ICON Case Book 2017 - Volume 7 (A) PDF

IIM BANGALORE
CASEBOOK
Volume 7(a)
Compiled by
ICON-IIMB CONSULTING CLUB
0
FOREWORD
This casebook documents the interview experiences of students across consulting firms to
assist the students of IIM Bangalore in their preparation for case interviews during
placements. The aim of sharing these experiences is to inform students about the case-
interview experiences of past batches, and to accordingly help them prepare for their
placements. The experiences listed below are not necessarily the best way in to handle case
interviews. They only serve to give students an idea as to what to expect when they walk into
a case interview. Every individual could have his / her own unique way of tackling consulting
interviews, each of which could be correct.
This document has contributions from students who appeared for campus interviews
conducted by consulting firms during summer placement process over the past five years. The
interview experiences have been sorted firm-wise.
Special thanks to all the contributors and all the very best for summer placements!
Best regards,
Team ICON 2017-18
IIM Bangalore
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CONTENTS
FOREWORD ............................................................................................................................................. 0
CONTENTS ............................................................................................................................................... 2
INTRODUCTION ....................................................................................................................................... 3
WHAT TO PREPARE ................................................................................................................................. 3
A. Case Preparation ............................................................................................................................. 3
B. Fit Questions ................................................................................................................................... 4
HOW TO PREPARE ................................................................................................................................... 4
B. Fit Questions ................................................................................................................................... 5
WHEN TO PREPARE ................................................................................................................................. 5
B. Fit Questions ................................................................................................................................... 6
INTERVIEW PROCESS............................................................................................................................... 6
A. Resume Short Listing ....................................................................................................................... 6
B. Interviews ........................................................................................................................................ 6
Practice Cases ...................................................................................................................................... 8
SAMPLE CASE ........................................................................................................................................ 10
MAJOR PLAYERS IN THE INDUSTRY ....................................................................................................... 15
INDUSTRY WRITE-UPS ........................................................................................................................... 19
Aviation Sector ...................................................................................................................................... 19
Banking, Financial Services and Insurance (BFSI).................................................................................. 21
Construction Sector .............................................................................................................................. 23
E-Commerce .......................................................................................................................................... 25
FMCG Sector ......................................................................................................................................... 27
Hospitality ............................................................................................................................................. 29
Entertainment & Media Sector ............................................................................................................. 31
Oil & Gas Sector .................................................................................................................................... 33
Pharma .................................................................................................................................................. 34
Power Sector ......................................................................................................................................... 36
Telecommunication Sector ................................................................................................................... 37
Cases 2017 ............................................................................................................................................ 40
2
INTRODUCTION
Over a period of time, a career in consulting has become the numero uno aspiration for a majority of
management students across B-schools in India and abroad. The adrenaline rush to solve a gamut of
intriguing business problems faced by a wide spectrum of industries is enticing enough for most
students to want to explore the intricacies of the consulting sphere.
Considering industry trends and student expectations, many consulting firms visit IIM Bangalore
campus every year for the recruitment process; although the main thrust is on summer placements in
different domains like strategy consulting, IT consulting, operations consulting and analytics.
Experience across the globe has given evidence that an internship with consulting firms gives the
student an insight into the industry on a real-time basis and helps consulting enthusiasts make
informed career decisions.
The selection process is predominantly based on resume-based shortlist, followed by case interviews.
Thus, when the competition is amidst the best, it becomes imperative to have a fundamental
understanding of the case interview process of major recruiters. The case interview processes of most
of the companies are conducted in a similar manner and follow a similar pattern.
ICON, IIMB’s consulting club seeks to equip IIMB’s students with a sound understanding of the
consulting industry and provide valuable insights into the entire process as they gear up to tackle the
upcoming summer placement interviews. In a constant endeavor to practice learning by experience,
the following pages present the “as it is” interview experiences of our contributors during their
summer selection process at IIMB. This case interview guide aims to provide a preview into the
summer selection process of top consulting firms like McKinsey & Co., Strategy& (formerly Booz &
Co.), BCG, AT Kearney, Accenture, Bain & Co., Deloitte, Roland Berger etc.
ICON through this guide has endeavored to assist the students in understanding the consulting
industry, the process involved in selection, the detailed preparation guidelines. The interview
experiences will help the students develop a fair idea of what to expect in the interviews and how best
to approach the probable case solutions.
WHAT TO PREPARE
A typical interview for a consulting firm is a mix of “case” and “fit”.
A. Case Preparation
Cases are arguably the most important aspect of any consulting interview. A good performance in a
case puts you in a very favourable position with the firm; an excellent one virtually guarantees an
offer.
A typical case is a business situation, requiring strategy formulation in order to fix a problem or
enhance efficiency (optimization). It can vary from a detailed problem statement, supported by several
facts to a one-liner conceptual statement with a very broad problem description along with few, if any,
facts available. Case interviews are designed to help the interviewer assess the candidate on the
following parameters.
i. Thinking process – The interviewer constantly evaluates the candidate as the latter thinks
through the problem
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ii. Structuring – This involves breaking down the problem into simple, logical components and
structuring a broad approach framework.
iii. Analytical and Quantitative skills – A typical case problem requires application of basic
quantitative concepts, achieved through an analytical approach to the problem in hand.
iv. Demeanour – In addition to the above, interviewer also judges the candidate on his poise and
maturity.
Finally, cases also provide the candidate a flavour of the consulting world in terms of kind of work they
can expect in the industry.
B. Fit Questions
The objective of these questions is to determine the degree of fit between the candidate and the firm.
This part of the interview serves the following purposes:
i. Helps interviewer know more about the candidate, his life-story and ambitions
Explore candidate’s interests, and how they “fit” with those of firms
Assess how coherently the candidate can present himself in a conversation
In parallel to the above aspects, the candidate is continuously assessed on his communications skills
as well. Typically, a very good performance in both parts, i.e. case and fit, is essential for a final offer.
Very strong performance in one section can compensate for average performance in the other to a
certain extent; but a minimum decent show in both aspects of the interview is mandatory to be
considered for the next round/final offer.
HOW TO PREPARE
A. Case Preparation
Resources
ICON Casebook
Case examples provided on McKinsey, BCG, Bain, and other firm websites Casebooks from other
business schools
Case Study group
Typically, a group of 3 – 4 PGP‐I students to discuss cases and conduct case interviews among
themselves
A thorough preparation of 10‐15 cases is recommended through this mode
Ideally, all members should be focused on consulting as the career option. It ensures consistent,
enthusiastic participation from all members throughout the preparation period.
Diversity / uniformity in academic background and work experience within a team do not matter.
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What indeed matters is group dynamics, the amounts of trust members have in each other, so as to
pass honest feedback to others and accept the same in a constructive manner. The purpose is lost if
members do not believe in other members’ sense of judgment and ability to pass on accurate
feedback.
A couple of cases can be prepared with some other case study groups to break the monotony and, in
the process, obtain varied feedback.
Miscellaneous
Mock interviews and case workshops are also conducted by PGP‐II students, typically the summer
interns from consulting firms
Self-study of solved cases, when group activity is not possible, is beneficial
Knowledge of basic statistics, such as population counts, can prove to be enormously helpful
One should not quit until he or she becomes 100% confident in case analysis
Sector research, especially those in which interviewers specialize, can come in handy
Equally important is to gain basic understanding of the sectors in which the candidate has undertaken
any academic projects in the past
B. Fit Questions
Typical questions preparation
A list of ~40 questions is generally circulated by the Placement committee towards the end of
Term‐I.
Interview questions from summer interview process of previous year should also be prepared.
Company Research
It’s recommended to obtain a basic knowledge of the company operations, its history, culture and
vision. It helps in aligning one’s responses on appropriate lines as well as asking relevant
questions during the interview
Vault guides
Limited help from mentors appointed by consulting firms (for shortlisted candidates only)
Company’s websites (and neutral sources such as Wikipedia!)
WHEN TO PREPARE
Considering the importance of the entire process and the great deal of preparation required, sufficient
time should be invested.
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A. Case Preparation
Case preparations are done best in case groups of 3-4 people, which should typically be formed as the
students begin their Term-II. This should give the students sufficient time of about 20-25 days for
preparation before the summer’s selection process kicks off. It is advisable that students form their
case groups well within time so as to avoid last minute bottlenecks of not finding the right case
partners.
B. Fit Questions
Another important aspect as discussed above is preparation of answers for the fit questions. Answers
to these can’t be framed at the last moment, as it requires great deal of introspection and successive
reviews to frame the best possible answer. Hence, it is in the interest of the students to start working
on the first draft as early as possible, preferably from the beginning of Term-II.
INTERVIEW PROCESS
The selection process has following stages:
A. Resume Short Listing

