Interviewer view · keep this screen to yourself

Which channel really makes the money?

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

Exhibit 1 shows revenue by channel for a fashion brand in Europe (EUR millions): stores 300, online 150, wholesale 50. Exhibit 2 shows operating margin by channel: stores 12 percent, online 4 percent, wholesale 20 percent. The CEO wants to put all new investment into online. What do the exhibits say?

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

Profit by channel = revenue x margin
- Profit per channel
- Online share of revenue versus share of profit

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Stores profit
What a strong candidate does: 300 times 12 percent.
Stores profit (EUR millions): 300 × 0.12 = 36
Step 2: Online profit
What a strong candidate does: 150 times 4 percent.
Online profit (EUR millions): 150 × 0.04 = 6
Step 3: Wholesale profit
What a strong candidate does: 50 times 20 percent.
Wholesale profit (EUR millions): 50 × 0.2 = 10
Step 4: Total profit
What a strong candidate does: Add the three.
Total profit (EUR millions): 36 + 6 + 10 = 52
Step 5: Online share of revenue
What a strong candidate does: 150 out of 500.
Online share of revenue (percent): 150 ÷ 500 × 100 = 30
Step 6: Online share of profit
What a strong candidate does: 6 out of 52.
Online share of profit (percent): 6 ÷ 52 × 100 = 11.54

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

I recommend that the CEO not put all new investment into online yet, because online is 30 percent of revenue but only about 12 percent of profit. First, its 4 percent margin earns EUR 6 million, against EUR 36 million from stores and EUR 10 million from wholesale. Second, this means growing online adds little profit until its margin is fixed, while wholesale earns 20 percent. The risk is that delivery and returns costs make many online orders unprofitable. As a next step, get the cost per online order, split into delivery, returns and marketing.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.