Harvard Business School Management Consulting Club Case Interview Guide 2011 Cases contributed by Management Consulting Club and consulting companies. Note: Case guide is strictly for the use of current HBS Management Consulting Club members. No part of this document may be reproduced or transmitted in any form or by any means—electronic‚ mechanical‚ photocopying‚ recording‚ or otherwise—without the written permission of HBS Management Consulting Club. Company Provided Case – Telecom Co. (pg.
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A. Current Situation What role has Altius Golf’s choice of channels of distributions played in its loss of market share? What other factors have contributed to its loss of market share? What will happen if Altius maintains the status quo? Altius Golf’s choices in its channels of distribution have played a major role in its loss of market share. There are two distribution channels when it comes to the golf market‚ on-course and off-course‚ which account for 40% and 60% of unit sales respectively
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51‚840 132‚000 46‚080 51‚840 Cost per bottle $0.85 $0.91 $0.86 $0.60 $1.60 $0.87 Selling price per bottle 1.05 1.5 1.4 1.05 1.5 1.4 Gross margin per bottle 0.2 0.59 0.54 0.45 -0.1 0.53 Gross margin per batch $105.6 $226.56 $233.28 $237.6 -$38.4 $228.96 Gross margin percentage 19.05% 39.33% 38.57% 42.86% -6.67% 37.86% Gross margin for each label $26‚400 $27‚187 $27‚994 $59‚400 ($4‚608) $27‚475 Question 3 Plant-wide allocation based Activity-based cost system Advantages
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report especially the cost of goods sold and gross margin. From the income statement and balance sheet‚ the cost of goods sold in 2012 is $118‚224‚730 million for Samsung and $87‚846 million for Apple. The Gross profit percent is 37.02% and 43.9% correspondingly. Obviously‚ the sales of Samsung exceed Apple substantially but the gross margin percentage of Apple is higher than that of Samsung. These two groups of data reflect Apple Co. can make more profit of every sale unit than Samsung. If we look
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meeting certain criteria when it came to their gross margin. They sought to increase their gross margin‚ currently sitting at 18%‚ to that of a more comfortable number of 20%. To combat this issue‚ Classic Knitwear decided to team up with Guardian‚ a producer of odorless repellant protection against bugs‚ and combine their fortes into a line of clothing infused with the bug repellant technology. These new products would hopefully to rise the gross margin to the 20% they were hoping to accomplish.
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from the current 16.67%. Additionally‚ 10% of guests may also stay at other locations which is a 100% increase from the current 5%. As there are risks associated with the proposed new branding‚ the organization must now determine if the increase in profit will outweigh these risks. While it is true that the proposed new corporate branding would increase brand awareness‚ sales revenue‚ the number of properties visited by each guest and cross-selling potential‚ the risks must also be examined. For
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and 3 consider the calculation aspects of the issue. Question 5 considers what cost system to use‚ emphasizing behavioral considerations. Questions 3 and 4 address decision making under joint costing--how to think about cost when trying to maximize profit. Question 6 blends cost analysis and strategic positioning in a "cost plus" contracting situation. TEACHING STRATEGY We teach the case in one (90 minute) class period early in the required managerial accounting course. Questions 1 through 5 will
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will provide more accura te information about their manufacturing cost structure‚ as well as the costs of supplying individua l customers and orders. With this new information‚ Kanthal plans to redirect its resources to custo mers with hidden profits and reduce efforts that are focused on customers with hidden losses. The u ltimate purpose for this system change is to achieve higher growth and profitability. PROBLEMS‚ ANS WERS " SOLUTIONS: Question 1:Why have selling administrative costs
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CHAPTER 16 COST ALLOCATION: JOINT PRODUCTS AND BYPRODUCTS 16-1 Exhibit 16-1 presents many examples of joint products from four different general industries. These include: Industry Separable Products at the Splitoff Point Food Processing: • Lamb • Lamb cuts‚ tripe‚ hides‚ bones‚ fat • Turkey • Breasts‚ wings‚ thighs‚ poultry meal Extractive: • Petroleum • Crude oil‚ natural gas 16-2 A joint cost is a cost of a production process that yields multiple products simultaneously. A separable
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that it will provide more accurate information about their manufacturing cost structure‚ as well as the costs of supplying individual customers and orders. With this new information‚ Kanthal plans to redirect its resources to customers with hidden profits and reduce efforts that are focused on customers with hidden losses. The ultimate purpose for this system change is to achieve higher growth and profitability. PROBLEMS‚ ANSWERS & SOLUTIONS: Question 1: Why have selling administrative costs not
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