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Consulting Interview Multipack

The energy company wants to double its operating profit margin from 2% to 4%. To do so, the assistant recommends focusing on reducing costs, as the energy market is highly price sensitive. Specifically, the assistant suggests further investigating channels like price comparison websites to reduce the high costs of acquiring customers. The CEO should also consider factors like required capacity and additional costs before upgrading some planes to larger models.

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© © All Rights Reserved
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0% found this document useful (0 votes)
40 views31 pages

Consulting Interview Multipack

The energy company wants to double its operating profit margin from 2% to 4%. To do so, the assistant recommends focusing on reducing costs, as the energy market is highly price sensitive. Specifically, the assistant suggests further investigating channels like price comparison websites to reduce the high costs of acquiring customers. The CEO should also consider factors like required capacity and additional costs before upgrading some planes to larger models.

Uploaded by

Nayera Fouda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CASE INTERVIEW

MULTIPACK
Incl. Cases, Brainteasers
& Market Sizing Exercices
A small energy company operating in the UK (1 million customers) currently has an
1 operating profit of 2%. They want to double that margin to 4%. What would you
recommend?

A large Middle Eastern airline is looking to upgrade some of its fleet to larger planes.
2 Firstly, estimate how many passengers come through Dubai airport each year and
secondly, what should the CEO consider before they upgrade the fleet?

An African bank is looking to enter the UK market, aiming to capture a proportion of


3
the migrant community. The board have asked your advice on an entry strategy.

The Crown Prince of Dubai is looking to sell Dubai. Whilst he is happy to sell, he does
4 not want to be remembered for selling too cheap. What price should he sell Dubai
for?

There has recently been a merger between three tap manufacturers, one based in
5 the US, one based in the UK and one based in Japan. A new Chief Revenue Officer has
just been appointed and wants to double revenues. What would you recommend?
Solve 180+ cases in our
online case library

See our Case Library


Question

A small energy company operating in the UK (1 million customers) currently has an operating
profit of 2%. They want to double that margin to 4%.

What would you recommend?

Example clarifying questions:

Clarify 1) What is the nature of this energy company? Utilities such as gas & electric?
2) Operating profit includes all revenue and costs but no interest or taxes, is that correct?
3) Am I right to assume we are only interested in the UK market?

Example synthesis
Repeat
“So, we are looking at a UK energy supplier with 1 million customers and are looking to
double their operating profit margin, have I understood the question correctly?”

After confirming you have understood the question, excuse yourself for a couple of minutes
to collect your thoughts and structure your answer.

Suggested framework: Profitability + general

Framework

Tip: try and draw this out in less than 2 minutes to maintain momentum in the dialogue
Once you have drawn your framework turn your page round and explain your thought
Present process and reason for structuring your answer as you have. Finish your explanation with a
comment such as “does that sound like a reasonable approach to you?”

Example hypothesis
Hypothesis
“Given that I believe the energy market is highly price sensitive I think I will begin my analysis
on the cost component of the profit equation.”

Once the interviewer has confirmed your approach is reasonable and you have stated your
hypothesis you may begin working through your answer.

It is important to keep numbers and data at the forefront of your questioning.

All maths should be done confidently and quickly without a calculator. Where possible,
always remember to make the maths as simple as you can.

Price is extremely
Currently have 1
competitive and See figure 1. See figure 1.
million customers
cannot be increased

Working

Consumer Client Product Market M

Who Expertise What Market share


All UK properties All ‘standard’ energy products All ‘standard’ energy products See figure 2.
What Distribution channels Elasticity of demand Competitor observations
Energy The national grid (same for all Low elasticity of demand. Competitors are charging new
Where competitors. Properties need energy. customers less than old
UK Costs Compliments customers
Price Buys energy from the grid at the None Threat of entrants
Cheapest usually wins same price as competitors. Substitutes Has increased due to lower
Consumer risk Intangibles Home generation such as solar barriers to entry
Low (1m customers) Brand is known but not as well as panels Supplier risk
the big 4 suppliers Lifecycle None
Financial situation N/A Regulations
N/A N/A
‣ Cannot increase profits via price, especially as new entrants are taking market
share.
‣ Volume is driven by marketing & sales so increasing volume doesn’t necessarily
Summary
increase profits.
‣ Fixed costs cannot be reduced easily and not enough to double profit margin.
‣ Cost of acquiring customers looks high compared to competition.

