No.

Reference Link Type Detail content

How Are Candidates Scored?
With the presence of open-ended explanation questions and the video sum up, your
grading won’t be as simple as the other more traditional screening assessments such
as the McKinsey PST and BCG Potential Test. Instead of having standardized scores
(i.e., how many questions a candidate got right), you will likely be evaluated
holistically in terms of the key consulting skills mentioned earlier and have your
performance compared with those of other candidates.

90% of the 260+ cases interview questions they reported were focused on one of the
following topics:

Profit improvement
Revenue growth
Market entry
Cost cutting
Process optimization
Product launch
Mergers and acquisitions
Investment decisions
Responding to a competitive threat
Pricing

https://careers.bcg.com/global/en/job/36360/?
JD fbclid=IwY2xjawGRPLlleHRuA2FlbQIxMAABHRCbs3NaqDECo6Tf61YfAVYHURM4Bw0
LkbS4iDf1KammYoc_Zg6f3pXEAg_aem_S9smcoRJ6VpkeQbQnJsftQ
https://bcgcloudasp.sharepoint.com/Sites/SEARecruiting/SEA%
20Recruiting/Forms/AllItems.aspx?id=%2FSites%2FSEARecruiting%2FSEA%
Assumed knowledge & 20Recruiting%2FExternal%20Communications%2FBCG%20Online%20case%
glossary of key terms 20assessment%20User%20Guide%202024%2Epdf&parent=%2FSites%
2FSEARecruiting%2FSEA%20Recruiting%2FExternal%
20Communications&p=true&ga=1
 The case contains 8 to 10 questions, delivered over an instant messenger-like interface, to be solved in 25 to 30 minutes. These
questions take 2 forms:
1. Multiple-choice questions where candidates have to choose which data they need to proceed, what analyses they want to do next, or
what their findings/conclusions are
Format
2. Open-ended questions where candidates have to explain their answers to the prior multiple-choice questions or answer a math or
creativity question
This is followed by a one-way video interview question at the end where you have to provide a recommendation to the client. To sum up,
you have 1 minute to prepare and another minute to present your conclusion.

How Are Candidates Scored?

With the presence of open-ended explanation questions and the video sum up, your grading won’t be as simple as the other more
https://www.preplounge.
Score/ Criteria traditional screening assessments such as the McKinsey PST and BCG Potential Test. Instead of having standardized scores (i.e., how
com/en/articles/bcg-online-case
many questions a candidate got right), you will likely be evaluated holistically in terms of the key consulting skills mentioned earlier and
have your performance compared with those of other candidates.

When Do I Get My BCG Online Case Results?

The results are usually delivered within 2 weeks. However, sometimes the test is done as part of the first-round interviews. In such
Case Result Receive
cases, your performance in the test will be assessed together with your case interview performance, and the results will be
communicated accordingly

Tip 5: Structure the Conclusion Correctly

To succeed in the BCG Online Case final recommendation, you need to be able to communicate your thoughts in a concise and
understandable manner. This is critical as you need to summarise your findings in 1 minute.

I would recommend structuring your thoughts as follows:

- Briefly repeat the goal of the case provided in the initial prompt
- Present a direct answer to the question first and only then back it up with distinct supporting points
- Structure your supporting point (eg labeling them with “First,.. Second, Third…”) to make them more clear
End by presenting your next steps and/or risks
 Case 1
BCG Online Case Assessment (Chatbot Casey) Solved by Ex-BCG Consultant - YouTube
No. Question Answer Explaination Flow of Analysis Key-takeaway Note
1 Our client, MyStay, is a global hotel chain with hotels in almost 100 countries.
The group had a healthy business with an annual growth rate of 12% for the past 5 years.
Two of their biggest competitors merged this year and launched an aggressive growth program.
Before the program's launch, the reports were already expecting a 9% growth for this year for our client, but this move by the competitors can put it at risk.
The CEO created a team to define ways to respond to the competitors' move. Thus, she asked us to help her team to analyze the situation in detail and set a competitive response strategy.
What would you like to clarify with the client first? Select the two most 1. What's the name of our competitors? 1. What's the name of our competitors? Client Alignment on Có mấy câu xàm khờ
relevant data points. 2. Who is the client? How can we segment their services? => Not critical Objective quá thì hong care
3. Are there any emerging players in the hotel industry? 2. Who is the client? How can we segment their services?
4. What are the CEO's financial objectives when responding to the competitors? => Essential to set the strategy
3. Are there any emerging players in the hotel industry?
=> "2 biggest competitors - global chain" => don't need to care
4. What are the CEO's financial objectives when responding to the competitors?
=> To know what is the expected outcome
- The client is the largest hotel group in the world, with $20B in revenues and more than 5K properties. They operate on six continents and serve nearly 150M customers every year.
- Their portfolio includes:
+ luxury resorts
+ premium business hotels
+ budget hotels.
- The CEO committed to keeping the growth rate at double digits for the next three years without decreasing profitability
What areas would you like to investigate to assess the situation and set 1. Value proposition of MyStay compared to their competitors. 1. Value proposition of MyStay compared to their competitors. Framework/ Outline Ban đầu chỉ focus vào
a competitive response strategy? Select the most important 5 areas. 2. Revenue management and pricing strategy of MyStay. => Đánh giá tình huống thực tế so với đối thủ the research (steps asess the situation -
3. Financial impact of the competitors' actions, e.g., customer loss. 2. Revenue management and pricing strategy of MyStay. included) nên chỉ focus vào
4. Non-financial impact of the competitors' actions e.g., brand damage. => Đánh giá tình hình để set competitive stratge => nên evaluate tác động từ đói thủ first internal capability
5. Key market trends in the hospitality sector globally. (diẻct objective) => nên đi trực tiếp vào
6. Possible ways to respond to the competitors. 3. Financial impact of the competitors' actions, e.g., customer loss. câu hỏi, cái nào
7. Organizational changes needed to implement new strategies. => Yes, impact từ competitor relevant nhất?
8. Risks of potential competitive response strategies. 4. Non-financial impact of the competitors' actions e.g., brand damage. Competitor impact?
9. Organic and inorganic (M&A) growth history of MyStay. => Yes, impact từ competitor competitive strategy?
10. Data analytics and Al capabilities of MyStay to improve customer 5. Key market trends in the hospitality sector globally.
=> Too general
6. Possible ways to respond to the competitors.
=> Yes, vì đang set strategy
7. Organizational changes needed to implement new strategies.
=> Chưa phải lúc, chưa có strategy sao implement đc
8. Risks of potential competitive response strategies.
=> Yes, đi kèm vs potential strategy
9. Organic and inorganic (M&A) growth history of MyStay.
=> Not relevant
10. Data analytics and Al capabilities of MyStay to improve customer
=> Not relevant to competitor impac
3 -
What would you analyze to quantify the potential revenue impact of the 1. Number of our properties that started to face direct competition as a result 1. Number of our properties that started to face direct competition as a result of the Impact Caculation Straight to yêu cầu
competitors' move on the client's business? Select the most relevant of the competitors' growth. competitors' growth. Approach
three indicators about MyStay. 2. Number of price-sensitive customers per hotel that can be lost due to => Competitor impact
overpricing. 2. Number of price-sensitive customers per hotel that can be lost due to overpricing.
3. Annual fixed cost per hotel. => Competitor impact
4. Annual revenue per customer ($). 3. Annual fixed cost per hotel.
5. CAPEX investment plan for the next 5 years. => Not relevant, đang tính revenue impact (external, cost là chuyện internal)
4. Annual revenue per customer ($).
=> Yes
5. CAPEX investment plan for the next 5 years.
=> Kh show diẻct impact của competitor move
4

