Darden 2023-2024

Casebook
Darden School of Business
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DARDEN CASE BOOK 2023-24 FOREWORD

The cases featured in the 2023-2024 Case Book are

Prep
designed to give a wide range of industries and case styles
Material +
12 Total
This case book includes a case interview primer, industry
Cases
overview, and 12 total cases

8 New The 2023-24 Case Book features 8 brand new cases that will
Cases test a broad array of knowledge areas and math concepts

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UVA Darden School of Business 2023-2024 Casebook
TA B L E O F C O N T E N T S

Content Page
List of Darden 23-24 Cases 4
Greatest Hits 5
The Case Interview 6
Industry Overview 13
Darden 23-24 Cases 23

Note: These materials are proprietary information of the Consulting Club at Darden and should not be shared or reproduced without explicit written permission of
the Club. This includes feeding this content into generative AI assistants/tools. Any resemblance to actual businesses and characters is coincidental and these
cases are not expected to demonstrate effective or ineffective handling of a management situation.
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UVA Darden School of Business 2023-2024 Casebook
DARDEN 2023-24 CASES

New (N) / Difficulty

Case Title Industry Case Type Page
Refreshed (R) Quant / Qual / Overall

Sticky Surfactants (R) Chemicals Profitability 1 1 1 24

Pedal Pals (N) Technology Cost Improvement 1 1 1 33

Seven Flags (R) Entertainment Pricing 2 1 1 43

Weasley’s Wizarding Warehouse (N) Consumer/Retail Market Entry 1 2 2 53

Jane Darden’s Ranch (N) Hospitality Market Entry 2 2 2 64

PharmaCo (R) Pharmaceuticals M&A 3 2 2 74

Circle Bubble (N) Industrials Growth 3 2 2 82

Shisha: Just Blowing Smoke? (R) Public Sector Market Entry 2 2 2 92

Entertainment Co. (N) Entertainment M&A 2 2 2 103

Robots Inc. (N) Tech/AI Growth 3 2 2 115

Opus Two (N) Consumer Market Sizing/Optimization 2 3 3 126

News Co. (N) Media Diagnosis/Profitability 3 3 3 135

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UVA Darden School of Business 2023-2024 Casebook
G R E AT E S T H I T S – D A R D E N A N D O T H E R S C H O O L S

Case Title Case Book Industry Case Type

Mapflix Nollywood Fuqua 2018 – 2019 Tech Market Entry

Electric Walk Darden 2022 – 2023 Public Sector Product Launch

A Hairy Ordeal Darden 2020 – 2021 Consumer NPV

Penn and Teller Wharton 2017 Entertainment Profitability

Apache Helicopters Ross 2008 Public Sector Profitability

So Fresh, So Clean Fuqua 2014 - 2015 Consumer Profitability

Fighting Phillies Wharton 2017 Sports M&A / Valuation

Sourcing the Sauce Darden 2021 – 2022 Restaurants Growth

Pre-K Education Columbia 2017 Education Growth

Coyotes Fuqua 2014-2015 Nonprofit Non-traditional

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UVA Darden School of Business 2023-2024 Casebook
W H AT I S A C A S E I N T E RV I E W ?

A case interview is a short, simplified version of a complete consulting engagement.

Ideal Candidates
Problem-solving Ability Interpersonal Skills Cultural Fit & Passion
Demonstrate

Do you approach a problem in a Are you able to clearly Are you able to show, not just
structured way? communicate and convey your tell, that you will be a strong fit
ideas? for the firm and have a history of
How analytical and creative is team-work and problem-solving?
your thinking? Are you concise in your answers,
articulate, and easy to speak Are you confident and energetic
Do you use data to quantify with? in tone and body language?
recommendations?

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UVA Darden School of Business 2023-2024 Casebook
I N T E RV I E W S F O L L O W A C O M M O N F O R M AT

This is a common format for consulting interviews; however, it is not the only format.
Interviews could range from 30 minutes to 60 minutes, and some firms separate case
interviews and fit interviews. Make sure to research the company you’re interviewing
with to get familiar with their interview format.

Intro Fit Question Case Interview Q&A

3-5 Mins 5 Mins 20-30 Mins 5 Mins

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UVA Darden School of Business 2023-2024 Casebook
C A S E S A R E C O M P O S E D O F F I V E M A I N PA R T S

While all companies have different ways of casing, cases will typically follow a common
format consisting of the five main parts. You should be able to work with the recruiters at
the company you’re interviewing at to get familiar with their interview style – companies
are not trying to surprise you.
Intro Fit Question Case Interview Q&A

3-5 Mins 5 Mins 20-30 Mins 5 Mins

Prompt & Exhibits & Conclusion/

Framework Brainstorming
Clarifying Q. Analysis Next Steps

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UVA Darden School of Business 2023-2024 Casebook
EXAMPLES OF COMMON CASE TYPES

Profitability Market Entry / Growth Industry

Acquisition / Sale
Market Size Assessment

Analyze potential Analyze the client’s Identify opportunities Determine whether the Assess the health and
sources of profit opportunity to expand for the client to client should purchase attractiveness of a
declines and identify and quantify the viable optimally grow another business or particular industry to
ways to improve market for any new revenues or increase sell an existing part of advise a client’s
profitability products market share the company decision

Warning: This is not an exhaustive list of case types!

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UVA Darden School of Business 2023-2024 Casebook
C A S E M AT H : C H E AT S H E E T – K E Y F O R M U L A E

Net Present Value (NPV) Percent Change

• NPV is the value of all future cash flows brought to • This is a widely applicable formula used to calculate
present value by the interest rate minus the initial Increase/decrease in Revenue, Profits, Prices, Costs etc.
investment (if applicable) !"#$"% &'()* +,*%$""$"% &'()*
• %𝐶ℎ𝑎𝑛𝑔𝑒 = ,*%$""$"% &'()*
!"#$ %&'( !%
• 𝑁𝑃𝑉 𝑝𝑒𝑟𝑝𝑒𝑡𝑢𝑖𝑡𝑦 = )*#+',-. /".0 123'(.$ /".0
= 3 14
Return on Investment
Contribution and Break Even
• Return on Investment (ROI) measures the efficiency of an
• Contribution Margin shows how much of the company’s investment or a project and can be used to compare
revenues contribute towards fixed costs and income different projects
• 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑀𝑎𝑟𝑔𝑖𝑛 = 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 − 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡𝑠 -./0$12 +3/21 /0 4"5*216*"1
• 𝑅𝑂𝐼 = 3/21 /0 4"5*216*"1
• Breakeven quantity indicates how many units of product
need to be sold to cover the fixed costs Rule of 72
•
%*506 !'#.#
𝐵𝑟𝑒𝑎𝑘𝑒𝑣𝑒𝑛 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 = !'-.3*7,.*'- 8"34*- • The Rule of 72 allows you to calculate the growth rate an
investment will require to double in a specified number of
years
!"
• Investments double in % $%%&'( )%*+,+-* .'*+ years
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UVA Darden School of Business 2023-2024 Casebook
C A S E M AT H : C H E AT S H E E T – A C C O U N T I N G

Income Statement Margins

Revenue .+J+%&+ KLMNO N,P-- Q,PRS*
• 𝐺𝑟𝑜𝑠𝑠 𝑀𝑎𝑟𝑔𝑖𝑛(%) = =
.+J+%&+ .+J+%&+
- COGS Cost of Goods Sold
TU)V P, MW+,'*S%X Q,PRS*
• 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑀𝑎𝑟𝑔𝑖𝑛(%) =
Gross Profit .+J+%&+
Y+* )%ZP[+
- SG&A (Marketing, R&D etc.) • 𝑁𝑒𝑡 𝑀𝑎𝑟𝑔𝑖𝑛(%) = .+J+%&+
EBITDA
- Depreciation Key Points to Remember
EBIT Operating Profit
• Revenue is most commonly calculated as some form of
- Interest 𝑃𝑟𝑖𝑐𝑒 × 𝑉𝑜𝑙𝑢𝑚𝑒
- Taxes • COGS is the direct cost of manufacturing a product or a
Net Income service, typically Material & Labor costs
• SG&A are all other administrative expenses a business
would incur in the normal course of business
SG&A: Selling, General and Administrative Expenses; EBITDA: Earnings before Interest, Taxes, and Depreciation; EBIT: Earnings before Interest and Taxes

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UVA Darden School of Business 2023-2024 Casebook
DARDEN CASEBOOK GUIDE

To get the most authentic casing experience, you should aim to do at least one behavioral interview
question at the start of each case and have your interviewer take note of your timing
Indicates the overall difficulty of the case with a combination of mathematical technicality and creative
thinking ability. It is advised that you start with single star cases and work your way up to three star cases

Indicates the degree of math difficulty in the case. Harder cases typically have multiple stages of calculations
with multiple opportunities for mistakes

Indicates how creatively intensive the case will be. The more qualitative, the more thorough your framework
should be. These cases will place more emphasis on the brainstorming elements

Case Execution Communication Behavioral

Grading High scorers should be well High scorers should High scorers should give clear
structured, demonstrate demonstrate confidence, speak and concise answers that are
Rubric coachability, and make clearly, and have a tidy case relevant
insightful connections work

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UVA Darden School of Business 2023-2024 Casebook
 Industry Overview

Please note that these are commonly tested industries. This list is not exhaustive
of all the industries tested.

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I N D U S T RY O V E RV I E W – C O N S U M E R / R E TA I L
Key Industry Trends Important Calculations
• Digital Marketing: CPG (Consumer Packaged Goods) companies are pivoting to digital marketing
solutions like Facebook, YouTube, Instagram more than ever for smarter and more targeted advertising. 1. Inventory Turnover:
• Big Data: Consumer companies & retailers are ramping up the use of consumer shopping behavior data
now more than ever to create curated/ personalized shopping experiences and targeted advertisements.
AI/GenAI has made parsing through this data and generating new content faster and easier = (Sales / Inventory)
• Retail Omnichannel: Large brick & Mortar retailers are pivoting to an “order online, pick-up in store” mix
while also building out their online fulfillment capabilities to cater to the consumer. and keep up with
Amazon). Store foot-prints are also getting smaller to reduce inventory.
• Private Label & Amazon Effect: Private label consumer products are eroding market share of large name
brand products. This is partially driven by “the Amazon effect” of quick and cheap replacement fulfillments.
2. Gross Margin:
Brand loyalty is getting harder and harder to win.
• Direct to Consumer vs. In-store Experience: Brand names are slowly shifting resources to sell directly to = (Revenues – COGS)
consumers as some retailers struggle. Retailers with large brick & mortar footprints are focusing on in-store Revenues
experiences to attract customers

Important Terminology
3. Contribution Margin (CM):
• SKU: Stock Keeping Unit – Refers to a unique item sold in a store
• In-stock: Percent of items that are on the shelves and available for sale vs. what the total display can
hold = (Sales – Variable Costs)
• CRM: Customer Relationship Management: Strategy & tools designed to boost profitability and
strengthen customer loyalty by using data – also the name for software that facilitates this CM Rate = (CM)
• Loss Leader: Merchandise sold at a loss to attract new customers or stimulate other profitable sales (Sales)
• Mark-up: Percentage added to the cost of product to get selling price
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UVA Darden School of Business 2023-2024 Casebook *Please note that not all trends, terminologies, and calculations are listed above
I N D U S T RY O V E RV I E W – E N E R G Y
Key Industry Trends Important Calculations
• Clean Renewable Energy: Wind, solar, and biomass power are increasingly replacing the use of fossil
fuels in developed and developing countries with some projections indicating 80% of the world’s energy 1. Return on Investment (ROI)
needs being met by renewable energy by 2050
• Technology: Advancements in drilling techniques like “fracking” and horizontal drilling have significantly
boosted the output of US oil companies and substantially reduced the cost and risks associated with drilling = (Profits – Cost of Investment)
for oil. New tech for oil production not without controversies given renewable trends. Cost of Investment
• Shale: Newly found abundance of shale basins in the USA has helped to boost US oil production output
and has almost eliminated US dependence on foreign oil
• Natural Gas: Given its cheap and abundant supply, natural gas has become the primary source of energy
in the US, replacing crude oil and coal
2. Breakeven Point
• (Important) Petroleum Products: Gasoline, jet fuel, natural gas, fertilizer, plastics, detergent, propane,
diesel, lubricant = ______(Fixed Costs)____
Contribution Margin (CM)

Important Terminology
Important Considerations:
• Upstream (E&P): Exploration and Production – Process involving the finding, drilling, and producing of
crude oil and natural gas or liquified natural gas (LNG)
• Transportation / Distribution costs
• Midstream: Focuses on the processing, storage, marketing, and transportation of oil and natural gas.
• Storage Costs
(Most pipe-line companies fall in this category)
• Production Costs: Labor + Materials
• Downstream: Includes oil refineries, petrochemical plants, petroleum products distributors, retail outlets
and natural gas distribution companies • Plant Development Costs
• OPEC: Organization of Petroleum Exporting Countries – Cartel of 14 nations that coordinate petroleum • Depreciation & Taxes
policies. – Often influences output and thus oil prices • Overhead

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I N D U S T RY O V E RV I E W – T R A N S P O R TAT I O N
Key Industry Trends Important Calculations
• Airline Capacity Additions: Airline ticket prices have been in a state of flux in a post-Covid world, with
airlines struggling to add capacity due to pilot shortages 1. Potential Savings by Switching
• Fuel Efficiency: Airline companies have been investing heavily in upgrading their fleet to more fuel-efficient
aircrafts to reduce their biggest cost driver
Equipment
• EV (Electric Vehicles): Auto manufacturers are all racing to create battery-powered vehicles and the
charging infrastructure to go along with them = {New Profit – Old Profit} or
• Autonomous Vehicles: Semi-autonomous vehicles are widespread and fully autonomous vehicles being
piloted. This can cause major disruption to auto manufacturers, public transport, and insurance companies { [(New Capacity x Price) – (New
• Shortage of Truckers: Transportation companies have been struggling to keep up with the booming
demand for cargo shipments due to a massive shortage of truck drivers –thus causing significant increases
efficiency x cost)] – [(Old Capacity x
in labor costs Price) – (Old efficiency x cost)]}

Important Terminology
• Load Factor: Measures the capacity utilization of transportation services and is equal to the average
actual utilization divided by the maximum capacity
• PRASM: Passenger Revenue per Average Seat Mile –Or RASM (revenue) is the revenue generated per
Important Considerations:
available seat miles in which ASM = number of seats available x number of miles flown.
• Logistics: The detailed coordination of complex operations involving many people, facilities, or supplies. • Gasoline / Fuel Prices
• 3PL –Third party logistics companies offer logistics services to other companies. Can be cheaper for some • Carrying Capacity
companies to outsource their logistics to 3PLs. • Range / Distance
• LTL & FTL: LTL (Less than Load) – Small freight that doesn’t fill a truck which is generally more expensive • Destination Routes
to ship, (FTL) Full Truck Load) – Large shipments that fill a trailer and are thus cheaper to ship • Maintenance Costs
• Depreciation

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I N D U S T RY O V E RV I E W – M A N U FA C T U R I N G / A G R I C U LT U R E
Key Industry Trends Important Calculations
• D2C: Direct to Consumer: More manufacturers are leveraging their own sales platform to market, sell, and
ship their products to the customer rather than use third party distributers or retailers to boost profitability 1. Potential Savings with New
• Data Driven Analytics: Manufacturers are using predictive analytics and algorithms to improve product
design, optimize production cycles, and improve demand forecasting. Companies are using technology like
Equipment
Industry 4.0/IOT to gather data and AI/GenAI to implement solutions
• Trade-war & Tariffs: With global political crises brewing in various parts of the world, trade and financial = (New Equip. Expenses – Old Equip.
sanctions and subsequent retaliatory actions have affected manufacturing/agriculture supply chains Expenses)
severely.
• Sustainable Food Systems: Vertical farming has been a growing trend in urban locations to minimize [(Old Time x Old Labor) + (Raw Material
environmental footprints and bring produce to major cities Cost x Old Quantity) + Old Depreciation)]

- [(New Time x New Labor) + (Raw Material

Important Terminology Cost x New Quantity) + New Depreciation)

