Interviewer view · keep this screen to yourself

A dairy company wants to enter a new country

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.

Illustrative numbers, fictional company. A dairy company in the United Arab Emirates has AED 1,000 million invested at home and earns an 18 percent ROIC; its cost of capital is 9 percent. Its advantage at home is a trusted brand plus a cold-chain delivery network that reaches most grocery shops every day. It wants to invest AED 400 million to enter a neighbouring country, where it has no brand and would have to build its own cold chain. It expects NOPAT of AED 20 million a year there by year three. Should it go ahead?

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.

Value created = (ROIC minus cost of capital) x invested capital, at home and in the new country
- At home: does the advantage show in the numbers?
- New country: does the advantage travel?
  - Brand: unknown there
  - Cold chain: must be built from zero, below efficient scale
- What NOPAT would the new country need to earn its cost 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: Economic profit at home
What a strong candidate does: A 9 point gap on AED 1,000 million.
Economic profit at home (AED millions a year): (18 - 9) ÷ 100 × 1,000 = 90
Step 2: ROIC in the new country
What a strong candidate does: AED 20 million of NOPAT on AED 400 million.
ROIC in the new country (percent): 20 ÷ 400 × 100 = 5
Step 3: Economic profit in the new country
What a strong candidate does: A 4 point shortfall on AED 400 million.
Economic profit in the new country (AED millions a year): (5 - 9) ÷ 100 × 400 = -16
Step 4: NOPAT needed to break even
What a strong candidate does: The rent on AED 400 million at 9 percent.
NOPAT needed (AED millions a year): 400 × 0.09 = 36
Step 5: How far off
What a strong candidate does: Needed NOPAT compared with the plan.
Needed NOPAT / planned NOPAT (times): 36 ÷ 20 = 1.8

The recommendation to listen for

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

I would advise against entering on this plan. At home the advantage is real: AED 90 million a year of economic profit from a brand and a dense cold chain that rivals would find slow and costly to copy. But neither travels. In the new country the plan earns 5 percent on capital that costs 9 percent, losing about AED 16 million a year in value, and it would need 1.8 times the planned profit just to break even. The next step is to test ways to take the advantage with it: a partner that already has a cold chain there, or entering only the cities close enough to serve from the home network.

Risks a strong answer names: The plan's AED 20 million may be too low if the brand travels better than expected; A local partner brings its own costs and risks.

Next steps: Compare entry routes (partner, acquisition, building alone) on the Strategic Moves pages; Check how far the home cold chain can reach across the border.

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.