Possible recommendations

‣ Can confirm that the hypothesis of price being highly sensitive and cost reduction
being a more realistic way of increasing profits was true.
Recommendations
‣ The main concentration area for achieving the profit margin target of 4% appears
to be reducing the cost of acquiring customers and so further investigation into
channels such as price comparison websites should be pursued.

Figure 1.

Av. cost for Av. cost for


Fixed costs (£’000) Variable costs
competitors competitors

Labor
2.000 £ 3.200 £ Energy/unit 1£ 1£

Marketing/cus
Rent 100 £ 92 £ 62 £ 34 £
tomer

Customer
Utilities 15 £ 20 £ 20 £ 21 £
service

Figure 2.
Figures
2012 2018
1%

20% 20% 20%

29%

18%
21%
22%

28%
21%
Ee-n T-power BG Anf energy Others Ee-n T-power BG Anf energy Others
Question

A large Middle Eastern airline is looking to upgrade some of its fleet to larger planes.

Firstly, estimate how many passengers come through Dubai airport each year and secondly,
what should the CEO consider before they upgrade the fleet?

Example clarifying questions:

1) Just to make sure, the airline does not want to upgrade its entire fleet, just a proportion?
Clarify 2) If a tourist arrives and departs in the same week how is that counted in passenger
numbers?
3) So firstly we need to determine the required capacity and then secondly the additional
considerations with the fleet upgrade?

Example synthesis

“So, the client is a mature Middle Eastern airline that wants to know how many passengers
Repeat
come through Dubai airport each year and with this in mind, they have asked for us to point
out factors they need to consider if they upgrade some of its fleet to larger planes, is that
correct?”

After confirming you have understood the question, excuse yourself for a couple of minutes
to collect your thoughts and structure your answer.

Suggested framework: Market sizing


Av. capacity
Hours per day = 24 per plane

Runways
= ____
x seats
x
= _____
Time per mans.
Framework manoeuvre every 5
= ___ = ___
mins
mans. mans. a
per hour year
÷

Minutes per = 60
Days per year = 365 % seats filled
hour

Tip: try to draw this out in less than 2 minutes to maintain momentum in the dialogue.
Tailoring it to the question will ensure full marks for structure from the interviewer.
Once you have drawn your framework turn your page round and explain your thought
process and reason for structuring your answer as you have. In this case, draw the issue tree
Present without numbers first and then after you have hypothesised you can request data in order to
complete your answer. Finish your explanation with a comment such as “does that sound
like a reasonable approach to you?”

Example hypothesis
Hypothesis
“Given that I understand Dubai is a busy airport I think that it may transpire that upgrading
part of its fleet is appropriate but only on certain routes.”

Once the interviewer has confirmed your approach is reasonable and you have stated your
hypothesis you may begin working through your answer.
It is important to keep numbers and data at the forefront of your questioning. In this
example it is easy to work through your issue tree asking for the data required to fill the
gaps. All maths should be done confidently and quickly without a calculator. Where possible,
always remember to make the maths as simple as you can.

Av. capacity = 230


per plane *mans. = manoeuvres
Hours per day = 24
Runways
=2
= 1152 = 100.74m
x = 4 mans. x (approx.
mans. per day
every 5 (approx. 1200) 100m seats)
= 2.5 mins
Time per minutes
manoeuvre = 48
mans. = 438k
÷ mans. a year
per hour
Working

Minutes per = 60
Days per year = 365 % seats filled = 80%
hour

In this case you are required to use an additional data table to work out the average capacity
per plane in order to get to the final answer.

The weighted capacity is to be calculated by the candidate.

Av. capacity per plane

Plane type % of routes Capacity Weighted capacity


Airbus A380 70 % 550 385

Boeing 777 29,9 % 350 105

Cargo 0,1 % 2 N/A*


*Cargo can be ignored as the
number is so small but a good
answer will recognise its
existence
‣ The estimated number of visitors that pass through Dubai airport each year is
80m.
Summary ‣ They currently use predominantly two types of plane with differing capacities.
‣ With approximately 1200 manoeuvres a day at Dubai airport it is highly likely that
these routes have differing levels of demand.

