The authorities of the Mexico City airport have decided to issue 2,500 new taxi permits for $1,000 each. These permits authorize a taxi to service arriving passengers.
Your client has a taxi fleet in the city but does not service the airport. He has excess capacity (meaning he has cars and drivers available).
He has asked you to determine if he should buy those new permits. If so, how many should he buy?
Build a framework for solving this case.
Case Study Overview
Have an upcoming McKinsey interview you are preparing for? This interviewer led case is a good practice case for that.
Your client in the case is a taxi company in Mexico City, MX. A new avenue for business has recently opened up to the client, and you have been tasked to identify if the opportunity is one the client should pursue.
You can start with the Profitability Framework as you lay out a structure for the case, but don’t restrict yourself to the basic case frameworks. The best case interview candidates blend their own business acuity and knowledge of the frameworks to build a custom structure tailored to the needs of each case study.
The interviewer led case has no math diagrams. The qualitative difficulty score is 3/4, making it a case you would expect in a final round at McKinsey.
McKinsey Interview Tips
McKinsey is looking for candidates that are structured to the nth degree.
In the case, focus on maintaining structure in each section of the case, start to finish.
To get the most out of this interviewer led case, do these 2 things:
- Prioritize your communication (are you clear and concise?)
- Time yourself as you walk through the case (recommended times listed on the Guidance pages)
Schedule an hour of out-loud case practice with an ex-MBB coach.
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