IIT-M CASE BOOK
49 INDUSTRY STANDARD INTERVIEW TRANSCRIPTS TO HELP
YOU ACE YOUR NEXT CASE
THE FIRST ENGINEERING UNDERGRADUATE CASEBOOK
WITH CASES FROM TOP CONSULTING FIRMS
ISSUE DETAILS
All rights reserved by Case Club, IIT Madras.
ISBN : In Progress
First Published : June 2022 (Version 1)
No attempts can and should be made to transmit the information, store, retrieve and copy any part of the book by any
means (digital, mechanical, electronic, photocopying, recording or otherwise) prior to the permission of the authors.
DISCLAIMER
→ The cases collected in the book are purely based on memory of candidates 20 days post their interviews. Hence
certain discontinuities / derailment can be expected from the actual interview.
→ In order to maintain a continuous flow of conversation in the multiple cases, certain parts have been modified with
respect to the actual cases we collected. The said action was also taken at certain places to ensure a steep learning
curve for the reader.
→ For the above reasons, the cases are not to be taken as a word-by-word transcript of the interview but rather a
resource to get an idea of type of cases and difficulty level an engineering undergraduate can expect in their placement
interviews for management consulting profiles.
PREFACE
This book has been prepared by the Case Club, IIT Madras. We saw a gap in the case preparation that
students from IITs do every year. There seemed to be lack of a book that satisfies both the criteria - provides
cases at undergrad level and focuses on cases that engineers can expect. The existing resources have started
becoming irrelevant as consult firms are doing away from typical data heavy cases to more abstract and logical
cases nowadays.
This casebook happens to be the first casebook at an engineering undergrad level and IIT Madras is the first IIT
to develop this. It contains a set of 49 case interview transcripts. These cases were asked in the on-campus
placement season ‘21 conducted at IITM by top tier consulting firms including MBB, Auctus, Arthur D Little,
Accenture and Dalberg. The cases are supposed to give an exact flavor to candidates for the type and difficulty
level they can expect.
The case club of IITM (including heads and associates) has put its heart and soul behind collecting, writing and
perfecting each case for the benefit of the problem solving culture, not only at IITM but across all colleges in the
country. Do go through this and try to share with anyone you feel would benefit from this.
ACKNOWLEDGEMENTS
We have received support from several people on the way and we would love to thank each one of them for all
the help they provided in return for absolutely nothing :
IITM Graduates (Incoming Consultants & PMs) :
It wouldn't have been possible without y’all giving us the cases with utmost patience that you displayed.
Haindavi Kandarpa (ME’22, BCG), Shruti Suman (ME’22, BCG), Sagarika Nath (BS’22, Bain), Sidhartha
Narayan (EP’22, Bain), Ayush Toshniwal (EE’22, McK), Saarthak Sandip Marathe (ME’22, BCG), Sari Khanam
(NA’22, Bain), Anagha Udupa (CE’22, BCG), Viknesh S (EE’22, BCG), Mansi Khandelwal (NA’22, Flipkart),
Sankalpa V (BE’22, McK), Ajmal Hussain (HS’17, McK) & Srijan Upadhayay (NA’17, McK).
IITM Administration :
We would like to thank Prof. Ramamurthy K, Chairman, Library Advisory Committee 2021-22 for all the support
provided. A special mention needs to be given to the Academic Affairs Secretaries - Sidhartha Narayan S
(2021-22) and Ramkamal T B (2022-23) for the help and more importantly the faith shown in a new club for this
major responsibility.
SRCC, CIC and Day 1.0 :
We would like to thank the authors of above mentioned casebooks to develop the amazing casebooks which
motivated us to go ahead and build one of our own for engineering undergraduates. The clarity in their
casebooks really helped us take some major decisions about how should we go ahead and write the cases.
GUIDE TO USE THE BOOK
→ Form a case group among your friends. Read the relevant theory before each section.
→ Practice the cases in your group. The interviewer needs to keep an open mind - grill when interviewee is making
absurd assumptions, help when they’re off track and most importantly be open to new approaches.
→ Have a positive feedback session post the case. Do not hesitate in sharing negative feedback. Help each other
improve, it’s your responsibility!
→ It’s a casebook. It’s intended to look perfect. The actual interviews however are full of hiccups, unusual
conversations & the interviewer constantly trying to keep candidate on track. Don’t get thrown away if your solution does
not follow the flow in the cases here. Rather have confidence in your approach and reinforce positive learnings from here
in your own case solving.
ABOUT CASE CLUB, IIT MADRAS
Case Club, IIT Madras was started in 2021 with an aim to improve the problem solving culture in IITM. The founders
realised that problem solving and structured thought process are tools not just relevant to Consult but rather to every
industry. In fact it’s an efficient skill to solve any problem one faces in life.
With excellent initiatives executed just within its 1 year of existence - Consult 101, Guesstimate series, Product and
Consult Casebooks, Case Club has received a lot of traction and appreciation and is full geared up with its brand new set
of activities which are even more fun and engaging for the students. Stay Tuned!
A NOTE FROM INCOMING CONSULTANTS
TO THE FUTURE ONES
After an intense case prep for 3 months last year, I wish to share my learnings in the form of tips and tricks. Do try to adapt
these in your preparation as well, modify them and pass to your juniors!
→ A case interview is a collaborative effort. The sooner you adapt this in your practice, the better it is. You need to understand that you
and the interviewer solve the case together. It’s not a typical Q&A interview format but rather a test by the consultant to see if he/she
can work with you. That includes both your personality and problem solving abilities. It’s your responsibility to engage the interviewer
and ASK FOR HELP as and when required.
→ More than case solving, it’s about confidence and communication. Everyone has access to all the cases, most of them prepare more
or less with equal intensity and have similar case solving abilities. (Obviously some are better than others but the difference isn’t a stark
one). The real difference is created by one’s confident approach and the way they communicate it with conviction. The actual interview
cases are actually not that hard, but the interviewer does try to put you off track by asking questions in the middle to check if you’re
doing things mechanically or with logic. Someone confident about their preparation would be in a best position to dodge these
bouncers and hence that means ultimate goal of case prep is to enhance your confidence. Do whatever it takes to not let your
confidence fall! (Everyone has their own tricks).
→ There is no such thing as a perfect case! No matter what, there is a good chance you will miss something, especially on D-Day. Don’t
fret about it too much. They key is to stay calm and convey whatever you know in a confident way and with some help from the opposite
side. Revising old cases by writing them from scratch was my personal trick to track my progress and feel good about myself :) (Reason
behind my confidence).
→ Don’t learn the cases or frameworks. That leads to overfitting. Stick to logic and common sense. That being said, try maximizing your
learning from every case by thinking multiple approaches. This helps open up your mind and also with pattern recognition. Remember,
it’s not about number of cases but rather how much you learn from every case. Practice till you feel CONFIDENT!
Aayush Raj (Incoming @ Bain, Founder @ Case Club, IIT Madras)
After wrapping a fun and competitive placements process, there were some important learnings, that I wish to summarise
and pass along to everyone. I hope these tips benefit you as they did to me! All the best!
→ Consult interviews evoke diverse feelings in people from nervous breakdowns to blissful highs. I think the most underrated thing
about them is the importance of just trying to connect with another person. Your body language and your smile are just as important as
your words and judgement. So, remember that at the end of the day that the person on the other end is trying to look for a colleague
they can have a productive and memorable chat with and you can be that person! :)
→ Pick a case group that will support you through the roller coaster of emotions, that is, consulting interviews. Find people who can
point out your mistakes and unequivocally support you in the same breath. Stick with them and help improve each other's progress and
build confidence. Practice with people and seniors outside your group, but have a designated case group to discuss and share case
experiences and learnings.
→ Perfection is overrated, and imperfectly memorable cases are in. My best cases were not the ones where I could not find scope for
improvement in structure or communication but rather the ones that sparked constructive discussions and captured the interviewer’s
attention.
→ Day 1 is a formative experience. Appreciate the little bit of luck you need to have a successful interview even at the end of your
rigorous case prep. Steady your nerves and have a sounding board (friend/senior/family) who will shoulder some of your more trivial
concerns, such as interview slotting.
Haindavi Kandarpa (Incoming @ BCG)
MEET THE AUTHORS
Anirudh Kulkarni, Associate
Shoaib Mustaque, Associate
Revati Sawant, Associate
Ujjwal Singh, Associate
Aayush Raj, Incoming AC @Bain & Co.
Founder/Head
Janisha B L, Associate
Siddharth Sharma, Associate
Aditya Raj, Associate
Haindavi Kandarpa
Incoming Associate @BCG
Rohan Ghanty, Incoming Analyst @ABInBev
Co-Founder/Head
PAGE NUMBERS SAME AS PDF PAGES :)
TABLE OF CONTENTS
S.NO
NAME
DIFFICULTY
COMPANY
A.
PROFITABILITY
1
JUST BOMBAY THINGS
EASY
ACCENTURE
15
2
EASY MONEY
EASY
BCG
17
3
HOSPITAL SAYS SOS
EASY
BCG
19
4
SKI IS PINK
EASY
ACCENTURE
21
5
PRAISE THE LORD
EASY
BAIN
24
6
VISTARA
EASY
BAIN
26
7
YEH DEEWAR TUTATI KYUN NAHI
EASY
BAIN
29
8
THE AIRPORT TEST
MODERATE
BAIN
32
9
ANTI PROFIT MACHINE
MODERATE
MCKINSEY
35
10
BOOM BOOM BOOMER
MODERATE
BAIN
37
11
BULLSHEET CASE
MODERATE
BAIN
39
12
AN APPLE A DAY KEEPS THE DOCTOR AWAY
MODERATE
BCG
41
13
BLACK GOLD
MODERATE
MCKINSEY
44
14
MAJOR RESPONSIBILITY
MODERATE
MCKINSEY
46
15
BIG SCREEN ISSUES
MODERATE
BAIN
48
16
I AM IRON MAN
DIFFICULT
BCG
50
PAGE
13
PAGE NUMBERS SAME AS PDF PAGES :)
TABLE OF CONTENTS
S.NO
NAME
DIFFICULTY
COMPANY
B.
MARKET ENTRY
1
BOB THE BUILDER
EASY
BAIN
54
2
HEALTHY AND JUICY
MODERATE
BCG
56
3
INSTASPACE
MODERATE
BCG
58
4
A+ ON BLOOD TEST
DIFFICULT
BCG
60
5
SHARK TANK
DIFFICULT
MCKINSEY
63
C.
GROWTH
1
GET THE POPCORN
EASY
BCG
69
2
SAME BLOOD DIFFERENT GROWTH
EASY
MCKINSEY
71
3
HAND TOOLS MANUFACTURE
MODERATE
ARTHUR D LITTLE
73
4
DODGING THE BOUNCER
MODERATE
BCG
75
5
HAMMER JOINT
MODERATE
MCKINSEY
77
D.
UNCONVENTIONAL
1
SPICEJET IS ALWAYS LATE
EASY
ARTHUR D LITTLE
81
2
DEI EFFORTS
EASY
MCKINSEY
83
3
COVID 2.0
EASY
MCKINSEY
86
4
A BUMPY RIDE
EASY
BCG
88
5
PE CARES ABOUT HEALTH?
MODERATE
BAIN
90
6
SINGHAM OVERTIMING
MODERATE
MCKINSEY
93
PAGE
52
67
79
PAGE NUMBERS SAME AS PDF PAGES :)
TABLE OF CONTENTS
S.NO
NAME
DIFFICULTY
COMPANY
PAGE
7
THE MUSK ISSUE
MODERATE
BAIN
96
8
MAD ABOUT ART
MODERATE
MCKINSEY
99
9
BATTLE OF WATERLOO
MODERATE
BAIN
101
10
MILKY WAY
MODERATE
AUCTUS
104
11
SHOULD I BE FASTER
MODERATE
BCG
106
12
DORAEMON’S NEW GADGET
MODERATE
BCG
108
13
HABIBI COME TO DUBAI!
MODERATE
ACCENTURE
111
14
ARE FOUR REALLY FANTASTIC?
DIFFICULT
BCG
113
15
WILL TESLA SUCCEED?
DIFFICULT
ARTHUR D LITTLE
116
E.
GUESSTIMATES
1
I WANNA GO ABROAD
EASY
AUCTUS
120
2
BILL THE BOOK
MODERATE
BAIN
122
3
HEALTH INDUSTRY IS WEALTH INDUSTRY
MODERATE
BCG
124
4
PLANES
DIFFICULT
MCKINSEY
127
F.
SPECIAL
1
DRINK N GAMBLE
MODERATE
AUCTUS
131
2
ANTI STONKS
DIFFICULT
MCKINSEY
136
3
I AM VENGEANCE
DIFFICULT
DALBERG
139
4
HOTS @ MALAYSIA
DIFFICULT
DALBERG
142
118
129
PROFITABILITY
TIPS & TRICKS
We recommend going through the framework of profitability once to help you with the first few cases. But DO NOT
MEMORIZE. The ultimate goal should be to create your own framework that can handle all (or rather a wide variety of) root
causes. Keep in mind, this is a continuous process. Your framework will and should change with every case as per the
learning in that case until you reach a point where you feel confident that your framework can handle 80-90% of cases
thrown at you irrespective of anything. (It’s impossible to reach 100, yes impossible!).
We found CIC book to be a good source of theory to read from. But if you find reading theory boring, fret not! Case Club
IITM created a comprehensive video on profitability (as part of their annual course - Consult 101) where a couple of
consultants from Bain decode the framework and solve 2 cases live! Go through the video before your practice.
CLICK ON IMAGE FOR THE VIDEO
(YouTube Channel : Case Club IITM)
JUST BOMBAY THINGS
COMPANY
Hi. Your client is a retail bank that has seen a decline in profits. Help them figure out why and give recommendations.
Sure. I just have a few questions. I’d like to understand the quantum of the issue. How much has the decline been and since when?
Profits have gone down by 20% in the last 3 quarters.
Where is our client located and has the issue with one particular city or branch? Should I factor in covid?
ROUND
Let’s discount covid from this discussion. Our client is located pan-India but issue has been with Andheri branch in Mumbai.
Is the issue only for our client or have other banks in Andheri reported a similar issue?
MANAGER
The issue is restricted to our client. You can start the case now.
Sure, Profits are a function of revenue and costs. Could you tell me which side does the issue lie on?
The revenues have actually seen a slight increase. But the costs seem to have increased at a higher pace.
TYPE
PROFITABILITY
DIFFICULTY
EASY
Alright. I’d like to list down various costs associated with a bank and then see which ones affect a particular branch.
→ Marketing (Awareness) : This is not specific to any branch unless the andheri branch is new and needs publicity.
→ Online services : The website/app any other service, in general, is not restricted to any particular branch.
→ Branch costs : Infra + Staff + Equipments + Operations.
→ Products : Interest paid on deposits + Defaulter rate + any other costs related to other financial products offered.
I’d like to know if I missed out on any major bucket.
No, I think you listed all the major costs. The issue has been that more # of customers are visiting the branch now. Could you
think of costs associated with that?
Sure. Could I first understand what has led to increase in customers coming in?
JUST BOMBAY THINGS
COMPANY
Our recent marketing campaign worked well for us and that has led to increase in customers opting for our services.
Great, then this must be the reason behind our increased revenues too. I’d go through a brief customer journey of a customer after he
enters the branch to identify various associated costs :
→ Enters : Parking space that we rent out to provide to our customers.
→ Resource utilization : Space to accommodate + services provided (executives + snacks + AC etc..)
→ Work : Paperwork + processing costs
ROUND
MANAGER
TYPE
PROFITABILITY
That’s a good split of costs. The issue as correctly identified by you has been with space. We have to rent out extra space to
accommodate these additional customers as our current infrastructure is not sufficient nor expandable. Could you provide
some recommendations now?
Sure, I’d like to split my recommendations into 2 parts :
→ Still want customers to visit the branch :
→ Increase working hours (absolute hours or cut breaks)
→ Slotting system where customers are given specific date and time slots to visit the branch to ensure optimal accommodation.
→ Don’t want customers to visit :
→ Shift major part of the process to online mode.
→ Introduce doorstep verification and form filling steps.
These are nice recommendations, we can close the case now. Could you quickly synthesize the case for us?
“Our client has seen a 20% decline in profits in last 3 months due to too many customers walking in and they having to rent out extra
space for accommodation. My recommendation would be to increase working hours or have a slotting system if we still want customers to
visit or introduce online or doorestel verification system if we don’t want the customers to visit the branch.”
DIFFICULTY
EASY
Great. Thank you.
EASY MONEY
COMPANY
Hello! Why don’t we start the interview with a growth case. Your client is a retail bank who is unhappy with the profitability of its
ATM network. Identify why and give recommendations.
Okay. I would like to start off by getting to know more about the bank. Can I know what the client’s market position is, and what is the size
of its market network.
Sure. The client is one of the premium retail banks, such as ICICI Bank. It has around 9,000 to 10,000 ATMs all over the country.
ROUND
Got it. Is there a specific time period during which the profitability has gone down? And should I account for the COVID pandemic?
There is no specific time period during which the profitability has gone down. You can ignore the pandemic.
PRINCIPAL
Okay, I will define profits as:
Profits = Revenue - Costs
Are there any trends regarding revenue and costs that the bank is noticing?
The revenue is going down and costs are increasing at the same time.
TYPE
PROFITABILITY
PROFITABILITY
I will first look at the revenue. Revenue can be defined as:
Revenue = No. of ATMs x No. of transactions per ATM in a day x Avg value per transaction
Can I get an idea of how much revenue the bank earns per transaction?
The bank earns Rs. 15 for each financial transaction and Rs. 5 for each non-financial transaction
DIFFICULTY
EASY
Got it, so the revenue becomes 15 x % of financial transactions + 5 x % of non-financial transactions.
Have the financial transactions gone down considerably or the non financial transactions?
The non-financial transactions have gone down considerably, even below the break point.
Okay, and has this decrease been specific to a particular region or a city tier?
EASY MONEY
COMPANY
The decrease has been even across city tiers. But it has been major in remote ATM locations with less visibility.
Okay, I will try to imagine the user journey then.
User journey : Reach ATM -> go to machine → insert card → enter pin → choose transaction -> take the card out at the end
I’ll try to imagine the difficulties that come up.
For financial, it could be: withdrawal of cash, cash unavailability, ATMs being out of service
For non-financial, it could be: customers don't want to go to ATM for such transactions due to availability of UPI and other options
ROUND
PRINCIPAL
Great. For financial services, ATM services can be easy fix then. Can you try to calculate the revenue and costs per ATM now.
Sure, sir. In my opinion, I think around 80 transactions occur in an ATM per day. 30% can be financial, giving a revenue of Rs. 32,000.
The costs can be in:
●
Rent and infrastructure : 10k per month
●
Utilities, electricity
●
Maintenance and repair of machine
●
Variable costs associated with acquiring cash
●
Security guards
TYPE
Machine repair is outsourced, so don’t worry about that. You can take machine cost as Rs. 4,00,000 which lasts 8 years.
PROFITABILITY
DIFFICULTY
EASY
Okay, so machine cost comes to around Rs. 4,000 per month. 3 security guard shifts will take around Rs. 9,000 per month. So Rs. 27,000
goes into security. All other costs will come to around Rs. 10,000 per month.
Therefore, total costs per month come to Rs. 51,000.
We see that costs > revenue, therefore the ATM is making losses.
Nice. So what would your final recommendation be then?
My recommendation would be to get rid of the security guards that take Rs. 27,000 per month and install surveillance cameras to save
costs associated with utilities and energy.
Great recommendation. We can close the case now.
HOSPITAL SAYS SOS
COMPANY
Hey, let’s start with a case. So our client is a multispeciality hospital located in Delhi, it is facing decline in profits. Please find
out why is this happening and give us some recommendations to solve the problem
Okay, I would like to ask some preliminary questions to understand the situation better. What is the timeline of decrease in profits?
Profits are decreasing since the last 3 months
I understand. Also how much decline has our client seen. Also is this a COVID scenario?
ROUND
JUNIOR BUDDY
Our client has seen medium decline. Also this is not a COVID scenario
Okay, I have sufficient information to solve this case.
So profits are a function of revenues and costs. Since profits are decreasing, it means either revenues are decreasing or costs are
increasing, May I know what is the situation here?
Our client’s revenues are decreasing
TYPE
Is the decrease in revenues limited to one particular section of hospital, or is the decrease reflected in all sections?
Why don’t you list the major sources of revenue for a hospital?
PROFITABILITY
DIFFICULTY
EASY
Okay. So some of the major sources of revenue for a hospital can be
1.
Outpatient Department
2.
Pharmacy
3.
General tests like blood test, X-rays CT scan etc.
4.
Revenue from admitted patients
Have any of these departments seen a decline in revenue?
Yes, pharmacy section has seen a decline in revenue. Rest departments’ revenues are mostly same
Alright. So revenue from pharmacy can be formulated as product of number of customers and average revenue per customer. Have any of
these factors changed in the last 3 months?
HOSPITAL SAYS SOS
COMPANY
Number of customers visiting our client’s pharmacy has reduced
So number of people visiting pharmacy is a product of number of people visiting the hospital and % of those people who go to pharmacy.
Have any of these factors changed?
Number of patients visiting the hospital is mostly the same. So this means % of patients visiting the pharmacy has reduced
ROUND
JUNIOR BUDDY
TYPE
PROFITABILITY
DIFFICULTY
EASY
Interesting! On analysing the journey of a patient in the hospital, following points of inefficiency can exist
1.
Doctor doesn’t prescribe many medicines
2.
Patients are not able to locate the pharmacy in hospital
3.
Patients are reaching the pharmacy but are not able to buy their medicines.
So the location of pharmacy hasn’t changed since the last 5 years and the doctors are here since last 2 years
Therefore most likely, people are not able to buy medicines. Some of the reasons for this can be1.
Pharmacy is understaffed, so there are long lines and delays
2.
Many medicines are often out of stock, so people have to go somewhere else
3.
Medicines are in stock, but people are not able to do the transaction because of some issues
Yes, on checking the pharmacy, we found out that pharmacy only accepts cash because the card machine is broken. Since
many people don’t carry cash, they were not able to pay for medicines
Now that we know the reason, could you please give our client some recommendations to solve the problem?
Sure, so there two types of suggestionsShort term
1.
Fix the card machine immediately
2.
Use UPI payment feature at pharmacy
Long Term
1.
Make an app for the hospital, where patients can make their accounts and have complete access to prescriptions, reports
payments etc.
SKI IS PINK
COMPANY
Hey! Let’s start the interview with a case. Your client is Ski resort located in Switzerland. They are concerned about the declining
profits in the last 2-3 months. Analyse the reason for the same and isolate the problem.
Sure. Let me begin with understanding the case better. How is the decline been happening through these months? Is this situation
anytime after covid-19?
The decline has been drastic and it is not due to covid-19, it is during pre-covid time.
ROUND
Okay.Can I know what are the services offered by the resort and how many competitors occupy the market share in the swiss region?
Ski resort is the only resort that has ski, so we can focus on that alone.
SENIOR BUDDY
Oh okay, so it’s a monopoly. What type of customers hold a majority share?
Majority of the customers belong to middle class - luxury segment.
TYPE
PROFITABILITY
Ok, fine. We can begin with analysing what is the problem. Profit = Revenue - cost, the profit decline can be either due to increase in cost
or decrease in revenue.
Yes correct. Let’s focus on decrease in revenue. How can we proceed the solution now?