Possible recommendations for the CEO

‣ Due to the small number of plane types and high number of flights everyday it is
worthwhile investigating further into the demand trends of flight routes. This
Recommendations investigation should highlight where larger planes would be beneficial such as
times of day and seasonality.
‣ It may be beneficial to look at other options such as leasing planes instead of
purchasing them outright.
Question

An African bank is looking to enter the UK market, aiming to capture a proportion of the
migrant community. The board have asked your advice on an entry strategy.

Example clarifying questions:

1) The company currently has no operations at all in the UK?


Clarify
2) They are already certain that they want to target the migrant community?
3) Does the migrant community include people that have migrated from countries where the
bank does have operations?

Example synthesis
Repeat
“So, we are looking at an African bank that wants to enter the UK market and specifically
target the migrant community, is that correct?”

After confirming you have understood the question, excuse yourself for a couple of minutes
to collect your thoughts and structure your answer.

Suggested framework: Market entry

Framework

Tip: try and draw this out in less than 2 minutes to maintain momentum in the dialogue
Once you have drawn your framework turn your page round and explain your thought process and
Present reason for structuring your answer as you have. Finish your explanation with a comment such as
“does that sound like a reasonable approach to you?”

Example hypothesis

Hypothesis “Given that I know the UK banking market is highly competitive I would hypothesis that for the
client to achieve a successful market entry they will have to develop a bespoke product offering
for the migrant community.”

Once the interviewer has confirmed your approach is reasonable and you have stated your
hypothesis you may begin working through your answer.

It is important to keep numbers and data at the forefront of your questioning.

All maths should be done confidently and quickly without a calculator. Where possible, always
remember to make the maths as simple as you can.

Market Financials Client Entry strategy


capabilities

Size Financial situation Capabilities Timing


£119bn Bank is willing to The client has the UK population more

Customers invest £50m for the technical capabilities open to switching

Working See figure 1. first two years to launch any of the banks than ever

Product types Investment required financial products in before

All financial products See figure 2. figure 2. Pilot


Research suggests that
M
and services are Ongoing costs Entry experience
a pilot of one retail
available in the UK N/A Entered other African
store is appropriate
Profitability Expected countries but no
Type
Highly profitable revenue/ROI western countries yet
The only thing
Market share See figure 2. Market entrants
preventing entering on
Dominated by New ‘challenger
their own is a UK
incumbents but banks’ have become
banking license
‘challenger banks’ popular in recent
Operation location
emerging years
The UK banking license
Regulations stipulates that the UK
High operation must be run
from the UK itself
‣ The migrant community will accept higher borrowing rates if they know that these
will not change for longer than average periods of time.
‣ The majority of the migrant population appears to be in London.
Summary
‣ Migrants biggest pain point with current banks is the difficulty to open an
account.
‣ All competitors have an online offering.

Possible recommendations

‣ Open in London with a single retail store.


‣ Reduce requirements to open a bank account if possible.
Recommendations
‣ Start by offering a current account (saving) and small loans (lending) - need to
have one of each type of product to function as a bank.
‣ Further research is required into the demand for an online offering from
migrants.

Figure 1.

“I don’t trust UK banks, the interest rates


change so quickly. I need certainty more
than anything.”
“When I arrived in the UK, I didn’t have
an address which made it really hard to
open a bank account. I still don’t have
one.”

“I couldn’t open a bank account


and now I I don’t want to take a
loan because of the interest rates. I
don’t feel like they meet my needs."
“Because I have no credit history in this
country I can’t get the loan I need for my
business.”

Figures

Figure 2.

Investment
Product Type required (over 2 Forecast ROI
years)

Current account Savings £20m -£20m

Savings account Savings £25m -£80m

Small loans Lending £25m £100m

Mortgages Lending £200m £400m


Question

The Crown Prince of Dubai is looking to sell Dubai. Whilst he is happy to sell, he does not
want to be remembered for selling too cheap.

