Burton Snowboards Develops Profit Growth Strategy

Case Type: improve profits/bottom line; operations strategy.
Consulting Firm: OC&C Strategy Consultants second round job interview.
Industry Coverage: sports, leisure & recreation.

Case Interview Question #00170 Our client Burton Snowboards is a manufacturer of snowboarding equipment and accessories. The company specializes in a product line aimed at snowboarders: snowboards, bindings, boots, outerwear, and accessories, with two distinct major product divisions: boards and clothes. Burton Snowboards has experienced a fall in profitability in recent years. You have been hired to identify the causes for falling profitability. Once that has been completed, the objective is to develop a range of strategic options for the company, which will lead to a return to profit growth.

burton snowboardsAdditional Information:

At the top level, financial performance has changed as follows:

Total business in year, £ million 2005 2006 2007
Revenue 80 90 120
Profit 10 10 5
Profit margin (%) 12.5% 11.1% 4.2%

Question #1: What information would you require to help explain the change in profitability?

Possible Answer:

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3 Responses to Burton Snowboards Develops Profit Growth Strategy

  1. ciniguni says:

    r u sure the answer is the standard answer from consultants? it is not very logical and keep rambling.

    • Mohammad Arif says:

      @ciniguni: agreed, I also noticed the same specially for third one, as we can see revenue is growing, company must look into its operation’s,may be operations are not efficient. second, market trends need to be studied, there might be a scope of increase in the price if its not affecting the revenue.

    • Jessica says:

      I think in consulting case interviews, there is no “standard” answer to any case question. Some people do well in case interviews, others don’t, so it’s perfectly fine to see different kinds of answers/solutions here.

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