This profitability case is one of dozens of McKinsey cases from the MC McKinsey case library.
Your client is a ferryboat company that has been approached by a city mayor to bid on a 50-year exclusivity right to service commuters who wish to cross the river.
So far there is only one bridge crossing the river and traffic during peak hours is just horrible. The mayor sees this bid as an easy and cheap way to improve commuter’s journey.
What would be your approach to determine how much your client should bid for it?
In this case from the McKinsey case library, the client is a ferryboat company that has hired you to help it price a bid for a 50-year exclusivity agreement with a city. How much should the client bid for it? It’s your job to help the company determine that.
While the Profitability Framework is a good starting place for your framework, but don’t try to force fit the case into that singular framework. Use what you know of the core frameworks to help you build a custom structure tailored to the intricacies of the case.
The case contains one math exhibit for you to interpret. This is a beginner-level case interview you would more likely see in a McKinsey first round.
Interview Tips: McKinsey
McKinsey looks for candidates that are structured to the nth degree. In the case, focus on maintaining structure, i.e. organization, the entire way through the case.
One other thing to focus on in the case is to find 1 key takeaway or area of improvement.
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