What price should he sell Dubai for?

Example clarifying questions:

Clarify 1) What does selling Dubai include? businesses? buildings?


2) Has a city ever been sold before?
3) Following the sale will the buyer receive all future earnings as with a usual sale?

Example synthesis
Repeat
“So, we are looking to find a sale price for the city of Dubai but the Crown Prince does not
want to be remembered for selling too cheaply?”

Not applicable for this question, it is such a unique type of question and is a test of how well
you can apply structure to a completely unstructured problem.
Framework
As always the best place to start is to segment where possible. The answer here segments
Dubai into industries.

Explain your thought process and reason for structuring your answer as you have. Finish
Present your explanation with a comment such as “does that sound like a reasonable approach to
you?”

Example hypothesis
Hypothesis
“I think that many valuations are made by multiplying revenue or EBITDA by an industry
specific multiple. I think that a sale price could be determined this way.”
GDP of Dubai = $380bn

Industry breakdown

Industry % of total GDP Industry multiple


Natural resources 60 % 3

Tourism 10 % 1,5

Construction 10 % 1,5

Retail 1% 1,5

Finance 8% 2

Education 1% 1,5

Real estate 5% 3

Aerospace/defence 5% 2

Working
Weighted calculation

Industry
Industry % of total GDP Valuation ($bn)
multiple
Natural resources 60 % 3 $684

Tourism 10 % 1,5 $57

Construction 10 % 1,5 $57

Retail 1% 1,5 $5.7

Finance 8% 2 $60.8

Education 1% 1,5 $5.7

Real estate 5% 3 $57

Aerospace/defence 5% 2 $38

*The calculations during the interview will need to be done without a calculator.

Via industry segmentation and using their respective multiples it has been possible to
Summary
find a sale price for Dubai.

Recommendation The recommended sale price of Dubai is $965.2bn


Question

There has recently been a merger between three tap manufacturers, one based in the US,
one based in the UK and one based in Japan. A new Chief Revenue Officer has just been
appointed and wants to double revenues.

What would you recommend?

Example clarifying questions:

1) By taps, is that the taps you find on a sink?


Clarify 2) The client is only concerned about revenue and not worried about the consequences on
profit?
3) Should I assume the merger has been a success and treat the client as a a single
enterprise?

Example synthesis
Repeat
“So, we are looking at a tap manufacturer that has a soul aim of doubling revenues. It has
operations in the US, UK and Japan. Have I understood that correctly?”

After confirming you have understood the question, excuse yourself for a couple of minutes
to collect your thoughts and structure your answer.

Suggested framework: General

The reason why we suggest general rather than profitability is that we know revenue = price
x volume and to increase volume we need to take a thorough look at the customer, market
and product offerings.

Framework

Tip: try and draw this out in less than 2 minutes to maintain momentum in the dialogue
Once you have drawn your framework turn your page round and explain your thought
Present process and reason for structuring your answer as you have. Finish your explanation with a
comment such as “does that sound like a reasonable approach to you?”

Example hypothesis

Hypothesis “I would hypothesize that as the client is a merger of manufacturers there may be an
opportunity to diversify its distribution channels rather than diversify its product offering. I
will now work through my framework to attempt to test this hypothesis.”

Once the interviewer has confirmed your approach is reasonable and you have stated your
hypothesis you may begin working through your answer.

It is important to keep numbers and data at the forefront of your questioning.

All maths should be done confidently and quickly without a calculator. Where possible,
always remember to make the maths as simple as you can.

Consumer Client Product Market

Who Expertise What Market share


Household and Tap manufacturing Taps An oligopolistic
commercial property Distribution channels Elasticity of demand market dynamic.
Working owners via third Wholesale Fairly elastic Became the biggest

parties. Costs Compliments player following the

What N/A Potentially additional merger.