• (JIT) Just-in Time Inventory: “Pull demand” inventory system in which assembly materials and support
items are delivered as needed to minimize raw material inventory
• Commodity: An interchangeable non-differentiated product or material that is sold freely. (Most agricultural
Important Considerations:
products are commodities)
• Bottleneck: The resource in a manufacturing process that is working at max capacity and thus limits the • Raw Material Costs
output of the entire production • Labor & Wages
• Bushel: A unit of dry measure (1 cubic foot) for grain, fruit, etc., equivalent to 8 gallons of liquid • Capacity Constraints / Bottlenecks
• Out-source: Process of contracting an outside party to complete a production or service task for a • Commodity or Not?
business. –Typically done to save cost or due to a lack of expertise • Overhead Costs
• Supplier & Buyer Relationships
• Depreciation
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I N D U S T RY O V E RV I E W – F I N A N C I A L S E RV I C E S
Key Industry Trends Important Calculations
• AI, Block-Chain & Crypto Currencies: Digital distributed ledgers offer a cheaper and more efficient way
for firms to verify and facilitate transactions. Crypto currencies have proven themselves to be an alternative 1. NPV (Net Present Value)
set of asset investments that rival equities, precious metals, and debt holdings, but have faced a lot of
regulatory pressure
• Digital-Only Banks & Payments: The prevalence of more digital transactions have eroded the need for = (CF) x ___1 ___
cash for most daily use, which has in turn led to the proliferation of online banks that offer higher savings (1+i)n Where n = # of periods
account interest rates and comparable services
• Financial De-regulation: Congress passed legislation easing some of the restrictions from Dodd- Frank 2. Pay Back Period
that exempts smaller banks from certain capital requirements which frees up room for more loans
• More Transparency in PE Funds: With greater pressure to produce results that outperform their
benchmarks, more PE investors have been demanding greater transparency within their funds and firms = _____(Fixed Costs)_______
have been using transparency to attract investors Contribution Margin (CM)

Important Terminology
Important Considerations:
• AUM: Assets Under Management: Market value of all the financial assets that a firm manages on behalf
of all of their clients and themselves. –Includes capital raised by investors and leaders of a firm
• Current Portfolio
• Private Equity: Composed of investors and funds that invest directly into private companies or convert
public companies to private companies to improve the target company’s operations and financials with • Exit Strategy & Time Horizon
the goal of extracting a financial return from the company and reselling it another firm or the public at a • Acquisition Price
profit • Employee & Customer Relationships
• M&A: Mergers & Acquisition: Mergers are when two companies comes together to make a new entity • Market Trends
(Dow Chemical & Dupont) = DowDuPont, while an acquisition is where the smaller company is • Tax & Regulatory Implications
consumed by the larger company (Amazon + Wholefoods) = Amazon • Client Risk Profile

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UVA Darden School of Business 2023-2024 Casebook *Please note that not all trends, terminologies, and calculations are listed above
I N D U S T RY O V E RV I E W – I N F O R M AT I O N T E C H N O L O G Y
Key Industry Trends
Important Calculations
• Artificial Intelligence (AI)/ Machine Learning: Artificial intelligence is the ability for a computer program to
think and learn. The emergence of AI has enabled the rise of self-driving cars, smart homes, advanced
search algorithms, and smart digital assistants
1. Addressable Market size:
• Cloud Computing: Is the practice of using a network of remote servers hosted on the Internet to store,
manage, and process data, rather than a local server or a personal computer. More companies are moving Top-Down: Total Population >>> Number
to this platform for security, convenience, and cost savings of users >>> Market share >>> # of Units
• Internet of Things (IOT): Smart devices that are all connected and communicate with each other via the per User x Price per Unit
internet are rising in demand due to value of strategic data that they provide
• Blockchain: a digital ledger in which transactions made and recorded chronologically and publicly. –
Important for security and transfer verification purposes. Ex. include Bitcoin, and other cryptocurrencies Bottom-Up: Current Customer Population
• GDPR: General Data Protection Regulation: Data protection regulation protecting privacy for all individuals >>> Potential Customer Base (Estimated
in the European Union. using consensus data or industry info) >>>
Future user base x units per user x price
Important Terminology
• IP (Intellectual Property): A category of property that includes intangible creations protected by 2. Customer Acquisition Cost:
trademarks and copyrights (e.g. software, code, algorithms, etc.)
• Unicorn: a start-up company valued at more than a billion dollars, typically in the software or
_______Marketing Expenses_____
technology sector
• Freemium: A pricing model used by many digital services, a “freemium” model is one where the Newly Acquired Customers (Yearly)
majority of users are able to engage with a product or service entirely for free (perhaps in exchange for
data collection or being served advertisements)
• SaaS: “Software as a service” - a software distribution model in which a third-party provider hosts
applications and makes them available to customers over the Internet –Like Salesforce or Workday

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I N D U S T RY O V E RV I E W – M E D I A & E N T E R TA I N M E N T
Key Industry Trends
Important Calculations
• Cord Cutting / Over the Top Streaming: The rise of Hulu, Netflix, YouTube, Disney+, & Amazon Prime
video has left many to abandon traditional cable and opt for online streaming services to get the content
they want 1. Profitability
• Content is King: Media giants have been spending heavily to curate high quality content to hook
subscribers to their service and maintain and grow their subscriber base. As a result, many streaming (Revenues – Costs)
platforms are not profitable
• Ad-model Shift: Cable advertisement has been trending downward while digital online advertisements (Price x Quantity) – (Quantity x Var. Cost)
have been trending up. As online viewers opt for ad-blockers, AI and big data are helping marketing – (Fixed Costs)
agencies personalize advertisements and increase user engagement
• Augmented Realty (AR)/ Virtual Reality (VR): While still in their early stages, AR and VR capabilities have
been gaining traction in the industry as a way to enhance storytelling and improve sporting coverage
• Music Streaming: The rise of Spotify, Apple Music, & YouTube Music has almost eliminated the physical
Important Considerations:
disc music market as most artists now prioritize online platforms to release albums and new songs
• Gaming & E-Sports: The video gaming industry has been one of the fastest growing segments in
entertainment led by mobile gaming and game streaming experiences via Twitch and E-sports. Many video • Revenue Factors
game creators are focused on a “games as a service model” as they monetize video games overtime by • Advertising Rev.
selling in-game customizable perks • Ticket sales (Price x Quantity)
• Merchandising
Important Terminology • Tours / licensing / Endorsements
• Cost Factors
• Digital vs. Linear: Linear is traditional broadcast or cable television. Digital is online (streaming, etc.)
• Artist fees
• Ratings: A measure of viewers of a particular program or time segment in television. Nielsen is the
• Commission
largest provider of ratings data in the US, but has been slow to provide digital ratings
• Box-Office: The total revenue generated by movies shown at theaters • Promotion advertising
• Venues
• Content creation costs
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I N D U S T RY O V E RV I E W – H E A LT H C A R E & L I F E S C I E N C E S
Key Industry Trends
Important Calculations
• Wearable Medical Devices: Activity trackers help patients stay more active and healthier on their own
while also monitoring health metrics reducing the need to visit doctors frequently
• Smart Technology & Data: Data on a patient’s background and conditions allow more personalization
1. Market sizing:
options, targeted treatments, and faster recommendations at hospitals
• Gene Therapy: The transplantation of normal genes into cells in place of missing or defective ones in order Top-Down: Total Population >>> Number
to correct genetic disorders. Growing trend using CRISPR to treat previously uncurable diseases with Illness >>> Number Diagnosed >>>
• Price Transparency: As drug companies receive criticism on the rising cost of their drugs, more states are Market share of Drug >>>> (Dosage per
considering independent efforts to improve transparency in drug pricing and cost controls Time Frame) x Price per Dosage = Market
• Government: There is diminished momentum for repealing the Affordable Care Act (ACA). More recently, Size per Time Frame
legislation has focused on fixing the rising cost of healthcare and Medicaid in the US through increased
transparency and competition
• Bundled payment, episode-of-care payment, etc.: Generally, describes paying for the whole treatment at
Important Considerations:
once, rather than by individual tests or visits – an attempt to incentivize improved outcomes

• Regulations
Important Terminology • FDA Approval process length
• Orphan Drug: A pharmaceutical drug that remains commercially undeveloped due limited potential for • Patent Rights
profitability as a result of a small curable population size • Foreign Government Laws
• FDA: “Food & Drug Administration” Federal organization tasked with protecting and promoting the safety • Competition / Cannibalization
of food and pharmaceuticals in the US. FDA approval is needed for almost all drugs sold in the US • Drug Effectiveness
• Generic Drugs: A prescription drug that has the same active-ingredient formula as a brand-name drug • Cure vs. Treatment
but sold at a cheaper cost. Typically occurs when name branded drugs lose patents • Time to Market
• Biotech vs. Pharmaceutical: Biotech firms use live organisms like bacteria and enzymes to manufacture • Side Effects
their medicines while pharmaceutical companies primarily use chemical synthesis • Manufacturing Capabilities
• Pricing, Costs (Fixed / Var.), Dosage
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UVA Darden School of Business 2023-2024 Casebook *Please note that not all trends, terminologies, and calculations are listed above
I N D U S T RY O V E RV I E W – T E L E C O M M U N I C AT I O N S
Key Industry Trends
Important Calculations
• 5G Network Service: Next generation of mobile internet connectivity with faster speeds, more reliable
connections, and 100x more bandwidth capacity than 4G. Roll-out started in ~2020 in North America. Slow
progress on rollout due to high infrastructure costs associated with development.
1. Return on Investment (ROI):
• Network operates mainly on the cloud
• Allows for “network slicing:” Creates separate wireless networks on the cloud for users to have their (Future Profits – Cost of Investment)
own personalized network (Cost of Investment)
• Network Consolidation: The third and fourth largest cell phone carriers T-Mobile and Sprint recently
completed a merger, a move that will consolidate the telecom market to 3 major players
• Content Integration: High profile acquisition like AT&T of Time Warner and Verizon of Yahoo illustrate a 2. Customer Acquisition Cost:
push to either get into the content creation game or to build out their advertising network
• Bundle Battle: Cost-conscious consumers seek the best service at the lowest price, so companies offer
value to consumers by bundling services, such as mobile and home internet access _______Marketing Expenses_____
• AI: Used to enhance the customer experience, optimizing the network and providing predictive maintenance Newly Acquired Customers (Yearly)

Important Terminology
• Carrier: A company that is authorized by regulatory agencies to operate a telecommunications service Important Considerations:
system – AT&T, Verizon, T-Mobile
• OEM: Original Equipment Manufacturer – a company whose goods are used as components in the • Regional Competition
product of another company that sells the finished goods to users • Competitors
• LAN: Local Area Network – locally owned and administered data network that runs primarily through • New Entrants
cables (ex. Ethernet connection) • Barriers to Entry
• Fiber Optic: Transmission connectivity via glass strands which are 100x faster than traditional copper • Substitutability
wires for more efficient cell phone and internet connections • Contract lengths & stipulations
• Infrastructure
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UVA Darden School of Business 2023-2024 Casebook *Please note that not all trends, terminologies, and calculations are listed above
2023-24 Cases

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Sticky Surfactants
Chemicals | Profitability

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0 1 | C A S E : S T I C K Y S U R FA C TA N T S

STICKY SURFACTANTS
Chemicals | Profitability • Skills Tested: Divestiture, commodity pricing
• Suggested Timing: When candidate has completed 0-10 cases
Prompt: B E H AV I O R A L
Your client, CavalierChem, is a global chemicals manufacturer. CavalierChem recently acquired a
INTERVIEW
manufacturing facility that makes surfactants as part of a larger purchase of competitor assets.
Surfactants are a specialty chemical used for a variety of purposes, including laundry detergent,
QUESTION:
and the client has very little prior experience with this type of product. The manufacturing facility is
not currently generating profits, and the client wants your help in determining what to do.
1 . Te l l m e a b o u t
a time that you
Clarifying Information: Note: Provide this only if corresponding questions are asked. led a team. What
1. Does CavalierChem have a target in mind?
challenges did
The client wants to make the highest return from this facility as possible in the next 5 years you face?
2. What is CavalierChem’s core business/how do they make money?
80% of CavalierChem’s revenues come from the sale of commodity plastics to other manufacturers. The other 20% comes
from a wide mix of products that are either downstream or byproducts of their core business.

3. Why did they make this acquisition?

The manufacturing facility in question was part of a bundled acquisition of other manufacturing assets that are of strategic
importance to CavalierChem. CavalierChem now wants to evaluate the surfactant factory on its own.

4. What does the surfactant market look like?

The market for this particular surfactant is $300M annually. CavalierChem and one other competitor are the only significant
manufacturers.
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Framework Guidance:
Note: There are many possible alternatives to this framework. These are only provided as possible suggestions.

Increase Profitability Repurpose Divest

Costs • What products have similar • What price could CavalierChem get?
Revenues
Variable manufacturing processes? • Would the competition have a
Price
• COGS • What do the markets look like? monopoly?
• Contracts
Market Share • Hourly Labor • CapEx and OpEx for new products • Effect on customer relationships
• Increase sale to • Utilities • Timeline for adjustment • Effect on employees
Fixed
customers
• Overhead
• Find new
• Maintenance
customers
Research new uses • Salaried
• SG&A

How to Move Forward:

Candidate should identify at least 2 of these 3 options, if they only focus on profitability push them to think of alternatives. After they get 2/3,
move onto Exhibit 1. A good candidate should not bring acquisition price into account, as it is a sunk cost.

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0 1 | C A S E : S T I C K Y S U R FA C TA N T S

EXHIBIT 1
Average cost and profit breakdown for surfactants in cents/lb

6 2.0
0.5
5

4
2.7 2.7
3

1 2.3 2.3

0
CavalierChem Competitor
Variable Cost Fixed Cost Profit

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Question 1 (The location of these question slides in your case is completely up to you)
• What does this exhibit tell you about CavalierChem’s prospects for raising profits?

Exhibit or Question Guidance:

The candidate should notice that costs between the client and competition are identical, but the competition experiences 4x
profits. They should then realize the main lever to pull would be on the revenue side, primarily pricing as this information is
on a per pound basis. When/if they ask about sales structure and revenues, you should provide the following information:
• CavalierChem sells 1.4 million tons per year (can give 2000 lbs/ton if asked)
• 75% of sales are done on contract, the other 25% are sold on the spot market
- Average CavalierChem contract price is 5.67 cents/lb
- Average Competitor contract price is 7.67 cents/lb
- Average spot price (for both CavalierChem and competition) is 5 cents/lb

Candidate should use this information to calculate increased profits from matching competitor’s pricing
- 1.4 million tons * 2000 lbs/ton * 75% on contract = 2.1 billion pounds sold on contract
- 2.1 billion pounds * (7.67 cents/lb – 5.67 cents/lb) = 4.2 billion cents/100 = 42 million dollars in incremental profit

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BRAINSTORMING
Now that we know our revenues are below those of our competitors, how are some ways we can raise that per pound price?

Brainstorming Guidance:
Note: This is just one possible set of categories and answers. Many more are possible, and interviewers should assess both the volume and relevance of answers.

Customer focused Product focused

• Change sales mix of contract vs spot • Make product production process more sustainable and charge a
premium
• Change sales mix to emphasize highest paying customers
• Modify product to reduce customer use costs and capture some of
- Develop strong relationships with top paying customers their savings
• Sales dinners, events, etc.
• Renegotiate contracts

• Increase advertising of company overall to develop premium

brand

Best candidates display:

Great candidates will structure their brainstorming, and finish by driving the case forward wanting to investigate the other options (divest or
repurpose) that were discussed in the framework section

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OTHER OPTIONS
Ideally, the candidate also outlined options at the beginning of the case around repurposing or divesting. Lead the candidate back to
those options if they do not bring them up themselves and provide the following information

Repurpose:
• 50 million CapEx, 75 million in incremental annual profits, start-up in two years
Divest:
• Highest bidder willing to pay 200 million
Candidate should calculate following cash flow totals:
• Renegotiate contracts – 210M
• Repurpose – 175M
• Divest – 200M
Best candidates display:
Candidate should remember from the clarifying information that CavalierChem is interested total cash flow over the next 5 years. If they ask
about discount rate, tell them to ignore for now.

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CONCLUSION
We are having a meeting with CavalierChem’s CEO in 5 minutes, what do you think we should recommend?

