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Consulting Q&A

Consulting Q&A – Ask Questions about Your Career

In this overview, you will find all the questions asked so far by the PrepLounge community. Anyone can ask questions and write answers. Our coaches are also happy to share their expertise. If you like an answer, give it an upvote so that it rises to the top. Here you can also find our guidelines and FAQs for the Consulting Q&A.

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revenue synergies

business acumen
Most recent answer on Nov 08, 2021
The best answer (on Nov 07, 2021) 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 Nov 07, 2021
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
Hi! Increasing avg price per se is not a synergy.  A synergy merges on the ground of common usage of tangible or intangible assets/resources which have complimentary features. For example, if two companies merge, one ha ... (read entire answer)
5
Answers
1.0 k
Views
43
Total Upvotes
on Nov 08, 2021 on Nov 08, 2021
Last Activity

improve cashflow

business acumen
Most recent answer on Nov 02, 2021
The best answer (on Nov 02, 2021) is from:
Pedro
Expert
30% off in April 2024 | Bain | EY-Parthenon | Roland Berger | Market Sizing | DARDEN MBA
Pedro
Expert
 gave the best answer on Nov 02, 2021
30% off in April 2024 | Bain | EY-Parthenon | Roland Berger | Market Sizing | DARDEN MBA
For case purposes, I would focus on the operational and investing cash flow, and not so much on the financiang part.You have to break down the cash flow into its individual components, and then consider what can impact ... (read entire answer)
2
Answers
720
Views
16
Total Upvotes
on Nov 02, 2021 on Nov 02, 2021
Last Activity

New products in brainstorming

business acumen
Most recent answer on Sep 06, 2021
The best answer (on Sep 06, 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 Sep 06, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, I hope you don't have a “revenues” and a “profits” bucket in your framework! This would not be MECE. Honestly, I would rather put new products/services as it's own bucket. (complemented by an “existing revenue ... (read entire answer)
3
Answers
975
Views
36
Total Upvotes
on Sep 06, 2021 on Sep 06, 2021
Last Activity

drug coming off patent

business acumen
Most recent answer on Aug 30, 2021
The best answer (on Aug 29, 2021) is from:
Slawomir
Expert
Former McK interviewer, PhD who successfully transitioned from Academia, received offers from McK/BCG/Bain/LEK
Slawomir
Expert
 gave the best answer on Aug 29, 2021
Former McK interviewer, PhD who successfully transitioned from Academia, received offers from McK/BCG/Bain/LEK
Certainly, increased competition can lead to revenue decrease. Therefore, I would suggest thinking more broadly about the strategic response (e.g., obtaining approval for different diseases, considering other markets wi ... (read entire answer)
3
Answers
945
Views
26
Total Upvotes
on Aug 30, 2021 on Aug 30, 2021
Last Activity

Supplier/distributor risk

business acumen
Most recent answer on Aug 17, 2021
Anonymous A asked on Aug 15, 2021
If you are merging with another company or even merging a two business units in your company, I’d there a risk suppliers or distributors may increase prices since they know you’d probably be getting some revenue synergi ... (read entire question)
3
Answers
637
Views
0
Total Upvotes
on Aug 17, 2021 on Aug 17, 2021
Last Activity

Eyeballing CAGR

business acumen
Most recent answer on Aug 17, 2021
The best answer (on Aug 17, 2021) is from:
Clara
Expert
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Clara
Expert
 gave the best answer on Aug 17, 2021
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Hello! I need to say that I enjoyed the question, it reminded me of those intelligence tests that we were given as kinds in school!  This said, I have never seen these type of IQ test questions in MBB or consulting in g ... (read entire answer)
3
Answers
561
Views
6
Total Upvotes
on Aug 17, 2021 on Aug 17, 2021
Last Activity

