CASE #1 Question This question was asked by McKinsey in a lst round interview. Your client is the CEO of a paint manufacturing company. One Mcansey team has previously worked on optimizing their cost structure. The CECI wants to further improve their profitability. How would you analyze the situation? Information to be given if asked Customers I The customers are of 2 types: professionals {contractors} and private CDHSIIITIEFE. I The customers are not very loyal. I Theyr have multiple brands and have good basic quality paint. Company I The total revenues are 13. I There are 3 sales channels as follows: I Company owned stores: EM in sales. Focuses on contractors [professionals]. I Consumer division: 3mm in sales. Sold through mass merchandisers. I Independent dealers: 100M in sales. Sold to local mom 3: pop stores. The client maintains a separate set of warehouses to serve this channel. a Return on sales is 5% for the company owned stores, 3% for the consumer division, and 1% for independent dealers I The target for the firm is SBM. Industry I The industry growth rate is same as GDP growdi. I Client has 30% market share