Recommendation:
• CavalierChem should renegotiate contract prices to match the competition at 7.67
cents/lb
• Annual profits will grow by 42 million
Risks:
• Some customers may not be able to afford higher prices
• The market may contract
Next Steps:
• Look into customers cost structure and see if there is room for higher prices while
also soliciting alternative bids for asset sale

A candidate could recommend any of the three options with sound reasoning, the NPVs with 10% discount rate are roughly equivalent

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 INTERVIEWER FEEDBACK FORM Case Name _______________________ Interviewer ___________________________

Case Book ____________________ Case Type ____________ Difficulty ____________

Case Execution:
q Clarifying Questions + Framework
q Good Questions
Feedback:
1 2 3 4 5
q Structured
q MECE
q Creativity
q Exhibits + Analysis
q Accuracy Feedback:
q Speed 1 2 3 4 5
q Insights Presented
q Errors / Guidance Needed

q Brainstorm + Conclusion
q Creative & Structured 1 2 3 4 5 Feedback:
q Good Business Judgment
q Recommendation Strength

q Universal Skills
q Coachability & Collaboration
q Structured communication Feedback:
1 2 3 4 5
q “So what” & Business acumen
q Body Language, Confidence, Poise
q Adaptability

Total: _____ / 20
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 Pedal Pals
Technology | Cost Improvement

61
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02 | C A S E : PEDAL PALS

PEDAL PALS
Technology | Cost Improvement • Skills Tested: Evaluating financial statements, cost analysis
B E H AV I O R A L
• Suggested Timing: When candidate has completed 5+ cases
INTERVIEW
QUESTION:
Prompt:
Pedal Pals is an interactive fitness platform with millions of members, offering connected,
technology-enabled fitness classes that utilize its proprietary hardware, the Pedal Pal
1. Can you walk
stationary bicycle.
me through a
time when you
Recently the company has been challenged by a large, activist investor. The activist
had to quickly
investor is citing the plummeting stock price impacting shareholder returns. The activist has
adapt to a new
attributed the issue directly to poor cost control throughout Pedal Pals. Pedal Pals CEO has
work
hired your organization to determine how to manage its cost issue.
environment or
Clarifying Information: Note: Provide this only if corresponding questions are asked. team? What did
1. Does Pedal Pals have a goal for their cost restructuring? you do to ensure
If Pedal Pals CEO cannot decrease their costs to start obtaining an annual profit again, there is a high risk that the investor will your success?
engage in a leveraged buyout. Currently the CEO would like to cut costs enough to achieve a 5% profit target.
2. What is Pedal Pals current business model?
Pedal Pals earns its revenue through the subscription revenue of its members, hardware sales of its stationary bicycle, and branded
fitness gear.
3. What is the timeline for Pedal Pals to perform the cost restructuring?
Investors are demanding cost decreases in the next two quarters to meet year end corporate goals.
4. How is Pedal Pals supply chain structured?
Pedal Pals has an international supply chain made of up suppliers across multiple countries to source parts for their bicycle. For
distribution, they distribute online through their own website as well as offline through retail locations owned by the company.
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Framework Guidance:
Note: There are many possible alternatives to this framework. These are only provided as possible suggestions.

Internal Cost Cutting Measures Cost Cutting Considerations

Labor Production External Impacts Risks

• Cut Benefits • Manufacturing Warehouses • Existing Customers Willingness • Employee retention
• Reduce Overtime • Real Estate to Offer Live/ Record to Pay • Company morale from layoffs
• Cross-Train Employees Programs • Acquisition of New Customers • Quality reduction in service/
• Perform Layoffs • Inventory • Emerging tech in this industry product
• Condense Geographic Footprint • Automate • Competition in this industry • Competitive response to price
• Encourage Early Retirement • Renegotiate • Consumer trends in going to cuts
• Encourage remote work • Outsource gyms

Finance
• Overhead
• Payment Terms
• Liquidate

How to Move Forward:

The candidate should recognize this as a pure cost case and request to see the financials to assess 1) where the cost issue is arising from,
2) what cost decrease is needed to achieve the 5% profit margin, and 3) whether it is a realistically achievable number.
Provide Exhibit 1 only after the candidate has identified a clear path forward.

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02 | C A S E : PEDAL PALS

EXHIBIT 1
Pedal Pals 5-Year Trend Pedal Pals Financial Statement
millions ($)
$5,500
2021 2022 2023
Revenue
$5,000 Consolidated Statement of Operations Data:
Expense
Revenue
$4,500 Connected Fitness Products $1,462 $3,150 $3,313
Subscription $364 $872 $1,687
$4,000 Total revenue $1,826 $4,022 $5,000

$3,500 Cost of revenue

Revenue ($ millions)

Connected Fitness Products $833 $2,237 $2,242

$3,000 Subscription $156 $331 $335
Total cost of revenue $988 $2,567 $2,577
Gross profit $838 $1,454 $2,424
$2,500

Operating expenses
$2,000 Manufacturing $477 $728 $1,190
Real Estate & Office Space $351 $662 $839
$1,500 General & administrative $90 $253 $478
Total operating expenses $918 $1,643 $2,507
$1,000 Loss from operations ($80) ($189) ($83)
Other (expense) income, net: $12 ($10) ($21)
$500 Loss before provision for income
($68) ($199) ($104)
taxes
$0 Income tax expense (benefit) $3 ($9) $20
2019 2020 2021 2022 2023 Net gain/ loss ($71) ($190) ($125)

*Revenues and expenses are expected to be equal in 2024.

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02 | C A S E : PEDAL PALS

Question 1 (The location of these question slides in your case is completely up to you)
• Given the financial information in Exhibit 1, what cost decrease does Pedal Pals need to achieve a 5% profit in 2024 and
where should cost cutting be focused?
Exhibit or Question Guidance:
The candidate should ignore revenue for the purpose of the case. If a question regarding growth of revenue or cost in 2024 arises, reference
that each should be similar to 2023.
To assess the costs, the candidate should identify the large growth in expenses for Connected Fitness Products, Manufacturing, G&A, and
Real Estate & Office Space. Strong candidates will determine the percentage each is of total expenses to highlight where cost cuts should
originate. The candidate should realize that by subtracting the net gain/ loss from the total revenue, they can quickly aggregate the total
expenses and see breakeven to determine 5% profit.
2021 2022 2023
• Revenues and expenses are expected to be Total revenue $ 1,826 $ 4,022 $ 5,000
equal in 2024.
Net gain/ loss (71) (190) (125)
• $ 5b * 95% = $ 4.75b target costs Total Expenses $ 1,897 $ 4,212 $ 5,125
• $5b - $4.75b = $0.25b 2021 2022 2023
• $0.25b / $5b = 5% Connected Fitness Products $ 833 $ 2,237 $ 2,242
• Target cost cutting=(- $0.125b) + x = $0.25b Manufacturing $ 477 $ 728 $ 1,190
x= $0.375b
Real Estate & office space $ 351 $ 662 $ 839
Strong candidates should then begin identifying
ways to conduct the cost-cutting measures in General & administrative $ 90 $ 253 $ 478
the business areas.
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02 | C A S E : PEDAL PALS

EXHIBIT 2
Annual Savings from Alternative Manufacturer = $210 M

Reduce Real Estate Footprint (30 of 90) Offices

Expense Type Average Annual Savings
Utilities $30,000

Rent $170,000

Management $300,000

SG&A Layoffs (? of 20,000) FTEs

FTE Expenses Average Annual Savings
Salary $130,000

Benefits $40,000

Severance package $20,000

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02 | C A S E : PEDAL PALS

Question 2
Our team has determined that the two most efficient approaches to reducing costs are by pursuing an alternative
manufacturer and buy reducing head count and office space. Based on the information provided, by what percentage will
Pedal Pals have to reduce their work force to achieve their cost savings target?
Exhibit or Question Guidance:
To reach the $375 M in cost savings target, the candidate should piece the costs into three categories that can then be combined to
determine the percentage of workforce to be laid off : the savings from finding a new manufacturer, the reduction in the real estate footprint,
and the SG&A layoffs.

Alternative Manufacturer = $210 M

Reduction in Real Estate Foot Print

$30 k (Utilities) + $170 k (Rent) + $300 k management = $500 k * 30 (Offices) = $15 M

$375 M (Total Annual Savings Target) - $210 M (Alternative Manufacturer) - $15 M (Reduction in Real Estate) = $150 M additional cost
reduction remaining

SG&A Layoffs

Cost savings of $170k – Severance of $20k = $150k. Therefore, 1000 employees need to be laid off, or 5% of the workforce.

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0 2 | C A S E : PEDAL PALS

BRAINSTORMING
The Pedal Pals team agrees with your cost cutting recommendations. What concerns, specifically in regard to layoffs, do you
believe Pedal Pals should consider before moving forward?

Brainstorming Guidance:
Note: This is just one possible set of categories and answers. Many more are possible, and interviewers should assess both the volume and relevance of answers.

Internal Considerations External Considerations

• Fairness in layoffs • Financial cost • Legal requirements • Competition/ industry trends

• Timing of layoffs • Company culture • Legal liabilities • Industry/ country
• Support to impacted • Workforce productivity • Corporate brand & regulations
employees reputation • Customer impact
• Economic conditions
Best candidates display:
Great candidates will structure their brainstorming (pros vs. cons, internal vs. external options, etc.), and finish by driving the case forward
to determine whether the tradeoff of meeting the 5% goal in a short time frame (two quarters) is worth the potential risks to the firm. The
candidate should note that this would remove the pressure from the activist investor yet risk pressure from media and shareholders.

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02 | C A S E : PEDAL PALS

CONCLUSION
We are meeting with Pedal Pal’s CEO shortly regarding our findings, what should we recommend?

Recommendation:
• To reduce costs by $375m in the next two quarters and achieve a profit margin goal of 5%, I
recommend Pedal Pals address their labor, manufacturing, and real estate expenses by shifting to
an alternative manufacturer ($210m) and reducing office space ($15m) while conducting layoffs of
1k FTEs ($150m).
Risks:
• Mass layoffs (1k employees) impact external brand, internal morale, and culture, and could cause legal repercussions
• Outsourcing manufacturing could lead to quality control issues, intellectual property theft, and regulatory compliance
problems
• Revenue could decrease due to the impact of layoffs on our brand equity, leading Pedal Pals to not achieve the desired
revenue target.
Next Steps:
• Assist with building out a timeline for the recommended actions to ensure successful execution,
manage shareholder expectations, and ease the company’s concern about handling mass layoffs.
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UVA Darden School of Business 2023-2024 Casebook
 I N T E R V I E W E R F E E D BAC K F O R M Case Name Interviewer

Case Book Case Type Difficulty

Case Execution:
q Clarifying Questions + Framework
q Good Questions
Feedback:
1 2 3 4 5
q Structured
q MECE
q Creativity
q Exhibits + Analysis
q Accuracy Feedback:
q Speed 1 2 3 4 5
q Insights Presented
q Errors / Guidance Needed

q Brainstorm + Conclusion
q Creative & Structured 1 2 3 4 5 Feedback:
q Good Business Judgment
q Recommendation Strength

q Universal Skills
q Coachability & Collaboration
q Structured communication
Feedback:
1 2 3 4 5
q “So what” & Business acumen
q Body Language, Confidence, Poise
q Adaptability

Total: / 20
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Seven Flags
Entertainment | Pricing

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03 | CASE: SEVEN FLAGS

SEVEN FLAGS B E H AV I O R A L
INTERVIEW
Entertainment | Pricing • Skills Tested: Cannibalization, incrementality
QUESTION:
• Suggested Timing: When candidate has completed 0-10 cases

Prompt: Our client is a mid-size amusement park chain, with 10 parks around the U.S. 1 . Te l l m e a b o u t
serving over 10 million visitors each year. In their Richmond, VA park, it operates both a time when you
a traditional thrill-ride section, as well as an animal experience. (Show park map.) faced an ethical
Currently, the two sections are covered under one entry ticket price. However, dilemma.
management is considering offering a separate ticket for only the animal experience
section. They have come to us to determine if this is a good idea.
2 . Te l l m e a b o u t
a time you
Clarifying Information: Note: Provide this only if corresponding questions are asked. helped a team
overcome a
1. Financial goal: Management wants a payback period less than 10 years. (If the candidate asks, payback period
= investment / on-going profit.) problem.

2. Current price: Tickets are currently $20 and provide visitors full access to the park

3. Park attendance: The Richmond, VA park is an average sized park within the client’s portfolio

4. Business model: The park is a typical amusement park (think Six Flags or Busch Gardens). Visitors buy a ticket
for entrance (assume same price for adults and children), and all rides / amusements are accessible under the one
ticket price. The park also sells merchandise and food / drinks separately.
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03 | CASE: SEVEN FLAGS

EXHIBIT 1
Seven Flags park map

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03 | CASE: SEVEN FLAGS

Framework Guidance:
Note: There are many possible alternatives to this framework. These are only provided as possible suggestions.

Incremental profit Competitive landscape Macro trends

• Revenue: ticket prices, food & drink • Other attractions in the area • Changes in disposable income
sales, merchandise, visitor volume, • Zoos, petting zoos • Weather conditions
cannibalization of “ride + animal” ticket • Museums • Consumer entertainment preferences
sales • Movie theaters
• Existing costs: maintenance, animal • State fairs
care, labor/operations, COGS • All forms of family friendly recreational
(merchandise, food) activities
• New costs: Build out of new entrance,
wall between sections of the park, and
new parking

How to Move Forward:

Key insights include pricing decision, cannibalization impact, and recovery of new fixed costs. If candidate does not identify these in his/her
framework, push candidate to brainstorm incremental changes in revenue and costs.
When asked about pricing, ask candidate how he/she would determine price. After the candidate has brainstormed some ideas, present
Exhibit 2.

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03 | CASE: SEVEN FLAGS

EXHIBIT 1
Price elasticity of animal only admissions

1,400 1,300

1,200 1,100
# of park visitors (daily) 1,000

800 700

600 500

400

200

-
$10.00 $12.00 $14.00 $16.00
Ticket price
1. Cannibalization rate is 50%
2. Establishment is open 350 days per year

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03 | CASE: SEVEN FLAGS

Question 1 From Exhibit 2, candidate should want to discover which price would maximize revenue. See below for solution.

Exhibit or Question Guidance:

Cannibalized
revenue per Daily Yearly
Number of Cannibalization New ticket Cannibalized ticket (current Daily canibalized incremental incremental
Ticket price Visitors rate New tickets revenue tickets ticket $20) revenue revenue revenue

A B C D = B * (1-C) E=A*D F=B*C G = A - $20 H=G*F I=H+E J = I * 350

$10 1,300 50% 650 $6,500 650 ($10) ($6,500) $- $-

$12 1,100 50% 550 $6,600 550 ($8) ($4,400) $2,200 $770,000
$14 700 50% 350 $4,900 350 ($6) ($2,100) $2,800 $980,000
$16 500 50% 250 $4,000 250 ($4) ($1,000) $3,000 $1,050,000

• Revenue is maximized at a price point of $16 per ticket for the animal only admission. This equates to ~$1MM in incremental ticket sales or
a 5% increase
• From the prompt and clarifying questions, we know that Seven Flags sees about a million visitors a year at $20 per visitor in ticket sales.
Thus, current ticket revenue equals $20MM.
• Great candidates will mention that incremental revenue is sensitive to the cannibalization rate assumption

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03 | CASE: SEVEN FLAGS

BRAINSTORMING
Aside from ticket sales, what are some other considerations that will factor into the decision?

Brainstorming Guidance:
Note: This is just one possible set of categories and answers. Many more are possible, and interviewers should assess both the volume and relevance of answers.

Other revenue sources: Incremental costs:

• Food / beverages • Build out of new entrance, building a wall to separate rides
from animal enclosure, and additional parking
• Merchandise
• Additional employees to serve higher visitor volume
• Parking
• Payback period less than 10 yrs?
• Annual passes (individual / family)

Best candidates display:

Great candidates will have asked about specific KPI’s at the beginning of the case (i.e. projects must have a 10-yr. payback period or better).
Candidates should remember on his/her own to evaluate the payback period of this project and ask for the relevant information.
This brainstorming activity is an opportunity for great candidates to leverage their framework. Great candidates will return to their framework to
recall the primary objective and other ideas already generated.

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03 | CASE: SEVEN FLAGS

Question 2 What is the payback period of this proposal?

