Interviewer view · keep this screen to yourself

Integrated versus non-integrated box maker

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.

Two fictional box makers in the United States sell corrugated boxes at USD 1,100 per tonne of board used. BoxCo buys its containerboard on the market at USD 650 a tonne. MillBox owns a recycled mill whose cash cost of board is USD 480 a tonne. Both spend USD 300 a tonne to convert board into boxes (labour, starch glue, ink, energy) and USD 60 a tonne on freight to customers. What is each one's cash margin per tonne? All figures are illustrative.

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.

Cash margin per tonne = box price minus (board cost + converting + freight)This comes from the goal: compare profit per tonne for the two ways of getting board.
- BoxCo: market price of board
- MillBox: its own mill's cash cost of board

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: BoxCo margin
What a strong candidate does: Price 1,100 minus board 650, converting 300 and freight 60.
BoxCo cash margin (USD per tonne): 1,100 - (650 + 300 + 60) = 90
Step 2: MillBox margin
What a strong candidate does: Price 1,100 minus board 480, converting 300 and freight 60.
MillBox cash margin (USD per tonne): 1,100 - (480 + 300 + 60) = 260
Step 3: Gap
What a strong candidate does: The extra margin from owning the mill.
Advantage of integration (USD per tonne): (1,100 - (480 + 300 + 60)) - (1,100 - (650 + 300 + 60)) = 170
Step 4: If board prices fall 100 dollars and box prices fall 50
What a strong candidate does: BoxCo now pays 550 for board and sells at 1,050.
BoxCo new cash margin (USD per tonne): 1,050 - (550 + 300 + 60) = 140

The recommendation to listen for

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

MillBox earns about USD 260 a tonne against USD 90 for BoxCo, so owning a low-cost mill is worth about USD 170 a tonne at today's prices. First, the gap is simply the market price of board minus the mill's cash cost. Second, this means the advantage shrinks when board prices fall: BoxCo's margin then rises to about USD 140 while the mill earns less on its board. The risk for MillBox is the mill's own fixed costs and its exposure to fibre and energy prices. As a next step, test both margins across the board price cycle, not just at today's price.

Risks a strong answer names: The mill's depreciation and maintenance are not in its cash cost; at low utilization they weigh heavily; Recovered paper prices can jump when demand from other countries rises.

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: Who earns what on one unit case of soft drinks Choose another case