Case Interview How does the interviewer evaluate

Case Interview

How does the interviewer evaluate you? particular framework analytical abilities 2

What to Expect Part 1: Getting to Know You Part 2: Prove Yourself to Me Part 3: Here Comes the Case. . . 3

Five Categories of Consulting cases 1. Market Sizing 2. Business Operations 3. Business Strategy 4. Brainteasers 5. Other 5

Market sizing What the Interviewer Wants to Know • Are you allergic to numbers? • Can you identify key drivers, make assumptions, and work out a reasonable answer? • How resourceful and clever are you? Classic Questions • How many paint stores are there in the United States? • How many manhole covers are there in Manhattan? • What is the market for personal computers likely to be in 15 years? 6

Business operations What the Interviewer Wants to Know • Do you understand basic business issues/internal relationships, equations and concepts? • Do you have a nose for the key issues? • Can you come up with and present a compelling solution? • Can you identify and use an appropriate framework? Classic Questions • A trucking company operates its fleet at only 85 percent capacity. What’s going on? • A petroleum company has a new environmentally friendly gasoline. How should it price and market the product? 7

Business strategy What the Interviewer Wants to Know • Can you identify key strategic issues for a business and relate them to core competencies and mission? • How are you at industry/company/product analysis? • Can you handle the complexity of a full-blown strategy-type case? • Can you develop recommendations for action based on your analysis? Classic Questions • A bank is thinking about going into the brokerage business. Should it? • A large, diversified petrochemical company wants to fend off a hostile acquisition bid. What should it do? 8

Brainteasers What the Interviewer Wants to Know • Can you think “out of the box”? • How creative are you when confronted with an unusual problem? • Do you like intellectual exercises? Classic Questions • Why are all computers putty gray? • Why are manhole covers round? • Tell me all the different ways in which you could determine whether the light • inside a refrigerator is still on after the door is closed. 9

Other case types What the Interviewer Wants to Know • Did you really do what you said on your resume? • How much did you learn from your previous work experiences? • How’s your macroeconomics training? • How do you handle unexpected territory and nonbusiness constraints? • Can you analyze and apply frameworks to other problems? Classic Questions • Your resume says that you opened a distribution network in Mexico. • How would you apply what you learned there to opening a similar network in Thailand? 10

Consulting Framework Toolbox (Wet. Feet mini-MBA program) “Deciding which framework/structure/road map to use may indeed be one of the most difficult parts of the case interview” (Wet. Feet Insider Guide. Ace Your Case! Consulting) A structure is used for a sample case allows: ü to organize your thoughts ü to analyze the critical issues ü to answer the set of questions: What does the consulting firms look for? How to survive the interview? How to attack these case question? How to apply a framework to answer the question? 11

Consulting Framework Toolbox A structure at least in the complex “There are 3 key questions that need to be answered here: A, B, and C. ” Choose a framework Porter’s Five Forces Identify it upfront Walk your interviewer through it step-by-step § which you are comfortable § which addresses the interviewer’s question 12

Consulting frameworks Internal/External Cost/Benefit Supply/Demand • The Firm vs. the Market/The Firm vs. the Competitive Environment • Evaluating New Business Opportunities • Business Strategy • Market Analysis • Business Strategy • Product-Pricing 13

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Supply/Demand Framework 15

The Good Old 2 x 2 16

Business Strategy and New Market Opportunity Questions 17

Marketing and New Product Development Questions 18

Porter’s Five Forces Application: Firm Strategy and New Business Opportunity Questions Barriers to Entry Bargaining Power of Buyers The Nature of the Rivalry Among Firms Bargaining Power of Suppliers The Availability of Substitute Products 19

Firm Analysis Application: Business Strategy Questions INTERNAL FACTORS EXTERNAL FACTORS Objectives, values, and mission Systems and resources Strengths and weaknesses Competitor activities COMPANY Industry trends Outside constraints 20

Financial Analysis framework Application: Product-Profitability Questions 21

Financial Analysis framework Application: Product-Profitability Questions 22