All heads are looked at, and the base criteria need to be passed in each of the heads. The base criterion
depends on the batch strength and is not an absolute cut-off. After crossing the base cut-off, 1-2 spikes
are looked at. A Spike is defined as a unique attribute in a resume ‐ something that is not shared by
anyone else in the batch.
B. Interviews
Number of interviews varies across candidates and companies. The interviews for all consulting firms
are mostly case based. These are not stress interviews. The interviewer directs the candidate through
the cases, providing leads and hints, to understand your approach to a particular situation.
As discussed in the last section, a typical consulting interview has two parts – “fit” and “case”.
Generally, a consulting interview lasts for ~40 - 45 minutes, with following being the breakup
Fit Interview: 15 – 20 minutes
Case Interview: 20 – 30 minutes
Fit Interview
A fit interview is taken to assess your nature and check your suitability to the firm’s work culture.
Fit Interview involves personal questions – Typically of the kind “About yourself”, “Why do you want
to join a consulting firm?” etc.
A typical consulting interview starts with a few personal questions, lasting for 5 – 10 minutes.
This initial phase is used to establish rapport. These questions are used to gauge whether the
candidate fits the company culture.
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Personal questions can also be asked during and after the case, hence be prepared for a question
when you are least expecting it.
The interviewer forms an impression of the candidate after going through the resume and tries to
verify it during the interview based on the candidate’s responses to these questions.
The fit questions are not directly addressed, but are asked through a chat session, where the
interviewer will try to understand the kind of person one is. You are less likely to be asked direct
questions like “How will you fit in the company culture?” Instead, if a certain consulting firm stresses
on a team culture, you will be judged on how good a team player you are.
DO’S AND DON’TS OF A FIT INTERVIEW
DO’s:
Adopt a calm and composed manner throughout the interview – Consultants spend a lot of time in
direct contact with the client where this aspect of the personality is very essential
Be yourself – projecting a false image of being someone else does not work. The person on the other
side of the table is a seasoned player and would easily spot pretence.
Present a coherent picture of yourself in an articulate manner
Be confident – Nothing would compensate for shaky responses and a fumbling tone Be friendly and
show that you can present your thoughts in a clear concise manner. Consider case solving as a fun
experience. The recruiter should be convinced that you enjoy the job
Display a good knowledge of the firm, and how it fits in your career goals
Be honest – Admit if you don’t have knowledge of the topic interviewer wants to discuss
Express your own expectations and interests with respect to the firm
DON’Ts:
Get defensive when the interviewer presents a counter argument
Feign interest in subjects just to impress the interviewer – artificial poses don’t carry weight.
Appear confused about joining a consulting firm – your career aims should be clearly outlined.
Narrate stories that present contradictory images of who you are.
Appear ignorant about the position or the firm for which you are being interviewed.
Case Interview
CASE
Consulting firms use cases to gauge how well the candidate will perform on the job and if he/she will
like consulting as a job. The case is given as a 3-5 statement caselet. The caselet is either number based
or strategy based. (Guesstimates may be given either as a part of number based or strategy based
case). The caselet gives the objective of the case.
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APPROACH
Take 1-3 minutes to structure your thoughts. You are not judged on the final solution that you
recommend; but on your approach to solve the problem
Feel free to note down your thoughts, take your time to think before coming up with a solution
Make sure that you have touched upon all the areas concerned to the problem
Make the session interactive by asking questions, instead of taking it as a test. The interviewer would
guide you to the solution by giving hints if you approach is wrong
Industry knowledge is not required - ask them questions about the industry, which are relevant to the
case
Making assumptions is a necessity- always confirm their validity
Try to have your own approach to the problem. The standard frameworks can act as a guideline. They
would not like rehearsed problem solving approaches
Have your own style of how you are going to approach cases (top-down, bottom-up etc.) Make sure
to listen to the information given properly, before asking questions; keep noting down any extra
information given during the case discussion. You can take time to restructure your approach with the
new piece of information given. Industry knowledge on few important sectors as telecom, IT will be
helpful.
Be calm and try to address the problem based on the hints provided to rectify any errors made. Make
sure to summarize your findings and analysis so that the recruiter has a clear picture of your thought
process
PARAMETER IMPORTANCE
Personal Questions Very Important
Communication Skills Very Important
Approach to Problem Solving Very Important
Final Solution to Case Important
Stress Level Low
Guidance by the interviewer Medium
Practice Cases
A Mobile Handset Manufacturing Company, which has 60% market share want to strengthen their
position and understand where the growth will come from in the next 5 years
A foreign bank wants to start credit card business in India. What options would you suggest?
An upcoming BPO wants to understand the manpower crunch (Supply is less than demand) in the next
five years
An Indian youth channel wants to start a new music magazine. Is it a good venture?
A VC firm needs market size for institutions for music and creative skills (on similar lines of NIIT for
computer skills)
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Increasing efficiency and reducing costs for a call center setup
Selling strategy for condensed milk and packaged milk products in India Infosys is starting BPO services,
how would you control the attrition rate?
Estimate the market for platinum and diamond jewellery in India for a European company.
Feasibility of a corrugated cardboard carton manufacturer going into the paper business (profitability
analysis)
A Telecom call-center BPO couldn’t cope up with the amount of calls it was getting. Figure out the
multiple problems ailing the company and generate methods to solve all of them There is a coffee
shop on the ground floor of a 40 floor building. Guess its monthly revenue
A call centre wants to cut costs by 10 percent. What are the measures?
Entertainment Company in music, planning to launch a magazine. Data given such as expected
readership of other magazines, industry growth, competitor prices
New heart hospital in New Delhi. It would cost X to set it up. What would be the break-even time for
it?
Call center – cut costs per employee by 0.65$
Tractor Company losing sales. 2-minute case. Write 5 possible reasons Chain of stores was losing
business, identify the problem
Petrol pumps, set up on highways. Suddenly, revenues were going down. What might be possible
reasons?
How would you make quizzing a national pastime? You are a consultant to the government
Movie producer has come to you with four scripts. You need to choose one. Which one and why?
What are the parameters you will use to evaluate?
Confectionary major is planning to get into India. Should he buy a factory that is on offer, or should he
enter on his own?
TEM of mobile phones. Sales of your handsets have gone down. Your dealer says that this is because
competitors’ prices are better. What do you do?
How much investment is required in infrastructure in India in the next 5-6 years
An Indian private bank wants to go global. Which countries should it focus on and what should be its
strategy?
How much time would it take a 100 bed heart care hospital to break even and how many customers
would they require to do so
A box manufacturing company which made a better quality cardboard box (at a higher cost) as
compared to local manufacturers. Analyze ways in which they could cut costs and communicate the
value proposition of their product
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Various options that could be explored for a potential market entry (acquisitions, tie-ups, green-field
etc) of an international chocolate and confectionery manufacturer in India
A mobile handset manufacturer, which had a leading position in the market but its retailers were
threatening to shift to other brands because they weren’t making as much money on the sale of this
brand. Examine possible reasons for this and suggest ways to overcome the problem
Market Entry Strategy Case in Retail. Develop a 2 by 2 framework to evaluate the prospects of 3 lines
of retail business – Baby Care Products, Soft Clothing like screens, bed spreads, etc. and Leather
Accessories
Guesstimate – demand for a Mosquito repellent band that can be worn on the hand in India
SAMPLE CASE
(This case was asked during a case interview to Aditya Muralidhar by Bain & Co. in Summers’15. It
explains the process on how a case interview is usually conducted and should be mocked while
preparing for case interviews in groups of 3-4.)
Client & service overview:
Case interviewer to describe the Client situation to the interviewee
The Client’s company was founded in 2009 by a set of Indians who were targeting computer technical
support for the aging population in the United States. The customers were buying laptops at an
average price of $150 apiece and were obtaining nine-month hardware and three-month software
warranties. The founders spotted a whitespace in the market, as the customers were seen to require
support beyond the provided period and they targeted common computer issues including
malfunctioning software, drivers, etc. as part of their solution portfolio.
The service was modelled as a subscription-based offering, which would give the customer year-round
remote support in any software related issue. Focusing on the bottom-line, the founders decided not
to target traditional Above-the-line (ATL) channels and took the digital marketing route. Owing to this,
the customer purchase cycle was different from that of the traditional tech support businesses.
Traditionally, tech support was sold either through retail channels or directly bundled with the device.
However, for the Client, the customers were first attracted to the website through online
advertisements and search engine marketing. Subsequently, interested customers would then place a
call to the number listed on the website and speak with a customer care executive. The customer care
executive would then engage the customer to understand the issues with the computer and suggest
a solution for the problem. All this is free of cost. Upon fixing the problem, the remote technician
would then pitch the annual subscription to the calling customer and would subsequently sell the
service. At the end of a year of subscription, the customer has the choice to renew or cancel the
service.
Case questions:
Proceed to subsequent question only upon completing previous ones
What would the price of this service be for the company?
A competitor, say Dell, has priced a similar service lower than the estimated pricing in Q1. What is a
profitable pricing strategy that you would adopt and why would this work? Also, what are the different
ways that one prices a product or service?
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At a high-level, what are some of the problems that you could anticipate in such a business?
What are the opportunities that exist for the company to gain further revenue?
Data / Hints:
To be provided only if the interviewee expressly requests for them or if the interviewer wishes to guide
the interviewer

Cost per click : 50c
Click to landing page conversion : 10%
Landing page to pre-sales call conversion : 10%
Cost per 60 min. of call (pre-sales) : USD 12 per hour
Average duration of call (pre-sales) : 60 min
Pre-sales call to buying conversion : 10%
Cost per 60 min. of call (pre-sales) : USD 10 per hour
Average duration of call (post-sales) : 60 min
Number of calls per year (post-sales) : 6 calls per year
Margin : 20%
A competitor, say Dell, has priced a similar service lower than your estimated pricing. What is a
Competition price : $250

Target pricing for company : $200 (maximum)
Customer retention : 30%
No additional data / hints

What are the opportunities that exist for the company to gain further revenue (Hints)?
Who is the target population? Elderly persons
Apart from emails, what are they likely to use the internet for? Information gathering, games,
gambling
What is likely to be found on several gaming sites? Malware
Answers
To be provided only if the interviewee expressly requests for them or if the interviewer wishes to guide
the interviewer

The approach is to find the ultimate cost of a “buying customer” and apply the margin value to find
the price
First, split the purchase process into “At landing page”, “At pre-sales call”, “At post-sales call” to clarify
and bucket the information.
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At landing page (A): 1 person on the landing page means 10 persons clicked (@10% conversion). Per
click it is 50c, thus, it would cost the company USD 5 to obtain one engaged customer.
At pre-sales call (B): 1 person on the call means 10 persons were on the landing page (@10%
conversion). Per page landing is USD 5, thus, it would cost the company USD 50 to get one pre-sales
call.
During pre-sales call (C): Per call, the duration is 1 hour at USD 12 per hour. Hence, per call it costs
USD 12. To convert one customer to post-sales, you need 10 customers (@10% conversion). Hence,
the pre-sales call cost per converted customer is USD 120.
At post-sales call (D): After the customer bought the service, they will place 6 calls for one hour each
at USD 10 per hour. Hence, the cost of servicing a paying customer is USD 60 per year.
Total cost: Thus, the total cost across stages is USD 50 + USD 120 + USD 60 (A + B + C + D)= USD 230
Pricing: Margin was given to be 20%. Hence, the price is USD 230 / (100% - 20%)
USD 287.5 (Refer The Interview – Quick Note for clarification if needed)
A competitor, say Dell, has priced a similar service lower than your estimated pricing. What is a
Let’s say that the price that we calculated was USD 290. The interviewer tells us that the competitor
has priced it at USD 250 and we want to hit a maximum price of USD 200.
We need to understand that this customer is a repeating customer (accounting for some attrition /
churn rate) and that all the cost need not be recovered in one year.
It is also important to note that in the subsequent years, the cost is only USD 60 per year and this is
the cost of servicing the paid customer (D).
This, let’s say that the average life of a customer is 3 years, the total cost comes to be USD 290 + USD
60 + USD 60 = USD 470. Thus, on a yearly basis, we can target a price point of USD 157, approximately
USD 160, lower than the USD 200 target.
As to how this would work, we need to look at the concept of Customer Lifetime Value, which refers
to the total margins that a company makes from a customer before the customer switches to a
competitor or stops using the service. Given that this is not a one-time payment model, the company
can split the costs over a longer time window, which keeping the annual pricing lower than
competition’s.
With regards to the pricing strategies, at a high level, companies can use:
A cost plus model – Where a markup is added on top of total costs
A customer surplus model – Where the estimated value of the service to a customer serves as the
guide for pricing, or
A competitive pricing model – Where products are priced against their nearest competitors
To give the appearance of structured thinking, look at the purchase lifecycle in each of its stages and
brainstorm on what the problems can be. It is recommended that you communicate your thought
process so that the interviewer does not feel like he is in the dark.
Here are some potential answers by stage:
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Landing page: Customer unable to find the number easily; customer unaware that the phone service
is free
Pre-sales call: Customer calling regarding hardware problems (which cannot be serviced but yet
imposes costs on the company); customer cannot understand the technical support personnel’s
accent; customer calling during closed hours (affecting brand equity); sales person inefficient at
converting the customer (which leads to increasing unrecoverable costs)
Post-sales call: Customer calling regarding hardware problems (which cannot be serviced but yet incur
costs); customer cannot understand the technical support personnel’s accent; customer calling during
closed hours (affecting brand equity); sales person unable to attend to a significant proportion of the
arising problems (indicating the need for training, better recruitment or better diagnoses)
What are the opportunities that exist for the company to gain further revenue?
The interviewee must note that 60 minutes offers significant sales pitching time even in the post-sales
segment for the company to potentially expand into other services.
Again, to approach this in a structured manner, the interviewee must clearly identify the scope of
problem resolution / solution recommendation. Here, the interviewee must once again clarify if
hardware issues can be expanded into. If not, the recommendations should target only software.
Assuming the latter case, the candidate must analyze problems arising from the user’s behaviour and
problems that are extraneous to the user behaviour.
Due to user’s behaviour: The use cases of the customer, such as visiting gaming sites, gambling sites
and adult entertainment sites, should be listed with threats such as malware and viruses being
identified. The technician can then cross-sell licenses to anti-virus packages, from which the company
can gain commission income.
Extraneous to user behaviour: The technician can identify outdated operating system (keep in mind
that this is 2009) and other software versions and can recommend updates, from which the company
can gain commission income.
The interviewee can also hint upon tie-ups with software firms to
understand potential areas of collaboration to, both, improve the company’s technical support
capabilities and to cross-sell products.
The interview
Proceed to the next question only upon completing the previous ones
I was called from the common pool and led to a room with a single interviewer, who was a Partner at
the firm. The following describes interview flows and notable junctures:
Me: Good morning, may I come in?

