2008 Case Interview Guide for Ross
Consulting Club (MGT 301)
,Table of contents:
Case 1: Film Production, Bain&Company ...................................................................
2 Difficulty: medium
Case 2: Office Vendin Services, Bain&Company .............................................................. 6
Difficulty: hard
Case 3: Retail Brokerage, McKinsey&Company .............................................................
14 Difficulty: hard
Case 4: Slot City, Bain&Company .........................................................................................
18 Difficulty: medium
Case 5: PlastiCo, The Boston Consulting Group .............................................................
21 Difficulty: medium
Case 6: Small Drug Manufacturer, Bain&Company ......................................................
24 Difficulty: medium
Case 7: Fast Food Chain, The Boston Consulting Group ............................................
29 Difficulty: medium
Case 8: Apache Helicopters, Bain&Company ..................................................................
31
Difficulty: hard
Case 9: Electronic Warehouse, McKinsey&Company ..................................................
34 Difficulty: medium
Case 10: Grocery Chain, McKinsey&Company................................................................
36 Difficulty: medium
Case 11:Paper Company,Accenture ....................................................................................
39 Difficulty: medium
Case 12: Pharma Acquisition, McKinsey&Company ....................................................
42 Difficulty: medium
Case 13: National Magazine, The Boston Consulting Grou .......................................
44 Difficulty: easy
Case 14: Wind Turbines, Booz&Company ........................................................................
46 Difficulty: hard
Case 15:Engine Manufacturer, Accenture ........................................................................
50 Difficulty: medium
Case 16: Tax Preparer, Diamond Management Consultants ....................................
52 Difficulty: medium
,Case 17: State Socila Services, Bain&Company ..............................................................
54 Difficulty: medium
Case 18: Mutual Fund, McKinsey&Company ...................................................................
57
Difficulty: medium
Case 19: Acquisition Diagnostics,Siemens Management Consulting ....................
59
Difficulty: medium
Case 20:Casino Game, Accenture .........................................................................................
61
Difficulty: easy
(Source: Interview case from Bain&Company, Round 1)
Context:
The client is a large film production studio, FilmCo, which develops and distributes full-length feature
films for the U.S. and international markets.
FilmCo is planning on releasing its big budget film of the year nine months from now and is
considering a new release strategy. The first component of the strategy is to release the movie in
heaters on the same day around the world. The second component of the strategy is to release the
DVD of the movie day-and-date (meaning releasing the DVD the same day as the theater release).
FilmCo is interested in knowing whether this is the best release strategy for this movie and, if not,
FilmCo would then like to know what its release strategy should be.
The main question to answer is if the new strategy FilmCo is considering is better than the usual release
strategy in the movie industry.
To assess this we need to see which of the releases brings more profits to FilmCo.
a. Regular Strategy: We need to estimate the revenues that could be generated and costs involved
with this type of release ( which is from my knowledge: theater release in the US followed by
theater release internationally, DVD release internationally). In order to estimate the expected
revenues, I would look at similar type of movies and their economics
b. New strategy: I would start by checking if this strategy was ever used and the results it brought.
Then I would estimate the changes in revenues, costs of this strategy versus the regular one.
Finally, I believe we need to check if there are any regulation regarding international theater
release and how these regulations will affect our new strategy
It comes down to deciding between two options on two dimensions:
- Releasing the DVD together with the movie or separately
- Releasing the movie in the same day globally or in first in the US and then around the world
Information provided upon request:
FilmCo has done a simultaneous global theater release, but never simultaneous with the DVD release.
, Only one movie has ever been simultaneously released theatrically and through DVD, and it was by a
small, independent film company.
The film is the third movie of an action series. The previous two films were produced by another
studio, so we have no financial data on them.
The simultaneous theatrical and DVD release is expected to cause a 20% decrease in revenue from
theater ticket sales and a 25% increase in DVD sales.
The marketing campaign for the movie is expected to be $50M, while the marketing campaign for the
DVD is expected to be $5M. With the simultaneous release, no DVD marketing campaign is required.
Pirating movies accounts for a 20% loss in total theater revenue. A simultaneous global theater
release will cut this down by 25%.
