Profitability consulting case interview: sports bar (w/ Bain & BCG Consultant)
ฝัง
- เผยแพร่เมื่อ 12 พ.ค. 2024
- 🎥 Your client is an entrepreneur looking to invest in a new bar. He needs to determine how profitable the company will be and convince his primary investor, his father, that it will be a viable business.
What factors would you consider and investigate?
Watch Eishan Dhandhania (Bain Consultant) run Daniela Fernandez (Darden MBA, BCG Summer Consultant) through this consulting mock case interview.
🎬 Video Sections:
00:00 Intro
00:50 Question prompt
01:49 Clarifying questions
02:56 Structure
05:36 Calculating revenue
14:47 Calculating profit
23:42 Calculating break-even
24:31 Calculating 5-year ROI
25:40 Recommendation
27:27 Conclusion
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This was very well done. Thank you
If the payback period is 5 years, why is the 5-year ROI not 0%? since there is no profit or loss at the 5 year mark due to the breakeven situation.
Great case, she killed it! Wahoowa
The interviewer's note has already mentioned the ROI calculation error.
bravo on the case. Is there a way I could practice on the case without someone, basically just by myself?
Yep, we've got that functionality available on RocketBlocks: www.rocketblocks.me (there is a free trial where you can check it out. It's called Case Mode)
the roi is wrong - annual profit (500K) *5 year period - Upfront cost (500K) / upfront cost = 0
The ROI is correct: Profit/ Investment multiply by 100 multiple by 5/100. The 100 is actually the percentage so that's why we will only write 100 and secondly, its 5 years so we will multiply by 5 and divide it by 100. 100 is kinda of lifetime. Its similar technique in identifying number of people aged less than 5 in India so it would be 5/ 70 multiple by 1.4B. The 70 is lifetime of the people
How is this a bad investment?Why is the 5 year ROI important? Considering a 100k annual profit, doesn’t this investment have an annual ROE of 20%? This seems a good investment. Can someone help me?
The annual profit is 100K, investment cost is 500k, & we had 3 questions- profitable, payback & ROI. Investment is profitable but we have ignored some important costs as mentioned by interviewer & interviewee, payback is less than 5 years which makes it good investment but ROI shows that investment is danger as ROI= Profit/ Investment multiply by 100 multiple by 5/100. The 100 is actually the percentage (ROI always comes in percentage) so that's why we will only write 100 and secondly, its 5 years so we will multiply by 5 and divide it by 100. 100 is kinda of lifetime. Its similar technique in identifying number of people aged less than 5 in India so it would be 5/ 70 multiple by 1.4B. The 70 is lifetime of the people