CASE INTERVIEW GUIDE

Presentation by: Gyanesh Sinha

Contents

1 2

Case interviews: An overview Case frameworks

3
4

Example cases
Guesstimates

Brain teasers

Contents

1 2

Case interviews: An overview Case frameworks

3
4

Example cases
Guesstimates

Brain teasers

CASE INTERVIEW GUIDE

Case interview : An overview (1/5)

Why the case?

A resume, at its very best, is only a two-dimensional representation of a multi-faceted, dynamic person
As consulting firms depend on employing those multi-faceted, dynamic people, the firms rely heavily on the case interview to screen candidates What do consultants have to put up with? Extremely turbulent work environment There are nonstop co-worker change Hostile client environments Countless political machinations

Near-perpetual travel

These factors mandate that an individual be cool under pressure, be influential without being condescending, be highly analytical, have the ability to understand the smallest aspects of a problem (while simultaneously seeing the big picture),and have the ability to maintain a balance between the personal and professional.
8/6/2009
4

CASE INTERVIEW GUIDE

Case interview : An overview (2/5)

What is a case?
A case interview is the analysis of a business question.
It is an interactive process where your interviewer will present you with a business problem and ask you for your opinion Your job is to ask the interviewer logical questions that will permit you to make a detailed recommendation The interviewer is looking for is a thought process that is both analytical and creative (what consultants love to call out-of-thebox thinking) Specific knowledge of the industry covered by the case question is a bonus but not necessary

8/6/2009
5

CASE INTERVIEW GUIDE

Case interview : An overview (3/5)

Skills assessed in a case interview

Leadership Intelligence Analytical abilities

Maturity

Presentation skills

Flexibility
Energy

Quantitative skills Attention to details

8/6/2009
6

CASE INTERVIEW GUIDE

Case interview : An overview (4/5)

Case strategies
Take notes, and repeat the information to the interviewer.
Make no assumptions

Ask questions
Listen to the answers you get Maintain eye contact (in case of personal interviews) Take your time Lay out a road map for your interviewer Think out aloud Present your thinking in a clear, logical manner. Where useful, use frameworks and business concepts to organize your answers Quickly summarize your recommendation

Argue and assert your results. But do not be blinded by your assessment
8/6/2009
7

CASE INTERVIEW GUIDE

Case interview : An overview (5/5)

Types of cases
TYPE Falling Profits
IN A NUTSHELL
Explore possible reasons behind a companys drop in profits

SKILLS ASSESSED
Analytical ability, drilldown from a high-level statement, industry knowledge Analytical ability, understanding of brand management, supply chain, communication, industry knowledge Understanding of global market dynamics, geographic currency issues, supply chain dynamics, industry knowledge Understanding of global market dynamics, regulatory environment, EXIM environment, supply chain dynamics, Analytical ability, regulatory environment, supply chain dynamics, communication, industry knowledge Analytical ability, supply chain dynamics, communication, industry knowledge, market dynamics Analytical ability, supply chain dynamics, communication, industry knowledge, market dynamics, regulatory environment Analytical ability, understanding of market dynamics, supply chain dynamics, communication, industry knowledge

FRAMEWORKS

EXAMPLE A telecom provider that has had three straight quarters of high profit gains, followed by a 50% drop in profits this quarter
Microvilla Software has a new software application they would like to market over the Internet. What do you think? X Bran wants to introduce its line of bran products in India. How would they go about assessing the feasibility of this idea? X manufactures cars exclusively in the US Due to cost pressures, the company is thinking of moving operations to China. Recommend. A FMCG company is interested in acquiring a logistics company to compress their supply chain and reduce their cycle time. X sells products only through department stores. Their major competitor, Y has just announced the opening of 10 company stores

Market assessment, BCG matrix, product mix assessment

New product introduction

Recommend a strategy for

introducing a new product.

Four Ps, market analysis, competitor analysis, product portfolio assessment

Entering a new geographic market

Analyze whether a company should expand into a new country or region

Market assessment, supply chain analysis, competitor analysis

Evaluate where a company

Site selection case

should locate a new plant or other facility

Market assessment, supply chain analysis,

competitor analysis Market assessment, supply chain analysis, competitor analysis, structural analysis

Mergers & acquisitions

Whether a particular acquisition would be advisable.

Competitive response Changes in government/regulato ry environment Entering a new market

Recommend how your client should react to a move by its competitor

Market assessment, supply chain analysis, competitor analysis, structural analysis Market assessment, supply chain analysis, competitor analysis, structural analysis, regulatory analysis

Changes in government/regulatory environment and its impact Analyze whether a company should enter a new market or develop a new line of products or services.

