Crack the Case. D. Ohrvall
.pdfNoble Line Travel |
C |
Pack: 006 page 28 of 30
Candidate Review Sheets
M – Mine for the Answer
Math Zone (make estimates and round your numbers)
Calculate Revenue
Revenue = transactions x average ticket price x commission rate |
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Noble Line |
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Hawke |
Travel |
Excursions |
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Globe Travel |
Destinations |
Shields |
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$75MM |
$144MM |
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$88MM |
$135MM |
$99MM |
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Calculate Profit |
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$13.5MM |
$68MM |
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$47MM |
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$24MM |
$19MM |
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Profit = Total revenue – Total costs (cost x volume)
Interpret the Numbers
•Excursions and Destinations have high revenue but for different reasons. Excursions had above average volume, the highest commission rate and above average ticket price. Destinations’ success is all about volume.
•So Excursions’ high profit makes some sense. But what about Globe Travel? What makes it so profitable? Basically, it is the ticket price. With an average ticket price of $800, almost double NLT’s, and costs in line with the others, their additional commission goes to the bottom line.
•Since there is a high correlation between high profit and high ticket price, looking for ways to increase the ticket price seems like a good idea. It seems that getting the international flights is the way to go since ticket prices are naturally higher and commission rates by country of origin vary (see Market Focus by Competitors handout).
•As for costs, the narrow spread between the best company and the worst company indicates that there probably is not a lot of opportunity.
Try Some New Scenarios
•Increasing ticket price by 20% for NLT would result in $15M of additional profit. $500 x 1.2 = $600 (new average ticket price) x 10% = $60 revenue - $41 cost = $19 profit per ticket or $28.5 M total.
Self Check |
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Data oriented |
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Quick to interpret |
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Collaborative style |
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Facile with numbers |
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Questions are specific |
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Explains gut check |
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Focused, not flustered |
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Purchase additional cases and the book Crack the Case: How to Conquer Your Case Interviews at www.consultingcase.com. 006 - Noble Line Travel 28 Copyright © 2004 Turtle Hare Media
Noble Line Travel |
C |
Candidate Review Sheets
Pack: 006 page 29 of 30
A Logical Flow Using the FRAME Method™ A Logical Flow Using the FRAME Method™
E– End the Case
What was your final conclusion? This should come within five minutes of the end of the interview so that you have time to discuss it.
As you conclude, listen to your answer and check and see if you are using data ($, numbers and percentages). Showing that you learned some facts during the case and that you are integrating them into your thinking will show-off your ability to be data driven. Keeping your opinions and recommendations fact driven will assure the interviewer that you are willing to learn and not just trust your gut.
SuggestedSuggestedAnswers,Answers,DiagramsDiagramsandandBehaviorsBehaviors
Good Ending: “ Noble Line Travel can increase its profit by focusing on revenue rather than cost reduction, since costs are already in line with competitors’. To increase revenue, international bookings will drive increases in our commission rate and our average ticket price. A 20% increase in revenue will result in $15M being added to the bottom line. I recommend that we quickly look into what clients we need to pursue to increase our number of international bookings”.
(Good logic and pretty concise. A great data driven example of how expansion can help the top line.)
OK Ending: “Noble Line Travel is doing poorly compared to competitors in terms of bottom line profit. We’re at the bottom compared to the four I reviewed. Two players, Excursions and Globe Travel, are doing much be. I think what sets them apart is their focus on international travel. We need to look into how international bookings could expand our business. I am concerned that those efforts will drive up our costs, so we’ll need to look into that too.”
(Gimme some numbers! You hit all the right categories, but I feel like everything is “we’ll look into it tomorrow.” You had plenty of data to get specific.)
Poor Ending: “Reducing costs has to be our top priority. It is the easiest to do as we are dealing with internal issues, and we have the worst per-ticket cost in the industry. After we get that under control we should begin to look at top line issues.”
(Have you ever spent time doing a cost reduction exercise in a company? Basically it’s a lot of work that results in a long list of challenges. Besides, we’re only going to save $4-5 per ticket. The real money is in revenue increases. Your answer is just plain wrong.)
Self Check |
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Several clear points |
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Well integrated |
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Concise |
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Persuasive |
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Includes next steps |
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Credible |
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Notes:
Purchase additional cases and the book Crack the Case: How to Conquer Your Case Interviews at www.consultingcase.com. 006 - Noble Line Travel 29 Copyright © 2004 Turtle Hare Media
Noble Line Travel |
C |
Candidate Self Assessment
Pack: 006 page 30 of 30
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My plan was MECE. |
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and gaps |
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and full of gaps |
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Analytics
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Recommendation
9. My final recommendation was to the point and data driven.
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Total Score:
(10-60)
Do this self assessment before asking the interviewer for feedback. How did your numeric score compare to the one the interviewer gave you? What is your top priority going forward?
