Could you please share the calculations that Sean is doing in written format? Would be very helpful for someone like me from a non-business background.
Hey, I'm slightly confused on how having customers as a separate bucket is MECE. If we're sizing the market under the first bucket, we're inherently looking at the number of customers we have? Is it perhaps fine to assume that in the first bucket you're trying to quantify the customers and in the second one, you're looking at qualitatively seeing their preferences?
It is a two-step process. 1. Can we earn money in this market environment? (1) the Market at Macro-level (Size and growth) and (2) the Market at Micro-level (Clients, Customers, and Competitors) 2. Then how much? (1) Revenue (Price x Quantity Sold) and (2) Expenses (Direct Material, Direct Labor, Variable Overhead, and Fixed Costs). For the sake of simplicity, the interviewee just mentioned: 1) Market, 2) Competitors, 3) Customers, 4) Company - including profitability framework.
@@dhanashreegadhikar8281 That’s incorrect the change is approximately 5B not 500Mn which is how he came to a conclusion of the change being around 12%. He says 500Mn in the video but this is actually incorrect according to the chart.
@@bshelby2k3 why isn't the change considered from Y1 to Y5 since that's the target? Why doing it between Y4 and Y5? The market is going to increase around 50% in the next 5 years (44B - 29B)/29B
Nice case. Too bad that the preparer chose to focus on employee costs. Labor force availability/shortage is a macro indicator and should not be viewed as a barrier to entry in an industry that doesn’t require niche/expert know-how. It would just impact your salary costs going forward and would result in somewhat lower margins than observed historically.
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I loved the quantitative questions and the succinct answers of the interviewee!
This interviewee broke down the question very gracefully. Great video
Could you please share the calculations that Sean is doing in written format? Would be very helpful for someone like me from a non-business background.
Hi Pooja, this full case and all written solutions can be found on RocketBlocks!
@@rocketblocksyou would have been be better to write the calculations than refer her to your channel. Why didn't you write them and end the story ?❗
@@ANA-db9yn To increase number of visitors on their website haha!
@@ANA-db9yn it's to drive conversion to their product offerings
Can someone explain the calculation at 17:30
He is taking the wage cost increase and dividing it on revenue to find the potential margin loss
Fast Casual
50k/2,5m = 2%
Client
135k/1,4m = 3%
Hey, I'm slightly confused on how having customers as a separate bucket is MECE. If we're sizing the market under the first bucket, we're inherently looking at the number of customers we have? Is it perhaps fine to assume that in the first bucket you're trying to quantify the customers and in the second one, you're looking at qualitatively seeing their preferences?
It is a two-step process.
1. Can we earn money in this market environment? (1) the Market at Macro-level (Size and growth) and (2) the Market at Micro-level (Clients, Customers, and Competitors)
2. Then how much? (1) Revenue (Price x Quantity Sold) and (2) Expenses (Direct Material, Direct Labor, Variable Overhead, and Fixed Costs).
For the sake of simplicity, the interviewee just mentioned: 1) Market, 2) Competitors, 3) Customers, 4) Company - including profitability framework.
I am confused on how he did the calculation for the graph at around 7:30?
It is approximate calculation!difference between year 4 and year 5 divided by year 4(approximately)
500Mn/40Bn
Should be 5bn over 40bn though, he was incorrect there @@dhanashreegadhikar8281
@@dhanashreegadhikar8281 That’s incorrect the change is approximately 5B not 500Mn which is how he came to a conclusion of the change being around 12%. He says 500Mn in the video but this is actually incorrect according to the chart.
@@bshelby2k3 why isn't the change considered from Y1 to Y5 since that's the target? Why doing it between Y4 and Y5? The market is going to increase around 50% in the next 5 years (44B - 29B)/29B
@@SuperFerro1990 I have the same question as you
this is really really helpful! Looking forward to more mock interviews videos ❤
Thanks! We release mock interview every other week so hit that subscribe button to get notified when the neck mock goes live!
When he asks to take a minute to think, how long do you give him?
I didn't get the calculation he done at 10.35 minutes
He is finding the EBITDA margin for fast casual and the client. The formula is EBITDA/Revenue.
Fast Casual
845/4102 = 21%
Client
832/6993 = 12%
I am a risign senior and i was wondering if this is MBA level or this would also be for associate level?
Hi! Is this an example of an interviewer-led type of interview?
Super helpful!
Glad it was helpful!
is this for an undergraduate level hire or MBA/ lateral hire?
I had the same question
Good job
Kudos to Chris and Sean on this one!
Nice case. Too bad that the preparer chose to focus on employee costs. Labor force availability/shortage is a macro indicator and should not be viewed as a barrier to entry in an industry that doesn’t require niche/expert know-how. It would just impact your salary costs going forward and would result in somewhat lower margins than observed historically.
500million divided by 40b = 1.25% not 12%
What?
😎