Churn rate calculations

business acumen
Most recent answer on Aug 17, 2021
The best answer (on Aug 17, 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 Aug 17, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, I don't know any off the top of my head, but a casebook and crtl + f isn't a bad way to start :)
1
Answer
782
Views
10
Total Upvotes
on Aug 17, 2021 on Aug 17, 2021
Last Activity

Inventory costs

business acumen
Most recent answer on Aug 16, 2021
The best answer (on Aug 16, 2021) is from:
Slawomir
Expert
Former McK interviewer, PhD who successfully transitioned from Academia, received offers from McK/BCG/Bain/LEK
Slawomir
Expert
 gave the best answer on Aug 16, 2021
Former McK interviewer, PhD who successfully transitioned from Academia, received offers from McK/BCG/Bain/LEK
I believe it may depend on the context. Typically inventory refers to the value of finished products that are not sold yet (could be also raw materials, partially assembled products, spare parts etc.) This is a position ... (read entire answer)
2
Answers
547
Views
23
Total Upvotes
on Aug 16, 2021 on Aug 16, 2021
Last Activity

Gross margin

business acumen
Most recent answer on Aug 13, 2021
The best answer (on Aug 13, 2021) is from:
Francesco
Expert
#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching
Francesco
Expert
 gave the best answer on Aug 13, 2021
#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching
Hi there, If you know the percentage of revenues of each division, you should be able to get it by multiplying the gross margin of each division times the percentage of contribution of revenues of that particular divisi ... (read entire answer)
2
Answers
555
Views
32
Total Upvotes
on Aug 13, 2021 on Aug 13, 2021
Last Activity

SG&A

business acumen
Most recent answer on Aug 13, 2021
The best answer (on Aug 13, 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 Aug 13, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Yes it absolutely does! As the first result on google says: "SG&A includes all everyday operating expenses of running a business that are not included in the production of goods or delivery of services. Typical SG&a ... (read entire answer)
1
Answer
442
Views
8
Total Upvotes
on Aug 13, 2021 on Aug 13, 2021
Last Activity

Sponsorship and advertising

business acumen
Most recent answer on Aug 12, 2021
The best answer (on Aug 12, 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 Aug 12, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, Sponsorship is not different to adversting. Sponsorship is a form of advertising. For example, Asahi sponsored the Japan Olympics. What does this mean? It essentially paid them money to build stadiums, setup o ... (read entire answer)
2
Answers
629
Views
20
Total Upvotes
on Aug 12, 2021 on Aug 12, 2021
Last Activity

Disadvantages of deductibles

business acumen
Most recent answer on Aug 05, 2021
The best answer (on Aug 05, 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 Aug 05, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, You are correct here in that it is a dissuading factor in a customer's decision to pick your product. Ultimately, if you're a good insurance company, you perfectly understand the risk “scale” and know what is ... (read entire answer)
1
Answer
522
Views
13
Total Upvotes
on Aug 05, 2021 on Aug 05, 2021
Last Activity

Product wastage and variable costs

business acumen
Most recent answer on Aug 03, 2021
The best answer (on Aug 03, 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 Aug 03, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
You squeeze 3 lemons by hand to get a cup of lemonade. Lemons cost $1 each, so each cup costs you $3 in variable costs. You then make a machine that allows you to get more juice per lemon by squeezing more surface are ... (read entire answer)
2
Answers
497
Views
12
Total Upvotes
on Aug 03, 2021 on Aug 03, 2021
Last Activity

Number of deaths per year

business acumen
Most recent answer on Aug 02, 2021
The best answer (on Aug 01, 2021) 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 Aug 01, 2021
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
Hi! There are two underlying assumptions: 1. Population growth is flat 2. Age distribution is even across the 80 years (the number of people in each of the 80 age brackets is 1/80*320m) With these two assumption ... (read entire answer)
4
Answers
697
Views
30
Total Upvotes
on Aug 02, 2021 on Aug 02, 2021
Last Activity

What is a deductible in insurance? Is it the same as premium or copay?

