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Profitability framework

case structure Framework profitability
Most recent answer on Feb 29, 2024
The best answer (on Feb 10, 2024) 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 10, 2024
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Noooooooooooooooooooooo. Thank you for this Q&A, as it's SUCH a good example of what NOT to do. Every project has root-cause analysis. Every project has solutions. Every profit project has revenue/cost. So a client ... (read entire answer)
4
Answers
212
Views
37
Total Upvotes
on Feb 29, 2024 on Feb 29, 2024
Last Activity

Case Math Question

case math profitability
Most recent answer on Jan 15, 2024
The best answer (on Jan 14, 2024) is from:
Gabriele
Expert
Business Dev. @Multiversity | MBA @ Columbia | Ex-Bain & VC Investor| MSc @ MIT, BSc @ Bocconi
Gabriele
Expert
gave the best answer on Jan 14, 2024
Business Dev. @Multiversity | MBA @ Columbia | Ex-Bain & VC Investor| MSc @ MIT, BSc @ Bocconi
Sure, see below my solution to this, and happy to walk you through some tips on how to solve these kind of cases in a dedicated session together!In the case provided, we have to reason in terms of unitary revenues & ... (read entire answer)
3
Answers
209
Views
38
Total Upvotes
on Jan 15, 2024 on Jan 15, 2024
Last Activity

Hard/complex profitability structure - Help

case structure hard improving profitability issue tree issue trees margins profitability profitability analysis Structure
Question edited on Jan 13, 2024
The best answer (on Jan 11, 2024) 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 11, 2024
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Please do NOT do REVENUE - COST. That is not a framework and is super generic. I appreciate you saying  “seemed like a simple profitability case” as this is a misnomer!  Every profitability case is different and require ... (read entire answer)
5
Answers
179
Views
63
Total Upvotes
on Jan 13, 2024 on Jan 13, 2024
Last Activity

Profitability case in Insurance

Insurance Case profitability profitability analysis
Most recent answer on Dec 10, 2023
The best answer (on Dec 08, 2023) 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 Dec 08, 2023
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, Seconding the others coaches here: You are just listing words. Consultants don't list words. They think and break down a problem systematically. PLEASE read this article AND watch the live case videos in the 2 ... (read entire answer)
5
Answers
272
Views
66
Total Upvotes
on Dec 10, 2023 on Dec 10, 2023
Last Activity

What are the most appropriate frameworks for pricing cases?

Case Case Interview Framework McKinsey pricing pricing strategy profitability
Most recent answer on Nov 10, 2023
The best answer (on Jul 21, 2017) is from:
Vlad
Expert
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Vlad
Expert
gave the best answer on Jul 21, 2017
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Hi, The general framework for pricing is: Cost base - Value based - Competitor based - pricing strategy 1. Cost based - you actually check what are the costs and apply standard industry / target markup 2. Value ba ... (read entire answer)
11
Answers
38.4 k
Views
89
Total Upvotes
on Nov 10, 2023 on Nov 10, 2023
Last Activity

Frameworks for declining financials

BCG Bain McKinsey profitability Revenue analysis Structure
Most recent answer on Nov 06, 2023
The best answer (on Nov 01, 2023) 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 01, 2023
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
Hi! The purpose of a structure is to clearly explain how you will answer the precise question that has been asked by the client. The question is: "What is the cause of the revenue issue?" Structuring a case means to exp ... (read entire answer)
5
Answers
268
Views
28
Total Upvotes
on Nov 06, 2023 on Nov 06, 2023
Last Activity

Difference in the Framework from Profitability and Revenue Growth cases?

profitability revenue
Most recent answer on Oct 31, 2023
The best answer (on Sep 28, 2023) is from:
Lorenzo
Expert
University of St.Gallen graduate | Learn to think like a Consultant | Personalized prep | CV review
Lorenzo
Expert
gave the best answer on Sep 28, 2023
University of St.Gallen graduate | Learn to think like a Consultant | Personalized prep | CV review
Your structure for differentiating between Profitability and Revenue Growth cases is well-organized and covers many relevant aspects. However, you can make a few refinements and additions to ensure you have a comprehens ... (read entire answer)
8
Answers
734
Views
66
Total Upvotes
on Oct 31, 2023 on Oct 31, 2023
Last Activity

In an issue tree for profitability framework, where do you factor in questions about market etc.?

