Bain - Business Case Question

Bain business case
New answer on Mar 01, 2021
4 Answers
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Floyd asked on Feb 28, 2021

Hello everyone!

How would you solve the following question:

Thank you very much

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Henning
Expert
replied on Feb 28, 2021
Bain | passed >15 MBB interviews as a candidate

It's good practice to post where this is coming from to provide the full context. It's answer A - 70k ton. But the information presented in the chart is not enough to get there:

The chart here gets you the combined market share of 45% and the ~100 price index, meaning the average price per ton of the two F&B brands are the same as the overall market. Graph #1 of the same case gives you the info that the overall market in SE is 389R$M and the average price is 2.49 per ton.

Therefore:

Overall market size in volume is 389 / 2.49 = 155

Share of the combined brand = 155 x 0.45 = 70

Here's the source of the original case for everyone that wants to look at it:

https://mconsultingprep.com/wp-content/uploads/2019/10/Business-Case-Test-1-Context.pdf

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Floyd on Feb 28, 2021

Thank you Henning for your answer. I have a doubt, what are the 50M Revenue in this graph? Aren't it the revenues instead of 385?

Henning on Mar 01, 2021

No. 389M is the total market size. 50M is the legend meaning it's the revenue of a bubble of that size.

Luca
Expert
Content Creator
replied on Feb 28, 2021
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

Hello,

I think that some information are missing here, please share the entire case if you want more clarifications.

Best,
Luca

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Clara
Expert
Content Creator
replied on Mar 01, 2021
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

Agree with Luca here, is this all the info? Since I also don´t see where the 50 may be coming from.

Cheers,

Clara

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Ian
Expert
Content Creator
replied on Feb 28, 2021
MBB | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep

Hi there,

Henning has answered best!

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Henning gave the best answer

Henning

Bain | passed >15 MBB interviews as a candidate
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