Partner: Yes. We are in a bit of a hurry apparently, so we don’t we have time for
pleasantries. I suggest we get started. What industry are you familiar with?
Me: I have worked in Consumer Markets at my past consulting firm, which includes
industries of FMCG, eCommerce, fashion and jewellery. I have also dabbled a bit
in agri-business.
Partner: What about tech support? Are you familiar with it?
Me: Not really, but I am sure I can pick things up as we go along.
Partner: Great. So let’s get started. This was an actual case that we were working on. Let
me start off with an overview of the case and we can get into the details
subsequently.
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Interview The partner proceeded to cover the portion in Company & service overview section
Progress described above. The description alone took a good 10 minutes. Note that the
interviewee should feel free to clarify questions when needed, but should take care
not to interrupt too frequently.
Partner: Let’s get to the important part now, I suggest that you take notes.
Me: I’ve been taking notes as we have been going along.
Partner: I will be describing the Customer Purchase Cycle and there will be some numbers.
I hope you can take notes carefully because I would like to avoid repeating the
numbers.
Interview The Partner covered Case Question 1 & Data / Hints 1. During the course of the
Progress calculation, when I was structuring the numbers…
Partner: (Covers my sheet of paper with hand brushing my pen away) Mental arithmetic.
Me: Yeah, okay sure.
Interview After a bit of a jolt, I completed the computations and gave the answer, which was
Progress right fortunately. The Partner proceeded to Case Question 2 & Data / Hints 2
Quick Margins are calculated on the revenue. That is, 20% margin means 80% of the
Note revenues are costs. Thus, when we have cost on hand, we need to divide by 80%
rather than multiple by 20% (of total cost). The latter is the case when we use “mark-
ups”.
Partner: Okay, so let’s get to the main part of the problem.
Interview At a point in this problem, I did not comprehend what the exact question was. An
Tip interviewee should feel confident in explaining what was understood about the
question and ask if it has been understood correctly. In my case, there was an aspect
that I was stuck with and asked the interviewer for 2 minutes to think, which he was
happy to grant. He was also gracious in clarifying an aspect of my understanding, so
it should be noted here that interviewers do not mind helping guide candidates
towards the answer (again, once in a while) as long as they are made aware of the
thought process.
Interview After completing my answer, as detailed in Answers 2, the Partner proceeded to
Progress Case Question 2 & Data / Hints 3
Partner: Okay, so that was the easy part. Let’s get to the main part of the problem.
Interview He proceeded to elaborate on Case Question 3 and 4 in parallel. In Case Question
Tip 4, I was not sure what he was expecting as he wanted “ways to cross-sell and up-sell”,
which I deemed to be a broad question. The interviewer once again was gracious
enough to guide me towards the type of answer that he wanted and in my belief, this
guidance was not taken to reflect poorly on me.
Partner: Give me a minute.
Interview The Partner arose and walked out of the room stating that I can use the time to think
Progress through the two questions. He entered after 5 minutes to take my answer.
Partner: That’s fine. Fair answer. Now tell me, why Bain?
Interview Interviewees should be prepared with the softer questions as the likelihood of being
Tip asked these is high.
Interview After giving my answer, the Partner once again excused himself. Now, this was my
Progress first round of interview and I was not sure at this point how many rounds there
would be with the firm. I was getting worried that subsequent companies might be
filling up their slots and was considering clarifying with the Partner regarding the
subsequent process. Fortunately, however, he concluded the interview at that point
and made the offer.
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MAJOR PLAYERS IN THE INDUSTRY
The following table provides an overview of the major players in the industry.
DISCLAIMER: The data collated in this table is obtained from websites and feedback from past interns.
ICON does not take responsibility for the accuracy of the data. The data was last updated in 2015. This
data is not necessarily required for interviews but provided just for the reader’s knowledge.
Alvarez
&
Accenture Strategy Marshall AT Kearney
Global Scenario
Consultants
2000 5000+ workforce 1700
worldwide
Offices
NA 53 51
worldwide
Countries
NA 19 34
present
Staffing model Regional Regional Global
3 broad service areas

# (management,
industry system integration & 12 17
practices
technology
consulting)
#functional
NA 10 11
practices
India Specific information
India office Bangalore Mumbai New Delhi, Mumbai

locations
Partners 50 partners NA 13
Consultants NA NA 175
15
Managing
NA Sankar Krishnan Vikas Kaushal
Director
Comprehensive Restructuring, M &

solution, beyond A, right-sizing and Strong operations
and manufacturing
strategy, offered to corporate turn- presence
Speciality
clients around
Global brand
recognition due to NA NA
services outside
consulting
Oil & Gas, Consumer

Priorities
NA NA
& retail, Industrial &
Automotive,
technology &
telecom, metals &
mining
Consultant Consultant Associate
Manager Manager Manager
Career
progression Principal
Partner Partner
Partner (Vice -
President)
Bain BCG GEP Consulting
Global Scenario
Consultants
3100 4500 1500+ workforce
worldwide
Offices
50 66 12
worldwide
Countries
32 40 NA
present
16
Staffing model Office Regional NA
# industry 15 20 7 broad service areas

practices
#functional
11 14 NA
practices
India office New Delhi, Mumbai New Delhi, Mumbai, Mumbai

locations Chennai
Partners 17 27
Consultants 160-180 280 NA
Managing
Srivatsan Rajan Neeraj Aggarwal Mainsh Sharma
Director
Private Equity Devising strategy or Procurement, supply

Strategic diligence portfolio chain transformation
Speciality
Provides 6 months
externship period NA NA
(not provided by
other firms)
Challenge
Maintain & establish Mckinsey's market NA
loyal client roster
leadership
Priorities
Keep the lead in PE Hold on to areas of

NA
Work strength:
Financial services,
Consumer goods &
industrials
Consultant Consultant
Case Team Leader Manager
Career Manager NA
17
progression
Principal Partner
Partner
McKinsey & Company Roland Berger Strategy&
Global Scenario
Consultants 8500 2400+ employees 3300

worldwide
Offices 92 50 57
worldwide
Countries 52 36 30
Present
Staffing Global Central Regional

Model
# industry 22 26 16
Practices
#functional 8 27 8
Practices
India office Gurgaon, Chennai, Mumbai, New Mumbai, New Delhi

Locations Bangalore, Mumbai Delhi, Pune
Partners 40 (13 directors) NA 2
Consultants 400 NA 60
Managing Noshir Kaka Wilfried Aulbur

Director
Speciality Devising strategy or Strong presence in Energy (oil & gas),

portfolio Automotive sector Power, FMCG
NA Largest consulting NA
firm emerging from
Europe
18
NA Targetting a 3 fold NA
increase in
consultancy reach
in next year
Priorities Market leader NA Establish differentiated

value proposition
Create deep impact NA NA
Career Associate Consultant Consultant
progression Engagement manager Manager Manager
Assoicate principal Principal Partner
Partner Partner
Director
INDUSTRY WRITE-UPS
The following write-ups cover a brief introduction of the most commonly discussed industries in the
case interviews. The interviewers do not generally expect you to have an in-depth understanding of
any industry (unless you’ve worked in this industry), but it helps to have a general idea of the value
chain, key players and how the industry operates.
PLEASE NOTE: This information doesn’t need to be memorized for interviews in any way. A thorough
reading few days before interviews should be sufficient.
Aviation Sector
Sector Overview:
Indian Aviation industry is in a high growth phase due to new developments like Low-cost carriers
(LCCs), modern airports, Foreign Direct Investment (FDI) in domestic airlines, advanced information
technology (IT) interventions and growing emphasis on regional connectivity.
The 4 major stakeholders in the Aviation industry are:

Airlines
Airports- Infrastructure
Aircraft OEMs (Aircraft/Engine/Components manufacturers)
Service Providers (Handling, Catering & Cleaning)
Customers
19
Trends
• India to become the third largest aviation market in the world in terms of passengers by 2026.
• Air passengers to grow at a CAGR of 3.7 per cent
(to double from 3.8 billion air passengers in 2016 to 7.2 billion air passengers by 2035)
• India's air cargo is estimated to grow at 9 per cent over the next few years.
• India is the world’s fastest growing domestic travel market (26.6 per cent YoY growth in
January 2017)
• Third largest domestic aviation market globally (100 million domestic flyers in 2016)
• Domestic air traffic is expected to grow 25% and cross 130 million in FY2017-18.
Porter’s Forces
20
Banking, Financial Services and Insurance (BFSI)
Sector Overview:
Banking, Financial Services and Insurance (BFSI) is an industry term for companies that provide a range
of financial products/services such as universal banks. BFSI comprises of commercial banks, insurance
companies, non-banking financial companies, cooperatives, pensions funds, mutual funds and other
smaller financial entities.
21
Trends
• The banking landscape has changed with one-and-a-half-dozen new entrants. The new
entrants will intensify competition, particularly in the hinterland of India with new products
and higher rates to woo depositors and lower rates to sell loans.
• State Bank of India, the nation’s largest lender, catapulted itself into the big league of the
world’s top 50 banks by assets in 2017 by merging with its five associate banks. A larger
balance sheet will enhance its risk-taking ability and expand its bandwidth to give loans. This
has also opened the debate of public bank consolidation and which seems likely next fiscal.
• Proportion of NPAs in the Indian Banks is coming down. The rise in net NPAs quarter on
quarter is slowing down. But public-sector banks remain a big cause of concern.
• Demonetization has altered the way NBFCs and MFIs operate in the country. They are shifting
from cash heavy models to digital and online payment frameworks.
Value Chain:
For Banking Sector (Sample – Deutsche Bank)
Porter’s Five Forces

