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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

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

Initial structure a profitability case

profitability analysis Structure
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, In my view, the most important thing here is to understand the purpose of a structure: Structuring a case does NOT mean to tell the interviewer what you're going to look at! This is not a structure - it's just a buc ... (read entire answer)
10
Answers
3.1 k
Views
72
Total Upvotes
on Oct 26, 2023 on Oct 26, 2023
Last Activity

How can I analyze profitability cases in an outstanding way?

Cases 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!  Alright... This will take some again. ^^ Given the underying premises of your question, and the many inaccuracies that have been spread by “case preparation books” over the last decade, I need to explain a couple o ... (read entire answer)
6
Answers
1.7 k
Views
77
Total Upvotes
on Oct 26, 2023 on Oct 26, 2023
Last Activity

How to structure and identify the root cause of a drop in sales volume?

profitability analysis
Most recent answer on Aug 20, 2023
The best answer (on Aug 17, 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 Aug 17, 2023
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
Hi! Frankly: starting with generic “buckets” of reasons like internal/external is not very good. What is extremely important to understand in order to craft super strong structures: the purpose of a structure is not to ... (read entire answer)
7
Answers
708
Views
20
Total Upvotes
on Aug 20, 2023 on Aug 20, 2023
Last Activity

Framework for brainstorming ideas for cutting department costs (IT and Marketing)

cost structure costs profitability analysis
Most recent answer on Aug 08, 2023
The best answer (on Aug 05, 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 05, 2023
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi Emma, Wherever possible try to avoid fixed and variable costs - interviewers want to shoot themselves when they hear this! Option 1: People IT/Tech/Systems NOT Process (doesn't apply here…it's linked with systems) == ... (read entire answer)
4
Answers
456
Views
25
Total Upvotes
on Aug 08, 2023 on Aug 08, 2023
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

Quant skills

Case Calculations Case Interview Interview Math problem McKinsey prep preparation profitability analysis Quantitative skills
Most recent answer on Jun 22, 2022
The best answer (on Sep 03, 2017) is from:
Francesco
Expert
#1 Coach for Sessions (4.000+) | 1.500+ 5-Star Reviews | Proven Success (➡ InterviewOffers.com) | Ex BCG | 10Y+ Coaching
Francesco
Expert
gave the best answer on Sep 03, 2017
#1 Coach for Sessions (4.000+) | 1.500+ 5-Star Reviews | Proven Success (➡ InterviewOffers.com) | Ex BCG | 10Y+ Coaching
Hi Moji, it seems your issue is not the math computation, but rather how to structure the math part once you receive a question (that is, the logic behind that you should apply). This means you should not work on your ... (read entire answer)
6
Answers
7.3 k
Views
69
Total Upvotes
on Jun 22, 2022 on Jun 22, 2022
Last Activity

What is the difference between profit and profitability

profitability profitability analysis
Most recent answer on Jun 22, 2022
The best answer (on Mar 13, 2018) 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 Mar 13, 2018
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
As highlighted several times, absolute profits are clearly defined as Revenues - Cost. Profitability however, even though always expressed as a ratio/percentage, is not universally defined. It can be measured differen ... (read entire answer)
6
Answers
4.9 k
Views
39
Total Upvotes
on Jun 22, 2022 on Jun 22, 2022
Last Activity

Using customer journey to outline structure

profitability analysis stucture
Most recent answer on Jan 23, 2022
The best answer (on Jan 09, 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 Jan 09, 2022
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi Daisy, The short answer is “no”. Just because it's FMCG does not mean it should be customer journey - please stop listening to whoever told you this! If an FMCG is buying another company, why would they use a custome ... (read entire answer)
6
Answers
901
Views
39
Total Upvotes
on Jan 23, 2022 on Jan 23, 2022
Last Activity

How to do root cause analysis in profitability case efficiently?

profitability analysis
Most recent answer on Oct 11, 2021
The best answer (on Oct 11, 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 Oct 11, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, First of all, you need to read as much into the prompt hints as possible. You also need to ask strong clarifying questions that help you understand the lay of the land. From there, as you drive the case forwar ... (read entire answer)
2
Answers
705
Views
18
Total Upvotes
on Oct 11, 2021 on Oct 11, 2021
Last Activity

How to structure Profitability Cases?