TSC Software

Market assessment, product portfolio analysis

FMCG product line

8/6/2009
8

Contents

1 2

Case interviews: An overview Case frameworks

3
4

Example cases
Guesstimates

Brain teasers

CASE INTERVIEW GUIDE

Case frameworks (1/11)

Basic case frameworks

Cost benefit analysis
Internal Vs. External market factors

Fixed Vs. Variable costs

Opportunity costs Financial statement analysis

8/6/2009
10

CASE INTERVIEW GUIDE

Case frameworks (2/11)

Net present value

Jim Hernandez is the CFO of Western Manufacturing Corp., an automobile manufacturer. The company is considering opening a new factory in Ohio that will require an initial investment of $1 million. The company forecasts that the factory will generate after-tax cash flows of $100,000 in Year 1, $200,000 in Year 2, $400,000 in Year 3, and $400,000 in Year 4. At the end of Year 4, the company would then sell the factory for $200,000. The company uses a discount rate of 12 percent.

8/6/2009
11

CASE INTERVIEW GUIDE

Case frameworks (3/11)

Porters five forces

How attractive is the luxury handbag market?

Capex? Brand? Manpower? Med

How many suppliers? Differentiation?

How many buyers? Switching costs?

High

High

Substitute? Other products?

Low

How many players? Market sizes? Value or Volume?

Low

8/6/2009
12

CASE INTERVIEW GUIDE

Case frameworks (4/11)

SWOT

Strengths/Weaknesses

Opportunities

Threats

Brand, Size, Man-power, Subsidies, Geographical locations, Patents, Business model, dependencies, seasonality, product characteristics

Leverage able traits, Anticipated consumer preferences, Niche markets, Mass markets

Regulatory frameworks, Licensing, PR, Competitors

8/6/2009
13

CASE INTERVIEW GUIDE

Case frameworks (5/11)

Mckinsey 7 S

Staff

Strategy
Skills Structure
Competitive advantage of the firm

Style

Systems
Shared Values

8/6/2009
14

CASE INTERVIEW GUIDE

Case frameworks (6/11)

Product life cycle

8/6/2009
15

CASE INTERVIEW GUIDE

Case frameworks (7/11)

4P

The price a firm sets for its product or service can be a strategic advantage. For example, it can be predatory (set very low to undercut the competition), or it can be set slightly above market average to convey a premium image. Consider how pricing is being used in the context of the case presented to you

The physical location of a product or service can provide an advantage if it is superior to its competition, if it is easier or more convenient for people to consume, or if it makes the consumer more aware of the product or service over its competition. In the context of a business case, you may want to determine the placement of the product or service compared to its competition.

PLACE/POSITION PROMOTION

PRCIE

The product or service may provide a strategic advantage if it is the only product or service that satisfies a particular intersection of customer needs. Or it may simply be an extension of already existing products, and therefore not much of a benefit. Try to tease out the value of the product in the marketplace, based on the case details you have been given.

With so much noise in todays consumer (and business to business) marketplace, it is difficult for any one product or service to stand out in a category. Promotional activity (including advertising, discounting to consumers and suppliers, celebrity appearances, etc.) can be used to create or maintain consumer awareness, open new markets, or target a specific competitor. You may want to suggest a promotional strategy in the context of the case you are presented.

PRODUCT

8/6/2009
16

CASE INTERVIEW GUIDE

Case frameworks (8/11)

4C

CUSTOMER

How is the market segmented? What are the purchase criteria that customers use? COST

What kind of economies of scale does the client have? What is the clients experience curve? Will increased production lower cost?

What is the market share of the clients? COMPETITION CAPABILITY What is its market position? What is its strategy? What is its cost position? Do competitors have any market advantages? What resources can the client draw from? How is the client organized? What is the production system?

8/6/2009
17

CASE INTERVIEW GUIDE

Case frameworks (9/11)

BCG

8/6/2009
18

CASE INTERVIEW GUIDE

Case frameworks (10/11)

Value drivers (M&A framework)

8/6/2009
19

CASE INTERVIEW GUIDE

Case frameworks (11/11)

Other frameworks
Value chain analysis
Core competency analysis

2X2 Analysis

Warning: Interviewers instantly recognize when candidates apply standard frameworks While this is ok, the only thing which sets one interviewee apart from another is his/her ability to apply their unique analytical faculties. So Beware!

8/6/2009
20

Contents

1 2

Case interviews: An overview Case frameworks

3
4

Example cases
Guesstimates

Brain teasers

CASE INTERVIEW GUIDE

Example cases (1/6)

Example cases
A major airline is considering the purchase of 24 new planes. They are unclear how this purchase will affect their business performance in the short term as well as the long term. You are the Senior consultant, meeting with the Operating Committee for the first time. I am the Chief Operating Officer of the company. What would you need to know from me in order to assess the situation? Find details of the purchaseStaggered, serial, or at once.What costs?

Current situation..how many planes in the fleet? What will happen to old ones?

