Retirement homes

Unlock with Premium
Style:
Candidate-led (usual style)
Topics:
Profitability analysis
Rating:
4.5 (700+ ratings)
Rate this case
Invite partner to solve this case with
16.9k
Times solved
Intermediate
Difficulty
Rating

Problem Definition

Your client is a 5-year-old company that operates retirement homes (where elderly people can receive appropriate care) in Germany.

A few months ago, they opened a new home in Munich. They are concerned about its profitability. How would you help the client?

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

Why aren't investment costs included in fixed cost in a form of amortization or depreciation costs

Retirement homes
Most recent answer on Sep 19, 2019
The best answer (on Sep 19, 2019) is from:
Andrea
Expert
OW | HEC Paris | Helped 20+ people entering BCG, OW, ATK etc.
Andrea
Expert
 gave the best answer on Sep 19, 2019
OW | HEC Paris | Helped 20+ people entering BCG, OW, ATK etc.
Hi, that would be an accounting view (investment going to the BS and then depreciating in the IS). But when you look at NPVs you just look at cash outlays, e.g. investment in Year0 and fixed + variable cost in year 1,2 ... (read entire answer)
2
Answers
748
Views
4
Total Upvotes
on Sep 19, 2019
Last Activity
Question on the case: Retirement homes

Questions on a profitability case "retirement homes"

Retirement homes
Most recent answer on Feb 26, 2020
The best answer (on Feb 26, 2020) is from:
Luca
Expert
Content Creator
BCG |NASA |20+ interviews with 100% success rate| 120+ students coached |GMAT expert 780/800 score
Luca
Expert
Content Creator
 gave the best answer on Feb 26, 2020
BCG |NASA |20+ interviews with 100% success rate| 120+ students coached |GMAT expert 780/800 score
Hello, I will try to address your questions: The text says that "cost side is more important" just because with the first exhibit you can see that revenues per apartment are much higher in Munichthan in Berlin. Th ... (read entire answer)
1
Answer
524
Views
2
Total Upvotes
on Feb 26, 2020
Last Activity
Related BootCamp article(s)
BootCamp

Profitability Case

Learn profitability frameworks and how to solve profitability consulting cases - the most frequently used case types during consulting case interviews.

1 related question Quiz
16.9k
Times solved
Intermediate
Difficulty
Do you have questions on this case? Ask our community!
Ask a question

Exhibits

Diagram 1

Table 1

Table 5

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