Your client manufactures castors (the wheels found on the bottom of office chairs) out of a plant in Western Germany and one in Eastern Germany.
Over the past two years the company’s profits have declined by 20% while revenues have been relatively flat.
What is happening? Suggest a course of action to reverse these trends.
Your client is encountering a startling decrease in profits even though their revenue haven’t changed drastically. They have called you in to help them determine what is draining their well and turn the situation around. In this LEK sample case interview, it’s your job to dig into profitability, find the cause of the problem and give your client real world solutions that can reverse the trends.
Preparing for a first round LEK interview? It’s a good idea to use the Profitability Framework to solve this case study, we highly recommend creating a customized framework for this sample case interview. The most sought after candidates blend frameworks with their own business acumen to create a solution specific to the case at hand.
This case has no math exhibits. This is an beginner level case with a qualitative difficulty of 1 out of 4 you would most likely see it in an LEK first round interview.
LEK Interview Tips
LEK is looking for strategic thinkers in their candidates. It isn’t just about solving the problem, it’s about having a well-defined strategy you can clearly communicate.
In this case study, make it a point to find one or two opportunities for growth.
For out-loud practice with an expert, book an hour with an ex-MBB coach.
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