麦肯锡案例面试题GreatBurger案例分析英文有答案.docx
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麦肯锡案例面试题GreatBurger案例分析英文有答案
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麦肯锡案例面试题:
GreatBurger案例分析(英文,有答案)
PracticeCases
GreatBurger
Introduction
Tostepthroughthiscaseexample,wewillgiveyousomeinformation,askaquestion,andthen,whenyouareready,giveyouasampleanswer.Wehopethattheexercisewillgiveyouasenseoftheflowofacaseinterview.(Pleasenote,youcanstopthisexerciseandpickupwhereyouleftofflater.Yourcookiesmustbeontousethisfeature).
Inthisexercise,youwillansweraseriesofquestionsasthecaseunfolds.Weprovideourrecommendedanswersaftereachquestion,withwhichyoucancompareyourownanswers.Wewanttoemphasizethatmostquestionsinacasestudydonothaveasinglerightanswer.Inalivecaseinterview,wearemoreinterestedinyourexplanationofhowyouarrivedatyouranswer,notjusttheansweritself.Aninterviewercanalwaysassessdifferentbutequallyvalidwaysofapproachinganissue,andthenbringyoubacktotheparticularlineofinquirythatheorshewantstopursue.
Youshouldalsokeepinmindthatinalivecase,therewillbefarmoreinteractionwiththeinterviewerthanthisexerciseallows.Forexample,youwillhavetheopportunitytoaskclarifyingquestions.
Finally,alivecaseinterviewwouldtypicallybecompletedin30-45minutes,dependingonhowthecaseevolves.Inthison-lineexercise,thereisnotimelimit.
Therearesixquestionsinthison-linecasestudy.Thiscasestudyisdesignedtoroughlysimulateoneduringyourinterview,soyouwillnotbeabletoskipaheadtothenextquestionuntilyouhaveansweredtheoneyouareon.YoucanrefreshyourmemoryofpreviousanswersbyclickingthehighlightedQ&Alinkstotheleft.Toprinttheanswer,clickontheprinticonthatappearsintheTOPRIGHTcorner.Attheend,youcanprinttheentireon-linecasestudyatonce.
StartCaseStudy
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ClientGoal:
ShouldGreatBurgeracquireHeavenlyDonutsaspartofitsgrowthstrategy?
OurclientisGreatBurger(GB)afastfoodchainthatcompeteshead–to-headwithMcDonald's,Wendy's,BurgerKing,KFC,etc.
DescriptionofGreatBurger
GBisthefourthlargestfastfoodchainworldwide,measuredbythenumberofstoresinoperation.Asmostofitscompetitorsdo,GBoffersfoodand"combos"forthethreelargestmealoccasions:
breakfast,lunch,anddinner.
EventhoughGBownssomeofitsstores,itoperatesunderthefranchisingbusinessmodelwith85percentofitsstoresownedbyfranchisees(individualsownandmanagestores,payfranchisefeetoGB,butmajorbusinessdecisions(e.g.,menu,lookofstore)controlledbyGB).
McKinseystudy
AspartofitsgrowthstrategyGBhasanalyzedsomepotentialacquisitiontargetsincludingHeavenlyDonuts(HD),agrowingdoughnutproducerwithbothaU.S.andinternationalstorepresence.
HDoperatesunderthefranchisingbusinessmodeltoo,thoughalittlebitdifferentlythanGB.WhileGBfranchisesrestaurants,HDfranchisesareasorregionsinwhichthefranchiseeisrequiredtoopenacertainnumberofstores.
GB'sCEOhashiredMcKinseytoadvisehimonwhethertheyshouldacquireHDornot.
QUESTION1
WhatareaswouldyouwanttoexploretodeterminewhetherGBshouldacquireHD?
ANSWER1
Somepossibleareasaregivenbelow.Greatjobifyouidentifiedseveraloftheseandperhapsothers.
∙StandalonevalueofHD
∙Growthinmarketfordoughnuts
∙HD'spastandprojectedfuturesalesgrowth(breakdownintogrowthinnumberofstores,andgrowthinsamestoresales)
∙Competition–arethereanyothermajornationalchainsthataredoingbetterthanHDintermsofgrowth/profit.Whatdoesthisimplyforfuturegrowth?
∙Profitability/profitmargin
∙Capitalrequiredtofundgrowth(capitalinvestmenttoopennewstores,workingcapital)
∙Synergies/strategicfit
∙Brandqualitysimilar?
Wouldtheyenhanceordetractfromeachotherifmarketedsidebyside?
∙Howmuchoverlapofcustomerbase?
(verylittleoverlapmightcauseconcernthatbrandsarenotcompatible,toomuchmightimplylittleroomtoexpandsalesbycross-marketing)
∙Synergies(Hint:
donotdivedeeponthis,asitwillbecoveredlater)
∙Managementteam/culturalfit
∙Capabilities/skillsoftop,middlemanagement
∙Culturalfit,ifverydifferent,whatpercentofkeymanagementwouldlikelybeabletoadjust
∙Abilitytoexecutemerger/combinecompanies
∙GBexperiencewithmergersinpast/experienceinintegratingcompanies
∙Franchisestructuredifferences.Detail“dive”intofranchisingstructures.Wouldthesedifferentstructuresaffectthedeal?
Canwemanagetwodifferentfranchisingstructuresatthesametime?
