Consulting case interview demonstration and commentary - Growth strategy
ฝัง
- เผยแพร่เมื่อ 21 พ.ค. 2024
- Consulting case interview and commentary with BCG alumni, Shaun Glassman and David Ma.
The case analyzes a growth strategy for the 1930's era gangster, 'Hal Poneca.'
If you would like to see more case demonstration videos, check out consultingconfidant.com/practi...
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my favorite ever recorded mock interview
Don’t remember learning and laughing this much ever in my life, great video!
this case interview is more practical and sick. unlike other case interview sites, this one is more client-consultant form of Q&A, analyzing and synthesizing. well done guys!
I currently work in Sales and I'm thinking about doing an MBA and using that to move into Management Consulting. Glad to know consulting is similar in its overall concept to the work I do now. This video was really helpful. Thanks
Thanks! I followed the excercise with a pen and a paper and really helped me.
Prepping for a BCG interview this was an excellent and easy to watch case study, which not only walked through all the key steps pertinent to the interview process but also displayed what the spirit and demeanor of the candidate should be. It really helped me get ready. Thanks guys!
Thanks Jaap - and how did the interview(s) go in the end?
En binnen gekomen bij BCG Jaap?
you are great guys, very interesting case, funny, catchy, informative, and not pretentious. I have been watching many case interviews and I find all answers are very pretentious but also very simplistic thinking to solve a problem, more like economics for a 10 year old child
I'm preparing for a Capitol One style interview and they interview all of their analysts & software developers this way. This is the most helpful so far! Thanks
Amazing case interview. Thanks for the content
Thanks for the explanations! I was actually honestly quite confused about the chart (size of the bubbles and their relationship to the x and y axes, the meaning of the alcohol bubble being bigger than the $10 million Chicago market size bubble, etc.), so I would not have been able to pick up on that insight because of the confusion. What's the best way to ask questions for understanding, and how much are you allowed to question the interviewer on the chart to understand it before you start looking bad?
Thanks guys, this was really helpful!
Awesome work gents. May I ask what software you use to record & edit this? Thanks!
Lol "Dirty Jerz" ... I thoroughly enjoyed this mock interview case study. Good job!
Great case study. Thanks for providing and sharing.
Great analysis! What came to mind though were why gangsters would own ice cream parlors.The logical explanation would be that they were washing their money through that business. The question then becomes, is there a need for exponential growth for the parlors as well in order to keep the laundering of money at a stable rate? What would be the need for expansion and growth if there were no way for the money to "come out the other side clean" so to speak. Given this, there are of course calculations to be made for further analysis but would love to get your take on this!
Great point! It's possible that the ice cream parlors were a vehicle for money laundering. It's also possible the parlors were used for commercial space or even to just have a presence in the community with some kind of legitimate business.
That being said, let's assume it was for money laundering. The revenue chart could not take into account the money laundering that would go through the ice cream parlor since ice cream revenue is small; leading us to include it's their actual ice cream revenue. In moving to another area, they'd probably need to set up some type of additional money laundering scheme in the new area - ice cream or otherwise - as you pointed out. This could just become part of COGS where they have to take a 10% or so hit off the top - or even some combination of investment + variable cost. I'm sure their relationships in their new area would be able to handle this.
This would be a great addendum to the case - great idea!!
Karwan Nisstany Ice cream parlours.....they're Italian.
Is it frowned upon to use a calculator when doing these calculations?
# fantastic! # Spot on😎
I loved it!
First 3 minutes, and I've already subscribed
is this case considered as a hard case?
Love the mythological background music..
I think it could have been cool if you mentioned prohibition and mentioned regulations
Hi guys, thanks for the video, really enjoyed it. Still struggling with the bubbles graph though. A couple of questions: 1. does the 10 mln limit apply to Loan sharking only or it is also related to alcohol? 2. It is not clear to me how to read the bubbles. For example, the alcohol one: should I consider the center point (20) as the X-axis value, or the distance between the left (17.5) and right (22.5) points? And the same with the y-axis coordinates...?
So the bubble represent the size of a market in chigaco.
The size of the Loan sharking bubble represent the size of the loan sharking market in chicago. It's roughly the size of the bubble given as a reference so it's 10mil.
The size of the alcohol is roughly 3 times the reference bubble so it's roughly 30mil.
Same for the other two (5mil and waay less than a 1mil).
Now that graph also provide the revenue from the client. For that you need to consider the center of the bubble along the x-axis.
Loan sharking is roughly at 10mil so they have the monopoly.
