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.