Question This question was asked by Mckinsey in a 2nd round interview. Your client is a large multinational conglomerate with multiple plants globally. They were formed through mergers and acquisitions of many small firms over the last decade and there are still integration issues. The CEO would like to increase the ROIC of the firm from 10% to 20% in 3 years. Is it possible and how would you achieve this? Information to be given if asked: ROIC Definition . ROIC is Return on Invested Capital. This can be achieved by growing the profits of the firm and/or by decreasing the invested capital. . There are firms in the industry that have 20-30% ROIC. Hence the client's target looks achievable. Competitive Landscape . This is a highly fragmented industry with 20,000 competitors. Customers . Client has 30% customers in Europe, 10% in Asia, 50% in North America and 10% in ROW. . The client has 2 types of products - Standard (almost a commodity) and Engineered (designed specifically for the client). . The standard products are getting commoditized, hence have significant price pressure