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Expert with best answer

Ian

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2

Why calculate two scenarios?

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

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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Book a coaching with Ian

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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?

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?

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? — Anonymous A on Apr 11, 2021

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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

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

Hi Clara, Thanks for your comment. Would we consider the inputs given in the case as "uncertain"? They were pretty concise... — Anonymous A on Apr 11, 2021