Question: Two large entertainment (specifically music) conglomerates merge. Each own real estate. Total assets worth 900 million dollars. How does one deal with the real estate function within the new firm (integration). The overarching objective is to save money now! Solution: . . C A P T A I N I N T E R … Continue reading Music Magic
Question: One bank used to provide financial service to big industrial companies. Because of recent economic crisis, those big companies are facing troubles to repay their debts. The bank is looking for new customers, e. g. small or medium sized companies. How can the bank determine the credit of those companies to make loan decisions? … Continue reading Bank loans
Question: Your client is the CEO of a consumer finance bank that specializes in at-risk credit lending. In other words, lending to consumers who would have difficulty obtaining loans elsewhere. Several years ago the bank diversified into mass marketing credit cards. This division is losing revenue. Why? (BCG, Winter 1999, for summer associate position) Solution: … Continue reading Consumer Finance
Question: You have been asked by the President of a Midwest bank to see if PC-based or online banking is something that his firm should pursue. His bank is in 3 states and he has #2 market-share. He is skeptical and does not think that he can generate much profit because his competition does not … Continue reading Midwest Bank
Interviewer: Your client is the largest discount retailer in Canada, with 500 stores spread throughout the country. Let©s call it CanadaCo. For several years running, CanadaCo has surpassed the second-largest Canadian retailer (300 stores) in both relative market share and profitability. However, the largest discount retailer in the United States, USCo, has just bought out … Continue reading Canada Co.
Interviewer: Your client is a large consumer goods manufacturer and is concerned about the paper towel business. Profits for the business are okay, but the client wants to increase them. The client has already done some research and following are the three findings: 75% of the business is done when towels are put on promotions. … Continue reading Paper Towel Profits