Case Study Prompt
The client, Big Truck Co., is a large, US based manufacturer of heavy-duty trucks, also known as semi-trucks. The company has revenue of $30 billion and sells to international markets. They make two types of vehicles, semi-trucks designed for pulling trailers and trucks or chassis used for cement trucks, waste haulers, etc.
The company has three marquees (brands), all of which manufacturer both types of vehicles. The three brands are the result of acquisitions done in the past five years.
The company is profitable, but margins have been declining slightly over the last few years. Additionally, the market is forecasting a significant market decline in the next few years, which brings great concern to the management of the company.
The CEO has hired McKinsey to help the company better understand their position and to look for solutions for the coming years.
How would you structure the problem for the CEO?
Case Study Overview
In this McKinsey case study, your client is a large manufacturer of trucks and trailers who has been experiencing declining profitability and is expecting a larger market decline. The future is looking bleak. The CEO has called you in to identify what is contributing to the declining profits and bring a game plan for weathering the coming storm. It’s your job to get to know all you can about the market and your client and develop a sound strategy.
You can use the Profitability Framework to solve this case study, but because of the complex nature of the case, you will want to build your own structure. The top interview candidates build a custom framework using a blend of frameworks and their business acumen.
This case has three math questions. The qualitative difficulty is 4 out of 4, making this a case study you could expect to see in a final round McKinsey interview.
McKinsey Interview Pointers
What does McKinsey look for in its case interview candidates? The ability to problem-solve and clearly communicate your process and recommendations.
In this case, make sure you focus on your communication and polish as you present your structure.
For out-loud practice with an expert, book an hour with an ex-MBB coach.
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