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I've solved the case about petrol stations in Paris on my own and got a completely different answer. Out of my curiosity, I have verified the real number of petrol stations in Paris (French government shares the list of petrol stations in each municipality) and the real number of stations in all municipalities Metropole Grand Paris is 408. That is far less then specified in case solution, so we are definitely out of the principle "Don't be more then 20% off if you wanna be in the right ballpark". Could you please explain the importance of that principle?
Dear Team,
I've solved the case about petrol stations in Paris on my own and got a completely different answer. Out of my curiosity, I have verified the real number of petrol stations in Paris (French government shares the list of petrol stations in each municipality) and the real number of stations in all municipalities Metropole Grand Paris is 408. That is far less then specified in case solution, so we are definitely out of the principle "Don't be more then 20% off if you wanna be in the right ballpark". Could you please explain the importance of that principle?
A lot of times when questions like this are asked, the interviewer does not know the answer themself. The aim of market sizing questions is to test your ability to break down ambiguous problems such as number of petrol stations into more concrete elements such as ratio of petrol stations to cars. Once you outline an approach and follow it to it's logical conclusion, you should arrive at what is a reasonable answer
The final step in this is 'sense-checking' to see if the answer makes sense. For example if you find that there are 100 petrol stations in all of France or 10,000,000 those are not reasonable answers. If you realize this you go back to your approach/assumptions and tweak what may have gotten the random numbers. It is less relevant how far off you are (10%, 20%, 50%) vs how logically sound your approach is and whether you manged to pick up on the fact that your answer is far off.
A lot of times when questions like this are asked, the interviewer does not know the answer themself. The aim of market sizing questions is to test your ability to break down ambiguous problems such as number of petrol stations into more concrete elements such as ratio of petrol stations to cars. Once you outline an approach and follow it to it's logical conclusion, you should arrive at what is a reasonable answer
The final step in this is 'sense-checking' to see if the answer makes sense. For example if you find that there are 100 petrol stations in all of France or 10,000,000 those are not reasonable answers. If you realize this you go back to your approach/assumptions and tweak what may have gotten the random numbers. It is less relevant how far off you are (10%, 20%, 50%) vs how logically sound your approach is and whether you manged to pick up on the fact that your answer is far off.
That's the first time I hear about that principle, so I can assure you it's not important.
What's more important is that the numbers should make sense. Eg if you are calculating the luggage carts at the airport terminal and you get let's say 10.000 - looks like the numbers don't make any sense and most probably you've done a mistake
Best
Hi,
That's the first time I hear about that principle, so I can assure you it's not important.
What's more important is that the numbers should make sense. Eg if you are calculating the luggage carts at the airport terminal and you get let's say 10.000 - looks like the numbers don't make any sense and most probably you've done a mistake
Oliver Wyman case: Full Electrons AheadYour 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.
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
Bain Case: Old WineryYou have inherited the “Old Winery” from your grandfather, a winery that 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 a conventional way, i.e. they are not organically farmed and certified. The vine stocks are in a good condition regarding age and care. Overall, the only ¼ of the harvest is made into wine by the winery itself; the rest is sold.
Your grandfather never wanted to change the image of the winery and left the managerial and administrative task to a young and energetic wine-maker. Due to the not so well-known brand, the demand for the “Old Winery” wine is currently rather low.
You do not intent to run the winery operatively, given your limited knowledge of winemaking, but find the idea of owning a winery exciting. Your plan is to give the winery some fresh impetus.
You have inherited the “Old Winery” from your grandfather, a winery that 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 a conventional way, i.e. the ... Open whole case
Roland Berger Case: OnlinestarOnlinestar, an online retailer of furniture and garden products (core business), has grown significantly in recent years as a result of an expansion of its product portfolio. The company mainly imports goods from Chinese manufacturers but also operates its own production of cat lavatories (special business) in Eastern Europe. The company sells its goods via Amazon and eBay, and recently via an online shop on its website. Despite this development, the financial ratios have deteriorated in recent years. In particular, the gross profit margin decreased significantly. Combined with a significant increase in shipping costs, this led to a negative result for the first time in the recently ended fiscal year and a resulting strained financial situation. Against the background of expected stagnating sales for the current financial year, short-term action is required.
The board of Onlinestar asks you for an analysis of the reasons for the negative result as well as a derived recommendation for action. As a consultant, you should bring in your knowledge in online trading and develop solutions. In addition, the management board would like to receive a sales and gross profit plan from you for the current financial year.
Onlinestar, an online retailer of furniture and garden products (core business), has grown significantly in recent years as a result of an expansion of its product portfolio. The company mainly imports goods from Chinese manufacturers but also operates its own production of cat lavatories (special b ... Open whole case
NutripremiumNutripremium is a very well-known premium nutrition food company in Europe (€1 billion revenue last year). It is based in Spain and has an excellent market share not only in its home country but also in Portugal, France, Italy and Germany.
Nutripremium has two main lines of products:
Vitamin-supplements for pregnant women
Concentrated dehydrated aliments and vitamin pills for sick patients (with Diabetes or Cancer).
The CEO of Nutripremium thinks that the market in Europe is starting to get saturated and wants you to analyze the Chinese market.
What are the key areas you would explore to determine whether this is a good idea?
Nutripremium is a very well-known premium nutrition food company in Europe (€1 billion revenue last year). It is based in Spain and has an excellent market share not only in its home country but also in Portugal, France, Italy and Germany.
Nutripremium has two main lines of products:
Vitamin-su ... Open whole case
Children vaccineBeyer, one of the biggest pharmaceutical companies in the world, just invented a very reliable vaccine against Chickenpox, a disease that affects children in the age from 2 to 16 years.
Beyer came to you wondering what their potential sales in Europe in the first year would be if they launched this product next year. They are only interested in the overall sales revenue as they already know that the vaccine can be sold for a profit. This is more meant to show them how big the volume they have to supply is and what the revenue would be.
Beyer, one of the biggest pharmaceutical companies in the world, just invented a very reliable vaccine against Chickenpox, a disease that affects children in the age from 2 to 16 years.
Beyer came to you wondering what their potential sales in Europe in the first year would be if they launched this ... Open whole case
