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Cost reduction - which framework to use?

Case Interview Cost reduction
Most recent answer on Oct 19, 2022
The best answer (on Sep 26, 2017) is from:
Vlad
Expert
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Vlad
Expert
 gave the best answer on Sep 26, 2017
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Hi, As a candidate, I've struggled a lot with cost reduction cases since most of the case books don't have them, while you can face these cases on the case interviews. This is especially relevant for McKinsey intervie ... (read entire answer)
3
Answers
30.0 k
Views
63
Total Upvotes
on Oct 19, 2022 on Oct 19, 2022
Last Activity

Fixed costs

Cost reduction
Most recent answer on Jun 27, 2021
The best answer (on Jun 27, 2021) is from:
Ian
Expert
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Ian
Expert
 gave the best answer on Jun 27, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, This is very industry specific! In general though, this is about spending less and/or gaining efficiencies. If my fixed cost is rent, I can look to move to cheaper location. If it's factory costs, I can shri ... (read entire answer)
3
Answers
970
Views
49
Total Upvotes
on Jun 27, 2021 on Jun 27, 2021
Last Activity

How to reduce consulting spend?

Case Interview consulting spend Cost reduction cost saving
Most recent answer on Mar 15, 2021
The best answer (on Mar 11, 2021) is from:
Adi
Expert
Accenture, Deloitte | Precision Case Prep | Experienced Interviewer & Career Coach | 15 years professional experience
Adi
Expert
 gave the best answer on Mar 11, 2021
Accenture, Deloitte | Precision Case Prep | Experienced Interviewer & Career Coach | 15 years professional experience
Hey, do you want to post your solution here for us to comment? Best way to learn.. If you need a nudge to get started, think about following aspects (and add more from your thinking): Move to partnership based mo ... (read entire answer)
5
Answers
1.4 k
Views
25
Total Upvotes
on Mar 15, 2021 on Mar 15, 2021
Last Activity

Prioritise increasing revenues or decreasing costs in a profit increase case?

Cost reduction growth strategy improving profitability profitability
Most recent answer on Feb 28, 2021
The best answer (on Feb 27, 2021) is from:
Ian
Expert
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Ian
Expert
 gave the best answer on Feb 27, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, You need to understand the industry + company context from the prompt itself to figure this out...cases and case types cannot be memorized...you have to adjust every single time! Take my "Chinese Airline D ... (read entire answer)
9
Answers
1.4 k
Views
98
Total Upvotes
on Feb 28, 2021 on Feb 28, 2021
Last Activity

Cost Reduction - Structure

approaching a case Cost reduction cost structure cost-benefit analysis MBB Cost Structure profitability cost reduction Structure
Most recent answer on Jan 15, 2021
The best answer (on Jan 15, 2021) is from:
Ian
Expert
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Ian
Expert
 gave the best answer on Jan 15, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi Ish, In general, for determining cost issues, you need to break down the problem into a tree/root-cause analysis and ask the highest level (but specific) questions first! In this way, you essentially move down the ... (read entire answer)
3
Answers
1.9 k
Views
44
Total Upvotes
on Jan 15, 2021 on Jan 15, 2021
Last Activity

Close 1 product line (save 6k cost & loss 1.5k profit) is a 4.5k net gain?

Cost reduction profitability yale casebook
Most recent answer on Jan 04, 2020
The best answer (on Jan 04, 2020) is from:
Antonello
Expert
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching
Antonello
Expert
 gave the best answer on Jan 04, 2020
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching
Hi, I agree with you. From the screenshot you provided on the case, it seems that it is comparing profit with variable cost. The correct consideration is comparing revenue and variable cost (i.e. the loss in profit -> ... (read entire answer)
4
Answers
1.8 k
Views
5
Total Upvotes
on Jan 04, 2020 on Jan 04, 2020
Last Activity

McKinsey: How to best sub-structure fixed costs?

BCG Cost reduction fixed costs McKinsey
Recent activity on Feb 27, 2019
The best answer (on Feb 26, 2019) is from:
Guennael
Expert
Ex-MBB, Experienced Hire; I will teach you not only the how, but also the why of case interviews
Guennael
Expert
 gave the best answer on Feb 26, 2019
Ex-MBB, Experienced Hire; I will teach you not only the how, but also the why of case interviews
There is no one best way. Industries will usually have a very significant fixed cost component, Services often a larger variable cost component - but inside FC & VC, a number of parameters will come into play depend ... (read entire answer)
3
Answers
3.3 k
Views
2
Total Upvotes
on Feb 27, 2019 on Feb 27, 2019
Last Activity

Opportunity Assessment Structure

Cost reduction cost-benefit analysis opportunity assessment sourcing
Recent activity on Jan 29, 2019
The best answer (on Jan 29, 2019) is from:
Sidi
Expert
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
Sidi
Expert
 gave the best answer on Jan 29, 2019
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
Hi Anonymous, at the highest level approaching a "strategic action case" entails the following three elements: 1. Define the OBJECTIVE of the client (without knowing the objective, it is logically impossible to come ... (read entire answer)
3
Answers
2.6 k
Views
4
Total Upvotes
on Jan 29, 2019 on Jan 29, 2019
Last Activity

Creative Methods to cut costs

Cost reduction
Recent activity on Nov 13, 2018
Anonymous gave the best answer on Nov 13, 2018
Spitballing: Instead of buying (expensive) office chairs and tables, buy them at IKEA and have your employees assemble them (Amazon did that). Use AirBnB instead of hotels for business travel Use open source so ... (read entire answer)
3
Answers
2.7 k
Views
9
Total Upvotes
on Nov 13, 2018 on Nov 13, 2018
Last Activity

Disadvantage of relying on only one supplier

Case Interview Cost reduction
Recent activity on Aug 12, 2018
The best answer (on Aug 12, 2018) is from:
Benjamin
Expert
ex-Manager - Natural and challenging teacher - Taylor case solving, no framework
Benjamin
Expert
 gave the best answer on Aug 12, 2018
ex-Manager - Natural and challenging teacher - Taylor case solving, no framework
Hi, Bringing than one more supplier is indeed more than necesseray but can be challenging for the client : - He will need to esablish clear specifications : depending on his business this is something he might not be ab ... (read entire answer)
2
Answers
2.7 k
Views
3
Total Upvotes
on Aug 12, 2018 on Aug 12, 2018
Last Activity

Basic Cost Frameworks?

Cost reduction cost-benefit analysis fixed costs profitability cost reduction variable costs
Recent activity on Mar 08, 2018
The best answer (on Mar 08, 2018) is from:
Vlad
Expert
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Vlad
Expert
 gave the best answer on Mar 08, 2018
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Hi, As a candidate, I've struggled a lot with cost reduction cases since most of the case books don't have them, while you can face these cases on the case interviews. This is especially relevant for McKinsey intervie ... (read entire answer)
2
Answers
4.8 k
Views
11
Total Upvotes
on Mar 08, 2018 on Mar 08, 2018
Last Activity
11 results

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