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Overview

Overview. These cases are taken from actual McKinsey interviews. Some are just a question, while others have background data and explanations of the interviewee’s experience in the interview. PowerPoints (in this deck) Case 1 – Semi Trucks (2) Case 2 – Airline Alliance (3)

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Overview

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  1. Overview These cases are taken from actual McKinsey interviews. Some are just a question, while others have background data and explanations of the interviewee’s experience in the interview. PowerPoints (in this deck) Case 1 – Semi Trucks (2) Case 2 – Airline Alliance (3) Case 3 – Heart Stint (4) Word Docs (link to full case) Case 4 – Magna Health Case 5 – Great Burger

  2. Case Question Case 1 • Discussed starting up a new line of Semi-trucks. The manufacturer had produced a new model truck that was x% more fuel efficient, lasted longer, and was better across the board. • What would a customer think about if they were trying to decide whether to convert to the new model? • Calculate what the incremental savings after 1 year with the new truck based on initial cost savings, incremental fuel savings, etc. • The interviewer then showed a graph showing that there was still a demand for the old trucks, and asked why wouldn’t someone purchase the new truck?

  3. Case Question Case 2 • There is a small airline somewhere in Europe that does mostly short-haul flights. They are considering joining an alliance with some of the other airlines in Europe. • “What would be the advantages and disadvantages of such an alliance?” • The remaining questions were all number questions asking the candidate to calculate different things. According to the candidate, they weren’t very nice numbers.

  4. McKinsey Case Medical devices Case 3

  5. Background • Your client is in the medical devices industry. They have developed a new heart stint that they believe will replace the current stint. They want to launch the stint in Europe, then 6 months later in the United States. They expect that they are one year ahead of any possible competition or substitution products. The client would like to know how they should price the stint in Europe.

  6. Part 1 • To begin, tell me some of the inputs that would go into this pricing decision.

  7. Part 2 • The costs of the procedure are broken up into the following three areas: • -Hospital Costs (doctors, nurses, equipment, etc.) • -Device cost (what they pay our client) • -Follow-up treatment

  8. Data • Old procedure • Hospital costs - $13,000 • Device costs - $7,500 • New procedure • Hospital costs - $11,000 • Device costs - $3,200

  9. Part 3 • Now that you know what the “fair price” would be, do you think our client could charge more or less than that and why?

  10. Example recommendation(Simplified) • Higher because the new stint requires less follow up surgery which makes patients happy and willing to pay more for the stint. Also, the lack of complications after surgery would give the hospitals a better reputation, thus making them more willing to buy the more expensive stint (since they’re the ones who buy it from us after all, not the patients!).

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