Cracking the Case A Consulting Interview Primer November 29, 2006
Copyright © 2004 Deloitte Development LLC. All rights reserved.
Agenda
Introductions Introduction s What is a case? What are companies looking for in the case interview? How do you approach a case? Practice
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Copyright © 2006 Deloitte Development LLC. All rights reserved.
What
is a case?
A case is a hypothetical business issue or dilemma that requires you to:
Analyze Analyz e the situat situation ion Identify Identi fy key business business issues issues Summarize Summar ize findings findings and takeaways takeaways Outline Outlin e next next steps
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What
is a case interview?
Cases are a key part of the interview process and are: Relevant to a broad spectrum of employment opportunities (marketing, investment banking, consulting) A critical component of the recruiting process at many firms An opportunity to demonstrate your flexibility, your analytical ability, your experience, your poise« and your creativity
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ecent examples of case interview questions R ecent
What are the marketing implications of a partnership between ChevronTexaco and 7-Eleven in which the gas would be supplied by Chevron and the convenience store would be managed by 7-Eleven? What strategy should a regional grocery chain pursue to combat/survive against the imminent arrival of Wal-Mart Supercenters in the region? What are all the uses you can think of for Hidden Valley Ranch salad dressing? How would would you forecast for ecast revenues for a new drug for f or breast cancer?
These questions were all asked in case interviews at Kellogg in 2005 4
Copyright © 2006 Deloitte Development LLC. All rights reserved.
What
are companies looking for in the case interview? Analytical Skills
P roblem definition definition and soluti solution on structuring Analytical ability ± Quantita Quantitative tive capabil capabilities ities ± Dealin Dealing g with apparent apparent deaddeadends Ability to . . .
People Skills
Communication skills ± Lis Listen tenin ing g ± Ques Questio tioning ning ± Prese Presentat ntation ion / spe speakin aking g Business acumen Confidence / poise
± Synt Synthesi hesize ze data data ± Thin Think k creativel creatively y ± Defe Defend nd hypothes hypothesis is
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How to crack the case 1. Understand the issue; ask clarifying questions as needed 2. Identify and test the underlying underlying assumptions assumptions 3. State your null null hypothesis hypothesis 4. Select an appropriate appropriate analytical analytical framework 5. Use the selected framework to identify key business issues (Keep your eye on the clock!) 6. Summarize key issues and findings findings 7. Outline your final recommendation and the expected results or impact
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Choosing a framework
You will probably need a framework to come up with a good answer to a case question Choose a framework that fits the problem; but don¶t follow it blindly Don¶t be afraid to create your own framework Don¶t fr amework ± as long as it makes sense A framework provides structure to guide your analysis of the case and helps you to identify a good solution
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Using a framework to problem
help
structure the
Competitive strategy ± Porter¶s 5 (or 6, or 7) Forces ± SWOT Analysis (Strengths, Weakness, Opportunities, Threats)
Organizational ± 7-S (Strategy, Structure, Systems, Style, Staff, Skills, Shared Values)
Marketing ± 4 P¶s (Product, Price, Place, Promotion) ± 3 C¶s (Company, Competitors, Customers) ± Growth / Share Matrix
Profitability ± Profit = Revenue ± Cost ± Revenue = Price x Quantity ± Cost = Fixed Costs + Variable Costs
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Logical structuring is essential
Logic should be MECE MECE ± Mutually Exclusive, Collectively Exhaustiv Exhaustive e ± Structure of your argument is rigorous, non-overla non-overlapping, pping, and complete
Structure your answer as well as your thinking ± Say what you¶re going to say, say it, and say what you said ± Don¶t lose sight of your structure when speaking ± Be consistent consistent and convincing in the message you¶re trying to get across
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Approach: Practical tips
Take a deep breath ± Take a minute or two to structure your approach ± Think before you speak ± Speak what you are thinking
Ask questions ± You have to know the question before you can provide an answer ± Information Information is generally provided only when it is requested ± Be ready to explain the logic behind your question if challenged ± The ability to ask intelligent questions is a key professional skill
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Approach: Practical tips
Write it down ± Structure your your notes in line with the selected framework ± Use charts and diagrams to better be tter communicate communicate your ideas
Show your reasoning ± Talk the interviewer through your thought process ± You are being evaluated on the process as much as the answer
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A Big Decision for LinkedIn You are working with the CEO of LinkedIn, a web-based network with over 5 million members, and she faces a big decision that she would like your help thinking through. through. The company has outpaced its competitors competitors by building the the most popular online business network, but has very little lit tle revenue to show for it. After a cross-functional cross-functional brainstorming effort, two ideas for increasing revenue rose to the surface: 1. Keep the existing basic (and (and free) features of the the LinkedIn product, product, but roll out a series of new and improved services for a monthly fee of $15 ± the services would target infrequent users 2. Allow members to contact one one another without without using an intermediary for a transactional transaction al fee of $5
Due to resource resource constraints, constraints, LinkedIn can only only pursue one of of the two ideas. How should you you approach choosing choosing one of the options for increasing revenues? revenues? What decision should the CEO make?
