Conglomerate ROIC Increase

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Prompt

Your client is a $5B conglomerate with 50 plants nationwide. They were formed by acquisition of various small firms over the last 10 years and there are still some integration issues.

There are firms in the industry that have 20-30% ROIC.

The CEO would like to increase the Return On Invested Capital (ROIC) of the firm from 10% to 20% in 3 years.

How would you achieve this?

Overview

A large conglomerate wants to increase the ROIC of the firm in the next 3 years. You’ve been brought in to advise the company on how to achieve this.

While you can use the Profitability Framework to solve the case, the best casers know how to move beyond the basic frameworks and come up with a custom framework based on their business experience and knowledge of the frameworks.

With a qualitative difficulty level of 2 out of 4, this McKinsey case study will set you up for success in your second round interview. The case has no math exhibits.

Interview Tips: McKinsey

McKinsey looks for problem-solving abilities and clear communication in its candidates.

Make sure to brush up on your communication/presentation skills.

In the case, focus on 2 things:

• Coming away with 1 key takeaway or area you can improve
• Timing yourself (2min for building your structure, 2min for presenting it, 5min for math, 2min for brainstorming, 2min for conclusion)

Book an hour with an ex-MBB coach if you need extra assistance in your McKinsey interview prep.

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