Steam Boiler

Case Prompt

McKinsey was asked by a diversified manufacturing client to help turn around the steam boiler hose division. This boiler hose division provides boiler hoses for both external customers and the client’s boiler division. Background information on the client and industry includes:

• Boiler hoses are sold both with original equipment and as replacements.
• There has been increasing price pressure in the industry.
• The client is third of eight industry participants.

How would you structure an analysis aimed at restoring profitability? Where do you expect to be able to save costs?

Case Overview

Start your case study practice with this McKinsey case. The client in the case is a manufacturer that is facing price pressure in the industry. Your job here is to create a strategy to improve profitability for the company.

The Market Study Framework may be a good place to start with your structure for the case. However, don’t limit yourself to the basic case frameworks. Use your business understanding and case experience to create a custom structure for the business problem inside the case.

The case contains 1 math diagram to interpret. The case is similar to a case you can expect inside a first round interview at McKinsey.

McKinsey Interview Tips

McKinsey is looking for candidates that can showcase the ability to problem-solve and clearly communicate your process and recommendations.

Ensure that you clearly verbalize your process in each part of the case. This is critically important in a virtual interview environment.

For the best case study practice, do a quick self-assessment of your performance in the case. Identify 1 or 2 weak areas that you want to focus on in your practice moving forward.

For out-loud case study practice, book time with an ex-MBB coach today.