Interviewer view · keep this screen to yourself

What a three-month delay costs

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.

FlexiPack (fictional), a flexible packaging maker in India, uses 100,000 tonnes of resin a year. The resin price rises by USD 200 a tonne. Its contracts pass the change on to customers, but only after three months. How much margin does it lose before prices catch up, and what share of its yearly EBITDA of USD 40 million is that? All figures are illustrative.

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.

Margin lost = tonnes used during the delay x cost increase per tonne
- Tonnes used in three months = yearly tonnes x 3 / 12

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: Tonnes used during the delay
What a strong candidate does: A quarter of the year.
Resin used in three months (tonnes): 100,000 × 3 ÷ 12 = 25,000
Step 2: Margin lost
What a strong candidate does: 25,000 tonnes times USD 200.
Margin lost (USD): 100,000 × 3 ÷ 12 × 200 = 5,000,000
Step 3: Share of yearly EBITDA
What a strong candidate does: USD 5 million out of 40 million.
Share of EBITDA (fraction): 5,000,000 ÷ 40,000,000 = 0.125

The recommendation to listen for

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

FlexiPack should explain to investors that the dip is timing, not lost business, and shorten its delays where it can, because the three-month delay costs about USD 5 million, 12.5 percent of a year's EBITDA. First, it pays the higher resin price on 25,000 tonnes before customers pay more. Second, this means the same delay gives the money back when resin prices fall. The risk is a customer refusing the full increase when the delay ends. As a next step, list contracts by delay length and renegotiate the longest ones.

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.