BARGAINING RIVALRY AMONG BARGAINING
THREAT OF THREAT OF NEW
FORCE POWER OF EXISTING POWER OF
SUBSTITUTES ENTRANTS
SUPPLIERS COMPETITORS BUYERS
POWER High High High Low
FACTORS • Non-banking • Dependence • Intensive • Large • Stringent Norms
financial on customer competition concentrati • RBI regulations
companies deposits and • Threat of on of • High Initial
(NBFCs) and small loans from mergers and individual Investments to
cooperative other acquisitions customers comply with
banks. MFIs also financial • High banking norms
compete for a institutions switching • Entry barriers in
large proportion for cash costs terms of banking
of population not generating license
under the formal activities
banking net
22
KPIs for BFSI
As banks have very different operating structures than regular industrial companies, it stands to
reason that investors have a different set of fundamental factors to consider, when evaluating banks.
Loan Growth: Above-average loan growth can mean that the bank has targeted attractive new
markets, or has a low-cost capital base that allows it to charge less for its loans.
Deposit Growth: Deposit growth gives investors a sense of how much lending a bank can do.
Loan/Deposit Ratio: Loan/deposit ratio helps assess a bank's liquidity, and by extension, the
aggressiveness of the bank's management.
Efficiency Ratio: A bank's efficiency ratio is essentially equivalent to a regular company's operating
margin, in that it measures how much the bank pays on operating expenses, like marketing and
salaries. By and large, lower is better.
CASA Ratio: CASA ratio of a bank is the ratio of deposits in current and saving accounts to total
deposits. A higher CASA ratio indicates a lower cost of funds, because banks do not usually give any
interests on current account deposits and the interest on saving accounts is usually very low 3-4%.
Net interest spread: It refers to the difference in borrowing and lending rates of financial institutions
(such as banks) in nominal terms. It is considered analogous to the gross margin of non-financial
companies. Higher the better, it is for the health of banks.
Capital Ratios: There are a host of ratios that bank regulators and investors use to assess how risky a
bank's balance sheet is, and the degree to which the bank is vulnerable to an unexpected increase in
bad loans, like EPS, Price to Book Value, etc.
Return On Equity / Return On Assets: Return on equity is especially useful in the valuation of banks,
as traditional cash flow models can be very difficult to construct for financial companies, and return-
on-equity models can offer similar information.
Credit Quality: If a bank's credit quality is in decline because of non-performing loans and assets
and/or charge-offs increases, the bank's earnings and capital may be at risk.
Construction Sector
Sector Overview:
The Construction industry of India is an important indicator of the development as it creates
investment opportunities across various related sectors. The construction industry has contributed an
estimated USD 308bn to the national GDP in 2011-12 (a share of around 19%). The industry is
fragmented, with a handful of major companies involved in the construction activities across all
segments; medium-sized companies specializing in niche activities; and small and medium contractors
who work on the subcontractor basis and carry out the field work. In 2011, there were slightly over
500 construction equipment manufacturing companies in all of India. The sector is labor-intensive and,
including indirect jobs provides employment to more than 35 million people.
Trends
• After recording a spectacular growth of over 12%, more than the country’s GDP in the past
half-decade, Indian construction sector suddenly lost stream largely due to global financial
turmoil.
• The turmoil tremors created multiplier impact across sectors including steel, cement, power,
petroleum, aluminum, IT and ports, besides badly bruising the Indian economy.
• However, the sentiment is gradually changing. Recently, the Government has issued contracts
worth Rs 1,861 crore relating to projects in mining, railway, infrastructure, commercial
buildings, and some of the construction companies are also coasting along with a steady flow
of contracts.
23
• The Securities and Exchange Board of India (SEBI) has given its approval for the Real Estate
Investment Trust (REIT) platform which will help in allowing all kinds of investors to invest in
the Indian real estate market. It would create an opportunity worth Rs 1.25 trillion (US$ ) in
the Indian market over the years.
• The Smart City Project, where there is a plan to build 100 smart cities, is a prime opportunity
for the real estate companies.
Value Chain:
Porter’s 5 forces:
POWER High Low High High Low
FACTORS • New and • Industry • Fall in demand for • Construction • Capital
economical members such construction developers requirements for
innovative as the principal projects resulting have a high property
methods & contractors are in over capacity quality of development high
processes coming integrating • Competitive information for • Access to inputs
up backwards into bidding to win decision making like skilled labor
• Low switching the business of contracts by • Few developers difficult
costs once a suppliers construction and • Construction
project is creating companies construction industry risky and
complete concentrated • Overcrowded clients filled with
oligopolies market • Decline in uncertainty
• Readily dominated by 5 client’s demand
available big construction for construction
construction companies projects
materials from • Construction • Developers and
various projects are clients can
suppliers highly postpone
• Greater standardized projects until a
collaboration later stage
between when they can
contractors, secure lower
sub-contractors costs of building
and
24
manufacturers
required for
successful
delivery of
project
• Switching costs
of quantity
surveying firms
is low
KPIs:
Cost & Time: Estimated vs actual
– Predictability - 1) design 2) construction 3) total project
Quality: Safety & Quality Standards, lost Time Incidents (LTI), Structural Defects
Client Satisfaction: Client perception of product & service vs Contractor perception
Opportunities to Develop closer relationship with clients, show active engagement, Increase likelihood
of repeat projects, build word of mouth & strong reputation
Construction Cost & Construction Time: Change compared with one year ago
Profitability: Median profit on turnover (%)
Productivity: Median value added/employee (£000)
Safety: Reportable accidents per 100K employed (Industry AIR)
Cost Structure:
E-Commerce
Sector Overview
India has an internet users base of about 450 million as of July 2017, which is 40% of the population.
The e-commerce industry, riding high on this large bludgeoning internet user base is growing at an
unprecedented rate, adding around 6 million new customers every month.
25
In India, cash on delivery is the most preferred payment method, encompassing 75% of the e-retail
activities. Demand for international consumer products (including long-tail items) is growing much
faster than the in-country supply from authorised distributors and e-commerce offerings. In 2015, the
largest e-commerce companies in India were Flipkart, Snapdeal, Amazon India and PayTM.
Trends
• With easy money drying up & FOMO waning out, focus has moved away from growth in GMV at
any cost to KPIs like unique transacting users, Net promoter scores (NPS), repeat users etc
highlighting need for building brand stickiness
• With over $1 billion investments in the space, fintech start-ups have emerged in huge numbers
and they shall emerge in huge numbers and they are changing the way e-commerce buying is done
• Multi-platform strategy is here to stay. Most eCommerce platforms get around two-third traffic
from the tier 2 & 3 cities, that is predominantly mobile-only, but the audience that prefers desktop
or switches across platforms is still sizeable.
Value Chain

POWER High Low Very High High High
FACTORS • There is high • Supplier • Price discounts • Customer is • Govt allows
threat of companies • Events like Big the king 51% FDI in multi
substitutes due have low Billion Day sale, • Industry is brand retail and
to increase in bargaining Weekend sale, flooded with 100% FDI in
the role of power over Festival sale several major single brand
online shopping ecommerce also undercut players who retail
for products firms as they competition are willing to • Low barrier to
• Switching costs are now an • Speed, ease and please entry as it is
have decreased indispensabl convenience of customers relatively less
e channel. delivery is also a • Customers are capital intensive
• Presence of differentiator after value for and thus less
multiple along with money and infrastructure is
suppliers cancellation and quality of required to
also reduces return policies service start a business
their • Rapidly growing
influence industry
26
KPIs
• Cost Per Impressions (CPM) – (Ad Spend/(Impressions/1000): This is most commonly used to
measure the rate you would pay for an online banner ad campaign or other online advertising
campaign. An Impression refers to the times the ad is served on a webpage (how many times the
ad is seen).
• Cost Per Click (CPC) – (Ad Spend / Clicks): This is most commonly used to measure the rate you
would pay for a search engine ad campaign. CPC can also be referred to as PPC (Pay Per Click).
• Cost per Acquisition (CPA) – (Ad Spend / Orders): This is most commonly used to measure the rate
you would pay for a new order or customer. CPA is often used when measuring the rate, you
would pay an affiliate for referring an order to you.
• Revenue Per Click (RPC) – (Revenue / Clicks): This is the amount of revenue you can expect for
each click you receive to your site.
• Cost of Sale (COS) % – (Ad Spend / Revenue): This is the portion of your revenue that goes to your
ad spend and is measured in percent.
• Customer Lifetime Value (LTV): This is the projected revenue that a customer will generate during
their lifetime. For a full explanation of how to calculate LTV for your online store, check out this
infographic.
FMCG Sector
Sector Overview:
The fast-moving consumer goods (FMCG) is the fourth largest sector in the economy with a total
market size of more than Rs. 60,000 crore. FMCG includes consumer packaged goods which are non-
durable. The basket of goods for FMCG includes consumables for frequent consumption that people
buy at regular intervals like - toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe
polish, packaged foodstuff, and household accessories. The Indian FMCG industry is rapidly growing
and is expected to grow to $74 billion by 2018. Food products have the leader’s share in the segment
comprising 43% of the overall market with personal care (22%) and fabric care (13%) coming next. The
FMCG industry is characterized by complex distribution network and intense competition forcing firms
to constantly work on supply chain innovation. Companies with better supply chain system perform
well, whereas those with poorly managed supply chains find it tough to survive in the competitive
market.
Trends:
• Introduction of unified tax regime GST will lead to a re-evaluation of procurement and distribution
arrangements. Removal of excise duty on products would result in cash flow improvements.
• Rural FMCG market size is expected to touch USD100 billion by 2025.
• Premium brands are manufacturing smaller packs of premium products. For example, Dove soap
is now available in 50g packaging.
• Low penetration levels offer room for growth across categories. Major players are focusing on
rural markets to increase their penetration in those areas.
• FDI trends: 100 per cent FDI is allowed in food processing and single brand retail and 51 per cent
in multi-brand retail. This has bolstered employment & supply chains, and has provided high
visibility for FMCG brands in organized retail markets, bolstering consumer spending and
encouraging more product launches
27
Value Chain:
INBOUND OUTBOUND SALES &
OPERATION SERVICING
LOGISTICS LOGISTICS MARKETING
Includes: Includes: Finishing Includes: Includes: Includes:
Inbound raw goods, Order Handling Customer Warranty
materials Manufacturing Dispatch Management Maintenance
Warehousing Packaging Delivery Order Education and
Supply schedules Production Control Invoicing Management training upgrades
Quality Control Promotion
Maintenance Sales Analysis
Market Research
Issue Areas: Issue Areas: Issue Areas: Issue Areas: Issue Areas:
Processing cost of standardization, Inventory Control, Disruptive online - Responsiveness,
raw materials, demand forecast, infrastructural marketplace, reliability of after
Turn-around time faulty packaging, challenges like Pricing and sales service,
at warehouse, etc. road conditions, promotions, need preponderance of
infrastructural number of check for customization, defective items, etc.
challenges, Fuel posts, external, etc.
Costs, etc. environment, etc.

BARGAINING RIVALRY AMONG THREAT OF
THREAT OF BARGAINING
FORCE POWER OF EXISTING NEW
SUBSTITUTES POWER OF BUYERS
SUPPLIERS COMPETITORS ENTRANTS
POWER High Moderate High Low Moderate
FACTORS • Buyers’ • Prices generally • With more MNCs • Low switching • Presence
willingness to governed by entering the country, costs, aggressive of
substitute international the industry has marketing & Economics
• Relative price & commodity become highly intense of Scale
performance markets - most fragmented. competition drive • High initial
• Low Costs of FMCG firms price • Ad Spending “value for capital
switching takers continue to grow; money” deals for investment
• Narrow product • Long term marketing budgets & consumers. required
differentiation relationships with strategies becoming • Large number of • Likelihood
suppliers - more aggressive. buyers and of
companies • Private labels offered limited suppliers retaliation
negotiate better at a discount to from
rates during mainframe brands existing
times of high act as competition to players
input cost undifferentiated & • But most
inflation. weak brands. customers
open to
switching
products
28
Key Financial and Operating Parameters:
* Seasonality has a big impact on the below parameters.
• Profit margin: Big FMCG companies generally have stable profit margins
• Revenue generated per unit area: Gross sales/ Trading area – Used to indicate how much sales
shop floor is generating. This is used to compare across categories & stores
• Gross Margin Return on Inventory: Gross Margin/Investment in Inventory – Used to measure
how efficiently retailer is managing his inventory to manage his earnings
• Footfalls: Number of people entering the store in a given day – affected by seasonality
• Number of Bills: Number of Bills that have been billed in the cash machine on a given day
• Average Bill Value: Total Sales in a period/number of bills in a period
• Conversion Ratio: Used to compare what percent of people made a purchase as opposed to
those who entered the store
Key Success Factors

Thes key success factors for FMCG firms include the following:
• Wide and diversified portfolio of products
• Brand Equity
• Continuous innovation and product differentiation
• Strong Distribution Network
• Efficient Supply Chain Management
Cost Structure:
Major cost heads for FMCG firms:
• Research & Development
• Raw Material Procurement & Processing
• Manufacturing
• Logistics
• Marketing & Servicing
Hospitality
Sector Overview
The Indian hospitality industry contributes 7.5% to the GDP and provides for 8.7% of the total
employment. It is the third largest foreign exchange earner. Growing tourism interest has had a
positive effect on the hospitality industry. Nowadays, many budget hotels are emerging which are
giving good competition to major players. There is also a shift in the operations of hotels; traditional
hotel chains are concentrating on the branding and distribution functions. They outsource ownership
and operations by means of franchising. Large upscale hotels maintain control through management
contracts. High capital investments required for land, infrastructure and maintenance since costs of
acquiring/maintaining are high and supply is limited. It is even more so in metro and upcoming cities.
Trends
• The sector has received a big boost after 100% FDI has been granted here
• Medical tourism, although seasonal, is also on the rise
• India has a growing population of English speakers which is beneficial in this sector
29
• The sector’s total contribution to GDP is expected to further grow to US$280.5B by 2026 and
capital investment in tourism is estimated to increase to US$160B which is a 7% YOY growth
• International hotel chains currently have a market share of 44% which is likely to increase to
50% by 2022.
Value chain
Porter’s five forces

