It is currently 20 Nov 2017, 08:46

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Calling Chicago GSB 2008 applicants

  post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Director
Director
User avatar
Joined: 18 Sep 2006
Posts: 962

Kudos [?]: 28 [0], given: 0

Location: Chicago, IL
Schools: Chicago Booth 2010
 [#permalink]

Show Tags

New post 18 Dec 2007, 09:29
gosh its quiet here

Kudos [?]: 28 [0], given: 0

GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 10 Apr 2007
Posts: 4318

Kudos [?]: 765 [0], given: 5

Location: Back in Chicago, IL
Schools: Kellogg Alum: Class of 2010
 [#permalink]

Show Tags

New post 18 Dec 2007, 09:52
tick-tock-tick-tock...I can just picture a thousand people staring at their cell phones willing them to ring right now.

Kudos [?]: 765 [0], given: 5

Manager
Manager
User avatar
Joined: 29 Dec 2006
Posts: 214

Kudos [?]: 21 [0], given: 0

 [#permalink]

Show Tags

New post 18 Dec 2007, 09:58
It looks like they are sticking to their guns about releasing decisions on the 19th. There has been no activity on BW either.

Hopefully their servers can handle the load tomorrow morning. It would be helpful if the email they send out includes the decision, instead of forcing everyone to login.

Kudos [?]: 21 [0], given: 0

Director
Director
User avatar
Joined: 13 Mar 2007
Posts: 542

Kudos [?]: 92 [0], given: 0

Schools: MIT Sloan
 [#permalink]

Show Tags

New post 18 Dec 2007, 10:00
Just dropping in to wish the best to all those waiting !!!

Really hope GSB opens its flood gates soon!

All the very best guys :)

Kudos [?]: 92 [0], given: 0

GMAT Club Legend
GMAT Club Legend
avatar
Affiliations: HHonors Diamond, BGS Honor Society
Joined: 05 Apr 2006
Posts: 5926

Kudos [?]: 2209 [0], given: 7

Schools: Chicago (Booth) - Class of 2009
GMAT 1: 730 Q45 V45
WE: Business Development (Consumer Products)
Premium Member
 [#permalink]

Show Tags

New post 18 Dec 2007, 10:13
The suspense is even killing me!

Kudos [?]: 2209 [0], given: 7

GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 10 Apr 2007
Posts: 4318

Kudos [?]: 765 [0], given: 5

Location: Back in Chicago, IL
Schools: Kellogg Alum: Class of 2010
 [#permalink]

Show Tags

New post 18 Dec 2007, 10:14
It wont take long to call people this afternoon to let them know. Its only a few minutes per phone call so they could easily punch through 300-400 acceptances this evening. I doubt people will complain about getting a phone call at 7pm.

Kudos [?]: 765 [0], given: 5

GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 10 Apr 2007
Posts: 4318

Kudos [?]: 765 [0], given: 5

Location: Back in Chicago, IL
Schools: Kellogg Alum: Class of 2010
 [#permalink]

Show Tags

New post 18 Dec 2007, 10:17
rhyme wrote:
The suspense is even killing me!


well go run into their office and ask when they are going to be making calls. Or just go peak and see if all the adcoms have phones pressed to their ears with smiles on their faces.

Kudos [?]: 765 [0], given: 5

GMAT Club Legend
GMAT Club Legend
avatar
Affiliations: HHonors Diamond, BGS Honor Society
Joined: 05 Apr 2006
Posts: 5926

Kudos [?]: 2209 [0], given: 7

Schools: Chicago (Booth) - Class of 2009
GMAT 1: 730 Q45 V45
WE: Business Development (Consumer Products)
Premium Member
 [#permalink]

Show Tags

New post 18 Dec 2007, 10:21
riverripper wrote:
rhyme wrote:
The suspense is even killing me!


well go run into their office and ask when they are going to be making calls. Or just go peak and see if all the adcoms have phones pressed to their ears with smiles on their faces.