BCG consulting First Round improving profitability profitability analysis
Most recent answer on Oct 03, 2021
The best answer (on Oct 01, 2021) is from:
Pedro
Expert
Bain | EY-Parthenon | Roland Berger | Market Sizing | 30% off in March 2024
Pedro
Expert
gave the best answer on Oct 01, 2021
Bain | EY-Parthenon | Roland Berger | Market Sizing | 30% off in March 2024
Let me answer specifically the question of clarification questions.In general, clarification questions are there to make sure you fully understood any technical terms in the prompt, the business model, the context and a ... (read entire answer)
2
Answers
1.3 k
Views
27
Total Upvotes
on Oct 03, 2021 on Oct 03, 2021
Last Activity

How to know when to use (fixed & variable cost) vs. (direct & indirect cost)?

fixed costs profitability profitability analysis variable costs
Most recent answer on Jul 31, 2021
The best answer (on Jul 30, 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 Jul 30, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, Ultimately, it depends on the case. Moreover, I personally actually don't like either..."I'd like to segment by FC and VC" and "I'd like to segment by direct and indirect costs" is just incredibly generic an ... (read entire answer)
2
Answers
869
Views
17
Total Upvotes
on Jul 31, 2021 on Jul 31, 2021
Last Activity

Thoughts on Starting Profitability Case with Economy & Industry

profitability analysis
Most recent answer on Mar 01, 2021
The best answer (on Feb 28, 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 28, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, Honestly, it depends. Any answer otherwise is too simplistic. You need to understand the industry + company context from the prompt itself to figure this out...cases and case types cannot be memorized...yo ... (read entire answer)
6
Answers
745
Views
74
Total Upvotes
on Mar 01, 2021 on Mar 01, 2021
Last Activity

Versatile Revenue Improvement Ideas

profitability analysis
Most recent answer on Mar 01, 2021
The best answer (on Feb 28, 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 28, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, Remember, you need to apply your revenue improvement ideas to the specific case at hand. You cannot be generic. That said, some major ways companies boost sales include: SAAS (software as a service) ... (read entire answer)
5
Answers
806
Views
62
Total Upvotes
on Mar 01, 2021 on Mar 01, 2021
Last Activity

Profitability case - revenue and cost analysis

profitability analysis
Most recent answer on Dec 31, 2020
The best answer (on Feb 29, 2020) is from:
Luca
Expert
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached
Luca
Expert
gave the best answer on Feb 29, 2020
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached
Hello, Finding a potential cause in costs or revenues can not exclude a problem also on the other side of the framework. The best approach is to drill down the part that seems to be the root cause and then to quickly ... (read entire answer)
4
Answers
1.5 k
Views
1
Total Upvotes
on Dec 31, 2020 on Dec 31, 2020
Last Activity

Good way for in-depth analysis of profitability cases?

approaching a case profitability analysis Structure
Most recent answer on Oct 09, 2020
The best answer (on Oct 01, 2020) 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 Oct 01, 2020
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
Hi Anonymous! Alright... This will take a bit. I feel I have to explain a couple of absolutetely crucial points here. In fact, your described initial approach corresponds to what is outlined in the usual case prep ... (read entire answer)
3
Answers
1.2 k
Views
21
Total Upvotes
on Oct 09, 2020 on Oct 09, 2020
Last Activity

How to Structure and Choose Framework for Profitability Case

Case Interview Case structure and frameworks Framework profitability profitability analysis Profitability Case Cost Structure
Most recent answer on Aug 18, 2020
The best answer (on Apr 18, 2019) 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 Apr 18, 2019
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi, Given this is your first day, I'm going to take a step back and answer the question you're really asking: How do I use frameworks in a case? If there's anything to remember in this process, is that cases don't e ... (read entire answer)
4
Answers
2.4 k
Views
13
Total Upvotes
on Aug 18, 2020 on Aug 18, 2020
Last Activity

Profitability case framework approach

approaching a case Framework profitability analysis
Most recent answer on Aug 18, 2020
Anonymous gave the best answer on May 08, 2017
Hi Anonymous! Both are valid approaches. As a rule of thumb, 1) is more suitable for a quantitative assessment (e.g. "By how much has profit declined?"), while 2) seems like a good approach for a qualitative question ... (read entire answer)
3
Answers
6.7 k
Views
8
Total Upvotes
on Aug 18, 2020 on Aug 18, 2020
Last Activity
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