business acumen
Most recent answer on Aug 02, 2021
The best answer (on Aug 01, 2021) is from:
Sofia
Expert
Top-Ranked Coach on PrepLounge for 3 years| McKinsey San Francisco | Harvard graduate | 6+ years of coaching
Sofia
Expert
 gave the best answer on Aug 01, 2021
Top-Ranked Coach on PrepLounge for 3 years| McKinsey San Francisco | Harvard graduate | 6+ years of coaching
Hello! Deductible, premium, and copay refer to different things in insurance policies. The deductible is the amount you have to pay for services before the insurance provider will begin to cover any expenses. The prem ... (read entire answer)
2
Answers
522
Views
28
Total Upvotes
on Aug 02, 2021 on Aug 02, 2021
Last Activity

Cogs and units sold

business acumen
Most recent answer on Aug 02, 2021
The best answer (on Aug 02, 2021) 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 Aug 02, 2021
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
Hi! "Cogs is directly proportional to the number of units of goods sold right? " --> No, that's wrong! COGS is related to the number of units PRODUCED! Usually it is correlated, but it's still an important distingu ... (read entire answer)
5
Answers
793
Views
35
Total Upvotes
on Aug 02, 2021 on Aug 02, 2021
Last Activity

Roi and interest rate

business acumen
Most recent answer on Aug 02, 2021
The best answer (on Aug 02, 2021) is from:
Agrim
Expert
BCG Dubai Project Leader | Learn to think like a Consultant | Free personalised prep plan | 6+ years in Consulting
Agrim
Expert
 gave the best answer on Aug 02, 2021
BCG Dubai Project Leader | Learn to think like a Consultant | Free personalised prep plan | 6+ years in Consulting
Depends on your leverage ratio. Assuming that by RoI you mean RoE. If you have $20 of equity, and $80 of debt. Your RoI is $17 (85% of $20) and your interest payment is $20 (25% of $80). So you are actually in a los ... (read entire answer)
3
Answers
936
Views
25
Total Upvotes
on Aug 02, 2021 on Aug 02, 2021
Last Activity

Capex vs upfront investment costs

business acumen
Most recent answer on Jul 30, 2021
The best answer (on Jul 29, 2021) is from:
Andrew
Expert
Recent Bain SF | UVa Recruiting Lead | Experienced on Both Sides of the Table
Andrew
Expert
 gave the best answer on Jul 29, 2021
Recent Bain SF | UVa Recruiting Lead | Experienced on Both Sides of the Table
It depends on the context. You may be asked to calculate the ROI or payback period on a given capital expenditure (e.g., Client is spending $100 in CapEx on a new machine that will allow for $10 in savings every year) ... (read entire answer)
6
Answers
2.9 k
Views
46
Total Upvotes
on Jul 30, 2021 on Jul 30, 2021
Last Activity

Cost reduction short term vs long term

business acumen
Most recent answer on Jul 30, 2021
Anonymous gave the best answer on Jul 29, 2021
Hey, I agree with Ian, you always need to consider the specific situation. I will not say during a case interview that variable cost reduction is usually a better way for short-term cost reduction. Variable costs (r ... (read entire answer)
3
Answers
567
Views
30
Total Upvotes
on Jul 30, 2021 on Jul 30, 2021
Last Activity

Absolute vs relative change

business acumen
Most recent answer on Jul 29, 2021
The best answer (on Jul 29, 2021) is from:
Agrim
Expert
BCG Dubai Project Leader | Learn to think like a Consultant | Free personalised prep plan | 6+ years in Consulting
Agrim
Expert
 gave the best answer on Jul 29, 2021
BCG Dubai Project Leader | Learn to think like a Consultant | Free personalised prep plan | 6+ years in Consulting
Absolute in this case is the $ value change (with the +/- sign included) Relative in this case is the % change in $ value (with the +/- sign included)
4
Answers
704
Views
33
Total Upvotes
on Jul 29, 2021 on Jul 29, 2021
Last Activity
1 - 20 of 37 results
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