Actually, they are in the back burning piles of papers, dancing around the inferno chanting something about the "necronomicon"... I'm not sure whats going on.

Kudos [?]: 2209 [0], given: 7

Director
Director
avatar
Joined: 11 Sep 2006
Posts: 515

Kudos [?]: 40 [0], given: 0

 [#permalink]

Show Tags

New post 18 Dec 2007, 10:30
rhyme wrote:
riverripper wrote:
rhyme wrote:
The suspense is even killing me!


well go run into their office and ask when they are going to be making calls. Or just go peak and see if all the adcoms have phones pressed to their ears with smiles on their faces.


Actually, they are in the back burning piles of papers, dancing around the inferno chanting something about the "necronomicon"... I'm not sure whats going on.

Love me some H.P. Lovecraft, Rhyme...LOL...but that's just plain MEAN... :wink:
_________________

...there ain't no such thing as a free lunch...

Kudos [?]: 40 [0], given: 0

Manager
Manager
avatar
Joined: 27 Jun 2007
Posts: 241

Kudos [?]: 5 [0], given: 0

 [#permalink]

Show Tags

New post 18 Dec 2007, 10:34
ack ....... are all of you sure that no-one has recieved the phone call........I'm pissing myself thinking that others have recieved calls, and in the celebratory mood they've forgotten to post abt it here

Kudos [?]: 5 [0], given: 0

GMAT Club Legend
GMAT Club Legend
avatar
Affiliations: HHonors Diamond, BGS Honor Society
Joined: 05 Apr 2006
Posts: 5926

Kudos [?]: 2209 [0], given: 7

Schools: Chicago (Booth) - Class of 2009
GMAT 1: 730 Q45 V45
WE: Business Development (Consumer Products)
Premium Member
 [#permalink]

Show Tags

New post 18 Dec 2007, 10:47
I'm actually at Gleacher, so I can't see them anyway...

In the interim, allow me to share my case interview question with you:

Our client is a large grocery chain in Texas. Their stores are concentrated in suburbs, and they want to grow the firm (but only in Texas). They feel they have saturated the grocery market in the suburbs but are not willing to consider opening stores in a downtown area. They already have an online service and delivery service and are thinking of entering the convenience store business. Is this a good idea? If so, how should they do it?

Kudos [?]: 2209 [0], given: 7

GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 10 Apr 2007
Posts: 4318

Kudos [?]: 765 [0], given: 5

Location: Back in Chicago, IL
Schools: Kellogg Alum: Class of 2010
 [#permalink]

Show Tags

New post 18 Dec 2007, 10:51
Here is a good out there answer.

Open organic/whole foods type grocery stores. It serves a very different clientele and in general wont steal much business from their other stores, focus attention on wealthy areas. Yes I know most stores now have organic sections but nothing compared to the selection at a whole foods, and those places are experiencing great growth.

Kudos [?]: 765 [0], given: 5

Intern
Intern
avatar
Joined: 21 Mar 2007
Posts: 25

Kudos [?]: [0], given: 0

 [#permalink]

Show Tags

New post 18 Dec 2007, 10:57
Just a random guess...
They should focus on the latino or other ethnic market which are typically underserved?

what's the answer?

rhyme wrote:
I'm actually at Gleacher, so I can't see them anyway...

In the interim, allow me to share my case interview question with you:

Our client is a large grocery chain in Texas. Their stores are concentrated in suburbs, and they want to grow the firm (but only in Texas). They feel they have saturated the grocery market in the suburbs but are not willing to consider opening stores in a downtown area. They already have an online service and delivery service and are thinking of entering the convenience store business. Is this a good idea? If so, how should they do it?

Kudos [?]: [0], given: 0

Director
Director
avatar
Joined: 28 Dec 2005
Posts: 915

Kudos [?]: 59 [0], given: 0

 [#permalink]

Show Tags

New post 18 Dec 2007, 10:57
Nice. Mind if I give it a shot?

