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Analysis of life insurance, general insurance, and fire and damage insurance with inputs on mode of delivery and role of brokers/agents.
Life insurance provides financial protection to the family of the insured in case of death.
General insurance covers non-life assets like health, travel, motor, etc.
Fire and damage insurance covers loss or damage to property due to fire, natural calamities, etc.
Online mode of delivery i...
What people are saying about KPMG India
I applied via Campus Placement
Your client is a non-profit organization that hires young graduates to teach in local schools is not able to meet their recruitment needs i.e., hire enough numbers. Can you help them chart out an effective strategy?
[Please note that I stands for Interviewer and C stands for Candidate]
C: Asked scoping questions (how established is the organization, where are we based out of, profiles & number of hires; how and where we currently hire from, expectations from hires, how long have we been facing this problem and any major increases in hiring needs etc.).
I: We are a well-known organization, 12+ years since establishment. Tied up with schools across the country, across multiple cities: both Tier 1 & Tier 2. We hire fresh undergraduate students from diverse academic backgrounds, the expectation is that they are required to teach for 2 years, a post which they will have to move on to other career prospects.
The pay is at par with their peers who work in the industry. We have a grassroots approach to hiring; we engage in physical outreach; our team has tied up with multiple campuses. There has been no major jump in hiring needs, steady increase but we have been increasingly lagging in fulfilling requirements over the last 2 years.
C: I’ll divide the recruitment funnel into 4 broad buckets: number of candidates we reach out to, number of applications we receive, number of selections made, number of final joiners. Do you want me to focus on any specific bucket?
I: These are exhaustive, let’s explore each of these factors and figure out what are possible problems and recommendations could be under each of them.
C: I’ll start with the first bucket. I’m assuming there have been no major demographics and psychographics of our target segments. Number of students made aware through.
1. Campus relations- target more universities/ change the portfolio mix based on the application to engagement ratio: determine which segments are performing better basis discipline (science, arts, engineering colleges) or city (metro, tier 1, tier 2 cities) / increase frequency of engagements
2. PR activities to improve awareness in the larger student population: such as webinars with alums, news reports etc.
I: We don’t want to target more universities, but the portfolio mix makes sense. We are also lagging on PR. We can explore the next bucket.
C: Number of applications we receive will depend on willingness of those who are aware about the join program and the ease of application.
I: Can you explore what can be done to have more people interested?
C: Given that the participants in the program will be expected to find other opportunities in the future, they’ll either work in the industry, pursue higher education or start up. So, promotional material should involve messaging catering to these three segments, leveraging the alumni network providing information and alumni who have gone on any of these paths.
1. Industries looking for candidates with this background
2. Higher education prospects
3. Access to a network for those interested in starting up.
I: Yes, messaging is a major area we’ll have to work on, are there any other factors outside these you want to explore that may affect willingness?
C: (Thinking out aloud for other factors to improve number of applications).
I: (Cue from the interviewer) I didn’t say that number of applications is the problem.
C: Can we explore the other factors like improving acceptance % among those selected: reducing those dropping off by ensuring selection happens early on: before application cycle for master’s programs/ negotiating exclusivity in acceptance of offers with the campus/ letting them know of location mapping early on, so drop offs can be covered with buffer offers early on.
A&B are two cities at 30 Kms distance from each other. An established structure player wants to see if we can build a bridge over the river reducing the distance to 7 Kms. What are the factors you'll consider while evaluating this proposal?
[Please note that I stands for Interviewer and C stands for Candidate]
C: Can I have more information on the type of cities, purpose of travel to these cities, both number of vehicles passing: passengers and commercial vehicles; model used: BOT?
I: 100,000 vehicles pass through the road each day, 60% passenger & 40% commercial, passenger travel mostly involves travelling to workplaces and visiting friends & family, model is Build Operate Transfer, for the first 30 years the company will receive toll revenue, post which it will be transferred to the government.
C: We’ll have to analyze this both from a financial as well as qualitative.
I: Let’s start with financials.
C: Do we have a target rate of return in mind?
I: Assume 12% hurdle rate.
C: We’ll need a fixed investment and operating costs, and we will have to project cash flow for the 30 years.
I: What are the different revenue streams?
C: Tolls, rent from petrol pump, commissions from shopping and retail establishments: restaurants, bars, advertisements billboards, signage by the government.
I: How will you price tolls?
C: We could use value-based pricing
i) using fuel costs saved from travelling 23 kms less each
way.
ii) Time value of money saved: assuming that average speed is 60 kmph, a person would save 40 minutes both ways (since most of them travel for work) and this would improve their productivity by a certain %.
So, if an average employee is billed Rs. 2000 per hour, we can calculate the costs saved due to improved productivity.
I: Fuel costs are easy to calculate, but time value of money will be difficult. Now let’s say we’ve priced toll; is there any important consideration you want to make while projecting revenue?