The decrease in revenue can be due to decrease in any revenue stream. Majorly, revenue comes from rooms, other services like
restaurant in specific and from the ski.
Let’s focus on the revenue from rooms alone.
DIFFICULTY
EASY
Yeah sure. Revenue from rooms = Number of customers x Number of nights per customer x average revenue per night
A decline in either of the three factors can cause a decline in revenue from rooms.
The number of nights per customer and the average revenue per night has more or less remained the same over the months.
SKI IS PINK
COMPANY
Sound like the decline in revenue is affected by the decrease in number of customers.
The total number of customers to the resort would be number of customers visiting Switzerland x % of them who stay in our resort.
I can say that the amount of customers preferring our resort did not get affected anytime.
Cool, so we have seen a decline in the overall number of people who visit switzerland. We can segment the customers into 3 main
classes - Business/Tourists , Age/Gender and geographical location of the customers.
ROUND
SENIOR BUDDY
Is there any specific decline observed in the number of tourists or people travelling for business purposes?
Good going. There has not been any decline in the number of either of the two.
Ok. So either the frequency/number of people belonging to a certain age or gender visiting Swiss got reduced Or the customers from a
specific location started decreasing.
TYPE
PROFITABILITY
That’s right. We can focus on the geographical aspect alone. The amount of people visiting from U.S and other north american
countries started declining.
Alright. The total number of people visiting Switzerland from these countries would be total number of people who travel from these
regions x % that visit Switzerland. The issue can be either with the people travelling or the % that visit the Swiss.
Yeah right. It's been observed that the total number of travellers from those regions is on a decrease. They are reportedly unable
to travel much outside.
DIFFICULTY
EASY
Okay . I’d like to map out the customer journey for such flier so that we can pin point out the exact reason as to why they are unable to
travel outside.
SKI IS PINK
COMPANY
The user journey goes like this :
→ Book the tickets
→ Travelling to the airport
→ Taking the flight
We can identify the possible issues in each and every step in detail.
Yes, you can go on.
ROUND
SENIOR BUDDY
Sure. Let’s start with step 1, the issues can arise in working of app or website, the number and timings of the flights to every location and
the price of tickets while booking. In step 2, there can be travelling difficulties due to change of location of airport or problems in the
operation of airport. Similarly in step 3, the major issues would be unavailability or delay in flights due to weather changes.
Could you tell me if I have listed out all the possible problems using which we can proceed further with a specific issue?
That’s a good way to look at the user journey. We find that the problem primarily lies with the price of tickets.
TYPE
PROFITABILITY
DIFFICULTY
EASY
Ok, fine. Price of a ticket comprises of 5 major divisions - Base price(decided by airline) , Tax (decided by government), Seat option and
Food/meal on flight, Any kind of insurance, Transaction fee. Increase in any of these would cause a hike in prices which makes it difficult for
the travellers.
Yeah, let’s say that the government holds a big responsibility for the hike in prices. Taxes levied on the tickets are being increased.
So what recommendations would you give to improve the situation?
Sure.
→ For the people from North America, network with major resorts across countries and try to lobby in Government to reduce taxes.
→ Otherwise increase charges in the hotel by a certain percent as we are a monopoly.
→ Conduct events like Skii fest and get celebrities, hold fun filled games and competitions , thereby increasing revenue.
That’s great. We can wrap the case now.
PRAISE THE LORD
COMPANY
Let’s start the interview with a case. Your client is a Church located in Medford, Texas. It has been observed that the number of
visitors has come down by 10-15% in the last 2 months. Identify the reason behind this issue.
BAIN & CO.
To begin with the case, I’d like to ask few preliminary questions to make the analysis easier.. What are the dynamics/operations in the
church? Is the decline in visitors been noticed on a certain day or for a certain timing? Did any new church come up in the neighbourhood?
ROUND
PARTNER
The main event in the church is an assembly on every Sunday from 8:30 am to 9:30 am. This event has seen a noticeable decline in
the number of people attending. There is no other church in the near neighbourhood of the town. I hope this information is
sufficient.
Yes. It’s precisely sufficient. I’ll start by looking at the total number of people visiting the church for this event.
Total number of people attending the event = Total number of people in Medford x % of them who believe in Jesus x
% of them who visit the church
We can look at each of these three as to where the decline has started.
Let’s say that the population of Medford has not changed over the months and the faith of people in Jesus has also been
unshaken.
TYPE
PROFITABILITY
Ohk. So the % of people who used to visit the church has come down. This can be either because they are not willing to or they are unable to
attend the event. If they are unwilling to participate then it would be because the folks have become lazy or they lack regularity.
We do not know anything about their willingness.
DIFFICULTY
EASY
Oh, then it is because the people are unable to get to the event. Let’s look at the user journey of a person who attends the event at the
church.
→ Information about the event made aware through letter/mail
→ Leaving the residence and travel
→ Reaching the church
→ Taking part in the event
PRAISE THE LORD
COMPANY
BAIN & CO.
Let’s focus on the journey and the bottlenecks where they leave their homes and travel to church.
Sure. The journey can be like this, Car → Get on the road → Parking in church. Looking at the problems that can arise in each step,
→ The vehicle( car) can be damaged and not functional.
→ There can be traffic jams or constructional activity on the road leading to blockage.
→ The parking space might not be sufficient enough for so many cars.
Is that all or the journey includes something else as well?
ROUND
PARTNER
TYPE
PROFITABILITY
Oh yeah, the journey does include the part just after they wake up. So it goes like,
Wake up → Morning activities → Breakfast → Getting ready for the event. The possible hurdles could be that
→ The alarm clock is not working or the sound is not audible enough
→ Issues like no power or water supply can interrupt with the morning activities
→ Any issue that can arise while cooking food for breakfast
→ Having desired clothes and stuffs to get ready for the event
It will be helpful if you could tell me where the issue lies so that I can proceed with the specific analysis.
Let’s focus on the breakfast time.
Ok. Do the people in Medford have breakfast at home or on their way to church on a sunday?
That’s a good question to ask. Assume that the people of Medford have breakfast in restaurant on the way to the church.
Oh okay.. If the number of restaurant has remained constant then there can be issues in the process so let’s look at the user journey:
Parking → Waiting line → Ordering → waiting for food → eating.
DIFFICULTY
EASY
I’ll take a moment to clarify that the number of restaurants has come down, many of them have shut down.
Oh cool cool. So yeah, the shutting down of restaurants forms the major reason for lowering of visitors.
Yes, great. We can conclude the case.
VISTARA
COMPANY
Hey! Let’s start the interview with a case. Your client is Vistara Airlines. Recently, their profits have dipped by 10%. They need your
help to find out why.
BAIN & CO.
Okay. I would like to start solving it by asking a few preliminary questions. May I know during what time frame have the profits dipped?
The profits have dipped by 10% during the last one year.
Got it. And is this an industry wide trend or specific to Vistara?
ROUND
This is specific to Vistara.
BUDDY
Okay, and should I consider the COVID pandemic for this case as well?
No. You can ignore the COVID pandemic.
Okay. So I will first break down profit.
Profits = Revenue - Cost
TYPE
PROFITABILITY
May I know if revenue has fallen or costs have gone up?
Let’s focus on revenues.
Alright, I see 3 revenue streams for Vistara Airlines : 1) Ticket Sales 2) F&B 3) Membership plans
Should I focus on any one segment?
Good. Let’s focus on tickets
DIFFICULTY
EASY
Ok. So:
Revenue = Number of tickets * price per ticket
Great. Try looking deeper into the number of tickets sold.
VISTARA
COMPANY
Ok.
BAIN & CO.
Number of tickets = Number of seats * Number of flights * % of occupancy
Have any of these factors seen a decrease.
Yep. Occupancy % has seen a decrease.
ROUND
BUDDY
Okay, so I will segment the flights into 3 categories:
1.
Metro to metro cities
2.
Metro to tier 2 cities
3.
Tier 2 to tier 2 cities
So the trend with these segments is that the number of tier 2 to tier 2 city flights have increased but there isn’t enough occupancy.
Also a lot of new implementation schemes have been hastily put forth in the company. So what should the company do? You can
give the answer and wrap up the case.
TYPE
The company should acquire more customers. It should do more marketing in tier 2 cities (since customers in tier 1 cities are already more
likely to board the flight). It should scale back the rushed implementation steps and build upon them slowly. Also looking at niche sectors of
customers, such as those for business travel. We can give sales in these sectors a boost by providing incentives.
PROFITABILITY
Great, that makes sense.
For membership,
DIFFICULTY
EASY
Revenue from membership = # customers x % converted to members x Annual revenue/member
We know, # customers has fallen, has there been any other issue.
We lowered the annual membership fee in a bid to attract more customers, but even that did not increase the # members
proportionately. Could you think of reasons behind this?
VISTARA
COMPANY
BAIN & CO.
ROUND
BUDDY
TYPE
PROFITABILITY
DIFFICULTY
EASY
Well, the following could be the reasons :
Awareness : They are not aware of this move by Vistara that they have down cut prices due to insufficient advertisement.
Access : Even though awareness is there, the registration process isn’t completely online or it is complicated. We can look through the
registration steps and check if dropout rate at any step is considerably higher.
Membership : The features of the program are not lucrative enough when benchmarked to competitors and hence customers are unwilling to
pay us. This is derived from the fact that this is not an industry wide issue.
Those points make sense. We can look into all these points in details later. We can end the case for now. Well done!
YEH DEEWAR TUTATI KYUN NAHI
COMPANY
Let us begin the case. Your client is a cement manufacturer from a state in north India (eg: UP) and has seen a 5% decline in
profits in the last 5 months. Help him figure out the cause.
BAIN & CO.
I have a few clarifying questions. Firstly, what timeline are we looking at? Is this pre-covid?
Yes, you can consider a pre-covid scenario.
Secondly, what is the business model like? Does the firm only manufacture cement or does it also take care of the other steps?
ROUND
SENIOR MANAGER
The firm takes care of every step - manufacturing, packaging, retailing and advertising. There are 2 types of cements that it sells
with different compositions. Also, they only sell it in 2 states currently. They also sell it to other 3rd party retailers.
May I know a little bit more about the cement business? What type of product is it, how is the market landscape and competition?
The market is fragmented with many large and small manufacturers for the various compositions of cements. Cement is a
commodity product.
TYPE
PROFITABILITY
Alright.We know that:
Profits = Revenue - Costs. Do you recommend any branch that I should start with?
Start with the revenues.
Revenue = number of units sold x revenue from each unit. So let me consider the number of units sold. Has this parameter fallen?
Yes, it has indeed fallen by 2%.
DIFFICULTY
EASY
Considering first from the demand side, there can be 3 reasons that could potentially reduce the number of units sold. Firstly, it could be a
market drop, which means it is a market wide issue. The other 2 reasons could be due to the introduction of a substitute or due to
increased competition. To figure out the reason, I want to know if this is an industry wide issue? I understand that cement is a commodity
so it is unlikely to be affected unless there is a major economic drop.
No this is specific to this company.
YEH DEEWAR TUTATI KYUN NAHI
COMPANY
BAIN & CO.
So that rules out the fact that it is a market drop situation. Moving on to the next possibility, I want to know about the competition. Who are
the competitors and have there been any significant changes in their products or strategies? I understand that the cement manufacturing
market is extremely fragmented so I would like to know the direct competition, if any.
As you have pointed out, the market fragmentation implies a large list of competitors. However, all the direct competition offer
similar products at comparable prices.
ROUND
Alright, so moving on to substitutes, you had mentioned about different compositions of cements being sold. Have there been any
substitutes to the cement being sold in this manner?
Yes, there is a new composition of cement that is being sold. This is cheaper than the one the client sells.
SENIOR MANAGER
TYPE
PROFITABILITY
So that seems to be the reason why the revenue have decreased by 2%. Now switching to the costs, Costs = # units of cement
manufactured x cost per unit. Here, each unit can be a standard sack of cement. This must account to 3% decline in profits, which means
that the cost has risen by 3%. I would like to start with the cost associated with each unit, as it has already been clarified that the number
of units manufactured have not declined. For this I would like to consider the entire value chain of manufacturing:
Procurement of raw materials -> factory expenses -> transportation to retail -> retailing costs (commissions, advertising, rent etc.)
Let me start with the raw materials procurement costs. Has there been an increase in this section?
No there have not been any increases.
Moving on to the next section. In the factory expenses section, I have included the costs associated with leasing the land for factories,
costs of utilities, costs of running and repairing machinery and labor costs. Have we seen an increase in costs for any of these?
DIFFICULTY
EASY
Yes, the labor costs have gone up by 1%.
I can see 2 broad reasons for this - due to reduced supply of labor or due to external factors like unionisation or increased training for
specialisation. To check for the first reason, has there been a shortage of labor?
Yes, since the last 5 months.
YEH DEEWAR TUTATI KYUN NAHI
COMPANY
That solidifies the rationale that the labor shortage was a problem. Considering the transportation costs, have the costs increased in this
section?
BAIN & CO.
No, the transportation costs have remained more or less constant.
That leaves us with the costs associated with retailing. I see that we have 2 modes of retailing - through the retailers and shops owned by
the client itself and 3rd party retailers. Any suggestions as to which one I should consider first?
ROUND
SENIOR MANAGER
Start with the 3rd party retailers.
The only cost associated with third party retailers is commission. The number of units sold have reduced, so the commission that a retailer
receives would have reduced If it is based on number of units sold. Can you verify this?
Yes, that is indeed the case. However, the commissions have increased. Can you figure out why?
TYPE
PROFITABILITY
DIFFICULTY
EASY
With the substitute cement in the market, the commissions that need to be paid may have increased to retain them as a 3rd party retailer,
as in they are asking for fixed commissions that are not linked to the number of units that they sell which might be higher than what we
paid them previously.
That is indeed the reason. We can close the case now.
THE AIRPORT TEST
COMPANY
Hey. Your client is the Vietnamese Airport. They have faced a decline of 5% in their revenues in the last 2-3 years. Can you help
them figure out the reason behind this.
BAIN & CO.
Sure, I have a few questions to begin with. Is it an international or a domestic airport. Are there more airports in Vietnam and have they
also reported a similar problem?
It’s an international airport. There are 2 more airports but they are not facing this issue.
ROUND
CONSULTANT
Alright, I’d like to understand the various revenue streams for this airport. As per my understanding they are :
→ Airline contracts → Vendors → Parking → Advertisements.
Yes, you’re right. You can begin solving now.
Sure, since revenues have declined and we know the streams, could you tell if we have identified which streams took the major hit?
The revenue from airlines have declined by 2% while from vendors the decline is 20%.
TYPE
I’d also like to know their individual contributions to the overall revenue to judge their impact.
Good Question. Airlines contribute 50% while vendors 20%.
PROFITABILITY
Since 20% * 20% > 2% * 50%, I’ll analyze vendors first as that has a greater impact on revenue decline.
Good, Makes sense.
DIFFICULTY
MODERATE
EASY
Revenue from Vendors = Number of Vendors * Revenue/Vendor
Could you tell me which of these parameters have we seen a decline in?
The number of vendors has not decreased. What are sources of revenue from vendors according to you?
THE AIRPORT TEST
COMPANY
I think there would be a fixed component i.e. the rent and a variable component i.e. commission from sales. Since revenue/vendor has
taken a hit, could you tell me if rent or commission has taken a hit?
BAIN & CO.
That’s a good thought process. The rent hasn’t changed.
Revenue from Commissions = Total Sales * Commission %
Has there been a change in commission % maybe due to a change in contract?
ROUND
CONSULTANT
No, the total sales is the one that has taken a hit.
Got it. I’d like to segment based on whether they are inside/outside the airport, their specific location inside the airport (for ex- before
security check/near the gate etc..) and the items that they sell (food & beverages/ apparels/ electronics etc..). Have we seen problems
with any particular segment of shops?
Good question. Only Food & Beverages shops have been facing the problem. This is irrespective of location or their cuisine.
TYPE
Thanks. So the revenue for these f&b shops can be written as
Revenue = # of customers x Avg. Bill Value/Customer
It’s unlikely that average bill value would have one down, so have we seen a decline in customers? If yes, is there a particular segment
we have identified based on Age / Gender / destination / area where they live?
PROFITABILITY
Yes, we have seen a dip in customers. We don’t have any data as such to identify segments.
DIFFICULTY
MODERATE
EASY
Sure, I’d like to go through the customer journey of a typical passenger to understand why they aren’t buying food :
1. Pre Airport : If there are new restaurants near the airport where people have started eating
2. At airport : Not getting time due to longer processes or unaware of food court location (change maybe) or prices/variety not suitable
3. Post Airport : Meals inside the flights have become cheaper
Excellent way of thinking. In fact it is true that the location of food court has changed and it is a bit far away from the gates now.
So, is it the main reason behind decline in customers?
THE AIRPORT TEST
COMPANY
Well we need to dive a bit deeper. Even the airport predicted that location change might be an issue and hence they hired a
marketing agency that provides on-ground agents present near the gates to lead them towards the food court. But we have
seen a decline despite this measure.
BAIN & CO.
Interesting. I would like to know how exactly these marketing agents direct the customer towards the food court.
Sure, they are standing near every gate dressed differently and have their own marketing tactics to make the customer aware
about where the food court is. And of course there are a few posters here and there to guide the customers.
ROUND
CONSULTANT
Got it. Right so, how I see it is,
Number of customers who visit food court = # agents x # customers converted / agent
Where customer conversion(by the agent) depends on :
1. Agent’s communication skills
2. Effectiveness of the marketing tactic
Right. You have correctly identified the problem. The ratio of agents : customers is pretty low and hence despite their tactics
being effective, they’re unable to cover a major crowd. Could you come up with some suggestions to tackle the problem?
TYPE
PROFITABILITY
DIFFICULTY
MODERATE
Sure, have we looked at getting more agents from the agency?
Yes, but they don’t have more agents to supply and there is no other agency better than this one.
Alright, my recommendations would be :
1. Incentivise the food stalls themselves to hire one extra person who can act as a salesman near the gate
2. While food shops are far, there can be attractive posters of every brand throughout the airport to increase the hype
3. If feasibility permits, having mini stalls (just to order) near the gate while seating would be at food court only
4. Analysing why location was changed in the first place and looking for a possibility of reversing this decision if problem sustains
These are nice. We can close the case.
ANTI-PROFIT MACHINE
COMPANY
Your client is a Retail bank. They are unsatisfied with the current profits from their ATM network. You need to identify the cause
of the problem and suggest recommendations.
Sure, before diving directly into the case I would like to know a few things. What is our client’s market position?
The client bank is one of the premium banks of the country like ICICI.
What would the ATM network size of our client be approximately?
ROUND
MANAGER
The ATM network size is pretty decent, about 900-10,000 atms across the country.
Is it possible to know the time frame during which the profits started declining for the client?
We are not sure of the exact timeframe when the profits started to decline but you can take the pre-covid era for your case.
TYPE
PROFITABILITY
Sure I will take this into account. So I will begin with the basic definition of profits i.e. profits=revenue-costs. So the only possibility for the
profits to decline is
➔
Revenue decreasing
➔
Cost increasing
So I will be focusing on the revenues first. Revenue = no. of atms x avg no. of transactions per day x revenue per transaction
Is this approach fine and also what would the revenue per transaction be for the bank?
Yeah this looks fine, the revenue for financial transactions is rs 15 per transaction and rs 5 per transaction for non financial
transactions. Now you should be able to carry it forward.
DIFFICULTY
MODERATE
Okay, so now the revenue function becomes %age of financial transactionsx15 + %of non financial transactionsx5. Can I know which one
of these sectors has taken the major hit?
The non financial sector has suffered an absolute loss going even below the breaking point. The other sector has been doing
relatively well for the time being. The loss is uniform across all the tiers with major impact on the remote areas.
ANTI-PROFIT MACHINE
COMPANY
ROUND
MANAGER
Okay, so I will focus on the non financial sector. I will start with a small user journey and then try to figure out the possible flaw.
USER jOURNEY –
Reach atm → go to machine → insert card → enter pin → choose transaction —----> take the card out at the end
Identifying the step that poses as difficulty
➔
Financial
◆
Cash unavailability,
◆
ATMs being out of service
◆
Withdrawal of cash,
➔
Non financial : customers don't want to go to ATM for such transactions due to availability UPI and things
Hence, on the financial side we can improve on the maintenance of the ATMs, this will lead to a better user experience and eventually
increase in the amount of ATM operations
Yeah this looks good, you can carry on with the optimisation.
TYPE
PROFITABILITY
DIFFICULTY
MODERATE
Roughly 80 other bank transactions happen per ATM in a day - 30% financial - giving a revenue of around Rs 30,000-32,000 per month.
COST –
➔
Rent & infrastructure – RS 10k per month
➔
Utilities (electricity etc)
➔
Maintenance, repair of machine - outsourcing so do not consider
➔
Security guards
A Rs 4,00,000 machine lasts for around 8 years-> so roughly Rs 4000 per month. 2 shifts for guards -> Rs 9000 per guard -> so totally
Rs 18000. And the other costs will totally account for Rs 10000. Total cost per month = Rs 42,000
Recommendations to reduce cost, so that profits increases :
➔
Remove cost by replacing guards by surveillance cameras
➔
saving costs in utilities by saving energy.
Very well, you solved the case pretty efficiently and the recommendations looks good
BOOM BOOM BOOMER
COMPANY
Hey, let us start with a case. So our client is a bubble gum and mint manufacturing company. They are facing decline in profits.
Please help them identify their problem and suggest some recommendations to solve their problem
Okay, so before I start this case, I would like to ask some preliminary questions. May I know what type of products does our client make?
Our client makes ₹2 small bubble gums like boomer, center fresh etc.
How much decline in profits has our client seen? Also what is the timeframe of decline?
ROUND
SENIOR BUDDY
Our client has seen reduction of profits by 70%, This decline has been happening gradually over the last 3 months.
Wow, thats a big decline! Also is this an industry wide issue or only our client’s issue?
Its an industry wide issue.
TYPE
PROFITABILITY
Okay, I think I have enough information to jump into the case.
So profits are a function of revenues and costs. As we know profits are declining, then this means either profits are decreasing or costs are
increasing or both of them are happening simultaneously. May I know which of the above scenarios is happening here?
In this scenario, revenues are decreasing. Costs have remained constant over the last 3 months
I see, so revenues are basically a product of number of units sold and price per unit. Have any of these factors seen any change?
Price of the product is constant, but the number of units sold have reduced.
DIFFICULTY
MODERATE
I understand. May I know the value chain and different customer segments of our client?
So our client manufactures bubble gums and sells to 3 customer segments - Supermarkets, E-commerce and tea shops
Has our client seen decline in one particular segment?
BOOM BOOM BOOMER
COMPANY
Yes, our client has seen decline specifically in tea shop segment
Interesting! So specifically for tea shops, some of the reasons of decline in sales can be
1.
Monetary reasons - Tea shops have better alternatives than bubble gums where they earn more profits
2.
Non monetary reasons - Customer preferences have changed
3.
Complementary product reasons - Complementary products have seen decline in sales so bubble gum sales have reduced
That is a good list of possible reasons. Please focus on complementary products
ROUND
SENIOR BUDDY
TYPE
PROFITABILITY
Definitely. So bubble gums are commonly consumed after smoking. Have cigarette sales changed in the last 3 months?
Yes, so recently government has imposed taxes on cigarettes so prices of cigarettes have gone up. Hence cigarette sales have
dropped and our sales have dropped too.