Which hotels' customers are at risk of leaving MyStay after the 1. 500 business and 700 budget hotels Different city: no. of client hotel in the city that don't have the appearance of competitor Exibit/ Implement
competitors merge? 2. 10 luxury hotels hotel
3. 500 business and 300 budget hotels 1. 500 business and 700 budget hotels
4. 500 business, 1500 budget and 990 luxury hotels => Dù cùng city nhma mình lower price nên mình lợi hơn
2. 10 luxury hotels
=> Mình lower price và mình mạnh về luxury
3. 500 business and 300 budget hotels
=> These in red, mean the competition in the same city are higher, and the competitor
have lower price => khách sẽ dễ leave để sang competitor hơn
4. 500 business, 1500 budget and 990 luxury hotels
=> different city nên sự cạnh tranh cũng kh quá mạnh mẽ, vì kh có sự xuất hiện competitor,
chưa chắc khách hàng có opt khác để leave
 Case 1
BCG Online Case Assessment (Chatbot Casey) Solved by Ex-BCG Consultant - YouTube
No. Question Answer Explaination Flow of Analysis Key-takeaway Note
5 - Cí đường đỏ - price sensitivity nghĩa là trung bình độ nhạy cảm của khách hàng với giá, nếu nằm cao hơn, hoặc trên có nghĩ là khách hàng tại điểm đó sẽ leave, vì vượt quá the limit fỏ price của
- X-axis: chỉ mức độ price sensitivity của customer, cao có nghĩ là rất nhạy với giá
Note: Lỗi ban đầu khi đọc: Nhìn vào từng điểm và nghĩ là khách hàng ở điểm đó sẽ có price sensitivity ở X-axis và price difference ở Y-axis