Purchase additional cases and the book Crack the Case: How to Conquer Your Case Interviews at www.consultingcase.com. 006 - Noble Line Travel 30 Copyright © 2004 Turtle Hare Media
Always Fresh
Determined to conquer the world with the power of deodorant, the Always Fresh team has set their sights on going abroad. Help them navigate the international intricacies of personal hygiene. Will success smell as sweet outside of North America?
Case Pack: 007
Difficulty (1-5):
Crack the Case:
How to Conquer Your Case Interviews
consultingcase.com
Purchase additional cases and the book Crack the Case: How to Conquer Your Case Interviews at www.consultingcase.com. |
007 - Always Fresh 1 |
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Copyright © 2004 Turtle Hare Media |
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Always Fresh |
Case Pack: 007 |
Case Answers and Interviewer Notes
Candidates should not read through this pack until completing the case. Remove pages 3 through 6 before beginning the case.
Interviewer
I• Prep time: This case is rated 3 stars in terms of difficulty and has a few complexities. Expect to invest at least 10 minutes preparing. Review the following:
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Interviewer Fact Sheet (p. 7) |
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7 - 22 |
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Case at a Glance (p. 8-9) |
-Math Zone (p. 10)
-Handout Guide and Handouts (p. 11-20)
-Re-routers and Heavy Lifting (p. 21)
-Candidate’s “Mine for an Answer” sheets (p. 27-29)
•Giving the Case: Start the interview realistically - greet, shake hands, chat and introduce the case. To make the interview more challenging consider taking on an interviewer personality. For tips look at p. 25. After the case is over, fill out the Interview Feedback sheet and discuss strengths and weaknesses with the candidate.
C
Pages 23 - 31
Candidate
•Working with an Interviewer: Remove pages 3 through 6 to take notes and do your work. Give the rest of the pack to your interviewer. Interviewer prep is about 10 minutes for this case.
•After the interview: Rate yourself using the Self Assessment sheet in the back of the case pack. Review the feedback score and comments from your interviewer and discuss ways to improve. Review the suggested answers in the case.
•Self-study: Remove pages 3 through 6 to take notes and do your work. Remove any data handouts and place them face down. Follow the three Self Study Steps listed on these sheets. This self study method will help you form your plan, practice asking good questions and improve your ability to pull insights from the data slides. Keep in mind that you will benefit most from working with an interviewer who can evaluate your performance objectively.
Throughout these notes references will be made to the MVM™ (Maximum Value Model) and the FRAME Method™, the building blocks of the One Model/One Method™ approach to case interviews. Full descriptions of these unique tools, as well as additional cases, can be found in the book, Crack the Case: How to Conquer Your Case Interviews, available at www.consultingcase.com.
The facts of this case, company names and answers are completely fictitious. Any resemblance to actual people, places, companies and strategic outcomes is entirely coincidental.
Purchase additional cases and the book Crack the Case: How to Conquer Your Case Interviews at www.consultingcase.com. |
007 - Always Fresh 2 |
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Copyright © 2004 Turtle Hare Media |
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Always Fresh |
I |
Interviewer Fact Sheet
Pack: 007 page 7 of 31
CaseCaseQuestion:Question: AlwaysAlwaysFreshFreshisisaasubsidiarysubsidiaryofofaa$$30B30Bconsumerconsumerproductsproductsconglomerateconglomerate..
The company’s main product line is deodorant/anti-perspirant sprays, roll-ons and sticks. Sales over The company’s main product line is deodorant/anti-perspirant sprays, ro l-ons and sticks. Sales over
the last five years have been steadily growing in North America, and now the Always Fresh team is the last five years have been steadily growing in North America, and now the Always Fresh team is
ready to take its products global. As the team’s leader, how would you assess whether or not ready to take its products global. As the team’s leader, how would you assess whether or not
international expansion is a good idea? If so, which countries offer the greatest three-year revenue international expansion is a good idea? If so, which countries offer the greatest three-year revenue
opportunity?
opportunity?
AAFewFewTipsTipsfromfromDavidDavid
•This is a basic market entry case with critical data scattered throughout four different handouts. Star candidates will be on a mission to find certain facts and pull them from the slides.
•Make sure the candidate has all four slides at about the half point in the case. As you evaluate, look for tenacity in finding data as well as an ability to integrate the findings.