Now that we have identified the reason, can you please give our client some recommendations to solve the problem?
Therefore as of now our client’s product’s demand is pegged to cigarettes demand. To stabilize profits, this dependency should be
reduced. We can achieve this by
1.
Focussing on other customer segments. Understand what they like and cater to those needs
2.
Do promotional activities like collect 5 stickers to get 1 GB data and so on
3.
In long term, our client can do some RnD to invent new flavours.
Great! We can close this case
DIFFICULTY
MODERATE
BULLSHEET CASE
COMPANY
Hey, let us start with a case. So our client is a paper manufacturing company. They are facing decline in profits since the last 2
years. Could you please find the reason and suggest some recommendations to solve this problem.
Okay, so before I start this case, I would like to ask some preliminary questions. May I know what type of products does our client make?
Our client makes A4 size blank notebook papers.
How much decline has our client seen? Also is this decline limited to our client or the whole industry?
ROUND
JUNIOR BUDDY
Our client has seen 20% decline in profit. Also this decline is seen by the whole industry.
Interesting! Where is our client located and who are our client’s customers?
Our client has factories in south India. Our client’s customers are notebook manufacturers who are present all over India
TYPE
PROFITABILITY
Okay, I think I have enough information to jump into the case.
So profits are a function of revenues and costs. As we know profits are declining, then this means either profits are decreasing or costs are
increasing or both of them are happening simultaneously. May I know which of the above scenarios is happening here?
In this scenario, both revenues and costs are decreasing. But revenues have decreased more than costs so profits are reducing
That’s interesting. May I focus on revenues only for now to simplify the problem?
Yes, you can focus on revenues for now.
DIFFICULTY
MODERATE
Thank you. So revenues are a product of kg of paper sold and price per kg. Have any of these factors seen any change?
Price of paper is same, but number of kg of paper sold has reduced
BULLSHEET CASE
COMPANY
Okay, as number of kg of paper sold has reduced, this means either demand for our client’s customers aren’t buying our client’s paper
anymore, or our client is not able to produce enough paper as it used to. May I know which of the two is the issue here.
Our client’s production has gradually decreased over the last 2 years
I understand. So production depends on procurement of raw materials, manufacturing process and logistics. Has any one of these
segments seen any change in the last 2 years?
ROUND
JUNIOR BUDDY
Manufacturing and logistics have remained same over the last 2 years. But procurement of raw materials has reduced.
Okay, so some of the raw materials needed for making paper is water, wood pulp, chemicals. Has procurement been difficult in any one of
these materials?
Acquiring wood pulp has become more difficult. Water and chemicals are abundantly available.
TYPE
PROFITABILITY
DIFFICULTY
MODERATE
I see. So this means either one of the following two is happening1.
Vendors are not able to supply wood pulp
2.
Vendors don’t want to supply wood pulp
Yes, vendors are not selling us wood pulp because they get higher margins by selling to furniture manufacturers
Now that you have found out the reason, could you please give our clients some suggestions to tackle this problem?
Some possible recommendations can be 1.
Search for more vendors in North India.
2.
Since this is an industry wide issue, collude with competitors and increase profit margins, so that we can give more to our
vendors.
This is good enough. We can close this case
Thank you.
AN APPLE A DAY KEEPS THE DOCTOR AWAY
COMPANY
Hey, let us start with a case. Your client is an Apple Orchard Firm which is facing a decline in profits. You have to understand
why is this happening and provide some recommendations to solve the problem
Sure. But before diving into the cause of decline, I would like to ask some clarifying questions
Go ahead
How much have the profits reduced by and in what time frame?
ROUND
SENIOR BUDDY
There is moderate decline of profits (~ 30%) in the last 6 months.
Where is our client located? Also what services are provided by our client?
The orchard is located in Shimla, Himachal Pradesh. Coming to services, our client has mainly two services
1.
Growing apple on the farm
2.
Supplying it to market according to the order received
TYPE
PROFITABILITY
Also have other orchards in Shimla seen a similar decline of profits or is it specific to our orchard?
This decline is seen only in our orchard. Other orchards’ profits have mostly remained the same
Alright, I think I have a good background knowledge of our client. Now I would like to analyse deeper into what is the root problem.
So profits are a function of revenues and costs. As we know profits are declining, then this means either profits are decreasing or costs are
increasing or both of them are happening simultaneously. May I know which of the above scenarios is happening here?
DIFFICULTY
MODERATE
Costs have remained the same in the last 6 months, but the revenues have dropped
So revenue from the orchard can be formulated as the product of these parameters
Number of apples sold
Revenue per apple
Has any one of these factors seen a change?
AN APPLE A DAY KEEPS THE DOCTOR AWAY
COMPANY
Number of apples sold have reduced
I understand. So number of apples sold is equal to number of customers multiplied by average apples sold per customer. Have any one of
these factors seen a decline in last 6 months?
Our client tells us that number of customers have decreased
Interesting. Are we not able to produce enough apples to meet the demand, or the demand for our apples have reduced?
ROUND
SENIOR BUDDY
Demand for our apples have reduced
Interesting! So demand can be formulated as a product of market size and market share. Have any of these factors seen a decline?
Instead of market share, you can focus on different markets segments and analyze problems specific to those segments
TYPE
PROFITABILITY
Sure. So some of the possible market segments for our clients apples can be
1.
Exports
2.
Local markets
3.
Industries like juice industry, jam industry etc.
Have we seen a reduction in demand from one of these industries?
Our client has seen a decline in juice industries segment. Other two segments have remained unaffected
Okay, so assuming juice industry size has not changed much in the last 6 months, this means factories are not preferring our client’s
apples since the last 6 months. Have our client’s apples changed in the last 6 months.
DIFFICULTY
MODERATE
Our client’s apples have become bigger since last 6 months
Very Interesting! I assume there has been some change in farming process because of which the apples have become bigger?
Yes. Why don’t you list the journey for growing an apple and identify possible pain points?
AN APPLE A DAY KEEPS THE DOCTOR AWAY
COMPANY
ROUND
SENIOR BUDDY
Sure! So as far I know, apple farming involves following steps1.
Making soil fertile using fertilizers
2.
Sowing of seeds
3.
Irrigation
4.
Weeding
5.
Harvesting
So possible issues can be
1.
Fertilizers have been changed because of which quality of apples has declined
2.
Enough irrigation is not done
3.
Weeds hamper growth of apples
Have any of these happened in the last 6 months?
In the last 6 months, our client has changed the fertilizers. Because of this, apple size has increased.
Okay. For juice industries, juiciness of an apple is an important factor. Have our client’s apple become more juicy in proportion to the
increase in size?
TYPE
PROFITABILITY
No, in fact, because of this new fertilizer, juice content has decreased. Because of this, juice factories are not preferring out
client’s apples.
Now that you have found the root cause. Could you please give our clients some recommendations to solve this problem?
Yes sure. So my recommendations are in short term and long termShort term
1.
Immediately revert back to the old fertilizer
DIFFICULTY
MODERATE
Long Term
1.
Do R&D to improve juice content in apples
2.
Identify new industries which can use apples as raw materials
3.
Build strong relationships with wholesalers to expand in retail channels
BLACK GOLD
COMPANY
Your client is a petrol pump owner who is facing the issue of decline in profits for over 2 months. Analyse in detail and find out
the core of the problem.
To understand the scenario better, I would like to ask few preliminary questions. How much is the decline overall and is it during the
covid-19 pandemic?
The decline in profits is about 10% and the time period we are referring to is Pre-covid.
ROUND
Ok. And how many pumps do they totally own? What are the products or services offered by each of them?
The client owns around 50 pumps and all of them have both petrol as well diesel. There is no other service offered.
SENIOR BUDDY
Cool. So the decline in profits is subjected to pumps from any specific location or on whole? Is the issue client based or industry based?
The decline has been observed mainly in the outskirts of Delhi and there is no competitor in the range of 5km from our place.
It is a client based issue.
TYPE
PROFITABILITY
OK. As we know that Profits = Revenue - cost, decline in profits is either due to increase in costs or decrease in revenue.
Let’s focus on revenue.
Okay, also can I know the major revenue streams?
Yah sure. There are three major revenue streams - From restaurants, from garage and from the petrol stations, which refers to
the fuel . We can look at the last part for the major decline.
DIFFICULTY
MODERATE
Sure. Revenue from fuel would be Number of transactions x Average revenue per transaction. A decrease in either of them would cause
in decline of revenue.
Yes, good going. The average revenue per transaction has not changed much over the time.
BLACK GOLD
COMPANY
Okay. So it’s the number of transactions which has decreased. We can say that
The total number of transactions = Total vehicles crossing that road X % the vehicles that fill fuel from our station
Let me add something here . We can look at the revenue from both supply as well as demand side, so can you give me an
approach that concerns supply?
Oh yeah sure, I should have looked at it as well. The basic process in the supply side goes like this Import of fuel → Storage → Transportation → pump
ROUND
SENIOR BUDDY
TYPE
PROFITABILITY
Yes alright. There is no issue with the first three steps. And the pump draws the fuel from an underground tank.
Cool, so the problem is with the pump. After transporting the fuel, we might face issues in the following 3 steps→ Pouring
→ Container
→ Machine
I’d like to analyse each of the steps further to rule out the issue.
In step 1, there might be leaks and loss due to that while pouring the fuel to container. There can be labour inefficiency as well. In step 2,
there is a possibility of leakage from the container and fuel theft. In the last step by machine, I would like to mean issues like inability to
draw out the fuel using machinery. This can either be because of problem in suction or presence of blockage. It would be helpful if you
could tell me if we have identified the main problem.
Yes, perfect. The blockage is the reason for the declining revenue. We can close the case now.
DIFFICULTY
MODERATE
MAJOR RESPONSIBILITY
COMPANY
Let us get started with the case. Your client is a large Indian restaurant chain with over 100 outlets in India. This chain has seen
decline in 10% profits recently. Analyse and find the reasons for this.
Before I dive into the case, I want to be clear about a few things about the chain itself. Where does the chain operate?
It operates primarily in the Metro cities and a few other urban locales.
What is the mode of operation of the chain? Do they offer only Dine-In services or do they also offer take always and delivery services?
ROUND
PARTNER
They primarily offer dine-in services. They also offer take-always but that forms a small part of the business.
May I know if this is an industry wide issue or specific to this chain. There might have been significant impacts due to the pandemic on the
footfall of dine-in restaurants.
This issue is specific to the chain under consideration. You can assume that the timeline we are dealing with is pre-covid so the
effects of the pandemic are minimal. Also, is this issue specific to a few outlets or is it an issue across all chains
TYPE
PROFITABILITY
I want to know a few characteristics of the chain. Do they cater to an esoteric crowd or do they offer culinary dishes that cater to a wider
audience?
They offer slightly premium dishes and experiences.
I think I have a few details to get started with the case. I would want to split profits as follows:
Profits = Revenue - Costs
I want to ask if the revenues have gone up or if the costs have gone down.
DIFFICULTY
MODERATE
Let us focus on the costs.
Alright. I want to segment the costs associated with each of the steps in the restaurant‘s value chain:
Raw materials logistics → In-kitchen expenses → Operations → Marketing and ambience
Have there been any major changes in any of these sectors? I would like to narrow it down to a sector that has experienced paradigm
shifts.
MAJOR RESPONSIBILITY
COMPANY
I recommend starting with the ambience and marketing.
Alright. So I would like to consider the ambience within the restaurant first. Dividing the factors associated with ambience as follows:
Humane: Valet Drivers -> Receptionist -> Waiters -> Chef interaction -> Dessert vendors outside restaurant
Not humane: Parking space -> Decor and lights -> tables -> cutlery
ROUND
PARTNER
I would like to start with the non-humane part of the ambience. Potential leads are the parking spaces and cutlery as the others are fixed
and are not changed often in a restaurant. As the issue is pertinent only to a few restaurants in the chain, I would like to start with the
parking spaces. Have there been an increase in the rents / prices associated with the spaces?
No, there have not been any significant increases in the costs associated with the parking spaces.
Then I would like to proceed with the remaining parts. Is it appropriate to assume the fixed nature of costs associated with decor, lights
and tables?
Yes, that is indeed a fair assumption to make.
TYPE
PROFITABILITY
Then, proceeding with the cutlery. How are the cutlery sourced In the restaurants? Do they buy them in bulk or do they lease them? Also,
what type of cutlery are used?
The cutlery is leased from local suppliers. Since it is a premium restaurant chain, they use different types of cutlery. All the
restaurants have recently upgraded their cutlery set. The cutlery set is made of premium metal which allows for leasing and
reuse.
DIFFICULTY
MODERATE
I hypothesise that since the cutlery is bought from local suppliers and all the restaurants have upgraded the cutlery, some of the local
suppliers may be charging higher prices. Can you validate this?
Yes, that is indeed the cause of decreased profits. We can conclude the case here.
BIG SCREEN ISSUES
COMPANY
Your client is a mid-price TV manufacturer. It has been reported that their market share has been decreasing for the past 6 months.
Identify why and give suitable recommendations.
BAIN & CO.
I’ll begin with few preliminary questions to understand the problem better. What is the percentage change in the market share? Where is the
client located?
The shares have decreased from 15% to 11%. The client is located in North India.
ROUND
PARTNER
Ok, could you tell me about the model setup like what does the client do?
Yes. So the client basically manufactures the product, markets and sells it to biggest distributors across the country, who then sell
it to the customers.
Cool, understood. How many types of product does the client make?
There is only one type of TV, priced at Rs.20,000.
TYPE
PROFITABILITY
Okay. Has any new player entered the market? And has there been any growth in the industry as such?
No new player has entered the market and yes, there has been a growth in the industry. But our sales are the same.
Oh okay, so our
Market share = Total number of retail points x sale from one retail point
The decrease can be either due to decrease in total number of retail points or the sale from each.
DIFFICULTY
MODERATE
The total retail points has not changed much so you can focus on the sale from each point.
Ohkay. So basically, the retail channels can be be either company owned stores or multi brand stores. Could you tell me if there is a specific
drop from any of these?
Yes. The decrease has been observed primarily in Multi Brand stores.
BIG SCREEN ISSUES
COMPANY
BAIN & CO.
Could you tell me if the decrease is in the supply or demand side with respect to the multi brand stores?
The demand has reduced.
Okay. so
Demand = number of people coming to the stores x % of people buying a TV x % people who buy our TV
It would be helpful if you can give a hit on where has the decrease been here.
ROUND
Sure, the % people who buy our TV has reduced.
Oh. In that case, has any factor like price, quality, awareness and aftersales like warranty period, etc changed over the period?
PARTNER
No, there has been no change in any of these. But the main problem can be inside the Multi Brand stores.
Ohkay, so I assume it has to do with the visibility, sales and customer service.
Yeah, right. It’s with the customer service.
TYPE
PROFITABILITY
Ok. So there might be monetary benefits for the sales people and this could be due to the fact that the other companies are able to offer
higher commissions. And that our client couldn’t do the same because there is no extra money for monetary incentive as such,
Perfect! Now that we know the root cause, can you give some suggestions on how to improve the situation?
DIFFICULTY
MODERATE
Yes, sure. I would like to give the following recommendations → Use generated content to do social marketing
→ Explore more e-commerce options
→ Enter the distribution network rather than being purely dependant on middle-men.
Great. I think the client would draw the benefits by following your suggestions. We can close the case here.
I AM IRON MAN
COMPANY
Hey let us start with a case. So our client is a steel manufacturer. They have a 7% EBITDA margin. Their EBITDA margin is
stagnated at 7%, and they want to increase till 20% margin. How should they do this?
Sure, so I would like to start this case by asking some preliminary questions. So what is our client’s geographical location?
Our client is based out of Gujarat and Maharashtra
Is there any fixed timeline in which this has to be achieved? Also is this case in a COVID scenario
ROUND
PARTNER
Yes, this has to be preferably achieved in the next 3 to 5 years. Also this case is not in COVID scenario
Also what products are offered by our client and what is their business model?
So our client sells two products - Galvanized steel and Colour Coated Steel.
Coming to their business model, they buy raw materials, produce both types of steel in sheets, and then sell it to dealers.
Dealers then sell it to different companies or retailers. Finally retailers sell their products to final consumers
TYPE
PROFITABILITY
Great. Also what is our client’s competitors’ EBITDA margin?
So our client’s competitors’ EBITDA margin is 20%. This is because our client’s competitors have exclusive dealers who only
sell their product. Whereas our client’s dealer isn’t exclusive
Alright. I have sufficient information to start this case. So EBITDA is basically profit which remains after cutting costs, interests, taxes and
depreciation. So for this case can I assume there is no significant change in interest rates, taxes or depreciation?
DIFFICULTY
DIFFICULT
Yes, you can assume that and continue with the case
Great, so EBITDA is a function of revenues and costs. As our client’s EBITDA margin is lower than that of their competitors, either our
client’s revenues are less or our client’s costs are higher. May I know which of the two is the situation here?
In this case, our client’s revenues are less as compared to industrial average
I AM IRON MAN
COMPANY
I see. So revenues can be calculated as a product of Number of Dealers, Number of Retailers per Dealer, Unit Sold per retailer and
Revenue per unit. So may I know which of these factors have seen a change?
Out of these 4 factors. Unit Sold per Retailer to customer has gone down. Rest all factors have remained constant.
Interesting! Have our client’s competitors seen a similar decline? Also is this decline linked to one of our products or both?
No, only our client is facing this problem. And our client has specifically seen a decline in Colour Coated Steel.
ROUND
PARTNER
TYPE
Okay, what is the price of our client’s colour coated steel vs our client’s competitors colour coated steel?
Our client’s price is ₹60,000 per ton, whereas our client’s competitors price is ₹75,000 per ton
Very interesting. Considering customers are buying expensive products, there is something fundamentally wrong. Some of the possible
reasons why customers favour expensive products can be 1.
Our client’s competitors steel is of better quality than our client’s steel
2.
Customers feel that expensive products are of better quality, so they prefer our client’s competitors products.
May I know which is the scenario here?
PROFITABILITY
Our client has said that they have done tests and have found that both the steels are of same quality. So it’s more probable that
customers perceive our client’s product as low quality.
Now that we have found the reason, could you please suggest some recommendations to solve the problem?
DIFFICULTY
So now that we know that customer perception is the problem, we need to prove that our client’s products are of good quality. This can be
done in the following stepsShort Term
1.
Convince dealers and retailers to promote our product by giving them variable incentives
2.
Do B2B marketing
Long Term
1.
Get special deals from project finance companies like GVK or GMR, such that they use our client’s steel for their projects
DIFFICULT
Fair enough. We can close this case
MARKET ENTRY
TIPS & TRICKS
Market entry cases are fun and test both your profitability framework and guesstimate skills apart from logic. So make sure
you’re comfortable with other 2 types before jumping here. We recommend going through the framework of market entry
once to help you with the first few cases. But DO NOT MEMORIZE. The ultimate goal should be to create your own
framework that can handle any entry : new geography or product or anything. Keep in mind, this is a continuous process.
Your framework will and should change with every case as per the learning in that case until you reach a point where you
feel confident that your framework can handle 80-90% of cases thrown at you irrespective of anything. (It’s impossible to
reach 100, yes impossible!).
We found Day 1.0 book to be a good source of theory to read from. But if you find reading theory boring, fret not! Case Club
IITM created a comprehensive video on market entry (as part of their annual course - Consult 101) where a consultant from
Auctus decodes the framework and solves a case live! Go through the video before your practice.
CLICK ON IMAGE FOR THE VIDEO
(YouTube Channel : Case Club IITM)
BOB THE BUILDER
COMPANY
Your Client is Tower cranes company. They want to enter the Indian market, should they enter & how?
Sure, I would like to ask a few questions before deep diving. What is a tower crane company?
Tower cranes are basically used in construction sites for moving heavy goods, tools, etc. They have huge heights, width & high
weight carrying capacity.
ROUND
Where is this company based out of?
It's a Europe based company.
SENIOR PARTNER
What is their specific metric client is looking at to analyse this entry?
Client wants to capture market share as much as possible in the next 5 years.
TYPE
MARKET ENTRY
DIFFICULTY
EASY
What is the competition & size of market like?
It is an emerging market.
Okay to summarise, the client wants to enter the Indian Market with an objective to achieve reasonable market share.
I would divide the market entry strategy into 4 segments for the tower crane company:
1.
Estimating market parameters such as market size & share
2.
Operational feasibility (including mode of entry)
3.
Risks
Do you want me to focus on any particular segment?
BOB THE BUILDER
COMPANY
Yes, let’s focus on estimating market size.
According to my understanding of a tower crane, I assumed that we need tower cranes on construction sites for only a certain amount of
time. Is this assumption correct.
Yes, go ahead
# tower cranes = # Active sites x # cranes/ site
ROUND
What do you mean by active sites here?
SENIOR PARTNER
Active site is like a mid stage construction site with a 2 year period, where you will need tower cranes. It can be in residential or industrial
areas. Can I get some numbers?
Sure, consider 5000 active sites of constructions, consider 75% of cranes to be operational and 2 cranes are required per site.
TYPE
Okay so 0.75 x 2 years site period = 1.5 years. So we will effectively need 2 cranes / site for 1.5 years.
MARKET ENTRY
Consider the cranes to have a 6 year lifetime, what is the market size at the end of 16 years?
DIFFICULTY
EASY
IDK
Total no. of tower cranes = 5000 * 2 = 10,000 cranes for 1.5 years. Thus market size at the end of 16 years would be 16 x 0.75
(operational time) = 12 years
Thus market size would be (10K x 2) / 1.5 = 13.3K cranes
Fair enough. We can stop the case here.
HEALTHY AND JUICY
COMPANY
Hello! I’ll give you a market entry case I’ve previously worked on at BCG. The client is a large FMCG that manufactures
ready-to-eat food, beverages, biscuits, etc. They want to enter the fruit juice market. How can they capture a healthy market
share and what impediments can come up?
That sounds very interesting. I would like to know which geographical locations I should be focusing at, and why does the client want to
enter this market. I would also like to know how much market share are they aiming to capture in what time frame.
ROUND
They are a global company aiming to capture 25% market share in 3 years. The rationale behind this market entry is to earn
more profits.
Are there any major competitors in this sector?
PARTNER
There are 2 large competitors who have 20% each of the market share. Besides these, there are several other small contractors
with several products of their own.
Is the client looking at a specific type of fruit juice? I would also like to understand the value chain in this industry.
TYPE
MARKET ENTRY
The client is looking at manufacturing healthy fruit juices (like tropicano). The typical value chain is such that the manufacturers
produce and distribute to the vendors themselves.
Got it, thank you. Are there any target customer segments in the client’s mind? And should I consider this to be in a pandemic scenario?
There are no target customer segments. You can ignore the pandemic.
DIFFICULTY
MODERATE
Since Profits are the metric, I would like to analyse revenues and costs. Starting with revenues,
Revenue = Market size x Market share x Avg. Revenue/Product
We can look at increasing the number of products we sell (market share) or increase our prices wrt competitor. What should I focus on?
Let’s focus on increasing no. of products sold by our client in the market. We need to keep similar prices.
HEALTHY AND JUICY
COMPANY
There can be two constraints here, supply side and demand side. Looking at supply side first, are there any constraints regarding
manufacturer’s ability to produce more goods or any issues with distribution network that we should analyse?
No, there aren’t any.
Alright, for demand side, I’d like to focus on customer journey and benchmark it to competitors and substitutes.
