A candidate simulates a high-pressure McKinsey case interview featuring a difficult ethical dilemma regarding a massive price hike for life-saving medicine. The video explores the tension between maximizing corporate revenue through inelastic demand and the societal impact of healthcare costs.
Facing the McKinsey Ethical Dilemma: The $400 Insulin Case
A candidate simulates a high-pressure McKinsey case interview featuring a difficult ethical dilemma regarding a massive price hike for life-saving medicine. The video explores the tension between maximizing corporate revenue through inelastic demand and the societal impact of healthcare costs.
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Analysis
The client is a pharmaceutical company. They are the only producer of a life saving insulin alternative. They want to raise the price from $30 to $400 per dose.
The client is a pharmaceutical company. They are the only producer of a life saving insulin alternative. They want to raise the price from $30 to $400 per dose. Since demand is inelastic, revenue would be massive. How would you approach this decision? Yeah, that's a good question. I think I would.
- 01The Setting
Establish the entity and their unique advantage or monopoly.
- 02The Controversial Move
State a drastic change in price, quality, or ethics.
- 03The Logic
Explain why this move would be profitable or 'smart' from a cold, business perspective.
- 04The Prompt
Directly ask the viewer or a second speaker for their solution.
- 05The Cliffhanger
The second speaker acknowledges the difficulty and starts to answer, but the video ends.