THREAT OF THREAT OF
SUBSTITUTES NEW ENTRANTS
POWER Medium Medium Medium-High High Low
FACTORS • Substitutes • Most of the • High in cities and • Limited for • High economic
like Airbnb factors which tourist spots B2B since it risks and
have already affect the • International depends on capital costs
dented business are chains’ entry has prior • Difficult to
income of activities intensified agreements sustain
hotel chains which are competition • High for B2C financially
abroad generally • Differentiation since initially
• Customer Subcontracted can still be in individuals
loyalty not like cleaning, terms of price always look
really valet, HR, etc. and service for lowest
present in prices
this sector • Demand
concentrated
in certain
periods
KPIs
1. Online ratings (Customer satisfaction): Most visible metric that customers often rely upon.
Considerably influences consumer decision making process.
30
2. Occupancy % = rooms occupied / rooms available: Determines how efficiently a hotel is using the
resources at its disposal. Indicates whether promotional activities pursued by the hotel have attracted
the crowd or not.
3. Revenue per available room = Total room revenue/ Total rooms available: Tells whether income is
equally earned across all rooms. Indirectly indicates occupancy rate.
4. Market penetration index = Hotel occupancy % / Market occupancy % ; Benchmarks hotel efficiency
level with the industry standard
Entertainment & Media Sector
Sector Overview
E&M Sector, in India is a making high growth strides with a projected CAGR of 14% for the next 5 years
which is more than double the rate of growth of global media industry. Entertainment and Media
Sector consists of a diverse range of product and services including Print media, Television, Radio,
Advertising. Digital Media achieved a growth rate of 9.2% in 2016 on the back of advertising growth
of 11.2% despite a sluggish global growth. The long-term growth drivers are expected to remain
positive with growing rural demand, increased digital access and consumption and advent of new
digital entertainment channels.
The industry can be divided based on two characteristics. First by the product with Television having
the highest market share of 45% followed by Print covering 25%. Second fragmentation can be based
on channel of consumption. It can be divided into Conventional channels and Digital channels with
high focus and significant push to digital channels in the coming years.
Trends
• Digital Advertising- With a growth rate of 28% in 2016, this is expected to be the a significant
growth driver for the Industry
• Television- Television forms the core of the Indian M&E Industry contributing to around 45%
of the overall revenue of the industry.
• Print Media- Paper vs Digital Content. Digital to be a growth Driver.
• With the government aggressively pushing in for digitization of TV, Multi System Cable
Operators (MSOs) are expected to lose 15-20% of their subscribers to DTH (direct-to-home)
services
• New Entertainment Products- Hotstar, Netflix
Value Chain
31

POWER Low High High Low-Moderate Low
FACTORS • Substitutes to • The suppliers • The rivalry • The buyers in • Capital

television in his case are between existing this case are intensive and a
entertainment the content players is very the regulated
are films, providers. The high. All the advertisers, business.
print, radio, broadcasters existing multi service Various
Internet. would try to broadcasters are operators regulations
However, maintain or trying to tap the (MSOs) and such as limit on
television has increase their same audience the DTH FII and FDI
the highest market share and enter into players. If investment,
reach in urban by improving contracts with broadcaster's number of
as well as their quality the same channels directors,
rural areas in of content. advertisers. enjoy high minimum
different • Thus, the • The broadcasters viewership share capital
socio- broadcasters’ also resort to ratings, then needs to be
economic expenditure copying the its bargaining complied with.
classes. on content format of a power is high. • Highly qualified
would successful • However, and creative
increase. We program on a under the people are
expect the rival channel. current TRAI required at the
bargaining regulations helm. In India,
power of the for CAS areas, media and
content non-CAS areas mass
providers to and DTH communication
be high and services, institutes are
their there is a cap limited, so
realisations on the there is a
per hour to subscription shortage of
increase. price that a talent. Besides,
broadcaster expensive
can charge for broadcasting
a channel. equipment and
This limits the studios are
subscription required. Huge
revenues of marketing, ad
the and capex
broadcaster required
and reduces
its bargaining
power
KPIs
Growth in unique traffic rates, market penetration
Loyalty – Return rates, engagement rates, key influencer identification
32
Oil & Gas Sector
Sector Overview
The oil and gas sector is among the six core industries in India. The government has allowed 100 per
cent Foreign Direct Investment (FDI) in many segments of the sector. It is sub-divided into 3 sectors-
Upstream – Involves exploration & extraction

Midstream – Involves storing, marketing & transportation
Downstream – Involves refining of crude oil & processing of raw natural gas
O&G is a very capital-intensive industry with huge investments in exploration and processing.
Oil & gas is a non-fragmented sector with most of the market being controlled by state owned
enterprises – IOCL, BPCL, ONGC, OIL and GAIL. The major domestic private player is Reliance while
international players like Shell, BP and Cairn do not have a major presence. The growth drivers are –
expected expansion in the robust domestic market; abundant raw materials, favourable policies, huge
investments, skilled labour and massive gas pipeline network
Trends
• India’s oil demand is expected to grow at a CAGR of 3.6 per cent to 458 Million Tonnes of Oil
Equivalent (MTOE) by 2040.
• Demand for energy will more than double by 2040 as economy will grow to more than five
times its current size.
• Gas production will likely touch 90 Billion Cubic Metres (BCM) by 2040. Demand for natural
gas will grow at a CAGR of 4.6 per cent to touch 149 MTOE.
Value chain
Porter’s five forces
33
THREAT OF THREAT OF
POWER Low Moderate Low Low Low
FACTORS • Threat is low, • Bargaining • Competitive • Customers • Threat of new

as other power is rivalry is low as have low/non- entrants
sources of medium as just one-two existent continues to
energy like despite few players operate bargaining be low, due to
solar, wind, players in Upstream, power. They the capital-
coal and operating, Midstream and are price- intensive
hydro- government at Downstream takers nature of the
electric times segments. industry and
power are • Delays in • Although a few economies of
less subsidy private scale
developed. payment to oil operators have
Pressure companies can entered the
from lead to big industry in the
alternative losses at times last couple of
sources years, they do
might rise in not pose any
future major threat
currently
KPIs
Financial – Finding & Development costs, lease operating expenses & maintenance costs per unit
production
Strategic – Market share in basin, quality of access, length of pipeline, production reserves etc.
Health Safety & Environmental – lost-time incidents & overdue risk related actions
Operational – Work-order compliance & attainment rates on facility turnaround
Pharma
Sector overview
The pharmaceutical sector in India comprises of ~2.4% of the entire global pharmaceutical market in
terms of value and ~10% in terms of volume. India contributes 20% of the global exports in generic
drugs and in FY16, the net worth of drugs exported by India was USD16.89bn. This value is expected
to reach USD40bn by 2020. The projected CAGR of the Indian Big Pharma is 12.89% (USD 55bn)
between 2015 & 2020. The Indian Pharmaceutical industry attracted 5% of total FDI into India from
2008 to 2016. The generics market of India grew from USD 21bn in 2015 to USD 26.1bn in 2016.
Trends
• Channel consolidation and fast-tracking approvals in pharma in US through Generic Drug User
Fee Act - this will cause declining margins for Indian companies selling generics in US markets.
Despite this, US market remains extremely lucrative with projected margins above 20%. The
FY16 margin being clocked at 27%, highest in past 4 years.
34
• Regulatory hassles and non-compliance notices have kept Indian drug-makers occupied in
2016 with large no. of adverse observations, warning letters and import alerts from US
regulators.
• The domestic drug market has grown by 24% in the last year proving resistance to external
shocks like currency volatility. Many M&As in the industry in the last FY; more as companies
try to expand in new markets.
• With economic slowdown, aging population and government encouraging generic
substitution, Indian generics companies continue to expand in Europe and Japan.
Value Chain

POWER Low Moderate Low Low Low
FACTORS • No major • Volume benefits • Highly • End consumers • Low barriers to

substitute of occur competitive do not have entry
medicines • Input materials • Low Fixed Costs much bargaining • Govt. policies
present as of are standardized • Few big players power are supportive
now • Numerous dominate in the • Brand identity is for entry
• Biotechnology Suppliers market and governed mainly • Existence of
is catching up • Switching costs compete by doctors price regulation
are low aggressively • Price sensitivity •
is less
KPIs
1. Return on research capital ratio: Since R&D is one of the major cost for Pharma companies it is very
useful metric to analyze the returns of the company from its research expenses. The return on
35
Research Capital (RORC) is a basic measure to show gross profit realized by the company for each
dollar of R&D expenditure.
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡𝑐𝑢𝑟𝑟𝑒𝑛𝑡
𝑅𝑂𝑅𝐶 =
𝑅&𝐷 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑝𝑟𝑒𝑣𝑖𝑜𝑢𝑠
2. Profitability ratios: Operating Margin & Net Margin
3. Liquidity and Debt coverage ratios: Pharma companies do make huge capital expenditures on R&D
which are often debt financed. Hence, they should maintain adequate liquidity and manage debt well.
Power Sector
Sector Overview:
The Indian Power sector is the tipping point for the growth story of Indian Economy. Growing at the
CAGR of 6-7% in period FY10-FY15, India’s Power sector has reached an installed capacity of 303 GW.
At present, the country is power deficient having annual per capita consumption of 1010 kWh. This
sector is highly dominated by public sector Companies and is capital extensive.
Trends
• Power sector stress contributes nearly 17 per cent of the overall debt of banks; next round of
fresh slippages may also emanate from the sector.
• Union Ministry of Power has accorded principle approval of Rs 450 crore for the Rs 1,350-
crore scheme aimed at the development and modernization of power sector in Gurugram. An
amount of Rs 272 crore has already been approved under the scheme.
• Indian power equipment manufacturers have raised alarm over vulnerability of the country's
transmission networks to hacking as Chinese companies make steady inroads into SCADA
(supervisory control and data acquisition) systems being added to smarten up city grids.
Value Chain:
Power Generation Power Transmission Power Distribution Power Trading
•70% share of •200 kv (52%) •10% of power

PSUs and 400 kv •Major generated is
•Dominance of (40%) major bottleneck in traded
Thermal based transmission the power •Indian Energy
generation lines sector - Loss Exchange &
(60%) •250K+ circuit making PSUs Ppwer
•Highly kilometers in •T&D losses > exhange of
gestation grid. 25% of power India - major
period, capital •High generation; power
intensive commission 2.5X of global exchange
period (6-7 average •Lack of long
years), less term power
upgradation in contracts
technology
36
THREAT OF THREAT OF
POWER Medium Moderate Low Low-Medium Low
FACTORS • No major • Coal India • All power • Limited • Highly capital