We know the price difference between the client and the competitor for 1. All highly price sénitive (btw 1-4) leisure customer group 1. All highly price sénitive (btw 1-4) leisure customer group
each hotel. The client studied the price sensitivity of its main customer 2. All customer group above the price sensitivity curve => No, chỉ số price sensitive cao hong có nghĩa là nó sẽ quit, vì có thể nó chưa phải là limit
segments for each hotel and found the following. 3. All customer groups of hotels with a minimum 50% price differencevs của customer
competitors 2. All customer group above the price sensitivity curve
4. Half of the business customer group => Yes, vì the curve là the limit
3. All customer groups of hotels with a minimum 50% price differencevs competitors
=> No
4. Half of the business customer group
=> No, kh chặt chẽ
6 Let's quantify how much revenue ($) MyStay may lose per year. Starting 855
with the business hotels first, we have the following information. Note
that you also need another data point from our analysis earlier to
calculate the company-wide impact.
Per business hotel:
• Number of customers per hotel at risk: 190 • Average price per room per
night: $150 • Number of nights stayed per customer in a year: 60 500 hotels * 190 customer * $150 spend/customer * 60 nights/ year = $855M
Please input numerical values in million $. For example, enter 100 if your
answer is $100M. *500 hotel là dựa trên hình trên, có 500 business hotel của client đang at risk, vì in the same city with competitor
Let's switch gears to budget hotels. How much would be the annual 135 That's correct, the answer is $135M:
revenue impact of the customers at risk? Similarly, you'll need another 300 hotels * 250 customers * $90 spend/customer* 20 nights/year = $135M
data point from our analysis earlier to calculate the company-wide
impact. *300 hotel là dựa trên hình trên, có 300 budget hotel của client đang at risk, vì in the same
Per budget hotel: city with competitor
• Number of customers per hotel at risk: 250
• Average price per room per night: $90
• Number of nights stayed per customer in a year: 20
Please input numerical values in million $. For example, enter 100 if your
answer is $100M.
The total annual revenue impact would be $990M ($855M+$135M). Let's $1.2B That's correct. If it weren't for the competitors' merger, MyStay would achieve $21.8B in
round it to $1B. annual revenues (applying 9% expected growth on $20B). However, the client is expected
MyStay finished the end of last year with $20B in annual revenue. This to get an annual hit of $1B in annual revenues. Hence, the new expected annual revenue
year, the client was expecting a 9% growth; however, as we've would be $20.8B. To achieve a 10% revenue growth on top of the existing $20B (i.e., to
calculated, it's at risk. How much more does the client need to grow their achieve $22B), they need to grow by $1.2B more.
annual revenue to achieve their objective of a 10% annual growth rate?
Revenue last year: 20B
=> Objective revenue: 20 *1,1 = 22
Expecting revenue: 1.09 * 20 = 21.8
Decrease because of the competior: 1B
=> Current revenue = 21.8 - 1 = 20.8
To reach 22, need more 1.2 (22-20.8)
Please provide 5 ways to grow the client's revenues. Keep your answer to Here are some possible areas to grow the client's revenues: Response strategy Focus on
12 lines maximum. • Better address the needs of our existing customers to improve customer loyalty improve and
programs. stand out/ kh có
• Lower prices to attract more customers, especially in budget hotels. mở thêm
• Launch an aggressive marketing campaign to attract new leisure and business
travelers.
• Differentiate services by opening casinos, water parks, and conference
centers.
• Double down on the luxury hotel segment, where the client's already strong.
10 After presenting a list of potential growth areas, the executive team 30 1.2B / 40M = 30
expressed their interest in growing more in the luxury resorts category.
How many luxury hotels does the client need to open to meet their
financial objective? You can assume that we can open these hotels
immediately via acquisitions, and the client can generate $40M in annual
revenue per hotel.
 Case 1
BCG Online Case Assessment (Chatbot Casey) Solved by Ex-BCG Consultant - YouTube
No. Question Answer Explaination Flow of Analysis Key-takeaway Note
11 What might be some risks MyStay should consider before making their 1. Geopolitical instability: Expanding into regions with political instability or safety 1. Geopolitical instability: Expanding into regions with political instability or safety
decision? Select two options. concerns may negatively affect MyStay's operations, customer perception, and concerns may negatively affect MyStay's operations, customer perception, and
profitability. profitability.
2. Cannibalization: The new resorts should offer a unique value proposition in => Too simple problem, client í a global chain
terms of location and type. Otherwise, they may cause a cannibalization effect
on the existing business. We may want to analyze the target hotel locations to 2. Cannibalization: The new resorts should offer a unique value proposition in terms of
understand this risk better. location and type. Otherwise, they may cause a cannibalization effect on the existing
3. Health and safety incidents: Any significant health or safety incidents at business. We may want to analyze the target hotel locations to understand this risk
Mystay's properties could lead to negative publicity. legal consequences, and a better.
loss of customer trust. => Currently, the client hav 1000 luxury hotel => dẽ bị cannibalize
4. Lack of demand: Expected occupancy rates may not be achieved if there => Cannibalization: The client's business is prominent in the Americas and Europe but not
isn't a strong demand to meet the client's aggressive growth objectives. We can Asia. They may grow in Asia, thereby minimizing the cannibalization risk.
check the luxury tourism industry growth rate to make a judgment.
3. Health and safety incidents: Any significant health or safety incidents at Mystay's
properties could lead to negative publicity. legal consequences, and a loss of customer
trust.
=> Its global chain and luxury, so simple issue

4. Lack of demand: Expected occupancy rates may not be achieved if there isn't a
strong demand to meet the client's aggressive growth objectives. We can check the
luxury tourism industry growth rate to make a judgment.
=> Yes, always care
=> Lack of demand: The luxury tourism industry has been growing at a steady 20% over
the past three years.
Let's assume we do not foresee any significant risk, base on our analysis Mystay will be impacted by 1 B$ a year in revenue ans should respond to their Outline: Conclude case study/
today, what shall we recomment our client to do? competitor by expanding their luxurry business for the following reason, an - Issue (loss profit, revenue, etc.) recommendation
investment with 30 hotels can help decline achieve a 10 revenue growth rate. - sum up recommendation
Their competitors doesn't cmpete in the luxury category while it is solid in - Explain (1st, 2nd, 3rd..)
business and budget categories. Any growth in these 2 categories may cause
price warm in hurt profit, from a risk point of view there is no significant factor
interm of cannibalization or demand . As the next step, the client may want
identify locations for new hotels and start coperational and commercial
preparation
 Case 2
No. Information Question Answer Explaination Flow of Analysis Key-takeaway Note
1 - Our client is a global consumer goods company. The company’s What is important to take into consideration when outlining 1. How the company can benefit commercially by implementing the initiative both Yes, considering both the commercial benefit and being able to quantify the
products include a wide variety of personal care products (e.g., hair recommendations on meeting a science-based target for a commercial short- and long-term environmental impact are important, though the financial benefits to the company are a
care, skin care, cosmetics). company? 2. To quantify and highlight the impact such measures would have in the fight primary concern. It's important to help clients think about science-based target
- The client’s CEO feels strongly that her company needs to develop a against climate change recommendations as they might think about entering a new market or launching a new
plan to reduce its environmental impact and do its part in the fight 3. Both of the above product.
against climate change, and has engaged BCG to help her create a
business case for setting a science-based target to reduce the
company’s impact and determine what initiatives to undertake to
achieve that target.

