P5_L06_MtKinley - OM335Fall2008 P5:Mt.KinleyConsulting...

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OM 335 Fall 2008 1c83535a252697402254d3c7dd41eaa4fa48cd70.doc P5: Mt. Kinley Consulting  Mt. Kinley is a strategy consulting firm that divides its consultants into three classes: associates,  managers and partners. The firm has been stable in size for the last 20 years. Specifically, there have  been- and are expected to be- 200 associates, 60 managers, and 20 partners. The work environment at Mt.  Kinley is rather competitive. After four years of working as an associate, a consultant goes “either up or  out “; that is, becomes a manager or is dismissed. The company recruits MBAs as associate consultants;  no hires are made at the manager or partner level. A partner stays with the company for another 10 years  (a total of 20 years with the company). a) How many new MBA graduates does Mt. Kinley have to hire every year (to keep the firm size  stable)?
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