substitute of Limited is the generated is number of intensive
power only supplier of used up, so no power • Dominated by
available coal major companies PSUs
• Limited coal • Limited supply competitive means leads • Regulatory
availability; of coal due to rivalry to lower approvals and
govt. is lesser supply • Private number of fuel supply are
gradually • Dependent on participation industrial major
focusing on import of coal encouraged by buyers bottlenecks
non-thermal government • Government • Distribution
and due to high generally sets and
renewable demand fixed tariff transmission
sources of rates for dominated by
power power PSUs
consumption
for retail
consumption
KPIs:
Guaranteed return: A power company is guaranteed a certain return on capital employed on
generation by the government. If input cost increases, a generation company passes on the cost
through increasing the capital employed to maintain margins. Affects profitability of a power
company.
Net Asset Value: NAV is important from a retail investor perspective. Mentioned in Balance
sheet of the company.
Maintenance Cost: Expense incurred in maintenance of plants; an indicator of efficiency
NAV = ((Capacity * rate per MW depending whether it is pure generation company or a combination
of both) - Debt + Cash) / (number of shares outstanding)
Cost Structure:
VALUE CHAIN MAJOR COST HEADS
POWER Raw Material Cost (LNG fuel, Coal etc.) and Interest Cost
GENERATION
POWER Conductor Cost (ACSR – 38%; HPC: 66%); Tower (18%); Erection and
TRANSMISSION Foundation (10%), Using HPC increases material cost by 2X but reduces
overall per MW per km cost by 15%
POWER Cost of Electricity, Infra cost
DISTRIBUTION
Telecommunication Sector
Sector Overview:
India is the world's second-largest telecommunications market, with over 1.0 billion subscribers as of
May 2015. The wireless segment (97.36 per cent of total telephone subscriptions) dominates the
37
market. It has also been growing at a brisk pace. During FY 07-15, wireless subscriptions witnessed a
CAGR of 24.78 per cent to 969.8 million. It is also the second largest country in terms of internet
subscribers. The country is now the world’s second largest smartphone market and will have almost
one billion unique mobile subscribers by 2020. Further growth is expected fueled by increased non-
voice revenues and higher penetration in rural market. Telecom penetration in the nation's rural
market is expected to increase to 70 per cent by 2017. The emergence of an affluent middle class is
triggering demand for the mobile and internet segments. Strong policy support from the government
has been crucial to the sector’s development. Foreign Direct Investment (FDI) cap in the telecom
sector has been increased to 100 per cent from 74 per cent.
Trends
• The green telecom concept is aimed at reducing carbon footprint of the telecom industry
through lower energy consumption.
• There are over 62,443 uncovered villages in India; these would be provided with village
telephone facility with subsidy support from the government’s Universal Service Obligation
Fund (thereby increasing rural tele density). In March 2016, the rural subscriber base
accounted for 42.42 per cent of the total subscriber base, thereby fueling growth across the
sector
• IoT is the concept of electronically interconnected and integrated machines, which can help
in gathering and sharing data. The Indian Government is planning to develop 100 smart city
projects, where IoT would play a vital role in development of those cities
• Digital transactions using mobile payment services is also catching up in a big way in India.
• To curb costs, improve capital structure, focus on core operations and generate an additional
revenue stream, telecom firms have been segregating their tower assets into separate
companies.
Value Chain
38
THREAT OF THREAT OF
POWER Low High High Low Low
FACTORS • No big • High • Customers’ low • Low switching • Strict

substitutes bargaining switching cost cost and government
available in power of and price mobile regulations
the market suppliers as sensitivity are no. portability • Extremely high
• Although, there are just increasing lead to high infrastructure
WhatsApp a few competition bargaining setup cost
and Skype suppliers in among players power from • Difficulty in
are altering the sector • High exit barriers customers achieving
the rules of • High cost of are also • Middle class economies of
the game switching intensifying Indian scale
suppliers competition customers are
• There are around also highly
6 to 7 players in price sensitive
each region,
leading to intense
competition
KPIs
• Total Subscribers
• Subsriber Segmentation: Example- Prepaid (95%), Post Paid (5%)
• Churn per month: Example - (3%)
• Minutes of Usage (MOU): Example -
o MOU Segmentation: Prepaid (400) , Postpaid (1000), Aggregate (420)
o MOU Segmentation: Incoming (220), Outgoing (200), Aggregate (420)
• Number of Outgoing SMS Per Sub Per Month (30)
• Minutes Carried Per Month (MON) (50 billion)
• % Airtime Capacity Utilization
• Number of Calls
• Number of Calls per Subscriber
• Average Call Duration
• Roaming Minutes
• ARPU (Average Revenue Per User)
• ARPM (Average Revenue Per Minute)
• Average Revenue Per Call
• Average Revenue Per Cell Site
• Average Revenue Per Employee
• Revenue Breakup (%)
o Access: Connection, Subscription (15%)
o Wireless Voice (55%)
o Data (5%)
o Internet (5%)
o Interconnect (10%)
o Roaming (10%), International Roaming Revenue (1%)
39
Cases 2017
40
Internship Company : Accenture Strategy up given the frequent industry changes. Also, I would like to figure out, whether
the same principles of project management can be applied for projects in
Sector : Oil and Gas different sectors. Consulting will help me take up multiple projects in different
Name of the candidate : Deep Zanzrukia sectors. This will not only help me contribute to company’s requirement by
leveraging my work experience but also getting the next level of skill set and
Type of Case : Digital initiatives for a refinery learning.
HR Manager: Good to hear that. What subjects do you have here? Which ones do you like?
The Interview Me: Ma’am, we have core subjects on Marketing, Strategy, Finance, Statistics. We also
have subjects on Economics and HR. I like Economics and Statistics.
I was called after few people has already interviewed with the firm. The first
HR Manager: Ok. So, if you want to do a consulting project with your previous company? What
interview was with the HR MANAGER project will you suggest?
HR Good Morning, Deep. How are you doing? Me: I took time to think on some different projects. Ma’am, I’ll pitch in for a project
Manager: to digitalize the material movement during project execution. Material
movement is still manual in most projects and becomes a key driver in deciding
Me: Good Morning. I’m good. the project completion time. Digitalizing the movement will help streamline the
HR Good. Let’s me go through your resume. I didn’t have time to process and reduce the overall project duration. This also helps in early revenue
Manager: go through it. realization from the project.
HR Manager: This does seem like an interesting project. Thank you and all the best for next
Interview The HR Manager takes my resume and goes through it for 20 round.
progress seconds Me: Thank you! Ma’am.
Quick note I tried avoiding clichéd answers for “Why Consulting?”

Interviewee Decision Tree Suggesting a project for previous company was the most critical question of this
round. Accenture Strategy is highly focused on projects related to digitalization.
So, I took time to think of some projects before I answered.
Look for Check if it Select Ideate on Partner Interview
Partner: Hi Deep! Sorry to keep you waiting for so long. Walk me through your resume.
tasks for is already one with how to Me: Hello Sir!
improve digitalize direct digitalize Interview Just as I started describing the points on my resume, Accenture team member
progress interrupted and called the partner outside. Partner comes back after a minute.
ment d benefit to the Partner: I’ve been keeping you waiting for too long now. Where were we?
Me: Sir, we were discussing my resume.
Interview: Partner: Okay. Leave that. I have gone through your resume and I see you have good work
HR Manager: So, what kind of projects have you done in Refinery? experience in your field. So, I will not test you for that. I have two concerns in
selecting you for Accenture. First, you have 4 years of work experience. I’m not
Me: I’ve worked in the team which manages construction of new plants
sure how comfortable will you be in working with younger people in Accenture
in the refinery. I’ve worked in setting up 2 different plants.
who may direct you in some projects. Second, you’ve worked in Oil & Gas sector
The work involved contract management, site management,
and Accenture may not have similar projects all the time. How can you contribute
inventory management, working with consultants on daily basis to keep the
to projects in other sectors?
project on track. I looked after the mechanical works of the project.
Me: Sir, even in my previous company I was working with a team having people
HR Manager: That’s seems like a lot of field work. So, tell me why do you want to get into
younger than me. So, I’ll be comfortable working with such a team.
consulting?
Secondly, though I’ve worked in Oil & Gas sector, my work also involved dealing
Me: My job gave me skills and experience on execution of a large-scale projects (INR
with vendors and contractors of adjacent sectors. I’ve gained some experience
1500+ cr). The next step is to understand and learn why does a company
from that and I believe I’ll be able to extend it to a totally different sector as well.
undertake certain projects and how does one decide what kind of projects to take
Partner: Thank you Deep! That’ll be all.
41
Internship Company : Accenture Interview:
Interviewer: Okay. I need you to estimate the market size of frozen chicken in South
Sector : Airline
Bangalore. Do not waste time in calculations. Just tell me how would
Name of the candidate : Kshitiz Lohani you approach the problem.
Type of Case : Guesstimate Me: Okay Sir. Give me a minute to think through the problem.
Interview After a minute
The Interview progress
There were three rounds of interview. First round was mostly HR questions such as Me: Sir, we can use the census data with an intent to know the number of
“Tell me about yourself”, “Where do you see yourself 5 years from now” and “What people belonging to different castes and religions in South Bangalore.
opportunities at Accenture Strategy would excite you”. The interviewer was Will this be a good starting point to know the demographics?
evaluating communication skills and basic knowledge about Accenture Strategy. Interviewer: Sure, go ahead.
Second round was with a senior consultant from Accenture who gave a Me: Based on the above data, we can eliminate population belonging to
guesstimate. Third round was with the partner. It was similar to the first round with caste / religion who are predominantly vegetarian. Will it be a good
additional questions on extra-curricular activities (Badminton in my case). assumption to make?
Tip: It would be helpful if candidate has basic knowledge about the projects and Interview (highly contentious, did not know how to go about differentiating veg /
progress non-vegetarians among population)
sectors the firm is involved in.
Interviewer: Yes, you can eliminate this population.
Interviewer: Good Afternoon Kshitiz, everything going well? Me: Would it be a valid assumption of average household size of 4.
Me: Good Afternoon Sir. Everything is good so far. Interviewer: Yes, you can take the assumption.
Interviewer: Are you a foodie? Me: Now, from the rest of the population, we can arrive at the number of
Me: Yes Sir. households of different religions/castes which consume non-vegetarian
food. I would further classify them based on income brackets – low,
Interviewee Decision Tree middle and high. We can assign percentage of frozen chicken
consumption to each of these households. While assigning this
percentage, I would keep in mind the income bracket and availability of
frozen chicken in South Bangalore.
Interviewer: Good. Is there any other parameter you want to evaluate?
Me: Yes Sir. Till now, we have estimated the market size of frozen chicken
for individual households. We also need to look at the demand of
frozen chicken from restaurants to get the overall market size.
Interviewer: Great. And how would you do that? Just mention some factors which
need to be considered?
Me: From the overall number of restaurants, we need to first eliminate veg-
only restaurants. Then, we need to look at the size of restaurants,
nature of restaurants (biryani places only, etc.), location, etc.
Interviewer: Good Kshitiz. That will be all.
42
Internship Company : Accenture
Interview:
Sector : Airline
Me: We look at the no. of bases at the airport – (no. of planes
Name of the candidate : Sonali Gupta standing) x (occupancy rate of the planes).
Type of Case : Guesstimate Another way would be to estimate the no. of landings or take-
offs in a specific period to gauge the passenger traffic.
The Interview Interviewer: How will you estimate the no. of landings or take-offs? You
There were two broad parts to the interview, a case study based on guesstimate
have to put people there to count. Does that seem possible?
was followed by discussion on the viability of a new business idea. The discussion
Think of something
on the new business idea was due to my start-up background. The interview
Interview I took some time thinking about possible options. The
lasted for ~20 minutes.
progress interviewer basically wanted to see in how many ways can I
Interviewer: Good Morning, Sonali. How are you doing?
approach the problem.
Me: Good Morning. Doing good, Thank you. Me: I’ll estimate the no. of counters in the airport of various
Interviewer: So how would you go about estimating the daily traffic/ airlines, no. of flights serviced by each of those counters. The
number of travellers in an airport no. of flights say 20, each with a capacity of say 150 with an
Interview It was a common guesstimate, hence went about solving it the occupancy rate of 85% will give me the approximate no. of
progress conventional way. Asked for a couple of minutes to think. travellers. To estimate the no. of people who come to the
Decided my options and started writing it down so as to airport, we can profile the travellers. For example, the
analyze whether I can defend it till the end. Gave them two business class who are say 20% of the travellers, come alone,
options. while 50% may bring one and others may bring more
travellers with them. This can give us a broad estimate.
Interviewee Decision Tree Interviewer Okay, you have a business idea on say rural tourism. How will
General framework used for guesstimates: you go about evaluating its viability?
Me: Talked about the areas I will look at – the customers, people in
the team, what is the product and what are the offerings, will
Types of Activities there be a pilot etc. Was a discussion on the line of thought
Type of Why Data
& Services in that will be taken.
Organization Collection
target place Interview Broadly the idea was to see how I approach evaluating the
progress feasibility and/or viability of a whole new business idea.
Typically, there are 2 to 3 rounds. If they want to see more of
you to evaluate you better, they take you to a third round. I
Parameters to suit had only two rounds. One was this case round and the next
Recommendation
requirement was a HR round. It was a stress interview. Not all people are
put through stress interviews though.
43
Internship Company : Alvarez and Marsal
Sector : Shipping Industry
Name of the candidate : Anshul Agrawal
Type of Case : Cash Flow Analysis
The Interview
I was one of the last candidates to be interviewed with the firm. The first case study was with the Sr. Manager at the firm.
Sr. Manager: Good Morning, Anshul. How are you doing? Project 1st Stage 2nd Stage 3rd Stage 4th Stage
Me: Good Morning. So far so good. Stage (25% (50% (75% (100%
completion) completion) completion) completion)
Sr. Manager: Good, So let’s start with the case directly. I hope you have some
understanding of cash flow. Case details Project I - - (20) 45
Interview The interviewee takes a sheet of paper and draws a cash flow schedule Project II (100) 150 (100) 50
progress of the ongoing projects for a shipping company Project III (50) 80 (400) 270
Sr. Manager: The client is in shipping Industry and has currently 4 projects on hand. Project IV (50) 60 (150) 175
Each project is at its mentioned stage of completion and these are the
estimated present value of the cash flows for each project. Which of Quick note It is better to understand the objective of the client and confirm it with the
the following projects should client complete? The client would also interviewer. Also at this point it is essential to understand what constitutes
like to understand the sequence of these projects to be undertaken a stage? Is it time bounded or percentage completion based? In this case
(All values in INR Cr.) each of the stages correspond to % completion with 1st stage =25%
completion till 4th stage = 100% completion. The figures in the bracket are
cash outflows while the others are cash inflows
Interviewee Decision Tree
Identify Generate additional Identify constraints in

