Best way to approach this question?

Bain business case graphs
New answer on Aug 24, 2020
2 Answers
1.7 k Views
Ernesto asked on Aug 23, 2020

Is there only one way? And where can I find more similar examples?

I cannot get to the exact solution (i get another answer). Thanks for your help!

Case Flour and PastaCase Flour and Pasta overviewCase Flower and Pasta Graph

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Ian
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replied on Aug 23, 2020
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi Ernesto,

This is a horribly worded question. However, I believe the answer is D) 23%

Why? Well, F&P will grow 5% above the average market growth for all regions. Since F&P currently has 18% market share, their market share will increase 5 percentage points to equal 23%

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Ernesto on Aug 24, 2020

Hi Ian, thanks for replying. According with the official answers the value share remains the same, i.e, 18%.

Ian on Aug 24, 2020

Ah! Now I see...if you grow their revenues by the weights average of 5%+ market AND divide it by the weighted average growth of the denominator (entire market), then the growth is not big enough to change their overall share

Clara
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replied on Aug 24, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello Ernesto, can you please share the source?

Cheers,

Clara

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Ernesto on Aug 24, 2020

Hello Clara, sure. It's from Bain official webpage: https://desafioestrategicobain.com/business-case-simulador-01/?lang=es

(edited)

Ian gave the best answer

Ian

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