How would you structure this question?

market entry
New answer on Jul 20, 2022
1 Answer
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Anonymous A asked on Jul 20, 2022

Dear all,

I kindly ask your feedback on my approach for the structure?

Thanks.

Prompt: "A leading Brazilian highway concessions company is looking to expand internationally Economic growth in Brazil has stalled, and in order to continue to grow both top line revenues and bottom line profitability, the client wants to diversify its portfolio and decrease its exposure to the Brazilian economy What factors should the client consider as it thinks through its international expansion options?"

Approach:

1. Country Shortlisting
-Countries available
-Competition
-Ways to enter (greenfield, acquisition, JV)

2. Financial Assessment
-Rev/cost projections for each alternative (pipeline overview)
-Upfront investment cost or acquisition cost
-Payback period or any other return metrics to justify numbers

3. Internal Considerations
-Operational impact on our current operations
-Capability assessment (previous M&A or foreign country experience)
-Affordability (do we have enough capital for this)

4. Risks
-Regulation
-Political risk
-Cultural fit
-Perception over foreign companies

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Best answer
Moritz
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Content Creator
replied on Jul 20, 2022
Unearth your spike & get the offer |ex-McKinsey | 120+ coachings & interviews @ McKinsey | ESADE MBA | Transition Expert

Hi there,

First of all thank you for providing prompt and suggested solution - this rarely happens and is best practice to get good feedback!

This sounds a lot like Q1 in any McKinsey interview. If that's the case, I would like to move your attention away from having a “structure” and towards the actual factors. The question you're really being asked is “what are the important factors and why?".

Hence, your factors need to be:

  • Relevant: Seems all fine to me, nothing sticks out as irrelevant
  • Concrete: This is where interviewers will expert more because a single word or term isn't concrete. For example, what is it exactly about the “available countries" that you're thinking? What's your hypothesis as to what controls “availability”? This is what interviewers will be looking for for every single item (and how the dynamics between the factors affect each other). If you just given them a word/term without explanation, it's worth nothing because it could mean anything.
  • Nicely packaged: Of course everything should be neatly packaged, ideally in a MECE way. However, I'm mentioning this last because people often get so obsessed with having the right structure and don't really go into detail where it matters, which is the actual factors themselves.

Hence, I suggest you think carefully about each factor and go a little deeper. Hope this makes sense!

Best of luck!

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Moritz

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Unearth your spike & get the offer |ex-McKinsey | 120+ coachings & interviews @ McKinsey | ESADE MBA | Transition Expert
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