Profitability consulting case interview: sports bar (w/ Bain & BCG Consultant)

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  • Опубликовано: 30 сен 2024

Комментарии • 14

  • @morganstup8613
    @morganstup8613 Год назад +2

    Great case, she killed it! Wahoowa

  • @matthewqiu8100
    @matthewqiu8100 Год назад +1

    If the payback period is 5 years, why is the 5-year ROI not 0%? since there is no profit or loss at the 5 year mark due to the breakeven situation.

  • @boomerangjack5806
    @boomerangjack5806 Год назад +2

    bravo on the case. Is there a way I could practice on the case without someone, basically just by myself?

    • @rocketblocks
      @rocketblocks  Год назад

      Yep, we've got that functionality available on RocketBlocks: www.rocketblocks.me (there is a free trial where you can check it out. It's called Case Mode)

  • @naveenagovindasamy1332
    @naveenagovindasamy1332 26 дней назад

    how do you calculate the COGS... can anyone share? I dont understand how she got 88 for food @rocketblocks

    • @masoudboroumandi
      @masoudboroumandi 25 дней назад

      Gross Margin= [Revenue−Cost of Goods Sold (COGS)]/Revenue = 1 − COGS/Revenue
      So, when the gross margin is 12% then the COGS is 88% of the revenue.
      Hope it helps.

    • @naveenagovindasamy1332
      @naveenagovindasamy1332 25 дней назад

      @@masoudboroumandi thank you so much. How about the break even part? i coudnt get that part right

    • @masoudboroumandi
      @masoudboroumandi 25 дней назад

      The upfront investment is 500K and the annual profit was calculated about 100K.
      So if you divide the upfront investment to the annual profit the time to break even is 5 years.

  • @jingjiezhou
    @jingjiezhou Год назад

    The interviewer's note has already mentioned the ROI calculation error.

  • @shubhdey553
    @shubhdey553 Год назад

    the roi is wrong - annual profit (500K) *5 year period - Upfront cost (500K) / upfront cost = 0

    • @TanmayGaware-jk5rb
      @TanmayGaware-jk5rb 5 месяцев назад

      The ROI is correct: Profit/ Investment multiply by 100 multiple by 5/100. The 100 is actually the percentage so that's why we will only write 100 and secondly, its 5 years so we will multiply by 5 and divide it by 100. 100 is kinda of lifetime. Its similar technique in identifying number of people aged less than 5 in India so it would be 5/ 70 multiple by 1.4B. The 70 is lifetime of the people

  • @BrianK683
    @BrianK683 Год назад

    This was very well done. Thank you

  • @Gabriel-uq1wn
    @Gabriel-uq1wn 5 месяцев назад

    How is this a bad investment?Why is the 5 year ROI important? Considering a 100k annual profit, doesn’t this investment have an annual ROE of 20%? This seems a good investment. Can someone help me?

    • @TanmayGaware-jk5rb
      @TanmayGaware-jk5rb 5 месяцев назад

      The annual profit is 100K, investment cost is 500k, & we had 3 questions- profitable, payback & ROI. Investment is profitable but we have ignored some important costs as mentioned by interviewer & interviewee, payback is less than 5 years which makes it good investment but ROI shows that investment is danger as ROI= Profit/ Investment multiply by 100 multiple by 5/100. The 100 is actually the percentage (ROI always comes in percentage) so that's why we will only write 100 and secondly, its 5 years so we will multiply by 5 and divide it by 100. 100 is kinda of lifetime. Its similar technique in identifying number of people aged less than 5 in India so it would be 5/ 70 multiple by 1.4B. The 70 is lifetime of the people