🎯 Key points for quick navigation: 00:00:00 *🎥 Introduction and Case Overview* - Introduction of the consultants and the case scenario, - Explanation of the case: a U.S. auto manufacturer facing profitability decline. 00:02:05 *🔍 Initial Clarifying Questions* - Clarifying competitors' profitability and industry context, - Establishing the client's market and product range. 00:04:02 *📊 Identifying the Core Problem* - Differentiating between revenue and cost problems, - Reviewing revenue and cost trends to identify cost increase as the core issue. 00:06:57 *🏭 Cost Structure Analysis* - Breaking down cost categories (materials, labor, factory, indirect costs), - Noting specific changes in cost percentages and identifying materials as the main area of concern. 00:09:08 *🧮 Deep Dive into Material Costs* - Analyzing which materials contributed most to the cost increase, - Performing calculations to confirm the significant rise in auto parts costs. 00:12:56 *🛠️ Investigating Auto Parts Costs* - Generating hypotheses on why auto parts costs increased, - Exploring factors such as supplier pricing, negotiation, and supply chain changes. 00:17:40 *🌍 Considering Outsourcing to China* - Discussing the potential shift to Chinese suppliers, - Factors to consider: cost, quality, supply chain predictability, risks, and alternatives. 00:24:42 *✅ Evaluation and Feedback* - Feedback on the analysis and recommendations, - Emphasizing key learnings and areas for improvement in problem-solving approach.- 00:00:00 🎥 Introduction to the Case - Giulio introduces the purpose of the video: showcasing a real case interview scenario, - Bruno is introduced as an ex-McKinsey consultant. 00:00:52 *📉 Problem Statement* - The client is an auto manufacturer in the U.S. facing profitability issues, - Competitors' profitability has increased while the client's has decreased. 00:02:14 *❓ Initial Clarifying Questions* - Bruno asks about competitors' profitability trends, - He inquires about the client's market segment and geographic focus. 00:04:02 *💲 Revenue vs. Cost Analysis* - Bruno determines whether the problem is due to revenue or costs, - It is identified that revenues have increased slightly, but costs have risen significantly. 00:06:14 *🔍 Cost Breakdown* - Detailed examination of cost categories: materials, labor, factory, and indirect costs, - Material costs have notably increased, identified as the primary area of concern. 00:08:00 *🛠️ Analysis of Material Costs* - Bruno breaks down material costs into specific components like steel, auto parts, plastics, and others, - Auto parts are identified as the major contributor to increased material costs. 00:12:56 *🔍 Focus on Auto Parts* - Deep dive into why auto parts costs have increased, - Hypotheses include increased quantity of parts, higher costs per part, and changes in suppliers. 00:17:40 *🌐 Considering Outsourcing to China* - Evaluating the possibility of outsourcing auto parts to China, - Factors include cost, quality, supply chain predictability, and risks. 00:24:42 *🎯 Final Analysis and Recommendations* - Comprehensive evaluation of outsourcing factors, - Considering alternatives like developing American suppliers, negotiating with unions, and other countries. 00:26:02 *💡 Feedback and Lessons* - Feedback on Bruno’s performance and areas for improvement, - Emphasis on understanding the client's problem before diving into solutions. 00:27:52 *🎯 Approach to Solving Profitability Issues* - Step-by-step method to address profitability issues, - Identify root causes: whether it's a cost problem or a revenue problem and pinpoint the specific product line or region, - Develop solutions for identified problems and explore other drivers if direct solutions aren't found, - Quantify the potential impact of each solution and assess its practicality and strategic fit. 00:29:24 *📚 Additional Resources and Course Promotion* - Mention of a video specifically addressing profitability case interview tactics, - Introduction of a free course on case interview fundamentals, focusing on teaching candidates to think like consultants rather than memorizing frameworks, - Encouragement to subscribe to the channel for more content on case interviews and consulting strategies. Made with HARPA AI

