European Manufacturing Company

Mercer Case Study Prompt

The client is a $1B European company with 10 manufacturing sites throughout Europe. One of its measures of performance is “return on net assets”, and right now the company would like to increase this measure from 17% to 22%.

Its various products include thermostats, room controls, switches for microcomputers, and other piece parts for assembly.

The channels that the company uses are the following:

• Wholesalers (i.e., local mom and pops for do-it-yourself home projects)
• Outlets (who sell to contractors)
• Construction companies (used mostly for hotels and restaurants)
• OEM’s (including switches)
• Manufacturing companies (used for control processes, refineries)

How should the client increase its “return on net asset” by 5%, from 17% to 22%?

Case Overview

In this Mercer case study, the client is a massive European products company looking to increase its profitability. Your job is to dig into the profitability, collect any data you need, and ultimately, give the client your recommendation on next steps to take.

We recommend that you use the Profitability Framework to help solve the Mercer case study. However, the best casers blend frameworks and their own business understanding to create a custom framework.

This case does not have any charts or graphs to interpret. Prepping for a first round interview with Mercer? This is a similar case to what you can expect for your interview.

Mercer Interview Tips

Mercer is looking for candidates who have solid presentation and interpersonal skills. Practice clear communication and conveying confidence throughout the case.

In this Mercer case study, focus on coming away with 1 or 2 areas that you can improve upon.

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