I actually wouldnt recommend it because convenience stores would mean lower margins which they need to make up by the number of stores. But if you have to go this route with your response, I assume you have to give an alternate idea to follow through and why that may be better?

In that case, I would do some research on the number of Costco's and Sam's clubs in the area see if there is an need to have something similar instead. Existing resources (warehouse) then may be used. Of course this needs some research.

If they want to stick to convenience stores, are they planning on buying an existing successful chain which is in the market. That may not be a bad idea if the price is right.

How much data do they give you? How does an MBA student (ie. you) proceed?

Kudos [?]: 59 [0], given: 0

Director
Director
avatar
Joined: 28 Dec 2005
Posts: 915

Kudos [?]: 59 [0], given: 0

 [#permalink]

Show Tags

New post 18 Dec 2007, 11:09
riverripper wrote:
Here is a good out there answer.

Open organic/whole foods type grocery stores. It serves a very different clientele and in general wont steal much business from their other stores, focus attention on wealthy areas. Yes I know most stores now have organic sections but nothing compared to the selection at a whole foods, and those places are experiencing great growth.


Not sure that would work in Texas. would work better in California. Think about the market.

Kudos [?]: 59 [0], given: 0

GMAT Club Legend
GMAT Club Legend
avatar
Affiliations: HHonors Diamond, BGS Honor Society
Joined: 05 Apr 2006
Posts: 5926

Kudos [?]: 2209 [0], given: 7

Schools: Chicago (Booth) - Class of 2009
GMAT 1: 730 Q45 V45
WE: Business Development (Consumer Products)
Premium Member
 [#permalink]

Show Tags

New post 18 Dec 2007, 11:13
You are supposed to ask clarifying questions like: "Who are their competitors" ... Not jump to an answer that fast :) What are the issues you should be considering? How might you come to the decision? What things will you consider? Based on those ideas, you come up with questions which the interviewer answers. It turns into a conversation, which helps you shape the position of your response. That said, your "fly from the hip" comments aren't entirely bad.

Kudos [?]: 2209 [0], given: 7

Senior Manager
Senior Manager
avatar
Joined: 24 Jul 2007
Posts: 290

Kudos [?]: 15 [0], given: 0

 [#permalink]

Show Tags

New post 18 Dec 2007, 11:15
rhyme wrote:
I'm actually at Gleacher, so I can't see them anyway...

In the interim, allow me to share my case interview question with you:

Our client is a large grocery chain in Texas. Their stores are concentrated in suburbs, and they want to grow the firm (but only in Texas). They feel they have saturated the grocery market in the suburbs but are not willing to consider opening stores in a downtown area. They already have an online service and delivery service and are thinking of entering the convenience store business. Is this a good idea? If so, how should they do it?

My opinion:

All in one Chains like walmart and target will eventually squeeze such pure grocery chains because they offer convenience and variety to consumers. Establishing convenience stores is not a great idea as it does not leverage any existing resources other than operational skills of running retail operation. So if you were to invest in a totally unrelated line of business, there are other good ideas to choose from.
Solution is to either go all-in-one where you face brutal competition from stores like walmart, or go very niche.
In any case the convenience store idea does not look promising.

Would be interested in seeing how people with business background approach such problem.

Kudos [?]: 15 [0], given: 0

GMAT Club Legend
GMAT Club Legend
avatar
Affiliations: HHonors Diamond, BGS Honor Society
Joined: 05 Apr 2006
Posts: 5926

Kudos [?]: 2209 [0], given: 7

Schools: Chicago (Booth) - Class of 2009
GMAT 1: 730 Q45 V45
WE: Business Development (Consumer Products)
Premium Member
 [#permalink]

Show Tags

New post 18 Dec 2007, 11:15
hsampath wrote:
riverripper wrote:
Here is a good out there answer.