🎯 Key points for quick navigation: 00:00:00 *📝 Introduction to Profitability Case Differentiation* - Introduction of the topic: standing out in profitability case interviews. - Mention of the common candidate issue: finishing cases but not standing out. - Objective of the video: presenting five tactics to stand out. 00:00:52 *🏢 Acknowledge the Business Model* - Importance of acknowledging the client's business model in profitability cases. - Examples of breaking down profits according to the specific business structure. - Specific examples given: conglomerate and telecom company. 00:04:15 *📋 Create a Step-by-Step Plan* - Importance of making a step-by-step plan before using an issue tree. - Example of a telecom company's profitability problem and how to structure the approach. - Emphasis on realistic consulting approach vs. generic frameworks. 00:07:10 *🔍 Get to the Root Cause* - Necessity of finding the numerical and qualitative root cause of the problem. - Explanation of how to dig deeper by asking "why" multiple times. - Example: identifying customer attrition and its underlying reasons. 00:10:08 *📊 Quantify the Impact* - Importance of quantifying the problem's impact on profitability. - Explanation of the need to quantify both the problem and the solution. - Example: estimating the profit impact of improving internet infrastructure. 00:12:22 *🎯 Get Strategic* - Encouragement to bring strategic elements into solutions. - Explanation of how to add strategic insights beyond logical solutions. - Example: partnerships, marketing focus, and repositioning. 00:17:57 *🚀 Conclusion and Additional Resources* - Recap of the five tactics and their importance in standing out. - Advice on gradually implementing the tactics in practice cases. - Information about the free course offered for further learning and preparation. Made with HARPA AI

🎯 Key points for quick navigation: 00:00 *🎯 Introduction to Case Frameworks* - Explanation of the goal to teach effective techniques for case interviews. - Introduction of the presenter as an ex-McKinsey consultant. - Overview of the video content: structuring a business strategy case from scratch. 01:15 *📋 Case Question and Initial Steps* - Presentation of the case question: high-end European haircare brand entering the Asian market. - Importance of asking clarification questions and structuring a broad market entry case. 02:43 *🗺️ Framework Overview* - Four main questions to answer for the market entry decision. - Additional two questions to strengthen the argument. - Introduction of the first main question: market attractiveness. 04:06 *📈 Market Attractiveness Analysis* - Three sub-questions for determining market attractiveness. - Data needed: sales, growth, profitability, and competition behavior. 05:51 *🔍 Product Fit Analysis* - Assessing product benefits and positioning against market needs. - Comparison with other brands and identifying gaps in the market. 06:40 *🛒 Distribution Channels Analysis* - Evaluating the openness of B2C and B2B channels to new suppliers. - Talking to experts and potential challenges in distribution. 07:33 *🏆 Sustainable Competitive Advantage* - Identifying product, brand, and distribution advantages. - Importance of sustainable competitive advantage for market entry decision. 08:27 *💰 Investment Payoff Analysis* - Modeling return on investment for different market share scenarios. - Evaluating investment required and potential returns. 09:21 *🌍 Long-term Consequences* - Assessing the long-term impact of not entering the Asian market. - Importance of Asia's market share and profitability in the future. 10:44 *✨ Framework Customization Benefits* - Importance of a fully customized, prioritized, and relevant framework. - Comparison with generic frameworks and the value of tailoring to the problem. 12:07 *🎯 Being Concise and Direct* - Importance of having key questions and specific tests. - Structuring responses to be comprehensive yet to the point. 13:27 *📖 Clear Communication* - Ensuring the framework is easy to understand and follow. - Breakdown of tasks to different team members and project management. 15:14 *📚 Learning and Next Steps* - Encouragement to learn how to build tailored frameworks. - Promotion of the Case Interview Fundamentals course and additional resources. Made with HARPA AI

great video! thanks

Another tricky part here is having independet multiplier for 30% and 40% I calculated with 12+40% 20% of 12 = 2.4 therefore 40% = 4.8 Means 12+40% = 16.8 + the 30% 10% of 16.8 = 1.68 x 3 = therefore 30% 5.04 16.8+30% is 21.84 I got the same result but perhaps mine is 10 seconds slower? Does that make a big difference? or is it fine?