• Great candidates should recognize that they need to do this calculation. If not, help the candidate recall that one metric
Seven Flags uses to evaluate projects is a 10-yr. payback period.
• Provide only when asked: Fixed costs for constructing new entrance, wall, and parking lot is estimated to be $2 million.
• Only consider incremental revenue from ticket sales
• Seven Flags profit margin in 20%

Exhibit or Question Guidance:

• Candidate only needs to calculate the payback period at the $16 price point
• Payback period = investment / incremental profit
• Incremental profit = incremental revenue x profit margin. Incremental profit = $1,050,000 x 20% = $210,000
• Payback period = $2,000,000 / $210,000 = ~9.5 years

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03 | CASE: SEVEN FLAGS

CONCLUSION
To conclude, the interviewee should provide the following:
Recommendation: There is no correct answer, but a likely response could be:
• Move forward with creating an animal only admission ticket
• Incremental revenue / profit is maximized at a price point of $16.00 per ticket, leading to a 5% increase in ticket revenues
and profits
• Given the $2M investment, payback period is ~9.5 years – just below management’s requirement of 10 years
Risks:
• Incremental revenue / profit very sensitive to cannibalization. If actual cannibalization is higher, incremental profits will
suffer and payback period will exceed 10 years
• Potential opportunity cost to invest in higher ROI projects
Next Steps:
• Payback period will decrease (improve) if animal park can sell additional merchandise, food, and beverages to new
visitors. Size this opportunity and understand impact

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UVA Darden School of Business 2023-2024 Casebook
 INTERVIEWER FEEDBACK FORM Case Name _______________________ Interviewer ___________________________

Case Book ____________________ Case Type ____________ Difficulty ____________

Case Execution:
q Clarifying Questions + Framework
q Good Questions
Feedback:
1 2 3 4 5
q Structured
q MECE
q Creativity
q Exhibits + Analysis
q Accuracy Feedback:
q Speed 1 2 3 4 5
q Insights Presented
q Errors / Guidance Needed

q Brainstorm + Conclusion
q Creative & Structured 1 2 3 4 5 Feedback:
q Good Business Judgment
q Recommendation Strength

q Universal Skills
q Coachability & Collaboration
q Structured communication Feedback:
1 2 3 4 5
q “So what” & Business acumen
q Body Language, Confidence, Poise
q Adaptability

Total: _____ / 20
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UVA Darden School of Business 2023-2024 Casebook
Weasleys’ Wizarding
Warehouse
Retail | Market Entry
SECOND PRIZE - DARDEN CASE-A-THON 2023

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0 4 | C A S E : W E A S L E Y S ' W I Z A R D I N G WA R E H O U S E

WEASLEYS' WIZARDING
WAREHOUSE • Skills Tested: Incremental profit, cannibalization, breakeven B E H AV I O R A L
Retail | Market Entry
• Suggested Timing: When candidate has completed 5 -10 cases
INTERVIEW
QUESTIONS:
Prompt:
Fred and George Weasley operate a magic joke shop, Weasleys' Wizarding
Warehouse (Weasleys’). They currently have a single storefront located in the Diagon 1. Give me an
Alley shopping district. This store primarily sells magic products used for pranks to example of a
young students that attend Hogwarts School of Witchcraft and Wizardry. It has come to time you came
their attention that another store location has become available for sale in Hogsmeade, up with a
a small village near Hogwarts. The Weasley brothers are interested in expanding the creative solution
business and are curious if opening a second location in Hogsmeade makes sense. to a difficult
problem.
Clarifying Information: Note: Provide this only if corresponding questions are asked.
1. Are there current competitors in the market? Zonko’s joke shop is another magical store currently located in
Hogsmeade. Fred and George aren’t too worried, however. They believe they will be able to capture up to 30% of 2. What
the existing market in Hogsmeade.
accomplish-ment
2. What are the Weasley’s financial goals? Looking to breakeven on the investment within 4 years of expansion. are you most
proud of?
3. What type of products to they sell? They have three best-selling products: fake wands, smart-answer quills,
and love potions.

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0 4 | C A S E : W E A S L E Y S ' W I Z A R D I N G WA R E H O U S E

Framework Guidance:
Note: There are many possible alternatives to this framework. These are only provided as possible suggestions.

Financials Mkt. Attractiveness Capabilities Risks

• Potential Profits Trends • Core Competencies Timeline
• Product Sales • Growth • Resources • Major Milestones
• Price x Qty • External Factors • Expertise • Aligned to initial goal?
• Variable Costs • Training for new personnel
• COGS Competitors
• Overhead • Market Share Implementation Options
• Hourly salaries • # of comps • Buy
• Fixed Costs • Build
• Insurance Consumers • Partner
• Leasing new spaces • Market size
• Upfront Investment • Segments
• Needs/Gaps

How to Move Forward:

Candidate should identify that they need to determine the financial feasibility of the opening of a new store in Hogsmeade. If the candidate focuses on the capabilities
or other factors, push them towards the finances, specifically revenue, before presenting them with Exhibit 1.

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EXHIBIT 1
Monthly Sales

Diagon Alley Diagon Alley Hogsmeade

Product Sales New Sales Sales Price
(Current) (Projection) (Projection)
Fake Wands 400 360 140 $10

Quills 300 270 230 $20

Love Potions 200 180 120 $30

*Fake Wands, Quills, and Love Potions account for 80% of Weasleys’ revenue
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Question 1
• What stands out to you about the revenue projections of the two stores?

Exhibit or Question Guidance:

If candidate asks about any growth in sales over the four years, mention that we expect these projections to be the average across the first
four years.

The candidate should notice that the sales for the Diagon Alley store drop once the Hogsmeade location opens. Good candidates will
acknowledge that this reduction in sales could be the result of cannibalization of sales by the Hogsmeade store. Great candidates will
recognize that the drop is 10% exactly for each of the three products.

After discussing the drop in sales, the candidate should move towards revenue calculations for the stores based on the price and quantity
figures that are provided in the exhibit. Encourage the candidate to drive towards annual revenue numbers for each scenario.

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Exhibit or Question Guidance:

Question 1 Revenue Calculations
Diagon Alley Original Sales:
Incremental Revenue
• Wands: 400 units * $10 = $4,000/month
$360,000-$240,000 = $120,000/yr
• Quills: 300 units * $20 = $6,000/month
Once revenue calculations are complete, candidate should drive the
• Potions: 200 units * $30 = $6,000/month
case towards a discussion of cost in order for the interviewer to be
Total monthly unit sales = $16,000/month * 12 months = $192k/yr able to provide Exhibit 2.
Total sales for the shop = $192k / .80 = $240,000/yr

New Sales for Store:

• Wands: 140 + 360 units * $10 = $5,000/month
• Quills: 270 + 230 units * $20 = $10,000/month
• Potions: 180 +120 units * $30 = $9,000/month
Total monthly unit sales = $24,000/month * 12 months = $288k/yr
Total sales for the shops = $288k / .80 = $360,000/yr

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EXHIBIT 2
Business Costs

Insurance Ministry of Magic

Scenario Variable Costs Against the Dark
Taxes
Arts

Diagon Alley $108k / year

$1,900 / month $600 / month
(Current) (45% of Sales)

Diagon Alley +
$156k / year
Hogsmeade $2,800 / month $1,200 / month
(43.3% of Sales)
(Projection)

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Question 2
• Candidate should acknowledge that costs also need to be considered for the project. Once costs are acknowledged,
provide Exhibit 2.
• If they are not moving towards cost, prompt them with “so, what’s next?” and lead them to consider costs/additional
financial considerations
• Candidate should identify that they’re missing the cost of the new shop. The cost of buying and renovating the new
shop in Hogsmeade is $200,000.

Exhibit or Question Guidance:

If asked about any additional costs, let the candidate know that the costs listed in the exhibit are the only ones that we will need to consider
for this analysis. These costs are expected to remain consistent for the first four years.

The candidate should determine annual profit for each of the scenarios (DA vs. DA + HM) and use those values to determine the annual
incremental profit of making the decision.

Once annual incremental profit has been determined, this value can be used along with the CapEx value to determine the amount of time
that will be needed in order to breakeven on the investment.

.
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Exhibit or Question Guidance:

Question 2 Profit Calculations
Diagon Alley Original Profit:
• Overhead: $108K/year
• Insurance: $1,900/month * 12 = $22,800
• Tax: $600/month * 12 = $7,200
Total Yearly Costs: $138,000
Total Yearly Profit = $240,000 - $138,000 = $102,000

New Stores Profit:

• Overhead: $156K/year
• Insurance: $2,800/month * 12 = $33,600
• Tax: $1,200/month * 12 = $14,400
Total Yearly Costs: $204,000
Total Yearly Profit = $360,000 - $204,000 = $156,000
INCREMENTAL YEARLY PROFIT = $54,000

ROI Calculation:
Capex for new store = $200K
$200k/$54K = 3.7 years <- perfectly okay for candidate to round here as long as they realize they recoup the investment within 4 years of opening

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BRAINSTORMING
What other factors should Fred and George think through when determining if they should open the new location?

Brainstorming Guidance:
Note: This is just one possible set of categories and answers. Many more are possible, and interviewers should assess both the volume and relevance of answers.

Risks Alternatives
• Competition • Invest in new product R&D
• Additional cannibalization • Expand store in Diagon Alley

• Personnel considerations • Invest capital into yield seeking

account
• Brand implications
• Retire early

Best candidates display:

Look for the candidate to present some form of structure before moving into their brainstorming. This could be risks/alternatives,
internal/external, financial/non-financial, etc. Any of these options should produce some of the ideas above or additional creative ideas.
Once the candidate has exhausted several brainstorming ideas, move towards the final recommendation for the case.

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CONCLUSION
To conclude, the interviewee should provide the following:
Recommendation:
• Fred and George Weasley should pursue opening a second location of Weasleys' Wizarding Warehouse in the village of
Hogsmeade. This new location will provide Weasleys’ with the opportunity to raise the annual profit from $102K to $156K,
a $54K annual improvement.
• The project meets the company’s financial goals of providing a return (breakeven) within 4 years.
Risks:
• Cannibalization between the two stores could continue to be a problem moving forward.
• It could be more beneficial to build a new store in a different area rather than to buy existing
Next Steps:
• Develop a plan to open the store and identify good partners to help with the renovation of the store
• Find new advertisement programs or product options

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Jane Darden’s Ranch
Hospitality | Market Entry

THIRD PRIZE - DARDEN CASE-A-THON 2023

JANE DARDEN'S RANCH
Hospitality | Market Entry • Skills Tested: Payback Period

Prompt: • Suggested Timing: When candidate has completed 5 -10 cases

B E H AV I O R A L
Your client is Jane Darden, a longtime owner, and operator of the Wahoo Cattle Ranch, INTERVIEW
which has been in the family since 1883. However, since the early 2000s, QUESTION:
the Montana economy has experienced a dramatic shift in its local businesses and
consumers. The ranch is now surrounded by high-end resorts, fine dining, and a
burgeoning outdoor mall, which have increased the cost of property taxes and tightened 1. Give me an
the Wahoo Cattle Range profit margins. Concerned about the outlook of her ranch, Jane example of a
Darden has approached our team to determine whether she should enter the hospitality time you used
industry or not. data to solve a
Clarifying Information: Note: Provide this only if corresponding questions are asked. problem at work.

1. How does Wahoo Cattle Ranch make money? In addition to selling beef and milk, the ranch offers horseback riding, fly
fishing, and hiking tours.

2. Is there a timeline for when Jane Darden would want to make this potential pivot into hospitality? Jane is fine with an
investment as long as it reaches a breakeven in at most three years after construction begins.

3. What is Jane Darden’s primary goal if makes this pivot? Long term, Jane wants to maximize annual net income for her
business.

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Framework Guidance:
Note: There are many possible alternatives to this framework. These are only provided as possible suggestions.

Montana Hospitality Finance Potential options Other considerations

Market
• Population • Investment • Acquire an existing resort • Regulation
• Size of the • Δ Revenue • Open her own resort • Competitive response
Hospitality/tourism market • Δ Cost (VC/FC) • Keep farm (Do Nothing) • Human resources
• Disposable income • Synergies with current • Sell ranch to a big-brand • Brand alignment
• Consumption pattern business hotel
• Growth trends
• Competitors

How to Move Forward:

The candidate should recognize this is a market entry case. The interviewer should push the candidate to tackle the potential options of entering a new market,
including M&A or setting up its own operation. Once the candidate identifies at least two ways of entering the new market, move to Exhibit 1.

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EXHIBIT 1
Jane is considering the four options below.

Proposal Revenue from Profit margin

operation
Sell ranch to hotel chain XYZ

Partner with hotel chain XYZ passive investor

Buy existing old resort ABC and sell ranch operator

Build new hotel

= How optimal each option’s

finances are

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Guiding question 1
• Based on Jane’s available options, which would you recommend?
• If the candidate chooses option 4: What other qualitative or quantitative factors should Jane consider?
Quantitative options: IRR, NPV, breakeven timeline, execution risk, cash on hand, raising debt, etc. Qualitative: control, experience,
brand, family

Exhibit or Question Guidance:

Provide when asked by candidates:
• Candidate should conduct a structured analysis of the available options (e.g., pros and cons)
• Investment requirements: Only option 4 requires initial investment and only option 1 has an upfront cash inflow.
Best candidates
• Realize that the goal is obtaining the highest revenue in the long term.
• Realize that loss of income is not included in the Harvey Ball analysis
• Hypothesize the reason behind the downside of other options (lower margin for option 2 due to hefty management and royalty cost; low margin and revenue for option 3
due to high maintenance cost and lower demand associated with old property)

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EXHIBIT 2
Financial projection of the new resort

Options # of Average Rate Initial Fixed Variable

rooms utilization Investment Cost Cost
Wahoo 400 80% $300/night $10 M $15 M 10%
Holiday
Resort
Wahoo Prime 300 75% $500/night $30 M $15 M 15%
Resort
Note: Existing Wahoo Cattle Ranch earns an average of $ 7 M in annual revenue.

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Question 2
• Which option should Jane consider in order to break even in three years?
Provide if asked:
Holiday Resort Prime Resort • Assumption: 360 days per year
• Drive calculation using a simple payback
Days-room available (400 rooms * 360 days * 80% utilization) (300 rooms * 360 days * 75% utilization period (no time value of money)
= 115,200 days available = 81,000 days
Total revenue 115,200 days * $300/days = $34.56 M 81,000 days * $500/days = $40.5 M
(round to $35 M) (round to $40 M)
Variable cost (cleaning 10% * $35 M = $3.5 M 15% * $40 M = $6 M
(service and staff),
sales & marketing,
F&B
Fixed cost (utility, $15 M $15 M
depreciation, G&A, IT,
labor cost) Best candidates:
• Remember the breakeven requirements and
Net profit ($35 M - $3.5 M - $15 M) = $16.5 M $40 M - $6 M - $15 M = $19 M highlight that although the holiday resort has a
Loss of income from $7 M $7 M lower payback period, the primary goal is to
ranch maximize long-term income

Net profit after loss of $16.5 M - $7 M = $9.5 M $19 M - $7 M = $12 M

income
Payback period of $10 M paid back in just over 1 year $30 million paid back in ~2.5 years
initial investment

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BRAINSTORMING
Aside from the ROI/profit calculation we just did, what other factors should Jane consider to pursue this endeavor?

Brainstorming Guidance:
Note: This is just one possible set of categories and answers. Many more are possible, and interviewers should assess both the volume and relevance of answers.

External Internal
• Competitor Response – expectation of pricing war among • Labor – labor issue when firing/transforming current work
players, response of other ranch owners, etc. force from ranch to resort business
• Difference in regulation between resort and ranch business • Execution risk – Ability to fully materialize expected revenue
(e.g., high tax cost, licensing/permit issues, etc.) and profit. Will there be a ramp period where the resort
doesn’t make the full 100% projected revenue?
• The volatility of hospitality industry (particularly after the
pandemic, as ranch seems to be less volatile) • Family business – Due to the nature of family business, will
the family object against such drastic change and risk?

