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Did sales really grow? A retailer in Argentina
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
1. Read the prompt aloud
Read it slowly, then pause. Let the candidate ask questions before they structure.
A fictional clothing retailer in Argentina reports that its peso sales rose 30 percent in 2025 and asks whether that was a good year. The IMF puts Argentina's average consumer price inflation for 2025 at 41.9 percent. Was it a good year in real terms?
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.
- Real growth = (1 + nominal growth) / (1 + inflation) minus 1
- Nominal growth: 30 percent (the client's number)
- Inflation: 41.9 percent (IMF, 2025 average)
- Key: Real growth, exact formula
- Compare with the shortcut, and with the market
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: Real growth, exact formula
What a strong candidate does: 1.30 divided by 1.419, minus 1.
Real sales growth (percent): (1.3 ÷ 1.419 - 1) × 100 = -8.39
Step 2: The shortcut
What a strong candidate does: Nominal growth minus inflation. With inflation this high it overstates the fall.
Shortcut estimate (percent): 30 - 41.9 = -11.9
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
No. Sales rose 30 percent in pesos, but prices rose about 41.9 percent on average, so in real terms the retailer sold about 8.4 percent less than a year earlier. It lost ground. The next step is to compare it with the market: if clothing volumes across Argentina fell more, it may still have gained share. With inflation this high, always use the exact formula; the shortcut says minus 11.9 percent, which is more than 3 points off.
Risks a strong answer names: The IMF figure is an average for all consumer prices; clothing prices may have risen faster or slower than the average.; The 30 percent is fictional; a real case would give the client's own number..
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?
Total
0 out of 25
Score all five criteria to see the band and the feedback template.