This case is oddly unique making it hard becasue the client wants to "buy himself into enterpreneurship". A standard framework for Mergers and Acquisition wouldn't match in the first half of the case. Usually, it is very often a company that's looking for help asking for choices on how to keep themselves profitable, by for instance buying merging/acquiring another company or it's a company that's directly asking if they should merge/acquire with company X Y Z. I was confused at 10:28 suddenly that client what's to acquire the company and don't even know exact company in question. Their revenues, their competition etc. But it seems like it can happen that your interviewer will suddenly fast forward so that we are not even required to decide yes? This one here is different and I can totally understand why it is hard. Thanks guys very much for the video. Great job!

Hi Bruno, In the second tactic, you mentioned providing the step-by-step plan. Would you mention the step 1, step 2, step 3, and then go over your framework? What would that process look like in a real case?

16:32

🎯 Key points for quick navigation: 00:00 *🎥 Introduction* - Overview of the case interview format, - Explanation of the case scenario involving the acquisition of an e-commerce business, - Encouragement to pause and answer questions as the video progresses. 02:18 *🛒 Initial Clarifying Questions* - Clarifying the scenario: individual acquiring a bed and bath e-commerce business, - Importance of understanding market attractiveness, - Discussion on financial background and motivations of the buyer. 03:27 *📈 Framework for Market Attractiveness* - Four key areas to evaluate market attractiveness: - Profitability of the market, - Competitive advantage, - Customer base potential, - Personal suitability for the buyer. 10:32 *🛍️ Increasing Sales* - Discussion on strategies to increase sales, - Approaches to get new customers, increase average sale, and boost repeat purchases, - Suggestions for exploring new sales channels and improving customer engagement. 19:32 *📊 Revenue Growth Analysis* - Analyzing potential revenue growth through selling in marketplaces and new product categories, - Calculation of the projected market share after two years, - Consideration of market growth and execution of new strategies. 25:25 *🤝 Final Recommendations* - Summary of the analysis and recommendations, - Emphasis on the importance of market growth and simple strategies to increase market share, - Suggestions for further due diligence before acquisition. 28:10 *🛎️ Conclusion* - Encouragement to subscribe for more case interview videos, - Information about additional resources and recorded interviews with real candidates. Made with HARPA AI

When doing profit cases do you not write a qualtitatieve framework (such as business situation)?

Just curious, are the candidates not allowed to use spreadsheet to do the calculations? Thanks.

Is doing the math for steel, plastics, and other really necessary considering how they all decreased in percentage?

Just something I noticed: The interviewer did not explicitly mentioned that he was talking about the aftermarket/replacement brake pad market size, right? The candidate also did not ask that as a calrifying question. How would you calculate for the B2B suppliers that sell brake pads for the auto makers?

I have one problem with the "Times replaced per year" calculations. If you decide to segment the users based on being commuters/non-cummuters, I would argue that taking a blanket 360 days a year is not valid. Commuters typically work 270 days per year - vacation days. Thus I would say that for the other 95 days, these commuters would be non-commuters.

How is revenue per sale or avg. Ticket calculated as a formula?And how would u use this formula mathematically to increase avg ticket/avg revenue per sale?

you dont need a MBA from Sloan to solve this..just common sense..i didnt see any technical wizardry here, just progressive narrowing down to the root cause

How to get better at reccomendations after identifying the root cause and how do you quantify impact on profitability?

My problem statement is how to enhance the soil health in india

At 7:55, I know you are structurally listing your ideas, but to an interviewer it seems like you are just listing ideas from the top of your head. How can we show the interviewer/client that I am not just listing ideas but rather following a set structure. In a sense, how do I convey my structure if at the end I am simply listing the ideas themselves in a list format. Could it be that the differentiating factor between naively listing and your method of listing at 7:55 be the verbal preface of saying "I will be structuring my ideas around the 3 C's as well as focus on product and infrastructure". By saying this phrase beforehand, I am now following a clear structure whereas if I don't, I would be naively listing ideas? Is that the only difference?

