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Business Sense

Business sense refers to the ability to quickly grasp economic dynamics and make decisions that are both strategically and commercially sound. In consulting, it’s not enough to repeat theories from your business degree. What matters is a deep understanding of how companies operate, what drives markets, and what different stakeholders are aiming to achieve.

Consultants with strong business acumen can quickly adapt to new industries, understand client needs, and set priorities that make economic sense. They don’t just ask, “What is analytically correct?” – they also ask, “What truly benefits the company?” This mindset often makes the difference in a case interview.

Table of contents

Why Your Business Sense Matters in Consulting

How Business Sense Shows Up in Case Interviews

1. Define a clear objective.

2. Develop sound hypotheses.

3. Evaluate actions realistically.

4. Interpret numbers in the right context.

5. Make a well-founded recommendation.

How to Train Your Business Sense

Key Takeaways

Why Your Business Sense Matters in Consulting

As a consultant, you’re expected not only to analyze complex problems but also to think in a solution-oriented and entrepreneurial way. A strong business mindset helps you put analyses into context, assess actions realistically, and focus on generating maximum client value.

In day-to-day consulting, you're working under pressure, collaborating with decision-makers, and constantly weighing trade-offs. Those who think commercially and can strategically prioritize have a clear edge.

In a case interview, showing that you understand markets and business models is key – it sets you apart and proves your readiness for the job.

👉 In our Case Library, you can prepare effectively with curated practice cases and put your business sense to the test.

Case by

PrepLounge

RWE Consulting Case: Floating Wind in Japan

RWE is an international renewables company with a proud heritage of more than 125 years in the energy business. Recently, during the Capital Markets Day in 2023, RWE’s CEO renewed the company’s 2030 vision of being a global leader in green energy. To achieve this, additional substantial investments in clean technologies are planned, allowing for a total capacity of more than 30 GW to be added until then. Against this background,RWE is constantly scanning for attractive investment opportunities in core and new markets with a focus on renewable energy sources like offshore or onshore wind as well as photovoltaics. After winning an offshore wind project on the Japanese West Coast, let us assume, for the context of this case study, that RWE is now actively exploring additional opportunities in Japan. The RWE Consulting team was asked to evaluate the attractiveness of the Japanese market and find suitable additional investment opportunities with special interest in the new technology of floating offshore wind. Specifically, your job as a consultant is to provide a “Go or No-Go” recommendation on whether to invest in floating wind in Japan.

4.6

34.1k times solved

Difficulty: Intermediate

Interviewer-led

Market analysis

Market entry

Market sizing

Profitability analysis

Open case

Company case provided by Company case by

SET Management Consulting

SET Case: Strategische Neuausrichtung der Fröhlich Maschinen GmbH

Die Fröhlich Maschinen GmbH, ein mittelständisches Unternehmen mit Sitz in Deutschland, ist auf die Produktion von Spezialmaschinen für die Automobilindustrie spezialisiert. Das Unternehmen hat in den letzten fünf Jahren seinen Umsatz kontinuierlich gesteigert, jedoch ist die Profitabilität stark zurückgegangen. Die Gewinnmarge vor Steuern liegt bei nur 3,75 %, was deutlich unter dem Branchendurchschnitt von 8 % liegt. Gleichzeitig steht das Unternehmen vor internen und externen Herausforderungen: - Interne Herausforderungen: Ein veraltetes ERP-System führt zu ineffizienten Prozessen in der Produktion und Verwaltung. Zudem gibt es Hinweise auf eine unvorteilhafte Kostenstruktur und mangelnde Transparenz bei der Produktprofitabilität. - Externe Herausforderungen: Steigende Rohstoffpreise und ein intensiverer Wettbewerb setzen die Margen zusätzlich unter Druck. Einige Wettbewerber bieten ähnliche Produkte zu niedrigeren Preisen an und diversifizieren schneller in neue Branchen. Die Geschäftsführung hat Ihre Boutique-Beratung beauftragt, die Ursachen für die sinkende Profitabilität zu analysieren und konkrete Maßnahmen zur Verbesserung der Wettbewerbsfähigkeit vorzuschlagen. Ziel Analysieren Sie die Ursachen für die sinkende Profitabilität der Fröhlich Maschinen GmbH und entwickeln Sie konkrete Maßnahmen, um die Rentabilität und Effizienz langfristig zu steigern.