Framework issue tree market questions MECE profitability profitability analysis
Most recent answer on Oct 26, 2023
The best answer (on Jun 03, 2022) 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 Jun 03, 2022
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
Hi Kay, this is indeed one of the fundamental things that you need to learn in order to rigorously disaggregate the value drivers of a business. The driver tree allows you to identify the numerical drivers and sub-drive ... (read entire answer)
2
Answers
5.8 k
Views
31
Total Upvotes
on Oct 26, 2023 on Oct 26, 2023
Last Activity

How to ask clarifying questions on a profitability case?

profitability
Most recent answer on Oct 10, 2023
The best answer (on Sep 30, 2023) is from:
Frederic
Expert
ex Jr. Partner McKinsey |Senior Interviewer| Real Feedback & Free Homework between sessions|Harvard Coach|10+ Experience
Frederic
Expert
gave the best answer on Sep 30, 2023
ex Jr. Partner McKinsey |Senior Interviewer| Real Feedback & Free Homework between sessions|Harvard Coach|10+ Experience
Hello, It's completely understandable to want to approach a case interview with a structured and effective methodology. Let's clarify the best way to start a profitability case: Clarifying Questions: Begin by asking cla ... (read entire answer)
10
Answers
432
Views
34
Total Upvotes
on Oct 10, 2023 on Oct 10, 2023
Last Activity

Profitability case clarifying question - "company vs. industry wide issue"?

profitability
Most recent answer on Aug 21, 2023
The best answer (on Aug 21, 2023) 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 21, 2023
Top-Ranked Coach on PrepLounge for 3 years| McKinsey San Francisco | Harvard graduate | 6+ years of coaching
Hello, I think the feedback you've been given on this is pretty valid. But in general, both of these questions to me seem like questions you will go through in the case itself, rather than questions to ask at the beginn ... (read entire answer)
6
Answers
376
Views
9
Total Upvotes
on Aug 21, 2023 on Aug 21, 2023
Last Activity

Suggested structure to find the "root cause" of declining profit?

profitability
Most recent answer on Aug 09, 2023
The best answer (on Aug 09, 2023) 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 09, 2023
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, RULE 1: Never ever ever make your entire framework about root cause. If your spouse loses their job, is the only solution for your household to get their job back? Of course not! You could 1) Get their income ... (read entire answer)
4
Answers
294
Views
18
Total Upvotes
on Aug 09, 2023 on Aug 09, 2023
Last Activity

Profitability question

profitability
Most recent answer on Mar 06, 2023
The best answer (on Mar 06, 2023) is from:
Andi
Expert
BCG 1st & Final Round interviewer | Personalized prep with >95% success rate | 7yrs coaching | #1 for Experienced Hires
Andi
Expert
gave the best answer on Mar 06, 2023
BCG 1st & Final Round interviewer | Personalized prep with >95% success rate | 7yrs coaching | #1 for Experienced Hires
Hi there, yes, that's the logical inference you can draw, given Profit = Revenue - Cost. To investigate further, you can break down the cost into its key drivers (varies by company / industry) to pinpoint the problem, f ... (read entire answer)
6
Answers
454
Views
35
Total Upvotes
on Mar 06, 2023 on Mar 06, 2023
Last Activity

Market Entry/Product Launch Case Structure

Case structure and frameworks market entry profitability
Most recent answer on Sep 28, 2022
The best answer (on Sep 28, 2022) is from:
Pedro
Expert
Bain | EY-Parthenon | Roland Berger | Market Sizing | 30% off in March 2024
Pedro
Expert
gave the best answer on Sep 28, 2022
Bain | EY-Parthenon | Roland Berger | Market Sizing | 30% off in March 2024
First of all, congratulations. Only a few people structure the first option like you did (around questions you want to answer) and that is definitely a superior way to approach a strategy problem. Second, I am strugglin ... (read entire answer)
5
Answers
1.4 k
Views
35
Total Upvotes
on Sep 28, 2022 on Sep 28, 2022
Last Activity

