The McKinsey Caselets have been designed to help us learn about your ability to think about the types

of business
problems that McKinsey consultants must face. You will be presented with scenarios based on actual McKinsey cases
and asked a series of questions relating to them. This exercise should also provide you with a better idea of what
consultants do. Some of the questions ask you to select more than one answer; make certain that you read the individual
question directions carefully before answering. The solutions to these problems do not require a knowledge of McKinsey
and Company policy or procedures.




Candidate Practice
Sample Questions
















1
Sample Caselet


A supermarket chain has asked McKinsey to conduct a review of its overall strategy.


1. The team has been asked to look at a number of issues that the client is considering, including whether or not to start a
customer loyaty program. In helping the client decide on this issue, which two of the following arguments, if true, would
you favor introducing such a loyalty program? (Select TWO of the following options.)

A. The client has increased sales by 15% in the last year.
B. It will lead to an increase in revenues with no significant cost increase.
C. Loyalty programs have successfully been introduced at retail electronics chains.
D. It will allow customer behavior data to be collected.
E. It will benefit the partner companies of the loyalty program.


2. A potential growth strategy for the client is to acquire a competing supermarket chain. You have been asked to create
a list of most likely targets for the client. Which of the following is not a factor when compiling this list?

A. Geographic location of the targets stores
B. Targets market share
C. Targets financial performance
D. Targets store layout
E. Targets distribution system



3. The clients current revenues are $1 billion. Its profitability is 12% of revenue. An acquisition target has been
identified, a smaller supermarket chain with revenues of $500 million and current profitability of 7%. If the smaller
company were to be acquired by the client, there would be immediate cost savings from eliminating duplicating activities
of $20 million. What would be the combined profits of the two firms if the merger took place?

A. $155 million
B. $160 million
C. $165 million
D. $170 million
E. $175 million





This completes the McKinsey Caselets.
Thank you.
2

Intermediate problem solving test: Sample
questions: the answers

b&d for Q.1
d for Q2,
e for Q.3.