Interviewer view · keep this screen to yourself

A grocery chain buys its rival

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

A fictional Saudi grocery chain with 28 percent of its city's market wants to buy a rival with 17 percent. It expects to save 1 percent on combined purchases of SAR 6 billion a year. It also expects to remove a duplicate regional management layer of 40 roles costing SAR 400,000 each. The competition authority may require it to sell 15 overlapping stores that earn SAR 2 million profit each. The rival's 2 million loyalty members agreed to the rival's use of their data only. So the buyer must ask again. It expects 60 percent to agree, and values each usable member at SAR 10 of profit a year (illustrative numbers). What is the deal worth a year, and what would you tell the client?

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

Yearly value = buying savings + layer savings minus remedy loss, plus data value, then the people and rules checks
- Combined share: how hard will the review be?
- Synergies: buying and management layer
- Key: Remedy: profit lost from stores sold
- Data: value of members who agree again

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Combined share
What a strong candidate does: 28 plus 17 percent.
Combined share (percent): 28 + 17 = 45
Step 2: Buying savings
What a strong candidate does: 1 percent of SAR 6,000 million.
Buying savings (SAR million a year): 6,000 × 0.01 = 60
Step 3: Layer savings
What a strong candidate does: 40 roles at SAR 400,000.
Management layer savings (SAR million a year): 40 × 400,000 ÷ 1,000,000 = 16
Step 4: Net synergies after the remedy
What a strong candidate does: Selling 15 stores loses SAR 30 million of profit.
Net synergies (SAR million a year): 60 + 16 - 15 × 2 = 46
Step 5: Data value
What a strong candidate does: 60 percent of 2 million members at SAR 10 each.
Loyalty data value (SAR million a year): 2,000,000 × 0.6 × 10 ÷ 1,000,000 = 12

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

The deal is worth about SAR 58 million a year. That is SAR 46 million of synergies after a likely store sale, plus SAR 12 million from loyalty data. Three conditions decide whether that arrives. First, a 45 percent share means a long review and probably a remedy. So plan for the store sale rather than hope to avoid it. Second, the SAR 16 million layer saving needs a clear new structure and pay that rewards the combined business. Otherwise managers will protect their old teams. Third, the data value depends on asking the rival's members for consent properly. Using their data without it would breach Saudi data law, with fines of up to SAR 5 million per violation.

Risks a strong answer names: The authority could block the deal at 45 percent share; Staff of the bought chain may leave during the uncertainty.

Next steps: Map overlapping stores to size the likely remedy; Design the combined organisation and pay scheme before closing.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.

Next: another case in Partner mode

Swap roles and run the next case, so you both practise answering and scoring.

Run the next case: Which channel really makes the money? Choose another case