General Holding

Unlock with Premium
Style:
Candidate-led (usual style)
Topics:
Market analysis , Mergers & Acquisition
Rating:
4.3 (1.6k ratings)
Rate this case
Invite partner to solve this case with
46.5k
Times solved
Intermediate
Difficulty
Rating

Problem Definition

Our client is a French holding company with annual revenues of about €1 billion.

Their portfolio consists of different companies that are mostly in manufacturing industries such as the oil & gas industry and the automotive industry.They do not have a specific investment focus. They prefer to buy the best companies available that are also related to their existing businesses.

They are thinking about acquiring an auto parts dealer, OTOpart, and want to know whether you think it is a good idea.

Do you have questions on this case? Ask our community!
Ask a question
Questions on this case
Question on the case: General Holding

Can I have some background on goals of automative industry?

General Holding
Most recent answer on Jan 15, 2020
The best answer (on Jan 14, 2020) is from:
Alessandro
CoachingPlus Expert
McKinsey & Company | McKinsey Coaching teams | INSEAD coach | 20+ candidates (100% success rate)
Alessandro
CoachingPlus Expert
 gave the best answer on Jan 14, 2020
McKinsey & Company | McKinsey Coaching teams | INSEAD coach | 20+ candidates (100% success rate)
Hi Sethu, The main player in the automotive industry are a limited number of Groups which own all the brands you may have heard of (e.g. VW, Audi, Jaguar, etc). Most of the groups use different brands to penetrate dif ... (read entire answer)
4
Answers
1.1 k
Views
1
Total Upvotes
on Jan 15, 2020 on Jan 15, 2020
Last Activity
Question on the case: General Holding

Is there a measure on returns on investment/threshold the company is looking for?

General Holding
Most recent answer on Jan 14, 2020
The best answer (on Jan 14, 2020) is from:
Clara
Expert
Content Creator
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Clara
Expert
Content Creator
 gave the best answer on Jan 14, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Hello! I would alingn that with the interviewer with a mix of questions & assumptions, so you also show proactivity. Hence, once you have clear which is the main(s) KPI(s) that you should focus on, you can advance ... (read entire answer)
2
Answers
1.0 k
Views
2
Total Upvotes
on Jan 14, 2020 on Jan 14, 2020
Last Activity
Question on the case: General Holding

are there any gaps/weaknesses of opportunities we are seeking in our existing businesses?

General Holding
Most recent answer on Jan 15, 2020
Sethu asked on Jan 14, 2020
Show all questions on this case (4)
3
Answers
925
Views
0
Total Upvotes
on Jan 15, 2020 on Jan 15, 2020
Last Activity
Related BootCamp article(s)
BootCamp

The Value Chain

The Value Chain - as e.g. by Porter - is a classic framework to structure the activities of a business and add value to products by transforming resources.

BootCamp

Competitive Response

In a competitive response case study, your job is either to analyze what your client should do in response to a move performed by a major competitor or to anticipate what competitors will do in response to a move performed by the client

1 related question
BootCamp

Cost-Benefit Analysis

Investments or single business cases need to be evaluated based on a certain set of criteria. Since financial performance is the key criterion in most cases you need to have an idea about future financial impacts. A key tool to asses this impact is the cost-benefit analysis which is used to determine the net effect of potential revenues and costs.

1 related question
BootCamp

Mergers and Acquisitions

Mergers & Acquisitions are often the answer to broader problems introduced in your Case interviews. Analyze feasibility, assets, target, and industry to crack the Merger & Acquisition case

BootCamp

Opportunity Costs

Opportunity costs are an economic concept to quantify benefits of (discarded) alternatives. They measure the lost benefits that occur if you choose the best alternative instead of the second best one.

Quiz
46.5k
Times solved
Intermediate
Difficulty
Do you have questions on this case? Ask our community!
Ask a question

Exhibits

Case Structure

Market Share

Profit Margin of Different Market

In the automotive market, profit margins are about 2%. In the auto parts market, the profit margin has been 8% for 5 years in a row.

Competitive Landscape

  • TaVoiture, the biggest auto parts player in France, has consistently increased its market share over the years. Last year, its market share was 45%
  • It has contracts with a few big car manufacturers to provide parts for their cars within the cars' warranties.
  • TaVoiture is highly profitable.
Please sign up to access our Case Library
Your first name
Your email address
Your password
Already registered? Log in here
Cookie and Privacy Settings
This website uses cookies to enable essential functions like the user login and sessions. We also use cookies and third-party tools to improve your surfing experience on preplounge.com. You can choose to activate only essential cookies or all cookies. You can always change your preference in the cookie and privacy settings. This link can also be found in the footer of the site. If you need more information, please visit our privacy policy.
Data processing in the USA: By clicking on "I accept", you also consent, in accordance with article 49 paragraph 1 sentence 1 lit. GDPR, to your data being processed in the USA (by Google LLC, Facebook Inc., LinkedIn Inc., Stripe, Paypal).
Manage settings individually
I accept