4.4

2.3k times solved

Difficulty: Intermediate

Interviewer-led

Restructuring

Open case

Case by

PrepLounge

Inverto Case: Fast Dish Restaurant

Fast Dish, a publicly traded Quick Service Restaurant (Franchise) company with over €20 billion in revenue and more than 20.000 restaurants globally, has recently faced major challenges with regards to supply chain management and sustainability. The client's top management has engaged the SCM and procurement specialized consultancy Inverto to advise the company in this critical situation.

3.5

16.3k times solved

Difficulty: Intermediate

Interviewer-led

Operations strategy

Organizational behavior

Pricing

Profitability analysis

Open case

Company case provided by Company case by

BCG Platinion

BCG Platinion Case: Digital transformation of an entire corporation

The CIO of a major insurance company needs your support to renew the company's IT landscape as a starting point for their digital transformation. The IT landscape of the client is highly fragmented and integrated. Most IT applications are "legacy" monolithic custom developments (running on Mainframe) and are hosted on-premise. There are issues with stability and scalability of applications plus IT costs are ever increasing "Time-to-market" to release new functionalities is too high, due to constraints of current architecture. You are asked to quickly assess the status quo, identify main areas of intervention and measures to address the pain points and renew the IT landscape. Note: This case is interviewer-led. The cases in our interviews are more candidate-led. In this case, you take the lead and manage the entire case from start to finish. So be prepared for this when you apply to us.

3.9

27.3k times solved

Difficulty: Advanced

Interviewer-led

Digital transformation

Market analysis

Operations strategy

Open case

Case by

PrepLounge

Baby Clothing Market Entry

Our client is a consumer packaged goods company looking for top-line growth opportunities. They are considering extending its pre-existing baby products brand (e.g., Huggies) into a new product category – baby clothing. They are looking for this business to generate +$300M revenue per year, beginning in Year 1. Should our client enter the baby clothing market?

4.1

5.5k times solved

Difficulty: Intermediate

Interviewer-led

Market entry

Profitability analysis

Open case

Expert case by

Hagen

Retail Banking Profitability

RetailBankingCo is a regional, US-based retail bank that is looking to increase its revenues. As a result, the client is considering introducing a commission-based incentive program for its sales force. RetailBankingCo wants to determine the conditions under which implementing the incentive program would be economically viable.

4.5

16.0k times solved

Difficulty: Beginner

Candidate-led

Growth strategy

Operations strategy

Profitability analysis

Open case

Company case provided by Company case by

RSM Ebner Stolz Management Consultants

RSM Ebner Stolz Case: Noch zu retten?

Sie werden vom Management der mittelständischen Packaging-Group gebeten, eine Einschätzung zur wirtschaftlichen Lage des Konzerns abzugeben. Im Rahmen der Analyse der operativen Ergebnisse der Auslandswerke soll das Werk identifiziert werden, bei dem der aktuell größte Handlungsbedarf besteht. Davon ausgehend sollen Optionen erarbeitet und bewertet werden, die der Kandidat dem Management im Umgang mit diesem Auslandswerk empfehlen würde und was ggf. auf Basis der Analyse für Rückschlüsse hinsichtlich der Konzernzahlen gezogen werden können.

3.0

12.8k times solved

Difficulty: Intermediate

Interviewer-led

Operations strategy

Profitability analysis

Open case

Expert case by

Ian

Market Sizing WITH SOLUTION - Number of Taxis

An entrepreneur has come to you looking to disrupt the taxi industry in NYC. They are interested in determining the number of taxis in Manhattan, in order to understand how large their fleet would need to be to compete. How would you go about determining how many taxis exist in Manhattan? If the candidate asks, you may clarify the following: - This is pre ride-hailing technology - That we are looking for total taxis NOT taxis at any given time. We would like an estimate of the size of the fleet - Manhattan is 1 of 5 boroughs in NYC ====================NOTE========================== Please make sure to check the video URL solution to get a full explanation and walkthrough of how to solve this market sizing example. This is one of over a half dozen market sizing examples I have created for you to practice. https://www.preplounge.com/en/management-consulting-cases/candidate-led-usual-style/intermediate/market-sizing-with-solution-coffee-shop-revenue-318

3.3

2.9k times solved

Difficulty: Beginner

Candidate-led

Market sizing

Open case

Case by

PrepLounge

Gravestone Inc.