IntroIntroFactsFacts
(Tell(Te lthetheCandidateCandidateififAsked)Asked)
•Location preferences: None. Management
•Location preferences: None. Management
wants the project team to tell them. wants the project team to te l them.
•Product line: Any or all of the three deodorant
•Product line: Any or all of the three deodorant
types can be launched into new locations. Each types can be launched into new locations. Each
product (stick, spray, roll-on) lasts 3 months long product (stick, spray, roll-on) lasts 3 months long
on average. on average.
•Team: Internal resources appear sufficient to
•Team: Internal resources appear sufficient to
handle this launch. Candidate is the leader. handle this launch. Candidate is the leader.
•Capital, production and distribution: Parent
•Capital, production and distribution: Parent
company will support any well defined need. company will support any well defined need.
Worldwide production and distribution facilities will Worldwide production and distribution facilities will
help. Relationships with retailers are good. help. Relationships with retailers are good.
•Financial targets: 25% annual revenue growth
•Financial targets: 25% annual revenue growth
for 3 years and year one sales of at least $50M. for 3 years and year one sales of at least $50M.
•North American (NAM) sales: Last year’s sales
•North American (NAM) sales: Last year’s sales
were $350M. NAM growth is about 10% per year. were $350M. NAM growth is about 10% per year.
•Suppliers: Non-issue, North American suppliers.
•Suppliers: Non-issue, North American suppliers.
•Government/ Legislation: No barriers.
•Government/ Legislation: No barriers.
•Financing this venture: Non-issue. .
•Financing this venture: Non-issue. .
KeyKeyInsightsInsights
(Do(DoNotNotTellTe lthetheCandidate)Candidate)
•Market potential: Three countries are much
•Market potential: Three countries are much
larger than the others in terms of overall size: larger than the others in terms of overall size:
Germany, Japan and Brazil.
Germany, Japan and Brazil.
•Pricing: AF sells three different types of product
•Pricing: AF se ls three different types of product
that sell at different price points. Also prices vary that sell at different price points. Also prices vary
by country. However, since the three product by country. However, since the three product
types are weighted about the same, you can types are weighted about the same, you can
average the prices to develop an average price average the prices to develop an average price
for all units for a particular country. for all units for a particular country.
•Country Specific Competitors: There are
•Country Specific Competitors: There are
strong competitors in each market that AF wants strong competitors in each market that AF wants
to enter. Brazil and Japan are the most to enter. Brazil and Japan are the most
fragmented which would enable AF to take fragmented which would enable AF to take
market share from the small, local brands. market share from the small, local brands.
Although AF is new, their large parent Although AF is new, their large parent
organization will make it possible for them organization will make it possible for them
promote their products heavily and to use already promote their products heavily and to use already
established distribution relationships. established distribution relationships.
•Global Competitors: Mann and Rembrant each
•Global Competitors: Mann and Rembrant each
have solid market share in 3 different countries. have solid market share in 3 different countries.
They are well established companies like AF and They are well established companies like AF and
its parent company. its parent company.
On-Track Indicators
Data driven – asks for price, volume and usage by country
Results focus – thinks about getting product to customers by overcoming barriers and ensuring good distribution
Creative - discusses country specific issues like advertising, product name, perception of product after establishing a data driven strategy
Off-Track Indicators
Creative first – talks about customers’ different needs and how to address them before determining market size and country of focus
Too tactical – focuses too much on how to distribute, sell or make before
developing a data driven strategy
Too micro – drills too deep and long on a few issues, like which type of product to sell first
Purchase additional cases and the book Crack the Case: How to Conquer Your Case Interviews at www.consultingcase.com. |
007 - Always Fresh 7 |
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Copyright © 2004 Turtle Hare Media |
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Always Fresh |
I |
Case at a Glance
Pack: 007 page 8 of 31
Part
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Present the main |
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takes notes, asks for a |
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Answer any basic fact
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some answers. |
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Data &
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Provide
See Intro Facts on the Interviewer Fact Sheet.
No data. Ask questions about his approach.
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the full revenue potential. |
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Handout A. Ask, “How |
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country?” |
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we earn over the next 5 |
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countries in terms of |
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The candidate may start |
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years.” |
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deodorant usage?” |
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in several different areas, |
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Handout B. Ask, “What |
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revenue and profit |
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potential would be by |
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price structure here? Do |
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competitor products.” |
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this question include: |
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size of the potential |
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market, price per unit |
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sold, usage rates and |
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Handout C, competitor |
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evaluate this threat?” |
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why?” |
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Purchase additional cases and the book Crack the Case: How to Conquer Your Case Interviews at www.consultingcase.com. |
007 - Always Fresh 8 |
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Copyright © 2004 Turtle Hare Media |
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