C: Due to reduced distance (from 30 km to 7 km), this will lead to increased economic activity, we may have to revisit our initial assumption about the number of vehicles: it could be much higher, a multiple of the current figure: 100,000.
I: True, I don’t know what that figure will be, but it'll be much higher now that they won’t behave like two different cities. That’ll be it. Do you have any questions for me?
We are a large pharmaceutical company, into innovative large molecule drugs for cancer, arthritis, nephron-disorders. Our drug can cure a certain type of breast cancer but is not patented in India. So far, we have enjoyed a monopoly, but our competitor has managed to copy the formulation in Phase 2 of trials and will launch in 3 months. What should our defense strategy be?
[Please note that I stands for Interviewer and C stands for Candidate]
I: We don’t have much time (courtesy zoom link expiring), I just want to see your approach to the problem.
C: How is our competitor’s product priced, and does the drug differ in anyway with respect to efficacy and side effects, and how is our product sold and how is it paid for?
I: Competitor is pricing at 30% discount, the drug is exactly like ours. Sold through oncologists’ prescriptions in hospitals. It could be subsidized by the government or self-funded.
C: Since the competitor has priced this at a 30% discount, we will have to find ways to reduce switching:
1. Not altering product mix: leverage existing salesforce' existing relationship with oncologists to incentivise doctors to continue prescribing our drug: sponsoring conferences etc.
2. Value added services: We could explore adding new services such as tying up with hospitals for all round comprehensive cancer care: the disease influences multiple systems, and patients also suffer from psychological effects of the disease.
This will allow us to continue charging a premium. In the long run: we could invest into differentiate our product through innovations- improve potency, reduce frequency of use and side-effects further.
3. Do we know what our current margins are, is price reduction an option?
I: Comprehensive services with premium pricing is a good point. Reducing prices is not an option as it may lead to a price war. Anything else you’d want to add since we’re almost out of time?
C: Improve accessibility for the existing drug by obtaining insurance covers that can cover at least part of costs.
I applied via Campus Placement
Imagine you’re advising the Prime Minister of India on improving the legal system in India. Suggest the changes you’d recommend and why.
[Please note that I stands for Interviewer and C stands for Candidate]
C: Since I’m recommending the Prime Minister of the country, is it fair to assume that there are no money constraints?
I: Yes.
C: Is there a specific timeline I’m looking at for the recommendations to be implemented: short term or long term?
I: None.
C: Changes in terms of:
A. Policy (The ‘What’):
(a) Simplifying Laws; and (b) Simplifying Processes (For example: reducing the no. of appeals).
B. Judges (The ‘Who’):
(I) The number of judges: filling up vacant posts and having a mechanism in place to fill up vacant posts knowing well the retirement age of judges
(II) The quality of judges: (a) Selection: Making it a prerequisite to have at least 2 years of trial court experience
(b) Training: Placing incoming judges in division benches with senior judges, external training, monthly briefing, yearly training etc.
C. Timelines (The ‘When’):
(a) Judges: incentivize judges, especially at grassroots levels, to reduce the duration of the cases
(b) Advocates / Parties: Making adjournment an exception, not a norm by requiring a written application for adjournment along with a fine. Not allowing more than a certain no. of judgments in a matter.
D. Infrastructure (The ‘Where’):
(a) increasing the number of courts/tribunals
(b) improving the quality of existing courts/tribunals, specifically at the grassroots level.
E. Implementation (The ‘How’):
A lot of changes which appear to be good are brought on paper, but not implemented properly. That is half the reason why our legal system is slow. To ensure changes are implemented effectively, have each subordinate court/tribunal answerable to the higher authority.
For example, the District Court’s work could be overseen by a committee comprising of judges of the High Court.
Your client is a cement company, it is trying to grow its presence in India. Advise your client on how to proceed.
[Please note that I stands for Interviewer and C stands for Candidate]
C: I’d like to know a little more about the company. Where are we based out of and where do we operate?
A. Based out of Bangalore, operate in South India.
C: Next, I’d like to know what kind of cement/grade of cement does our company produce and how do we price it via-a-vis others?
I: Cement is broadly of 2 two types: grey and white. The grey being cheaper and more commonly used, the white being the more expensive one. We produce more of grey and price it 5 rupees lower than our competitors.
C: I’d like to know about how strong our presence is in terms of market share.
I: We are one of the dominant players in South India and our presence in North India is limited. Our competitors have a strong presence in North India.
C: Is there any way we can categorize our customers: in terms of rural / urban?
I: Primarily rural customers.
No. of places we sell at * no. of customers * no. of products * no. of stores we sell at * price of the product.
C: In terms of places that we sell at, my recommendation would be to stick to South India and penetrate deeper. To this end we could
(a) identify small towns and villages which would be requiring urbanization, shifting from Kaccha houses to Pakka houses, and make our presence there at district levels
(b) identify towns which are likely to undergo construction of buildings and apartments.