Your client, Gravestone Inc., is a mason producing gravestones situated in Switzerland. He is producing high-quality, hand-crafted gravestones with very skilled labour-force. In the recent past a technology was developed that would allow him to produce his gravestones with much less labour. He is contacting us to make a decision if he should invest in this new technology and if he even should remain in the business itself.

4.4

14.4k times solved

Difficulty: Intermediate

Interviewer-led

Profitability analysis

Valuation

Open case

Company case provided by Company case by

SET Management Consulting

SET Case: Your own Management Consultancy

As one of three management consultants with many years of experience, you have SET yourself the goal of founding your own management consultancy. The topics, contents and solution offering with which you can advise and support potential customers are clear. The legal company is already founded and registered in the commercial register. Now you must pitch your business plan to the banks to get the necessary start-up financing! Especially the banks are interested in the underlying rationale of the SET Management Consulting business model. Your goal is to think of relevant financial KPIs and be prepared to explain the underlying revenue and cost streams in more detail.

4.4

20.8k times solved

Difficulty: Intermediate

Interviewer-led

Market entry

Profitability analysis

Open case

Expert case by

Benjamin

MBB Unconventional Case: Coral Reefs

Your client is the Government of Indonesia, specifically a joint committee formed between a few key ministries including the Ministry of Marine Affairs & Fisheries, Ministry of Tourism and Ministry of Environment & Forestry. Indonesia is one of the largest developing countries in the world, with a population of about 285M people and an average monthly income of only USD 500. Located in Southeast Asia, Indonesia is actually a vast archipelago comprised of 17,000 islands, giving it one of the longest and most complex coastlines in the world. It is also part of the Coral Triangle, an area demarcated by scientists as the global epicenter of marine diversity. Your client tells you that Indonesia's once pristine coral reefs have seen a rapid decline over the past decade. They have come to you for help and want to figure out what is causing the problem.

5.0

1.2k times solved

Difficulty: Advanced

Candidate-led

Non-conventional

Public sector

Open case

Expert case by

Gaurav

Case with a twist: Chinese Alloy Wheels – US Market Entry

Our client is an alloy wheels manufacturer based in China. The client is contemplating entering the US market. At this point of time, the client sells the wheels in the China market. In order to make the wheels for the US market, he will have to expand its production capacity. As a result, whether to enter the US or not is a high-stake decision. He has hired BCG to advise him on this issue.

4.3

5.5k times solved

Difficulty: Intermediate

Candidate-led

Capacity change

Market entry

Market sizing

Open case

Case by

PrepLounge

Europe Rail Tunnel

The airlines covering the Cologne to London route are facing a competitive threat from a new rail tunnel connecting Britain and Germany by train. Which all factors do you think the airlines should consider before reacting to this threat?

3.8

5.4k times solved

Difficulty: Beginner

Candidate-led

Competitive response

Market analysis

Open case

Company case provided by Company case by

E.ON Inhouse Consulting

E.ON Inhouse Consulting Case: Heating Systems

The European Union pursues the target of lowering the CO₂ emissions of their residents. Therefore, the EU introduced a CO₂ tax to create incentives for consumers to switch to more climate friendly alternatives and stabilize carbon dioxide emissions. Accordingly, and as E.ON’s strategy focuses on creating a better tomorrow for its customers, E.ON is investing significantly to grow its ‘Customer solutions’ area with climate-friendly solutions, including its heating solutions business. You have recently joined E.ON Inhouse Consulting and E.ON’s Head of Heating Solutions has hired you to conduct an analysis concerning the European CO₂ tax. Specifically, you are asked to assess whether the EU uses the right tool to steer consumers towards more climate-friendly heating systems.

