S11E6: McKinsey Public Sector Case - Postal Operator Under Pressure
Strategy Simplified
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How to Break Even at 2 Billion Dollars
For us to break even we need to get additional revenues of 400 million dollars. We spend about 765 million on labor cost for mailman deliveries so for us to get 400 million from this at salaries of 40,000 euros per year. So okay yeah that sounds right to break even at 2 billion but we know our client is interested in profitability not just break even. The other things to think about are how to actually go beyond break even to improve profitability to get to profitable state.
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