Hello, I will have a Simon Kucher Interview soon and I wanted to know (i) what kind of brainteasers they normally ask (ii) how I could answer and structure a pricing case?
Simon Kucher Interview
Overview of answers
Upvotes
Best answer
Hello!
I would not focus more than 1/2 a day of work in brainteasers to be honest. Instead, I would tackle SK as you would with MBB interviews, with 2 main workstreams ahead:
1. FIT INTERVIEW
The "Integrated FIT guide for MBB" has been recently published in PrepLounge´s shop (https://www.preplounge.com/en/shop/tests-2/integrated-fit-guide-for-mbb-34)
It provides an end-to-end preparation for all three MBB interviews, tackling each firms particularities and combining key concepts review and a hands-on methodology. Following the book, the candidate will prepare his/her stories by practicing with over 50 real questions and leveraging special frameworks and worksheets that guide step-by-step, developed by the author and her experience as a Master in Management professor and coach. Finally, as further guidance, the guide encompasses over 20 examples from real candidates.
You can see plenty of reviews from candidates who purchased it already.
Furthermore, you can find 2 free cases in the PrepL case regarding FIT preparation:
Intro and CV questions > https://www.preplounge.com/en/management-consulting-cases/fit-interview/intermediate/introduction-and-cv-questions-fit-interview-preparation-200
Motivational questions > https://www.preplounge.com/en/management-consulting-cases/fit-interview/intermediate/motivational-questions-fit-interview-preparation-201
Behavioural questions (ENTREPRENEURIAL DRIVE) >https://www.preplounge.com/en/management-consulting-cases/fit-interview/intermediate/behavioral-questions-entrepreneurial-drive-fit-interview-preparation-211
Feel free to PM me for disccount codes, since we still have some left from the launch! :)
2. BUSINESS CASE
You need to get hands on asap:
1. Practice cases with partners asap, as many as you can do.Find experienced partners who can provide a good feedback
2. Practice your math skills, both in your cases and with ad hoc exercisess, such as:
1. Multiplying double digit numbers (https://www.youtube.com/watch?v=6ndkkPZYJHo
2. Leveraging math tools (Mimir math for iOS), Math tool on Viktor Cheng website to practice
1. Profitability cases- basic profitability framework.
2. Idea generation cases: for any specif issue
3. Growth cases: market penetration, new product launch, product mix change, etc.
4. Pricing cases
5. M&A cases
6. Valuation cases
7. Value chain cases
Given you are under this much time contraint, consider working with a coach to foster speed and ensure you have a tailored plan to be very targeted. PM me interested!
Hope it helps!
Cheers,
Clara
Was this answer helpful?
Hi, feel free to text me for a brain teaser collection and for some tips about case prep. I have suppported many candidates in achieving Simon Kucher offers
Best,
Anto
Was this answer helpful?
Hi,
I would not spend too much time on brainteaser.
I would focus on preparing the case with a case partner.
Best,
Iman
Was this answer helpful?
Hi there,
First, congratulations on the interview and good luck!
Pricing Thought Process
1. Value-based or Willingness to Pay
When: This is your top choice.
How: Find a $ value for what customers would pay. This is normally adding the revenue increase and/or cost reduction that your customers get by buying your product/service. If it's more of a utility/happiness product, then customer surveys of product comparisons serve well as well.
Then, charge a discounted amount of that WTP, based on your eagerness/desire to capture market share.
2. Benchmarking
When: This is what you have to do if there's competition
How: See what price your competition charges!
3. Cost-based
When: This is what you do if you can't benchmark (i.e. no competition) AND you can't get a gauge on WTP.
How: Figure out your cost structure. Get the break-even point (i.e. how much you need to price the product at for there for be 0 profit per item sold). Then, charge a % margin on top (normally 10-20%)
---------------------------------------------------
What's the step-by-step logic in pricing?
Question #1: Are there competitors (or is this a new market)?
Q1A: If yes, can I differentiate my product?
If yes, value-based
If no, competitor pricing/benchmarking is eliminated.
Q1B: If no, can I determine the value-add of my product (i.e. if saves x costs or a survey says people will pay x)?
If yes, value-based
If no, cost-based
Summary: If you can, you always want to do value-based. This is the most effective form of pricing. If you have "something" to go off of, you use it, else you use cost-based because you have no other choice.
Value-based occurs if:
1) You are a monopoly
2) You are the first entrant into a market
3) You can differentiate your product from other (I.e. monopolistic competition)
--------------------------------------------------------------------------------------
Brainsteasers
http://www.ibankingfaq.com/interviewing-brainteasers/a-windowless-room-has-3-lightbulbs-you-are-outside-the-room-with-3-switches-each-controlling-one-of-the-lightbulbs-if-you-can-only-enter-the-room-one-time-how-do-you-determine-which-switch-contr/
https://www.mathsisfun.com/puzzles/black-and-white-hats-solution.html
(edited)
Was this answer helpful?
Related Cases
Expert case by Francesco
Style:
Our client is the US-based biotech company Top Chemicals. They have just developed a fertilizer that is waiting to get approval for commercialization. They hired us to identify the best price for it.
Our client is the US-based biotech company Top Chemicals. They have just developed a fertilizer that is waiting to get approval for commercialization. They hired us to identify the best price for it.
(Open whole case)
2.4k
Times solved
Intermediate
Difficulty
Content Creator
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
68
Meetings
24,363
Q&A Upvotes
149
Awards
57 Reviews