Open organic/whole foods type grocery stores. It serves a very different clientele and in general wont steal much business from their other stores, focus attention on wealthy areas. Yes I know most stores now have organic sections but nothing compared to the selection at a whole foods, and those places are experiencing great growth.


Not sure that would work in Texas. would work better in California. Think about the market.


Actually, the biggest problem with his reply is that he's not answering the question the client asked. The client wants to know if they should open convenience stores, not whether they should be opening a different kind of grocery store. (In any case, they might already be selling organic foods, the interviewer never said otherwise).

Kudos [?]: 2209 [0], given: 7

GMAT Club Legend
GMAT Club Legend
avatar
Affiliations: HHonors Diamond, BGS Honor Society
Joined: 05 Apr 2006
Posts: 5926

Kudos [?]: 2209 [0], given: 7

Schools: Chicago (Booth) - Class of 2009
GMAT 1: 730 Q45 V45
WE: Business Development (Consumer Products)
Premium Member
 [#permalink]

Show Tags

New post 18 Dec 2007, 11:34
Here's how I would approach the problem.

First, I need to understand WHY they want to enter this market. Likely, its because they want to grow and have excess cash. Second, I need to understand the market in general, who are the key competitors (Think 7eleven, etc). Since convenience stores, are by definition, a thing of convenience, one key question would be to understand how our client intends to differentiate itself. Why would someone shop at us rather than at X? So, then I'd ask myself what advantages I have as a grocery store - likely, its going to be in volume discounts, costs and advantageous pricing options. Our brand might be meaningful, but likely not a huge draw (when you go grab a snack from 7-11 how often do you actually "pick" where you go based on more than location?) ... So we would need to compete on price or location. So, first, we need to understand if there are any ways to compete on location. Barring that, we compete on price. Can we? Maybe. There are also some plausible economies of scale, namely since we already buy in bulk. Moreover, we should at least consider the possibility that we cannibalize our own grocery stores by doing this. That wouldn't help us at all. So, assuming we can compete on price (I'd assume that most good locations are likely already taken by the numerous other competitors) and that we are confident we wont cannibalize our own product lines (which you would get to by asking good questions of the interviewer), then the question boils down to two ways of entering:

1. Build our own - buying land, etc.
2. Buy out an existing small chain that maybe doesn't have great management or operations in place, revamp and relaunch.

For each of the 2 you'd want to list positives and negatives - synergies and concerns (for #1 for instance you have to buy land, build stores, find staff, etc.. for #2 you get all that off the ground, and possibly get advantageous locations as well)... If required, you could do a cost benefit analysis.

That would involve understanding key costs of each option, estimating market size, pricing, margins and profits. Based on those results (which I'd get by asking questions), I'd make a recommendation.

Last edited by rhyme on 18 Dec 2007, 11:57, edited 1 time in total.

Kudos [?]: 2209 [0], given: 7

Current Student
User avatar
Joined: 07 Aug 2007
Posts: 1062

Kudos [?]: 31 [0], given: 0

 [#permalink]

Show Tags

New post 18 Dec 2007, 11:39
I am assuming that the convenience store has a gas station as well. If it does, then it would definitely make sense to have the convenience stores just outside the grocery stores (like costco). This would add a new line of revenue and also help the existing stores. You would have to do some market research and pick/choose the right stores to have this added 'convenience store'. As someone else mentioned, most of these CS are low margin stores, so you have to have high volume or act as a supplement to the existing GS.

Kudos [?]: 31 [0], given: 0

  [#permalink] 18 Dec 2007, 11:39

Go to page   Previous    1  ...  39   40   41   42   43  ...  135    Next  [ 2681 posts ] 

Display posts from previous: Sort by

Calling Chicago GSB 2008 applicants

  post reply Question banks Downloads My Bookmarks Reviews Important topics  

Moderator: rohan2345



GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.