expert
Expert with best answer

Giulia

0 Meetings

88 Q&A Upvotes

USD 149 / Coaching

4

Bain Question - Business Case Sample

Hi,

This is a question from Bain sample case. I attach the question and relevant graphs below. Would appreciate if someone can give me hints on how to solve this problem. Thank you very much!

Bain Case

Hi,

This is a question from Bain sample case. I attach the question and relevant graphs below. Would appreciate if someone can give me hints on how to solve this problem. Thank you very much!

Bain Case

4 answers

  • Upvotes
  • Date ascending
  • Date descending
Best Answer
Book a coaching with Giulia

0 Meetings

88 Q&A Upvotes

USD 149 / Coaching

Result is C) +60M$

1. Identify number of stores of Retail Co

  • Sales area= sales : sales/m2 = 1.2bn$ : 10,000 = 120,000 m2
  • Sales area = 80% of store area
  • Store area = ((sales area * 100%) : 80%) : m2/store = ((120,000 m2 * 100%) : 80%) : 1,000 m2 = 150


2. Decrease of number of stores by 10

  • Number of stores after acquisition = 140
  • Assumption: sales/m2 of RetailCo = 11,250 $/m2
  • Store area (=100%) = number of stores * m2/store = 140 * 1,000 m2 = 140,000 m2
  • Sales area = 80% of store area = (140,000 m2 * 80%) : 100% = 112,000 m2
  • Sales = sales area * new sales/m2 = 112,000 m2 * 11,250 $/m2 = 1.26bn $

3. Increase in sales

  • Old sales: 1.2bn$
  • New sales: 1.26bn$
  • Increase by: 60M$

Result is C) +60M$

1. Identify number of stores of Retail Co

  • Sales area= sales : sales/m2 = 1.2bn$ : 10,000 = 120,000 m2
  • Sales area = 80% of store area
  • Store area = ((sales area * 100%) : 80%) : m2/store = ((120,000 m2 * 100%) : 80%) : 1,000 m2 = 150


2. Decrease of number of stores by 10

  • Number of stores after acquisition = 140
  • Assumption: sales/m2 of RetailCo = 11,250 $/m2
  • Store area (=100%) = number of stores * m2/store = 140 * 1,000 m2 = 140,000 m2
  • Sales area = 80% of store area = (140,000 m2 * 80%) : 100% = 112,000 m2
  • Sales = sales area * new sales/m2 = 112,000 m2 * 11,250 $/m2 = 1.26bn $

3. Increase in sales

  • Old sales: 1.2bn$
  • New sales: 1.26bn$
  • Increase by: 60M$
Book a coaching with Clara

100% Recommendation Rate

39 Meetings

4,501 Q&A Upvotes

USD 209 / Coaching

Hello!

Don´t let them overwhelm you with graphs!

It´s only a way to dress in a fancy way simple data.

  1. Sales/store= 10 000 * 1000 * 80% = 8M USD/ store
  2. Number of stores = 1.2 Bn / 8 M = 150 total stores
  3. 11 250 * 1000 * 80% * 140 - 1.2 Bn= 60M USD

Hope it helps!

Cheers,

Clara

Hello!

Don´t let them overwhelm you with graphs!

It´s only a way to dress in a fancy way simple data.

  1. Sales/store= 10 000 * 1000 * 80% = 8M USD/ store
  2. Number of stores = 1.2 Bn / 8 M = 150 total stores
  3. 11 250 * 1000 * 80% * 140 - 1.2 Bn= 60M USD

Hope it helps!

Cheers,

Clara

(edited)

Book a coaching with Ian

100% Recommendation Rate

55 Meetings

3,016 Q&A Upvotes

USD 239 / Coaching

Hi there,

Give the others have already answered the question for you, let me give you three tips on how to nail this question next time :)

1) Question first - read the immediate question first (i.e. total impact of effects on annual sales). Skip the context, skip the charts, read the one sentence that asks you the question that matters. This helps you frame your mindset and pull out only the information that matters.

2) Block out the charts - think about what information you need before you read the charts. What #s would you need and how would you use/multiply them? Again, this keeps you focused on what actually matters once you look at the charts.

3) Answer Plug-in/Elimination - Read the answers early on. First, quickly figure out which ones clearly don't make sense (and cross them out). Second, plug and play the answers they've provided. In some cases you can back-solve the answer. To summarize: Test the answers provided instead of doing all the work to find the answer!

Hi there,

Give the others have already answered the question for you, let me give you three tips on how to nail this question next time :)

1) Question first - read the immediate question first (i.e. total impact of effects on annual sales). Skip the context, skip the charts, read the one sentence that asks you the question that matters. This helps you frame your mindset and pull out only the information that matters.

2) Block out the charts - think about what information you need before you read the charts. What #s would you need and how would you use/multiply them? Again, this keeps you focused on what actually matters once you look at the charts.

3) Answer Plug-in/Elimination - Read the answers early on. First, quickly figure out which ones clearly don't make sense (and cross them out). Second, plug and play the answers they've provided. In some cases you can back-solve the answer. To summarize: Test the answers provided instead of doing all the work to find the answer!

Hi,

I did a quick calculation:

$/store= 10 000 * 1000* 80% = 8 mio $/ store

#stores = 1.2 bn / 8 mio = 150

(11 250 * 1000 * 80% * 140 ) - 1.2 bn $ = +60 mio $

Hi,

I did a quick calculation:

$/store= 10 000 * 1000* 80% = 8 mio $/ store

#stores = 1.2 bn / 8 mio = 150

(11 250 * 1000 * 80% * 140 ) - 1.2 bn $ = +60 mio $

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.

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.

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.

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

Related case(s)

Bain case: Asian lubricants producer

Solved 126.3k 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.  
4.6 5 28260
| Rating: (4.6 / 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 53.0k 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 1383
| 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 23.6k 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 5 288
| 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 10.8k 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 5 935
| 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 5.2k 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?
3.9 5 811
| Rating: (3.9 / 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