Interviewer view · keep this screen to yourself

A food group has AED 300 million and two units that want AED 200 million each

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.

Fictional and illustrative. A food group in the United Arab Emirates has AED 300 million to invest next year. The dairy unit asks for AED 200 million and expects a 14 percent return on it. The snacks unit also asks for AED 200 million and expects 10 percent. The group's cost of capital is 9 percent. Assume each unit earns its stated return on whatever it receives, up to what it asked for. The chief financial officer suggests splitting the money evenly, AED 150 million each, "to keep both teams happy". What do you recommend?

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.

Value created a year = sum over units of (return minus cost of capital) x capital received
- Dairy: 14 percent return against a 9 percent cost
- Snacks: 10 percent return against a 9 percent cost
- The constraint: AED 300 million in total, so compare splits

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: Dairy, if fully funded
What a strong candidate does: Economic profit is the gap between return and cost, here 5 percentage points, on AED 200 million.
Dairy economic profit (AED millions a year): (14 - 9) ÷ 100 × 200 = 10
Step 2: Snacks, if fully funded
What a strong candidate does: Here the gap is only 1 point, on AED 200 million.
Snacks economic profit (AED millions a year): (10 - 9) ÷ 100 × 200 = 2
Step 3: Option 1: dairy first
What a strong candidate does: Give dairy its full AED 200 million and snacks the remaining AED 100 million.
Value created, dairy first (AED millions a year): (14 - 9) ÷ 100 × 200 + (10 - 9) ÷ 100 × 100 = 11
Step 4: Option 2: the even split
What a strong candidate does: AED 150 million each.
Value created, even split (AED millions a year): (14 - 9) ÷ 100 × 150 + (10 - 9) ÷ 100 × 150 = 9
Step 5: The price of keeping both teams happy
What a strong candidate does: Compare the two options.
Value given up by the even split (AED millions a year): 11 - 9 = 2

The recommendation to listen for

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

Fund dairy in full and give snacks AED 100 million. This split creates about AED 11 million a year of value above the cost of capital. The even split creates AED 9 million, so it costs the group about AED 2 million a year. Snacks earns only a little more than its cost of capital, 10 against 9 percent. So its first AED 100 million should come with a milestone. If snacks shows a return of 12 percent or more on that phase, it gets money first next year. That gives the snacks team a clear way to win, which matters because they have to run the plan.

Risks a strong answer names: Both returns are each unit's own forecast, so check how accurate each unit's forecasts were in past years; Returns may not hold at every level of spending.

Next steps: Ask finance for each unit's forecast against actual results for the last three years; Agree the snacks milestone with its head before the plan goes to the board.

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.

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