Company A sells paper coffee cups to all Costa Coffee locations in the UK. Company B sells dinner plates to all Nandos in the UK. Company A charges $1 for a pack of 100 cups and Company B charges $3 for 1 dinner plate. Tell us exactly what information you would need to determine whether Company A or Company B has higher annual revenue and explain how you would calculate these two figures.
What is one industry you think will be gone in 15 years? Answer the question using the following guidelines: -Identify at least one company in this industry and explain why their business will not succeed over time -How will consumers of this product/service evolve -How will the competitive landscape evolve and in what time frame -What, if anything, could the industry do to prevent becoming obsolete?
These are the questions for the Point72 Hirevue. What could be some good answers for these?
Buddy maybe try using your brain and answering them like you would in an interview.
To number 2, the Dairy Industry, it's already failing and becoming obsolete, and nothing can or should be done to stop this. An example company may be Dairylea. Consumers will realise and are realising that they can get milk from other sources such as plant-based milks (that are more environmentally friendly, better for health, and cause no harm to animals) . Over a course of 5-10 years, many companies will close, and many will evolve to provide their own plant-based milks where possible.
Disagree with this - although Dairy has certainly decreased in demand over the past decade, there is no indication that it will disappear anytime soon. Its not just milk - think about thinks like cheese and yogurt. Does anyone who isn't vegan / lactose-intolerant actually eat plant-based cheese and yogurt?
That's the beauty of the second question. Some think Industry X will be fine, others think it will be gone. There's no right or wrong answer, it's about your thought process. Some of them are value stocks, others are value traps.
What could they do? Sometimes the easiest answer is to invest in or acquire an emerging technology company to hedge yourself. For example, Tyson foods started a plant based meat brand recently.
SAM started a seltzer brand Truly, which is crushing beer. Look at SAM stock. Nobody thinks beer will be gone in a few years, but it's done growing in the US.