How to write a MECE issue tree for profitability? - covering all relevant components

Case Interview issue tree MECE profitability
Most recent answer on Aug 31, 2022
The best answer (on Jan 05, 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 05, 2019
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
Hi Anonymous, this is indeed one of the fundamental things that you need to learn in order to rigorously disaggregate the value drivers of a business. The driver tree allows you to identify the numerical drivers and s ... (read entire answer)
3
Answers
5.2 k
Views
7
Total Upvotes
on Aug 31, 2022 on Aug 31, 2022
Last Activity

Profitability Case - Analysis of market and some company aspects before profitability issue tree?

growth strategy profitability
Most recent answer on Aug 30, 2022
The best answer (on Aug 22, 2022) 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 22, 2022
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, I'm sorry but you're not quite MECE (though off to a good start).  When you have a profitability bucket, that implies that you can't look at profitability at all in your other buckets! GENERAL PROFITABILITY AP ... (read entire answer)
5
Answers
1.1 k
Views
60
Total Upvotes
on Aug 30, 2022 on Aug 30, 2022
Last Activity

Objective = Generate more money

costs profitability Revenue analysis
Question edited on Aug 28, 2022
The best answer (on Aug 28, 2022) 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 28, 2022
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
Hi! I believe you confuse the objective with the case question! "Investing 5m $ in his business" is not the objective! It is most probably the starting point of the question (e.g., "Should our client invest the 5m $ in ... (read entire answer)
3
Answers
1.0 k
Views
53
Total Upvotes
on Aug 28, 2022 on Aug 28, 2022
Last Activity

How to structure & present the "root cause analysis" bucket in a profitability case?

profitability
Question edited on Aug 28, 2022
The best answer (on Aug 28, 2022) 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 28, 2022
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
Hi! What is extremely important to understand in order to craft super strong structures: the purpose of a structure is not to provide a list of things you want to look at. The purpose of a structrue is to clearly explai ... (read entire answer)
5
Answers
2.1 k
Views
69
Total Upvotes
on Aug 28, 2022 on Aug 28, 2022
Last Activity

Can anyone explain the reasoning behind this case on Non-profit, Higher-Ed?

financial analysis non profit non-profit world profitability university
Most recent answer on Aug 10, 2022
The best answer (on Aug 10, 2022) 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 10, 2022
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
This is where coaching would serve you well!
1
Answer
585
Views
4
Total Upvotes
on Aug 10, 2022 on Aug 10, 2022
Last Activity

Profitability cases - framework order

profitability profitability analysis
Most recent answer on Jul 20, 2022
The best answer (on Jul 19, 2022) 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 Jul 19, 2022
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Oh boy. We need to take a step back! Make sure you're not just saying words. Frameworks can't be memorized. You have to apply them to the case! I'm going to take a step back and answer the question you're really asking: ... (read entire answer)
5
Answers
610
Views
44
Total Upvotes
on Jul 20, 2022 on Jul 20, 2022
Last Activity

Approach to increasing margin calculation

gross profit margin profitability
Most recent answer on Jul 06, 2022
The best answer (on Jul 05, 2022) is from:
Moritz
Expert
ex-McKinsey EM & Interviewer | 7/8 offer rate for 4+ sessions | 90min sessions with FREE exercises & videos
Moritz
Expert
gave the best answer on Jul 05, 2022
ex-McKinsey EM & Interviewer | 7/8 offer rate for 4+ sessions | 90min sessions with FREE exercises & videos
The answer is ~91.8%, corresponding to ~1.8% margin increase. Please consider the following, where r is revenue, c is cost, and x is the new margin: Current: (r - c) / r = 90% → (100 - 10) / 100 = 90% Proposed: (r*1.1 - ... (read entire answer)
3
Answers
801
Views
13
Total Upvotes
on Jul 06, 2022 on Jul 06, 2022
Last Activity
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