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Case
BeautyCo · where did the profits go?
Interviewer
Lior Sarkis
Rubric
2026 · MBB Ready
Completed
6/9/2026, 9:04:28 PM
2.7
/ 5.0 · weighted
Developing

Two dimensions, 9 sub-axes

This was a case-only session, so it's marked on the case dimensions: Analytical thinking and Presence & communication. Track record & drive isn't assessed without the behavioural part

The 2026 first-round bar sits at 3.5. Anything above advances on a real first round, with a flag on weaknesses

The three dimensions

By the rubric

Analytical thinking

2.6 / 5

You reached the core case answer with support: volume decline, offline-to-online shift, Amazon price pressure, grey-market cost disadvantage, and a supplier negotiation route. The main gap was consistency of independent reasoning under quantitative and commercial pressure, especially around the revenue/margin math and the first recommendation.

  • Framing3.0

    You built a workable profit tree at 02:06 with revenue as volume times price and costs split into fixed and variable, then eventually pivoted to volume and the market after the interviewer ruled out price, mix, and costs. A 4 would have named a sharper initial hypothesis and immediately concluded that flat price plus flat unit cost means a pure volume/share issue without needing the second prompt.

    • 02:06"profitability with framework which is revenue minus costs"
  • Commercial judgement3.0

    You got to the right commercial battlefield at 06:38 by identifying competitors, channels, service, and price, and you later understood that an 8% operating margin leaves little room to price-match. A 4 would have connected Amazon's price advantage to sourcing mechanics more independently and treated joining the grey market as risky before the interviewer flagged it.

    • 06:38"they may compete either on prices or on mix"
  • Rigor2.0

    You recovered several calculations, including fixed costs and grey-market sizing, but your first 2022 revenue estimate was materially wrong and your margin labels/numbers needed correction at 15:07. A 3 would have written and spoken the arithmetic cleanly on the first pass, landing around €1.05bn revenue, 60% gross margin, and 8% operating margin with a quick sense-check.

    • 11:21"As I said, around 2 billion."
  • Creativity2.0

    You proposed using the grey market and then, after pushback, going directly to suppliers to ask for comparable pricing, but the option set stayed narrow. A 3 would have offered two or three distinct routes with trade-offs, such as supplier pressure, strategic partnership, private label, premium experience, or fixed-cost reduction to fund selective price moves.

    • 22:32"start procuring from the grey market doing it wisely of course"
  • Synthesis3.0

    You gave a recommendation to change procurement strategy, negotiate with manufacturers, and compete on price, while acknowledging the need for de-risking. A 4 would have been more top-down and balanced: do not directly join the grey market, use measured supplier pressure plus partnership, protect the price premium, state the risk clearly, and give a concrete next step.

    • 24:27"we need to change our procurement strategy, go direct to the manufacturers"

Presence & communication

2.8 / 5

You stayed engaged, asked for time where needed, and generally worked collaboratively with the interviewer. The communication gap was precision: several answers were rambling or numerically unclear, which made the interviewer work harder to follow your logic.

  • Presence3.0

    You remained composed enough to ask for time during the fixed-cost calculation and corrected yourself rather than defending the first number. A 4 would have kept the same calm control while also reducing the visible hesitation and label confusion during the quantitative sections.

    • 12:23"Okay, give me one minute, please."
  • Precision2.0

    You often had the right general idea, but imprecise wording and labels created confusion, especially when you said total revenue was around €2bn and later mixed up gross and operating profit. A 3 would have signposted each calculation and conclusion in one clean sentence before elaborating.

    • 15:07"So operating margin would be roughly 280 and then gross margin would be, sorry"
  • Listening3.0

    You generally incorporated interviewer nudges, including moving from product switching to channel and competitor dynamics and correcting the fixed-cost build when asked to walk it through. A 4 would have caught key clues faster, especially the implication of flat selling prices at 03:03 and the request for cost of goods rather than fixed-cost advantages at 17:41.