constituents cash flows selecting projects
of cash flow
Cash Cash Raise Other NPV Other

Outflows Inflows Capital sources of Positive Constraints
Revenue
Legal Delay Costs Key Clients
44
Interview: Me: By Financially, I mean any penalty imposed by the client’s customer for not fulfilling its
Me: Before I proceed, I would like to understand the nature of cash flows (out flow and inflow) obligation. There could be legal repercussions which might impact client financially. Also
for each project stage. What constitutes them? Can their timing be re-arranged? Can the since it is essential for client to complete all its projects to stay afloat, it seems that dropping
cash flows be shifted partially to future stages? of any projects will reduce the prospects of acquiring new projects thereby putting
substantial pressure on client. For e.g. completion of project III might result in bagging
Sr. The cash flows are basically the net of the compensation received by the client on
another contract from the same customer.
Manager: completing that stage and cost incurred to complete that stage. The costs are essentially
your capital invested for labor cost, raw materials etc. These costs are more or less fixed. The Sr. Yes, the customer for project III in this case is from Indian Navy. Not fulfilling the contract
compensation is decided as per the contract terms. The cash flows therefore cannot be Manager: might result in blacklisting of the company from future projects / tenders. Also, projects from
shifted to future stages. Navy are important source of revenue. Therefore, blacklisting will hit the future profitability
Me: So I can assume the cash flows to remain constant irrespective of the timing of the of the client
completion of project and occur in same sequence? Sr.
Can you sequence these projects in order?
Manager:
Sr.
Yes, it is good to assume that.
Manager: Me: Before I proceed with sequencing, I would like to know if there are constraints in terms of
availability of resources like labor, raw materials etc. Can the projects be commenced
Me: Does the company have any other sources of cash flows besides these project? Can they be
simultaneously? If yes, can they be suspended in between temporarily? Will they incur any
injected into the project stages?
delay cost to the client?
Sr. The client earns revenue from servicing contracts but they constitute 5-7% of total revenues
Sr. At this point, you can assume there will be no delay cost. The projects can be sequenced in
Manager and can be considered negligible
Manager: any manner as they are independent of each other. There will be no constraint with respect
Me: Can additional sources of funding be used? Can the client raise capital? Does client have any to labor or raw material for that matter.
reserves that can be used? Raising debt or using reserves might help to start with the capital
Me: (Starting with my analysis) So the client should first target Project I. It has reserves to invest
intensive projects before their payoffs are realized.
it into Project I and completion of it will lead to a surplus of INR 25 Cr. (Net Cash INR 60 Cr).
Sr. No, the client is already in debt and therefore cannot raise any further capital. It is essential Then it should invest in Project IV up to stage 2 to build its reserves of INR 70 Cr. This
Manager: for the client to complete all these projects to stay financially in the competition. To reserves should be then initiated into Project III and completed till stage 2 building a reserve
complete these projects the client as net reserves of only INR 35 Cr. of INR 100 Cr. This will lead to following sequence of projects :
Quick As mentioned, it is essential that all projects must be completed for the company to stay Project Completion Completion
Note afloat. The reasons could be impact on the future projects, relationship with client etc. This is Project
Sequence Completion of Project of Project Project IV Project II
one of the indirect hints given by the interviewer Activity II-2nd
of Project I IV up to 2nd IV up to 2nd Completion Completion
Stage
Interview Stage Stage
Meanwhile, I am calculating NPV for each project, and preparing order of projects to be
progress commenced. Cash INR
INR 60 Cr INR 70 Cr INR 100 Cr INR 175 Cr INR 125 Cr
Position 150 Cr
Me: Project I seems to be a low hanging fruit and therefore client should go ahead with it. It gives
net Cash flow of 25 Cr, building net cash position of 60 Cr. This can be used to invest in Me: However, to complete project III we require and additional INR 275 Cr and therefore it can’t
project III or IV depending on the priority and using its proceeds to start with Project IV. be completed
However, we see that project III is NPV negative and it reduces any profitability that client Sr.
may achieve. Hence Project III can be considered to be dropped. Project II NPV is zero, What are the ways in which you can ensure that project III will be completed?
Manager:
therefore selection of this project should depend on priority, availability of resources etc.
Me: The major issue is the INR 400 Cr outflow in the third stage and bulk inflow in the 4th stage.
Sr. The client should therefore try to renegotiate payment terms with the Indian Navy with
Is NPV the only criteria to evaluate selection of project?
Manager completion of projects. The payment could be done as % of project completed. The other
Quick Here it is important to note the indirect objective laid out during the course of interview – way is to shift the cash outflows to subsequent stages. This can be done negotiating credit
Note completion of all projects is essential. Hence at this point the candidate should focus on other terms with suppliers, raising capital through usage of non-fund instruments like letter of
aspects apart from NPV credit, bank guarantee etc. at discount to make payments for stage III
Me: No, we also have to look at the impact of dropping the project both financially and Sr.
Good Anshul. That will be all.
reputation wise. Manager:
45
Internship Company : Accenture Strategy
Sector : Automobile sector Interview:
Sr. Manager: Our client is a major commercial vehicle manufacturer. It has started
Name of the candidate : Jeyashri T supplying buses for a state bus corporation. The bus corporation has
Type of Case : Operations Strategy complained incidents of buses catching fire. Almost half of the
supplied buses have caught fire in the last 6 months. Let’s find how
The Interview we can help our client.
The interview began directly with case, followed by a guess estimate in second Me: I would like to clarify on few queries. Are we supplying the bus
round. corporation for the first time? Are there any similar incidents
Sr. Good Morning, Jeyashri. How are you feeling? reported by other customers? Are the specifications same?
Manager: Quick note It is better to understand the objective of the client and confirm it
with the interviewer. Moreover, asking relevant questions on the case
Me: Good Morning Sir. I am a bit nervous due to excitement but to the interviewer would show that the candidate is curious and
confident inquisitive by nature
Sr. Very Good. Let’s do a case that was faced by our client six Sr. Manager: We have signed the contract with the Bus corporation a year ago and
Manager: months ago in the automobile industry. Are you familiar with it is our first product delivery. No other customer has complained of
the sector? such issues. The specifications are quite same with no huge difference.
Me: I have no prior experience in that sector. But I’ll try my best. Me: The problem can be studied in 3 stages – Manufacturing at our site,
Transportation, Maintenance and usage at the customer end. Since
the specifications are alike and no other customer faces any such
Interview The interviewee explains the case question orally and offers a problem, I assume there is no technical issue in the manufacturing
progress sheet of paper for case analysis end. And how are the buses transported to the customer’s end?
Sr. Manager: The transportation is fully borne by our client and involves a 500-km
road journey. No issues have been observed during the
transportation.
Me: So, the problem should be in the Bus corporation’s end. Can you tell
me what kind of buses we supply? What about its fuel usage?
Sr. Manager: The buses are of CNG type.
Me: Is the bus corporation using CNG buses for the first time? I assume
they should have been with diesel buses prior.
Sr. Manager: Exactly. Can you go further?
Me: The Bus corporation was not giving prior attention to the
maintenance of CNG buses maybe in terms of required CNG pressure,
leakage or something like that.
Sr. Manager: That’s good.
Interview The discussion was then about Alcatel-Lucent (My previous employer)
progress and how the acquisition of ALU by Nokia was important. What impact
will it have on the telecommunications industry.
46
Internship Company : AT Kearney
Sector : Transportation
Name of the candidate : Namita Porwal
Type of Case : Market Size Estimation
Interview:
The Interview Me: Alright, Sir. To reiterate, our client is a cab aggregator like Uber and Ola
Partner: Good morning Namita, how are you doing today? who wants to start operations in Bangalore. Is my objective to
Me: I am doing good, Sir! estimate the market they can achieve?
Partner: Great. Let’s start with a case. Our client is a company like Uber Partner: Yes, that is right.
or Ola. They want to start operations in Bangalore. Before that, Me: Before I proceed, may I ask you a few preliminary questions?
they want to estimate the market size they can achieve. How Partner: Yeah, go ahead
should they do it? Me: In this case, the service being provided is a trip. So effectively I would
be calculating what share of trips can the cab aggregator garner for
Interviewee Decision Tree itself. Is that right?
Estimating Market Size Partner Yes
Me: Is the client just a cab aggregator or does it provide any other vehicles
such as autos? Does the client have a variety of price-variant services
Market Size
like Uber has Uber X, Uber Go, Uber XL, Uber Pool? Also, is the price
point comparable to Uber?
Partner: It has just one vehicle and one service – like UberGo. The price point is
Target comparable to Uber. You book trips using mobile phone
Target Avg. Trips in
Market Me: Thank You. Please give me a few minutes to structure my thoughts.
Population a day
Share Partner Sure
Me: I am calculating the no. of trips in a day. From there we can calculate
the trips in a year or a month. For simplicity, I am assuming that the
number of trips in a weekday is same as the no. on a weekend.
Estimating Target Population
Partner: Sure, go ahead
Target Population Me: I will structure the problem as follows
Market size = (Total no. of trips in a day) x (Market share the new
company can hope to achieve)
= (Total population which uses cabs) x (Average no. of trips taken per
day) x (Market share the new company can hope to achieve).
Segment Segment Segment Can I assume that the service is available in the entire city of Bangalore
by Income by Age by or just a few localities?
Adoption Partner: Assume the entire city
rate
47
Me: So, the population is around 10 million. Population in the city can be Me: (After thinking for some time) There can be travellers to the city as well
segmented as – Upper class (20%), Middle class (40%) and Lower class others such as tourists, businessmen etc. Can I use a approx. figure of
(40%). Each segment can be further categorized into 4 age groups: 10k travellers to the city everyday who use the cab service? So, the
School going (0-20yrs), College-going (21-30 Yrs.), Working daily users of cabs come down to 1 lakh. Now, we need to look at the
professionals (31-60 Yrs.) and old (61-100 yrs.). number of daily rides taken by each segment. Do we have any data on
If 100% of the population can be divided in these 4 segments equally, that?
there are 20%, 10%, 30% and 40% respectively people in each age The biggest user of cabs is working professionals of middle class who
group. would take 2-3 trips daily. So, for the overall middle class can I take
Interview I mentioned that I am taking ages in the multiples of 10 for simplicity. average daily trips to be 2? And 1 trip in 2 days for the for the other 2
Progress: At this point I realized that logically, there shouldn’t be more old people segments? So, the total daily trips come out to be 2 lakhs.
than working professionals. I mentioned the same to the interviewer. Me: We started with the formula: Total no. of trips in a day X Market share
But he let me stick to the assumed numbers and continue the new company. Do we have any estimate on what share of market
Note: Interviewer appreciates if you recognize and rectify your own mistakes. can the new company achieve in the beginning months?
But it doesn’t mean that you keep making them. Partner: What do you think?
Me: There would be different adoption rates for booking cabs among Me: We already have well-established players like Uber and Ola. But if the
different classes of people. Upper class would generally travel by their new firm gives good service and earns good reviews, people would use
own cars. Lower class would preferably use public transport or autos it. From my experience, I have seen people are not very loyal to a cab
or have their own cycles or travel by foot. Also, adoption of cabs would aggregator. Switching costs are negligible. Word of mouth publicity
be different for different ages. Adoption would be highest among would come in effect (Gave more gyan on 2-sided platform and
college-going and working professionals. Kids generally don’t travel network effects. I didn’t really know what the target market share