Great, don’t worry about substitutes.
ROUND
PARTNER
Right so journey would look something like this :
→ Access to juices : Both online and offline. We should make sure we’re present everywhere where our competitors are.
→ Awareness : When customer is choosing, our brand should strike their mind first. This will come with marketing efforts.
→ Product : We can look at creative packaging and also consider preparing healthier juices than competitors if that’s a possibility. Since
sustainability is picking up pace, we can look at biodegradable packaging as well.
→ Price : We already discussed that pricing needs to be similar.
Great. Can you give a few recommendations to the client to help them attract and retain customers?
TYPE
MARKET ENTRY
DIFFICULTY
MODERATE
We can divide the publicity as online and offline :
Online : We can identify relevant target audience (seems to be ages 18-45 in this case) and advertise on platforms they are present at
(Facebook, Instagram, Twitter, Websites). Collaboration with influencers is another way of highlighting the health benefits of our juice. This
is apart from standard newspaper, TV and radio ads.
Offline : We can set up tasting stalls in public places (outside DMart stores, gyms, malls etc..) and highlight the benefits our juice. Infact
our packaging should clearly mention the health aspects.
That’s good enough. You did decently well, we can close the case.
Thank you, sir.
INSTASPACE
COMPANY
Hey, let’s start with a case. Our client wants to enter the hyperlocal delivery space. How can we help them set it up?
Okay, I’d like to start out by first understanding the client’s needs better. Can I get more details about the client, where exactly do they
want to set up, and whether they have a goal in mind?
Our client is a PAN-India level e-commerce giant. They want to enter the delivery space in Bangalore and gain market share
within a year.
ROUND
MANAGER
TYPE
MARKET ENTRY
Okay, that’s interesting. Can I assume competitors to be Amazon and Flipkart, who deliver everything within 1-3 days? And do we have
the same portfolio of products with similar pricing? Also is there any reason to enter bangalore specifically?
Amazon and flipkart together have around 40% of the market share, 3-4 other major ones occupy another 40%, and the rest 20%
is with local players. They also have a central warehouse for deliveries in the city. Yes we have similar products at same prices.
Bangalore has high daily volume order and hence we see it as a good market. What parts would you focus on and how do you
think we can compete with the likes of amazon and flipkart?
Okay. To break this down into smaller parts, we have:
Market analysis & financial feasibility -> operational feasibility -> outline risks
If we are to compete with existing players, we should focus on quicker deliveries (0-2 days). The operational feasibility then, I believe,
becomes a greater focus area. Does that make sense?
Yep, let’s look at the supply chain.
Right. So it works like:
DIFFICULTY
MODERATE
Vendors (various cities) -> Warehouse (Bangalore) -> Customer’s house
For quick deliveries, following measures can be adopted :
→ Since we are a pan India level e-commerce giant, We would have the data of purchases made by consumers across country. We can
analyse the purchasing patterns of a typical Tier 1 city (Delhi, Mumbai, Pune etc..) and understand the customer needs. Accordingly we
can make sure that most popular items are always in stock at Bangalore warehouse.
→ We can also try to create a strong network of vendors within the city itself to ensure quicker deliveries.
INSTASPACE
COMPANY
→ Once we have the data of Bangalore city purchases, we can identify areas where order volume is relatively higher and we can allot
more deliver folks in those areas to speeden up the process.
→ Moreover in areas with high order volume, we can also open “dark stores” with the most popular items pre-kept there (ex - Boat
earphones, ReadGear mouse etc..) so as to focus on the concept of delivery “in a few hours”.
That’s a good thought process. What risks do you see?
ROUND
MANAGER
→ Inventory waste : If our prediction as per data is wrong, a lot of inventory kept in warehouses and dark stores are getting wasted.
→ Competitor response : Since our competitors already have all the data, if they see a new giant trying to interfere in their market, they
would adapt the same technique.
→ Customer Trust : Bangalore people already trust our competitors (suggested by high volume orders). To break the loyalty, we really
would have to live up to our promise of quicker deliveries else negative word would spread quicker and we might lose market.
Fair Enough. We can close the analysis here. Thank You.
TYPE
MARKET ENTRY
DIFFICULTY
MODERATE
A+ ON THE BLOOD TEST
COMPANY
BAIN & CO.
Hello, your client is a medical lab chain based out of the United States. They want to enter India and set up testing labs. What
are the factors they should look into before they enter India. Please just give me a list of things they should consider.
I have a few preliminary questions about the firm that I would like clarifications on. Firstly, what is the timeline that they are considering?
They want to enter the Indian market in the next 6 months
I want to know a little bit more about the labs? What do they test? Do they have any proprietary technologies/ patents for the tests?
ROUND
PARTNER
They basically perform blood and urine tests for pathological and other requirements. They also have complex tests like MRI/
CT scan etc. but they do not plan on introducing it initially. Their technology for blood testing is proprietary.
Also, I want to know about the competitive landscape of the testing facilities in India.
The medical testing market is moderately competitive, with lower competition in the tier-2 and lower cities of the country.
TYPE
MARKET ENTRY
Alright. I would want to analyse this case by considering the value chain of the testing facilities in general and listing out the relevant
points in each of those stages. I am proposing this value chain to take into consideration:
R&D (testing techniques) → Manufacturing/ Procurement of equipment → Lab Setup → Patient influx
Let me start with the R&D part. How are the R&D facilities currently in terms of the geography?
The facilities are all located in the USA. The research is primarily based on the data taken from US citizens. However, this
should not affect the results when applied on Indians.
DIFFICULTY
DIFFICULT
I believe we will have to do an extensive research on Indian citizens (can be done by studying our indian competitors thoroughly) and
understand the different diseases prevalent here and their intensities. The R&D infrastructure should be set up accordingly.
We need to find answer to whether we should expand beyond blood and urine testing based on Indian needs and what our competitors
are doing (taking into account our capabilities as well).
Fair Enough.
A+ ON THE BLOOD TEST
COMPANY
BAIN & CO.
Alright. Proceeding to the manufacturing of equipment or procurement, I would like to know how they currently operate in the US?
All the equipment is designed in the US but manufactured in China and imported from there.
For the equipment: 1. Cost benefit analysis wrt manufacturing in India: Cost manufacturing locally should be less than cost of
manufacturing in China and import costs.
2. Regulatory aspects of importing.
ROUND
PARTNER
BUDDY
TYPE
UNCONVENTIONAL
MARKET ENTRY
Alright, what factors would you look for lab setup?
I would look at 2 factors :
1.
Location : Identifying residential areas with popular hospitals nearby would help. Also identifying hotspots, regions where doctor
density is high will be beneficial. We should also look at regions where competition is lower or subpar in terms of quality.
2.
Quality of city : When going from tier 2 to tier 3 cities to rural areas, I would suggest identifying regions where these
sophisticated instruments can be supported (for ex- stable electricity). Also identifying those areas where transportation and
maintenance costs are lower would help. We should also look at the need and affordability of those areas.
For the next aspect, which is patient influx, I want to know how the current customers are being attracted in US? Do they get to know
about the lab organically or are they recommended the labs by the doctors?
Right now, there is not fixed method. Both of these are prevalent.
Alright, I would like to go through a customer journey to see how we can improve at every step to increase the influx.
Awareness → Access → Products & Service → Pricing → Post-report
These are the major steps that I see and I would like to cover them one by one.
DIFFICULTY
DIFFICULT
Alright. You can proceed with how do we increase awareness wrt our competitors.
Online : We can look at targeted campaigns through facebook, instagram and linkedin. I know that ads by medical labs are a little weird
but they can be made meaningful by advertising checkup packages and importance of regular health checkup (Influencers can be used)
A+ ON THE BLOOD TEST
COMPANY
Offline : Apart from all standard means including newspaper & radio ads and stalls, we can give commission to doctors to recommend our
labs for the tests they suggest to patients.
BAIN & CO.
That sounds interesting. What did you mean by access in your journey?
ROUND
PARTNER
BUDDY
TYPE
UNCONVENTIONAL
MARKET ENTRY
.I meant labs that are easier to visit will be preferred more. So for example, if the lab is nearer to popular hospitals and clinics, the patient,
once asked by doctor, will find convenient to visit the lab and choose us over our rivals. Similarly, since its blood and urine collection, if
samples can be collected from doorstep that would immensely increase accessibility. An app can be introduced to make the process
easier and systematic.
Those are great suggestions.
Thanks. Moving ahead with products and services, I have a few suggestions in my head:
1.
Making sure all sort of tests prescribed by doctors are available.
2.
Having combos for blood tests will be helpful.
3.
Reports that are easy to read and give more insights can be something unique we do.
4.
Having a nice ambience at the lab, in the waiting area, can be good. (For ex - dynamic posters with cool facts)
I believe pricing is not a great bar as this is something essential and if we are adding more value than our competitors, prices can be kept
a little higher. Does that make sense?
Yes, that’s a fair assumption. Let’s move to post report.
DIFFICULTY
Sure, post report, we can have something like a membership program with discounts on tests taken annually/quarterly based on needs.
This will ensure customer retention.
Makes sense. We can close the case, great job!
DIFFICULT
SHARK TANK
COMPANY
ROUND
SENIOR PARTNER
Your Client is the CEO of SHARKS [bank/ lending company], serving in Commercial vehicle financing business. They lend to
individuals who would buy vehicles for their primary source of income. Eg. Vegetable vendor, auto rickshaw drivers. NBSE is
coming up with a credit policy and they want to finance these people. But they want to know:
1.
Criteria to judge for giving loan
2.
And how much should be lent
Give me a few data points to vet if a person should be given a loan. Based on these data points decide how much loan should
be given to them.
To understand the scenario better, I would like to ask few preliminary questions. How are you lending and what is the mode?
Typical loan service, we have different branches across the country.
What are the goals with lending/ the Company mission with this?
We want to start helping and venture into social structure.
TYPE
MARKET ENTRY
What are the metrics we wish to chase?
The Risk level needs to be kept under check before lending
Is there any focus on particular city/ state/ country?
DIFFICULTY
Consider the state of Rajasthan
What is the basic process for applying for this loan?
DIFFICULT
We have a branch of NBSE in various parts, our Salesperson will approach customers and then applicant will finish all
formalities at branch
SHARK TANK
COMPANY
So just to clarify the PS again: I need to come up with a set of data points to check if a person should get a loan, if yes what amount
should be granted.
Right
ROUND
SENIOR PARTNER
So, factors to check whether the loan should be granted would be…
1.
Identity verification → citizen , not criminal, credit score data
2.
Understand the purpose of loan and the primary source of income (check for secondary source or alternate earning family
member)
3.
If they have any collateral? Ensure if they can’t pay back we can take the collateral
What is the idea behind understanding the purpose of loan?
TYPE
MARKET ENTRY
DIFFICULTY
DIFFICULT
IDK
The use for which they are taking the loan should be in growth segment. Should not be obsolete in next 5-6 years. Suppose auto which is
run by petrol won’t come under a growth segment because transportation is shifting to EV now. The idea is to basically if sufficient income
will be generated to pay back the loan.
Fair enough.
For the factors to decide the amount we should lend…
1.
Based on kind of vehicles (amount will vary from autos to trucks).
2.
Amount of Money generated from their activity (Purpose of loan)
Cool. Now consider a vegetable vendor who wants to take the loan. He goes to the mandi, takes vegetables & comes back to
Jaipur. For that purpose he will take a loan on TATA ACE which costs 6L. Amount that we have to lend is 5L with a 10% interest
rate? Should we actually give this person a loan?
SHARK TANK
COMPANY
So firstly I will consider the revenues he generates and his costs. Costs incurred will be costs incurred for running his business and
family costs as they will have dependence on food, education, housing.
Fair enough, can you estimate the amount he can afford to pay back?
Sure can I get some numbers or should I assume?
Consider his family costs are Rs. 12,000/ month and for business costs you can make assumptions.
ROUND
Sure
SENIOR PARTNER
So business costs will be = Amount spend on the truck = Fuel + maintenance. Assuming the distance between mandi and Jaipur to be 20
km and diesel cost as 90 Rs. /L. What should I consider as the mileage of TATA ACE?
Consider 20 km/L
TYPE
MARKET ENTRY
Okay so he needs to travel 40 km of journey daily, which will need 2L of diesel, leading to spending 120 Rs. per day. In a month it would
be 120*30 = Rs.3,600.
Considering minor maintenance done twice a month amounting to Rs. 400. Total Business costs is Rs. 4000/ month
Fair enough.
DIFFICULTY
DIFFICULT
IDK
In a day the vendor must be making around Rs. 1500. So in a monthly income goes to Rs. 45,000.
So net savings would be: Income - cost of business - family cost = 45,000 - 4000 - 12,000 = Rs. 29,000
Let’s say after negotiation, We need 25000 back every month.
Yes so even after putting money out for family he will have money to pay as interest.
SHARK TANK
COMPANY
Fair enough. After fast forwarding years… Now SHARKS has more than 1 L applicants and we want to automate this process.
Figure out different algorithms that can be applied for a new applicant to check if they would be a credit defaulter or not… What
kind of models would you apply?
Okay so the model designed should take in input variables like candidate’s personal details and quantitative data from the factors points.
The model can be trained to display the output within 2 clusters.
You can skip that, just tell me the algorithms.
ROUND
SENIOR PARTNER
TYPE
MARKET ENTRY
Alright algorithms can be structured into 3 parts
1.
Figuring out data imputation, because data might be missing…the customers are generally from rural areas, thus fair probability
of missing data.
2.
Pre processing the data is very important to clean the data before modelling.
3.
Model should automatically calculate monthly savings (revenue-costs) based on the type of work loan applicant does. This will
help predict capability to pay back.
4.
Algorithms used can be random forests, predictive analytics things.
Sounds good, Banks are just beginning to use random forests.
Candidate was well versed with predictive analysis so a discussion went for “how predictive analysis can be a game changer”
the same, the case ended there.
DIFFICULTY
DIFFICULT
IDK
GROWTH
TIPS & TRICKS
Welcome to a rather slightly challenging but really interesting section of the book. Once again, contrary to belief this
section is not driven by frameworks and you will have to make a new one every case. The silver lining is all those will be
somewhat correlated so pattern recognition is easier. Our recommended trick is to break down the metric (which needs ro
be grown) directly into its subcomponents and then proceed further.
A special caution about this section is that you, at all times, will be enticed to offer creative and innovative solutions. That’s
because the case is open ended and driven by ideas and recommendations. What you need to remember is that while
creativity does fetch brownie points, the point of the case is to structure something as open ended as this and cover every
factor affecting the metric, not just throw creative ideas!
All this being said, we still recommend going through the theory for growth cases mentioned in SRCC casebook and just
keeping that in mind whenever stuck.
Case Club IITM is currently in process of building videos for growth cases as well and should prepare them latest by end of
June 2022. Stay Tuned!
GET THE POPCORN
COMPANY
Your client is a movie theatre chain. They are looking to double the revenue in three years and have approached you for the
same.
Okay, so I would like to understand the problem better. What are the locations in which the theatres are present? How many movie
theatres do they own? Is there any constraint to be considered if we are looking to expand?
There are about 100 theatres owned by the chain spread all over India. The client would not prefer any huge capital investment
which would mean that they do not want to open any new theatres.
ROUND
MANAGER
Oh thats fine.Can you tell me about the major revenue sources of the movie chain?
Yah sure. The major revenue streams of the client are through ticket sales, food & beverage and advertisements. You can focus
mainly on the revenue through ticket sales.
Thank you, sure! So, the total revenue can be formulated as no. of theatres x % revenue from each theatre.
Keeping in mind that the client do not want to open new theatres, the % of revenue from each theatre is what I would want to focus on.
TYPE
% of revenue from each theatre would be total number of screens x % revenue per screen.
Again we are not focussing on increasing the number of screens so % revenue per screen is what we want to increase.
GROWTH
Now % revenue per screen in turn will be
Number of movies x number of watchers per movie x price per ticket
That sounds great! Let’s say the client does not want to increase the number of movies either.
DIFFICULTY
EASY
Oh alright. So we would basically want to increase the number of watchers per movie and price per ticket.
Yes, that’s right. Let me give you some data regarding the price and screen occupancy.
On a weekday, the price of a ticket is Rs. 200 and the occupancy would be 40% , whereas on a weekend, the price of a ticket is
Rs. 300 and the occupancy would be 60%. If we increase the price by 5% then the % occupancy would lower by 2%.
GET THE POPCORN
COMPANY
Oh okay. That’s a set of very useful data I presume. Whats is the average capacity in a screen?
There are about 250 seats in a screen per theatre. Given these details about the price and occupancy, why don’t we include some
numerical calculations to proceed with the case?
Yeah sure. So we can check the actual increase or decrease in revenue by calculating the change if we increase the price.
ROUND
MANAGER
TYPE
GROWTH
DIFFICULTY
Let us see on a weekend.
The average capacity = 250
Price per ticket
= Rs 300
% occupancy = 60%
So revenue collected per screen = Rs 250 x 0.6 x 300
= Rs 45000
Let’s check what happens if we increase the price by 5%. The % occupancy would become 58% and price would become Rs 315 per
ticket.
In this case, the revenue collected per screen would be Rs 315 x 0.58 x 250 i.e Rs 45675.
So through the course of three years, the revenue would be more than double of the existing revenue.
That’s great! I would like to ask just one question based on your conclusion. Will there be any repercussion or things to be
considered with the decision to increase the prices?
Yes. There are few things to be considered which would lead to minor deductions is the calculation of revenue. Since the occupancy would
decrease by a bit, the revenue from food and other utilities would also decrease by some amount. This decrease should be included in
calculating the total revenue from all streams.
Perfect. We can end the case now.
EASY
SAME BLOOD, DIFFERENT GROWTH
COMPANY
Your client is a cement manufacturer that is owned by a family business. The new generation of the family has taken over the
business and is experiencing a slower growth (12%) compared to the market (15%). They are also losing out on the market share.
What is the root cause and what recommendations can you give them?
This sounds very interesting. Can I know where this business is located and since when has the growth been slow?
The business is located in southern and western India. The growth has been slow for the last 3-4 years.
ROUND
Are there different types of cement products that they manufacture? And who are the competitors in the area?
They manufacture only one type of cement. Their competitors are mostly national players.
PARTNER
Okay, I will begin solving the case now. Growth can be promoted through two ways - organic (existing ventures) and inorganic (new
ventures). Should I focus on one of them?
Inorganic growth is out of the question.
TYPE
GROWTH
GROWTH
Okay. Organic growth can happen through increasing revenue. I will define revenue as:
Revenue = No. of units x Avg. revenue per unit
Please focus on increasing no. of units sold.
Okay. I will look at the demand side and supply side constraints now. Supply side constraints can be removed by increasing capability to
supply. Demand side constraints can be removed through brand awareness, value proposition and post sale service. These will increase
demand leading to market share growth.
DIFFICULTY
Nice, and how can you improve the margin per product without increasing price per product?
EASY
To improve the margin without increasing product price, we will have to lower costs. They can be of two types - Fixed (Rent, infrastructure,
equipment and utilities) and variable (Cost per unit involving raw materials, manufacturing, transportation, etc.)
SAME BLOOD, DIFFERENT GROWTH
COMPANY
How can we improve our market share with respect to our competitors then?
To improve our market share we will have to compare our competitors’ and our sales and costs. We can look at the quarterly reports and
compare sales. We can find information about 3rd party vendors in their supply chains and compare costs.
Great, can you summarize the recommendations then.
ROUND
PRINCIPAL
TYPE
GROWTH
GROWTH
DIFFICULTY
EASY
Sure. So the client can achieve organic growth by removing supply constraints by increasing capacity to supply, demand side constraints
through brand awareness, value proposition and post sale service. They can improve margins by cutting both fixed and variable costs.
They can improve market share by comparing the quarterly sale reports of theirs and their competitors and look for 3rd party vendors to cut
costs in the supply chain.
Cool, we can close the case now.
HAND TOOLS MANUFACTURE
COMPANY
Hey, Let’s start with a case. Our client is an international power tools and hand tools manufacturer. They had ventured in Indian
markets 3 years ago. Hand tools segment is not getting enough market share. Please solve this issue assuming a timeline of 3
years.
Okay. I would like to ask some preliminary questions. Firstly what is our client’s objective?
Our client wants to become one of the top 3 producers in India in terms of market share
ROUND
May I know our client’s market share and current top 3 producers’ market shares?
Our client’s current market share is 4%. Top 3 producers’ market share are 40%, 15% and 10%.
PARTNER
Alright, I have enough information to start the case. So in order to grow in Indian markets, our client can focus on current hand tools
business or think of a new business. So is our client open to new business model, or they just want to make their current model efficient?
Our client is open to a new business model
TYPE
GROWTH
DIFFICULTY
MODERATE
Great! For understanding the new business model, it’s important to understand what exactly is the reason for less market share.
May I know if our client is not able to produce enough hand tools or customers don’t buy out client’s tools
Our client has no problem in production. Customers don’t prefer our client’s tools
Okay, since this is a demand side issue, some of the possible reasons for low market share can be1.
Our client’s tools are of low quality
2.
Our client’s tools are not affordable
3.
Customers don’t have trust on our client because they are new in India
Our client’s tools are priced similar to the market average and their tools are of similar quality as their competitors, so most
probably customers don’t have trust on our client’s tools
HAND TOOLS MANUFACTURE
COMPANY
I understand. So current issue with our client is customer perception. Therefore this can be solved using following steps1.
Better marketing - This can improve customer perception
2.
Mergers and Acquisitions or Joint Ventures - Basically use the brand image of another competitor but use your resources to ‘[
Let’s focus on the joint venture part. According to you, what are some points to be considered while going forward with joint
venture?
ROUND
PARTNER
TYPE
GROWTH
Some of the points to be considered while going forward with joint venture are1.
Does our client have enough residual cash and capital to invest in this venture?
2.
Is there cost synergy? That is if the net cost after venture less than sum of costs of two firms individually?
3.
Also which firm should our client join with? As in should they join with current market leaders or relatively smaller players?
Okay our client’s response to the above factors are as follows1.
Yes, they have enough residual cash to go forward with the joint venture
2.
This should be analysed with the help of financial experts
3.
We are unsure about whom to target for joint ventures
Could you please help our client get more clarity on the last factor?
Sure. So collaborating with the second or third largest producer is a good idea because they want to grow in this industry with the help of
our client but at the same time, they have fairly good brand value which our client can use.
That makes sense. Thank you for your inputs, we can close this case
Thank you!
DIFFICULTY
MODERATE
DODGING THE BOUNCER
COMPANY
ROUND
PRINCIPAL
Hey, let’s start the interview with a case. Your client is a senior at a NBFC (eg. American Express). The NBFC’s profits are lower
than their competitors. It’s low particularly for loans on 2-wheelers. When people go to dealerships, there's an agent who takes
your documents and he issues a loan to the customer on behalf of the NBFC. Since it’s a 2-wheeler loan, most customers are
usually taking a loan for the first time, so there’s not a lot of credit history to bank on. Our collection costs on these loans have
gone up.
⅓ of all EMIs bounce. ¼ of these bounces get resolved. ¾ don’t get resolved. 80% of these are easy to collect, 20% are hard to
collect. Classification of easy/hard depends on the age of loan. Easy loans account for 15% of total collection costs, hard loans
of 8% of total collections costs. How can we help this client lower their collection costs?
Ma’am, I would like to start off by asking some preliminary questions. May I know the geographical location of this NBFC?