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LinkedIn: Possible response
1) Understand the issue; ask clarifying questions as needed
Why aren¶t aren¶t they currently currently very profitable?
2) Identify and test the underlying assumptions
There have have been no changes changes to the original services offered by LinkedIn Major macroeconomic macroeconomic factors
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3) St Stat ate e yo your ur nu null ll hy hypo poth thes esis is
Charge Char ge pe perr tr tran ansa sact ctio ion n be beca caus use e the target audience is larger
4) Select an appropriate analytical framework
Product, Place, Price, Promotion Promotion Company, Competitors, Customers
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LinkedIn: Possible response
5) Use the selected framework to identify key business issues
Ease of implementa implementation tion Extent to which which it addresses addresses the problem Size of the benefit
6) Summarize key issues and findings
You might abandon a certain % of your current market if you charge per transaction
7) Outline next steps and your final recommendation
Who to contact How to implement What¶s the timeline timeline
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Feedback Problem definition and solution structuring Analytical ability ± Quantitative capabilities ± Dealing with apparent dead-ends
Ability to . . . ± Synthesize data ± Think creatively ± Defend hypothesis
Communication skills ± Listening ± Presentation / speaking
Business Acumen Confidence
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Starbucks Fresh Ground Coffee
You have just been hired by Starbucks as a Brand Manager in charge of fresh ground coffee beans. Your sales are declining. declining. What would you do to reverse the trend?
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Starbucks: Possible response Is the decline driven by a general category decline or a share decline for Starbucks Ground Coffee? Why is share or category declining? ± Substitutes ± Change in consumer habits
If category is declining, determine strategy to increase category usage If share is declining, determine why (explore 4Ps): ± Price ± Has price changed relative to competition? ±P Product roduct ± Has the quality quality of the product changed? changed? Are there any competitive competitive product upgrades/new products? ± Promotion ± Have Have my promotions/advertising promotions/advertising changed or decreased? Any new competitive promotions/advertisi promotions/advertising? ng? ± Placement - Have I lost lost any distribution? Have competitors competitors gained distribution?
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Case interviewing: Do¶s Listen to your interviewe Listen interviewer, r, take your time and make sure you y ou understand the question Ask questions to gather background information Develop an approach and a hypothesis and bounce questions off your interviewer to test them out Show the interviewer what you¶re thinking ± talk through your thought process Once you have identified some underlying problems, formulate recommendations and be prepared to defend them Finally, when closing your answer, define the problem, actions you would take, why you would take them, and the expected results 18
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Case interviewing: Don¶ts Don¶t jump jump into your answer right away Don¶t make assumptions without clarifying with the interviewer Don¶t worry about the right answer, worry about the right approach Don¶t explicitly explicitly or exclusi exclusively vely rely r ely on canned frameworks Don¶t appear appear flustered f lustered or frustrated
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Questions?
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Contact information Renee Martin, On Campus Lead
[email protected] Rob Carter, Kellogg Recruiter
[email protected]
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