Context:
- Science-based targets provide a clearly-defined pathway for
companies to reduce greenhouse gas emissions, helping prevent the
worst impacts of climate change and future-proof business growth.
- Targets are considered science based if they are in line with what
the latest climate science deems necessary to meet the goals of the
Paris Agreement – limiting global warming to well-below 2°C above
pre-industrial levels and pursuing efforts to limit warming to 1.5°C.
2 Which of the following is NOT an important reason to consider as a 1. Establishing urgency: The greater the commercial benefit the initiative can While understanding employee sentiment is one factor to consider in implementation of
business metric when working with science-based targets? showcase, the higher the priority of taking action will be an environmental initiative, it is unlikely to be a primary driver in making the case for such
2. Assessing sustainability: Any initiatives taken on by the company must have an initiative. Both establishing urgency and assessing sustainability are better business
long-term financial gains, otherwise it undermines the company's future metrics to focus on when working with science-based targets.
3. Gaining employee buy-in: The more employees support the initiative, the
easier its implementation will be
3 Turning to the case study, what’s the first step you would take? 1. Develop initial recommendations based on competitors' approaches and find You're absolutely right - best place to begin is to gather information on current status. Our
supporting data client operates in several different markets globally.
2. Gather as much relevant information from the client as possible to get an
overview of the current status of the company and the company's capabilities
4 How would you approach their market reach in this case? 1. I think we need to look at each market individually as regulations around You're right, a one-size-fits-all-markets approach won't work. For the sake of this case,
environmental impact vary significantly from country to country know that environmental impact regulations are becoming increasingly common, and we
2. I would take a global approach as sustainability and climate change efforts are a expect that trend will continue over the next decade.
global challenge
5 What are the benefits of assessing current regulations? 1. Local governments may offer tax credits or other incentives to companies It is necessary to adhere to current regulations, and it would be a shame to leave potential
pursuing environmentally-friendly efforts which is vital information for my incentives out of your proposal. Therefore, it's important to align with regulations AND
proposal take advantage of any local initiatives. Let's look at other actors in our markets.
2. My recommendations must align with current regulations
3. Both aligning with regulations and taking advantage of initiatives is important
6 What would you take into consideration looking at the competitor 1. Who are our largest competitors and have they announced environmental It's best to understand both the large competitors and the niche competitors, as both tell
landscape? impact targets or other related initiatives us different things. Our primary competitors are our direct challengers, but niche
2. Which niche or small competitors are making strides in reaching environmental companies may find trends and approaches more quickly than larger competitors. At the
impact targets, and how do their consumers respond moment, neither of our two main large competitors have announced environmental
3. It's important to focus on both the big market players and the niche actors to impact initiatives, but there’s a growing number of smaller niche brands that are targeting
have a full understanding of the market landscape environmentally conscious customers.
7 Which of the following market research conclusions would you NOT use 1. As this initiative would set us apart from less environmentally-conscious Convincing consumers to use fewer products overall is not likely to be a useful market
in your proposal? companies, we may be able to convince customers to use fewer products research conclusion. Both winning market share and first-mover advantage would be
overall useful conclusions to include in your proposal. Let's look at the next stakeholder, the
2. As this initiative appeals to consumers of niche environmentally-friendly consumer.
brands, there's an opportunity to win market share
3. As the first of the major global competitors in the space to set environmentally-
friendly goals and targets, there's a potential first-mover advantage
8 When looking at this data what do you think is MOST relevant to the case? 1. The number of consumers willing to pay more for environmentally-friendly While this is a very strong piece of data, the upward trend of environmental data best
products doubled in five years supports the case, as it demonstrates that there are multiple consumer trends that would
2. There is a significant upward trend of environmental awareness amongst support a greater focus on environmental impact for our client. Now that we have a solid
consumers in terms of what they seek, how they evaluate companies, and what understanding of the market, let's look at our client.
they are willing to pay for
3. 86% take environmental impact into consideration when purchasing products => Ý 2 bự hơn ý 1, nên bao trùm và mang tính phổ quát hơn

9 What would you need to know in terms of the company's capabilities? 1. The client's financial status; revenue, profitability, cash in bank as well as their Absolutely correct! Understanding the client's financials and their organizational
forecasts structure are key to providing strong suggestions in this case.
2. The client's organizational structure as well as the current logistics of
producing and selling their products
3. Neither the financial status or organizational structure are important in light of
the company's stated mission
4. Both the financial status and organizational structure are vital for your
understanding of the case
10 Why is the client's financial status important? 1. Any new initiative is likely to require a substantial monetary investment from Correct! In order to give the best recommendations, you must have a full understanding of
the client. To gauge the impact of an initiative, you need a full understanding of the client's financial strengths and weaknesses. This is so your recommendations are
the client's finances, including revenue forecasts financially viable and sustainable within the company.
2. You need to know whether the client can afford BCG's consulting services
3. In order to know the biggest and most impressive initiative you can
recommend, you need to know how much revenue they have available
11 Why is the client's organizational structure and logistics important? 1. There are likely to be people in the organization who do not favor your Absolutely! In order for you to offer a full proposal with high-quality recommendations,
recommendation. It's good to have full knowledge of where decision-making you need to understand what the client is currently capable of, and how they may need to
power lies adapt their logistics and current capabilities to be able to carry out your
2. There may be significant inefficiencies to cut from the client's current supply recommendations. Now, let's identify next steps.
chain logistics. Any trimming in those areas would allow more money to be
funnelled toward new initiatives
3. Does the client have the necessary talent, skill base and resources to
succeed in the initiative? In order to know what a client will need to implement
a new initiative, you must understand what they are currently able to do
12 Reading this data, where do you suggest we focus our efforts to have the 1. Suppliers and methods of transportation of products to our client's site There might be room for improvement there, but the upstream supply chain of suppliers
most impact? 2. Our client's onsite energy usage, equipment and staff competence and transportation is the main cause of emissions.
 Case 2
No. Information Question Answer Explaination Flow of Analysis Key-takeaway Note
13 Given that, what would your recommendations be? 1. Source suppliers that use more environmentally-friendly raw materials for our Our client agrees that sourcing new suppliers and switching transport methods are both
products viable ways to reduce environmental impacts. The CEO wants to explore switching
2. Switch to lower-emission methods of transporting inputs to our production suppliers rather than changing transport methods and provides you with the following
facilities information. This data shows cost and pricing after switching to a new supplier.
3. I would look at choosing new suppliers as well as new transportation
methods
14 The CEO wants to explore switching suppliers rather than changing How much will our client’s costs increase? 20%
transport methods and provides you with the following information.
This data shows cost and pricing after switching to a new supplier.