4.4

4.9k times solved

Difficulty: Intermediate

Interviewer-led

Market analysis

Open case

Expert case by

Hagen

Grocery Wholesaler

GroceryWholesaleCo is a leading international grocery wholesaler that sells, markets, and distributes food products, equipment, and supplies to restaurants, healthcare and educational facilities, lodging establishments, and other customers who prepare meals away from home. Historically, the client was able to ensure sustainable growth; however, profits have plummeted over the last three years. As a result, GroceryWholesaleCo wants to discover the reasons for this decline in profitability and identify strategies to turn the situation around.

4.7

14.1k times solved

Difficulty: Intermediate

Candidate-led

Growth strategy

Market analysis

Profitability analysis

Open case

Case by

PrepLounge

Paper Print

A printing company is planning to take over another printing company with similar technology and printing machines. The candidate is supposed to evaluate the acquisition by answering a line of questions that are presented in the “suggested approach” section.

4.2

17.7k times solved

Difficulty: Intermediate

Interviewer-led

Mergers & Acquisition

Open case

Company case provided by Company case by

CTcon

CTcon Case: Das beste Eis der Stadt!

Deine Klientin ist die Besitzerin der Eisdiele TOTO in einer deutschen Großstadt. Das Geschäft läuft so gut, dass die Besitzerin eine weitere Filiale eröffnen will. Sie ist hellauf begeistert und möchte auf Nummer sichergehen. Sie fragt Dich daher: Ist das eine gute Idee?

4.6

16.7k times solved

Difficulty: Intermediate

Interviewer-led

Capacity change

Growth strategy

Market entry

New product

Profitability analysis

Open case

Company case provided by Company case by

Mercedes-Benz Management Consulting

MBMC Case: AMG | Turning the most affluent prospects into loyal clients

Mercedes‑AMG stands for uncompromising performance, engineering excellence, and emotional driving experiences. Yet recently, AMG’s top management has become concerned that while the product itself continues to exceed customer expectations, the moment of purchase no longer does. The trigger for this case was a concrete incident: a highly affluent customer configured an AMG top‑end vehicle in detail, was technically convinced, but ultimately decided against the purchase, stating: “It’s a fantastic car – but it didn’t feel special.” For the CEO of Mercedes‑AMG, this statement raises a critical question. In the luxury and performance segment, emotional differentiation at the point of decision is as important as horsepower or technology. Against this backdrop, AMG is exploring new ways to elevate the buying experience for its most valuable customers. One idea under discussion is the introduction of AMG Individualization Hubs – exclusive physical spaces where customers would finalize their vehicle together with AMG experts in a highly personalized and immersive setting. The management now asks you and your Consulting Team to assess this idea holistically: How can AMG strengthen emotional differentiation during the purchase decision, and do Individualization Hubs represent a strategically sound and economically viable solution? The objective is to develop a clear recommendation that balances brand impact, customer experience, and profitability.

4.8

16.8k times solved

Difficulty: Intermediate

Interviewer-led

Growth strategy

New product

Profitability analysis

Open case

Case by

PrepLounge

Financial CRM

Your client is a big financial services company in Germany that just implemented a Client Relationship Management (CRM) system. Its intention is to provide the leadership with a real time view into the organisation’s sales channel. Before the introduction of the CRM system the sales teams have maintained the client sales information in separate Excel spread sheets. This made it very complicated for the managers to have an overview of the latest information. At the end of the fiscal year, all sales teams have to migrate their sales data into the new system. They want our advice regarding the necessary change management.