The client is based in India.
Can I get a clarification on what is an EMI bounce? Also what are the different ways to collect these EMIs that have bounced?
TYPE
GROWTH
For scooter loans, it comes to around 2k per month. EMIs are deducted from the bank, 5th of each month, automatically. It
bounces if no money is in that account. There are 3 ways to collect these - Phone calls, field agents and experienced field
agents.
Got it, should I focus on easily collectable EMIs or the hard ones?
You can focus on both, don’t worry about the classification too much.
DIFFICULTY
MODERATE
Okay. I’ll try to understand the POV of a debtee who failed to pay the EMI. Why is there no money in the bank on the day before 5th of a
month? It could be that some of them get their monthly salaries a few days after the 5th of a month. To help them, we can provide optional
dates that they can pick on which day they pay the loan. Can I know what the usual mode of payment for such EMIs are?
It’s usually in cash.
It could be that many of them have the means to pay but they don’t pay, because the money is not deposited in the bank. They have the
ability to borrow, but they don’t take the EMI payments seriously.
DODGING THE BOUNCER
COMPANY
Very good. So, how can the client help a debtee pay their EMIs on time?
I will have to think about this, please give me a moment. Does the NBFCs have a lot of branches or EMI collection centers in the country?
The NBFC is not very well established yet, so they don’t.
ROUND
PRINCIPAL
Booths can be set up in areas where there’s a larger population density of debtees, so they can pay there on their way to work or without
having to travel too far for a collection center. The NBFC can even tie up with local banks to help the debtee deposit his money there.
Besides this, we can work on an online collection portal if the NBFC has one, and try to enlighten customers when they take loans that
there is an online mode of payment. Since the monthly amount usually comes to around Rs 2,000 only, the client can even use UPI to
collect the money through a QR code.
That’s good enough. You solved it well, we can close the case now.
Thank you, ma’am.
TYPE
GROWTH
DIFFICULTY
MODERATE
HAMMER JOINT
COMPANY
Your client is a non-power tools manufacturer (hammers, nails, etc.) These are commodity products, where from a customer’s
perspective, one supplier can’t really be differentiated than another. Our client is present in 40+ countries and is top 3 in every
country. They entered India 3 years ago and have captured only 1.5% of the market share here. The senior global management is
upset with Indian office’s performance because of this. They have given the office a goal of reaching top 3 within the next 18
months. The Indian office is willing to place big bets to achieve this. How can we help the client out?
Okay. I would like to understand the company’s business model. Also, where is this company present?
ROUND
PARTNER
The client’s business model is such that they manufacture outside India and sell through dealers across India. They operate
across India.
Got it, and who are the client’s competitors? I would like to understand who are the typical customers of the industry’s products as well.
There are 3 mains players with a market share of 35%, 15% and 10%. The rest are local players spread throughout the country.
The customers are dealerships, trade unions and retail individuals.
Okay, is there a specific product category in which they need to become the leader of?
TYPE
GROWTH
No, you don’t need to focus on a specific tool category.
Oh, great. And should I consider the COVID pandemic?
There’s no need to consider the pandemic.
DIFFICULTY
MODERATE
Thank you. I will start solving the case now. I will define market share as:
Market share = No. of company’s products sold/ Market size
Total no. of products sold = No. of dealerships x Avg no. of tools sold per dealership
Should I focus on one of these parameters?
Yes, please focus on avg no. of tools sold per dealership.
HAMMER JOINT
COMPANY
Okay, so I’ll look into supply side constraints and demand side constraints. Are there any supply side constraints?
There are no supply constraints since it’s a global company and they manufacture their products outside India.
Right, so there might be demand side constraints then. Growth can be of two types: organic and inorganic. Organic growth can be through
advertising, free samples, etc. Inorganic growth can be through acquiring a big player or multiple small players.
Good job so far, let’s focus on inorganic growth.
ROUND
PARTNER
Okay, so I’ll compare acquiring a big player versus acquiring small players then. I’ll benchmark these based on time, money, value,
synergies and conflict of interests. Over all these factors, acquiring small players will take more time, money (buffer and additional
acquisition cost and time per unit), provide lesser value since big players will have a fully constructed supply chain, lesser synergy since
combining multiple companies will result in loss of value and also bring up conflict of interests within the smaller players.
Therefore, my recommendation would be for the client to acquire one of the big 3 players.
Awesome, good work. That’s it for this case, we can close it now.
TYPE
GROWTH
DIFFICULTY
MODERATE
Thank you, sir.
UNCONVENTIONAL
TIPS & TRICKS
Welcome to the most fun section of case prep. The best part about this section is that there is no theory! Every case uses a
new framework. That being said, a smart person can figure out patterns. For ex if you understand profit framework, you
won’t face difficulty with case involving savings (Savings = Income - expenditure). Multiple such patterns can be observed
if you solve a large number of cases. But our advice would be to not rely on pattern recognition but rather treat each case
as a new problem and use logic to build your own framework. If you rely too much on patterns, overfitting happens and you
may miss certain nuances in your actual interviews.
The heads of the club have personally found the journey approach to be something that can be extended to multiple
situations - customer journey, product journey, pre-during-post format etc. Similarly try to find an approach that suits in you
multiple situations. This can really help you dodging bouncers in actual interviews.
Although we mentioned that there is no theory per se, we still recommend going through the theory for unconventional
cases mentioned in SRCC casebook and just keeping that in mind whenever stuck. Do check the pricing framework as well.
Case Club IITM is currently in process of building videos for unconventional cases as well and should prepare them latest
by end of June 2022. Stay Tuned!
SPICEJET IS ALWAYS LATE
COMPANY
Hi. Your client is SpiceJet and they have seen an increase in their turnaround time. Please figure out why and help them.
Sure. I’d first like to understand what is meant by turnaround time.
Suppose a flight is flying from location A to B. Turnaround time is time from right when it leaves A to when it lands again in A.
Okay thank you. To know more about the client, do they operate domestic flights only or international as well. Are there any particular set
of 2 locations that have seen an increase in the turnaround time?
ROUND
Let’s focus only on domestic and No, the issue isn’t with any particular city.
BUDDY
Why is increase in turnaround time an issue? How much has the increase been and since when? Are other airlines facing similar issues?
It leads to scheduling issues and delays. The increase is 30 mins in the last 8-9 months. No, only we are facing this issue.
Great, my approach would be to break down the journey into steps and identify where the issue could be arising from.
TYPE
UNCONVENTIONAL
Sure, Go ahead.
Alright, so : Turnaround time = Time to leave A + Flight time + Time at B + Flight time + Landing time at A
Could you tell me if we know where the issue is arising from?
We have noticed an increase in time spent at B.
DIFFICULTY
Alright, time spent at B = Runway time (arrival) + Parking time + deboarding time + maintenance + onboarding + take-off time
Have we seen an increase in any one of these parameters?
Yes, let’s look at the maintenance time.
EASY
I would like to divide maintenance into 2 types of activities :
SPICEJET IS ALWAYS LATE
COMPANY
→ Inside : Cleaning + Check & other operations
→ Technical : Fuel filling + engine checks + other technical checks
Could you tell me where have we seen an increase?
Sure, we believe the issue lies on the technical maintenance side.
ROUND
So, time spent on technical maintenance can be written as :
Time for technical maintenance = # of activities x time taken/ activity
Have the number of activities/checks gone up according to maybe new regulations?
No, the # of activities remain the same.
BUDDY
Alright, then time/activity can be written as :
Time/activity = # of labors x time/labor
Have the total number of labors decreased?
TYPE
No, in fact time/labor seems to have gone up.
I’ll split time/labor as :
UNCONVENTIONAL
Time/labor = Actual working time + Idol time (efficiency)
Actual time can be affected if there has been a change or the efficiency of labors could have gone down for certain reasons.
The efficiency we believe has remained the same. What could have changed for the actual time?
DIFFICULTY
EASY
There could have been a change in labor itself, change in processes (regulations), change in tools or a change in the flight.
You’re right. A few months ago the entire fleet of spicejet was changed from Boeing 737 to Airbus 747 and the workers have yet
not become comfortable with the new flight and how to maintain it. We can close the case here, Thank You!
DEI EFFORTS
COMPANY
Let’s start with a case now, if you were in McKinsey & you want to further the DEI (Diversity, Equality, Inclusion) efforts as head
of the organisation, what will you do?
To understand this case better I have a few questions. What timeline are we looking at and in which geography should I focus?
We are looking for a 1 year period. We will be focussing on only mckinsey India for 1 year.
ROUND
SENIOR PARTNER
Alright, I will be approaching the problem using 4 steps :
Firstly we need to understand
1.
What does diversity & inclusion mean in the context of Mckinsey?
2.
Setting the scope of what we want to achieve given the scope of Diversity & inclusion.
3.
Understanding based on scope what kind of Changes to implement
4.
Ensure changes that we implement → based on metrics
Is there any particular segment you want me to focus on?
TYPE
UNCONVENTIONAL
Let’s focus on LGBTQIA+ community. Can we start with what do you think are the constraints for this community?
I think the major constraint is no member of this community is openly out.
That’s true, suggest me 3 things you would do to overcome this roadblock?
DIFFICULTY
EASY
My major idea for any of the initiative is to ensure people bring their own self to work. So,
1.
When people join a company, proper orientation is set up making them aware of the resources they can harness.
2.
Encourage them to open out to everyone
3.
Organising events & sensitivity training for the office as a whole.
Basically we need to create a safe space for this community.
DEI EFFORTS
COMPANY
Sounds good. Now Suppose you are the Head of DEI at McKinsey and you are organizing an events as a part of DEI initiatives.
Design a budget for the same.
Can I get some data for the calculations? As you said earlier we are looking for a 1 year period, how many events should I consider?
Sure. You can assume any number.
ROUND
SENIOR PARTNER
Cool I will consider 1 event/ month to ensure continuity of the initiative.
No, let’s consider 20 events / year.
Cool, I will like to take some time to jot down points for what each event would entail.
Sure, go ahead.
TYPE
UNCONVENTIONAL
DIFFICULTY
MODERATE
EASY
IDK
So, I have broken down the budget as Budget = total no of events * cost per event
Cost of event will include Cost per attendee which will be a function of (food, beverages) + miscellaneous cost which will be a function of
( facilitator, sound system, etc.) + venue cost
Cost per event = (no. of attendees * cost per attendee) + miscellaneous cost + venue cost
Should I go with any specific number for venue cost?
You can assume any number that makes sense to you.
So I assume the event is hosted in a tier 1 city, thus approximately 5L for venue. 1L for facilitator and miscellaneous.
What is the participant turn out I should consider for 1 event?
DEI EFFORTS
COMPANY
Consider 100 participants
Okay so cost for attendees = Number of attendees * Cost/ attendee = 100 * Rs. 2000 = 2L
Now total cost is 8L for 1 event, for 20 events it will be 8 lakhs * 20 = 1.6 crore
Budget of 1.6 crores/ year is required for organizing events for DEI initiatives.
Fair enough, do you think this cost justifiable to the company?
ROUND
SENIOR PARTNER
It's always important to work in an environment that nurtures the employees. It lets them work to full potential when they don’t have to
hide and helps bringing out the best in people. Promoting such an environment we bring a diverse perspective to the company & clients.
Moreover such events will create a sense of belongingness among employees which will in turn reflect in their productivity. I think it’s
definitely worth the amount of money we are spending.
Sounds good, we’ll wrap up the case now.
TYPE
UNCONVENTIONAL
DIFFICULTY
MODERATE
EASY
IDK
COVID 2.0
COMPANY
Your client is The Ministry of Health, GoI. It needs help with the global eradication project of viral disease. Currently 5 countries in
the world are infected with Rubida virus. One of them has reached Mckinsey and they wanted help to figure out what kind of
programs they should initiate? How will you help them come up with a strategy for the same?
To understand the scenario better, I would like to ask few preliminary questions. How is the virus transmitted? Is there an outbreak in India?
Transmits from humans to other humans. There is no outbreak as such but just prevention scheme that countries want.
ROUND
SENIOR PARTNER
Is there a vaccine already available? Any details on administering the vaccine and storage?
Yes we already have a vaccine. Vaccine can be delivered through oral means. It should be stored at 4-8 deg at all times.
What is the dosage requirement?
You need 5 doses of vaccine in a time span of 1 month.
TYPE
UNCONVENTIONAL
Is there any focus on particular city/ state? Are we looking at a particular time frame?
Consider for entire India. Objective is to prevent any new infections in the next 2 years.
So just to clarify the PS again: We need to work with the Ministry of Health to plan to Eradicate virus in the Country and prevent any new
Infections in next 2 years.
DIFFICULTY
EASY
IDK
Right.
One of the aspects of doing this is Vaccination. We should do it according to a certain strategy. Is there a particular age group that is most
affected by this virus. They should be targeted first for vaccination.
COVID 2.0
COMPANY
The target age group is < 5 years.
Alright so second will be targeting the age group of < 5 years for running the vaccination campaign. Then,
→ First step would be estimating the number of doses we need and figuring out the supply.
→ Next, the supply needs to be sent to govt/private hospitals all over the country. Covering tier 3 cities/rural areas should be ensured.
→ Awareness campaigns need to be run so that guardians willfully get their kids vaccinated. Maybe the PM can address the nation.
→ Lastly a digital infrastructure needs to be setup to keep records of doses and also raise complaints/feedback.
ROUND
Fair enough, now I would like you to calculate the total number of vaccine doses required and how many years would it take for full
vaccination?
SENIOR PARTNER
Vaccination is for children < 5 years. Population of India is 1400 Mn. 30% of them lies in 0-18. So % of them under 5 would be,
(5-0)/(18-0) x 30% = 8.33%.
This is roughly 115 Mn. How many children have completed their partial dosages? And for how many years is the vaccine effective?
TYPE
UNCONVENTIONAL
90% have received 0 doses, 9% have received 1 dose, 1% fully vaccinated. Once taken it is effective for a lifetime.
Alright, so total doses required would be 115 Mn x (0.9*5 + 0.09*4) = 560 Mn doses. Based on the vaccination centres capacity and the
distribution of children aged < 5 in different states, the supply chain can be set.
Priority should be given to children who have taken 1 dose, so that they complete the vaccination within the same month. Across a 2 years
time period the complete vaccination can be executed, assuming we vaccinate 560 Mn / (24 x 30) = 0.7 Mn vaccines per day. This seems
achievable given what we witnessed during covid.
DIFFICULTY
Great, we’ll wrap up the case now. Good job saving the country.
EASY
A BUMPY RIDE
COMPANY
Your client is a head of customer service of a ride sharing cab company. He is observing that the number of client complaints is
going high in last one year. You are required to find out why and give the needed recommendations.
Okay. That sound interesting. I would like to get more clarity over the issue so let me start by asking few preliminary questions. Where all
do the cab company have rides? What kind of services other than normal cab rides do they provide?
Let’s focus only on normal cabs. Around 80% of the services are available in major metro cities like Chennai, Mumbai, Bangalore
and Delhi.
ROUND
PRINCIPAL
Okay. How do they get customer feedback? Is there any specific toll number to register their complaint or something? Do the other
competitors in the market also face a similar issue?
The feedback from the customers is collected majorly from the company’s app, sometimes the customers write to them on emails
as well. We do not have any information about the issue in other competitors.
Oh fine. So based on my understanding, I’d like to lay down the user journey. Then analyse each and every step, identify the prime problem
as in where is the issue, find the reason behind it and propose a solution.
TYPE
UNCONVENTIONAL
DIFFICULTY
Yes sure. Go on.
The customer journey in a cab ride can be of 4 major steps.
i) Booking the cab
ii) Waiting period
iii) experience in the cab ( ride )
iv) Transaction of money after the ride
Before I proceed further, can I clarify few more things?
Yes why not! What other information do you think is needed to proceed?
EASY
idk
Yeah, So to keep the focus on specific steps, could you tell me the timeline of maximum complaints like do we get more complaints before
or after the ride? During which part of the day do we notice more complaints?
A BUMPY RIDE
COMPANY
ROUND
PRINCIPAL
That’s a good question to ask. We find that majority complaints get registered before the ride begins and they are mostly during
morning and evening.
Oh okay fine. So now proceeding with the next step after mapping out user journey, since the complaints are majorly before the ride begins,
we can say that it concerns with the first two steps in user journey - Booking a cab and waiting period.
Further breaking the first step Booking cab :
Opening the app → navigating through to put the location → checking cab availability → get the driver and cab details
The waiting period depends on the cab availability, and further conditions at the moment.
Seeing that the complaints are majorly during the morning and evening, we can sense that the timings correspond to the peak hours when
the work of the day starts or ends, which implies that a lot of people need to travel during such time. Can we conclude that the main
problem is with cab availability?
Yes, that’s correct. What do you think are the reasons behind this problem?
TYPE
UNCONVENTIONAL
DIFFICULTY
There can be two major reasons due to which the issue rises.
→ We do not have enough cabs to cater to required demand.
→ Drivers deny pickup if drop location is far or remote.
That’s good. What all recommendations or solutions can you give to face this issue?
I have 4 major ideas in mind with the help of which we can face the issue and work on improvements.
a) To add more cabs in the network
b) To introduce other services like autos/bikes which can be used for far and remote places
c) Provide drivers with incentives to go far.
d) Partnership or tie up with IT parks or companies for availing the pre booked cab services which will be parked for them
before the employees get down from work.
MODERATE
EASY
idk
Cool, good work. We can end the case now.
PE CARES ABOUT HEALTH?
COMPANY
Hey! Let’s start with a case. Your client is a Private equity fund that wants to invest in a 1000-bed hospital in Gurgaon. They want
25% RoI and for that Profit needs to become 3 times in the next 5 years. How do you evaluate this investment?
BAIN & CO.
Sure, I would like to ask a few questions before deep diving. What kind of a hospital is it? Is it a high profile hospital or does it target
general population?
It’s a multispeciality hospital mainly targeting middle and upper middle class.
ROUND
How many competitors do we have in that area in Gurgaon? What is our market share?
We have 3 major competitors and each have equal share.
PARTNER
How has our growth looked in the recent years? How has it been for our competitors?
Our client has been de-growing in the last few years. We don’t have data for the industry.
Lastly, what exactly is the objective? What is meant by evaluating the investment?
TYPE
UNCONVENTIONAL
We need to discuss what necessary steps need to be ensured so that the money invested gives us the required RoI.
Okay sure. Since we’re talking about RoI, I will focus on financial aspect first. I’d like to focus on profits and see how we can make it 3x in
the given timeframe. Does this approach seem fine?
Yes, you can proceed. In fact let’s focus on revenues. What according to you are the various revenue sources for a hospital?
DIFFICULTY
MODERATE
Beds, Lab services (X-ray etc..), Surgeries, Doctor consulting. Would you want me to focus on something specific?
Right. Let’s focus on beds.
Sure, since the patients are the ones occupying the beds, revenue from beds would be :
PE CARES ABOUT HEALTH?
COMPANY
Revenue from beds = Total Patients that visit x % that are admitted x Revenue/patient
We can look to increase each of these 3 factors to increase revenues.
BAIN & CO.
That’s fine. Can you think of a method that uses beds as a base and not the patients.
Sure, so basically shift from demand side to supply side.
Revenue from beds = Total beds x % occupied x Revenue/bed
So, the first question would be if we have the capacity to increase beds as that can increase revenues.
ROUND
PARTNER
No, we don’t have the capacity to expand number of beds.
Okay, then moving on to % occupancy, I’d like to understand why beds get occupied. I believe it’s due to surgeries and hence if we
increase number of surgeries, we can increase % occupied.
Okay and how can we increase the surgeries?
TYPE
UNCONVENTIONAL
There are 2 ways → New surgeries : Add new surgeries that can be performed in the hospital.
→ Old surgeries : Doctors can push for surgeries even when it’s not extremely urgent.
All this is fine but don’t you think you are missing something that you need to judge whether you can increase % occupied?
Umm, I need a minute to think…
I would need the current level of occupancy of our hospital. And also the level occupancy of competitors to gauge if there is a scope to
increase.
DIFFICULTY
MODERATE
Very Good. Our current level is 60%. Competition also lies in the range of 50-60%. What do you think that implies?
It means the 4 players in this area are covering the requirement and that to increase our % occupancy, we’ll have to make
customers/patients choose our hospital over competitors.
PE CARES ABOUT HEALTH?
COMPANY
BAIN & CO.
ROUND
Very Good. What factors do you think does a patient consider when choosing a hospital for surgery.
Thinking from a patient’s perspective, I think the following factors are important.
→ Brand value of the hospital (and if there’s any negative PR against it)
→ Reputation of the doctor
→ Availability and accuracy of the surgery
→ Overall services and treatment at the hospital
Are you sure you aren’t missing something?
Yes, of course, the price. It is a very important factor for Indian middle class.
PARTNER
TYPE
UNCONVENTIONAL
DIFFICULTY
MODERATE
That’s right. We can close the case here. You did really well.
SINGHAM OVERTIMING
COMPANY
Hi, let’s start the interview with a case. Your client is The Superintendent of Police. It’s found that their average working hours has
increased from 9 hours to 12 hours per day. Figure out the reason for this issue.
BAIN & CO.
To know more about the issue, I would like to ask few preliminary questions- What exactly defines his/her position, in which branch of the
police department and where is he/she posted?
He is the Superintendent of Police, Crime Branch, Chennai. You can assume that the entire city is under his control.
Okay, when did the rise in working hours start and why is this exactly posing a problem?
ROUND
PARTNER
The rise has been there for the last 6 months. This is an issue for the client because it makes it difficult for him to devote time for
family, etc.
Ok.
average working hours = total working time / total number of cops
Has the number of cops changed in the last 6 months? If yes, then could you tell me by how much?
There has been no such change in the number of officers.
TYPE
UNCONVENTIONAL
Okay fine, so it’s the total number of working hours that has increased over the time. The working hours can be divided into two main
categories→ Total time spent for the job
→ Idle time
The increase in total working hours can be due to increase in either of them.
Yes, the total time for the job has changed.
DIFFICULTY
MODERATE
Ohkay. Now I can again divide the time spent on work into three categories→ Travel time (for investigations and general patrolling)
→ On site work - cases like murders and robberies
→ In station work - Brainstorming and getting data
If you could tell me where there has been major change, I can analyse that part in detail.
SINGHAM OVERTIMING
COMPANY
BAIN & CO.
That’s an accurate division I would say. You can focus on the time spent in In-station activities.
Sure, so the major In-station activities would include → Brainstorming on the cases
→ Getting complaints filed
→ Obtaining & Analysing data.
Since the number of cops hasn’t changed much, I think there has been an increase in the number of complaints filed.
That’s correct. The number of complaints registered has gone up.
ROUND
PARTNER
Ok. So we can look at the reasons as to why are there more complaints over the last 6 months.
Number of complaints = Number of people who face an issue x % of them who chose to file complaint.
May I know if the number of people who face issue has increased ot the % who complaints? (given the number of police stations has not
changed much)
Yes, the percentage of people who choose to complaint has increased very much compared to the number of people who face an
issue.
TYPE
UNCONVENTIONAL
Okay. Let’s look at the user journey of a complainant.
Crime happens → Decision making (whether to complain about it is worthy? Depends on the awareness) → Reaching station → Entering
experience → policeman attends them (friendliness and puts his opinion) → complaint is filed
Great, it’s known that the Government is encouraging the victims to file complaints and that the process has become more
accessible. What changes do you think could have been made to the user journey explained previously?