Alcohol is at 20mil so they have 66% of market share.
And along the y-axis you have the growth predicition for each market independtly.
So alcohol is expected to have the biggest growth.
Hope it's clear enough
🎯 Key Takeaways for quick navigation:
00:06 🎙️ *Introduction to the Consulting Case Interview*
- Introduction to the live case interview demonstration by consulting confidante.
- The hosts, Shawn Glassman and Dave Ma, are ready to present a live case.
00:19 🕵️♂️ *Case Briefing: Hal Panca's Growth Strategy*
- Briefing of the case: Hal Panca, a 1930s Chicago gangster, seeks to grow his business.
- The case involves exploring strategies to accelerate growth from 20% to over 50%.
01:13 📝 *Summarizing vs. Repetition in Case Interviews*
- Importance of summarizing the case instead of repeating it verbatim.
- Emphasis on understanding and rephrasing the case prompt in one's own words.
02:06 📈 *Discussing Strategies for Business Expansion*
- Strategies for expanding Hal's business portfolio and revenue are discussed.
- Consideration of organic growth, entering new industries, and mergers and acquisitions.
04:21 🤔 *Case Analysis and Strategy Development*
- Detailed analysis of potential growth strategies and market competition.
- Exploration of different pricing schemes and competition to inform business strategy.
07:08 📊 *Interpreting Data and Market Insights*
- Analysis of market segments and growth potential, particularly in alcohol.
- Discussion on the strategy of expanding alcohol production and exploring new markets.
09:17 💡 *Gaining Insights from Charts and Market Data*
- Extracting subtle insights from charts to understand market size and potential.
- Analyzing revenue by segment and market size to inform expansion strategies.
11:26 🌆 *Considering Market Expansion to Other Cities*
- Evaluating the potential of expanding the business to New York and other cities.
- Analysis of market dynamics, competition, and consumer tastes in potential new markets.
13:20 🚀 *Strategic Alliances and Market Entry*
- Discussing potential partnerships and joint ventures for market entry.
- Evaluating the strategic implications of entering new regions through alliances.
16:22 📊 *Calculating Profitability and Investment Decisions*
- Calculation of potential revenue, costs, and profitability of the proposed expansion.
- Assessing whether the investment is viable and aligns with business goals.
20:33 🎯 *Concluding the Case and Final Recommendations*
- Final analysis and recommendation to expand to Newark as a strategic move.
- Emphasis on aligning with the goal of 50% annual growth and long-term expansion.
Made with HARPA AI
great analysis! however, in most growth cases, I noticed they always start with profitability frame work and find out why the company isn't growing at 50% (in this case). In your analysis, we basically started with a list of potential recommendations, shouldn't we find the root cause first then make recommendation? In this case, Shaun is nice enough to guide David into an option to analyze, but what if the interviewer doesn't do this?
Great point. I don't think you always need to start with a profitability framework in a growth case, especially in this example. The economics of what is currently happening wouldn't necessarily tell you what they could do to grow more. Some cases have a specific problem to diagnose, while others will want to look towards assessing an opportunity. You need to be flexible but they common theme is to test a hypothesis that ties to answering the question at hand, synthesize the answer, refine your hypothesis and continue on.
The 20% growth is only in Chicago, a better question to ask would be whether the market in Newark has the same growth rate.. if not, you'd be on the losing end of the investment if the ROI is decreasing...
That's actually the point that kept me distracted during the whole case because this information was missing and would be beneficial in making a relocation decision.
I'd like to second the call for clarity on the bubble chart. Is it not that the size of the $10M bubble is the same as the value at which it sits on the x-axis? Does the bottom-right corner bubble not simply set the scale? That's different from saying the reason he has the whole market is because the bubble sizes match... if that were the case, how would you interpret the large bubble at $20M for alcohol? Would also love to see the x-axis labeled with the unit M (Millions).
Great question. The x-axis and the size of the bubbles are actually showing different data. The x-axis shows Hal's revenue for that segment (yes, it is in millions and we should have labeled it more clearly).The size of the bubble is actually the market size for that product line in Chicago. Therefore, when the loan sharking bubble looks to be about 10M and Hal's revenue is about 10M, it implies that he actually has all of the market share.
Haha thanks! Still not sure I'm on the same page because I came to the same conclusion about Hal's monopoly, but in a different way. Why would the reference bubble refer to only a specific product line? I think if I could understand that I'd be able to meet your logic.