Best candidates display:

Great candidates will structure their brainstorming (pros vs. cons, short-term vs. long-term options, etc.), and finish by driving the case forward
to determine whether the pivot to resort business make sense. Great candidate will also realize that our assumption in the profitability
assessment might be flawed, hence putting additional consideration in the financial analysis is acceptable.
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CONCLUSION
We are meeting with Jane Darden shortly regarding our findings, what do you think we should recommend?
Recommendation:
• Example: We recommend that Jane build Wahoo Prime Resort based on the projected long-term revenue. This should meet Jane’s
investment requirement and increase her annual income by $12M ($7M to $19 M) and accomplish a breakeven within the 3-year timeline.
• Candidate can go with either option (holiday resort and prime resort) if there are adequate reasons.
Potential risks and next steps for the candidate to talk about:
• There are a few risks associated with this deal. Below are some examples, but the candidate should focus on just one:
• Capability mismatch-> The current workforce competencies may not align with future requirements, so develop a strong transformation
plan for the current headcount
• Regulatory risk-> The current land may be subject to zoning/regulatory restrictions under a number of different laws, so make sure to
conduct adequate due diligence
• Competitive response-> Competitors may respond with a price war, so ensure that a pricing strategy analysis is conducted to determine
the optimum price level

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INTERVIEWER FEEDBACK FORM Case Name _________________________ Interviewer ___________________________

Case Book ____________________ Case Type ____________ Difficulty ____________

Case Execution:
q Clarifying Questions + Framework
q Good Questions
Feedback:
1 2 3 4 5
q Structured
q MECE
q Creativity
q Exhibits + Quantitative Ability
q Accuracy Feedback:
q Speed 1 2 3 4 5
q Insights Presented
q Errors / Guidance Needed

q Brainstorm + Conclusion
q Creative & Structured 1 2 3 4 5 Feedback:
q Good Business Judgment
q Recommendation Strength

q Presence & Non-Verbal

q Confidence
q Poise / Posture Feedback:
1 2 3 4 5
q Clear & Concise
q Body Language
q Coachability

Total: _____ / 20
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PharmaCo
Pharmaceuticals | M&A

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06 | CASE: PHARMACO

PHARMACO
B E H AV I O R A L
Pharmaceuticals | M&A • Skills Tested: Expected Value, Valuation INTERVIEW
• Suggested Timing: When candidate has completed 10-15 cases QUESTION:

Prompt: PharmaCo is a pharmaceutical company with $10 billion in annual revenue.

It’s corporate HQ and primary R&D centers are in Switzerland, with regional sales 1 . Te l l m e a b o u t
offices worldwide. PharmaCo is interested in entering a new, rapidly growing segment a time when you
of drugs called “biologicals.” To gain the R&D capabilities requisite for biologicals, had to persuade
PharmaCo is considering acquiring BioLead, a biologicals start-up in Austin. BioLead is someone to do
privately owned and has an estimated valuation of $1 billion. Our firm has been hired something that
to evaluate the BioLead acquisition and to advise on its strategic fit with PharmaCo’s they at first
biologicals strategy. What factors should the team consider when evaluating whether didn’t want to
PharmaCo should acquire BioLead? do.

Clarifying Information:
1. What is PharmaCo’s core business? GP has a long, successful tradition in researching, developing, and selling
“small molecule” drugs. This class of drugs represents the vast majority of drugs today, including aspirin and most
blood-pressure or cholesterol medications.

2. Is entry-by-acquisition the only approach we should consider? R&D for biologicals is vastly different from
small-molecule R&D. Since its competitors are already several years ahead of PharmaCo in the biologicals market,
PharmaCo wants to jumpstart its biologicals program via acquisition.

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Question 1
• What factors should the team consider when evaluating whether PharmaCo should acquire BioLead?

Exhibit or Question Guidance:

A good answer would include the following:
• The value of BioLead’s drug pipeline, number of drugs currently in development, likelihood of success, estimated revenues and profits
• BioLead’s R&D capabilities (future drug pipeline), scientific talent, intellectual property (for example, patents, proprietary processes or
know-how for biologicals research), and buildings, equipment, and other items that allow BioLead’s R&D to operate.
• BioLead’s marketing or sales capabilities. Especially how promotional messages will be delivered, for example, relationships with key
opinion leaders that can promote biologicals; key opinion leaders can come from the academic arena, like prominent medical school
professors, or from the public arena, like heads of regulatory bodies or prominent telejournalists.
• Acquisition price
A very good answer might also include:
• BioLead’s existing partnerships or other relationships with pharmaceutical companies.
• PharmaCo’s capability gaps in biologicals, R&D, sales and marketing, etc.
• PharmaCo’s alternatives to this acquisition. Alternative companies PharmaCo could acquire. Other strategies for entering biological
segment, for example, entering partnerships rather than acquiring, and pursuing other strategies than entering the biological segment

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BRAINSTORMING
The team wants to explore the value of BioLead’s current drug pipeline. Based on market research, BioLead’s only promising drug, SM1, is
estimated to generate $10B in sales if brought to market. That said, what costs should be considered throughout the entirety of a drug’s
lifetime?

Brainstorming Guidance:
Note: This is just one possible set of categories and answers. Many more are possible, and interviewers should push candidates to be specific and comprehensive.

Research Regulatory approval Commercialization

• Highly skilled labor (scientists) • Regulatory fees paid to governing • Promotional materials • New facilities
bodies • Packaging materials
• Specialized equipment and labs • Marketing campaigns
• Salary / wages for in-house council
• Materials to file patents, trademarks, and • Production costs (materials, quality, • Distribution and shipment (logistics)
other legal documentation sourcing) • Taxes
• Phase I, II, III testing – proper
testing and documentation • Adding personnel (sales, marketing, • Patent infringement
administrative, regulatory)
• Cost of failed drugs

Best candidates display:

The best candidates will apply a customized structure and will brainstorm cost items specific to pharmaceuticals. Push candidate to produce a
comprehensive list by asking “What else?” one or two times.

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Question 3
• The team has pulled together the following data (show Exhibit 1). What is the value of BioLead’s drug, SM1?
Supply the following information only when asked:
- Costs by phase: Phase I $160M, Phase II $125M, Phase III $75M, Filing $5M. Costs are incurred only if the drug reaches a particular
phase.
- Costs of production: Manufacturing 5% of sales, Logistics 5% of sales, Other 10% of sales
- Lifetime revenue: $10B – great candidates will recall that this information was previously provided

Question Guidance:
• Revenue (discounted by chance of success): $10B x 70% x 40% x 50% x 90% = $1,260MM
• Production costs: $10B x (5% + 5% + 10%) = $2B, then discounted by chance of success = $252MM
• Phase 1 has a 100% chance of completion = $160MM
• Phase 2 achieved 70% of the time (probability a drug completes Phase 1) = $125M x 70% = $87.5M
• Phase 3 achieved 70% x 40% of the time = $75M x 70% x 40% = $21M
• Filing achieved 70% x 40% x 50% of the time = $5M x 70% x 40% x 50% = $0.7M
• Revenue ($1,260MM) – Production costs ($252MM) – R&D costs ($269.2MM) = $738.8MM SM1 drug valuation

This drug valuation essentially represents known future cash flows of the business. Great candidates will compare this figure against the
$1B BioLead company valuation mentioned in the prompt and hypothesis why the figures are different.

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EXHIBIT 1
Expected probability of success, by stage of research and development, %

70 40 50 90 Successful
Candidate Phase I Phase II Phase III
Filing marketing
drug trial trial trial
and sales

30 60 50 10
Fail Fail Fail Fail

Note: “Filing” is the process of submitting all of the clinical and safety evidence from Phase I, II, and III trials, and asking for regulatory approval
to actually sell the drug.

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Question 3
• What are your hypotheses on the major risks of integrating the R&D functions of BioLead and PharmaCo?

A very good answer would include the following:

• Little to no overlap in research or expertise leading to minimal collaboration
• Culture clash. PharmaCo is an established, mature business while BioLead is a young, entrepreneurial business
• Language barriers hinder communication and sharing of information
• Physical distance and time difference may lead to a poor sense of community
• Talent may leave BioLead after the acquisition – either as a result of newfound wealth from the sale of the business or
because they don’t want to be a part of a large corporation

The best candidates will recognize the human element of organizational change

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 INTERVIEWER FEEDBACK FORM Case Name _______________________ Interviewer ___________________________

Case Book ____________________ Case Type ____________ Difficulty ____________

Case Execution:
q Clarifying Questions + Framework
q Good Questions
Feedback:
1 2 3 4 5
q Structured
q MECE
q Creativity
q Exhibits + Analysis
q Accuracy Feedback:
q Speed 1 2 3 4 5
q Insights Presented
q Errors / Guidance Needed

q Brainstorm + Conclusion
q Creative & Structured 1 2 3 4 5 Feedback:
q Good Business Judgment
q Recommendation Strength

q Universal Skills
q Coachability & Collaboration
q Structured communication Feedback:
1 2 3 4 5
q “So what” & Business acumen
q Body Language, Confidence, Poise
q Adaptability

Total: _____ / 20
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Circle Bubble
Industrials | Growth

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07 | CASE: CIRCLE BUBBLE

CIRCLE BUBBLE
Industrials | Growth • Skills Tested: Interpreting exhibits, survey data, upselling
B E H AV I O R A L
• Suggested Timing: When candidate has completed 20+ cases
INTERVIEW
QUESTION:
Prompt:
The Private Equity Fund PEGrowth has recently acquired a company called Circle,
which is a company in the protective packaging space. Your consulting firm had 1. What
worked on the due diligence process for this deal and now the fund wants to increase attributes will
the value of the company. Due to the cost-cutting program already conducted prior to you bring to a
the acquisition, PEGrowth wants to focus on increasing revenue. case team?

Clarifying Information: Note: Provide this only if corresponding questions are asked.
2 . Te l l m e a b o u t
1. Products/Business Model: The target, Circle is a company in the protective packaging space. Their customers a time that you
include business clients in various industries. While historically, Circle focused only on providing air bubbles to
serve the flexible wrap and void fill markets, 2 years ago, the company started expanding into stretch plastic
failed.
packaging through an acquisition. Stretch plastic is a film, often used as kitchen protection film or around pallets
to fix different layers together.
2. Goal: PEGrowth wants to increase the revenue by at least 10% next year. The revenue in 2019 of Circle was
$250M in total.
3. Market: The market for packaging materials is characterized by the concentration of few players. The margin is
low with high transport cost; therefore, the market is geographically limited around the production facilities.

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Framework Guidance:
Note: There are many possible alternatives to this framework. These are only provided as possible suggestions.

Market Organic Growth Inorganic Growth

• Market size and growth • Price • Buy

• Customer • Increase/ Decrease • Competitor
• Preferences • Volume • Supplier (vertically integrate)
• Segment • New customers • Partnership
• Competitive landscape • Increase penetration • Joint Venture
• # of players • Channel strategy
• Market share • Existing customers
• Substitutes • Increase frequency / retention
• Bundling
• Product Mix
• New product development
• Prioritize high margin products

How to Move Forward:

To move forward, the interviewee should suggest an area to focus next. If the interviewee wants to discuss market, let them know that the market is growing in line
with the overall economy. The market is highly concentrated and geographically focused, so it’s not an option to aggressively expand to new markets or take away
market share of competitors.
If the interviewee wants to understand more about the company’s current financials, show them Exhibit 1.

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EXHIBIT 1
Cumulative sales by customer (total USD, 2019)

300

250
Revenue (million USD)

80%
200

150

100

50

0
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
Other ~ 460
1
2
3
4
5
6
7
8
9

Customers

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Question 1
• What are the insights you get from Exhibit 1?

Exhibit or Question Guidance:

In 2019, the total company revenue was $250M, which we know from the prompt.
This exhibit shows the cumulative sales for the company, starting with the largest customer (Customer 1, ~$50M), followed by the second largest customer, which
adds ~$20M in revenue, and so on.
As the 80% dotted line is illustrating, about 80% of the revenue (~$200M) came from only 25 of the 500 customers (5%).
Encourage the candidate to see what this 80% line is illustrating and ask them why we care.
Candidate should ask to understand these top 25 customers’ buying behaviors and find opportunities for improvement via a customer survey.

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BRAINSTORMING
We have conducted a survey with the top 25 customers of Circle and realized that only 3 out of 25 customers buy both air bubble packaging
and stretch plastics from Circle. What do you think are the possible reasons for this?

Brainstorming Guidance:
Note: This is just one possible set of categories and answers. Many more are possible, and interviewers should assess both the volume and relevance of answers.

External reasons Internal reasons

• Demand: Customers don’t need the products • Our sales departments don’t actively do cross-sell or upsell
• Product: Customers need that product but in different specifications • No incentive for sales reps to upsell

• Awareness: Customers don’t know that Circle has that products • Lack of knowledge transfer/training
• Contractual agreement: The customers are currently in long term contract • Differences in margins between the two products
with other suppliers

• Quality: Our quality does not meet customer demand

Best candidates display:

Structured answers
Relevant reasons to the case

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EXHIBIT 2
Survey Results of 25 Customers
Air bubble buyers Stretch plastics buyers
Customer demand
25 15 100% 100%
100%
16% 90% 90%
90% 25%
80% 80%
80% 50%
47% 57%
24% 70% 70%
70%
60% 80% 60%
60%
50% 50%
50%
40% 40%
40% 75%
33%
30% 30%
30% 60% 50%
20% 20% 43%
20%
10% 20% 10%
10% 20%
0% 0%
0%
Do you know that Are you willing to Do you know that Are you willing to
Do you need both Which products do
Circle offers buy stretch plastics Circle offers air buy air bubble from
products? you buy from
stretch? from Circle? bubble? Circle?
Circle?
Yes No Yes No
Only stretch plastics Only air bubble
Expected upsell potential: 75% of current revenue Expected upsell potential: 50% of current revenue
Both
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Question 2
• After interviewing with the management, we realized that Circle is not sharing leads across different sales
departments. Furthermore, there was no formal sales training, so sales reps in one department don’t necessarily know
about products of the other department. How can we quantify the revenue impact if we upsell at Circle?

Exhibit or Question Guidance:

From exhibit 1, we know that top 5% of customers account for 80% of total revenue (top 25 customers contribute $200M in revenue).
Therefore, the average revenue per customer in top 25 is $8M.
We know that of the 25 top customers, 15 need both products. Within this, we know that 20% of these customers already buy both (3 customers). We also know that
33% of customers are air bubble customers already (5 customers). The remaining 7 customers are stretch plastic customers only.
Air bubble
We know that of the 5 customers, 80% (4 customers) are not aware that Circle sells stretch plastics. Of these, 3 customers are willing to buy from Circle.
Therefore, expected upsell potential from air bubble buyers = $8M * 3 * 75% = $18M
Stretch Plastics
We know that of the 7 customers, 57% (~4/7, so 4 customers) are not aware that Circle sells air bubbles. Of these 2 are willing to buy from Circle.
Expected upsell potential from stretch plastics buyers = $8M * 2 * 50% = $8M
Total upsell potential = $26M, which is ~ 10% of current revenue ($250M)
è The company can achieve the goal of increasing revenue by 10% by encouraging upselling.

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CONCLUSION
To conclude, the interviewee should provide the following:
Recommendation:
• The company should upsell between product lines to existing customers to increase revenue by 10%.
Risks:
• “Willing to buy” are not necessarily going to buy
• Capability to execute cross-selling
• Dependency on a group of customers (top 5%)
Next Steps:
• Work with head of sales departments to prepare for cross-selling.
• Conduct further study to understand the current production capacity to serve new growth

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 INTERVIEWER FEEDBACK FORM Case Name _______________________ Interviewer ___________________________

Case Book ____________________ Case Type ____________ Difficulty ____________

Case Execution:
q Clarifying Questions + Framework
q Good Questions
Feedback:
1 2 3 4 5
q Structured
q MECE
q Creativity
q Exhibits + Analysis
q Accuracy Feedback:
q Speed 1 2 3 4 5
q Insights Presented
q Errors / Guidance Needed

q Brainstorm + Conclusion
q Creative & Structured 1 2 3 4 5 Feedback:
q Good Business Judgment
q Recommendation Strength

q Universal Skills
q Coachability & Collaboration
q Structured communication Feedback:
1 2 3 4 5
q “So what” & Business acumen
q Body Language, Confidence, Poise
q Adaptability

Total: _____ / 20
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Shisha: Just Blowing Smoke?
Public Sector | Market Entry

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SHISHA: JUST BLOWING

SMOKE? • Skills Tested: Comparable data, growth rates, adoption rates
B E H AV I O R A L
• Suggested Timing: When candidate has completed 10 – 15 cases
INTERVIEW
Public Sector | Market Entry QUESTION:
Prompt:
Over the past five years, the government of Saudi Arabia has been focused on reducing economic
dependence on oil by diversifying the domestic economy. As part of this effort, the government has 1. Name three
evidenced a willingness to relax certain social norms. As part of the diversification initiative, the adjectives that
government hired us to forecast the potential revenue impact of taxing shisha consumption. your learning
team would use
Clarifying Information: Note: Provide this only if corresponding questions are asked. to describe you.
1. What is shisha? Shisha is an instrument for vaporizing and smoking flavored tobacco. In the Arab world and
Middle East, people smoke waterpipes as part of the cultural traditions.
2. How will the Saudi government make money off of shisha? Institutions must apply and pay for an annual
license to sell shisha. Additionally, sales tax and import tariffs are levied by the government as appropriate.
3. Is there a specific revenue target in mind? No, the Saudi government only wishes to maximize revenue over
a 3-year period.
4. How much revenue does the Saudi government currently earn? 2.5 trillion Saudi riyal annually. Tobacco and
other related products currently generate 500 million SAR in revenue.
5. Are there any social norms we should be aware of? Islam is widely practiced by Saudis citizens and governs
their personal, political, economic and legal lives. Additionally, public consumption of shisha is currently banned
but is widely consumed at home.