4.1

9.8k times solved

Difficulty: Beginner

Interviewer-led

Organizational behavior

Open case

Company case provided by Company case by

Otto Group one.O

Otto Group Case: StyleNow - Wenn Wachstum die Marge kostet

StyleNow ist eine Online-Modemarke der Otto Group, die Damen- und Herrenbekleidung ausschließlich über den eigenen Onlineshop vertreibt. In den letzten drei Jahren ist der Umsatz kontinuierlich gewachsen – unter anderem durch den gezielten Ausbau des Sortiments um neue Kategorien und Marken. Die Profitabilität hat sich jedoch trotz des Wachstums deutlich verschlechtert und das Unternehmen hat im gerade abgeschlossenen Geschäftsjahr erstmals ein negatives Ergebnis erzielt. Der Vorstand von StyleNow bittet das Inhouse Consulting um eine Analyse der Ursachen sowie eine konkrete Handlungsempfehlung. Hinweis zur Sprache: Zur besseren Lesbarkeit verwenden wir in diesem Case teilweise das generische Maskulin. Selbstverständlich sind damit alle Personen gleichermaßen gemeint.

5.0

800+ times solved

Difficulty: Intermediate

Interviewer-led

Growth strategy

Open case

How Business Sense Shows Up in Case Interviews

Your business sense won’t be tested directly – but it shows up in your thinking, your assumptions, and your recommendations. Here are five moments when it really counts:

5 tips on how to show business sense in case interviews

1. Define a clear objective.

Clarify what the company wants to achieve in the case. Is it short-term profit, long-term growth, or a stronger market position? A well-defined goal aligns your analysis and recommendations – and shows you understand the business context.

2. Develop sound hypotheses.

Top candidates derive economically plausible hypotheses. If revenue is dropping, explore potential causes like demand, pricing, or competitive pressure.

3. Evaluate actions realistically.

Go beyond theory. Consider real-world feasibility, conflicting objectives, and strategic risks. Instead of simply saying “raise prices,” consider price elasticity, customer segments, and likely competitor reactions.

4. Interpret numbers in the right context.

Numbers only make sense when interpreted correctly. High margins might signal a premium position – or upcoming competitive threats. Business sense means understanding what the numbers imply in context.

5. Make a well-founded recommendation.

Your final recommendation should be logical and economically viable. Acknowledge risks or gaps, and show that your solution could succeed in the real world.

How to Train Your Business Sense

Business sense isn’t innate – it’s a skill you can develop. The key is to build a solid understanding of economic principles and learn how real-world decisions are made.

Start by regularly reading business news. Outlets like New York Times, the Wall Street Journal or the Financial Times will help you get a feel for markets, business models, and strategic thinking. Go beyond the facts – try to understand the economic rationale behind each story.

When practicing case interviews, stay sharp and reflective. Ask yourself: Is my reasoning not only logical but also economically sound?

Mock interviews with peers are especially helpful. You’ll improve your communication skills and receive valuable feedback.

👉 Use our Meeting Board to find peers and practice together.

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Also, think like an entrepreneur in daily life. Observe companies, analyze new strategies, and reflect on what drives success or failure. The more often you go through this process, the sharper your business intuition becomes – and that’s what sets you apart in interviews.

Key Takeaways

Business sense is one of the most important success factors in both consulting and case interviews. It reflects your ability to quickly recognize economic patterns, form sound assumptions, and make realistic, client-oriented decisions. In interviews, what sets top candidates apart isn’t memorized theory but the ability to see the bigger picture: understanding what really matters to a business, prioritizing strategically, and proposing solutions that are both practical and value-driven.

To demonstrate your business sense, it’s crucial to clearly define the objective of the case, develop plausible hypotheses, assess potential actions not only analytically but also from a business standpoint, and interpret numbers within the correct context. Your final recommendation should be not just logical, but economically viable and well thought through.

The good news is that business sense can be learned. By regularly reading business news, reflecting on strategic decisions, working through case interviews critically, and actively seeking feedback, you’ll build a strong foundation in economic thinking. Over time, this mindset will not only boost your interview performance but also set you up for long-term success in consulting.