15 If you could choose only one action, which path would you recommend to 1. Increase price 20%
maintain our client's gross profit? 2. Increase volume 20#
16 Why did you choose to focus on increasing sales volume? 1. Price elasticity amongst consumers is not a given. We may lose consumers if we Focusing on sales volume is a viable approach, and will require substantial investment in
increase price and would therefore decrease gross profit resources like new sales personnel or new marketing efforts and your suggestions should
2. Since our competitors haven't launched any environmentally-friendly initiatives acknowledge this. What matters most to a case study is that you clearly motivate and
yet, we have the possibility to take market share as well as raise our profile among support with data your suggested choice.
the client's current customer base
3. A combination of both
17 Is there anything else you'd like to include in your recommendations? 1. Strike while the iron is hot. If the client makes the initiative now, they may This is a strong recommendation, and is well-supported by the data. Striking while the
realize some first mover advantage among the major global competitors iron is hot and sourcing strategic assets are both excellent final suggestions in your case
2. New competencies will be needed to drive this initiative. The client must study, while reducing running costs is not borne out by data and does not strengthen your
source strategic hires, partnerships, or consider an acquisition in order to case. Drawing insights from data is a vital part of a case and will be expected of you.
procure knowledge and skills required
3. The client should put primary emphasis on reducing running costs at their
facilities in order to reduce their carbon footprint
18
 Case 3
No. Information Question Answer Explaination Flow of Analysis Key-takeaway Note
1 Our client, Cemio, is an Indonesian cement manufacturer with about Before devising our approach, what should we check with the client 1. How many clients does the client serve every year? 1. How many clients does the client serve every year? client alignment,
$1.5B in revenue. They have seen a sharp decline in their profitability first? Select the two most relevant data points. 2. What does a successful turnaround stand for in the client's eyes? => Too early, too specific to know clarify
over the past years, as their EBITDA margin declined by 8 percentage 3. How many different types of cement does the client produce? 2. What does a successful turnaround stand for in the client's eyes?
points to 2% between 2020 and 2022. The board appointed a new => very important
CEO to turn the company around, and the CEO asked us to identify 3. How many different types of cement does the client produce?
potential recovery solutions. => intersting to know, useful for further approach
2 The CEO aims to generate more than $500M net cashflow in total in What should we investigate to solve Cemio's profitability problem? Select 1. Cemio's key customer segments and their size in 2022. 1. Cemio's key customer segments and their size in 2022. Research framework -
the next 3 years. • They produce mostly one type of product, which is five options. 2. Cemio's headquarter location and staff size. => might be where problem happen identify problem
ordinary Portland cement (OPC). They used to produce large 3. Cemio's historical price and volume trends per revenue stream since 2020. 2. Cemio's headquarter location and staff size
amounts of white cement, but that makes up a tiny proportion of 4. Competitors' profitability trends across price, volume, fixed and variable => Not relevant
their sales today. cost since 2020. 3. Cemio's historical price and volume trends per revenue stream since 2020.
5. Cemio's fixed and variable cost evolution since 2020. => yes, might be where problem happen
6. Change in cement export tariff rate since 2020. 4. Competitors' profitability trends across price, volume, fixed and variable cost since
8. Underlying qualitative reasons behind Cemio's profitability decline since 2020.
2020. => is this the problem for only client or the industry issue
9. Number of construction companies and their profit margins in 2022. 5. Cemio's fixed and variable cost evolution since 2020.
=> Yes, prblem also can arrive here
6. Change in cement export tariff rate since 2020.
=> Not significant
8. Underlying qualitative reasons behind Cemio's profitability decline since 2020.
=> interesting, good to know what has caused it
9. Number of construction companies and their profit margins in 2022.
3 Let's start with the top line. You will find Cemio's sales volume and price • There is a quantity decline both in the large infrastructure and heavy
evolution across different customer segments between 2020-2022 in construction customer segments, which are the reasons for the profitability
the following exhibit. Before you analyze this, note that Cemio's decline. There doesn't seem to be an issue with light construction quantity and
customers are construction companies. You can segment them as the overall price that would cause profitability to decline.
follows: • The quantity decline may come from a market share decline due to an emerging
• Companies working on large infrastructure projects competitor or an overall market decline due to less demand for large
• Heavy construction companies infrastructure and heavy construction projects in the country.
• Light construction companies
Based on this exhibit, what might be causing profit decline? And what
might be its underlying drivers?
4 Great. It seems that the economic crisis in Indonesia in the past years How would you test if variable costs contributed to the profit decline in 1. Absolute change in variable costs between 2020 and 2022. The question: test if variable costs contributed to the profit decline
forced the government to cut down its budget for such large projects. the past years? Please select one answer. 2. Ratio of variable costs to total costs between 2020 and 2022. 1. Absolute change in variable costs between 2020 and 2022.
As a result, the overall cement market declined. Let's switch gears to 3. Ratio of variable costs to revenue between 2020 and 2022. => cannot show the cost increase => affect profit (e.g. the revenue, price increase also)
the costs. Cemio submitted the following information below. 4. Difference between variable costs and EBITDA between 2020 and 2022 2. Ratio of variable costs to total costs between 2020 and 2022.
=> Not show the link to profit also
3. Ratio of variable costs to revenue between 2020 and 2022.
=> yes, if the ratio of cost increase => lower % of profit
4. Difference between variable costs and EBITDA between 2020 and 2022
=>No (because if it move in the same size, how to know? VC -20, EBITDA -20?)

