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Anonymous A

on Aug 07, 2021

Global

How to approach the following type of questions?

(Sorry if this is a stupid question)

Suppose the purpose of the case is to improve a metric like cost/revenue/profits/time quantitatively, for instance:

1. How will you help our client increase 50% profits by next year?

2. Reduce costs by 25% by next 2 years

What is the correct way to reach a solution in either case?

I understand that the answer would be based off the data provided to the candidate at the time, but which resulting metric would be considered the best answer in both cases?

Could some of those metrics be penetration rate/CAGR/profit margins in case of increasing revenue/profits?

What about costs?

Thank you so much for any kind of guidance in advance!

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Top answer

Ian

Coach

on Aug 07, 2021

Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi there,

In terms of what metric you use it truly depends on the case! You need to let the case “tell you” what's needed.

That said, when it comes to increasing profits, you can do this by increasing revenues, decreasing costs, or both. If reducing costs, all you can do is cut costs!

The “metric” to use is literally just going to be $ or %…and trying to reach the target they've set!

Deleted user

on Aug 08, 2021

For the example you have given, this is your classic profitability case. So use that framework and work with data/info provided to drill into revenue or cost or both. Not sure what's confusing you?!