Result is C) +60M$

1. Identify number of stores of Retail Co

• Sales area= sales : sales/m2 = 1.2bn$ : 10,000 = 120,000 m2
• Sales area = 80% of store area
• Store area = ((sales area * 100%) : 80%) : m2/store = ((120,000 m2 * 100%) : 80%) : 1,000 m2 = 150

2. Decrease of number of stores by 10

• Number of stores after acquisition = 140
• Assumption: sales/m2 of RetailCo = 11,250 $/m2
• Store area (=100%) = number of stores * m2/store = 140 * 1,000 m2 = 140,000 m2
• Sales area = 80% of store area = (140,000 m2 * 80%) : 100% = 112,000 m2
• Sales = sales area * new sales/m2 = 112,000 m2 * 11,250 $/m2 = 1.26bn $

3. Increase in sales

• Old sales: 1.2bn$
• New sales: 1.26bn$
• Increase by: 60M$

Hi Anonymous, I am Italian and have worked at Bain Italy for ~2.5 years.

In terms of written entry tests in strategy consulting companies in Italy see below some more info, based on my knowledge:

- With written tests (for sure):

• McKinsey (PST, which I did and passed, but it is pretty tough. You can find a few examples online to practice)
• BCG (they do a logical and verbal written test. What I have heard from some friends who did it, it is feasible)

- Without written tests (for sure):

• Bain & Co (I did and passed interviews at Bain and there is no written test. First round is directly with 2 managers for a case interview)

- Without written tests (I think): All the other ones as Roland Berger, OW, AT Kearney should not have a written test from what I have heard but I am not 100% sure.

Hope this is helpful and happy to help if you need any more tips on consulting in Italy, especially for Bain, where I worked at.

Annalisa

Hey Constance,

I have taken the McKinsey Problem Solving Test. It's a very interesting exam indeed - it's not a math test, it's not an English test, but it's a bit of both and something more. :)

1. Pattern & Question types:

The test contains 26 questions which need to be solved in one hour. The questions belong in the following categories

• Reading questions: These ask you to read the wording of the question, which in most cases is a narrative about a company and its problems. You will be asked to answer questions like "Which of these summarizes the main issue faced by the company?". The main skill tested is your ability to draw pinpoint conclusions from a body of text. (~20%)
• Analytical and Data interpretation questions: These are direct questions about the data. The majority of these questions require you to analyze and draw conclusions based on numbers presented in the data exhibits. Some questions also require you to work out formulae that can be used to calculate a desired result). (~65%)
• Reasoning questions: They test your logical reasoning skills - you are expected to carefully separate correlation from causation to answer questions like "Which of the following statements, if true, would cause...?" (~15%)

You can find some more interesting content about the PST and practice questions on PrepLounge in the Bootcamp and other websites as well. But above all, I would recommend going through the practice tests on McKinsey's website. They resemble the actual test way more closely than anything else online.

All the best!

Achyut

P.S - the percentage breakdown of questions is my estimate only. Take it with a pinch of salt ;)