DIFFICULTY
MODERATE
So the more accessible approach in addition to the existing user journey would be having
→Complaint boxes (outside stations and in some parts of the city as well )
→ In-home service
And a purely new initiative would be having the whole process online.
Yeah right. The complaints can be filed easily through WhatsApp helplines. But then how do you think this leads to overtiming?
SINGHAM OVERTIMING
COMPANY
BAIN & CO.
ROUND
PARTNER
Even though the process becomes easier for the public, it can lead to too much work to the cops like → fake complaints
→ Increase in cases (due to easier reporting)
→ Verification and authentication of each complaint
→ Reading and responding to all messages
→ Visiting the victims and collecting more info
→ finding the criminal with these data
These tasks would require more hours of input from the staffs given that the labour count remains unchanged.
Perfect! But there is one issue that you may be missing which drastically increases the number of messages. Can you think of it?
Is it something apart from fake complaints?
Yes, in fact chennai is a disciplined city and as such fake cases are very less.
Oh! Alright, then duplicate messages is all I can think of! Maybe multiple family members are texting to increase chances of police working on
the case as early as possible.
TYPE
UNCONVENTIONAL
That’s good reasoning and you’re on the right track but think more!
Well, for public crimes, a lot of crowd gathers and many of them would be texting what they saw.
Alas! Brilliant. Do you have any recommendations?
DIFFICULTY
MODERATE
Assuming fake reporting isn’t a problem, I have 2 solutions that can help here :
1. Region wise number : Chennai can be divided into multiple sectors, each with its own whatsapp number to reduce the load on one
number. For each team there can be a different sub team with size of sub team depending # of cases in that region.
2. Basic Format of message : We can ask people to send their complaint in a particular structure (such as mentioning type of crime, exact
location in a region etc..) and use a bot to filter out duplicate complaints so that effectively police works on 1 complaint only.
Great recommendations. Good job!
THE MUSK ISSUE
COMPANY
BAIN & CO.
Your client is Elon Musk. He has three daughters and a son. It’s known that the eldest daughter is smart and brilliant. You are a
successful consultant at Bain & company. He has noticed that the consultants are highly smart and wants his eldest daughter to
join one of the Big Three consulting firms (MBB). How can you help him on this?
Can you tell me more about the daughter?
Yeah sure. She is a 20 year old, pursuing Bachelors in Physics from Harvard University.
Ohkay. Are we looking for a path for her to join any of these consulting firms or a framework that would convince her to join consultancy?
ROUND
MANAGER
TYPE
UNCONVENTIONAL
Mr. Musk wants her to join consultancy for sure.
Cool, so the task is to make a plan for her to enter into the field. Let me devise a process for the same.
Get her interested in the Big three → Preparation and priority → Applying for the firms and Interview.
i. The first step can be achieved by activities like Coffee chats with consultants, get her to act as a consultant in few mini projects of her dad’s
company.
That’s all fine. Let’s focus on the part where she has to decide among the Big Three.
Fine. Let’s look at the various parameters in the journey of a consultant that would help her to make a sound decision.
I. Being an aspiring consultant, in the “pre” period, the level of interactions and seniors she is able to connect with.
II. After joining the firm, during her term, the working culture and the types of industries involved in the projects .
III. Talking about the time of exit, the number of options and the ease of exit
It’s pretty good. Similarly can you list the factors to judge the learnings?
DIFFICULTY
MODERATE
Sure. I can think of 4 factors → The impact or contribution
→ ownership of work and leadership
→ Alignment of work with Future goals
→ Skill set acquired.
We can look at each of these factors in detail as well.
THE MUSK ISSUE
COMPANY
Alright! From the available information, can you make a guess of the type of projects that she’ll be interested to work in?
BAIN & CO.
Yeah, so the major projects that a consulting firm works with are either analytical (analysing an issue and its root cause) or the ones with
social impact or related to Growth and Implementation. Out of these, I think she’ll be interested to work on projects that deal with growth and
implementation like her dad as even Mr. Musk likes to build things from scratch.
Good Guess. Now, to make an informed decision, she needs to know about few other things like culture fit, interaction and exit
options (what can be her incentives). Can you elaborate on these?
ROUND
MANAGER
TYPE
UNCONVENTIONAL
DIFFICULTY
MODERATE
idk
Yes sure. The cultural fit related to work would include
→ taking ownership in the projects
→ flexibility to do projects
→ work life balance
In case of things not related to work, it mainly depends on people and the activities. Are the people → approachable
→ collaborative
→ totally formal or informal .
Do the activities include like :
→ Case-outs
→ Sabbaticals
→ Cool-offs.
These sum up the points to look at for the culture of the firm.
The interactions that can happen with the public and the partners can either be online or offline. The online mode would include → Taking surveys
→ Queries and responses on Quora
Whereas in offline mode, the ways of communication and interaction can be among people→ Who are currently working in the firm
→ Alumni (who have left the firm)
Great. What can you say about the exit options?
THE MUSK ISSUE
COMPANY
BAIN & CO.
Coming to the case of exiting from a firm at a later point in her life, the incentives could be → number of exit options
→ ease of exit, which again depends on the reputation and Alumni network of the firm.
All these listed out factors, if looked into in detail, must be enough for her to make a final decision in choosing one among the Big Three.
Very good job! I believe that Mr. Musk is relieved, we can close the case.
ROUND
MANAGER
TYPE
UNCONVENTIONAL
DIFFICULTY
MODERATE
idk
Thank you!
MAD ABOUT ART
COMPANY
Let’s start with a case now. So, there’s an upcoming mega multi cultural centre in Delhi what should their operating model look
like?
Cool, I would like to know more about the objective behind the multi cultural centre?
It’s a non-profit organisation and wants to be financially sustainable to operate. Their objective is to promote Multidisciplinary
intermingling of different art forms and function as a space to explore & work at the intersection of different arts.
ROUND
PARTNER
And how about the construction status of the building?
The building has just been built.
What all spaces have already been constructed within the building?
TYPE
UNCONVENTIONAL
DIFFICULTY
MODERATE
IDK
It has auditorium, theatre, gallery space & museum space. So, we are entering the design space & we should decide what
should populate in the building, what potential revenue streams could we have?
Okay so since this center has special emphasis on being cultural I think we should first have a look at the design i.e. the cultural
infrastructure, following questions need to be answered to decide the operating model :
1.
What is the kind of art / artists should we promote? (for ex- could be based on community or age of art etc..)
2.
Who are we looking to target as customers? (Only people who appreciate art or general crowd)
3.
How are we going to showcase their art? (Performances like musical or plays, exhibitions etc..)
4.
What services will we offer alongside? Eg. what kind of food, beverages, etc.
5.
What other facilities will we have? Eg. washrooms, play area for children, parking etc.
6.
Are we going to market this more of a mall or anything else?
Sounds comprehensive. Go ahead.
MAD ABOUT ART
COMPANY
Okay Secondly we need to analyse that based on the constraints, infrastructure, how do we forecast the revenue (decide the model).
Third, we will validate the operational feasibility, check if its sustainable in future, given the revenue forecast & design.
And finally the risks associated with all of this.
Is there any particular segment I should be focussing on?
Okay, let’s focus on Cultural infrastructure… Can corporates somehow benefit from this centre?
ROUND
PARTNER
TYPE
UNCONVENTIONAL
→ I think It could be a place where corporates go to retreats & that could be a stream of revenue to the multicultural centre as well.
→ Moreover, the plays and exhibitions can be sponsored by some corporates which is a win-win for both parties.
Fair enough, can you think of possible revenue models for the centre. Or perhaps the various sources?
Sure, I can think of sources from stakeholders perspectives :
→ Customers : Entry Pass + Merchandise sale + f&b + parking + tickets to plays
→ Artist : Rent for the space leased + commission on sales
→ Corporates : Sponsorship money
→ Government : Grants for promoting Indian culture.
Well, the government point is definitely a new but important perspective mentioned. Well done, we can stop the case.
Thank you.
DIFFICULTY
MODERATE
BATTLE OF WATERLOO
COMPANY
You are the minister in the court of a king, who wants to wage a war against the neighboring kingdom of similar size. You have to
convince him against doing so. How will you proceed?
BAIN & CO.
Firstly, what is the reason to the king wants to wage the war? Why does the minister want to convince him not to do so?
The neighbor is vulnerable to attack currently. Currently, the resources in the kingdom are frugal because of recent wars and the
situation will worsen if the war is waged.
ROUND
Is the war set in a historic era? This will affect the strategies and resources that are taken into consideration.
BUDDY
Yes, it is set in a time where guns and cannons did not exist. How would you do a cost benefit analysis?
TYPE
UNCONVENTIONAL
Assuming that the king is rational, I would like to try to find out if the war can be won post the cost benefit analysis. On the costs front:
●
Effect on resources: War requires massive amounts of reserves, which is already low currently; a major issue.
●
Loss of confidence: You had mentioned that there have been many wars recently and another war can cause friction with the people
of the kingdom.
On the benefits front:
●
Resources: It is possible that the resources gained from another kingdom will be greater than the losses.
●
Image of victor: People will consider the king to be brave. This is definitely a big + for economy of the kingdom.
Do I proceed with quantitatively calculating the costs and benefits?
No, that is not necessary. You can proceed with the case. I recommend you ask as many questions as you want.
DIFFICULTY
MODERATE
Alright. For the next step, I would like to separate the analysis as follows:
●
Preparation for the war:
○
Resources like food stocks, water, camps etc.
○
Alliances, if any
BATTLE OF WATERLOO
COMPANY
●
Army:
○
○
Size of the army
Number and quality of weapons.
BAIN & CO.
●
ROUND
BUDDY
Actual war:
○
Strategy
○
Security of the other kingdom’s fort
○
Vulnerabilities of the other kingdom
○
Geographical advantages, if any
So let me begin with the preparation for the war. You had already mentioned that the kingdom is facing issues with respect to the resources.
What is the situation of the other kingdom?
The other kingdom is marginally better equipped when it comes to resources. However, the other kingdom has large reserves of
resources not related to the war, like gold and silver.
TYPE
That means that this is not a deal breaker in the decision making process. Moving onto the next point, how many alliances do we have? How
many alliances does the other kingdom have?
UNCONVENTIONAL
Both the kingdoms have the same number of alliances with very similar kingdoms. No competitive advantage can be gained in this
situation.
DIFFICULTY
MODERATE
MODERATE
Considering the army, are the sizes of armies different?
Yes, the other kingdom has a slightly bigger army in terms of size. They also have a better trained archers, while we have better
trained cavalry and foot soldiers.
Considering the actual war, does the other kingdom have any vulnerabilities, for example, a major trade route that can be blocked or a water
BATTLE OF WATERLOO
COMPANY
source that can be withheld?
No, there are no such vulnerabilities.
BAIN & CO.
Is the reverse also true?
Yes, there are no such vulnerabilities that the other kingdom can exploit with respect to trade or water.
ROUND
The next point would be the battle ground itself. Since we will be attacking their territory, what is the geography like?
BUDDY
The other kingdom is surrounded by hills on all sides. The border that is shared with our kingdom is marked by a river.
Just to clarify, we only share the border on 1 side and that is marked by a river. So the river has to be crossed to reach the other kingdom?
That is correct.
TYPE
UNCONVENTIONAL
DIFFICULTY
MODERATE
MODERATE
I think this is a major vulnerability while attacking the neighboring kingdom. You had mentioned that they have better archers while our army
has better cavalry and foot soldiers. Firstly, our army will face difficulties in crossing the river. Secondly, the archers of the opposing kingdom
can easily fire arrows from the hills and take down our army.
Organizing the analysis so far, the incentive is the large amounts of wealth (gold and silver) that the neighboring kingdom has. Both the
kingdoms are equally equipped with resources for the war. However, the other kingdom has a major advantage when it comes to the actual
war, as the geography of the battleground suits their army well. This is the reason that I would use to convince the king to not attack the
neighboring kingdom.
Great work, we can close the case now.
MILKY WAY
COMPANY
Hey! Let’s start the round 2 of the interview with a case. The farmers have had a long term engagement with the dairy industry.
The question is that why don’t the farmers monetise the income stream from their animals?
Alright. Are we talking about farmers from particular parts of India. Does everyone have animals? If yes, cow/buffalo or poultry?
Yes, let’s talk on a country scale. You can assume majority of them to at least possess a cow/buffalo. Let’s just focus on them.
Okay, what are the possible ways of monetizing the milk produced then?
ROUND
PARTNER
TYPE
UNCONVENTIONAL
How about you take a guess.
Cool, I see 2 methods for the farm milk to reach markets :
➔
Local markets : The farmer directly deals with the local shops in their geography.
➔
Expanded markets : The farmers use a middle man / mediator to deliver the goods to the markets outside their geographies.
Is this correct?
The analysis you did is partially correct. So how the market works is that there are 2 sub channels in the mediator channel.
➔
Official Channel
➔
Local Aggregator Channel
Thanks a lot, so thinking along the lines of the mentioned mediator channels, the supply chain should work like this:
➔
➔
DIFFICULTY
MODERATE
idk
Local Aggregator channel: Individual comes collects milk & sells within same geographic locality
Official channel: Supply chain is established where your milk is picked up from a specific farm and is aggregated together where
it can be further processed. Where it need not be just milk but can be convert to paneer, etc. (processed & stored at common
plant & stays for a longer period)
So from this we can deduce that for farmers in states with officials channels would find it easier to monetize the income while for the in
local aggregator channels it is quite difficult to monetise the income stream as such.
MILKY WAY
COMPANY
Great, now could you tell why is it that the local aggregators do not shift to a formal channel and monetise their income
streams?
The possible reasons could be :
→ Difficulty in setting up supply chain. If there isn’t an official channel node existing in the state (for ex : a milk processing factory),
transportation costs would increase making it difficult to set up the dynamics.
→ If if there is a channel, the middle men in official channel are very less flexible wrt prices as compared to local men from farmer’s areas.
Thus farmers may find it more profitable to sell it in their own geographies.
ROUND
PARTNER
Well then what do you think can farmers do if they want to be part of official channel?
Local farmers from one geography can look at forming a cartel and approach middle men. Since now the quantity supplied is much larger,
it gives them negotiation powers to raise the price/litre. Another solution could be different cartels from a state combining to create their
own supply chain and deal directly with a milk processing factory or other stakeholders at the end of the chain. Contribution from so many
farmers may bring down the transport costs plus reduce the commission costs for middle men.
That’s good. From a social perspective, what are the downsides if all farmers of a village adapt this?
TYPE
UNCONVENTIONAL
→ The amount of milk that was locally available will reduce as farmers will try to sell more and more outside for more profits. This would
mean shortage of supply and hence prices rising.
→ The local middle men will lose their livelihoods to a large extent.
Makes sense. We can close the analysis. Thank You.
DIFFICULTY
MODERATE
SHOULD I BE FASTER?
COMPANY
Let’s start with a case. Our client is an online e-commerce company focussing on groceries. Right now their business model
supports delivery in 2 days. They want to adopt a new business model wherein they deliver in 30 minutes. Should we go forward
with this? If yes then how?
Sure, I would like to ask a few questions before my analysis. Where is our client based out of? Also what is our client’s value chain?
Our client is present in all metro cities in India. Coming to our client’s value chain they buy their own inventory, store in
warehouses and deliver it to the customers
ROUND
MANAGER
I understand. Also how many warehouses does our client have?
They have one big warehouse in the outskirts of each city
Interesting! Is there any particular timeline to achieve this? Also is it a COVID or a pre-COVID scenario?
Our client doesn’t have any particular timeline in mind, and yes, it is a COVID scenario.
TYPE
UNCONVENTIONAL
Okay I have sufficient information to start this case. So, in order to proceed I need to understand more about the competitors models and
benchmark it to ours. Also we need to see the possibility of development of new capabilities at our end.
Sure, you can proceed. Please focus on benchmarking our client’s current capabilities
Okay sure. So we can benchmark based on the following three actions - Inventory Procurement, Warehousing and Delivery Services.
Looks fine.
DIFFICULTY
MODERATE
So may I know what is our client’s situation compared to their competitors?
There is no difference in inventory procurement and delivery model. But in the warehousing aspect, our client has 1 big
warehouse outside the city whereas their competitors have 10-20 smaller warehouses distributed inside the city
:
SHOULD I BE FASTER?
COMPANY
Okay, so with the current information in hand, we know that 30 minutes delivery is impossible with our client’s current warehouse structure.
Therefore we need to acquire smaller warehouses strategically located throughout the city
Well can you tell our client what are some of the costs they have to support in order to follow your proposal?
ROUND
MANAGER
Sure, so there will be two types of costs - Monetary costs and Managerial Costs.
→ Monetary costs - Monetary costs involve fixed and variable costs. Fixed cost includes warehouse procurement costs and variable costs
include annual maintenance, etc
→ Managerial Costs - Since our goods are perishable, our client has to actively manage the storage time of goods and hence decide
which stock has to be cleared first. Based on previous sales data, our client has to decide the appropriate product mix and inventory mix
So whether our client should move forward with this plan depends a lot on how much capital are they ready to invest.
That’s a good point. Our client is willing to invest enough capital to set up this new business. Do you think they can adapt some
strategy for selecting warehousing?
SInce we have the data of so many orders, we can try to see if there is a correlation between areas and items they order. We can
accordingly store more of those particular items in the relevant warehouses.
TYPE
UNCONVENTIONAL
Okay, that is interesting. How do you think their delivery model should work?
Once they set their warehousing model, delivery can be done using Swiggy/Zomato model. Appropriate algorithms can be used to allot the
most efficient deliver person. More delivery persons can be in areas with more orders (can be predicted using data). If this is difficult,
deliveries can be outsourced to other companies.
Good job! Our client is satisfied and they are willing to follow your advice. We can close the case.
DIFFICULTY
MODERATE
Thank you very much!.
DORAEMON’S NEW GADGET
COMPANY
** For the purpose of this case, we would advise checking pricing framework once from SRCC casebook.
Hi, Let’s start with a case. Your client is doraemon and he is looking to sell one of his gadgets - a bladeless fan but is unable to
decide on the price. Could you help him out?
Sure. Could I understand more about this product? How exactly does it look and work?
ROUND
BUDDY
TYPE
UNCONVENTIONAL
(PRICING)
DIFFICULTY
MODERATE
MODERATE
Sure, this is how it looks. The air comes out from along the edges and it’s very lightweight and portable.
Alright, how does the fan charge? What is the wind speed when compared to a table fan? Is it fair to assume that table fans are its only
competitors and lastly what is our product’s lifeline?
That’s a lot of questions at once. The fan has a regular charger. The wind speed is comparable to a table fan but it needs to be
little closer to the face for the same impact. Yes, table fan is the only competitor as this is a unique product and its lifeline is 5
years.
Thank you for the information. My approach would be to first see the base price based on costs, then see the range in which we can price
by comparing with competitors and finally explore the additional value that this product adds to the customer to see the premium we can
charge. Does that sound fair?
Yes, that seems correct.
DORAEMON’S NEW GADGET
COMPANY
Alright could I know the cost of production for our product? And do we know the usual profit margins of table fan industry?
The costs come close to INR 850 and profit margins are usually 15-20%.
Got it, so the base price range would be close to INR 980 - INR 1020. I believe the price of a table fan is close to INR 3000. Is that fair?
Yes, sounds good. On what parameters would you compare the 2 products?
ROUND
BUDDY
I would compare them on following metrics one by one :
→ Lifeline → Efficiency of cooling → Potability → Maintenance
Does that sound good?
This is good, are you sure you are not missing something?
Yes, of course, electricity consumption is an important factor. Talking about lifeline, a table fan generally has a lifeline of 3 years. Is that
fair to assume?
TYPE
UNCONVENTIONAL
Yes you can take that.
Sure, taking avg price of table fan to be 3000, that is 1000/year. Since we are offering 2 years extra, we are in a position to charge at least
1000 extra. Is that fair?
(PRICING)
Yes, proceed.
Talking about efficiency, according to our previous discussion it seems like we don’t provide any extra advantage over table fans.
DIFFICULTY
MODERATE
That’s correct.
For electricity consumption, I would like to know about the comparison between our product and table fan. My hypotheses is that since we
only charge while table fan continuously uses electricity while running, we would be using lesser units.
DORAEMON’S NEW GADGET
COMPANY
Bang on! That’s correct. You can assume we help customers save INR 500-700 annually.
That’s awesome we can take that into consideration. As for potability, we are easier to move because of it being smaller, lighter and
wireless. A regular wired headphone costs INR 1000 while modern bluetooth earbuds would cost INR 1500-2000. So I believe we can
charge an extra 500 for this particular feature. Is that fair?
That’s a good analogy. What would you say for maintenance?
I think a regular electronic device like table fan requires one maintenance of INR 500 annually. What is our requirement wrt maintenance?
ROUND
BUDDY
Since we have no motor parts, our maintenance is 0!
That’s great, we can add another INR 500. So in total we can charge an extra 2500 over table fans. This is roughly INR 5500. We should
now check if this product has additional features for which customers would pay.
That’s correct, proceed.
TYPE
UNCONVENTIONAL
(PRICING)
DIFFICULTY
I believe the product adds following values to a customers life :
→ Fun & Excitement : It’s a new product, one of a kind and hence owning one adds that fun and cool element to your life. I see people
ready to pay an extra 10% on an avg for something new. (for ex- for a new shah rukh movie, they’re willing to pay extra prices to watch
the movie early).
→ Safety : Since there are no motor parts, it’s relatively safer than its counterparts. Again a customer would be willing to pay an additional
20% to ensure safety. (for ex : extra safe mobile covers cost roughly 20% more than unsafe ones).
→ Noiseless : Again since no motor parts, no noise. I see people willing to pay an extra 20-30% on earphones for noise cancelling
feature. If same analogy can be applied here, we can charge a 20% premium.
This means we can finally price the product at roughly INR 8000-8500.
That’s an excellent analysis. Offer worthy case solving :)
MODERATE
**Please note the importance of taking examples in real life to depict the value product adds to customer life. That is the essence of value
based pricing. You compare experiences and accordingly add premiums to your product price. Any example can be taken depending on
your understanding and perception (After all value is a perceived thing).
HABIBI COME TO DUBAI!
COMPANY
Hey, our client is a mall in Dubai. In order to cope up with losses faced during covid, they have thought of releasing an app
which can increase the footfall and revenues. Can you help them deciding features for the app?
Sure, I’d like to know more. Can this be taken a regular consumer mall or is there something unique about it? What is the competitors
scenario? Also which phase of covid are we in right now?
Yes, it’s a regular mall. There are a few other malls but we are the biggest. Covid wave 2 has just subsided and it’s been a month
since we started operating again.
ROUND
BUDDY
Alright, in that case is it fair to assume that the major hindrance to footfall is the fear of covid that the app should be solving? Once footfall
increases revenue will automatically start increasing, since we are the major mall anyways.
Yes, both your assumptions make sense.
Awesome, I’d like to map a journey for a customer visiting a mall and see how can the app help at every step. The final goal would be to
push customers to visit the mall and make spending easier and safe. Can I proceed?
TYPE
UNCONVENTIONAL
DIFFICULTY
MODERATE
Makes sense. You can go ahead.
Thanks, the user journey :
At Home : Notifications about sales and maybe certain special shows at the mall can be sent regularly to nudge people. Given how the
mindset is changing, the app can have an ecommerce section to deliver merchandise at their doorstep from mall stores. (Initially
discounts can be offered, the delivery system need not be as quick as Flipkart/Amazon).
