PwC Case Interview Prompt
You are consulting for a small, regional maker of high quality, premium priced frozen desserts. Though sales have been increasing, the business is barely making a profit and the management is unsure that they will be able to pay their usual dividend this year.
The client sells a complete line of product (ice cream and frozen yogurt) in major supermarket chains in the Northeast. In recent years, as Americans jump on the fitness bandwagon, frozen yogurt has begun to outsell ice cream, and currently represents 55% of product sold.
The selling price per pint is the same for frozen yogurt and ice cream, but the ingredients are different. Ice cream uses locally available milk and cream, and flavorings such as chocolate, pecans, vanilla and coffee. The premium frozen yogurts use more exotic flavorings such as mangoes, kiwis, pineapple and raspberries. All other costs are equal for the two lines.
They have asked you to help them identify the problem for the low level of profit.
PwC Case Interview Overview
The client in this case is experiencing very low profit margins, and has hired you to help identify the reason for the low profit. Your job is to dig into the profitability in order to determine the root causes of the declining profitability.
In this beginner-level PwC case interview, we recommend using the Profitability Framework to create your structure for approaching the problem. Don’t limit yourself to the basic frameworks only; the best casers blend frameworks and their own business acuity in order to create a custom framework tailored to the case.
Prepping for a PwC case interview? This beginner-level case will help set you up for success. This case has no charts/graphs for you to interpret.
Interview Tips: PwC
What is PwC looking for? Candidates that showcase flexibility and strong problem-solving skills.
Don’t be too rigid in your structuring!
One tip to help set you up for success: after each case you practice with, try to find 1 weakness/area of growth and work on that area.
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