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Summary

McKinsey Case: Digital & Vegan Restaurant Franchise
New answer on Jul 19, 2023
3 Answers
304 Views
Mihaela asked on Jul 19, 2023

Hi everyone, 

I have a short question about the end. When  we say that we expect 2m net profit from the technology, shouldnt we say more than 2m as there will be costs saved from the reduced numbers of mistakes as well. We have the info that it becomes from 11 to 2 and that is 9 mistakes pro day less and we do not include this aspect anywhere in our calculatons as we dont know how much a mistake cost on average, but we can include it in the conclusion qualitatively? Or am I missing something here?

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Cristian
Expert
Content Creator
replied on Jul 19, 2023
#1 rated MBB & McKinsey Coach

Hi there, 

Yes, you could make this point as part of your ‘interpretation of the result’ at the end of the question. This is a great opportunity to try and contextualise as much as possible on the client situation.

Best,
Cristian

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Hagen
Expert
Content Creator
replied on Jul 19, 2023
#1 Bain coach | >95% success rate | interviewer for 8+ years | mentor and coach for 7+ years

Hi Mihaela,

I would be happy to share my thoughts on your question:

  • First of all, you are absolutely right in observing that the decrease in mistakes should theoretically lead to cost savings and therefore higher net profit. This is a very smart observation, showing your ability to recognize the broader implications of changes in operational efficiency.
  • Moreover, I would advise you to include this aspect qualitatively in your conclusion, as you mentioned. Even if the case does not provide specific cost figures associated with each mistake, it is a valid point to mention that reduction in mistakes would generally lead to cost savings and thus, an increase in net profit, even if unquantified.

If you would like a more detailed discussion on how to best prepare for your upcoming interviews, please don't hesitate to contact me directly.

Best,

Hagen

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Ian
Expert
Content Creator
replied on Jul 19, 2023
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi Mihaela,

Yes, absolutely!

Remember, when giving your recommendation you want to be super clear on what you're recommending. Then, you need to provide supporting reasons (with the most important first). Then, a couple of risks. Finaly, next steps mitigating those risks.

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Cristian gave the best answer

Cristian

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