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Framework Guidance:
Note: There are many possible alternatives to this framework. These are only provided as possible suggestions.

Revenue Sources Cost Considerations Social Issues

• Licenses • Regulatory body • Public opinion of legalizing

• Type and quantity of businesses that will sell • Auditing and quality control public consumption of shisha
shisha • Implementation vs on-going • Health & well-being of citizens
• Application payment process for licensing: costs • Job creation
one-time fee vs. annual fees
• Lifetime of typical business selling shisha
• Adoption rate over three years
• Sales Tax
• Consumer segments and spending habits
• Adoption rate of public use
• Sales tax rate
• Import Tariffs
• Quantity of domestic vs foreign sourced shisha
consumption
• Tariff percentage

How to Move Forward:

The candidate should include criteria to size the revenue opportunity over a three-year period and should want to naturally start exploring this aspect. If the candidate
wants to explore something else first, ask why? Then point him/her in the direction of sizing revenue.
Inform the candidate that the client is mainly interested in estimating revenue from issues licenses. Hand interviewee Exhibits 1 & 2.

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EXHIBIT 1
Shisha licensing structures

Country License Structure

Qatar 10,000 Saudi riyal one-time fee
Jordan 3,000 Saudi riyal one-time fee + 500 riyal monthly fee
United Arab Emirates (UAE) 6,000 Saudi riyal one-time fee + 3,000 Saudi riyal annual fee

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Question 1
• Which licensing structure should Saudi Arabia adopt? What is the estimated three-year revenue impact?
Supply only when asked: Because of unusual economic growth, 1,000 new restaurants will be added to the Riyadh region
each year for the next two years.
Supply only when asked: Related products have experienced an adoption rate of 5%, 10%, and 15% in years 1, 2, 3
respectively.

Exhibit or Question Guidance:

After looking at Exhibits 1 & 2, candidates should be able to identify and call out the following:
• To maximize and forecast revenue, the candidate must execute two analyses: (1) identify which licensure structure to pursue and (2) apply license structure to
restaurant industry to estimate four-year revenue impact
• Assume shisha licenses will only be sold to restaurants
• Jordan’s license structure maximizes license revenue

One-Time Fee Annual Fee

Year 1 Year 1 Year 2 Year 3 Total
Qatar 10,000 10,000
Jordan 3,000 6,000 6,000 6,000 21,000
UAE 6,000 3,000 3,000 3,000 15,000

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EXHIBIT 2
Riyadh (capital of Saudi Arabia), restaurant market segmentation

Restaurant Casual Sit- Tea & Coffee

Fast Casual Fine Dining
Type Down Shops

Number of
5,000 2,000 1,000 6,000
Businesses

U.S. market Chipotle, Cava, Panera, C&O, Ivy Inn

Starbucks
equivalents McDonalds Applebee’s Restaurant

*The capital city of Riyadh represents about 20% of the domestic restaurant market
*The average lifespan of a restaurant is three years

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Exhibit or Question Guidance Cont:

Once the Jordan license structure has been identified, the candidate should calculate year 3 revenue:
• Calculate the number of total and newly participating
businesses. This will enable you to calculate the one
time fee in year 3. Year 1 Year 2 Year 3
Riyadh Businesses 14,000 15,000 16,000
• Annual fees (500*12) generate 6k riyal in revenue per Adoption Rate 5% 10% 15%
participating business. Total Participating Restuarants 700 1,500 2,400
• Calculate total domestic revenue assuming Riyadh Newly Participating Restaurants 700 800 900
represents about 20% (i.e. multiply by 5).
In Millions Riyal
• Great candidates will put the 85.5 million riyal into One Time Fee (3k) 2.10 2.40 2.70
perspective Annual Fee (6k) 4.20 9.00 14.40
- Current revenue related to Tobacco related products Total License Revenue 6.30 11.40 17.10
is 500 million riyal
Riyadh Percentage of GDP 20%
- This initiative will increase revenue by 17.1% in Estimated Domestic Revenue Impact (millions riyal) 85.5
three years

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BRAINSTORMING
Are there any other considerations the Saudi government should keep in mind before legalizing the public consumption of shisha?

Brainstorming Guidance:
This is a “what else” section. Below are some basics but ideally, you’re looking for the interview to be as creative as possible. As with most
questions of this type, a bad answer will stop at one or two. A good answer will have a creative list. A great answer will have a structure that
makes the answer MECE. A great answer should also prioritize the findings indicating which ones he/she thinks are the most important.

Key Points to Consider:

• Health and well-being of citizens given increased consumption of tobacco products
• Other distribution channels to sell shisha other than restaurants
• Associated costs with launching and governing program
• Public opinion – restaurants may not want to sell shisha and patrons may not want to smoke in public
• Reputation on the global stage. Many countries are restricting use of tobacco products
• Revenues related to sales tax and tariffs
• Job creation related to budding industry
• Three-year economic forecast
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CONCLUSION
The minister of commerce is dialing in on Skype and expects a summary. Please share your findings.
Recommendation:
• Candidate should succinctly summarize findings, including the license structure that optimizes revenue and year 3
revenue opportunity.
• Great candidates will note that calculated figures are conservative as they do not include revenue from sales tax or import
tariffs.
Risks:
• License revenue depends heavily on adoption rate
• Healthcare costs related to increased tobacco use
Next Steps:
• Market analysis of restaurant’s willingness to sell shisha (i.e. adoption rate)
• Explore the financial and social costs related to the program

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INTERVIEWER FEEDBACK FORM Case Name _________________________ Interviewer ___________________________

Case Book ____________________ Case Type ____________ Difficulty ____________

Case Execution:
q Clarifying Questions + Framework
q Good Questions
Feedback:
1 2 3 4 5
q Structured
q MECE
q Creativity
q Exhibits + Quantitative Ability
q Accuracy Feedback:
q Speed 1 2 3 4 5
q Insights Presented
q Errors / Guidance Needed

q Brainstorm + Conclusion
q Creative & Structured 1 2 3 4 5 Feedback:
q Good Business Judgment
q Recommendation Strength

q Presence & Non-Verbal

q Confidence
q Poise / Posture Feedback:
1 2 3 4 5
q Clear & Concise
q Body Language
q Coachability

Total: _____ / 20
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EntertainmentCo
Entertainment | M&A

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B E H AV I O R A L
ENTERTAINMENT CO INTERVIEW
QUESTION:
Entertainment | M&A • Skills Tested: Revenue, EBITDA, Connecting exhibits
• Suggested Timing: When candidate has completed 15 – 20 cases
Prompt: 1. Can you
EntertainmentCo is the world’s largest live entertainment company, with two distinct describe a time
business divisions—a ticketing division and a venue management division. Due to an when you had to
anticipated crackdown from federal regulators, EntertainmentCo is planning a spin-off work with a
of its ticketing division. Your client is a PE firm that is interested in investing in the spin- difficult
off. Should they do it? stakeholder on a
project? What
Clarifying Information: Note: Provide this only if corresponding questions are asked.
1. What are the goals of the PE firm? / What do we know about the PE firm? was the
The firm targets EBITDA and revenue increases of 50% from the initial investment in year 1 to year 5, which is when situation, how
the firm would typically exit the investment. The firm specializes in the telecommunications, media and did you handle
entertainment industries. The firm is willing invest a total of $175M to improve the operations of the spin-off.
2. What is the ticketing business doing? it, and what was
The ticketing division manages ticket marketing, pricing, sales, and distribution through an online platform, as well the outcome?
as platforms for phone and physical box offices sales. They manage inventory, provide customer support, and
ensure ticket validity.
3. What is the venue management doing?
The venue management division focuses on promoting and producing live events, such as concerts, theater shows,
and sports events. As the world's largest live entertainment company, they are responsible for organizing and
promoting events for a wide range of artists, performers, and teams.
4. Why are the regulators cracking down on EntertainmentCo?
Increased scrutiny in the press and entertainment media has led to antitrust concerns. All events organized through
the venue management division must be sold through their proprietary ticketing platform, weakening competition.
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Framework Guidance:
Note: There are many possible alternatives to this framework. These are only provided as possible suggestions.
Company Financials Company Capabilities Market Analysis

• Revenues • Operational efficiencies • Changing consumer behavior and

• Ticket fees * number of tickets sold • Optimize inventory management preferences
• Partnership fees * number of • Improving data management • Demand for live events
partnerships • Automating customer support • Demand for personalized experiences
• Costs • New revenue generation • Technological advancements
• Technology and infrastructure costs • Ticketing for new types of events • Digital and mobile ticketing
• Labor costs • New partnerships • AR experiences
• Marketing and advertising costs • Synergies with other portfolio companies • Competition
• Fees and royalties to event • New players
management • Existing players diversifying their
• Legal and regulatory compliance offerings
costs

How to Move Forward:

Given the PE firm’s goals for five-year revenue and EBITDA growth rates, the candidate should ask for data about the company’s financials.

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Question 1
What is the revenue and EBTIDA that the ticketing division of EntertainmentCo generated in 2024?

Exhibit or Question Guidance:

Show candidate Exhibit 1. Candidate should identify that the Ticketing category represents the revenue generated by the ticketing division of EntertainmentCo.
Revenue calculation – do not let candidate round at first:
• $2,268M * 22% = $498.96
- 10% of $2,268M = $226.8M
- $226.8M * 2 = $453.6M
- 1% of $2,268M = $22.68M
- $22.68M * 2 = $45.36M
- $453.6M + $45.36 = $498.96M
Once the calculation is done, prompt the candidate to round to $500M in further calculations in the case.
EBITDA calculation – precise calculation:
• $360M * 66% = $240M
- 2/3 of $360M = $240M
Go to Question 2 and ask candidate to calculate five-year growth projections for revenue and EBITDA.

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EXHIBIT 1
EntertainmentCo Pre-spin-off revenue and EBITDA mix (2024)
2,268 360 $ in millions
6%

Concert 68%
66%

1%
Ticketing 22%
27%
Artist management
5%
Partnerships 5%
Revenue EBITDA
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Question 2
Given the PE firm’s goal of 50% revenue growth and 50% EBITDA growth, what would revenue and EBITDA need to be in five years in order
for this company to be an attractive investment for the PE firm?

Exhibit or Question Guidance:

Stay on Exhibit 1. Candidate should use revenue and EBITDA calculations from Question 1 to project five-year growth targets.
Revenue five-year growth calculation – okay to round:
• Round $494.56M to $500M
• $500M * 1.5= $750M
EBITDA calculation – okay to round:
• Use $240M
• $240M * 1.5 = $360M
Candidate should ask for information about revenue forecasts of the ticketing division as a standalone company to find out if they meet the five-year growth targets
calculated for revenue and EBITDA.

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Question 3
Based on these revenue and EBITDA projections for 2029, should the PE firm invest in the ticketing division spin-off of EntertainmentCo?

Exhibit or Question Guidance:

Show candidate Exhibit 2. Candidate should add up each of the sub-components of Ticketing revenue and EBTIDA for 2029 to assess whether it meets the five-year
targets calculated in Question 2. The details column is only shown to the interviewer and can be provided orally if requested by the candidate.
Revenue categories Details (to be provided by the interviewer on demand) 2024 revenue 2029 revenue 2024 EBITDA 2029 EBITDA
Service fee on each ticket sold ; covers the cost of providing the ticketing service,
including the technology infrastructure, customer support, and other operational $270 $378 $131 $183
Service fees expenses
$25 $35 $12 $17
Convenience fees Fee for tickets purchased over the phone.
$50 $70 $24 $34
Advertising and sponsorships The website generates revenue by selling ad space and partnering with sponsors.
When customers opt for physical ticket delivery, EntertainmentCo may charge a
$50 $70 $24 $34
Delivery fees delivery fee to cover the costs of shipping and handling.
$105 $140 $48 $67
Premium services EntertainmentCo offers VIP packages and meet-and-greets at a premium.
$500 $693 $239 $335
TOTAL

Candidate should identify that the 2029 revenue and EBITDA projections fall below the 50% growth rate targets set by the PE firm. On its own, the company only
achieves revenue growth of $193M and EBITDA growth of $96M. As a result, they should not invest in this company. However, these projections do not include any
operational improvements. Candidate should suggest some ways to drive operational improvements. Use brainstorming question on the next slide to prompt
candidate, if needed.
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EXHIBIT 2
Projected five-year revenue growth for the ticketing division (USD M)

Revenue Categories 2024 Revenue 2029 Revenue* 2024 EBITDA 2029 EBITDA*

Service fees $270 $378 $131 $183

Convenience fees $25 $35 $12 $17

Advertising and sponsorships $50 $70 $24 $34

Delivery fees $50 $70 $24 $34

Premium services $105 $140 $48 $67

*Projected figures based on status quo without any operational improvements implemented
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BRAINSTORMING
Question 4: What are some ideas for how the PE firm could improve revenue and EBITDA to meet its five-year growth goals?

Brainstorming Guidance:
Note: This is just one possible set of categories and answers. Many more are possible, and interviewers should assess both the volume and relevance of answers.

Increase revenues: Cut costs:

• Add ticketing for new types of events (e.g., professional • Automate customer service to cut labor costs
conferences, augmented reality events, etc.)
• Improve inventory management to reduce excess inventory
• Create personalized event experiences (e.g., using costs
customer data to promote customized recommendations to
customers) • Renegotiate fees and royalties paid to venues, event
organizers, and artists
• Increase offerings of complementary products (e.g., parking
passes, food and drink packages, etc.) • Decrease office space

• Expand into new lines of business (e.g., branded credit

card, data provider, etc.)

Best candidates display:

An understanding of how the business model changes post-spin-off. Candidates should understand from Exhibit 1 that there are not significant
opportunities to cut costs and that revenue growth is key to driving EBITDA growth.
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Question 5
Our team has done some analysis on four different initiatives that they believe would help EntertainmentCo’s ticketing business improve its
operational efficiencies. Which combination of projects do you think the PE firm should pursue if they were to invest in EntertainmentCo’s
ticketing business spin-off? They are willing to invest up to $175M and plan to exit by year 5.

Exhibit or Question Guidance:

Show candidate Exhibit 3. Candidate should clear the slide, noting key advantages and disadvantages of each project, and then should determine the best
combination of projects to meet the PE firm’s revenue and EBITDA five-year growth targets without going over the $175M investment project budget.
Year 5 Revenue Target = $750M
Year 5 EBITDA Target = $360M
• Combination 1: Expanded Bundles, Data Analysis for Marketing, and AI-Driven Dynamic pricing
- Total Investment Cost = $150M
- Year 5 Revenue = $693M + $58M = $751M
- Year 5 EBITDA = $335M + $50M = $385M
• Combination 2: Expanded Bundles, Data Analysis for Marketing, and New Event Types
- Total Investment Cost = $175M
- Year 5 Revenue = $693M + $70M = $763M
- Year 5 EBITDA = $335M + $55M = $390M
Best candidates will acknowledge that the potential for success for “New Event Types” is low and factor it in their decision, favoring Combination 1.

