PubU
Practice this intermediate environmental strategy case interview question from McKinsey in the Energy sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
This case tests the candidate's ability to structure a complex environmental sustainability problem while performing quantitative analysis on capital investment decisions. The case cleverly reveals that the 'green' solution (electric buses) has negative 5-year ROI despite environmental benefits, forcing candidates to think beyond simple cost-benefit analysis and consider strategic, reputational, and long-term factors.
Clarifying Information
- How big is PubU? PubU is a large research institution consisting of an undergrad (35k students), graduate school (10k) and various professional schools (~2k). Number in student body is expected to be stable. The university is very large and requires an extensive diesel-powered bus system for students to commute all over campus.
- How much money does PubU have available / where does it come from? The average operating budget of PubU is $2B. Of that $2B, roughly 30% comes from the state, 10% from alumni donations, 20% from the university endowment (fund that pays out money each year) and 40% from student fees.
- How does PubU currently get electricity? From the local grid (which uses a mix of coal, gas, wind, and solar). The local utility is transitioning to 100% carbon-free by 2030.
- What does net-zero waste mean? Net Zero means consuming only as much energy as produced, achieving a sustainable balance between water availability and demand, and eliminating solid waste sent to landfills.
- What is PubU’s goal? As noted in the prompt, a plan to reach net-zero by 2040.
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