    • 06:38"Okay, so if we're not producing goods and we're on the selling exams then yes it's a distribution problem."
  • Relationship-building3.0

    You were polite, collaborative, and comfortable asking for clarification when exhibits were not visible, which made the interaction workable. A 4 would have added a slightly warmer, more confident teaming style while maintaining momentum, rather than sounding transactional during parts of the case.

    • 06:57"I don't see an exhibit yet, so maybe you can spell this out for me."
From your AI coach

Lior's full feedback

Lior Sarkis
Lior Sarkis
Manager voice · Ex-Bain · Singapore
Fix this firstBefore your next case, make your quantitative work auditable: write the formula, calculate one line at a time, label the output, and sense-check before you speak.

What worked

  • You started with the right profitability architecture at 02:06, separating revenue into volume and price and costs into fixed and variable, which gave you a usable diagnostic path.
  • You identified the market issue at 08:18: perfumeries were shrinking, online was growing, and BeautyCo was losing online share to Amazon and other digital retailers.
  • You recovered well on the grey-market sizing at 20:40–21:01, landing around €1bn and roughly one-third of the total market, then connected it to BeautyCo's cost disadvantage.

What to work on

  • At 11:21 you said revenue was 'around 2 billion' when the exhibit supported about €1.05bn; the gap was speaking before completing the arithmetic. Drill: do 10 exhibit-based revenue calculations this week, writing each line as 'segment size × share = revenue' before saying the answer aloud.
  • At 15:07 you mixed gross profit, operating profit, and margins; the gap was label discipline under pressure. Drill: for 15 profitability drills, force the sequence 'Revenue minus variable cost equals gross profit; gross profit minus fixed cost equals operating profit; divide each by revenue' every time.
  • At 22:32 your first recommendation was to procure from the grey market, with only a light caveat on legal trouble; the gap was not fully weighing CEO-level legal, supplier, and reputational risks. Drill: after every recommendation practice, add a 20-second 'risks and safer alternative' layer before finalizing.

Key moments

  • 02:06 profitability with framework which is revenue minus costs
    This was the right opening structure and gave you a credible path to isolate volume as the driver.
  • 03:30 The number of units sold has decreased, I guess.
    You reached the volume insight, but the hesitation shows you should state direct algebraic implications more confidently.
  • 11:21 As I said, around 2 billion.
    The correct figure was about €1.05bn, so writing the arithmetic before speaking would have prevented a major order-of-magnitude miss.
  • 20:40 roughly 1 billion and its share of the total market maybe just a bit above 30%
    This was a strong recovery: you landed the grey-market size and materiality close enough for case purposes.
  • 22:32 start procuring from the grey market doing it wisely of course
    This showed commercial boldness, but a stronger CEO recommendation would first test legal, supplier, and reputation risks before endorsing it.
For comparison

What a strong close sounded like

Not the only right answer — but the level of structure, numbers, and decisiveness a top candidate lands on this case

"BeautyCo's profit decline is a VOLUME problem, not a price or cost problem — selling prices and unit costs have held flat, but BeautyCo is selling fewer units because it's losing market share. The market itself has grown about 15%, but it's shifted from offline to online, and online it's consolidating around Amazon. Customers pick Amazon for one reason: price, especially in fragrance. BeautyCo can't simply match those prices — at a 60% gross and only an 8% operating margin, cutting price would wipe out profit. Amazon prices lower mainly because it sources from the grey market — manufacturers offloading surplus volume through unofficial distributors at lower prices. That grey market is about €1.04 billion, roughly 34% of the total market, and BeautyCo is the only major player not buying from it — a structural cost disadvantage. My recommendation: don't join the grey market — the legal and reputational risk is too high — and don't try to win on price. Instead, exert measured pressure on the manufacturers while positioning BeautyCo as a strategic partner to jointly protect the market from grey goods, and in parallel defend a price premium through a superior in-store and online experience. If BeautyCo does nothing, the problem compounds as online and drugstore channels keep growing. Next step: open commercial conversations with the top manufacturers and quantify how much grey-market leakage we could realistically contain."
What to do next

Three quiet next steps

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