Cookie and Privacy Settings

This website uses cookies to enable essential functions like the user login and sessions. We also use cookies and third-party tools to improve your surfing experience on preplounge.com. You can choose to activate only essential cookies or all cookies. You can always change your preference in the cookie and privacy settings. This link can also be found in the footer of the site. If you need more information, please visit our privacy policy.

Data processing in the USA: By clicking on "I accept", you also consent, in accordance with article 49 paragraph 1 sentence 1 lit. GDPR, to your data being processed in the USA (by Google LLC, Facebook Inc., LinkedIn Inc., Stripe, Paypal).

Manage settings individually I accept
expert
Expert with best answer

Ian

100% Recommendation Rate

233 Meetings

20,227 Q&A Upvotes

USD 289 / Coaching

5

Determining Whether a Venture is Worthwhile

Outside break-even analysis, what else shoud I consider to determine whether a venture is worthwhile?

Outside break-even analysis, what else shoud I consider to determine whether a venture is worthwhile?

5 answers

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

100% Recommendation Rate

233 Meetings

20,227 Q&A Upvotes

USD 289 / Coaching

Book a coaching with Clara

100% Recommendation Rate

55 Meetings

14,409 Q&A Upvotes

USD 229 / Coaching

Hello!

Breakeven is a bit simplistic, although in many cases the interviewer will directly indicate you in that direction.

However, the right way would be NPV:

  1. Calculate future cashflows, either year by year or at perpetuity
  2. Calculate NPV: bring to the present the value of the future money

Hope it helps!

Cheers,

Clara

Hello!

Breakeven is a bit simplistic, although in many cases the interviewer will directly indicate you in that direction.

However, the right way would be NPV:

  1. Calculate future cashflows, either year by year or at perpetuity
  2. Calculate NPV: bring to the present the value of the future money

Hope it helps!

Cheers,

Clara

Book a coaching with Luca

100% Recommendation Rate

45 Meetings

2,588 Q&A Upvotes

USD 189 / Coaching

Hello,

The most common KPI used in business case is NPV. Another interesting index could be the ROI but it's not very common.

Anyway, interviewer will usually suggest you what to use in order to evaluate the investment when you will ask about the client's target.

Best,
Luca

Hello,

The most common KPI used in business case is NPV. Another interesting index could be the ROI but it's not very common.

Anyway, interviewer will usually suggest you what to use in order to evaluate the investment when you will ask about the client's target.

Best,
Luca

Book a coaching with Adi

100% Recommendation Rate

62 Meetings

5,710 Q&A Upvotes

USD 159 / Coaching

Hey, can you define what you are referrring to as "venture" please..market entry? Acquisition? Investment decision?

Broadly speaking, there should be an uplift/improvement in the following areas:

  • Customer Experience
  • Channel mix
  • Revenue
  • Cost Reduction
  • Employee satisfaction

Hey, can you define what you are referrring to as "venture" please..market entry? Acquisition? Investment decision?

Broadly speaking, there should be an uplift/improvement in the following areas:

  • Customer Experience
  • Channel mix
  • Revenue
  • Cost Reduction
  • Employee satisfaction
Book a coaching with Ken

100% Recommendation Rate

43 Meetings

4,053 Q&A Upvotes

USD 209 / Coaching

I would classify this as a market entry case. In addition to the economics/financial returns (e.g., break-even), I would look broadly at whether the market is attractive (e.g., market dynamics, competitive landscape, customer preferences, etc.) as well as feasibility/path to execution/risks.

I would classify this as a market entry case. In addition to the economics/financial returns (e.g., break-even), I would look broadly at whether the market is attractive (e.g., market dynamics, competitive landscape, customer preferences, etc.) as well as feasibility/path to execution/risks.

Related case(s)

Rally racing

Solved 8.7k times
Rally racing Your client is the owner of UBS #42, a rally racing team. There are 36 races in a season. At the end of the season, the driver who has earned the most number of points will win the championship. Jeff Tarin, a well-known driver, races for UBS #42. He began racing in this tournament six years ago and is currently ranked fifth in a field of 40 drivers. The director of marketing at Jazz Sweets recently contacted your client to ask whether your client would like to start a second racing team that Jazz Sweets could sponsor. The director realizes that rally racing is the fastest-growing race sport segment among males aged 18-45.  He has already asked a successful driver from a regional conventional racing circuit to be the new team’s first driver. Your client wants to know whether he should go ahead with this opportunity.
4.2 5 316
| Rating: (4.2 / 5.0) |

Your client is the owner of UBS #42, a rally racing team. There are 36 races in a season. At the end of the season, the driver who has earned the most number of points will win the championship. Jeff Tarin, a well-known driver, races for UBS #42. He began racing in this tournament six years ago and ... Open whole case

Universal TV

Solved 7.7k times
Universal TV Our client is a Canadian TV company, Universal TV. They recently entered the US market in the northeast to expand its market share and capture a large part of the 4 m consumers in a market that has little competition. However, in the past few years, Universal TV has been unable to realize a profit. You are hired to figure out why this is the case and what their next move should be.   
4.4 5 651
| Rating: (4.4 / 5.0)

Our client is a Canadian TV company, Universal TV. They recently entered the US market in the northeast to expand its market share and capture a large part of the 4 m consumers in a market that has little competition. However, in the past few years, Universal TV has been unable to realize a profit. ... Open whole case

Caribbean Island – MBB Final Round

Solved 4.7k times
Caribbean Island – MBB Final Round A wealthy client has recently bought an island in the Caribbean. She has engaged us to identify possible uses for her new island.
4.6 5 261
| Rating: (4.6 / 5.0)

A wealthy client has recently bought an island in the Caribbean. She has engaged us to identify possible uses for her new island. Open whole case