4

Bain Company - Business Case Sample

Hi!

I would appreciate if someone could help me with this question. (it's from a Bain sample case)

I've attached the chart (which has all the info needed) and the question.

The answer is 1,2 but I can not come up with that number! if anyone could give me a hint..

Thanks!!!Bain & Company Business Case Example

Hi!

I would appreciate if someone could help me with this question. (it's from a Bain sample case)

I've attached the chart (which has all the info needed) and the question.

The answer is 1,2 but I can not come up with that number! if anyone could give me a hint..

Thanks!!!Bain & Company Business Case Example

4 answers

  • Upvotes
  • Date ascending
  • Date descending
Best Answer

Hi!

The market size of a player in this graph is equal to the area of all its squares. Just by eyeballing it you should be able to say that RetailCo is the market leader and Player A is the number 2. Now you know which formula to use.

Next you can calculate the actual market size by adding up all the states for each player (share * total sales in the state).

Does this help?

Hi!

The market size of a player in this graph is equal to the area of all its squares. Just by eyeballing it you should be able to say that RetailCo is the market leader and Player A is the number 2. Now you know which formula to use.

Next you can calculate the actual market size by adding up all the states for each player (share * total sales in the state).

Does this help?

You have four states in which RetailCo is active, and its RMS for each state is given below the mosaic plot (2.1, 0.8, 0.9 and 0.6). You can quickly confirm that these numbers are correct using the provided formula. Now, you need to calculate the overall RMS from the RMS values given for each state. Because the markets of the different states are not of the same size, you cannot calculate a simple average and be done with it, but need to calculate the weighted average, with the size of each of the markets ($2.3, $1.7, $1.4 and $1.0) being the weighting factor and the divisor being the total market size ($6.4). So the calculation you need to do is:

(2.1x2.3 + 0.8x1.7 + 0.9x1.4 + 0.6x1) / 6.4 = 1.26

This gives 1.2 as the closest answer. Hope this is correct and helps you out!

You have four states in which RetailCo is active, and its RMS for each state is given below the mosaic plot (2.1, 0.8, 0.9 and 0.6). You can quickly confirm that these numbers are correct using the provided formula. Now, you need to calculate the overall RMS from the RMS values given for each state. Because the markets of the different states are not of the same size, you cannot calculate a simple average and be done with it, but need to calculate the weighted average, with the size of each of the markets ($2.3, $1.7, $1.4 and $1.0) being the weighting factor and the divisor being the total market size ($6.4). So the calculation you need to do is:

(2.1x2.3 + 0.8x1.7 + 0.9x1.4 + 0.6x1) / 6.4 = 1.26

This gives 1.2 as the closest answer. Hope this is correct and helps you out!

I don't think I can edit my comment, but want to point out that Jorrit's approach is correct. The approach I described has a logical error - you should look at the whole market first and then calculate the RMS for it. Interestingly, both approached lead to the same answer. This might be by design; however, the value calculated using his approach is significantly closer to 1.2. — Alexander on Mar 15, 2019

Do they really expect people to solve this kind of question within very little time and without a calculator? Especially because the answer choices are so close together, it makes it pretty much impossible to estimate by rouding up numbers.

If someone could please explain me if those are the real expectations of consulting companies I would appreciate. In my opinion this only serves to test if you're a human calculator.

Do they really expect people to solve this kind of question within very little time and without a calculator? Especially because the answer choices are so close together, it makes it pretty much impossible to estimate by rouding up numbers.

If someone could please explain me if those are the real expectations of consulting companies I would appreciate. In my opinion this only serves to test if you're a human calculator.

Book a coaching with Vlad

97% Recommendation Rate

375 Meetings

5,851 Q&A Upvotes

USD 229 / Coaching

Hi,

  1. Calculate the RMS for each state following the provided rules
  2. Calculate weighted average RMS (% contribution of each state = size of each state / total (6.4 bn)

Best

Hi,

  1. Calculate the RMS for each state following the provided rules
  2. Calculate weighted average RMS (% contribution of each state = size of each state / total (6.4 bn)

Best

Doesn't this method give you the wrong answer in case market shares and order of competitors are vastly different across geographies? — Juho on Mar 18, 2019

Related BootCamp article(s)

Which companies are currently using written tests ?

