast-paced and intellectually challenging work environment. Furthermore, Solution Providers offers a comprehensive training and mentoring program called “Academy Program”, which ensures that employees are continuously trained on their path to becoming Partner.

Desired qualifications:

• Exceptional academic performance in a highly competitive bachelor’s degree program with GPA > 3.5
• Experience in consulting and/or financial services through internships is preferred
• Strong analytical and quantitative skills
• Entrepreneurial attitude with a desire to learn
• Independent thinking and creative problem solving skills
• Excellent written and verbal communications skills
• Flexibility to respond to demanding client needs and tight deadlines
• Advanced Excel, PowerPoint and general IT aptitude
• Ability and willingness to travel up to 70% of the time
• Ability to work in the U.S. without need for visa sponsorship

Consultant Financial Services

We are looking for aspiring junior professionals with some experience, a pronounced interest in financial services and/or consulting, and exceptional interpersonal skills to join our New York based team.

The position offers the opportunity to acquire first-hand consulting experience in the financial services industry, build knowledge on a wide range of companies and solutions, and apply project management best practices in a fast-paced and intellectually challenging work environment. Furthermore, Solution Providers offers a comprehensive training and mentoring program called “Academy Program”, which ensures that employees are continuously trained on their path to becoming Partner.

Desired qualifications:

• 1 to 2 years of experience in a consulting firm or in corporate strategy/development or exceptional academic performance with GPA > 3.5 in a highly competitive master’s degree program and up to 1 year in a consulting firm or in corporate strategy development
• Experience working with or for clients in the banking, insurance, reinsurance or other financial services industries is strongly preferred
• Strong analytical and quantitative skills
• Entrepreneurial attitude with a desire to learn
• Independent thinking and creative problem solving skills
• Excellent written and verbal communications skills
• Flexibility to respond to demanding client needs and tight deadlines
• Advanced Excel, PowerPoint and general IT aptitude
• Ability and willingness to travel up to 70% of the time
• Ability to work in the U.S. without need for visa sponsorship

For more information about Solution Providers and these positions, please visit our website: www.SolutionProviders.com

Note* If you are over your limit of Financial Times articles, please sign up for a free FT account on a Yale network to get  unlimited access to articles. If you are over your limit of WSJ articles for the week, please use the Yale Library eJournal database

The Industries Plagued by the Most Uncertainty (Harvard Business Review)

• Framing industries based on demand uncertainty and technological uncertainty as a comparative tool
• Where do media and apparel fit on this matrix?
• Have industries in similar quadrants or similar positions on the 2×2 matrix utilized similar strategies to overcome uncertainty?
• What other dimensions of uncertainty could be explored? For example, a comment noted policy/regulatory uncertainty affecting sharing economy services

ClearView Healthcare Partners is a premier strategy life science consulting firm located in Boston.   

We provide strategic decision-making support to clients within the pharmaceutical, biotech, and diagnostic industries.  If you are interested in expanding your business capabilities and have a passion or background in the life sciences, ClearView may be a perfect fit.  We are actively recruiting graduate-level students (PhD, MD, MBA) for consultant-level positions.

ClearView represents a unique opportunity for professional growth and client impact in the life sciences.

You will encounter an entrepreneurial environment, interact with a dynamic group of coworkers, become expert in the life sciences, present to clients in critical business situations, and develop a deep understanding of the biopharmaceutical industry. You will be mentored directly by ClearView partners, who have a wealth of experience in life sciences consulting. You will be exposed to a wide variety of business issues and have a diverse and rewarding experience during your tenure at ClearView. Finally, you will accumulate the expertise, skills, and connections which will serve as the foundation and springboard into your future career.

