Expert case by Luca

Espresso, Whatelse?

Unlock with Premium
13.9k
Times solved
Advanced
Difficulty
Rating

Case Prompt

Espresso Whatelse is an Italian company that produces coffee and espresso machines since 1908. It is the Italian market leader and has a strong presence overall in Europe. In 2019, Espresso Whatelse has increased its revenues but it has seen declining profit margin.
Your client wants to understand the root causes of this 2019 trend and how to increase its profit margin again.

 

Additional Information

Solution: Sample Structure

Section 1 – Case opening

Section 2 – Market price trend - Part 1

What are possible explanations for this trend?

Section 2 – Market price trend - Part 2

What was our price decrease?

Section 3 – Profit margin per product - Part 1

Section 3 – Profit margin per product - Part 2

A good candidate should be focusing now his attention on the capsules. Try to challenge him on coffee machines segment asking the following questions: 1) Could machines be the root cause of our client’s profit decrease?

Section 3 – Profit margin per product - Part 3

2) Would you suggest to shut down this segment?

Section 3 – Profit margin per product - Part 4

3) Can you think of a potential explanation for this?

Section 4 – Capsules costs analysis - Part 1

Ask for some possible reasons for these increased costs

Section 4 – Capsules costs analysis - Part 2

Ask the candidate what could be the reason of this lower efficiency

Section 5 – Final considerations

The CEO is calling and wants to hear from us what the findings of our analysis are. If the candidate asks for 30 seconds, tell him that you have to take the call in that moment.

13.9k
Times solved
Advanced
Difficulty
Do you have questions on this case? Ask our community!
Your Uploaded Files This section allows you to upload your own notes or case structure for this case. The uploaded files are only visible to you.