All major firms like McKinsey, BCG and Bain use tests to assess a candidate's analytical skills. However the design of those tests can differ a lot.

Interviewer-Led vs Candidate-Led cases

Case Interviews can be led by the candidate or by the interviewer: In Candidate-led cases the main challenge is the structure. In Interviewer-led cases the main challenge is to adapt quickly

Guide to Improving Speed in Written Tests such as the PST

Follow these instructions to significantly improve your performance and speed in solving problem solving tests used at McKinsey, BCG and Bain.

Case Studies

The case study is the most important element of the case interview, which you'll have to nail in order to get into strategic consulting. Here you can learn the specific skills and concepts necessary to solve them.

Typical Question Types in Written Tests

Questions among all tests can be categorized in math, GMAT-style, chart reading and brain teaser questions. Each type needs to be approached differently.

Related case(s)

Bain case: Asian lubricants producer

Solved 113.3k times
Bain case: Asian lubricants producer LubricantsCo, a very successful Asian premium producer of lubricants in their native region, would like to further increase their revenue and profit. The product range ranges from lubricants in the automotive sector (e.g. motor and gear oil) to industrial applications (e.g. fats, heavy-duty oils). According to preliminary examinations, further growth potentials in the Asian core market are rather limited. Thus LubricantsCo would like to investigate options to internationalize in the passenger car business – also outside the premium segment which is given priority. Therefore your consulting firm was instructed to elaborate a market entry strategy for the European market.  
4.7 5 27829
| Rating: (4.7 / 5.0)

LubricantsCo, a very successful Asian premium producer of lubricants in their native region, would like to further increase their revenue and profit. The product range ranges from lubricants in the automotive sector (e.g. motor and gear oil) to industrial applications (e.g. fats, heavy-duty oils). ... Open whole case

Bain Case: Old Winery

Solved 46.4k times
Bain Case: Old Winery You have inherited the “Old Winery” from your grandfather, a winery which has been family owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in the conventional way, i.e. they are not organically farmed and certified. The vine stocks are in a good condition regarding age and care. Overall, only ¼ of the harvest is made into wine by the winery itself; the rest is sold. Your grandfather never wanted to change the image of the winery and left the managerial and administrative task to a young and energetic wine-maker. Due to the not so well-known brand , the demand for the “Old Winery” wine is currently rather low. You do not intent to run the winery operatively, given your limited knowledge of wine making, but find the idea of owning a winery exciting. Your plan is to give the winery some fresh impetus.
4.4 5 1209
| Rating: (4.4 / 5.0)

You have inherited the “Old Winery” from your grandfather, a winery which has been family owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in the conventional way, i.e. ... Open whole case

Bain Questions

Solved 22.7k times
Bain Questions Tell me about a difficult situation you had to cope with. Tell me of a task which you didn’t like doing and explain why you performed it nevertheless. Why do you do things? What do you like doing most / What is your favorite hobby? Walk me through a situation where you showed leadership skills.
4.6 5 280
| Rating: (4.6 / 5.0) |
Difficulty: Intermediate | Style: Fit interview | Topics: Personal fit

Tell me about a difficult situation you had to cope with. Tell me of a task which you didn’t like doing and explain why you performed it nevertheless. Why do you do things? What do you like doing most / What is your favorite hobby? Walk me through a situation where you showed leadership skills ... Open whole case

REA Reinsurance

Solved 10.1k times
REA Reinsurance Your client, REA, is a reinsurance company. REA recently acquired another reinsurance company (approximatively same size): the choice of this company was notably based on its product portfolio as well as its market presence which appeared complement with REA. However, the acquisition is not well received by the market. The acquisition price is considered too high and the transaction has not been well graded. REA management asks you to evaluate the transaction.
4.1 5 916
| Rating: (4.1 / 5.0)

Your client, REA, is a reinsurance company. REA recently acquired another reinsurance company (approximatively same size): the choice of this company was notably based on its product portfolio as well as its market presence which appeared complement with REA. However, the acquisition is not well r ... Open whole case

AirService

Solved 4.7k times
AirService Your client AirService is the service provider for a number of airports. The management realized a decrease in profits that is linked to increasing costs. How would you help them?
3.8 5 777
| Rating: (3.8 / 5.0)

Your client AirService is the service provider for a number of airports. The management realized a decrease in profits that is linked to increasing costs. How would you help them? Open whole case