DARDEN CASEBOOK SUPPLEMENT 2005
This year the Consulting Club with the help of volunteers collected a lection of actual cas that Darden students experienced during their ca interviews with major consulting firms, either for their internship or full-time position. We hope that this cabook supplement will be a valuable resource to you in your interview preparation.
A big thank you goes to all the contributors of the cas prented:
Nandini Bo (D’05)
Pablo Delgado (D’06)
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Ryan Elliot (D’06)
Matt Ganahl (D’06)
Laura Jacobs (D’06)
Jo Luis Garcia Caminas (D’06)
diveRyan Hess (D’05)yam
Alex Johnston (D’06)
beloved是什么意思Michael Kuntz (D’06)
Gerti Pellumbi (D’06)
Jason Qiu (D’06)
Kiran Raghavapudi (D’06)
Juliane Ray (D’06)
Jeff Sexstone (D’06)
Sabine Wu (D’05)
Good luck with your job-arch process and we hope that when you receive actual cas you will pay it forward as well by contributing to the next version of this cabook supplement.
Angela Huang
Editor and VP of Education, Consulting Club
October 2005
Actual Ca #1
Company: AT Kearney
Ca Description
A profitability/market estimation ca that included industry analysis components, as well.
Question
The leading cookie manufacturer in the United States has contacted us becau they are concerned about the growth of the private label cookie business.
Recently, the private label market has grown substantially and taken overall market share away from the brand name cookie manufacturers.
One of our client's major competitors has recently entered the private label market, and the client is
deciding whether or not they should do the same.
Initial data to be given
Candidate should be asked to first estimate the size of the cookie market in the United States (in dollars). They should also figure out how many players are in the market - there is one major competitor and veral smaller players. Specifics about the cookie manufacturing industry can be provided if asked for, but are not critical to the ca. Additional data to be provided when asked
Consumer preferences have shifted in recent years and people are more price nsitive in the cookie market than they ud to be. This is why the private label market has grown, stealing share from the branded cookie manufacturers.
Overall the market for cookies in the U.S. has remained steady for the past 5 years. Market share data for the US Cookie industry is below and can be handed to the interviewee.
nvlFrameworks that might be ud
Internal/external analysis, 5C's (Company, Customers, Collaborators, Competitors, and Context).
Solution
The candidate should properly size the market in the neighborhood of $1B and calculate total revenue figures from the data provided on the worksheet. They should figure out what the potential opportunity is in the private label cookie market and estimate how much of that revenue the client could potentially capture. Realizing that the main competitor who entered the space would have lost much more revenue had they not entered the private label market, the interviewee should probably recommend that the client participate, as well. In terms of challenges the company might face by entering the market, it would be good to mention cannibalization of existing brand sales, the lower margins received on the private label cookies, commoditization of the marketplace, and cultural issues within the company that could ari from producing a lower quality product.
Candidate’s Copy
Market Share Data for U.S. Cookie Industry
(millions of $)
5 years ago 3 years ago Today
Overall Cookie Market
Overall Market Size ($M) $1,000 $1,000 $1,000 Brand as % of Total Market 100% 90% 80% Private Label as % of Total Market 0% 10% 20% Brand Market Share
Client Share of Brand Market 60% 67% 70% Main Competitor Share of Brand Market 30% 25% 23% Other Players Share of Brand Market 10% 8% 7% Private Lable Market Share
Client Share of Private Label Market 0% 0% 0% Main Competitior Share of Private Label Market 0% 0% 40% Other Players Share of Private Label Market 0% 100% 60%
2013四川高考状元
Actual Ca #2
Company: BCG
Ca Description
A profitability ca, with industry analysis components.
Question
Our client lls scooters and motorcycles in an emerging-market country. Recently, revenue and profits have been declining.
What might be causing the dip in revenue?
What can the client do to rever this trend?
Initial data to be given
amplifierCustomers are typically lower-income consumers who cannot afford a car. Customers u the scooters to get to work and get around for everyday tasks. Additional data to be provided when asked
(Give the full sheet of data to the candidate)
Scooter Data
5 yrs ago Today Company Data
Market Size (# motorcycles) 1,000,000 900,000 Market Share 70% 70% Average Retail Price $500 $500
Fixed Costs (per scooter) $200 $200 Variable Costs (per scooter) $200 $200 Customer Data
Salvage Value $0 $0 Average Uful Life (years) 4 4
Gas Mileage (mpg) 60 60 Average Annual Maintenance Cost $100 $100
Motorcycle Dataqq英语名
5 yrs ago Today
Company Data
Market Size (# motorcycles) 100,000 500,000
Market Share 10% 10%
Average Retail Price $600 $500
Fixed Costs (per scooter) $200 $200staple
Variable Costs (per scooter) $200 $200 Customer Data
Salvage Value $50 $50
Average Uful Life (years) 4 4
Gas Mileage (mpg) 60 60
Average Annual Maintenance Cost $100 $100
The company has not pursued any expansion in the motorcycle category and would prefer to improve on the scooter side.
Frameworks that might be ud
Calculate the average cost per year of owning a scooter vs. the average cost per year of owning a motorcycle.
Consider ways to decrea the cost of owning a scooter (engineer it to get higher gas mileage, lower the retail price, improve reliability so maintenance costs will go down).
Consider the ways to grow revenue (acquisition, steal share, grow the market, etc) -- the company's preference is to grow the market.
Consider expanding into new markets.
Solution
Cost of owning a motorcycle is currently slightly cheaper than owning a scooter. The actual cost will depend on assumptions about gas prices.
Look for various possible ideas for expanding the market from the candidate.
Candidate’s Copy
Scooter and Motorcycle Data – 5 Years Ago Versus Today
Scooter Data
5 yrs ago Today Company Data
Market Size (# motorcycles) 1,000,000 900,000 Market Share 70% 70% Average Retail Price $500 $500
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Fixed Costs (per scooter) $200 $200 Variable Costs (per scooter) $200 $200
Customer Data
Salvage Value $0 $0 Average Uful Life (years) 4 4 Gas Mileage (mpg) 60 60 Average Annual Maintenance Cost $100 $100
Motorcycle Data
5 yrs ago Today Company Data
Market Size (# motorcycles) 100,000 500,000 Market Share 10% 10% Average Retail Price $600 $500 Fixed Costs (per scooter) $200 $200 Variable Costs (per scooter) $200 $200
Customer Data
Salvage Value $50 $50 Average Uful Life (years) 4 4 Gas Mileage (mpg) 60 60 Average Annual Maintenance Cost $100 $100
