Case Interview Preparation & Management Consulting | Strategy | Critical Thinking 847: Economic impact of poor business judgement (Case Interview & Management Consulting classics)
Apr 2, 2026
A revisit of how poor business judgment can hurt firms financially and reputationally. Stories include glaring population mistakes and how bad assumptions swell project scope and costs. Practical reminders to double-check simple facts and use quick tools to avoid costly errors. Free resources for resumes and strategy approaches are mentioned.
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Business Judgment Is Core To Case Success
- Business judgment (aka general knowledge) is a core skill for consulting because it shapes how candidates approach case problems.
- Michael contrasts exceptional candidates (a Yale PhD) with those who worry they can't know these basics to show it's testable and essential.
Candidate Claimed Singapore Had 400 Million People
- Michael recounts a candidate claiming Singapore's population was 400 million to show how glaring basic errors damage credibility.
- He explains clients notice such mistakes and it erodes both the individual's and the firm's reputation long-term.
Back Of Envelope Error Nearly Misled A Project
- Michael describes a junior consultant who assumed Russia had 700–800 million people and proposed taking 30% of that market.
- He intervened, showed Russia is ~140 million, and illustrated how the error would have distorted project direction and cost.