M
Taps for any Intangibles to sinks and baths Competitor

requirement. The shape of the taps Substitutes observations

are recognised by N/A Also sell wholesale


Where
Threat of entrants
Global end consumers Lifecycle
Low due to large
Price Financial situation Multiple years
quantity
Competitive Healthy
requirements
Consumer risk
Supplier risk
Low
None, all built and
owned in-house
Regulations
N/A
1 264 x 23 =

2 3,000,000 ÷ 175,000 =

3 12,394 + 798 =

4 100,892 - 98,765 =

5 5678 x 17 =

6 4328 ÷ 19 =

7 5,761 + 19,872 =

8 67,891 - 34,878 =

9 77,000 x 31 =

10 80,000 ÷ 15 =

11 25,560 + 5,680 =

12 987 - 831 =

13 76,875 x 7 =

14 77,777 ÷ 11 =

15 6,040,500 + 45,750 =

16 19,500,000 - 1,650,780 =

17 34,560 x 4 =

18 5,000,000 ÷ 24,000 =

19 697,751 ÷ 153,596 =

20 998,933 + 20,269 =

21 93,607 - 632,012 =

22 372 x 5316 = 1,977,552

23 97,990 ÷ 5,675 =

24 8,854,001 + 124,780 =

25 7,027,329 - 207,364 =
26 1,000,000 x 42 =

27 1,410,000,000 ÷ 47 =

28 218,777 + 178,514 =

29 436,074 - 205,873 =

30 7,000,000 x 30 =

31 4,097,673 ÷ 589 =

32 9,626 + 249,053 =

33 855,348 - 815,283 =

34 469 x 3,050 =

35 4,471,110 ÷ 705 =

36 85,134 + 284,404 =

37 612,897 - 284,035 =

38 149,072 x 7981 =

39 80,327 ÷ 13 =

40 657,845 + 767,016 =

41 696,664 - 16,456 =

42 106 x 9,360 =

43 2,811,125 ÷ 5375 =

44 3,003,348 + 749,945 =

45 2,001,985 - 623,754 =

46 149 x 871 =

47 992,160 ÷ 106 =

48 7,524,958 + 370,600 =

49 19,343,404 - 328,848 =

50 60,000,000 x 29 =
1 6.072

2 17,14

3 13.192

4 2.127

5 96.526

6 227,79

7 25.633

8 33.013

9 2.387.000

10 5.333,33

11 31.240

12 156

13 538.125

14 7070,64

15 6.086.250

16 17.849.220

17 138.240

18 208,33

19 544.155

20 1.019.202

21 -538.405

22 1.977.552

23 17,27

24 8.978.781

25 6.819.965
26 42.000.000

27 30.000.000

28 397.291

29 230.201

30 210.000.000

31 6957

32 258.679

33 40.065

34 1.430.450

35 4.471

36 369.538

37 328.862

38 1.189.743.632

39 6179

40 1.424.861

41 680.208

42 992.160

43 523

44 3.753.293

45 1.378.231

46 129.779

47 9360

48 7.895.558

49 19.014.556

50 1.740.000.000
Your mother’s brother’s only brother-in-law is asleep on your couch. Who is
1
asleep on your couch?

2 I have three apples, you take two from me. How many do you have?

The day before yesterday Sam was 17. Next year she will be 20. What day is
3
her birthday?

It’s dark. You have ten grey socks and ten blue socks you want to put into
4 pairs. All socks are exactly the same except for their colour. How many socks
would you need to take to ensure you had at least one pair?

My grandson is about as many days as my daughter in weeks, and my


5 grandson is as many months as I am in years. Together we are 120 years. How
old am I?
6 Adam’s father has 4 children; Alice, Alesha, Alan. Who is the fourth?

A merchant can place 8 large boxes or 10 small boxes into a carton for
7 shipping. In one shipment, he sent a total of 96 boxes. If there are more large
boxes than small boxes, how many cartons did he ship?

8 How many times can you subtract the number 5 from 25?

Two mothers and two daughters were fishing. They managed to catch one big
9 fish, one small fish, one fat fish. Since only three fish were caught, how is it
that they each took home a fish?

If you were to put a coin into an empty bottle and then insert the cork into the
10 neck. How would you remove the coin without removing the cork or breaking
the bottle?
Your dad.
1
Your mother’s brother is your uncle (assuming your mother and father are married).

Two.
2
The two apples that you took from me. I am left with one.

New Year’s eve, 31st December.

