Interviewer view · keep this screen to yourself

One handbag: own store or department store?

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.

An illustrative luxury handbag sells for EUR 2,000 (before sales tax) and costs EUR 500 to make. In the brand's own store, store costs (rent, staff, energy) are 30 percent of sales. Through wholesale, the brand sells to a department store at 45 percent of the retail price and spends 5 percent of its wholesale price on selling costs. What does the brand earn per bag in each channel?

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.

Contribution per bag by channel
- Own store: retail price minus product cost minus store costs
- Wholesale: wholesale price minus product cost minus selling costs

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: Own store
What a strong candidate does: EUR 2,000 minus 500 minus 30 percent of 2,000.
Own-store contribution per bag (EUR): 2,000 - 500 - 2,000 × 0.3 = 900
Step 2: Wholesale price
What a strong candidate does: 45 percent of EUR 2,000.
Wholesale price (EUR): 2,000 × 0.45 = 900
Step 3: Wholesale contribution
What a strong candidate does: EUR 900 minus 500 minus 5 percent of 900.
Wholesale contribution per bag (EUR): 900 - 500 - 900 × 0.05 = 355
Step 4: Ratio
What a strong candidate does: Own store compared with wholesale.
Own store to wholesale ratio: 900 ÷ 355 = 2.54

The recommendation to listen for

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

The brand should sell through its own stores where demand is strong, because it earns about EUR 900 per bag there against EUR 355 through wholesale, about 2.5 times more. First, own stores keep the full EUR 2,000 price, while wholesale sells at EUR 900. Second, own stores carry fixed rent and staff whether bags sell or not, which means wholesale is a cheaper way to test new cities. The risk is opening stores where demand is too weak to cover those costs. As a next step, test new cities through department stores and open own stores where sales prove strong.

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.