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EXHIBIT 3 The PE firm is willing to invest in one or several projects,

up to a total of $175M
Operational efficiency projects opportunities

Expanded Bundles Data Analysis for Marketing

Selling additional products along with the event tickets, Enhanced data collection to enable targeted marketing and
including, but not limited to, travel, parking, insurance, and customized recommendations on the platform and on
merchandise. social media.
Investment: $25M Investment: $50M
Increase in revenue (Year 5): + $20M Increase in revenue (Year 5): + $20M
Increase in EBITDA (Year 5): + $15M Increase in EBITDA (Year 5): + $20M
Potential for success: Potential for success:

New Event Types AI-Driven Dynamic Pricing

Expanded ticketing offerings of new event types, such as Implement machine-learning to optimize and individualize
conferences, virtual attendance events, and VR events. pricing, taking advantage of trends (similar to airline pricing
strategy).
Investment: $100M Investment: $75M
Increase in revenue (Year 5): + $30M Increase in revenue (Year 5): + $18M
Increase in EBITDA (Year 5): + $20M Increase in EBITDA (Year 5): + $15M
Potential for success: Potential for success:

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CONCLUSION
Question 6: The investing partner from the PE firm is about to walk into the room. What is your recommendation?
To conclude, the interviewee should provide the following:
Recommendation:
• Invest in EntertainmentCo’s ticketing division spin-off and implement one of the operational efficiency project
combinations previously discussed to achieve 50% revenue and EBITDA growth upon exit in Year 5.
Risks:
• Uncertainties in the business model stemming from the decoupling with the original company (i.e., loss of business with
specific artists or venues)
• Competitors’ response following spin-off
• Validity of the assumptions used to build the year 5 revenue projections and investment projection revenue projections
Next Steps:
• Conduct due diligence and finalize a bid for EntertainmentCo’s ticketing division spin-off

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 INTERVIEWER FEEDBACK FORM Case Name _______________________ Interviewer ___________________________

Case Book ____________________ Case Type ____________ Difficulty ____________

Case Execution:
q Clarifying Questions + Framework
q Good Questions
Feedback:
1 2 3 4 5
q Structured
q MECE
q Creativity
q Exhibits + Analysis
q Accuracy Feedback:
q Speed 1 2 3 4 5
q Insights Presented
q Errors / Guidance Needed

q Brainstorm + Conclusion
q Creative & Structured 1 2 3 4 5 Feedback:
q Good Business Judgment
q Recommendation Strength

q Universal Skills
q Coachability & Collaboration
q Structured communication Feedback:
1 2 3 4 5
q “So what” & Business acumen
q Body Language, Confidence, Poise
q Adaptability

Total: _____ / 20
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Robots Inc.
Technology | Growth

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ROBOTS INC.
Technology | Growth •
•
Skills Tested: NPV, market analysis, penetration rates, and exhibit-crunching skills
Suggested Timing: When candidate has completed 15– 20 cases
B E H AV I O R A L
Prompt: INTERVIEW
Robots Inc. is a rapidly growing startup in the artificial intelligence sector specializing in QUESTION:
generative AI models for various industries. Recently, with the popularity of AI, the
company has attracted a large amount of funding and plans to expand their services.
However, since it’s a very new market, there are so many opportunities to be explored. 1. Describe a
For this reason, the CEO approached you with a question: “Which new market and time when you
application should we invest our money in?” had to adapt
your approach
Clarifying Information: Note: Provide this only if corresponding questions are asked. or strategy due
to unexpected
1. What is Robot Inc.’s goal? The company’s primary goal is leveraging their expertise in generative AI models so they can circumstances
expand their services, enter high-growth markets, increase revenue, and secure a strong market position.
during a project.
2. What is the company’s business model? Robots Inc. develops and licenses generative AI models for different industries,
providing clients with customized AI solutions to address challenges in their specific sectors. As an example, the company
once worked with a fashion retailer to create innovating clothing designs using AI models that analyzed customers data,
leading to very positive results.

3. Where does the company operate? North America, but they are considering starting their international expansion.

4. What is generative AI? A type of AI that creates new content, data or solutions by learning from existing patterns and
examples, using advanced machine learning techniques as deep learning and neural networks. By doing so, generative AI can
result in outputs as text generation, image synthesis, and drug discovery, among many other possibilities.
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Framework Guidance:
Note: There are many possible alternatives to this framework. These are only provided as possible suggestions.

Market Service/product offering Capabilities

• Market segments in AI industry • Customer preferences • Capital Availability

• Identifying which market segments there • How should the product look like? • Company has money to embark in this endeavor?
are for the company to enter • What solution should be offered? • Funding requirements (company is a startup)
• Market size and growth according to segments • Financials • Supply chain capacity
• Measuring the opportunities in different • Revenues • Who are our suppliers?
segments • Costs • Do we have high bargaining power?
• Competition • ROI • Do we have the operational capabilities needed to
• Fragmented?/Concentrated? • Pricing and promotion strategy enter a new industry?
• High barriers to entry? • Creating a need or it already • Regulatory scenario
exists? • How is regulation looking like currently and in the
• Freemium? Another pricing model? future? Will lobbying be needed?

How to Move Forward:

A great framework will consider the specificity of the case and the candidate will relate the buckets to AI, also considering potential regulatory risks.

In this case, to move forward, the candidate should want to analyze market entry opportunities. As such, they should choose to go with analyzing the current market
for different opportunities regarding AI, what will unlock Exhibit 1.
If they want data about the company’s financials or potential products, make it clear that “The company wants us to conduct a more general analysis first regarding
their potential opportunities. Considering that, where would you like to start?”.

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EXHIBIT 1
Market Size (2023-2026)

15
14
13
12
11
Healthcare
10
Manufacturing
9
Finance
8
Retail
7
6 Other
5
4
3
2
1
0
2023 2024 2025 2026
*All amounts (y-axis) in billions of dollars.
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Question 1
• Which insights can you derive from this Exhibit?

Exhibit or Question Guidance:

• The market is growing at approximately 20%-
30% per year, which is significant;

+27% 14 • The Healthcare and the Finance segments

15
are the most promising;
+34% 11 5 • From this exhibit, it looks that the Healthcare
10 +21% Healthcare
9 4 Manufacturing segment, specifically, is the most promising;
7 3
3 2
Finance
• To move forward, the candidate should ask
2 Retail
5 2 4 for financial data about potential
2 3 Other

2 2 applications/opportunities in the healthcare

1 1 2 market that the company can pursue. If they
1 1
0 1 1 1 want to move in another direction, state that
2023 2024 2025 2026 “The company would like to better
understand the specific opportunities in the
*All amounts in billions of dollars.
market we advise them to invest. What would
you want to know having that in mind?”
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EXHIBIT 2
Market Size - Potential Healthcare Applications (2023)
2,000
2,000

1,500

1,000

500

0
Medical Disease Genomic Drug Discovery Personalized Treatment Total
Imaging Prediction Analysis Medicine Optimization Healthcare
Market
*All amounts in millions of USD.
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Question 2
• Our team has just gathered this data about potential applications in the Healthcare market that our client could pursue.
Which one would you advise them to invest in? Assume that the YoY growth will be the same for all of them.

Exhibit or Question Guidance:

• From this Exhibit, the candidate should advise

2,000 the company to pursue Medical Imaging, since
2,000
200
it’s currently worth $500M;
250
1,500 • Great candidates will associate this data with
300
Exhibit 1, ballparking that, considering the 2.5x
350
1,000 2,000 growth in the healthcare industry, investing in
400 Medical Imaging can get the company into a
500 market that will be worth around $1.25B by
500 2026;
0 • To move forward, the candidate should ask
Medical Disease Genomic Drug PersonalizedTreatment Total
Imaging Prediction Analysis Discovery MedicineOptimization Market about potential costs involved in this endeavor,
*All amounts in millions of USD. what will take them to the math question.

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Question 3 (math, to be read after insights from Exhibit 2)

• The Medical Imaging market is currently worth $500 million and expected to linearly grow to $1.25 billion by 2026. If Robots Inc. invest in it, we know the initial
investment to develop the necessary AI models and infrastructure will be of $200 million, to be incurred in 2023, with annual operating costs of $8 million,
starting in 2024. Also starting in 2024, the company foresees a 5% penetration rate, which is expected to grow 40% yearly until 2026. For Robots Inc. to make
this investment, they have set the goal of payback period of three years (by 2026). Will the company achieve such a goal?

Question Guidance:

The candidate will need to ask for the following information to solve the question (wait for them to ask for it): a) Discount rate: 10%; b) In which year are we? We’re currently in
2023 (this will influence the NPV calculation); c) YoY growth: linear, with growth applying from 2024 to 2026 (already stated in the question). Great candidates will set themselves
apart here by using a structured approach, which will lead them to results faster.

The candidate needs to calculate i. market size, ii. penetration rates, iii. revenues, and iv. Payback period

i. Market size: assuming linear growth, the market will grow [($1.25bi - $500mi)/3] per year, which equals $250mi/year -> market size - 2024: $750mi, 2025: $1bi, 2026: 1.25bi;

ii. Penetration rates: in 2024, rate = 5%. Accounting the 40% yearly growth, 2025 = 5% * 1.40 = 7%, and 2026 = 7% * 1.40 = 9.8% ≈ 10%

iii. Revenues: in 2024, 5% * $750mi = $37.5mi; in 2025, 7% * $1bi = $70mi; in 2026, 10% * $1.25bi = $125mi

iv. Payback period

2023 = Initial investment: -$200 M

2024 = Operating costs: -$8 M; Revenue (2024): $37.5 M; Net cash flow (2024): $29.5 M

2025 = Operating costs: -$8 M; Revenue (2025): $70 M; Net cash flow (2025): $62 M

2026 = Operating costs: -$8 M; Revenue (2026): $125 M; Net cash flow (2026): $117 M

Total Profit in three years = $29.5 M + $62 M + $117 M = $208.5 M > $200 M, reason why the company will achieve its goal. Once the candidate gets to that, move to the
brainstorming question.
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BRAINSTORMING
The AI industry is going through exponential growth, as we have seen. Considering that, what would be other potential applications
the company could explore outside of the healthcare market?

Brainstorming Guidance:
Note: This is just one possible set of categories and answers. Many more are possible, and interviewers should assess both the volume and relevance of answers.

Entertainment Industry: Finance: Education:

• Building AI-powered characters for parks (e.g. for • AI-powered market analysis • AI-generated adaptive study plans
meet/greet)
• AI-powered bots to make investment decisions • AI-teaching assistants, tailored to specific
• Improving the current state of AI in the gaming according to investor’s risk-profile students’ needs
industry, as to improve in-game experience of gamers
• AI-based fraud detection and prevention • AI-assisted plagiarism detection
• Collecting data to generate new streaming content systems

Best candidates display:

Strong structure, so ideas can be presented in a concise and effective way, and high creativity, considering AI displays a huge breadth of
opportunities.

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CONCLUSION
You are on a call with the CEO to provide an update on the topic. What do you say?
Recommendation:
• Robots Inc. should enter the Healthcare market, currently worth $2B and poised to grow around 2.5x by 2026, specifically in the
Medical Imaging application, since this represents the highest share in such market.
Risks:
• The candidate can mention various factors:
• Regulatory and compliance risks
• Competition and IP protection
• Adoption challenges
Next Steps:
• Among several factors, the candidate can mention:
• Conducting research about the current and future regulatory scenario, to conclude whether the project is feasible and whether
lobbying will be needed
• Develop IP protection strategy to safeguard the company's AI models
• Engage with industry experts/potential customers to better understand their needs and address potential adoption challenges
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 INTERVIEWER FEEDBACK FORM Case Name _______________________ Interviewer ___________________________

Case Book ____________________ Case Type ____________ Difficulty ____________

Case Execution:
q Clarifying Questions + Framework
q Good Questions
Feedback:
1 2 3 4 5
q Structured
q MECE
q Creativity
q Exhibits + Analysis
q Accuracy Feedback:
q Speed 1 2 3 4 5
q Insights Presented
q Errors / Guidance Needed

q Brainstorm + Conclusion
q Creative & Structured 1 2 3 4 5 Feedback:
q Good Business Judgment
q Recommendation Strength

q Universal Skills
q Coachability & Collaboration
q Structured communication Feedback:
1 2 3 4 5
q “So what” & Business acumen
q Body Language, Confidence, Poise
q Adaptability

Total: _____ / 20
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 Opus Two
Consumer | Market Sizing/Optimization

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OPUS TWO
Consumer | Market Sizing/Optimization •
•
Tests: Market Sizing, Optimization, Creativity
McKinsey-Style Case: Interviewer-led, to be
used towards the end of case prep (20+ cases)

Prompt: Our client, Opus Two, is one of the most prestigious wineries in Napa Valley.
The winery is renowned for crafting a single, exceptional wine – a Meritage Red Blend.
Despite its reputation, Opus Two faces significant challenges due to climate change. B E H AV I O R A L
Rising temperatures, extended droughts, and recent forest fires have made their location INTERVIEW
unsuitable for grape growing. As such, Opus Two is looking to relocate outside of Napa QUESTION:
Valley and is seeking the firm’s help in choosing a new region and wine to produce. What
factors should be considered when selecting a new location for Opus Two?
1 . Te l l m e a b o u t
a decision you
Clarifying Information: Note: Provide this only if corresponding questions are asked.
made at work
1. What is a Meritage Red Blend? A Meritage Red Blend combines several grapes (vs. just one varietal like Pinot Noir) that showcased
into a single wine. A portmanteau of "merit" and "heritage," the name conveys high quality and tradition.
your integrity
2. What is the client’s goal? Opus Two is a passion project jointly owned by Darden's Wine and Cuisine Club (WACC)
and a sommelier from Philadelphia. Their primary goal is not to achieve a specific financial return, but rather to maintain
their current level of production, quality of wine, and brand reputation.
3. How does Opus Two sell its wine? They sell a limited supply of 10,000 cases (120,000 bottles) of wine per year to
high-end restaurants all around the world as well as DTC online and in-person at the winery. A bottle sells for $500.
4. When does Opus Two want to move? As soon as a new region and wine is identified.
5. Has Opus Two identified any potential locations? Yes, we will see explore these locations later in our analysis.

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Question 1: “What factors should be considered when selecting a new location for Opus Two?”

Framework Guidance:
Note: There are many possible alternatives to this framework. These are only provided as possible suggestions.

Production Size & Quality Region’s Perception Capabilities / Feasibility

These factors affect the type and quality These factors affect Opus Two’s ability to maintain These factors affect the viability of Opus Two
of wine Opus Two can produce. their brand’s prestige and attract consumers. making the move to a new location.

• Location (vineyard size, grape varietals grown) • Region’s Reputation • Non-Financial (customer & employee buy-in,
• Climate (temperature, rainfall, seasonality) • Region’s Level of Recognition regional expertise/know-how)

• Geography (soil type, altitude, land features) • Preference Among Consumers • Financial (revenues, cost of land, labor, and
• Resources (water, energy) • Accessibility (proximity to major markets, materials, etc.)

• Threats (climate change, inclement weather, transportation, and local tourism) • Local Regulations (distribution & consumption
laws, land use requirements, permits/licenses)
natural disasters, wild animals, fungus)

How to Move Forward:

This is a McKinsey-style case, and although the interviewer will lead the candidate to the next question, the best candidates will identify
Production Size & Quality as a logical starting point. Opus Two's priority is to maintain their current level of production, wine quality, and brand
reputation, making this category a top consideration as they contemplate a new location.

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Question 2: Our client is committed to maintaining their current annual production of 10,000 cases/year (a case is 12
bottles of wine). As such, size is a top consideration when selecting a new vineyard site. How would you estimate the
number of acres Opus Two must acquire to produce 120,000 bottles of wine per year?

Market Sizing/Estimation Question 2 Guidance:

Candidate’s Framework Numbers You Provide • Answer: In a Market Sizing, the candidate develops the
framework (left), you provide the numbers (right), and they
# of Bottles of Wine 120,000 bottles do the math to arrive at a minimum of 30 acres to produce
120,000 bottles of wine.
# of Grapes per Bottle 10 grape clusters/bottle
• Hint: Tell the candidate to figure out what information they need
= Total Grapes Required 1,200,000 grape clusters to solve for # of Acres and construct a framework/equation. If
they need further guidance, tell them to find the # of grapes
required to make one bottle of wine and the # of grapes that
# Grapes per Vine (annual) 40 grape clusters/vine grow on a vine. Provide them the gray-highlighted pieces of
# Vines per Acre 1000 vines/acre information
• Alternatively: The candidate may also calculate the number of
= Grapes per Acre 40,000 grape clusters/acre bottles of wine that can be produced per acre (4000 bottles/acre)
30 Acres (1,200,000 clusters ÷ and can arrive at the same answer.
# of Acres Required 40,000 clusters/acre) • Transition: “Keep these numbers and this structure on hand as
it will be used to compare prospective sites in the next question.”