5 How much did the variable cost-to-revenue ratio increase from 2020 to 1. 65% to 70% That's correct, and here is the approach:
2022? You can skip 2021 in this analysis and select the answer for 2020 2. 70% to 75% Total variable cost in 2020/Total revenue in 2020-$1,350M/$1,800M-75%
and 2022 figures, respectively. 3. 75% to 80% Total variable cost in 2022/Total revenue in 2022-$1,200M/$1,500M=80%
4. 85% to 90%
6 Cemio procurement team informed us that they receive their raw Based on the identified root causes, what recovery strategies should the Cost side: Possible strategies to turn the company around may include:
materials from suppliers outside Indonesia. The economic crisis led client focus on? Please provide 4 strategies the client can explore - find other domestic supplier or other global sources Top-line:
to a 15% devaluation in the local currency, hence the total COGS further. - enhance the rechnology - Entering into a new market: Since the Indonesian market has been shrinking, Cemio
increased within the analyzed period. - renegotiate with local supplier may want to enter new geography. This can be done in various ways, such as:
Revenue side: 1. Shipping its products to the neighboring countries
- move to another segment (light construction) to use other raw material 2. Building a new production facility
- explore new market outside indonesia to decrease exposure to local market 3. Acquiring an established player
- Introducing a new product: If Cemio can leverage its capabilities and production
facility, it can start producing a new product for which there is a great expected demand.
• Bottom-line:
- Making new procurement deals with local suppliers to lower the unit variable cost.
• Balance sheet:
- Shrinkage via selling assets: If it is not feasible to serve/invest in a new market, and if
Cemio cannot serve the Indonesian market with an alternative product, then it may
consider selling some of its assets and shrinking its business. Given that the CEO has
committed to generating a $500M cash flow, this can be a viable option.
7 Based on the team's assessment, neither growth nor cost initiatives Before you conclude, could you share the risks you see related to that 1. A possible pick-up in the Indonesian construction market may recover the 1. A possible pick-up in the Indonesian construction market may recover the demand
seem viable for the client, in the current situation. Therefore, we can option? Select up to three relevant risks. demand for cement, and Cemio may lose the opportunity to serve that demand for cement, and Cemio may lose the opportunity to serve that demand with its lower
consider the option of shrinking the client's business by selling some with its lower production capacity. production capacity.
of their assets until the economy recovers 2. Ordinary Portland cement (OPC) may become obsolete with new R&D efforts of =>yes
global cement producers. 2. Ordinary Portland cement (OPC) may become obsolete with new R&D efforts of
3. Shrinkage may damage Cemio's brand name and reputation in the market. global cement producers.
4. Asset sales may hurt the company's market value. => not relevant (obsolete = out of date)
5. Cemio's local competitors may further reduce their prices to increase market 3. Shrinkage may damage Cemio's brand name and reputation in the market.
demand. => ys, partly important
4. Asset sales may hurt the company's market value.
=> ys, partly important
5. Cemio's local competitors may further reduce their prices to increase market
demand.
=> price is not the problem currently
8
Let's wrap up the case. Please summarize your key
findings and recommendations.

9
10
11
 Case 3
No. Information Question Answer Explaination Flow of Analysis Key-takeaway Note
12

13
14

15
16
17
18
 Case 3
No. Information Question Answer Explaination Flow of Analysis Key-takeaway Note
1 Our client, Technoplast, is one of the world’s leading green plastic Let’s think about the right structure to approach this. What are the 3 key 1. What synergies (cost savings, revenue enhancements) can be realistically
compounders. It blends recycled plastic resins with other additives in questions that you would need to answer in order to help Technoplast achieved post-acquisition?
order to create plastic compounds with desirable aesthetic and decide how much to bid for Simkin? Please summarize these in 3 lines 2. What is Skimkin's current financial health (e.g., revenue, profitability, debt
material properties. These plastic compounds are then sold to plastic maximum. levels, cash flow)?
converters that turn Technoplast’s compounds into finished 3. What are the potential risks, such as supply chain disruptions,or market
products. Please refer to the image below to see Technoplast’s place volatility?
in the recycled plastics value chain.
Last week, Technoplast’s CEO was told that Simkin, a producer of
recycled plastic resins, is being put up for acquisition for a price of
USD 30 Million. Simkin accounts for about 10% of the global market
for recycled Low Density Polyethylene (LDPE) and High Density
Polyethylene (HDPE), both of which are key inputs for Technoplast.
Technoplast’s CEO would like to assess whether Technoplast should
bid for Simkin and, if so, how much it should bid.

2 Assume that Technoplast values Simkin at ten times its annual profit Scenario 1: Given the data in the exhibit below, what is the maximum that
impact to Technoplast. This includes Simkin’s standalone profits as Technoplast should be willing to pay for Simkin? Please provide your
well as potential savings if Technoplast buys its resin from Simkin at answer rounded to the nearest whole number (for example, 1111 or 123456
cost price (if Simkin has available capacity to sell to Technoplast). Our or 500885), without further explanation or working.
client is looking at two scenarios.

