Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Interview Partners to connect and practice with!
Back to overview

Government subsidy: cost cuting measure or revenue enhancement?

Hello all,

Just to clarify one point: is it wrong to mention public funds as a way to cut down costs?

Technically this would be another revenue stream, but can be justified by specific cost cutting purposes (ex: subsidy for the investement costs of a company willing to enter the renewable energy market)?

Thanks you very much for your insights,

Best

Marie-Eve

1
2.8k
8
Be the first to answer!
Nobody has responded to this question yet.
Top answer
Vlad
Coach
on Sep 17, 2017
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

It depends on who is your client.

  • For a private company, it will be just a part of revenues that otherwise would be paid by the end user.
  • For a government-owned company or a public-private partnership, it may be a decrease in revenues. Imagine government subsidizing the subway tickets for veterans. If the subway is not privately owned - government most probably will subsidize less than a regular ticket price.
  • I can't imagine a case when government subsidies will be a cost-cutting tool

Best,

Vlad

Similar Questions
Consulting
How should I explain a change in course at university? Will it be asked of me?
on Apr 14, 2025
Global
10
3.7k
Top answer by
Alessa
Coach
xMcKinsey & Company | xBCG | +200 individual & group coachings | feel free to schedule a 15 min intro call for free
81
10 Answers
3.7k Views
+7
Consulting
Just did the Mckinsey Solve Game (January 2025) - got some questions/insights
on Apr 24, 2025
Global
5
3.9k
Top answer by
Hagen
Coach
#1 recommended coach | >95% success rate | 8+ years consulting, 8+ years coaching and 7+ years interviewing experience
42
5 Answers
3.9k Views
+2
Consulting
Want IAPP AIGP (Artificial Intelligence Governance Professional) Exam sample Questions
on Apr 14, 2025
Global
4
2.5k
Top answer by
Hagen
Coach
#1 recommended coach | >95% success rate | 8+ years consulting, 8+ years coaching and 7+ years interviewing experience
56
4 Answers
2.5k Views
+1
How likely are you to recommend us to a friend or fellow student?
0 = Not likely
10 = Very likely
Thanks for your feedback! Your opinion helps us make PrepLounge even better.