McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School
Book a coaching

Help with revenue and cost drivers!

Anonymous A

I'm stuck of thinking of ways to increase revenues and decrease costs for each of the major industries covered in cases e.g CPG, Tech, Pharma etc

  • Upvotes
  • Date ascending
  • Date descending
Vlad replied on 10/22/2018
McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School

Hi,

I recommend selecting the top industries and downloading the annual company reports of the biggest public companies in each industry. Start going trhough the reports and googling all the concepts that you do not understand. It's good to make a mindmap for each industry / function

Focus on the most common industries in the following priority (sorted by probability of geting a case): 1-retail and CPG; 2-airlines; 3-Telecom; 4-banking; 5-natural resources; 6-tech

For each industry, you should understand:

  • Revenue streams
  • Cost structure
  • Margins
  • Key performance indicators
  • Key revenue drivers
  • Industry trends

I strongly recommend drawing the typical structures for each industry - profitability, value chain, etc

In terms of functional knowledge it is:

  • Marketing (Brand and trade marketing tools, etc)
  • Supply chain (Ops metrics like cycle time and throughput time, distribution and delivery specifics, etc)
  • Operations (Process optimization basics)
  • Finance (Very basic Finance and Valuation)

Good Luck

Best!

Elias
Expert
replied on 10/22/2018
Experienced strategy consultant, now running own consulting business

Hi Anonymous,

this is obviously a HUGE question.

A very basic, but useful framework for the revenue side is the Ansoff Matrix (look it up). This will help you to come up with a lot of ideas.

On the cost side, you should consider the two main drivers: economies of scale and economies of scope. Also, think about the configuration of the value chain: where do you see the potential for in- or outsourcing? Is "geo-arbitrage" an option, by shifting labour-intensive processes to low-wage countries (or energy intensive processes like Aluminum smelting or data centre operation) to countries with low energy costs, such as Iceland. What about a reduction of complexity (--> A/B/C analysis)?

I know these are just some very general pointers, but they should get you started.

Cheers

Elias

(edited)

Related BootCamp article(s)

Interviewer-Led vs Candidate-Led cases

Case Interviews can be led by the candidate or by the interviewer: In Candidate-led cases the main challenge is the structure. In Interviewer-led cases the main challenge is to adapt quickly

0 Comment(s)

Related case(s)

Bain case: Asian lubricants producer

Solved 69.3k times
4.7 5 26075
| Rating: (4.7 / 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

Bain Case: Old Winery

Solved 10.7k times
4.4 5 285
| Rating: (4.4 / 5.0)

You have inherited the “Old Winery” from your grandfather, a winery which has been family owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in the conventional way, i.e ... Open whole case

McKinsey Questions

Solved 24.8k times
4.4 5 704
| Rating: (4.4 / 5.0) |
Difficulty: Intermediate | Style: Fit interview | Topics: Personal fit

Tell me of a situation where you had an opinion and no one seemed to agree with you. What was your goal when you decided to join university / work / clubs / a sports team? Did you have a goal that you were not able to reach? What did you do? What do you want to be remembered for and how are ... Open whole case

Bain Questions

Solved 17.1k times
4.6 5 195
| Rating: (4.6 / 5.0) |
Difficulty: Intermediate | Style: Fit interview | Topics: Personal fit

Tell me about a difficult situation you had to cope with. Tell me of a task which you didn’t like doing and explain why you performed it nevertheless. Why do you do things? What do you like doing most / What is your favorite hobby? Walk me through a situation where you showed leadership s ... Open whole case

BCG Questions

Solved 16.2k times
4.5 5 158
| Rating: (4.5 / 5.0) |
Difficulty: Intermediate | Style: Fit interview | Topics: Personal fit

What arouses your interest when you are working / studying / doing another activity (from the CV)? Tell me of a time where you had no idea what you were doing. When did you use an uncommon approach to do something? Have you ever had responsibility for other people? Tell me of a situation ... Open whole case