Big 3 Auto

Case Prompt

Our client is one of the big 3 automobile manufacturers in United States. 

Its international division which is responsible for selling to Europe, is losing money. In 2020, their loss was $1.1B. Revenues have declined for the last 3 years. Revenues were $5.5B in 2017, and $4B in 2020. Average price of a vehicle has declined from $25K (in 2010) to $20K (in 2013). Quantity sold has also declined from 220K (in 2017) to 200K (2020). There’s no material change at the cost side.

Revenues have declined for the last 3 years from $5.5B in 2017 to $4B in 2020. Average price of a vehicle has declined from $25K (in 2017) to $20K (in 2020). Selling to dealers. Our cars are mostly preferred by a niche segment who likes big and high-end cars. Our segment is comparably small, but it was profitable. Demand is still strong for our cars and we have a loyal customer base.

They want to learn the reasons for this loss and what they need to do to turnaround the division.

Overview

In this Booz Hamilton case study, your client needs your help. It is facing steadily declining profits over the last three years. They need to find the hole and plug it – fast. It is your job to do the research to find the source of the problem and give them a strategy for turning the situation around.

The Profitability Framework can be used to solve this case, but the best candidates use a blend of frameworks and their own business experience to create a custom framework for the problem at hand.

There are no math exhibits in this case. This a beginner level case interview you could expect to see in a first round at Booz Allen Hamilton. The case has a qualitative difficulty score of 2 out of 4.

Booz Allen Hamilton Interview Tips

What does BAH look for in its case interview candidates? Outstanding presentation and interpersonal skills.

This firm puts more emphasis on personality, communication and team dynamics, so make sure those are points of emphasis as you walk through the case study.

To get the most from this case:

• Focus on coming away with 1 or 2 takeaways that you can improve on in your next case.
• Time yourself as you go through the case: 4min for creating and presenting your structure, 2min for brainstorming, and 2min for a recommendation.

For out-loud practice with an expert, book an hour with an ex-MBB coach.