Parking : Payment can be made through the app and bill sent through app/message. This will make the process contactless.
Inside Mall : Mandatory vaccination and masks & strict enforcement for both workers and customers. Sanitisers everywhere.
Good suggestions! What about mall activities?
I’ll split mall activities into 2 broad parts : Eating and shopping.
HABIBI COME TO DUBAI!
COMPANY
Eating : Restaurant selection, order placing and payment all steps can be done through app. Once order is ready, it will be notified on the
app and customer can collect it from restaurant desk. This minimises contact to a large extent. Tables can be kept at safe distances.
Shopping : Once again, all shops can display their portfolio of products on the app, the customer can select the product on the app and
buy it from the relevant store. Payments can be made there itself.
That’s great, but don’t you think people visit the malls for exploring the shops in an offline way? How can you make their offline
shopping journey safer? Let’s take a cloth shop for reference.
ROUND
BUDDY
TYPE
UNCONVENTIONAL
DIFFICULTY
MODERATE
Sure, once the customer enters the shop,
Guidance : Proper segmentation of different clothes and subsequently their sizes. Big and clear sign boards to directly guide the
customers to their size zones, to minimise interaction of customer-customer and customer-clothes.
Size Check : While trial rooms cannot be allowed for safety purposes, some money can be spent on getting a big lot of “use and throw”
plain white t shirts just to check sizes.
Billing : Every cloth can have a barcode, which when scanned by the app gets added to cart directly and payment can be made online.
The bill will also be digital.
Delivery : Customers can be incentivised to carry their own shopping bags from home to even avoid that contact with store executive.
That’s an excellent journey you just mapped. You seem well prepared. Keep it up!
ARE FOUR REALLY FANTASTIC?
COMPANY
Hi. Your client is an Indian PSU Bank. Their customer service for credit card division has been getting a lot of negative
feedback. Can you help them figure out why and help them?
Sure, I have a few questions. Can you tell me more about what does this bank do? Is the problem restricted to credit card division only?
You can consider the bank to be similar to SBI. Yes, the problem is with credit card division and it was started a year ago.
ROUND
SENIOR BUDDY
I’d like to understand a bit more about this division and its services. Also, what metric is used to measure the customer service. Since
when has it seen a dip and by how much?
For simplicity, let’s just assume it provides credit cards. The metric used is customer feedback post the call. And it has seen a
dip of 1.5 stars in the last 3-4 months.
Lastly, I understand there are various mechanisms of customer service including Helpline, Office help centre and Email. Is the issue
restricted to any particular mode?
That’s a good question, the issue is only for helpline. You can begin now.
TYPE
Sure, I’d like to go through the customer journey of a customer helpline call but before that I just need to know if there’s any particular type
of customers based on Age, occupation or Geography that we are concerned about.
UNCONVENTIONAL
No, the decline is uniform across all segments.
DIFFICULTY
DIFFICULT
Ok. The following would be the steps when a customer has to enquire/raise an issue with the helpline.
→ Finding the number
→ Connecting with the call
→ Automated Voice Interaction
→ Waiting time
→ Query Resolution
Could you tell me if we have identified if issue lies in one or multiple steps. We can analyse those steps further.
ARE FOUR REALLY FANTASTIC?
COMPANY
That’s a good journey. Let’s explore the steps one by one.
Sure. Let’s start with step 1. Here the problem could be with the visibility of the number on website, app or an aggregator platform (like
JustDial). Or if the number has changed but customers can’t find the new one. I’d like to know the various avenues where our numbers
are present.
Yes, as I said the credit card division was started 1 year ago. They have a separate website from the regular website of the client
and the customers find it difficult to find that website independently. The credit card division is not present on regular website.
ROUND
SENIOR BUDDY
Understood. Is there a reason why they have a separate website?
No particular reason. They just wanted a more advanced website for the new division.
Ohk. They can then look to have a credit card division subsection on their regular website which will further take customers to the new
website.
Yes, that makes sense. You can move ahead.
TYPE
UNCONVENTIONAL
Moving to connecting with the call. I define it as difficulty faced after you dial the number but before the call timer starts. Either there could
be an issue with network or the load on number is too high so it takes too much time to connect. The network issue is unlikely as the
problem isn’t restricted to a particular geography.
Yes, the logic is correct. It takes too much time to connect to the call and hence customers get agitated. Could you think of a
reason?
DIFFICULTY
The load is high if too many customers are waiting in the queue which can happen if :
→ Time/query is high : Takes too much for 1 customer’s query to be cleared.
→ # of queries is high : Too many people calling and hence too many in the queue and thus takes time to connect.
DIFFICULT
TOUGH
Makes sense, so basically supply or demand problem. The issue has been with too many people calling and hence queue
always being packed.
ARE FOUR REALLY FANTASTIC?
COMPANY
Well, if the issue is with too many people calling but time/query is not the problem then I’d like to understand if we have sufficient number
of executives to handle these calls? Also I’d like to know what has led to increase in number of people calling?
Good question. We have only 4 executives as of now. When the division was started a year ago, only 4 people were hired based
on demand then but even though our market share (& hence number of customers) has gone up in the last 1 year, we haven't
hired new executives as of now. The reason for increase in calls is as stated the increase in customers and hence queries.
Got it. We can either look to hire new executives based on demand prediction. Or we can look for possible synergies with the executives
in other divisions of the bank.
ROUND
SENIOR BUDDY
Fair enough. We can now move to the last step of your user journey i.e. query resolution.
I’d like to divide issues with this step into 2 buckets : Communication and Technical capability. The former includes the ability to
communicate the problem and solution from both ends and also the soft skills of the executive. The latter includes the ability of the
executive to solve the query. Could you tell me if we have identified a problem in one of these buckets or both?
Good division. You can focus on the communication aspects.
TYPE
UNCONVENTIONAL
DIFFICULTY
DIFFICULT
TOUGH
Sure, the various factors that I think can lead to a communication gap are :
→ Language in which problem/solution is conveyed.
→ Clarity with which problem/solution is explained.
→ Soft skills of the executive.
Good. As there are only 4 executives, we lack cultural diversity and hence our executives are unable to speak in a lot of regional
languages that customers would have preferred. This leads to a communication gap and a sense of dissatisfaction among
customers. What can be done to solve this?
We can do something that Tata Sky does, a region wise helpline number (North, South, East and West). We can also hire new executives
that speak different languages based on demand and the automated voice in beginning of the call can ask for language preference and
call can be directed to that particular executive.
Those are nice suggestions. We can end the case. You did a great job.
WILL TESLA SUCCEED?
COMPANY
Hey, Let’s discuss the factors that will determine the growth of EVs in India by 2030. How can GoI boost it?
Interesting, can we clearly define growth, is it increase in sales? Is there a target? What is the current stage of EVs in India?
Yes, growth means selling more units. We don’t have a target in mind as the market is currently in a very nascent stage.
Alright, I’d also like to understand the incentives for GoI to do so apart from sustainability?
ROUND
PARTNER
EVs reduce use of petrol and thus our dependance on Gulf countries!
Ah yes! That’s a very valid point. Alright, to increase sales, we first need to sell (supply) and then make sure people buy (demand). I’d like
to start by focusing on supply side. I see two types of suppliers, foreign and domestic. Would you like me to focus on one of them?
Well I’m keen on domestic. Could you guess why?
As we move towards a self-reliant economy, this can be a major step in that direction as the world is in process of adapting EVs.
TYPE
UNCONVENTIONAL
DIFFICULTY
DIFFICULT
That’s correct, let’s focus on domestic manufacturers. How can GoI help them shift to EVs?
I have the following steps in mind :
Capital : The biggest barrier to shift production is capital as the entire manufacturing facility needs to change. The govt can incentivise this
step by either easier debt or through tax benefits (as this is a step towards green economy).
Resources : Access to a lot of new material would be needed. The GoI can step in here in 2 ways, as a first step they can reduce the
import duty on some important parts to help the companies but for a more long term solution, they should incentivise local manufacturers
to produce required raw material (ex- Semiconductor chips) in India itself. (ex- PLI for smartphone chips).
Human Resources : We would need excellent researchers and engineers to help with the R&D and engineering parts. Investment in
education needs to start as early as possible. They can also incentivise Indian researchers present abroad to come back.
Competition : Companies like Tesla have already started their production planning in India. This can discourage local companies.
Competition from abroad needs to be kept in check to sustain the local manufacturing.
Fair Enough. Really good points. But one barrier still remains, What is that?
WILL TESLA SUCCEED?
COMPANY
Yes, production linked incentives won’t work if companies are not convinced about the demand. The govt needs to take steps to stimulate
demand in this segment.
Excellent, what would your suggestions be?
I would like to go through the customer journey of buying an EV and discuss various factors where GoI can help build trust or incentivise
sale.
ROUND
PARTNER
TYPE
Need : Similar to the Netherland govt, restrictions can be put on sales of non-EV cars which will eventually be banned after a decade or
so. It will probably take more time in India but atleast we can get started. Moreover, an upper cap can be kept on Carbon emission per
state. This will force state govt to take actions in their respective regions to incentivise adoption.
Awareness : Various govt initiatives would be needed to create awareness about the benefits of EVs. Ads in TV and movies, education
campaigns at schools, colleges and corporate tie ups can help. The main goal here would be a change in mindset.
Access : Apart from making sure availability of EV showrooms across the country, the major accessibility issue lies with the charging of
EVs. The speed at which alternate and long lasting battery tech will develop is a crucial factor that determines rate of EV adoption.
Charging points need to be setup across the country. One important point is that amount of electricity would also be needed to cater to
demand. Investment in unconventional energy resources to meet electricity demands can be a sustainable solution by GoI.
UNCONVENTIONAL
Financials : While the EVs are expected to be a little more expensive compared to traditional cars, awareness needs to be spread about
them being overall cheaper in terms of lifetime value (No petrol costs). Better financing options can be provided if GoI nudges financial
institutions to do so. In fact a buy back program can be setup to buy the old traditional cars, whose parts can be used in manufacturing of
EVs too.
DIFFICULTY
Product : Lastly an important factor would be the EV itself. The current concerns with EVs are its time to charge and distance travelled in
1 full charge. The adoption rate of EVs largely also depends on how fast the technology advances to convince people to trust EVs.
DIFFICULT
Well done! These are some insightful factors. We can end the discussion, Thank You!
GUESSTIMATES
TIPS & TRICKS
→ Be sure to ask as many preliminary questions to clarify the scope of calculation.
→ Remember it’s not about numbers, it’s about the approach.
→ That being said, try to take assumptions with justifications.
→ Candidates find it challenging to convey calculations, it’s tricky but can be learnt with appropriate practice.
→ Don’t be scared of the quick math, state and round off to simplify, that’s a skill too.
→ Starting with an initial 2-3 element formula really simplifies the entire guesstimate. Try starting with one.
→ There’s more than one way to solve every guesstimate, try finding the easiest one.
→ Try taking care of nuances, this is really important. (For ex - Age, Gender, Income, Living standard etc..)
→ Suggest sanity check on your own, keep it simple. 30-60 seconds is ideal.
Case Club IITM has curated a set of video interviews to help you with understanding the interview environment. The interviews
have been given by actual consultants at MBB (IITM alums). We recommend watching these videos before beginning practice!
CLICK ON IMAGE FOR THE VIDEO
(YouTube Channel : Case Club IITM)
I WANNA GO ABROAD
COMPANY
Hi! Let’s start the interview with a guesstimate. Find the number of people travelling from India to U.S in a year.
BAIN & CO.
Let me begin by asking few preliminary questions - Are we looking at only unique travellers or total travellers(people can travel multiple times)
as well? Should we assume the pre-covid scenario? Is this subjected only to travel by air?
You can focus on unique travellers alone. The situation is not pre-pandemic, you have to take covid into consideration. The travel
mode is only air.
ROUND
Okay, so taking Covid into the account, are there travel restrictions?
Yes. There are restrictions.
MANAGER
Ok. We can say that people travel to US for three major reasons- Business, Tourism and Education. But during pandemic, business people
and tourists rarely travel so we can just focus on the students.
Yes, correct.
TYPE
GUESSTIMATE
DIFFICULTY
EASY
→ Now focusing on students who would be travelling to US during the pandemic which would refer to the people in the age group of 18-25
years, this accounts for about 13% of India’s population with a literacy rate of 70%.
→ Dividing this population further by rural and urban areas- % of rural = 70, % or urban = 30
It’s safe to assume that students from rural areas do not travel to U.S with restrictions.
→ Out of this literated population in urban areas, we can say that half of them do not continue to pursue in college or higher studies.
→ Majorly engineering and science students tend to go abroad for M.S, M.Tech, MBA,etc.which accounts for about 60%. (Given high ratio of
engineers in India).
→ And in this, only the top 1% actually get to go to U.S due to competitiveness.
Yes, the structure looks correct, you can proceed further to get the actual values.
Okay! Assuming the population of India to be roughly 138 crores,the final value will be 0.01 x 0.5 x 0.3 x 0.7 x 0.13 x 138 crores,
Which comes out to be around 1.9 lakhs.
I WANNA GO ABROAD
COMPANY
Great!
Would you want me to perform a quick sanity check?
BAIN & CO.
ROUND
MANAGER
Sure.
Since we are majorly taking students into account, a semester at US starts in Aug-Sept and hence all students would travel between July,
Aug and Sept. Assuming equal distribution in months, this gives roughly 60k students every month.
Since flights to US are majorly from Delhi, Bangalore and Mumbai, assuming equal distribution among these airports, this gives 20k students
per airport per month.
Assuming equal students leaving every day, this means roughly 700 students leaving the airport daily.
If there are 5 flights going to US on a daily basis, this means 140 students per flight.
This seems to be like an overestimate as I wouldn’t imagine 140 students boarding a flight daily to US for 3 continuous months from all 3
major airports.
You’re right, What factor do you think you may have overestimated. Visit your structure again and tell.
TYPE
GUESSTIMATE
I believe the fact that we took 1% of all engineering students make it to US is an overestimate. That’s because most of the students going
abroad are from top colleges and roughly only 2% of entire science pool every year makes it to Top colleges in India and among them Top
10-15% makes it to US. That reduces our assumed 1% to 0.2%, which decreases the estimate by 5 times.
That’s a smart observation. Well done!
Thank You :)
DIFFICULTY
EASY
**For sanity check, always go back to your initial structure and check factors that cannot go wrong (for ex - urban-rural split) and
factors where you may have assumed something wrong. That is where the over or under estimation will be stemming from.
BILL THE BOOK
COMPANY
Good morning, your client is Ministry of Education, Government of India. They want you to calculate the Annual Budget for
textbooks for students in Jharkhand.
BAIN & CO.
Hey, before diving directly into the case I would like to clarify some points. What do you mean by annual budget exactly?
Annual Budget refers to the cost of printing textbooks for one whole educational year for government schools in Jharkhand.
ROUND
BUDDY
Okay, which class textbooks are producing. Also by the cost of textbook do you mean the cost of producing like material and printing or
you also mean the content we need for the books as well?
The textbooks have to be produced for classes I to X and we are only considering the cost of producing and not the cost
needed for content and publishing.
Alright, my approach would be :
TYPE
GUESSTIMATE
Budget = # Textbooks x Cost/Textbook
# Textbooks = # Students x # textbooks/student
To calculate the number of students, we need the population of jharkhand and split it to find % of eligible students for
class 1-10 (Ages 6-15) and then find fraction of them who attend school in govt. schools.
I cannot recollect the population of Jharkhand. Do we have the number?
Your approach seems fine. Think on how you can calculate Jharkhand’s population.
Sure, India’s population is 140 Cr. If all 28 states had equal population, Jharkhand would have had 5 Cr. But Jharkhand is slightly more
populated so can I take 10 Cr.
DIFFICULTY
MODERATE
That’s fair. You can proceed.
Alright,
% population below age 18 = 30%
% population between 6-15 = (15-6) / (18-0) x 30% = 15%
BILL THE BOOK
COMPANY
We will divide this population into income classes. This is because the population going to govt. Schools will increase as income
decreases. Also the male-female factor comes in with changing income class due to mentality difference.
BAIN & CO.
Lower (20%)
Lower Middle (40%)
Upper Middle (30%)
Upper (10%)
Male (50%)
50%
80%
20%
0%
Female (50%)
20%
60%
15%
0%
ROUND
BUDDY
The numbers in box indicate what percent of each gender in each income class would go to govt schools. The numbers increase with
decreasing income for each gender (except with lower class where affordability is a major issue). Male population is always higher than
female by taking into account Indian mentality. Is this fair? Upon calculation, number of students in govt schools = 60 Lakhs
TYPE
Yes, this seems really good. Let’s calculate number of textbooks per student and cost now.
GUESSTIMATE
# textbooks from class 1-5 = 5
# textbooks from class 6-10 = 9
Avg # textbooks/student = 7
DIFFICULTY
Cost = # of textbooks x # pages/textbook x Cost/page
Assuming average textbook to have 250 pages and average cost/page to be INR 0.5,
Cost = # students x # textbooks/student x 250 x 0.5
= 60L x 7 x 250 x 0.5
= 525 Cr.
MODERATE
Very well. You did really well. Thank you.
HEALTH INDUSTRY IS WEALTH INDUSTRY
COMPANY
Hey, Let’s start with a guesstimate. Your client is thinking of venturing in the e-pharmacy industry. Can you please tell them what
market size they can expect?
Sure, just to clarify, firstly what is exactly meant by e-pharmacy, and secondly what is market size in this context?
So e-pharmacy industry is basically e-commerce for medicines. Customers order online and get their orders delivered at
doorstep. Also in this context, market size refers to the yearly revenue our client can expect.
ROUND
That’s great! Also is this a pre-COVID scenario or a COVID scenario? And are we targeting the entire country?
It is a COVID scenario. Yes let’s look at entire India.
MANAGER
TYPE
GUESSTIMATE
Okay I have sufficient information to start this case. My basic approach would be # families which order x Avg bill value/order x # orders/year
So in order to find our target audience, firstly we need to know how many Indians have enough access to internet to order medicines
online, and then find how much will they spend on medicines on a weekly basis.
Sure, please proceed
Okay so we know that India’s population is approximately 140 crores, out of which 30% live in urban areas and rest in rural areas. Also we
can assume an average family size of 4 in urban areas and 5 in rural areas.
Fair enough. You can proceed.
DIFFICULTY
MODERATE
So according to my calculations, I get
→ Number of families in Urban areas - 10 crore families
→ Number of families in Rural areas - 20 crore families
Now coming to internet availability, internet and smartphones are directly connected to a family’s income levels and the geography (some
rural areas are still very remote). Therefore I propose the Income splits in rural and urban areas as :
HEALTH INDUSTRY IS WEALTH INDUSTRY
COMPANY
(Income Splits)
→ Upper Class
→ Middle Class
→ Lower Class
Urban
20% (2 crore families)
40% (4 crore families)
40% (4 crore families)
Rural
10% (2 crore families)
40% (8 crore families)
50% (10 crore families)
Alright, go on
ROUND
MANAGER
Now we have to see how many percentage of families would have access to smartphones and internet from the above six categories.
→ As lower class people barely have enough money to eat, we can assume they won’t have access to internet. .
→ Coming to middle class, the upper middle class would have at least one smartphone per family. But all of them won’t have access to
sufficient internet. Therefore we can assume that 50% of these families would have both smartphone and internet
→ For upper class, we can safely assume that all of them can afford both smartphones and strong internet connection.
(Internet Penetration)
Urban
→ Upper Class
100% (2 crore families)
→ Middle Class
50% (2 crore families)
→ Lower Class
0% ( nil )
TYPE
GUESSTIMATE
Rural
70% (1.4 crore families) - (less in rural due to less internet penetration)
30% (2.4 crore families)
0% ( nil )
Okay, but don’t you think there must be some difference in the level of awareness between urban and rural population?
Yes, there is definitely difference in awareness between urban and rural. Rural people are less likely to adopt new technologies. They
have more confidence on their local pharmacy and compounders. Therefore I propose that on an average, 75% of rural population won’t
adopt e-pharmacy because of lack of awareness. Also for similar reasons, half of the urban population won’t adopt e-pharmacy.
Great! This seems fair enough
DIFFICULTY
MODERATE
So our current target population turns out to be (Lower class skipped because they already can’t afford) :
50% x (2Cr + 2Cr) + 25% x (1.4Cr + 2.4Cr) = 3Cr families
Sure, this is a good enough target customers. Now could you please give our client an estimate of how much revenue they can
expect from these 3 crore families
HEALTH INDUSTRY IS WEALTH INDUSTRY
COMPANY
Yes, so to find the expected revenue, we can try to estimate how much each basket would be ready to spend on medicines on a weekly
basis and then multiply by 52 to get their yearly spendings
Alright, how do you plan to do this?
ROUND
Yes, so on an average, rural people are more healthy and have high immunity, so they won’t need much medicines. If at all they need
some medicines, they rely a lot on homemade remedies.Therefore on an average, They buy one strip per month
Coming to urban population, they rely more on medicines. Therefore we can assume that they buy 3 strips every 15 days
Now there are range of medicines starting from Rs. 10 to Rs 300. Therefore can we assume an average cost of strip to be Rs 100?
100 is in a bit higher side. Let’s go with 80.
MANAGER
TYPE
GUESSTIMATE
DIFFICULTY
MODERATE
Great! So the revenue for each basket of customers comes out to be(Revenue)
Urban
Rural
Rs 6,240 per year
Rs 960 per year
For India, multiplying by number of families :
6240 x 2Cr = 12480 Cr
960 x 1Cr = 960 CR
Total Market size = INR 13,440 Cr.
That’s a massive figure. Not sure if it’s correct but the approach was really good so we can close the case here. Good!
**For this guesstimate it was important to realise that both smartphone and internet will be required to be counted as a target
audience. This is an important thought process, keep it in mind. Also awareness was an important factor pointed out by
interviewer, just because you can use the service does not mean you will use the service. Factors such as awareness,
willingness and ability come into play. Think and use them accordingly.
PLANES
COMPANY
Hello, I want you to guess the number of domestic aeroplanes that fly throughout India in a day.
That sounds interesting. I have a few clarifying questions to begin with. Do I need to consider just the active flights or the flights that are
grounded as well?
Only the active flights.
ROUND
MANAGER
Is there any restriction on the type of airplanes that need to be taken into account? For example, should I only consider jet aeroplanes or
small propeller planes too? Also do I count unique flights or total flight trips in a day (A single plane flies multiple times)?
You can consider only jet aeroplanes with 2 engines. Let’s count unique flights only.
Alright. I will be calculating the total number of planes using this formula: Number of planes taking off per airport x Number of airports. I’ll
further divide this number by Avg number of trips by a flight in a day.
Let me start off by calculating the number of airports. Since we are only talking about planes with 2 jet engines, the airports that are
capable of handling this bigger type of planes are limited to tier 1 cities and larger airports in tier 2 cities.Is this a fair assumption?
TYPE
GUESSTIMATE
Yes that is valid.
The number of tier 1 airports in India is 8 (major cities). For tier 2 cities, every state excluding the states in the north east has 2 tier 2
cities with airports. of these, half of them have airports have big enough to land jet engine planes on an average. I hope that is valid.
You can make that assumption.