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TheteamstartedthinkingaboutpotentialsynergiesthatcouldbeachievedbyacquiringHD.HerearesomekeyfactsonGBandHD.
Exhibit1
Stores
GB
HD
∙Total
5,000
1,020
∙NorthAmerica
3,500
1000
∙Europe
1,000
20
∙Asia
400
0
∙Other
100
0
∙Annualgrowthinstores
10%
15%
Financials
GB
HD
∙Totalstoresales
$5,500m
$700m
∙Parentcompanyrevenue
$1,900m
$200m
∙Keyexpenses(%sales)
∙Costofsales
51%
40%
∙Restaurantoperatingcosts
24%
26%
∙Restaurantproperty&equipmentcosts
4.6%
8.5%
∙Corporategeneral&administrativecosts
8%
15%
∙Profitas%ofsales
6.3%
4.9%
∙Sales/stores
$1.1m
$0.7m
∙Industryaverage
$0.9m
$0.8m
QUESTION2
WhatpotentialsynergiescanyouthinkofbetweenGBandHD?
ANSWER2
Wearelookingforafewresponsessimilartotheonesbelow:
∙Lowercosts
∙Biggestopportunitylikelyincorporateselling,general,andadministrativeexpenses(SG&A)byintegratingcorporatemanagement
∙Maybesomeopportunitytolowerfoodcostswithlargerpurchasingvolumeonsimilarfooditems(e.g.,beverages,deepfryingoil),howeveroverlapsmaybelowasingredientsareverydifferent
∙GBappearstohaveanadvantageinpropertyandequipmentcostswhichmightbeleveragabletoHD(e.g.,superiorskillsinleasenegotiation)
∙Increaserevenues
∙SelldoughnutsinGBstores,orsomeselectedGBproductsinHDstores
∙GBhasmuchgreaterinternationalpresencethuslikelyhasknowledge/skillstoenableHDtoexpandoutsideofNorthAmerica
∙GBmayhavesuperiorskillsinidentifyingattractivelocationsforstoresasitssalesperstorearehigherthanindustryaverage,whereasHD'sislowerthanindustryaverage;mightbeabletoleveragethiswhenopeningnewHDstorestoincreaseHDaveragesalesperstore
∙ExpandHDfasterthanitcoulddoonown–GB,asalargercompanywithlowerdebt,mayhavebetteraccesstocapital
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QUESTION3
Theteamthinksthatwithsynergies,itshouldbepossibletodoubleHD’sU.S.marketshareinthenext5years,andthatGB’saccesstocapitalwillallowittoexpandthenumberofHDstoresby2.5times.WhatsalesperstorewillHDrequirein5yearsinorderforGBtoachievethesegoals?
UseanydatafromExhibit1youneed,additionally,yourinterviewerwouldprovidethefollowingassumptionsforyou:
∙Doughnutconsumption/capitaintheU.S.is$10/yeartoday,andisprojectedtogrowto$20/yearin5years.
∙Foreaseofcalculation,assumeU.S.populationis300m.
ANSWER3
Youshouldalwaysfeelfreetoaskyourintervieweradditionalquestionstohelpyouwithyourresponse.
Possibleresponsesmightincludethefollowing:
∙Marketsharetoday:
$700MHDsales(fromExhibit1)÷$3BU.S.market($10x300Mpeople)=23%(roundto25%forsimplicitysake)
∙U.S.marketin5years=$20x300=$6B
∙HDsalesifdoublemarketshare:
50%x$6B=$3B
∙Perstoresales:
$3B/2.5(1000stores)=$1.2M
Doesthisseemreasonable?
∙Yes,givenitimplieslessthandoublesamestoresalesgrowthandpercapitaconsumptionispredictedtodouble.
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QUESTION4
Oneofthesynergiesthattheteamthinksmighthaveabigpotentialistheideaofincreasingthebusinesses'overallprofitabilitybysellingdoughnutsinGBstores.Howwouldyouassesstheprofitabilityimpactofthissynergy?
ANSWER4
Besureyoucanclearlyexplainhowtheassessmentyouareproposingwouldhelptoanswerthequestionposed.
Somepossibleanswersinclude:
∙CalculateincrementalrevenuesbysellingdoughnutsinGBstores(calculatehowmanydoughnutsperstore,timespriceperdoughnut,timesnumberofGBstores)
∙CalculateincrementalcostsbysellingdoughnutsinGBstores(costsofproduction,incrementalnumberofemployees,employeetraining,softwarechanges,incrementalmarketingandadvertising,incrementalcostofdistributionifwecannotproducedoughnutsinhouse,etc.)
∙Calculateincrementalinvestments.Doweneedmorespaceineachstoreifwethinkwearegoingtoattractnewcustomers?
Doweneedtoinvestinstorelayouttohavein-housedoughnutproduction?
∙Ifyouranswerweretotakeintoaccountcannibalization,whatwouldbetherateofcannibalizationwithGBofferings?
Doughnutcannibalizationwillbehigherwithbreakfastproductsthanlunchanddinnerproducts,etc.
∙Onewaytocalculatethiscannibalizationistolookathistoriccannibalizationrateswithnewproduct/offeringlaunchingswithinGBstores
∙MightalsocannibalizeotherHDstoresiftheyarenearbyGBstore–couldestimatethisimpactbyseeinghistoricalchan