Start with a profitability problem. Examples are falling sales , rising costs, or both. Your task will be two-fold: performing a structured and quantitative analysis of the data to isolate the problem and then finding a promising solution for the problem. We will explain the procedure along with a profitability case example just like the one you might encounter in a consulting interview : Your client is a chewing gum manufacturer you can find the entire case here. The CEO of the manufacturing company is concerned because his company is experiencing declining profitability.
Superior Manufacturing Co. Case Analysis | Case Study Template
Balance sheet is used to maintain the financial record of a company on a yearly basis. It provides valuable information about the net worth of the company. Profit and loss account is used to determine if profit is being made or not. The advantage of the system is that it saves time and eliminates error in computation. The software development methodology used is rapid application development RAD. Use case model is also used to represent the partitions of the system.
The most common case type in consulting interviews: the profitability case
Naturally, all the stake- holders of a business including the lenders are interested in the analysis of profit and loss statement. The bankers along with other stake- holders study the trends of all the above components and infer on the performance of the company. The contents of revenues earned is listed at the right-hand side of T and all the expense contents are listed at the left-hand side of T. The listing of contents is done in such a method that is fairly easy to summarise.
The ultimate goal of any normal business is to maximize profits - nobody does a day's work to lose money! As such, issues around profitability are understandably a recurring theme for working consultants and are the subject of many case interviews. The subject of profitability is dealt with in detail in the MCC Academy course in a one hour video lesson which you can check out below:. Depending on your background knowledge, parts of this lesson might feel a little like being thrown in at the deep end - it is from around halfway through the MCC Academy course and builds on the content which has gone before it.