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Hi, are there some classic risks that come up in lots of cases that can be used as a starting point to brainstorm ideas in the middle or towards the end of a case?
Hi, are there some classic risks that come up in lots of cases that can be used as a starting point to brainstorm ideas in the middle or towards the end of a case?
Risks are anything that could go wrong. They are anything that the company would need to consider in moving forward with the recommendation.
As an example, with a merger, risks could be culture clash, regulatory approval, integration costs, merger synergies aren't realized etc.
As another example, any process/operational change comes with risks that your employees will be upset, that the changes cause more disruption than good, that the changes are not successful etc.
Always think about your company, the competition, and the environment in which you operate when considering risks :)
Super important final point: You need next steps. These next steps need to mitigate (i.e. manage/resolve) your risks.
Examples:
Cultural issues
Political risks
Economic risks
Labor issues
Implementation
Delays
Extra costs
Competition
Result not meeting expectations
Risks are anything that could go wrong. They are anything that the company would need to consider in moving forward with the recommendation.
As an example, with a merger, risks could be culture clash, regulatory approval, integration costs, merger synergies aren't realized etc.
As another example, any process/operational change comes with risks that your employees will be upset, that the changes cause more disruption than good, that the changes are not successful etc.
Always think about your company, the competition, and the environment in which you operate when considering risks :)
Super important final point: You need next steps. These next steps need to mitigate (i.e. manage/resolve) your risks.
Any risks that you want to discuss in a case should be specific to the case. To start the ideation process, begin with things that come directly out of your case solution:
What are the key assumptions that you have made in your recommendation or in the quant part of the case? These assumptions are always a risk and you might add them as part of the recommendation that warrants further substantiation.
Do you see any risks coming out of the recommendations you have made? How will competitors or regulators react to the decisions made? Generally and form of change in the organization or outside is a good starting point to think about push back from any stakeholder.
These questions should be sifficient to find 2-3 reasonable risks to recommend further assessment for in your case conclusion.
Any risks that you want to discuss in a case should be specific to the case. To start the ideation process, begin with things that come directly out of your case solution:
What are the key assumptions that you have made in your recommendation or in the quant part of the case? These assumptions are always a risk and you might add them as part of the recommendation that warrants further substantiation.
Do you see any risks coming out of the recommendations you have made? How will competitors or regulators react to the decisions made? Generally and form of change in the organization or outside is a good starting point to think about push back from any stakeholder.
These questions should be sifficient to find 2-3 reasonable risks to recommend further assessment for in your case conclusion.
If you can think of the company, its structure, its approach, its workers, its role on the market, the market itself, the industry we're talking about, the current economy, you can come up with many possible risks, just need to apply them to your case.
Don't worry, It comes easy with practice.
Cheers,
GB
Hi there,
If you can think of the company, its structure, its approach, its workers, its role on the market, the market itself, the industry we're talking about, the current economy, you can come up with many possible risks, just need to apply them to your case.
MBB Final Round Case - Smart EducationOur client is SmartBridge, a nonprofit educational institution offering face-to-face tutoring services. The client operates in the US.
The mission of SmartBridge is to help as many students as possible to complete studies and prevent that they drop from the school system, in particular in disadvantaged areas.
The client is considering starting operations for its services in the Chicago area. They hired us to understand if that makes sense. Due to the nonprofit regulation, SmartBridge should operate on its own in the market, without any partnership.
How would you help our client?
Our client is SmartBridge, a nonprofit educational institution offering face-to-face tutoring services. The client operates in the US.
The mission of SmartBridge is to help as many students as possible to complete studies and prevent that they drop from the school system, in particular in disadvant ... Open whole case
Espresso, Whatelse?Espresso Whatelse is an Italian company that produces coffee and espresso machines since 1908. It is the Italian market leader and has a strong presence overall in Europe. In 2019, Espresso Whatelse has increased its revenues but it has seen declining profit margin.
Your client wants to understand the root causes of this 2019 trend and how to increase its profit margin again.
Espresso Whatelse is an Italian company that produces coffee and espresso machines since 1908. It is the Italian market leader and has a strong presence overall in Europe. In 2019, Espresso Whatelse has increased its revenues but it has seen declining profit margin.
Your client wants to understand ... Open whole case
Hot WheelsProblem definition: Our client is Korean Car Parts (KCP), a multi-national original equipment manufacturer (OEM) of car parts based in Korea. They've recently seen a decline in profits and have brought us in to understand how to address this falling profitability.
Problem definition: Our client is Korean Car Parts (KCP), a multi-national original equipment manufacturer (OEM) of car parts based in Korea. They've recently seen a decline in profits and have brought us in to understand how to address this falling profitability.
Open whole case
McKinsey Digital / BCG Platinion: Oil & Gas Upstream Technology[PLEASE NOTE: This is a technically difficult case and should only be completed by those coming in as a Technology specialist, i.e. recruiting for McKinsey Digital, BCG Platinion, etc.]
Our client is a multinational oil and gas company. While they are vertically integrated and have upstream, midstream, and downstream divisions, they have recently been experiencing competitivity issues in the upstream gas division, which brings in $1B in profits annually.
Our client’s upstream division has offices in Australia and Indonesia. Their work is highly dependent on their IT systems, as they have to constantly monitor wells and pipes (pressure, hydrocarbon count, fluid makeup, etc.)
The upstream division has two large legacy IT systems that are primarily used for downstream operations but have been modified for upstream purposes.
These systems are managed by a central team in the US which is responsible for all IT issues across the business. They triage issues/enhancements and then manage development teams in India and Finland who complete the work.
[PLEASE NOTE: This is a technically difficult case and should only be completed by those coming in as a Technology specialist, i.e. recruiting for McKinsey Digital, BCG Platinion, etc.]
Our client is a multinational oil and gas company. While they are vertically integrated and have upstream, midstr ... Open whole case
Cutting Carbs - Divestiture in the Electrical Power MarketOur client is Energy England, one of northern England’s largest electric utility companies. They were created over the past decade through an aggressive series of mergers of existing utility companies each specializing in a single energy generation source.
Recently, the CEO has embarked on an initiative to return to the core of the business. She is looking to increase free cash flow and cash reserves in order to prepare the business for evolving future trends.
The following can be verbally provided to interviewee if asked:
Energy England is made up of assets across the energy-generation space. These include coal, gas, nuclear, and wind
We are looking to divest from just one of our previous acquisitions (i.e one target is sufficient)
There are no specific goals/metrics – the client trusts our judgement
Our client is Energy England, one of northern England’s largest electric utility companies. They were created over the past decade through an aggressive series of mergers of existing utility companies each specializing in a single energy generation source.
Recently, the CEO has embarked on an initi ... Open whole case