Existing industry metrics to assess profitabilitydevelop your own

Find profitability, Cost of capital, Net present value

Spend some time on competitor response

8/6/2009
22

CASE INTERVIEW GUIDE

Example cases (2/6)

Example cases
You are the consultant to a company that produces large household appliances. Over the past three years, profit margins have fallen 20 percent and market share has tumbled to 15 percent of the market from 25 percent. What is the source of the companys problems?

Characterize the market place, Product life cycle? Economy

Discuss manufacturing process, New plants? Some sudden costs?

Competitors? Any significant changes in the competitive landscape

4 P, 4 C

Summarize and recommend

8/6/2009
23

CASE INTERVIEW GUIDE

Example cases (3/6)

Example cases
A restaurant owner is currently setting up a new restaurant and making some basic decisions on how to fit it out. Today he is making a decision on the facilities to place in the restrooms for customers to dry their hands. Initial research suggests that he has three options paper towels, roller towels and hot air dryers. What should he consider in his decision-making process? What kind of restaurant? Customer traffic? What is the general trend?

What are the fixed and variable costs for each option

Break even, cost-benefit

Choose an option

Summarize and recommend

8/6/2009
24

CASE INTERVIEW GUIDE

Example cases (4/6)

Example cases
You are advising a credit card company that wants to market a prepaid phone card to its customers. Is this a good idea?

Fond out about companyown brand? Do competitors provide similar services?

Expenses associated with the card.what is the revenue model?

Guesstimates about costs and revenues

Regulatory frameworks, Porters

Summarize and recommend

8/6/2009
25

CASE INTERVIEW GUIDE

Example cases (5/6)

Example cases
The Star Trek transporter has just been invented. Spell out some of the effects on the transportation industry.

Find out how the thing works..specifics, technical aspects

What is going to be the price, and distribution

Segment transportation industry into various verticals

Analyze impacts on each vertical

Summarize and recommend

8/6/2009
26

CASE INTERVIEW GUIDE

Example cases (6/6)

ADL Interview cases

Your client is an insurance company. They want to expand to foreign markets. What do you recommend?
Your client is a data image capturing firm. They want to shut down the business. What do you recommend?

8/6/2009
27

Contents

1 2

Case interviews: An overview Case frameworks

3
4

Example cases
Guesstimates

Brain teasers

CASE INTERVIEW GUIDE

Guesstimates (1/4)

Top down framework

Population factor

Segmentation factors

Frequency factor

Final answer

8/6/2009
29

CASE INTERVIEW GUIDE

Guesstimates (2/4)

Example
How many red cars in Delhi?
What is the number of riding helmets sold in India?

What is the market of handkerchiefs in India?

How many liters of milk is sold each day? How many movies made in India each year?

8/6/2009
30

CASE INTERVIEW GUIDE

Guesstimates (3/4)

Top down framework

Population of Delhi Population factor

Car owner population Segmentation factors

Car owning frequency Red car frequency Frequency factor

Answer Final answer

8/6/2009
31

CASE INTERVIEW GUIDE

Guesstimates (4/4)

Top down framework

Population of India Population factor

Two wheeler owner Segmentation factors

Helmet owning frequency Helmet replacement frequency Frequency factor

Answer Final answer

8/6/2009
32

Contents

1 2

Case interviews: An overview Case frameworks

3
4

Example cases
Guesstimates

Brain teasers

CASE INTERVIEW GUIDE

Brainteasers (1/1)

1. Why are manhole covers round?

2. The power has gone out in your hotel room, and it is pitch black. You have 11 white socks and 10 black socks in your suitcase. (Its a long-term engagement.) You must put on a matched pair of socks, or youll look terrible at your presentation! How many socks must you pull from the drawer to be assured of a matched pair? 3. You are in a room with three light switches. Each controls one of three light bulbs in the next room. You must determine which switch controls which bulb. All lights are off. You may flick only two switches and enter the room with the light bulbs only once. How would you determine which switch controls which light bulb? 4. You are in a rowboat on a lake with the anchor dropped. You pull up your anchor. Does the water level in the lake rise, lower, or stay the same? 5. You have 12 balls. All of them are identical except one, which is either heavier or lighter than the rest. The odd ball is either hollow while the rest are solid, or solid while the rest are hollow. You have a scale, and are permitted three weightings. Can you identify the odd ball and determine whether it is hollow or solid? 6. You are faced with two doors. One door leads to your interview (thats the one you want!) and the other leads to the exit. In front of each door is a consultant. One consultant is from a firm that always tells the truth. The other is from a firm that always lies. You can ask one question to decide which door is the correct one. What will you ask?

8/6/2009
34

CASE INTERVIEW GUIDE

Feedback
Suggestions

Brickbats
Comments

8/6/2009
35