Let's Move On With the Next Articles:

Presentation and Communication

Consulting Skills & Preparation

The majority and the most obvious part of preparation is, of course, the substantive preparation for your case interview. However, you also need to present what you have learned in a way that gives your interviewer an impression of your personality and character. This means that you must appear confidentand communicate clearly and precisely. The best preparation is useless if you come across as closed-off and insecure. As a consultant, you must always appear trustworthy and confident when interacting with clients to be taken seriously and to enable you and your team to work in a solution-oriented manner. This is already tested in the case interview – albeit indirectly ;)

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General Knowledge

Consulting Skills & Preparation

In case interviews, having solid general knowledge can make a big difference, especially in market sizing questions. Knowing basic facts about regions, population sizes, and economic indicators helps you build stronger arguments. It’s not just about the analysis itself but also about showing interviewers that you understand global trends and can quickly process key information — an important skill in consulting. In a case interview, quick and accurate estimates are essential. For example, if you're asked to evaluate the potential market for a product in a specific country, having solid data — like the population size — is crucial. Without this information, it can be challenging to make a meaningful calculation. In addition to national market data, it's important to know about key global markets. Being familiar with major economic regions like the U.S., China, and the EU is valuable because large consulting firms such as McKinsey and BCG operate extensively in these areas. A solid understanding of these regions shows that you can think about global factors and helps you stand out from other candidates. What Your Knowledge of Population, Economy & Geography Says About You Having strong general knowledge in specific areas not only shows that you are well-prepared, but also that you can quickly understand economic relationships—a crucial skill in consulting. When you have information like population sizes or a country's Gross Domestic Product (GDP) at your fingertips, you can quickly verify assumptions and make informed decisions, which is exactly what case interviews expect. Additionally, your knowledge of these topics demonstrates a genuine interest in world affairs and your ability to recognize and understand global trends. This insight is vital for evaluating how political, economic, and social changes affect businesses. It also highlights your capability to absorb and use complex data effectively. Population Country/Region Population (approx.) Worldwide 8.05 billion China 1.426 billion India 1.419 billion Europe (EU states) 450 million USA 335 million Indonesia 277 million Brazil 203 million Russia 143 million Japan 124 million Germany 83 million UK 68 million GDP Forecast in USD for 2024 Country/Region GDP 2024 (approx. in trillions USD) Worldwide 105 trillion USD USA 25 trillion USD China 18 trillion USD Japan 4.3 trillion USD Germany 4.5 trillion USD France 3.0 trillion USD UK 3.1 trillion USD India 3.9 trillion USD Italy 2.2 trillion USD Brazil 2.1 trillion USD Canada 2.2 trillion USD Key Data to Know for Your Case Interview In case interviews, making quick and accurate estimates is key. A good grasp of units, along with basic fraction and percentage calculations, is essential for working efficiently. Additionally, being comfortable with time units is important for making rough estimates and calculations. The table of larger and smaller time units below provides a handy overview of commonly needed values. These fundamental skills help you tackle tasks confidently and quickly. Overview of Time Conversions: Days, Weeks and Hours Larger Units Smaller Units Days/Year 365 days (In leap years: 366 days) Days/3 Years 1,095 days Days/4 Years 1,461 days (including 1 leap year) Weeks/Year 52 weeks Hours/Week 168 hours Seconds/Hour 3,600 seconds Conversion of Fractions to Percentages and Decimal Values Fraction Percentage Decimal 1/5 20% 0.20 1/6 16.67% 0.1667 1/7 14.29% 0.1429 1/8 12.5% 0.125 1/9 11.11% 0.1111 1/10 10% 0.10 1/11 9.09% 0.0909 1/12 8.33% 0.0833 1/13 7.69% 0.0769 1/14 7.14% 0.0714 1/15 6.67% 0.0667 1/16 6.25% 0.0625 1/17 5.88% 0.0588 1/18 5.56% 0.0556 1/19 5.26% 0.0526 1/20 5% 0.05 Remember, it’s not enough to just memorize these numbers—you also need to be able to calculate with them effectively! Use our Mental Math Tool to specifically train your math skills and prepare for your next interview.

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Preparation Plan

Consulting Skills & Preparation

Preparing for a case interview can feel overwhelming, but having a structured plan will help you stay focused and make steady progress. A well-organized approach ensures you build a strong foundation, practice effectively, and refine your skills before the big day. In this guide, we will walk you through the key components of an effective practice plan, including self-study, peer practice, and working with a coach. Let’s go!

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