3 The day before yesterday is 30th December when she was 17, yesterday was the 31st
December when she turned 18, today is the 1st of January and she will be 19 this year
but next year she will be 20.

Three.
4
The first will be grey or blue, the second will either give you a match or one of each
colour, if so, then the third sock will give you at least one pair.

72.

This makes the grandson 6 and the daughter 42. It can be solved by creating the
following system of equations:
Let m be my age in years. If s is my son's age in years, then my son is 52s weeks old. If
g is my grandson's age in years, then my grandson is 365g days old. Thus,
365g = 52s.
Since my grandson is 12g months old,
5 12g = m.
Since my grandson, my son and I together are 120 years,
g + s + m = 120.
The above system of 3 equations in 3 unknowns (g, s and m) can be solved as follows.
m / 12 + 365 m / (52 x 12) + m = 120 or
52 m + 365 m + 624 m = 624 x 120 or
m = 624 x 120 / 1041 = 72.

So, I am 72 years old.


Adam.
6
Alice, Alesha and Alan are his siblings.

11 cartons total 7 large boxes (7 * 8 = 56 boxes) 4 small boxes (4 10 = 40 boxes 11


7
total cartons and 96 boxes

Once.
8
After you subtract 5 from 25 you are left with 20.

It was a granddaughter, mother and grandmother that went fishing. The


9 mother is both a mother and a daughter thus is counted twice in the opening
sentence.

10 Push the cork into the bottle and then remove the coin.
1 What is the size of the European Shoe market?

2 How many fast food meals are served in London each year?

3 How many people go swimming in the UK each week?

4 How many phones are lost at music festivals in the UK each year?

5 How many phones are manufactured in China each week?

6 How many houses are sold in the UK each year?

7 What number of pretzels would you need to build a tower as tall as Big Ben?

8 What is the size of the UK sofa market?

9 Estimate the revenue generated by ticket sales from all US sports stadiums each year.

10 How many people wear a tie on a Monday in the state of New York?

11 Estimate how many people own a smartphone in Africa.

12 Estimate the size of the Australian household TV market.

13 How many fridges are there in India?

14 How many lightbulbs are sold in the UK each year?

15 Estimate how many emails are sent from Dubai each week.

16 How many passengers come through Dubai airport each week?

17 How many miles are driven on UK roads each year?

18 Estimate how many pints of beers are consumed in France each week.

19 How many games of Monopoly are played in the UK each year?

20 How many cigarettes are smoked in Germany each week?


Segmenting by Region: Average price
= €40
per pair
Population of Eastern
Europe = 300m
= 750m
x
pairs per
Pairs purchased per year
= 2.5
year per person
1 + = 3bn
pairs per
Population of year
= 450m
Western Europe = 2.25bn
pairs per
Pairs purchased per =5 year
year per person

Segmenting by visitors Months per


vs. non-visitors: = 12
year
Population of London = 8m
= 16m
x
meals/mo
#fast food meals nth
=2
2 purchased per month = 36m
+ meals/mo
Population of non- nth
resident visitors per = 20m
month = 20m Considerations
meals/mo visitors includes
#fast food meals =1 nth commuters,
tourists & others
purchased per month

% that swim each


Age group Population size % that can swim Total
week

0-15 10m 60 % 50 % 3m

3 16-64 60m 80 % 10 % 4.8m

65+ 10m 60 % 20 % 1.2m

*Taking population Total #people swimming


of UK as 60m in the UK each week

Segmenting by UK and % of people


non-UK residents: that lose = 1%
their phone
Population of UK
= 60m = 3m UK
attendees x
% that attend a
4 music festival per
year = 5% = 3.3m
x
attendees
per year
% of attendees that Considerations
= 10%
are non-UK residents influencing factors on
phone loss e.g alcohol,
length of festival etc.
Average price
= €120
per phone
Global population = 8bn

x = 2bn x

5 % with a smartphone = 25%


= 1bn
÷ phones
required
Average lifetime of a per year
= 2 years
smartphone

Considerations
UK population = 60m Population growth

= 20m
÷
household
6 Average #people per s
=3
household

÷
Average lifetime of a
house = 10 years

Height of Big Ben = 100m


x Considerations
Base of Big Ben = 4m = 1600m3 1m3 = 1000000cm3
x It its perfectly acceptable to
ask the interviewer for this
Width of Big Ben = 4m conversion rate
÷
7
Height of 1 pretzel = 10cm
x
= 400cm3
Base of 1 pretzel = 20cm
x
Width of 1 pretzel = 2cm

