McKinsey Problem Solving Test

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  • Topic: Hot dog, Revenue, Kosher foods
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McKinsey & Company

McKinsey Problem Solving Test
Practice Test

© 2010 APTMetrics, Inc.

Practice Test

McKinsey Problem Solving Test – Practice Test

Practice Test Overview and Instructions This practice test has been developed to provide a sample of the actual McKinsey Problem Solving Test used for selection purposes. This test assesses your ability to solve business problems using deductive, inductive, and quantitative reasoning. This practice test contains a total of 26 questions. The actual test contains 26 questions and you will be given 60 minutes to answer as many questions as possible. You will be presented with three scenarios based on actual McKinsey client cases. Information related to each scenario will be shown in text, tables, and exhibits. This information is presented in doublebordered areas and is distributed in sections throughout the scenario. The questions ask you to find the most appropriate answer to the problem as described using only the information presented. You should select one and only one answer to any question. While completing this practice test, do not use any electronic devices (e.g., calculator, computer) when performing calculations to answer the questions. Electronic devices will not be permitted to be used during the actual test administration. Only scratch paper will be provided to perform computations. However, notes on the scratch paper will not be used in any way in determining your final test scores. Your final test score will be based on the number of questions you answer correctly. The practice scenarios begin on the next page of this booklet. Only consider information contained within the scenario when determining your answer. Considering all information presented within the scenario is critical to answering questions correctly. After you have completed the test, score your answers using the answer key located on the last page of this booklet. Add the number of correct answers to determine your final total score.

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Practice Test

Kosher Franks
Kosher Franks is a company that sells hot dogs and other packaged meat products, such as salami and lunch meats, in the United States. Kosher Franks’ products are primarily sold through grocery stores. While not a very large company, it has strong brand recognition in the packaged meat market and a reputation for high quality products. Kosher Franks’ customers are large grocery store chains or grocery distributors, who sell to smaller chains or independent grocery stores across the US. The prices, which Kosher Franks presents to these chains or distributors, are negotiated individually and depend on many factors. Some of these factors include the volume to be purchased, whether the customer is a new customer or an existing one, and any promotional or marketing arrangements that have been agreed upon with the customer. The stores then sell the products to consumers at a higher price in order to make a profit. Table 1 shows Kosher Franks’ data on this year’s sales revenue and the average annual revenue growth over the last 5 years. The data in Table 1 is broken down by major product category. Table 1 Recent Revenue and Revenue Growth Data for Kosher Franks Revenue this year All beef hot dogs Other packaged meat Sliced meat Other products (e.g., pickles, sauces) $366.7m $65.3m $55.3m $15.1m Average annual revenue growth over last 5 years 4.2% 1.5% 1.2% -7.0%

Kosher Franks manufactures all of its own products and invests significantly more resources than its competitors to ensure superior quality. This is especially valuable to them because this type of product has a poor overall reputation for quality in the United States. Kosher Franks was founded almost 100 years ago, and until recently, was run as a family business. However, after almost a decade of poor sales growth, the company was acquired last year by a major conglomerate, FoodInc, with the goal of increasing sales. The CEO of...
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