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EXHIBIT 1
Wine Regions

The Finger Lakes, New York Albemarle County, Virginia Walla Walla Valley, Washington

36 Acres Vine

Prospective Site has 36 Acres of land Prospective Site can produce up to Prospective Site has 40 Acres of land
right along the Lake Seneca. 1,300,000 clusters/year. with beautiful vistas of the Valley.
Cooler climate results in Inclement weather will destroy Washington State Law requires
a lower yield of 32 clusters of grapes/vine. 10% of the grape crop each year. no more than 750 vines per acre.

*The number of grape clusters needed to make one bottle of wine remains the same at 10 clusters/bottle.

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Question 3: The client has identified three desirable vineyard sites in the United States. Using the data from the Market
Sizing as a key, which site will allow Opus Two to maintain production of 120,000 bottles of wine a year?

Exhibit 1 Guidance:
• Answer: Opus Two should move to the Walla Walla Valley, Washington.
• Hint #1: Use the framework and numbers (see Hint #2) from the previous Market Sizing as a key for calculations.
• Hint #2: The number of grape clusters needed to make one bottle of wine remains the same at 10 clusters/bottle, so the new site must
have the capacity to yield 1,200,000 grape clusters annually. Use this parameter to assess and choose the appropriate site.
• The Finger Lakes: 32 clusters/vine * 1000 vines/acre = 32,000 clusters/acre * 36 acres = 1,152,000 clusters < 1.2M clusters required.
- Watch Out!: a 20% decrease in clusters/vine does NOT balance out the 20% increase in acreage. This is a common % mistake.
• Albemarle County: 1.3M clusters * 10% = 130,000 clusters lost. 1.3M - 130,000 = 1,170,000 clusters < 1.2M clusters required.
- Shortcut: Recognize that the prospective site produces 100,000 extra grape clusters (1.3M-1.2M). If 10% of 1.3M is lost each year,
that means 130,000 clusters are not able to be used for wine, which is more than 100,000 extra margin of the Prospective Site.
• Walla Walla Valley: 750 vines/acre * 40 acres = 30,000 vines. 30,000 vines * 40 clusters/vine = 1.2M clusters. Opus Two moves here.

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BRAINSTORMING
“We’ve talked a lot about where Opus Two should open their new winery. What are some potential uses for Opus
Two's original location in Napa Valley after they move?”

Brainstorming Guidance:
Note: This is just one possible set of categories and answers. Many more are possible, and interviewers should assess both the volume and relevance of answers.

Agricultural Uses New Uses Sell/Donate

• Grape growing for general consumption • Hotel / Restaurant • Sell
(e.g., fruit juice) outside of wine • Event Space (weddings, concerts) • Donate (philanthropic / PR opportunity)
• Fruits / Vegetables • Conferences / Corporate Retreats
• Grains / Olives / etc. • Tourism (Napa Valley Wine Tours, farmer’s
market, hot air balloons)

Best Candidates Display:

A strong candidate demonstrates an understanding of the potential for repurposing a vineyard in a world-famous wine region for both agricultural and non-agriculture
use. They would think creatively within this framework, considering the market demand for other crops/produce or activities/events.
Additionally, the candidate should remember that Opus Two's vineyard in Napa Valley is no longer suitable for growing grapes to produce wine. They would avoid
suggesting ideas that are misaligned with case facts (e.g., planting different grape varietals or selling the land to another winery).

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CONCLUSION
“The President of the Darden Wine and Cuisine Club (WACC) is calling and would like to hear an update on the project.
What is your recommendation at this point in the analysis?”

Recommendation:
• Opus Two moves to the Walla Walla Valley, Washington
• The Walla Walla Valley site is large enough to maintain production of 120,000 bottles of wine/year.
Risks:
• Moving an entire business to another state is inherently risky. Any number of concerns around consumer pushback, Walla
Walla’s lower reputation compared to Napa Valley, and a decline in quality are valid.

Next Steps:
• Reasonable mitigation strategies include surveying current customers about the move or conducting a competitive
analysis comparing wineries in Walla Walla with those in Napa to forecast impacts on Opus Two’s brand image and wine
quality. Mentioning new uses for their Napa vineyard is also a logical next step and a great way to end the case.

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 INTERVIEWER FEEDBACK FORM Case Name _______________________ Interviewer ___________________________

Case Book ____________________ Case Type ____________ Difficulty ____________

Case Execution:
q Clarifying Questions + Framework
q Good Questions
Feedback:
1 2 3 4 5
q Structured
q MECE
q Creativity
q Exhibits + Analysis
q Accuracy Feedback:
q Speed 1 2 3 4 5
q Insights Presented
q Errors / Guidance Needed

q Brainstorm + Conclusion
q Creative & Structured 1 2 3 4 5 Feedback:
q Good Business Judgment
q Recommendation Strength

q Universal Skills
q Coachability & Collaboration
q Structured communication Feedback:
1 2 3 4 5
q “So what” & Business acumen
q Body Language, Confidence, Poise
q Adaptability

Total: _____ / 20
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 NewsCo.
Media | Diagnosis/Profitability

FIRST PRIZE - DARDEN CASE-A-THON 2023

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NEWSCO.
Media | Diagnosis/Profitability • Skills Tested: Creative frameworks, non-revenue goals B E H AV I O R A L
Prompt:
• Suggested Timing: Towards the end of case prep (20+ cases) INTERVIEW
QUESTION:
NewsCo. is a TV network that offers live news and pre-recorded entertainment programming. They're
concerned about a recent survey showing a decline in viewers' trust. This is particularly worrisome
because NewsCo. prides itself on high-quality journalism and uses the tagline "News You Can Trust." 1 . Te l l m e a b o u t
an important
Our team was hired to identify the root causes and provide recommendations. skill you
developed. What
Clarifying Information: Note: Provide this only if corresponding questions are asked. was it and how
1. What can you tell me about the survey? A US-based consumer intelligence agency compared NewsCo. to other major news did you go about
networks across several dimensions. While NewsCo. scored well in most dimensions, only 46% of viewers considered it developing it?
trustworthy. It ranked fourth most trustworthy out of six major news networks. In 2018, over 75% of consumers rated NewsCo. as
trustworthy, ranking first. Survey respondents were asked to assess “NewsCo. is a reliable and trustworthy news source.”

2. Does NewsCo. publish other forms of news, such as print or digital? Yes, NewsCo. operates a website, but management is
currently focused only on its television programming.

3. What is the client's objective? NewsCo. wants to understand the root cause of the low trustworthiness score and recommended
actions to improve it.

4. How does NewsCo. generate revenue? NewsCo. earns most of its revenue from advertising on its TV programming, but it also
earns revenue through cable subscriptions, website advertising, and selling prepackaged content to third parties such as airports
and hotels.
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BRAINSTORM 1
“Before we begin, I want to take a step back and examine this issue from a wider lens. In what ways does viewer
trust in news networks affect society at large?”
Brainstorming Guidance:
Note: This is just one possible set of categories and answers. Many more are possible, and interviewers should assess both the volume and relevance of answers.
Political Implications Social Implications

• Media sources influence voter decision making and the perceived • Misinformation and bias erode public trust and fuel polarization and
fairness of elections. distrust in society.
• News networks can hold public figures accountable, sustaining • Accurate news benefits public safety and health.
trust in political institutions. • News raises awareness about social issues, shaping public attitudes
• News coverage affects public discourse and shapes opinions on on civil rights and diversity.
important policy issues. • Trustworthy news educates viewers about important business events,
affecting financial decision-making.
Best candidates display:
• Structured brainstorming with multiple mutually-exclusive categories to examine the impact of trusted news sources on society from
multiple angles
• Avoidance of discussing financial implications of trust on a business
To move forward…
• “Thank you. Let’s now step back into the problem at hand. Please take a couple minutes and then walk me through how we
should approach this problem.”
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Framework Guidance: Note: More information is provided here than expected. Candidates not expected to include every subcategory.
External Factors
Content-Related Factors Organizational Factors
Societal
Quality Staffing
• Has the uptick in misinformation from other news
• Do we get the facts right when reporting stories? • Do viewers perceive our on-air talent as
mediums negatively affected our viewers’ perceptions
• Are our sources seen as credible? lacking diversity? What about the executive
about NewsCo.?
• Is our news coverage timely and relevant to team?
• Have viewers changed what they consider to be
viewers? • Do viewers perceive our on-air talent as
“trustworthy news” (i.e., polarized news = trustworthy)?
authoritative?
Tone Competitive Landscape
• Do audiences perceive our reporting as biased? Organizational Culture
• Have competitors become faster or more accurate at
• Do they perceive our reporting as • Have there been any organizational scandals
breaking important news stories?
sensationalistic? that have eroded trust among our viewership?
• Has the rise of social media and online news sources
given viewers a wider range of options for consuming
Types of Stories Management Decisions
news?
• What proportion of fact-based news • Has NewsCo. made any recent acquisitions or
programming do we air compared to opinion- partnerships with organizations viewers deem
Technological Advancements
based or entertainment shows? as untrustworthy?
• Has new technology, such as AI algorithms and deepfake
• Do we cover a wide variety of issues from • Has management interference compromised
technology made it harder for viewers to discern what is
different perspectives? editorial oversight of NewsCo.’s news division?
real?

How to Move Forward:

Candidates must not suggest a “Financial” category but instead focus on internal and external factors affecting trust. Candidates can acknowledge that lack of trust
can have financial implications but that is not the primary focus. If a candidate lists a “Financial” category, ask how examining financials will aid in understanding the
cause of declining trust.
Candidates should note that NewsCo.’s trust rating has decreased and inquire about changes in its programming or operations. Refer to Exhibit 1 and
prompt with questions as needed to progress.
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 12 | CASE: NEWSCO.

EXHIBIT 1 Airtime Allocation and Annual Viewership

1,100

49% 50% 46% 1,000

57% 57% 54%
Show Type 60% 60% 59%
(% represents portion of
total airtime*)
900
News (Newsdesk)
News (Business) 10%
10% 11%
Entertainment (Documentary) 11% 3% 800
Entertainment (Travel) 11% 12% 5% 4%
11% 14%
News (Opinion)
14% 15% 6%
8% 13% 13%
Entertainment (Food) 9% 9% 700
10%
9% 10% 7% 5% 6%
23%
*Total airtime unchanged since 2014 7% 5% 14% 20% 18%
12% 10% 10%
6% 5% 600
4% 5% 5% 6% 6% 5% 3% 4% 5%
2014 2015 2016 2017 2018 2019 2020 2021 2022

Avg. Daily Viewership (in 000s)

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Question 1
Our client provided us with data about their programming for the last nine years. What insights are you seeing?

Exhibit or Question Guidance: Candidates are not expected to calculate anything here. Rather, they should visually examine the exhibit and glean important insights.
Expected Insights:

• News (Newsdesk) and Entertainment (Documentary) coverage has declined the most since 2014, with News (Opinion) and Entertainment (Travel) coverage
increasing the most during the same period. Bonus points for contextualizing the % change (e.g., “Opinion shows are being aired roughly four times more
frequently in 2022 than in 2014”, or “Newsdesk shows are aired about 25% less in 2022 than in 2014”).

• Viewership has increased steadily since 2014, by over 200k viewers/day. Bonus points for estimating the % change as a 25%-30% increase.
• Candidates should offer a hypothesis explaining why this matters. Good hypothesis: Opinion shows may be less trustworthy than Newsdesk and
Documentary shows due to lower journalistic standards. Therefore, increasing preference towards Opinion may result in more biased and less trustworthy news.
Great Insights:
• Candidate notes last survey took place in 2018 and observes sharp increases in Opinion and Travel, and large decreases in Newsdesk and Documentary.

Outstanding Insights:
• Candidate identifies a positive correlation between Opinion airtime and viewership (more Opinion = more viewers and vice versa). Candidate integrates this
observation into their hypothesis and infers that Opinion shows are driving TV viewership.

To move on, candidate should hypothesize that increased Opinion airtime may be boosting nightly viewership at the expense of
trustworthiness. However, they need data to validate this and should ask for data about how each show type affects trustworthiness.
If needed, ask candidate to provide hypothesis and make connections explicit.

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EXHIBIT 2
Viewer Perception of
Trustworthiness 2022 Market Intelligence Report (NewsCo.)
10 Daily
9 22.1
Viewers
100
Entertainment (Documentary) (in 000s)
8 509.0 News (Newsdesk)

7
110.7
6
News (Business) 45.3
5 Entertainment (Food)
166.1 Entertainment (Travel)
4

2 254.6

1 News (Opinion)
Daily Ad Revenue
0 Per Viewer
1.00 2.00 3.00 4.00 5.00 6.00 7.00 (in $USD)
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Question 2
“This analysis that explores the relationship between viewer trust and revenue. What is the value of each show type to
NewsCo.?”

Exhibit 2 Guidance:
• Candidate should identify that exhibit maps each show category across three dimensions: viewership, trust, and revenue.
• News (Opinion) is the second most-watched show type but has the worst trust rating. Candidate should pull in previous information that
News (Opinion) airtime has more than doubled since the last survey and identify this shift as the primary driver in declining trust.
• Candidate should calculate daily revenue for each show type (prompt candidate if needed).
Solution:
Candidates not
Daily Revenue # Daily # Daily Viewers Total required to calculate
Show Type % of Total
Per Viewer Viewers (in 000s) (Rounded) Daily Revenue the % Total (orange
column) but should
News (Newsdesk) $4.50 509.0 510,000 $2,295,000 46% understand relative
News (Business) $3.00 110.7 110,000 $330,000 7% order of magnitude
between show types
Entertainment (Documentary) $2.50 22.1 20,000 $50,000 1%
Entertainment (Travel) $3.50 166.1 170,000 $595,000 12%
News (Opinion) $6.00 254.6 250,000 $1,500,000 30% More guidance
Entertainment (Food) $5.00 45.3 45,000 $225,000 5% on next page…

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Question 2 (Cont.)
“One of our associates just sent me this analysis that explores the relationship between viewer trust and revenue. What is
the value of each show type to NewsCo.?”

Exhibit 2 Guidance (cont.):

Excellent responses will identify some the following insights:
• Opinion news is more profitable per viewer compared to Newsdesk but has the lowest trust rating.
• Food shows are more trustworthy and more lucrative than Travel shows (by $1.50, the same difference between Opinion and Newsdesk).
• NewsCo. may have an opportunity to streamline its news programming by replacing Travel shows with Food.
• An excellent response will incorporate new insights into hypotheses, such as recognizing NewsCo.'s financial incentive to air Opinion
shows despite the declining viewer trust they generate.

To move forward…
Tell the candidate “Our client wants an update on our project status. Please summarize our progress so far and give
preliminary recommendations to NewsCo."

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CONCLUSION
To conclude, the interviewee should provide concise recommendation (below is one example, many good recommendations
are possible):

Recommendation:
• NewsCo.’s trust rating is declining because it has significantly increased Opinion programming, which viewers perceive to be
untrustworthy.
• NewsCo. should reduce Opinion programming, which viewers perceive as untrustworthy and instead explore ways to increase viewer
engagement and ad revenue for Newsdesk shows.
• Re-allocating airtime from Travel to Food may help subsidize reduced Opinion airtime in favor of more Newsdesk.
Risks:
• Reducing Opinion airtime may decrease audience engagement and ad revenue.
Next Steps: Poor recommendations will…
• Conduct focus groups to identify innovative ways to capture audience engagement • Suggest client ignores trust and focuses on
for Newsdesk shows to generate additional ad revenue. revenue (Trust is stated value of client).
• Ignore financial implications of recommended
action (Revenue matters too!)

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 INTERVIEWER FEEDBACK FORM Case Name _______________________ Interviewer ___________________________

Case Book ____________________ Case Type ____________ Difficulty ____________

Case Execution:
q Clarifying Questions + Framework
q Good Questions
Feedback:
1 2 3 4 5
q Structured
q MECE
q Creativity
q Exhibits + Analysis
q Accuracy Feedback:
q Speed 1 2 3 4 5
q Insights Presented
q Errors / Guidance Needed

q Brainstorm + Conclusion
q Creative & Structured 1 2 3 4 5 Feedback:
q Good Business Judgment
q Recommendation Strength

q Universal Skills
q Coachability & Collaboration
q Structured communication Feedback:
1 2 3 4 5
q “So what” & Business acumen
q Body Language, Confidence, Poise
q Adaptability

Total: _____ / 20
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