Evaluate and Decide on a Three-Capital Plan for Andhra Pradesh

Quick Overview

A strategy case in which you play the Chief Minister of Andhra Pradesh and weigh a proposal to spread the state's capital functions across three cities while Amaravati keeps a role. It tests structured pros and cons, clear decision criteria, alternatives for regional development and a defensible recommendation.

Evaluate and Decide on a Three-Capital Plan for Andhra Pradesh

Company: McKinsey

Role: Product Manager

Category: Product Design & Strategy

Difficulty: medium

Interview Round: Other

As Chief Minister of Andhra Pradesh, you are presented with a proposal to spread the state's capital functions across three cities instead of keeping them in one. Lay out the strongest arguments for and against the plan, then make a recommendation and defend it. Assume that Amaravati, the current capital, keeps some role whatever you decide. ```hint Start from the problem the plan solves Before listing pros and cons, pin down what the three-capital idea is meant to fix and the criteria you will judge it by, so the pros and cons do not turn into a list of unrelated points. ``` ### Clarifying Questions - Which other two cities does the proposal name, and which seats of government (the secretariat and executive, the legislature, the High Court) would each one host? - What role is Amaravati expected to keep: one of the three seats, or something else? - What is the government's main objective: more balanced development across the state's regions, lower spending on the capital, or easing political tension between regions? - Over what time frame and budget would the decision be carried out? ### What a Strong Answer Covers - A clear objective for the decision and the stakeholders it affects, including residents of each region, government employees, and people and investors already committed to Amaravati - Pros and cons organized by explicit criteria such as governance efficiency, cost, regional equity and legal feasibility - Other ways to reach the same objective, compared with the proposal on those criteria - A decisive recommendation that respects the condition on Amaravati, with phasing, risks and how success would be measured ### Follow-up Questions - If the cabinet insisted on three capitals anyway, how would you organize them to keep coordination costs down? - Which commitments already made around Amaravati would your recommendation need to honor, and how? - What would you track over the next five years to know whether the decision is working?

Overview: A strategy case in which you play the Chief Minister of Andhra Pradesh and weigh a proposal to spread the state's capital functions across three cities while Amaravati keeps a role. It tests structured pros and cons, clear decision criteria, alternatives for regional development and a defensible recommendation.

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McKinsey
Feb 29, 2024
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As Chief Minister of Andhra Pradesh, you are presented with a proposal to spread the state's capital functions across three cities instead of keeping them in one. Lay out the strongest arguments for and against the plan, then make a recommendation and defend it. Assume that Amaravati, the current capital, keeps some role whatever you decide.

Clarifying Questions Guidance

  • Which other two cities does the proposal name, and which seats of government (the secretariat and executive, the legislature, the High Court) would each one host?
  • What role is Amaravati expected to keep: one of the three seats, or something else?
  • What is the government's main objective: more balanced development across the state's regions, lower spending on the capital, or easing political tension between regions?
  • Over what time frame and budget would the decision be carried out?

What a Strong Answer Covers Guidance

  • A clear objective for the decision and the stakeholders it affects, including residents of each region, government employees, and people and investors already committed to Amaravati
  • Pros and cons organized by explicit criteria such as governance efficiency, cost, regional equity and legal feasibility
  • Other ways to reach the same objective, compared with the proposal on those criteria
  • A decisive recommendation that respects the condition on Amaravati, with phasing, risks and how success would be measured

Follow-up Questions Guidance

  • If the cabinet insisted on three capitals anyway, how would you organize them to keep coordination costs down?
  • Which commitments already made around Amaravati would your recommendation need to honor, and how?
  • What would you track over the next five years to know whether the decision is working?