I couldn’t hear a word

Do more videos like this!!

What about cost "models"? Is it possible to create a video about it?

Awesome videos super helpful!

Awesome video. However, why did we only consider the replaced brake pads on active cars? There are also break pads bought by automakers and installed on new cars, i.e. straight from the factory. Shouldn’t we have considered those too?

Awesome video!

The ’simplification’ to $/axle was completely unnecessary, and I wouldve been embarassed by that as the interviewer (just use 20$ for pad, ffs) Also estimating miles driven in a year per car was way too complicated. You should do this in a much more simple way. Assumption for size of household was imo too much in the wrong, you can absolutely just use decimal numbers here. Also active cars/household seems too high on average, JUST USE DECIMALS, its simple multiplication. In addition, it seems the ’consumer vehicles only’ was pretty much forgotten throughout the interview. I would not be impressed by this candidate in all honesty.

Damn, sounds like a real consultant - no experience of doing, only experience of advising. If interviews are like that, probably MBB and big4 advisory departments are useless.

Bruno, thank you for sharing this framework and for sharing your knowledge, approach and experience 💗

Thank you so much for your increadible course and your videos 🥰

This is both great and sad.. because it really shows and it feels that this consultant never had skin in the game.. never truly launched and ecommerce business

i'll appreciate if you can explain how you arrived at the components of the breakdown for each question or objective. you mentioned what the breakdown is but not how or why you arrived at the component

best way to answer a question you don’t know the answer to it’s to just start asking questions lmao

This is definitely not a beginner market sizing example

The landscape technique helped me so much. Its like it opened a third eye 😂 thanks guys

Splendid! 1 quick question: why don't you consider the growth rate of the market for break pads? What about break pads for the new cars? So, I think growth in the # of households, population, # of cars per households can increase the cars in use, and so the # of break pads.

What about newly bought cars?

Might be a dumb question , are you allowed to use a calculator?

thanks!!!!!!!!!!!

This is such a great video. However, a quick question - Could this case be solved by doing Porter's 6 force industry attractiveness as it gives a fair idea on competition, supplier, buyer, complements and substitutes?

First, thank you for your material, I find it really helpful and practical! I just wanted to comment on one of your structures. At 7:58 I would structure the law firm case in the following way: [Layer 0]: 1. Hiring/firing solutions 2. Development solutions [Layer 1]: 1.A. Hire better people 1.B. Fire worst people 2.A. Train people 2.B. Give the people more motivation (different/additional responsibility, increase wage) [Layer 2]: 1.AA. Hire more educated people 1.AB. Hire more experienced people 1.AC. Hire smarter people 1.BA. Fire the least performing people This is just off the top of my head. I may have missed something tbh, but my structure also stipulates the firing element, which could also increase the overall quality of staff

superb

All of this could be easily done by a somewhat specialized gpt model.

Consultants are gay

Is it really important that you assess his arithmetic ability? Let him take out his phone and do a fiddly calculation and save everyone time. Even early high school math exams let you use calculators as they're not really after "gotcha" moments with simple arithmetic mistakes.

2 hours a day with an average 50mph is a long commute-- without traffic the time makes sense, but average MPH needs to be cut in half. Also, the assumptions on how many cars per household and people don't think about the cost of pads as it is nominal shows the bias of being middle + class.

Very late comment, considering how old this video is, but would it be appropriate to ask for a calculator? Even just a 4-function would make errors far less likely.

What a cloud of drool. I could've done this in 30s and get to the correct answer minus the haji accent ... lol .. these ex-bcg and ex-mck folks .... you're just alright and that's a reality check .. and please don't call this HARD .. call it what it is aptly .. PEANUT