Considerations
The interviewer may ask
Population of = 20m how you have arrived at
your commercial customer
commercial sofa household figure
customers s = 40m
potential
+ customer
8 UK population
= 60m s
÷
÷ = 20m
Average #people per
household =3 Average
= 20
lifecycle of a
years
sofa
Considerations
Average #games per
= 15 Non-sporting ticket
stadium per year sales

#US states = 50
= 1.875bn
x = 5000 x attendees per
Average stadia year
9 #stadiums with
= 100
paying spectators
per state = 125m
÷

Average #paying Average price


spectators per = 25,000 per ticket per = $20
stadium per game game

Probability
= 5%
tie is red
Population of New
= 20m
York
x = 18m x
10 % that leave the = 90%
house on a Monday x = 180,000
ties
% that are wearing
= 1%
a tie

% that are
% of total % that own Phone
Age group Population smartphone Total
population a phone owners
s

0-15 25 % 250m 2% 5m 20 % 2m

11 16-64 65 % 650m 60 % 39m 50 % 19.5m

65+ 10 % 100m 5% 5m 20 % 2m

Total #
*Taking population
of Africa as 1 billion
smartphones in
Africa

Average #TV’s per


household = 1.5
Australian population = 50m
= 17m
÷
household
12 Average #people per s
=3
household
= 3.4m
÷
Average lifetime of a
television = 5 years
Considerations
Average #fridges
=1
per household Organisations such as
restaurants and supermarkets will
have extremely high fridge counts
= 250m
Population of India Interviewer may ask how you
= 1bn arrived at the number of
= 250m commercial organisations

Average # people per


13 household =4

Commercial = 450m
organisations
= 900m
Average #fridges per
=2
organisation

Considerations
Objects with a high lightbulb
count such as Christmas lights

Av. lifecycle per


Segment Population size Av. #lightbulbs Total
lighbulb

Household 20m 50 4 years 250m


14
Automotive 40m 20 5 years 160m

Commercial 20m 50 5 years 200m

Total # lightbulbs sold


in the UK each year

Population of Dubai = 3m

x = 2.4m
% with a personal
email account = 80% x = 2.4m

Av. #emails sent per person per day = 1


15
Population of Dubai = 3m

x = 1.2m
% with a business
email account = 40% x = 12m

Av. #emails sent per person per day = 10

Considerations
Av. capacity = 250 You may start with the issue tree
Hours per day = 24 per plane and then ask for the necessary
numbers.
Runways =2
= 1152 = 2.1m
x x mans. per seats a
= 4 mans.
day (approx. week
every 5
Time per = 2.5 1200)
16 mins = 48
manoeuvre minutes = 8400
mans.
mans. a
÷ per
week
hour
Minutes per
= 60 Days per week =7 % seats filled = 80%
hour
*mans. = manoeuvres
Considerations
Average miles driven
= 100 Potential to segment by age or
per car each week vehicle type e.g motorcycles,
cars, vans, lorries
UK population = 60m
= 20m x = 4bn miles
÷ household
Average #people s
17 =3
per household = 40m
cars
÷

Average #cars per


Weeks per year = 52
household =2

Considerations
Average #pints per
=3 Could segment by age and use
week the table format.

FR population = 70m

- x
= 50m
18
Population aged
= 20m
<18
x = 40m

% that drink alcohol = 80%

Average #games per


=1
set per year
UK Population = 60m
= 20m
÷
household
Average #people per s
19 =3
household
= 5m sets
x
% of households
with a monopoly set = 25%

Segmenting Population Av. #smoked Days per


% that smoke Total
by Age: size per day week

0-16 10m 0 0 7 0

17-35 25m 20 % 15 7 75m


20
36-50 20m 10 % 10 7 20m

51+ 25m 20 % 15 7 75m

Total # cigarettes
Population =
smoked each week
80m in Germany
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