If the interviewer specifies that the case is about increasing *revenues*

Case Case Interview consulting questioin
New answer on Aug 31, 2020
8 Answers
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Anonymous A asked on Aug 23, 2020

If the interviewer specifies that the client's objective is increasing revenues/sales, do you gloss over costs completely? Or should you still include it in your framework? Kinda confused about this because if the objective isn't outright profits, should you still dedicate time to diving into costs?

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Sidi
Expert
replied on Aug 23, 2020
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers

Hi!

Just share your thinking! Clearly state: "The client has asked how to increase revenue. Therefore I would suggest to exclude costs from our considerations. Are we aligned on this?".

Cheers, Sidi

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Clara
Expert
Content Creator
replied on Aug 24, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

Best to double check: "Just to be sure, are costs totally out of scope or shall we also consider them, even with less importance?"

Hope it helps!

Cheers,

Clara

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Udayan
Expert
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replied on Aug 23, 2020
Top rated Case & PEI coach/Multiple real offers/McKinsey EM in New York /12 years recruiting experience

Communicate very clearly that you would like to focus on revenues given the client's preference. This lets the interviewer know that you have listened to the question and that you are aware there is more to profits than just revenues

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Axel
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updated an answer on Aug 23, 2020
Bain Consultant | Interviewer for 3 years at Bain |Passionate about coaching |I will make you a case interview Rockstar

Hi Anonymous,

I would recommend that in your clarifying questions you ask why the client only wants to focus on growing revenue as there is likely some strategic rationale behind it (e.g. gain scale/market share that will lead to higher profitability at a later stage).

If there is a strategic rationale behind the revenue growth you can safely focus your framework on that. Only if there is no strong strategic rationale, and it appears that general profitability issues could driven by costs it would make sense to include in your framework.

-A

(edited)

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Ian
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replied on Aug 23, 2020
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

100% you should clarify this (and be really clear). If you're able to eliminate anything early on (in the prompt or through clarifying Qs) then you should absolutely remove it from the framework as it's wasted time/energy!

However, you do again need to be clear that it is "growth at all costs"

This is also an excellent point to add under risks during your conclusion/recommendation.

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Anonymous replied on Aug 23, 2020

Hi there,

Usually when the case is given and you clarify what the objective(s) is(are), you should follow the structure to achieve it. Since it was specified to be around increasing revenue then, yes, focus on the revenue side. You could always ask at the beginning whether other objectives are being considered (profitability? cost reduction? new market entry? new product launches etc...).

Rakan

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Antonello
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replied on Aug 31, 2020
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

Hi, yes, but to be sure you can also spend a clarifying question about it

best,
Antonello

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Anonymous replied on Aug 23, 2020

Hi there,

If the interviewer tells you clearly the case is about revenue, then do focus on revenue. Remember you have limited time to solve the case, so you need to make the best use of the time and focus on the right thing.

You can mention about cost in your next steps if during the case you find out that might be something necessary to be looked into.

Best,

Emily

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Sidi gave the best answer

Sidi

McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
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