Interviewer view · keep this screen to yourself

Is a 3 percent margin good?

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.

Client A is a grocery chain in Poland with revenue of PLN 8,000 million and operating profit of PLN 240 million. Client B is a software company with the same operating margin. Using the benchmark table above, is each margin good? Then, using the sales-to-capital figures (grocery 4.65, software 1.54, general utility 0.3), how much capital would each of these three kinds of business need to add PLN 1,000 million of yearly sales?

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.

Compare with the right industry, then check capital needs
- Client margin versus industry benchmark
- Capital needed = new sales / sales per unit of capital

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: Grocer margin
What a strong candidate does: Operating profit divided by revenue.
Grocer operating margin (percent): 240 ÷ 8,000 × 100 = 3
Step 2: Grocer versus benchmark
What a strong candidate does: Compare with about 2.3 percent for US grocery retail.
Grocer margin above benchmark (points): 3 - 2.3 = 0.7
Step 3: Software versus benchmark
What a strong candidate does: Compare 3 percent with about 33 percent for US software.
Software margin as a share of benchmark (fraction): 3 ÷ 33 = 0.09091
Step 4: Capital for the grocer
What a strong candidate does: PLN 1,000 million of sales divided by 4.65.
Capital needed, grocery (PLN millions): 1,000 ÷ 4.65 = 215
Step 5: Capital for software
What a strong candidate does: Divided by 1.54.
Capital needed, software (PLN millions): 1,000 ÷ 1.54 = 649
Step 6: Capital for a utility
What a strong candidate does: Divided by 0.3.
Capital needed, utility (PLN millions): 1,000 ÷ 0.3 = 3,333

The recommendation to listen for

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

I would treat the grocer's 3 percent margin as healthy and the software company's 3 percent as a problem to diagnose, because each must be judged against its own industry. First, the grocer beats the grocery benchmark of about 2.3 percent by 0.7 points. Second, the software company earns less than a tenth of the 33 percent software benchmark. Third, growth needs very different capital: about PLN 215 million for the grocer, PLN 649 million for software and PLN 3,333 million for a utility, per PLN 1,000 million of new sales. The risk is that a US benchmark misleads for Poland, so as a next step, find a Polish grocery benchmark.

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.