DIFFICULTY
DIFFICULT
So considering the other states, we have a total of 20 states, so that is 40 airports. Totalling the number, we get 48 airports in India. Now,
for the number of flights taking off, I want to calculate it based on the runway capacity. A plane typically takes 5 mins to clear the runway
completely. During peak hours the runway operates at maximum capacity and the number of planes taking off equals the number of
planes landing, on an average 1 plane takes off every 10 minutes so 6 planes in any peak hour. For non peak hour, I’ll assume half of
this, so 3 planes take off per hour. Does this make sense?
PLANES
COMPANY
That looks good, you can proceed.
For Tier 1 airports :
# runways = 3
Peak hours = 6
Non peak hours = 18
# flights = # runways x (6 x peak hours + 3 x non peak hours) = 270
ROUND
MANAGER
For Tier 2 Airports :
# runways = 2
Peak hours = 4
Non peak hours = 20
# flights = # runways x (6 x peak hours + 3 x non peak hours) = 168
Total flights = Flights from tier 1 airports x # tier 1 airports + Flights from tier 2 airports x # tier 2 airports
Total flights = 270 x 8 + 168 x 40 = 8880
TYPE
GUESSTIMATE
Avg # of trips a flight makes in a day = Avg operational time for a day / Avg time per trip
Assuming Avg operational time daily to be 18 hours.
Avg trip time = Avg time spent flying per trip + Avg time spent at airport waiting = 2 hrs + 1 hr = 3 hrs.
Avg # of trips a flight makes in a day = 18/3 = 6.
Total unique flights in a day = Total flights / Avg number of trips per flight per day = 8880/6 = 1480.
DIFFICULTY
DIFFICULT
Alright. We can end the case here. You did great.
**Guesstimates where dynamic calculations take place (for ex - incoming flights) can be a little tricky. It is better to keep it as
simple as possible by clearly stating your assumptions.
SPECIAL
TIPS & TRICKS
It’s a portfolio of case categories that are asked by some specific firms. They have no particular frameworks but the
fundamental principle stays the same : Structured thinking and logic. Case Club IITM is the first organisation to highlight
these types of cases in a casebook. We have added 1-2 cases from each category. Reach out to seniors placed in these
companies for more such cases.
Analytical :
These cases are asked by Auctus Advisors. They are math intensive and often include a probabilistic approach. Having a
knowledge of expected values will help you navigate these type of cases. Once practised, it’s an easy category!
Digital :
These cases are asked by Mckinsey & Co. for their BA-Digital role. A basic understanding of various technologies can be
helpful here but it’s nothing that cannot be derived from logic and common sense.
Impact :
These cases are asked typically by Dalberg Advisors. They are a set of fairly open-ended and challenging cases and really
test your ability to structure something that is extremely unstructured. These cases require a good amount of practice but
Dalberg shares its own resources to tackle such cases. We have included just a couple of this type for reference’s sake.
DRINK N GAMBLE
COMPANY
BAIN & CO.
Hey, your client is a bottle manufacturer that supplies bottles to a beverage company (X). X is in talks with IPL for a tie up. If the tie
up does happen, the sales is predicted to go up, the supply for which our client won’t be able to handle as they don’t have that
capacity. The marketing team has come up with 2 suggestions :
1) Outsourcing the remaining bottles to some other manufacturer.
2) Invest in R&D to update our software. This increases both capacity and decreases costs. But the investment is such that if a
delay happens in update, we won’t be able to meet even the current level of demand (i.e. the one before tie up). You are required to
help the client make a decision.
ROUND
Sure, that’s a long question. I would like to start by understanding the timeline a bit. Can I assume we are in november right now and IPL is in
April. When would tie up will be finalised? When do we have the deliver the bottles? If we invest in R&D, when would that happen?
BUDDY
Yes, let’s go with your assumptions. The tie up decision will only be announced by march but we need to take a call right now,
whether we invest in R&D or not. The bottles should be delivered by May, that means if R&D isn’t complete by May, we won’t be
able to meet even current level demand.
Alright what is the current level of demand? What will it be if tie up takes place? What happens to our capacity if we delay R&D? Also what is
our capacity?
TYPE
ANALYTICAL
The current demand is 10 Mn bottles. If tie up happens, it goes up to 20 Mn. Our capacity is 15 Mn, and delay in R&D would reduce
it to 8 Mn.
I am unable to understand, when will we outsource if we do so?
So, the order has to be placed right now.
DIFFICULTY
MODERATE
MODERATE
So, we place an order of 5 Mn bottles. If tie up happens, we make the rest 15 Mn else we make 5 Mn. Is that correct?
Yes, that’s correct.
Similarly, if we decide to invest in R&D, if upgrade is on time, we make 20 Mn else we make only 8 Mn? What about the other 12 Mn, we
can’t outsource them?
DRINK N GAMBLE
COMPANY
BAIN & CO.
Yes, that’s right. No, that 12 Mn will be taken care of by X.
Well, is there some sort of penalty if we fail to deliver?
Good Question. Fortunately due to good old relations, there is no penalty.
Alright, just to be clear, I am supposed to do a cost benefit analysis here and then check for operational feasibility while considering risks
right?
ROUND
We’ll just stick to financial feasibility. We want you to calculate expected profits in every scenario.
BUDDY
Well, interesting. That hints me towards a probabilistic approach. Do we have the numbers?
Of course we do. The probability of tie up is 60%. The probability of delay in R&D is 75%.
Alright, let's start with scenario of outsourcing. I will need numbers for revenues and costs, can I ask them along the way?
TYPE
ANALYTICAL
DIFFICULTY
MODERATE
MODERATE
I’ll give them right away. Revenue per bottle is INR 30. Cost per manufactured bottle is INR 25 while for outsourced it’s INR 27.
Case 1 : Tie up happens (Probability = 0.6)
We make 15 Mn bottles :
Revenue = # bottles x revenue/bottle = 15 Mn x 30 = 450 Mn
Costs = # bottles x cost/bottle = 15 Mn x 25 = 375 Mn
Profits = 75 Mn.
We outsource 5 Mn bottles :
Revenue = # bottles x revenue/bottle = 5 Mn x 30 = 150 Mn
Costs = # bottles x cost/bottle = 5 Mn x 27 = 135 Mn
Profits = 15 Mn.
Total profits in this case = 75 + 15 = 90 Mn
DRINK N GAMBLE
COMPANY
ROUND
Case 2 : Tie up does not happen (Probability = 0.4)
We make 5 Mn bottles :
Revenue = # bottles x revenue/bottle = 5 Mn x 30 = 150 Mn
Costs = # bottles x cost/bottle = 5 Mn x 25 = 125 Mn
Profits = 25 Mn.
We outsource 5 Mn bottles :
Revenue = # bottles x revenue/bottle = 5 Mn x 30 = 150 Mn
Costs = # bottles x cost/bottle = 5 Mn x 27 = 135 Mn
Profits = 15 Mn.
Total profits in this case = 25 + 15 = 40 Mn
BUDDY
Expected Profits = (0.6 x 90) + (0.4 x 40) = 70 Mn.
BAIN & CO.
That’s absolutely right. What about if we invest in R&D?
Right, you mentioned costs would reduce if upgrade happens? What will the new costs be?
TYPE
ANALYTICAL
DIFFICULTY
MODERATE
MODERATE
15 Mn per bottle.
There are 4 cases possible here :
Case 1 : Tie up happens and upgrade is on time (Probability = 0.6 x 0.25)
We make 20 Mn bottles :
Revenue = # bottles x revenue/bottle = 20 Mn x 30 = 600 Mn
Costs = # bottles x cost/bottle = 20 Mn x 15 = 300 Mn
Profits = 300 Mn.
Case 2 : Tie up happens and upgrade is not on time (Probability = 0.6 x 0.75)
We make 8 Mn bottles :
Revenue = # bottles x revenue/bottle = 8 Mn x 30 = 240 Mn
Costs = # bottles x cost/bottle = 8 Mn x 15 = 120 Mn
Profits = 120 Mn.
DRINK N GAMBLE
COMPANY
BAIN & CO.
ROUND
BUDDY
Case 3 : Tie up does not happen and upgrade is on time (Probability = 0.4 x 0.25)
We make 10 Mn bottles :
Revenue = # bottles x revenue/bottle = 10 Mn x 30 = 300 Mn
Costs = # bottles x cost/bottle = 10 Mn x 15 = 150 Mn
Profits = 150 Mn.
Case 4 : Tie up does not happen and upgrade is not on time (Probability = 0.4 x 0.75)
We make 8 Mn bottles :
Revenue = # bottles x revenue/bottle = 8 Mn x 30 = 240 Mn
Costs = # bottles x cost/bottle = 8 Mn x 15 = 120 Mn
Profits = 120 Mn.
Expected Profits = (0.6 x 0.25 x 300) + (0.6 x 0.75 x 120) + (0.4 x 0.25 x 150) + (0.4 x 0.75 x 120) = 45 + 54 + 15 + 36 = 150 Mn
Are you sure you aren’t forgetting something?
Oh yes, R&D will also cost some money. How much is that?
TYPE
ANALYTICAL
It’s 90 Mn.
So expected profits in this case would be 60 Mn.
Great, now what happens if we don’t do anything at all? Neither outsourcing nor R&D.
DIFFICULTY
MODERATE
MODERATE
Interesting, here if tie up happens we make INR 5 per bottle for 15 Mn bottles we made, that is 75 Mn with probability of 0.6
If tie up does not happen, we make INR 5 per bottle for the 10 Mn bottle we made, that is 50 Mn with probability of 0.4
Expected Profits = (0.6 x 75) + (0.4 x 50) = 45 + 20 = 65 Mn.
This makes outsourcing as the best option speaking probabilistically speaking.
Alright, now if suppose the outsourcing company gives you the privilege to order once the decision for tie up is announced for a
particular premium price. What is the maximum premium you would be willing to pay?
DRINK N GAMBLE
COMPANY
BAIN & CO.
ROUND
BUDDY
TYPE
ANALYTICAL
DIFFICULTY
MODERATE
MODERATE
There are 2 cases here again :
Case 1 : Tie up happens (Probability = 0.6)
We make 15 Mn bottles :
Revenue = # bottles x revenue/bottle = 15 Mn x 30 = 450 Mn
Costs = # bottles x cost/bottle = 15 Mn x 25 = 375 Mn
Profits = 75 Mn.
We outsource 5 Mn bottles :
Revenue = # bottles x revenue/bottle = 5 Mn x 30 = 150 Mn
Costs = # bottles x cost/bottle = 5 Mn x 27 = 135 Mn
Profits = 15 Mn.
Total profits in this case = 75 + 15 = 90 Mn
Case 2 : Tie up does not happen (Probability = 0.4)
We make 10 Mn bottles :
Revenue = # bottles x revenue/bottle = 10 Mn x 30 = 300 Mn
Costs = # bottles x cost/bottle = 10 Mn x 25 = 250 Mn
Profits = 50 Mn.
Expected Profits = (0.6 x 90) + (0.4 x 50) = 54 + 20 = 74 Mn.
Without the option, the expected profit in this case was 70 Mn. Hence the maximum premium price would be 4 Mn.
Excellent, you did really well. Thank You, we can end here!
ANTI STONKS
COMPANY
Your client is a large public sector bank associated with retail services. There has been a significant problem with the new mode
of opening bank accounts which has a high failure rate. You are required to help the bank solve this problem.
May I please know what you mean by “high failure rate”?
Throughout the country, no new accounts are being created in the last couple of days since the new mode has been deployed.
What type of accounts are we talking about? Also, what exactly do you mean by a “large public sector bank”?
ROUND
We are talking about common savings account. The bank in question is analogous to SBI.
SENIOR PARTNER
TYPE
DIGITAL
DIFFICULTY
DIFFICULT
Alright, may I know how the new method differs from the old one.
The old method was as follows: Customer enters bank -> fills and submits form -> manual processing by the teller -> approval
The new method is as follows: Customer enters bank -> provides aadhar number only -> automatic processing by system ->
approval. The Aadhar number is used to extract other details.
Let me start by considering the journey of a person who wants to open an account:
Customer procuring Aadhar card -> Giving Aadhar number to the teller -> Teller entering details into the system -> system processing
requests -> system approval. Starting with the first step, with high government push for Aadhar adoption, it is unlikely that this is the
problem. Once the customer enters the bank, he can provide the Aadhar number by a scanned copy so it is improbable that there is an issue
in this step. At this point, I just want to verify if my assumptions are valid.
Yes, you can proceed.
Alright, in the next step, the teller must enter the Aadhar number into the system for processing. A distant possibility is that the tellers are
incorrectly entering the Aadhar number. May I have some statistics pertaining to the failure rate and the error rates of the teller to compare?
ANTI STONKS
COMPANY
Typically, the teller has an error rate of 1%. The bank is seeing a failure rate in the vicinity of 60%.
Alright, considering the next step, which is the system processing. Can you explain how the system works once the Aadhar number has been
entered?
Once the number is entered into the system, it extracts all the details linked to the Aadhar number using an API provided by the
government. The details that are extracted are filled into a form, some automatically and some manually. The form is then sent for
further processing and approval.
ROUND
SENIOR PARTNER
The first step is to use the Aadhar number as a key to retrieve the details. A potential problem could be the API itself,if it is providing data that
is incorrect or is not providing it at all. Is that the case?
No, the API is working the way it is supposed to.
TYPE
DIGITAL
DIFFICULTY
May I know what are the details that are extracted from the from the API? Is there some form of a predefined template of information that is
used to extract the data?
Yes, the data follows the RBI standard for the information retrieval. This standard includes the following:
●
Name
●
Parent’s name
●
House address including city
●
Subdistrict
●
District
●
State
●
Personal details like date of birth, religion etc.
DIFFICULT
So this is the complete data that is delivered by the API. You had mentioned a form is being used internally. May I know what details the form
uses from the API and what is left out? Also, which ones are filled in automatically and which ones manually?
ANTI STONKS
COMPANY
The form uses all the details except certain personal details like religion and spouse’s name. The address details requires manual
intervention.
Let me start by iterating through the list of details and trying to find out what the problem can be. Firstly, with the name. This is an automated
process. The reasons for failure could be:
●
The space allocated for the name is too small, so the complete name does not fit into the form.
●
The order of names is different: Some APIs provide middle name first followed by the first and last name.
●
Language barrier. eg: The names are in vernacular languages but the form only accepts in English.
ROUND
None of these are causes for the issue. The API has been thoroughly tested for the automated portion of the form filling procedure.
SENIOR PARTNER
TYPE
DIGITAL
Alright. Considering the fact that the automated part is tested, that leaves us with the address, which is manually filled. Can you please
elaborate on the procedure that is followed for entering the details?
The form has drop down menus from which the teller has to select the matching option. There is also a search feature for the drop
down menu. Only the first few lines of address prior to the city are typed into the form.
I can see the following reasons that could potentially cause problems:
●
The teller enters incorrect details. However, it was mentioned that the error rate is only 1%, so this is not the elephant in the room.
●
The options in the dropdown menu are not exhaustive or do not match. For example, some names of sub-districts may not be
present at all.
DIFFICULTY
Yes, that is indeed the case. The names of several districts have been changed by the state governments. This has been updated in
the SBI directory, but has not been updated in the API, which is causing a mismatch in the information that is being uploaded.
DIFFICULT
I think the bank can alias the names until the API is updated, ie, use both the old and the new names until the API is updated. They can then
get rid of the old name internally post update.
I AM VENGEANCE
COMPANY
Hey, let’s start with an interesting case. You’re batman, and you want to reduce crime in India. How would you go about
doing this?
Oh wow. So just to clarify, I’m Batman, the DC Comics superhero, and I want to reduce the number of crimes in India.
Yes.
ROUND
SENIOR PARTNER
So I just have a few questions before we start. Are there any particular crimes we’re looking at, such as organised crime, political,
or white-collar?
We can ignore white-collar crimes and focus on the more sinister ones.
Alright, what resources are we working with apart from my Batmobile and Batcave? Are we working along with the existing law
enforcement agencies in the country?
TYPE
SOCIAL
DIGITAL
IMPACT
IMPACT
Yes, we could work in partnership with them. And anything batman is known to have is yours.
Alright, that sounds great. Is there any particular time frame we have in mind?
Why don’t we try and work for one year?
DIFFICULTY
DIFFICULT
Okay. I believe I have enough information to start the case.
I’d like to address the issue of decreasing the number of crimes by looking at the whole process of committing a crime and trying
to analyse how we could reduce crimes at each step.
We could look at 1) Someone becomes a criminal, 2) Committing the crime, 3) Arrest & prosecution.
Does this structure sound alright?
I AM VENGEANCE
COMPANY
Okay. Let’s look at each in detail.
Great.
So for our objective of decreasing the number of crimes committed, we can look into ways to reduce the number of people
becoming criminals. Here we could look at both systemic and technological interventions for the same.
ROUND
SENIOR PARTNER
Firstly, we could look at vulnerable areas with the highest crime rates. We could look at systemic interventions such as: improving
access to education and employment, poverty alleviation schemes, and food security programs to move people away from
criminal activity as a livelihood with the money at our disposal. We could also leverage the help of local law enforcement for
increased patrolling and monitoring of these areas. Additionally, we could use technological interventions such as increased
monitoring of at-risk areas using CCTVs and setting up streetlights in poorly lit areas.
Okay, these suggestions sound good. Let us move on to the next area.
TYPE
SOCIAL
DIGITAL
IMPACT
IMPACT
DIFFICULTY
DIFFICULT
Okay. We can now look at how we could better catch criminals when they commit crimes.
Systemically, we could look at introducing informants in at-risk areas as well as organised crime gangs. Technologically, we could
introduce a more accessible and immediate way of alerting the police through WhatsApp or text messages or improve the existing
telephone helpline systems for faster and easier reporting.
In collaboration with local police, we could improve the infrastructure available such as faster vehicles for frequent policing, better
gear for the officers, and increasing the ratio of police available to the population.
Okay, these sound interesting. But are there things only batman could do?
I AM VENGEANCE
COMPANY
I see what you mean.
Batman, with his money and resources, could call on other superheroes, if they exist, to focus on particularly high-risk areas, essentially
Indian Gotham.
We could make the bat signal accessible to everyone on their phones to summon batman whenever they see a crime happening.
ROUND
Yes, that sounds good. We can move on to the next step.
Alright!
SENIOR PARTNER
TYPE
SOCIAL
DIGITAL
IMPACT
IMPACT
DIFFICULTY
DIFFICULT
Lastly, we have the arrest and prosecution. If we could reduce the number of criminals evading the due process of law, we could
dissuade people from crime as well as reduce the number of criminals moving around freely.
Firstly, we can look at the arrest and questioning aspect.
Systemically, we can improve transparency and accessibility by taping the interrogation sessions and sharing the obtained information
across agencies. Technologically, we could look to develop technology such as truth serums to easily obtain information about organised
crime units.
Next, we could look into the conviction and jail time.
Systemically, we could look to increase the conviction speed by increasing the number of courts or judges available, better evidence
handling and documentation, and weeding out corruption or influence of power or politics in the judicial system. We could also look at
better rehabilitation programs in jails, community building, employment opportunities and skill-building courses to ensure that they do not
return to crime after serving their time. Technologically, we could look at the digitisation of trial processes and documentation as well as
increased digital literacy, online training programs, courses and therapy targeted at those serving their time.
Do these suggestions sound alright?
Yes, they sound good. We’ve covered a lot of ground and explored some interesting suggestions. We can close the case.
HOTS @ MALAYSIA
COMPANY
Hey, your client is the Malaysian government. They have noticed that the performance of Malaysian students on HOTS
(Higher order thinking skills test) is less than expected with respect to the global average. Figure out why this is the case
and suggest ways in which they could correct this.
Okay. That sounds interesting. Could you tell me what exactly is the HOTS test like? What are they testing for?
ROUND
HOTS refers to reflective thinking, integrative thinking and deep thinking. It is associated with better logical and
cognitive tests. Think of the Mental Ability tests that used to take in schools.
Okay, got it. Has this been a persistent problem or something we’ve observed recently?
SENIOR PARTNER
It’s been more or less persistent.
Alright. Is there a particular age group of children who take the HOTS?
TYPE
SOCIAL
DIGITAL
IMPACT
IMPACT
Yes, good question. The HOTS test is usually conducted for the 11-12 age group or 6th graders.
I see. I think we can start by trying to figure out why this is happening.
We can broadly look at the factors inside the school and outside school. Inside the school, we can further look at classroom
activities and other school activities, whereas with outside school factors we can look at cultural, socio-economic or environmental
reasons.
DIFFICULTY
DIFFICULT
Hmm, we have not seen any issues in the outside school factors. How would break up the possible factors inside the
school?
HOTS @ MALAYSIA
COMPANY
Inside the school, we could first examine the possible factors inside the classroom. I think we could broadly break it up into, infrastructure,
teaching, course materials such as textbooks or exercise books and the examinations or testing.
Outside the classroom, we could broadly look at the activities students engage in, and the infrastructure such as sports facilities and labs.
Okay. Why don’t you look into the factors inside the classroom?
ROUND
SENIOR PARTNER
Alright, we could at each aspect and compare and contrast them with the global standards. Firstly, we could look at the infrastructure
required in the classrooms such as the number of seats, digital teaching aids, display boards, etc.
Secondly, we could look into the teaching. We could look at the teachers and their methodologies of teaching. In teachers, we can
examine their quality of teaching with respect to their quality of teaching and experience as well as accessibility such as teacher: student
ratio and time availability per student.
Okay, those are good practical parameters to judge the teaching and infrastructure by. We’ve noticed the teachers: students
ratio is quite low compared to global standards. Move on to the next aspects.
TYPE
SOCIAL
DIGITAL
IMPACT
IMPACT
Okay, the low ratio seems to be one of the reasons for poor performance in the HOTS.
Moving ahead, we could look into the course materials. Here we could look into the aspects of content/curriculum, pedagogy and course
load distribution. Have we noticed any discrepancies here?
Why don’t you elaborate on what could be the possible issues with each?
DIFFICULTY
DIFFICULT
Sure, I will do that.
With respect to the curriculum, we could look at the depth of topics being covered, their frequency of revision, and practical relevance in
comparison to global standards.
We could similarly contrast pedagogy in the aspects of textbook design, context-based learning, critical thinking prompts, etc.
In course load distribution we could see if the students are lagging behind or burdened more with respect to global standards by
comparing the content covered with respect to the age group.
HOTS @ MALAYSIA
COMPANY
ROUND
SENIOR PARTNER
TYPE
DIGITAL
IMPACT
DIFFICULTY
DIFFICULT
Okay, that’s a good breakdown of possible factors. We’ve noticed that the curriculum is a bit outdated and has not been
updated over the past 10 years. We’ve not seen any major differences in the examinations or testing methodologies we
have used.
You can move on to the ways in which we could improve the performance of students on the HOTS test.
Okay, based on the issues we have observed, we could first look at improving the teacher: student ratio in the classroom. We
could look at incentivising teacher training programs and required degrees. Better compensation and improved job security could
also increase the number of people choosing this career path. Additionally, we could look to create fast-track or online degree
programs without compromising on the quality of teachers.
With respect to the curriculum, we could look to set up a committee of teachers and professors that update the content on a 3- or
4-year cycle basis. We could also introduce more scientifically relevant topics beyond the global standards as well and improve
practical applications of the same.
Additionally, we could incorporate HOTS testing into the existing testing methods to improve the outcomes of the test.
Do these suggestions sound good?
Yes, they do sound good. I think we can close the case here.
ALL THE BEST!
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to an improvement in product, either by the need created or the motivation.”
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