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
3

Growth Strategy

When a case describes a client's situation of "stagnating growth" should both revenues and costs be analyzed? or should the analysis focus mainly on strategies for revenue growth?

Thanks!

When a case describes a client's situation of "stagnating growth" should both revenues and costs be analyzed? or should the analysis focus mainly on strategies for revenue growth?

Thanks!

3 answers

  • Upvotes
  • Date ascending
  • Date descending
Best Answer

Hi,

this is a very open-ended question. If you mean "profit growth", you could achieve "growth" by investigating both revenues and costs. If, however, you mean "revenue growth" then you would obviously not want to look into costs.

Again, the question is very open ended. You should always strive to narrow down/quantify the objective as much as possible. With the information given, it is unclear whether "stagnating growth" is a problem at all.

In addition, should you be targeting revenue growth, you could structure your thoughts along the lines of the Ansoff matrix, i.e.:

  1. Market penetration
  2. Product development
  3. Market development
  4. Diversification

A couple of remarks:

  • Do not tell your interviewer that you "can solve the case using the Ansoff Matrix" - this is only to structure your thoughts.
  • The sub bullets of points (1) to (4) above depend on the business and the market environment.

Hope that helps.

Best regards

Hi,

this is a very open-ended question. If you mean "profit growth", you could achieve "growth" by investigating both revenues and costs. If, however, you mean "revenue growth" then you would obviously not want to look into costs.

Again, the question is very open ended. You should always strive to narrow down/quantify the objective as much as possible. With the information given, it is unclear whether "stagnating growth" is a problem at all.

In addition, should you be targeting revenue growth, you could structure your thoughts along the lines of the Ansoff matrix, i.e.:

  1. Market penetration
  2. Product development
  3. Market development
  4. Diversification

A couple of remarks:

  • Do not tell your interviewer that you "can solve the case using the Ansoff Matrix" - this is only to structure your thoughts.
  • The sub bullets of points (1) to (4) above depend on the business and the market environment.

Hope that helps.

Best regards

(edited)

Book a coaching with Sidi

99% Recommendation Rate

410 Meetings

3,800 Q&A Upvotes

USD 389 / Coaching

Hi!

On of the first things you have to do in a case is to nail down the definition of your focus metric!

You can't let the interviewer get away with a blurry question without verifying the exact definition of what he is talking about or asking for!

So you HAVE to ask what growth means for the client - growth of revenue? Growth of profit? Anything else? Based on this, the answer to your question then becomes evident.

Best, Sidi

Hi!

On of the first things you have to do in a case is to nail down the definition of your focus metric!

You can't let the interviewer get away with a blurry question without verifying the exact definition of what he is talking about or asking for!

So you HAVE to ask what growth means for the client - growth of revenue? Growth of profit? Anything else? Based on this, the answer to your question then becomes evident.

Best, Sidi

Book a coaching with Vlad

97% Recommendation Rate

389 Meetings

8,065 Q&A Upvotes

USD 239 / Coaching

Hi,

It depends on which growth you are trying to achieve. You should always ask clarifying questions:

I suggest asking the following questions:

1) Clarify the business model / how the business actually makes money. Even if you think you understand it, try to repeat it to make sure that you understand it correctly. e.g. if the case is about oil&gas company which revenues are declining, ask if it is Up / mid / down-stream problem. In this case, defining a revenue stream is critical to setting up the right structure.

2) Clarify the objective. Here make sure that your goal is:

  • Measurable
  • Has a time-framed
  • Has / has no limitations

e.g. Should I invest 100k in this business for 1 year if I want to get 15% return?

3) Ask the questions that will help you build a relevant structure and remove ambiguity.

Best!

Hi,

It depends on which growth you are trying to achieve. You should always ask clarifying questions:

I suggest asking the following questions:

1) Clarify the business model / how the business actually makes money. Even if you think you understand it, try to repeat it to make sure that you understand it correctly. e.g. if the case is about oil&gas company which revenues are declining, ask if it is Up / mid / down-stream problem. In this case, defining a revenue stream is critical to setting up the right structure.