3 Calculate the profit of each LDPE and HDPE segment by multiplying the 1. Calculate Simkin’s Standalone Profits for LDPE and HDPE:
quantity (selling price - minus fees) and adding them together, then 2. Calculate Cost Savings for Technoplast if it buys LDPE and HDPE from Simkin
subtracting the fixed costs. The result is the profit of that company, then at cost rather than at global prices.
multiplying it by 10 times to get the valuation value.
4 Please explain briefly the reasoning behind your answer in Question 2. Huong moi caculate cais 1 thoi dung hong
Mình đang tính minimum nó có có thể trả thì dựa vào benefit skimkin mang lại để
deal chứ

Dạ nộp lunn

5 Thanks, I would also like to understand some parameters leading you to Nó save là nó sẽ ko phải mua từ skim nữa vì skim của nó rồi, bth nó phải mua 200
your answer. What is the expected cost savings per year to Technoplast LDE với giá 1000 và 200 cái còn lại với giá 1100 thì giờ nó ko phải mua nữa, có thể
if it buys all its HDPE and LDPE from Simkin at cost price? Please provide trừ đi chi phí
your answer rounded to the nearest whole number (for example, 1111 or
123456 or 500885), without further explanation or working.
6 What profit is Simkin expected to generate per year from its sales to đúm nên nó save đc 600 cho LDE và 600 cho HDPE cho mỗi tấn
other customers? Please provide your answer rounded to the nearest
whole number (for example, 1111 or 123456 or 500885), without further
explanation or working.
7 hết giừo huhuhu Which of the following statements, if true, would affect Simkin’s dúng roi peryearr, bth nó mua 1000 cho LDPE, nhma giờ nó mua với giá 400 => nó nhanhnhanh, 1vs 3
valuation in Question 2? Please select all that apply. save đc 600, cost saving là 600/ ton, mua 200 tấn thì nhân lên, tuong tự với
 Case 3
No. Information Question Answer Explaination Flow of Analysis Key-takeaway Note
8 Scenario 2: Now, assume that Simkin’s sales volume is 4,000 tons of Ủa giá 400 ở mô ạ, mua với giá cost, vậy còn phải trừ chi phí cố định nữa, nếu đã
LDPE (instead of 3,800 tons) and 2,100 tons of HDPE (instead of 1,900 trừ thì phải trừ đi tất ấy là lấy chi phí cố định chia cho tổng sản lượng lun
tons)
Which of the following is likely to be true for Scenario 2 compared to
Scenario 1? Use the data below for your revised calculations. The change
in volume has been highlighted in red.
(Technoplast sẽ bid cao hay thấp hơn

9 Please explain in 2 - 3 lines the reasoning behind your answer in

Question 5.
10
11
12

13
14

15
16 If Technoplast acquires Simkin, it has the option to expand Simkin’s
product range by investing in recycled polypropylene (PP) production
units. Recycled PP resin is also a raw material used by Technoplast in
its compounding processes.
17
18
 Case 3
No. Information Question Answer Explaination Flow of Analysis Key-takeaway Note
 Case 3
No. Information Question Answer Explaination Flow of Analysis Key-takeaway Note
https://www.youtube.com/watch?v=dAjBER3xXFE

https://www.preplounge.com/en/articles/bcg-online-case
I would need to answer the following 3 key questions in order to help Technoplast decide
Threehow
important
much toquestions
bid for Simkin.
would need to be answere to help Technoplast decide how much to bid for Simkin. First, I need to assess the current financial performance and valuation of Simkin. I would analyze historical statements of financial performance; profit and loss accounts and profit and loss statements over recent years; growth in all areas such as asset creation, liability increase; cash flow generation, along with other related financial figures for determining

1. What is the current financial performance and valuation of Simkin? I would also look for synergies and strategic advantages to be gained from acquiring Simkin for Technoplast. These may include comparisons of product lines that complement one another, customer bases overlap, economies of scale create cost savings, or the possibility of cross-selling in a new market. The quantification of strategic benefits would allow Technoplast to tender a higher price in an attempt to capture value that can be created over time due to the acq
2. What synergies and strategic advantages may be gained for Technoplast in acquiring Simkin?
3. What is the suitable offer price that would balance the strategic interests of Technoplast
Finally,
with
I would
a fair have
deal for
to come
Simkin
upshareholders?
with an appropriate range for the bid price so that it meets the strategic interest of Technoplast along with the equity of a deal to the shareholders of Simkin. This would involve aspects like Simkin's present market value, how much premium can be offered for its acquisition, and whether the bid price is at a reasonable range so that it could be justified by Technoplast in light of synergies and strategic value that have been identified. Te

