Strategy question
You are the Chief Minister of Andhra Pradesh. The proposal is to have 3 capital cities for the State. What are the pros and cons and what is your recommendation?
- McKinsey
- Strategy
- Hard
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What this question tests
Structured decision making under a public policy scenario, weighing stakeholder trade offs and forming a clear recommendation.
How to approach it
- Clarify the goal of the proposal, likely balancing administrative decentralization, regional development, and cost efficiency.
- List the pros, such as regional economic development, reduced congestion in one capital, and political balance across regions.
- List the cons, such as coordination inefficiency, higher administrative costs, and slower governance across three locations.
- Weigh the trade offs against the state's actual priorities, such as equitable development versus governance efficiency.
- Give a clear recommendation with reasoning, such as a phased approach or a single capital with decentralized regional offices instead.
What a strong answer includes
- Weighs both sides with specific, plausible impacts rather than a generic list of pros and cons.
- Reaches a clear recommendation, for example favoring decentralized functional offices over three full capitals, and explains the reasoning.
- Considers implementation cost and coordination complexity as a deciding factor, not just political optics.
Common mistakes
- Listing pros and cons without ever committing to a recommendation.
- Ignoring implementation cost and administrative complexity of running three capitals.
Likely follow-up questions
- How would you sequence implementation if you were to proceed?
- What would you measure to know if the decision was successful after five years?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop