Consulting Case Interview: A Profitability Case Study with ex-BCG Consultants

This video presents a detailed walkthrough of a common case type in consulting interviews – the profitability case. Deniz, an ex-BCG consultant, methodically solves the case and provides best-practice solutions that are universally applicable in any profitability case. Throughout his analysis, he demonstrates critical consulting skills, including data interpretation, structured problem-solving, and communication.

In line with our commitment to aiding your interview preparation, this specific case study is available for free as part of our 'Get the Offer' course:

Below are the sections in this video:
[00:00] Introduction
[00:21] Case Prompt
[01:25] Clarifying Questions
[02:52] Framework
[06:12] Feedback #1
[07:29] Context
[10:12] Root Cause Analysis
[17:49] Feedback #2
[18:48] Recovery Strategies
[23:14] Risks
[25:12] Conclusion
[26:43] Final Feedback

Please leave a comment if you have any questions. Our Prepmatter team will be more than happy to answer them!

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[Prepmatter]

This case study is available for free as part of our 'Get the Offer' course:

[Aheadyx]

Best case performance I know on YouTube - *congrats!* Stands out for three reasons to me:
✔Realistic structure: Seamlessly combines a procedural structure with a conceptual framework - really differentiating from an 'I would look into these four buckets' answer. As projects are inherently procedural due to phases and work packages, this is much more realistic
✔Meaningful tweaks: Only an experienced interviewee can bring these to the table - e.g. proposing an evasion strategy aka what if we can't do anything about the problem upfront in your initial framework
✔Distinct flow: Needless to say after the feedback - but I once spend a small three-digit figure on a paid course and seriously: you outperform every single video in that course. So thumbs up!

[raseshdhar]

The idea to assess the penetration status of the current product / bucketing the major cost heads and finding alternatives to cut it down or digitizing any manufacturing process can help to cut down cost significantly. Also, the possibility for considering pricing breakdown of competitors for the same product can be touched upon.

[vamsidahar]

It was so funny at 21:21- Where Deniz asks if we can't do anything what we could do?

[GoOf]

Hi guys, I would recommend starting with the root cause analysis since it’s the only section that actually answers the question. You can then understand and hypothesize the “context” within each driver during the root cause analysis.

[abhinandanganguly]

Very helpful content for someone like me who ain't into Bschool yet but interested into consulting. 🙌

[lourdeselizondo]

Other recovery strategies: (1) since the most impacted segments are bigger projects (heavy) maybe financing plans and more payment options can push sales. (2) Analyze what construction niche segments are less impacted by the negative macro outlook: commercial, versus residential, versus government infrastructure, and focus on the best segment. (3) Maybe start going B2C with a retailer like home depo, push home DIY campaigns on social media, (4) strategic partnerships to push B2B2G, (5) invest in technology to reduce direct manufacturing costs in the long term, (6) be more efficient in the production by reducing waste and increasing workers’ productivity maybe a more incentivizing compensation structure etc (7) Change suppliers. Also should not have disregarded that price stayed the same in the last two years* adjust at least with inflation.

[srikantharugula]

Thank you for sharing this. This was a wonderful case interview. I would like to understand what can be done to improve our ability to come up with business recommendations? Identifying the problem is one part, but it seems a great deal of experience was required to come up with even a decent recommendation in this case.

[rishabh]

As the problem is domestic and Tunisha is a coastal country in North Africa it can leverage its production capacity to cater to other markets - its close to Europe and also the Suez canal - therefore it can target Asian markets as well.

[RequiredCumbee]

When looking at Exhibit 2, could it not be a possibility that the client's increase in price is what was driving the decrease in sales? I know eventually we are told that the decrease in sales is more due to external factors, but why did the candidate not consider that possibility? That it was poor pricing strategy which led to decreased sales? (ie. they priced it too high)

[nonya]

One solution that could be viable for reducing the cost structure is to go for an asset-light model. That way you can generate cash flows through the sale of heavy machinery. This way you can save on fixed costs of maintenance of the assets. As and when the projects come the way of the company, they can hire-purchase or lease the heavy equipment. Could that be a possible solution as well?

[baraam.medhat]

I know the interviewer gave a context of weaker economy causing overall market decrease. Why haven't you explored the relationship between price and demand? Price per ton increased slightly between 2020 and 2021 and stayed the same in 2022. 16% drop in quantity sold first year and 13% second year. So price elasticity. Explore competitor pricing and the potential increase in revenue, market share if price goes down and quantity increases.

[amit]

The candidate says at 16:20 that the COGS will go up due to low demand and constant supply, which is incorrect. The cogs will actually go down in such a scenario as demand is low.

[waadabdullah]

Very helpful, please can you share with me the deck template?

[longjiD]

Really great case, thanks! Video kept shifting in and out of focus at times which was a bit distracting.

[akbar]

It would be so much better if we could see what Deniz is writing on his paper. Overall this is a very good case study.

[kevinastuhuaman]

There is an error in 16:49 about supply and demand

If the demand for raw materiales declines while the supply remains constant, the price of the good or service is likely to decrease. Here’s a breakdown of the economic reasoning:

1. Decrease in Demand: When fewer people want to buy the good or service at the existing price, the demand curve shifts to the left.
2. Constant Supply: Since the supply remains unchanged, suppliers will still be offering the same quantity of the good or service.
3. Excess Supply: With reduced demand, there will be a surplus of the good or service at the original price.
4. Price Adjustment: To clear this surplus, suppliers will typically lower their prices to attract more buyers, leading to a decrease in the market price.

Therefore, when demand declines and supply is constant, the price generally falls.

[abdulelahsm]

hi, i followed your approach of being specific and having my bucket as context, root cause.. and etc. My Bain & Co interviewer rejected me because it. They simply are too dum dum and want revenue bucket and cost bucket. I'm so mad

[penintended]

At 16:30 He said that when demand falls and supply is constant the prices can rise. Isn't it the other way? Unless demand falls and supply falls and procuring those supplies becomes difficult, then prices can rise for the company right?

[willthompson]

Hello Prepmatter, If I were to inquire about distribution networks for cement in Indonesian (I would imagine largely by boat) and suggest possibly selling to places like Malaysia or Singapore would this be unreasonable? The interviewer noted that Indonesia's public infrastructure spending was hurt especially. This way they could possibly reach their goal of 500M

Thank you for your video