Example of an excellent answer (score: 2)
The candidate should:
- Recap the objective
- Provide an answer-first approach to the question asked
- Mention risks and the next steps to take
RECAP OF THE OBJECTIVE
“Our client asked us to help assess whether they should enter the online grocery deliveries market.”
ANSWER-FIRST APPROACH TO THE QUESTION
“Based on our initial analyses, our preliminary recommendation is that they should not enter. This is because the venture will only generate $4M in profit in Year 1, which is 20% lower than the target of $5M"
RISKS AND NEXT STEPS
“Furthermore, there are some key risks associated with such a move, the main ones being:
- The assumption of a 20% market share in Year 1 might not be realistic given that we would be starting from scratch
- We have no prior knowledge/know-how on operating a delivery business and would need to build up the necessary capabilities
That being said, there is potential to make this financially feasible. Hence, we would like to analyze additional elements before making a final recommendation, such as:
- Exploring some of the profit improvement ideas such as recommendation algorithms, recurring orders, and passing on delivery fees in more depth
- Double check the numbers underlying our business case (especially on expected market share)
- Conducting a more rigorous risk analysis and coming up with mitigation strategies for the identified risks”
Suggested score
An excellent candidate should:
- Recap the objective of the case
- Recommend not to enter the market unless additional profits are identified as the goal would not be met otherwise
- Mention possible risks and propose next steps related to the original structure and/or to implement the suggested approach
Recommended score calculation: starting from 2, decrease the score by 0.5 points down to 0 for any of the following:
- The candidate did not have an answer-first approach
- The candidate presented the conclusion in a disorganized way
- The candidate did not provide reasons why the client should not go ahead with the online groceries venture
- The candidate did not conclude the recommendation proactively, mentioning the next steps
To keep a structured approach in assessing the performance of the candidate, it is recommended that the interviewer use a scoring system to evaluate the 5 parts of the case presented below. This will help the interviewee to understand their level of readiness for the actual interview.
A possible grading system for each part is the following:
A possible evaluation grid is the following:
You can adapt the grading system and evaluation grid according to your specific needs.
The text presents the questions to ask, the proposed optimal answer and the suggestions for scoring a candidate’s performance in each area.