Consulting case interview: chemical product innovation (w/ BCG & Bain consultants)

Here's a consulting case mock case interview featuring a BCG consultant and a Bain consultant.
🎥 Your client is a midsize German chemicals conglomerate, manufacturing end products used primarily in the construction industry. The company operates a number of diverse segments including Performance Polymers & Rubber, Adhesives, and Paints & Coatings.
You've been engaged by the VP of Paints & Coatings, whose division, which produces dispersions, pigments, and resins, has been faltering in the face of more innovative competitors.
Watch Yatharth Sharma (BCG Consultant) run Eishan Dhandhania (Bain Consultant) through this consulting mock case interview.
🎬 Video Sections:
00:00 Intro
00:32 Question prompt
04:57 Structure
06:42 Brainstorming
09:00 Quantitative
16:32 Calculating NPV
19:50 Go-to-market alternatives
23:26 Synthesis
28:14 Conclusion
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➡️ Check out our video on how to approach market entry cases: • Consulting mock case i...
➡️ Here's how to find the right stories for consulting fit interviews: • How to find the right ...
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[@reemfahim1798]

great videos ,, keep it up ,, i also like the variety you are offering that that you are getting into more advanced analysis .. you are one of a very few that offers this kind of content ,,

[@PoojaMukherjee-ci7rd]

Very informative and helpful. Thanks for explaining NPV and other business terms so well.

[@rocketblocks]

Glad it was helpful!

[@assassinator006]

Thanks! Great variant. One suggestion - it will be even more helpful if you could add a difficulty metric/ranking to the case videos...that would help in tracking individual progress, as we solve the case along with the video.

[@rocketblocks]

Glad you like it! Subscribe for more!

[@markbruno8910]

Great video. I would have also explored Economic Value Added (EVA) as a metric for evaluating which process actually adds economic profits (as opposed to accounting profits) to the firm. NPV is great bc it accounts for the risk, but what about ROIC beyond the cost of capital/discount rate?
Just another way to analyze which process to recommend. Great job!

[@rocketblocks]

Thanks Mark, glad you enjoyed!

[@assassinator006]

QQ : Can someone explain how the NPV numbers were arrived at? Per my knowledge, the formula is Future Value = Present Value x {(1+Discount Rate)^time} - Initial investment

[@itswyke]

I don't get it either. He did PV = CF / 20%, when I think it'd make more sense to do CF/(1+20%) assuming he only counts 1 year from now. On top of that, I don't really understand either how it helped gaining a more long-term overview, since he wasn't given any cashflow over 1 year from now?

[@leylabashirli8923]

I do agree with you that his PV calculation was wrong. Actually the profit that he has found is the profit over 1 year from now like forecasted profit.@@itswyke

[@stanvanillo9831]

He assume it runs for perpetuity, then the formula is CF/d@@itswyke

[@abhimanyujain]

Nice complex case.

[@rocketblocks]

Glad you like it! Subscribe for more!

[@mskpir00]

Revenue calculations seem a bit off. 100m was the input. So shouldn't that have been used to calculate the volume in lbs.
Then volume should have been multiplied by sales price to come up with the revenue .
Directly multiplying sales price to input and yield doesn't make sense

[@reemfahim1798]

you need to take into consideration the yield % when you are calculating the revenue ,, so did you account for this

[@itswyke]

100m was the input, and the yield was the percentage if the input that would be converted to output. So with a 100m as input, and a 50% yield, the output would be 50m. This is the volume of goods in lbs, and this is exactly what he did.

[@geonikhil]

Irritated by Eishan's constant beard touching! Lol

[@user-fq9zd6xw6t]

Amazing video! I'm becoming a fan of Yatharth with every video I see him in.
I'm confused as to how Eishan landed on Option C having an NPC of $360M: if the cashflow was $60M, the discount rate 20%, and the initial investment $240M.
(60*5)-240=60
Can somebody help me understand? 🥲

[@rocketblocks]

Thanks!
You can book a 1-on-1 coaching session with Yatharth here: www.rocketblocks.me/contributors/yatharth-sharma.php

[@saule231]

The discount rate was 10% in the option C