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Synergies behind plan after a Gulf logistics merger
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.
Two logistics companies in the UAE merged a year ago. The integration office reports that year-one cost synergies are behind plan. What should it do?
Format note: Candidate-led: you ask for the tracking data and drive; the interviewer answers what you ask.
2. Answers to clarifying questions
Give these answers only if the candidate asks. If they ask something not listed, give a sensible answer or say it does not matter here.
If asked: What synergies were promised, and on what timeline?
Answer: AED 120 million a year of cost synergies by year three; AED 40 million planned for year one.
If asked: How are synergies split by workstream?
Answer: Procurement, network (merging warehouses), and overhead and IT.
If asked: What about one-time costs?
Answer: Budget AED 60 million for year one; AED 70 million spent.
3. The hypothesis a strong candidate states
Listen for an early, testable guess like this one. It does not need to match word for word.
Behind-plan synergies usually come from one or two slow workstreams. My hypothesis is that merging warehouses, which depends on contracts and physical moves, is the one lagging.
4. 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.
- Synergy gap by workstream, then the fixThis comes from synergy gap = planned savings minus delivered savings, added up by workstream.
- Total gap versus plan
- Key: Gap by workstream
- One-time costs versus budget
- Actions, owners, and dates
5. 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: Total gap
What a strong candidate does: Candidate: "What was delivered?" Interviewer: "AED 30 million against AED 40 million planned."
Year-one gap (AED m): 40 - 30 = 10
Step 2: Share of plan delivered
What a strong candidate does: Delivered divided by plan.
Share of plan (%): 30 ÷ 40 × 100 = 75
Step 3: Shortfalls by workstream
What a strong candidate does: Interviewer: "Procurement delivered 22 against 20; network delivered 2 against 10; overhead and IT delivered 6 against 10." Candidate: "Before procurement's gain of 2, the shortfalls add up to:"
Total shortfalls (AED m): (10 - 2) + (10 - 6) = 12
Step 4: Network share of the shortfalls
What a strong candidate does: Network explains two thirds of the shortfalls.
Network share (%): (10 - 2) ÷ ((10 - 2) + (10 - 6)) × 100 = 66.67
Step 5: Overhead and IT delivery
What a strong candidate does: Overhead and IT delivered only this share of its plan, AED 4 million short.
Overhead and IT, share of plan (%): 6 ÷ 10 × 100 = 60
Step 6: One-time cost overrun
What a strong candidate does: Spent versus budget.
Overrun (AED m): 70 - 60 = 10
Step 7: Cost to achieve so far
What a strong candidate does: One-time cost per AED of yearly synergy delivered.
One-time cost per AED of synergy: 70 ÷ 30 = 2.33
Step 8: Why is network late?
What a strong candidate does: Candidate: "What is holding up the warehouse merges?" Interviewer: "Two large customer contracts require service from specific sites until next year, and staff moves were delayed." Candidate: "Then the fix is contracts and a re-sequenced plan, not more effort everywhere."
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
The integration office should focus on the network workstream. First, synergies are at 75 percent of plan, AED 30 million against 40. Of the AED 12 million of shortfalls, network explains 8 (two thirds) and overhead and IT 4, having delivered only 60 percent of plan; procurement's AED 2 million ahead of plan offsets part. Second, the cause is specific: customer contracts tied to particular warehouses and delayed staff moves, so the fix is renegotiating those contracts and re-sequencing closures, starting with sites not tied to them. Third, one-time costs are AED 10 million over budget, so tighten approval of integration spending. Keep procurement moving, since it is ahead of plan, give each network initiative a named owner and date, make the chief information officer the owner of a plan to close the AED 4 million overhead and IT gap (system merge dates and moves to shared services), and report weekly to the leadership team.
Risks a strong answer names: Customers may resist contract changes; Staff uncertainty may cause key people to leave; Delays may push some synergies past year three.
Next steps: Open talks with the two customers on moving service sites; Re-plan warehouse closures by site, with owners and dates; Agree a dated plan with the chief information officer for the overhead and IT workstream; Put retention agreements in place for key operations managers.
Strong versus weak
A strong answer
Found which workstream caused the gap, asked why, and proposed specific fixes with owners, while controlling one-time costs and retaining people.
A weak answer
Told every workstream to "work harder" without finding where the gap came from.
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.