Beta Optics
Practice this advanced strategic decision case interview question from McKinsey in the Healthcare (Ops) sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
ProHub Comment
This is a comparison case requiring candidates to evaluate a capital investment decision by analyzing financial implications, strategic benefits, and operational risks. The case tests ability to structure complex investment analysis, identify key cost drivers in manufacturing, and quantify value creation through bottom-up calculations incorporating labor savings, waste elimination, and fixed cost reductions.
Estimated Time
36 minutes
Difficulty
Hard
Source
PeterK
40
/ 100
Beta Optics is a U.S.-based mid-size prescription eyeglass lens manufacturer. Due to the pandemic their revenues dropped by 30% in 2020 as far fewer people got their eye exams for glass prescription and a lot of optical retailers were closed. In order to improve their economics Beta Optics is considering investing in a cutting-edge digitized production process. They reached out to you to get your advice on whether they should do it.
Clarifying Information
- Beta Optics is a B2B business and supplies for prescription glass manufacturers like Warby Parker
- Beta Optics is focused on the U.S.
- Beta Optics didn’t share any objectives for this investment
- 80M pairs of eyeglasses are sold annually in the U.S.
- Beta Optics sold 1M pair of eyeglass lenses in 2020 at an average price of $50 per pair
- The conventional lens manufacturing process has 10+ stages and is quite labor-intensive
- The new technology will shorten, automatize and digitize a lot of parts of lens production process