2) Clarify the objective. Here make sure that your goal is:

  • Measurable
  • Has a time-framed
  • Has / has no limitations

e.g. Should I invest 100k in this business for 1 year if I want to get 15% return?

3) Ask the questions that will help you build a relevant structure and remove ambiguity.

Best!

Related BootCamp article(s)

CAGR - Compound Annual Growth Rate

Learn everything you need to know about CAGR (Compound Annual Growth Rate) for your case interview ✔ Definition ✔ Formula ✔ Examples ✔ Applications

Growth Strategy

Growth questions are among the most common questions in consulting case interviews: gather the necessary Information about volume and price to find the best growth lever

Related case(s)

Bain case: Asian lubricants producer

Solved 134.5k 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 28570
| 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

Oliver Wyman case: Full Electrons Ahead

Solved 84.4k times
Oliver Wyman case: Full Electrons Ahead Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise them on how to adjust the product offering.
4.6 5 5857
| Rating: (4.6 / 5.0)

Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise ... Open whole case

EY-Parthenon Case: Virtual Marketplace

Solved 33.5k times
EY-Parthenon Case: Virtual Marketplace A leading online real estate marketplace in Germany – your-new-home.com – is struggling with stagnating sales after many years of high growth rates. In a preliminary project with EY-Parthenon, the market environment has already been examined in detail – competitors, new entrants, customer needs, etc. As a result, you are asked to identify growth areas and to quantify the potential sales uplift for the management.
4.4 5 1036
| Rating: (4.4 / 5.0)

A leading online real estate marketplace in Germany – your-new-home.com – is struggling with stagnating sales after many years of high growth rates. In a preliminary project with EY-Parthenon, the market environment has already been examined in detail – competitors, new entrants, customer needs, etc ... Open whole case

Andersch Case: Krise im Ferkelstall

Solved 9.8k times
Andersch Case: Krise im Ferkelstall Dein Mandant ist Vorstandsvorsitzender einer international aufgestellten Agrarholding. Deine Aufgabe ist es, den Mandanten bei der Ursachenforschung für die aktuelle Krise in einer der Tochtergesellschaften zu unterstützen, kurzfristige Maßnahmen für einen unvorhergesehenen Liquiditätsengpass zu entwickeln und anschließend bei den zugrundeliegenden Handlungsoptionen zu beraten.
4.2 5 242
| Rating: (4.2 / 5.0)

Dein Mandant ist Vorstandsvorsitzender einer international aufgestellten Agrarholding. Deine Aufgabe ist es, den Mandanten bei der Ursachenforschung für die aktuelle Krise in einer der Tochtergesellschaften zu unterstützen, kurzfristige Maßnahmen für einen unvorhergesehenen Liquiditätsengpass zu ent ... Open whole case

BearingPoint Case: Digital Business Model of a Parking App

Solved 9.5k times
BearingPoint Case: Digital Business Model of a Parking App A car park and parking lot operator pursues the strategic goal of exploiting new sources of income via digital business models. As part of this initiative, a MVP (Minimal Viable Product) was developed for a parking app that enables users to search and pay for paid parking spaces. The managing director approaches you with the request to carry out a comprehensive analysis of the parking app. First, the digital business model of the parking app will be analyzed. After the strategic consideration, a financial evaluation of the parking app will be carried out. On this basis, a clear recommendation will be made as to whether the app should be rolled out throughout Germany or not. Finally, an analytics-driven expansion strategy should be considered.
3.1 5 116
| Rating: (3.1 / 5.0)

A car park and parking lot operator pursues the strategic goal of exploiting new sources of income via digital business models. As part of this initiative, a MVP (Minimal Viable Product) was developed for a parking app that enables users to search and pay for paid parking spaces. The managing direc ... Open whole case