Why calculate two scenarios?

CTcon Case: Das beste Eis der Stadt!
New answer on Apr 09, 2021
2 Answers
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Anonymous A asked on Apr 07, 2021

Hi there,

since the question is about "additional profit", why would an excellent candidate calculate 2 scenarios? Isn't it enough to calculate the addl. profit via addl. revenue taking into account 40% "shared customers" --> therefore 60/120 addl. scoops per day?

I get to the same result just faster.

Thanks and regards

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Ian
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replied on Apr 07, 2021
MBB | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep

Hi there,

While the case is in German and I can't speak to the case itself, generally, yes, "shortcuts" are the best route.

However, in some instances you may want to calculate the base state first. This is so as to understand magnitude of change. I.e. "Profit increase is 10M" doesn't mean much unless we know that the initial profit was 5M or 5,000M.

Make sense?

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Anonymous A on Apr 11, 2021

Hi Ian, Thanks for your comment. Well, the case specified that the client is specifically looking at x amount of additional profit. Would it not be considered "boiling the ocean" doing more than the actual question?

Clara
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replied on Apr 09, 2021
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

Giving a range of solutions, particularly when there is uncertainty in the inputs, is precisely the way things are done in the real business world. Hence, this is why the case sais an "excellent" candidate may take that approach

Cheers,

Clara

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Anonymous A on Apr 11, 2021

Hi Clara, Thanks for your comment. Would we consider the inputs given in the case as "uncertain"? They were pretty concise...

Ian gave the best answer

Ian

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