Expected cost savings per year to Technoplast if it buys all its HDPE and LDPE from Simkin at cost price: $3,152,425
Profit Simkin is expected to generate per year from its sales to other customers: $15,845,145
Making wise choices regarding retail markdown strategy depends Markdown recommendations play a pivotal role in retail strategy,
on four essential data points. The first step in finding a balance impacting both profitability and customer perception. To make
between increasing sales and preserving brand value is to informed markdown decisions, retailers rely on a variety of data
comprehend the financial impact of brand dilution brought on by points. In this context, we'll discuss the four most critical pieces of
frequent discounting. In addition, examining the relationship data needed to effectively recommend markdowns on an item.
between price and remaining seasonality and item sales offers
valuable information about demand elasticity, which in turn informs
dynamic markdown adjustments. Thirdly, determining the item's
unit cost makes it possible to determine acceptable discount levels Explanation:
and calculate profit margins. Finally, taking into account the
inventory expenses related to retaining outdated stock helps Profit impact of brand dilution due to frequent discounting:
maximize stock levels and reduce waste. Through the thorough Understanding the repercussions of frequent discounting on brand
integration of these data sets, merchants can create markdown perception and profitability is paramount. Over-discounting can
strategies that maximize profitability, inventory control, and erode brand value and negatively affect profit margins in the long
customer satisfaction, ultimately resulting in long-term, sustainable term. Therefore, assessing the potential profit impact of such
business growth. dilution is crucial in determining the appropriate markdown
strategy. This data helps strike a balance between driving sales
through discounts and preserving the brand's perceived value.
How sales of the item are likely to change with price and time left
to end of season:
Sales dynamics, particularly in relation to pricing and the time left
in the season, provide valuable insights into demand elasticity. By
analyzing historical sales data and market trends, retailers can
predict how consumer behavior will respond to different price
points and seasonal factors. This information enables them to
adjust markdowns dynamically, optimizing inventory turnover and
maximizing revenue throughout the season.
Unit cost of the item:
Knowing the unit cost of an item is fundamental for determining its
profit margin. By comparing the unit cost to the selling price,
retailers can gauge the potential profitability of offering
markdowns. Understanding the cost structure also helps in setting
appropriate discount levels that maintain profitability while
remaining competitive in the market.
Inventory cost to keep old stock in store:
Inventory management is a critical aspect of retail operations, and
the cost associated with holding old stock is a significant
consideration in markdown decisions. This includes storage costs,
as well as the opportunity cost of tying up capital in unsold
inventory. By factoring in these costs, retailers can optimize their
inventory levels, minimize wastage, and make informed decisions
about when and how much to markdown.
Conclusion:
In conclusion, the four key pieces of data required for making
effective markdown recommendations are the profit impact of
brand dilution, sales dynamics with respect to pricing and
seasonality, unit cost of the item, and inventory costs associated
with holding old stock. By analyzing these factors
comprehensively, retailers can implement markdown strategies
that balance profitability, inventory management, and customer
value, ultimately driving sustainable business growth.
To maximize profit for SKU 2002 in Period 1 and Period 2, you Step 1:Certainly! To determine the optimal prices for Period 1 and
should set the following optimal prices: Period 2 for SKU 2002, we need to consider the following factors:

Period 1 (Day 1-15): $14 per unit Daily Demand: We have information on the forecasted quantity
sold per day for each price point in both Period 1 and Period 2.
Period 2 (Day 16-30): $18 per unit.
Inventory Cost: Each unit of SKU 2002 costs Textila $4, and the
store currently prices them at $20 each.

Given this information, we want to maximize profit over the 30-day

period. Here's how we arrive at the optimal prices:

For Period 1 (Day 1-15):

Price per unit: Start with the highest price, which is $20.
Calculate daily profit for each price point using the forecasted
quantity sold per day.
Continue decreasing the price until the daily profit no longer
increases.
Based on this analysis, the optimal price for Period 1 is $14 per
unit because it maximizes daily profit.

For Period 2 (Day 16-30):

The demand for SKU 2002 does not drop between the two
periods, so we can consider the same prices as in Period 1.
Calculate daily profit for each price point in Period 2 using the
forecasted quantity sold per day.
In Period 2, the optimal price is $18 per unit because it maximizes
daily profit.

By setting these prices, the store can maximize its profit (or
minimize its loss) on the excess inventory of SKU 2002 over the
30-day period.

Step 2:To calculate daily profit, you'll need to consider the revenue
generated from sales and subtract the cost of inventory for each
price point. Here's the formula:

Daily Profit = (Price per unit * Quantity Sold per day) - (Cost per
unit * Quantity Sold per day)

Price per unit: The price at which you sell each unit of the product.
Quantity Sold per day: The forecasted quantity of units sold per
day at that price point.
Cost per unit: The cost incurred by Textila for each unit of the
product.
For example, if you're calculating the daily profit for SKU 2002 in
Period 1 at a price of $14 per unit, and the forecasted quantity sold
per day is 14 units, with a cost of $4 per unit, the calculation would
be:

Daily Profit = ($14 * 14) - ($4 * 14) = ($196 - $56) = $140

So, the daily profit for that particular price point in Period 1 would
be $140. You would repeat this calculation for each price point to
determine which price maximizes the daily profit, as we did in the
previous explanation.
In light of the burgeoning popularity of electric vehicles (EVs), it is prudent
To enhance
for Highroad
the customer
to integrate
experience,
chargingHighroad
stations into
could
all consider
of its restdeveloping
stops. Thisrest
strategic
stops move
into comprehensive
not only alignsservice
with thehubs.
global
This
shiftcould
towards
include
sustainable
offering atransportation
range of high-quality
but also amenities
positions Highroad
such as comfortable
as a forward-thinking
lounging areas,
and environmentally
free Wi-Fi access,
conscious
diversebrand.
food and
Given
beverage
that a full
options,
EV charge
and retail
can take
outlets
approximately
selling travel15-20
essentials
minutes,
and this
localpresents
merchandise.
a unique
Furthermore,
opportunityincorporating
for Highroad green
to expand
spaces
andordiversify
play areas
its product
for children
offerings
couldtomake
caterthese
to thestops
needsmore
and appealing
preferences
to of
families.
EV drivers
By doing
during
so,their
Highroad
wait. can not only meet the basic needs o
https://www.coursehero.com/u/file/212644494/BCG-Online-Case-Assessment-Set-4pdf/