*one question..is this really the level of cases they ask in interview??or did they choose very easy case for this example?? please reply*
I personally wouldn’t bother with working out with profit margin when the question specifically asked for revenue growth
¿Podrían agregar subtitulo en español?
You both make this look easy man, but the difficult part sometimes is to be able to feel comfortable in front of somebody with poker face, l prefer if client makes faces or agree but a poker face is difficult to read on something that might be too subjective.
1. I would combine ice cream with alcohol :) , offer special ice cream at special cost .
2. Then of course loans for the casino giving out some upfront credit maybe? lol
3. Instead of 4 businesses reduce costs to manage onlyo 2 businesses, food and gamble with loans.
Maybe creating a strategy, in which house always wins, like supermartingale of some sort for the casino, having a portfolio of debt from people as an asset for more loans, cut losses and expand icecream booz business. That'd be my crazy hypothesis :)
awesome guys, thanks
I'm not going to make it... Even though I understand how they made it, I can't seem to figure a way a to think about all the different scenarios to grow the business... I mean, the first part... Any idea on how to learn all of this? Are were I could start practicing frameworks? PLEASE HELP!
Book a book on business strategy. you get the necessary business models and tools from them. The growth model used in this case was Ansoff growth matrx
Can someone tell me where the 20 % come from? Are they just looking at the loan sharking 20% growth increase?
Thank you!
They mentioned the client remained 20% growth in the overall sales, so you could just use that for the overall growth later in the case.
Que Pasada , Muy Bueno !! ;)
What framework did he use?
Well he exposed it in his analysis but he basically adapted a growth strategy case framework.
As such he looked into the client market (in Chi), the client (Revenue streams) and then growth strategy.
For the growth strategy he focused on expanding activities by going to newark.
And then using this framework he adapted to the case.
Yusuke Urameshi Thanks.
I am a biotech graduate and wish to get a consulting job at BCG or Bain and company
Is an MBA necessary for this post or is there another way to go about it??
Where 30% comes from?
The interviewer gave that percentage. Hal Poneca will get a 30% share of all alcohol, gambling and loan sharking revenues if he follows up with the partnership.
Would MBB interviewers bring up the 20% organic growth when interviewee draws a wrong conclusion? That 20% figure is key to the case question - if candidate fails to revisit that info, won't they just write that person off as being sloppy (though it's most likely nerves)? Taking into account the competition for jobs at these MC firms.
Trisca Tong no probably not. you will get dinged and never hear from them again. This case is not accurate representations of MBB interviews.
Why does he talk about revenue growth when the question is about sales growth? Wouldn't the focus be on sales increase (quantity) rather than price? just wondering :)
That's exactly what i was thinking
we could get into some tax evasion and pay a part of it to IRS officers to keep them off our way. come on, we are already gangsters.
You DON'T mess with the IRS
v cool video! or should I say fantastic! :)
+Krish Moorthy #spotOn
why look at profit, when the client is asking sales growth?
Exactly it doesn't make sense
1:01 I Love This Already Lmfao
Can you actually show a REAL case from EY? Thank you!
We cannot show a real case from any firm because real cases are the intellectual property of each respective firm. However, you can get a lot of the mechanics down and great practice by completing similar types of cases with a partner.
Malort!
LOL ...........“COOL, another piece of paper..... interesting”
Buy real estate and operate business from real estate. Amazing Capital growth will increase profit
Murders & Acquisition 😂
Price increases dont actually make sense in terms of the question being asked. It dosen't ask how the firms can grow but how to increase 'sales'. It's basic economics that an increase in price would be moving away from the point of sales maximisation.
How much marijuana was consumed before making this video?
murders and acquisition :(
great attempt though b
Question, why did you provide a solution before understanding the whole business? Ex. If I am going to analyze it, my response would be to ask before recommending. So before I'm going to provide the "organic and inorganic approach, or etc" I'll ask to separate each category first, ex. Alcohol - if you want to grow your business here, more what is the current situation of your alcohol business? it is illegal so what is the "law" in the places you are working on that could potentially ruin the overall business.
Gambling - same with gambling, what is your current data
etc etc, then once the data has been presented, that's when I will recommend, my key is understanding the past before going on to the future, what do you think of that approach? Sorry, I haven't finished watching I just realize that you recommended first before really knowing their current situation
Where is 40Million come from ?
Chart at 19:11
Newark Alcohol + Gambling + Loan Sharking = 15 + 5 + 20 = $40M
Values before profit. Disinvite the client.
This honestly sounds like common sense
ridiculous.