Consulting Club (MGT 301)
,Table of contents:
Case 1: Film Production, Bain&Company ...................................................................
2 Difficulty: medium
Case 2: Office Vendin Services, Bain&Company .............................................................. 6
Difficulty: hard
Case 3: Retail Brokerage, McKinsey&Company .............................................................
14 Difficulty: hard
Case 4: Slot City, Bain&Company .........................................................................................
18 Difficulty: medium
Case 5: PlastiCo, The Boston Consulting Group .............................................................
21 Difficulty: medium
Case 6: Small Drug Manufacturer, Bain&Company ......................................................
24 Difficulty: medium
Case 7: Fast Food Chain, The Boston Consulting Group ............................................
29 Difficulty: medium
Case 8: Apache Helicopters, Bain&Company ..................................................................
31
Difficulty: hard
Case 9: Electronic Warehouse, McKinsey&Company ..................................................
34 Difficulty: medium
Case 10: Grocery Chain, McKinsey&Company................................................................
36 Difficulty: medium
Case 11:Paper Company,Accenture ....................................................................................
39 Difficulty: medium
Case 12: Pharma Acquisition, McKinsey&Company ....................................................
42 Difficulty: medium
Case 13: National Magazine, The Boston Consulting Grou .......................................
44 Difficulty: easy
Case 14: Wind Turbines, Booz&Company ........................................................................
46 Difficulty: hard
Case 15:Engine Manufacturer, Accenture ........................................................................
50 Difficulty: medium
Case 16: Tax Preparer, Diamond Management Consultants ....................................
52 Difficulty: medium
,Case 17: State Socila Services, Bain&Company ..............................................................
54 Difficulty: medium
Case 18: Mutual Fund, McKinsey&Company ...................................................................
57
Difficulty: medium
Case 19: Acquisition Diagnostics,Siemens Management Consulting ....................
59
Difficulty: medium
Case 20:Casino Game, Accenture .........................................................................................
61
Difficulty: easy
(Source: Interview case from Bain&Company, Round 1)
Context:
The client is a large film production studio, FilmCo, which develops and distributes full-length feature
films for the U.S. and international markets.
FilmCo is planning on releasing its big budget film of the year nine months from now and is
considering a new release strategy. The first component of the strategy is to release the movie in
heaters on the same day around the world. The second component of the strategy is to release the
DVD of the movie day-and-date (meaning releasing the DVD the same day as the theater release).
FilmCo is interested in knowing whether this is the best release strategy for this movie and, if not,
FilmCo would then like to know what its release strategy should be.
The main question to answer is if the new strategy FilmCo is considering is better than the usual release
strategy in the movie industry.
To assess this we need to see which of the releases brings more profits to FilmCo.
a. Regular Strategy: We need to estimate the revenues that could be generated and costs involved
with this type of release ( which is from my knowledge: theater release in the US followed by
theater release internationally, DVD release internationally). In order to estimate the expected
revenues, I would look at similar type of movies and their economics
b. New strategy: I would start by checking if this strategy was ever used and the results it brought.
Then I would estimate the changes in revenues, costs of this strategy versus the regular one.
Finally, I believe we need to check if there are any regulation regarding international theater
release and how these regulations will affect our new strategy
It comes down to deciding between two options on two dimensions:
- Releasing the DVD together with the movie or separately
- Releasing the movie in the same day globally or in first in the US and then around the world
Information provided upon request:
FilmCo has done a simultaneous global theater release, but never simultaneous with the DVD release.
, Only one movie has ever been simultaneously released theatrically and through DVD, and it was by a
small, independent film company.
The film is the third movie of an action series. The previous two films were produced by another
studio, so we have no financial data on them.
The simultaneous theatrical and DVD release is expected to cause a 20% decrease in revenue from
theater ticket sales and a 25% increase in DVD sales.
The marketing campaign for the movie is expected to be $50M, while the marketing campaign for the
DVD is expected to be $5M. With the simultaneous release, no DVD marketing campaign is required.
Pirating movies accounts for a 20% loss in total theater revenue. A simultaneous global theater
release will cut this down by 25%.
