Strategy Simplified S17E23: Intro to Casing (2 of 10): BCG Profitability Case Interview Example
May 12, 2025
Dive into the profitability struggles of a cookie company facing industry growth challenges. Discover how rising raw material costs and distribution expenses impact revenue. Learn about the complexities of inventory management for perishable goods and the importance of effective storage systems. The hosts also share essential strategies for acing case interviews, emphasizing structured problem-solving and clear communication. This mini-series is perfect for anyone looking to sharpen their consulting skills!
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Structure Profitability Analysis
- Approach profitability issues by analyzing revenues and costs separately before considering market factors.
- Break down revenues into sales volume and pricing; costs into fixed and variable components for clarity.
Consider Macroeconomic Impacts
- Expect cost increases in raw materials and distribution during economic disruptions like pandemics and recessions.
- Investigate labor supply issues in distribution as a potential driver of rising costs.
Spot Rising Storage Costs
- Rising warehousing and storage costs can be a hidden profitability killer.
- Steady increases in raw material costs may be normal, but large jumps in storage need further investigation.