Bonus Round
unconventional
India-specific
Set in Bangalore, India; the figures and context are India’s.What this case is about
Your client is an IT services company based in Bangalore that serves leading U.S. companies. A new CEO took over after a period of poor performance, and reported profit is up 15 percent after one year. The board is considering a cash reward and wants your recommendation on whether the CEO should receive one, based on what drove the increase.
Objective
Determine how much of the reported profit growth reflects the CEO’s decisions versus external currency movement and whether a cash reward is justified against the relevant counterfactual.
Skills this case tests
Structuring the problem
Working the numbers
Judgement and recommendation
Reading the data