If you were assigned to benchmark the performance of our different subsidiaries, what key metrics would you look at?
Why This Is Asked
This tests if you understand that a holding company with a bank, an airline, a distillery, and a property developer cannot be evaluated using the same financial ratios.
General Approach
Demonstrate awareness that different industries have different KPIs. Mention that you would start by learning the key drivers of each business, then select appropriate operational and financial metrics, and finally compare them on a common basis like return on capital.
Sample STAR Answer▾
Situation
In my internship at a family office that held investments in a hotel and a trading company, the owner asked me to compare their performance.
Task
I had to select financial and operational metrics that would make sense for both businesses and show which was generating more value for the group.
Action
I started by researching industry best practices for hotels and trading firms. For the hotel, I focused on RevPAR (revenue per available room) and occupancy rate, while for the trading company, I used inventory turnover and gross margin per SKU. At the group level, I calculated return on invested capital for each to see which was using the family's money more efficiently. I presented a scorecard that showed each subsidiary against its own budget and industry average.
Result
The analysis highlighted that the hotel was underperforming relative to its peers, leading to a management change, while the trading company was excelling. The owner appreciated the fair, context-aware comparison.
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- •STAR Structure
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- •Ownership Language
- •PH Workplace Context
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