OCR Resume Submission Deadline:  September 29, 2014

Website: www.clearviewhcp.com

Contact: Stephen Chapin

                  stephen.chapin@cleaviewhcp.com

Note* If you are over your limit of Financial Times articles, please sign up for a free FT account on a Yale network to get  unlimited access to articles. If you are over your limit of WSJ articles for the week, please use the Yale Library eJournal database

Ice Bucket Challenge: When Success Creates Problems of Its Own (Wall Street Journal)

• The ALS Challenge led to a month-and-a-half total of $1.13M in donations, almost double of the 2013 annual total of $64.6M
• The non-profit’s business model focuses on arms for public policy/education, research, fundraising/administration, and patient services.
• How does the ALS Association prioritize which arm should receive the bulk of the funding or would investing in a longer-term financial plan be more astute?
• How could the ALS Association use this windfall to spur long term gross receipts (revenue)?

Is Your Local Craft Beer From Out of State? (Bloomberg Businessweek)

• Brew Hub and similar companies are emerging to support “local brews” by providing large brewery space for lease and handling manufacturing as well as offering some business expertise.
• How would a craft brewery wean itself from the services of contract breweries?
• In the case of a craft-beer demand drop, how can Brew Hub respond to minimize damages to revenues?

Note* If you are over your limit of Financial Times articles, please sign up for a free FT account on a Yale network to get  unlimited access to articles. If you are over your limit of WSJ articles for the week, please use the Yale Library eJournal database

In the wake of the Alibaba IPO last week, the future of Yahoo! came to the forefront of tech news. As Yahoo owned a 22% stake in Alibaba and began its sale of Alibaba shares, questions arose about how the windfall would be spent and what the value of Yahoo’s core company is now that it is reducing ties to Alibaba. The following are selected articles on this topic.

• What Happens to Yahoo’s Stock Now that Alibaba Is Public? (Wall Street Journal)
  • The connection between Yahoo and Alibaba
• Yahoo, AOL Pushed Toward Merger By Fed Up Activist Investor (Forbes)
  • Open letter by activist investor Starboard Value details a 4 point plan for Yahoo to pursue including a merger with AOL
• AOL Reincarnated as Digital Ad Powerhouse Entices Yahoo Activist (Bloomberg)
  • Overview of AOL’s current position
• One Way (Maybe The Only Way) Yahoo Can Succeed (Forbes)
  • A alternative opinion piece on the potential direction of Yahoo as a tech investing entity

• With or without a potential merger, what options does Yahoo have in investing its return on the Alibaba IPO?
• What are the actual synergies between Yahoo and AOL, and how would this merger with AOL differ from Yahoo’s previous “aggressive acquisitions” such as Tumblr?

Note* If you are over your limit of Financial Times articles, please sign up for a free FT account on a Yale network to get  unlimited access to articles. If you are over your limit of WSJ articles for the week, please use the Yale Library eJournal database

Warren Buffett Buys New-Car Retail Chain (Wall Street Journal)
What Turned Warren Buffett Into a Car Guy? Economics (Bloomberg Businessweek)

• Berkshire Hathaway has agreed to purchase the Van Tuyl Group, the largest auto dealership chain owned privately.
• A noted synergy between auto retail and Berkshire’s holdings is auto financing internally and insurance via GEICO.
• Is this new Berkshire Hathaway Automotive a bigger threat to established lenders or auto dealers?
• How does each group respond to this emerging competition?

Note* If you are over your limit of Financial Times articles, please sign up for a free FT account on a Yale network to get  unlimited access to articles. If you are over your limit of WSJ articles for the week, please use the Yale Library eJournal database

Amazon is opening a store in New York City in order to possibly tap into the brick-and-mortar retail market and alter its customer interactions.

• Amazon to Open First Brick-and-Mortar Site (Wall Street Journal)
• The Amazon Store: Can a Retail Outpost Help Sell the Fire Phone? (Bloomberg Businessweek)
• In the context of their respective business models, how would an Amazon store compare to other brick and mortar stores operated by tech companies (Apple and Microsoft Stores)?
• Given Amazon’s enormous catalog of products, what categories of items should be displayed in a showroom-like store (consumer electronics, books, apparel, beauty, etc)?