In terms of no. of customers, we could have 3 categories:
(a) Builders
(b) Government
(c) retail customers.
Try entering tie-ups with the big builders of the southern region, for future construction. With respect to the government, try entering in tie ups with them for social causes such as building schools, rebuilding cities after natural calamities, the constitution of houses for the poor etc.
In terms of Products, since our main segment is grey, focus on that but ensure white is available specially in urban areas.
In terms of no. of stores, increase the number of outlets our product is available at. Since our major customer segment is rural, every district / big village should have our product available in South India. By taking the product closer to our customer, we can ensure that a pull effect is created for our product.
In terms of Price of Product, since cement is a commodity and our prices are lower than those of our competitors, we can increase our price marginally without it affecting the demand.
I applied via Campus Placement
Your client is an IT Service Company. You have been hired to analyze their cost structure and recommend solutions to reduce costs.
[Please note that I stands for Interviewer and C stands for Candidate]
C: I reiterated the problem statement to ensure I was not missing any information. I also asked a few clarifying questions to gain a better understanding of the problem at hand.
When you mention IT service companies, can I assume it to be like TCS, Wipro, Infosys?
I: Yes, you can assume it to be like TCS.
C: Just to know a bit more about the client, can you help with the following details - locations, client bases, age of the company, size of the company in terms of the workforce?
I: The company is based in India and has offices in Bangalore, Hyderabad, Mumbai and Gurgaon. It started its operations in the mid-90s and has approximately 5000 employees. Most of its clients are based out of the US, majorly Fortune 500.
C: Sounds good! To get a better understanding of the offering, is it safe to assume that it offers customized solutions to every client?
I: Yes, the requirement would vary based on its scale and specific need.
C: Cost can be broadly categorized into HR, infrastructure, and miscellaneous costs. HR cost would include employees’ salary, employee mix, benefits, and perks such as traveling, stay, F&B and insurance.
Infrastructure cost would consist of computer servers, maintenance, software license, rent, utility, hardware such as laptops/desktops and technological accessories.
The miscellaneous cost would include stationaries, security, salaries to maintenance staff, taxes, S&M. Would you like me to focus on any of these specifically, or should I explore each one by one?
I: Let’s focus on HR cost, which accounts for more than 80% of the cost.
C: Employees’ salary: fixed + variable component, and employee mix includes team composition: Onshore & Offshore, and team utilization.
I: Good, now I would like you to think of a few major cost components associated with support departments?
C: Could you please help to understand what does support department do?
I: They provide support to the core teams involved directly with the clients’ deliverables. Such as delivering laptop services, IT security team, so on and so forth.
C: Majorly, the cost would comprise of salary: perks and benefits, employee mix, and the number of employees supported per support staff.
I applied via Campus Placement
Guesstimate the number of Ola and Uber cabs in Delhi.
Estimate the total number of cabs in Delhi
Determine the market share of Ola and Uber
Calculate the number of Ola and Uber cabs based on their market share
Consider factors like peak hours, off-peak hours, and demand-supply ratio
Use data from Ola and Uber's official reports, surveys, and industry research
Your client is a cement manufacturer, and they are targeting 10% growth but currently they are facing declining profits. Identify the problems and recommend some changes.
[Please note that I stands for Interviewer and C stands for Candidate]
C: Repeated the case and started with basic CPCC.
Where is the client located? What kind of growth are they targeting (Revenue/Profit)? How many products do they have and what is their revenue share?
I: Client operates in India and is targeting revenue growth. They have 2 products and decline is across both.
C: Do you want me to identify why profits are declining first or suggest how to grow revenue?
I: Let’s start with growth.
C: Made the Ansoff Matrix and recommended some ideas across all the segments:
1. Exclusive contracts with suppliers, discounts for customers, targeting B2B segment
2. New variety of cements- fast drying, cement cubes
Diversification- Entering logistics industry since the client already has a strong distribution network.
I: Let’s see why profits are declining now.
C: Started with basic framework and identified that costs were increasing.
I: Identify all the areas where costs could go up and what could be the causes.
C: Laid down the value chain and under each head mentioned the problems that client could be facing.
I applied via Company Website and was interviewed in Aug 2022. There were 3 interview rounds.
Finance on life insurance industry
I applied via Campus Placement and was interviewed in May 2024. There were 2 interview rounds.
It was an online case test that had to be completed within a certain timeframe
I had to overcome a communication barrier with a team member from a different cultural background.
Misunderstandings due to language differences
Lack of awareness of cultural norms
Seeking help from a mediator or translator
Adapting communication style to bridge the gap
I applied via Company Website and was interviewed in May 2024. There was 1 interview round.
BCG Nairobi offers a unique opportunity to work on impactful projects in a dynamic and diverse environment.
Opportunity to work on projects with significant social impact
Dynamic and diverse work environment
Access to a wide network of clients and industries in Nairobi
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