alone and older people are a bit tech-averse. Hence, adoption would should be)
be lower among school going and old people. Is that a fair assumption? Partner: So, what should be the target market share?
Do we have any data on the adoption rates for each segment?
Me: (meekly) I think 5% market share (i.e. 10k rides daily) in the first 6
Partner: Good, say the adoption is 15%, 40% and 10% for upper class, middle months would be a good start. (Then, I had a eureka moment)
class and lower class respectively. No need to further segment each However, I have talked so far about demand side of the market. It also
class into age groups. depends on the supply side. The cab aggregator should have enough
Me: Thank you for the data. So, the population who would be using the cabs on the road to achieve that market share. Maybe 100 cabs doing,
cabs is as follows. Thus, a total of 90k. Does that seem a fair number? each doing 10 trips every day should be the target in the first few
Partner: Do you see other users of cab services apart from the residing months.
populations? Partner (smiling, as if he was waiting to hear this) Thanks. We can end the case
Note: Watch out for such hints. Interviewer was trying to help now. Do you have any questions for me?
48
Internship Company : AT Kearney Interview:
Sector : Watch Industry Manager: So, let’s do a short case. Your client is a watch manufacturing company and they have
been seeing a decline in overall sales lately. You have been hired to analyze the
Name of the candidate : Navdha Khera problem for them.
Type of Case : Decreasing Sales Me: First, how long has this company been facing decline in the sales? Further, is this an
industry-wide phenomenon for the watch market? If not, is the sales drop specific to
a particular office location or product?
The Interview
Manager: The decline had been for quite some time. Also, a lot of the other watch companies
Manager: Good Morning, Navdha. How has the day been for you? have also been seeing drop in their sales.
Me: (In reality – worst day ever!) Good morning. It has been a nice Me: Sales is basically equal to Price x Quantity. Now that we know it is an industry wide
day! problem, it could either be supply side or demand side issue. From the supply side, it
could be possible that there has been some changes in the manufacturing process due
Interview Initial interaction was HR related like ”Tell me something to which prices could have gone down. Or the demand could have gone down, thereby
progress about yourself” decreasing the volumes. So, do we have any information on the prices or the quantity
sold?
Manager: The prices have remained fairly constant, the volumes have gone down. What could
Interviewee Decision Tree you think be the reason for that?
Me: Okay, so basically, we have figured that there has been a decrease in the demand for
the watches by the consumers. Can I take a few moments to understand the reasons
for the same?
Manager: Sure, take your time.
Sales - Decline Interview I took 1-2 minutes to enlist the reasons in a structured way in bullet points
progress
Me: Let’s go by basics. One uses a watch to check the time. Now either the consumer
prefers a different design to check time, or he no longer needs a watch to see time. I
Price - Constant Quantity - could come up with three different reasons:
● There could have been a shift in the design of the watch desired by consumers,
Decline maybe like preference of digital watches over the traditional ones
● Requirement of added features in the watches like Apple watch
● The need to use the watch itself has gone down because of availability of mobile
phones.
Demand - Supply – No
Manager: Yes, precisely! Because the mobile phones are so common now, the consumption of
Declining Issues watches has reduced significantly. Now that you have identified the problem, could
you recommend what the company should do?
Me: Okay. So first, company should come up with an improvised product like a smartwatch
to increase the utility of watch, so that it is no longer needed for just checking the
time. Also, we can improve upon the design aspect of the watch, so that it also serves
Shift in design Available of Product the purpose of an accessory item in addition to just simply showing time. Our aim is to
increase the functionality of a watch so that it does not compete with mobile phones
preference substitutes in Obsolete anymore. I could think of these two options from the top of my mind.
Market
Manager: Okay. Great Navdha! I think you did well. Good luck!
49
Sector : Manufacturing (Luxury Goods)
Name of the candidate : Rahul Saxena
Type of Case : Profitability
The Interview
The interview was with a Senior Manager (SM) at the firm. It started around 9:00 Interview:
AM and went on for 15 mins. The initial discussion was about my work experience Me: Sure, let me repeat the problem statement to make sure that I have
at Bajaj Auto and what specific roles I played as part of the Project Management understood it. Our client is a watch manufacturer and has been facing
declining profits. We need to identify the reasons for the declining profits.
team.
Does the client also want our recommendations to address this issue?
SM: Good morning Rahul! How are you doing? Feeling nervous? Note In the process of trying to note down the problem statement on the sheet of
Me: Good morning. I am good. I would be lying if I said I am not at paper, the essence of the problem statement can get missed. It is important
all nervous. But I guess sometimes being nervous helps! to remain concentrated and to listen to the problem statement carefully.
Looking forward to a good experience today. Repeating the problem statement and getting a buy- in from the interviewer
helps
SM: That’s great. Feel relaxed. Without wasting more time, can we
SM: Let us first identify the reasons. We can talk about recommendations later.
get started with the case? The client is a watch manufacturer.
Note Clearly understanding what I need to do helped me in estimating roughly
The client has been facing declining profits for the past few how quickly I needed to progress with the case. I wanted to identify the
years. The CEO wants to understand why is this happening. reason as quickly as possible so that I have enough time for
recommendations.
Interviewee Decision Tree Me: Sure, please give me a couple of minutes to structure my thought process.
Before I proceed, I would like to understand more about the client. Since
when has the client been facing declining profits and how has the industry
been doing?
SM:: They have been facing declining profits for 2-3 years now. Well, the industry
has a lot of players, some of them are doing good and some are not. There is
no specific trend.
Me: Okay. So can I focus on the client alone and not go further on trying to
understand if the industry itself is facing issues since not all players are doing
bad?
SM: Yes, you can focus on the client alone.
Me: What type of watches does the client manufacture? I want to understand
the product mix of the client and also can I also know whether a particular
segment (say Men’s watches, Children watches, Women’s watches) has been
facing this issue?
SM: The client is into manufacturing mainly luxury watches for all the segments
you mentioned – children, men and women. The profits have been declining
for all the segments.
Me: Okay. Since this is happening for all the segments, my hypothesis is that
there must be some client specific internal factor that is causing the profits
50
to decline. Can I also know what part of the value chain does the client Me: This means that the demand from the customers seems to be falling. Here, I
operate in? Do they only manufacture? Or are they also involved in the other would like to look at both the internal and external reasons. The internal
parts like distribution etc? reasons could be the location of the store, the perceived quality/image of
SM: The client manufactures the watches, distributes it and sells it through both the brand, the customer experience at the stores, the repair service etc. The
its own shops as well as other retail shops. external reasons could be the presence of competitors, other falling. Here, I
Note In my opinion, understanding in what part of the value chain the client would like to look at both the internal and external reasons. The internal
operates is extremely critical. It not only gives you better clarity but also reasons could be the location of the store, the perceived quality/image of
helps you reach the solution quicker if you identify the right questions to be the brand, the customer experience at the stores, the repair service etc. The
asked external reasons could be the presence of competitors, other macro trends
Me: Okay. So I would also like to know if the profits have been declining for both specific to tier 2 cities, declining trend of watches etc. Have I missed out on
client’s own stores or through other retail stores? any important factor?
SM: The profits have been declining majorly while selling through client’s own Interview I neatly listed all these factors in the sheet of the paper. In trying to identify
stores Progress the factors, mentally going through a customer journey helps – from deciding
Me: I see. Are these stores located pan India? to purchase the watch to going physically to the store for purchase, the
SM: The client sells through its own stores in tier 2 cities or not so developed buying experience and finally the after sales service.
cities. For tier 1 cities, the client sells mainly through other retail shops. SM: No, I guess you have covered most of the factors. Let me tell you that there
Me: So can I focus on the sales which are happening through tier 2 cities and are no issues with the internal factors that you have listed– the client has
through the client’s own stores? been doing well than its competitors on all the fronts including brand image,
customer experience, after sales service etc.
SM: Yes please. Go ahead
Me: Okay, this means that the fall in demand is due to some external factor. Has
Note While continuously noting down key takeaways from the discussion (like
the competition increased?
coming to the conclusion that client’s stores were majorly facing the issue
etc. on one side of the paper, I drew the standard profitability structure on SM: No, the competitors have remained the same. However, customers are not
the other side neatly. It is advisable to write in such a way so that the coming to buy from our client. Can you think of some possible reasons why
Interviewer is able to both see and understand. this must be happening?
Me: Sure, so in order to understand better what is the reason for declining profits Me: Sure, please give me a minute.
I would like to go deeper into the profit drivers. There are only 3 possible Since the client issue is happening mainly through its own stores in tier 2
cases – the revenue is going down, the cost is increasing or both are cities, there must be some external trend that is making the customer not
happening simultaneously. I would like to go deeper into the revenues first, visit the stores in these cities. One trend that I can think of is that the sales
do you want me to focus on the cost side instead? through ecommerce websites like Flipkart, Amazon etc have increased
significantly over the past few years in even the tier 2 cities. People are
SM: No, let us not focus on the cost side.
starting to trust these players and are buying through these websites rather
Me: Sure. So we have seen that product mix is not an issue. In that case, if the
than physically going to the store.
revenues are going down either the prices have been decreasing or the
SM: You are correct. Our client is not currently selling the watches through
volumes are going down. My hypothesis is that the volumes are going down.
ecommerce players in these cities. I am glad you figured out the problem.
Can I proceed?
We will not go into the recommendations. This is good enough.
SM:: Yes, correct. The prices have remained the same. The volumes have gone
Thank you!
down.
Me: Okay. In that case, I would like to look at volumes from both the supply side
(client) as well as the demand side (from the customer). Can I assume that
there are no issues from the supply end and that the client has been able to
supply the watches in these tier 2 cities?
SM: Yes, there are no issues from the supply side.
51
Sector : FMCG
Name of the candidate : Sumit Ranjan
Type of Case : HR / People management
Interview:
The Interview Me: I would like to go through the support activities first. Has there been a
The interview began directly with case, followed by a guess estimate in second change in the firm infrastructure or working environment? Employees
round might be unhappy with respect to the HR policies / working
Interviewer: Lets’ get to the case. The case is about an FMCG company and it is conditions for example changes in compensation (wage cuts),
growing by 2X in revenue every year. But, people in the company are performance appraisal or work timings
not happy. Can you guess what the problem is? Interviewer: No, the employees are satisfied with the current HR policies
Me: Before I proceed ahead, I would like to have few details about the
Me: Is there any change in policies with respect to support functions like
client. I would like to know the number of years the organisation has
been operating. Is the problem specific to a division or a department or
IT, procurement etc.? IT policies might have become a barrier in ease
across all business units? I would also like to know about current of doing business daily.
changes in management / working environment. Interviewer: Hmm. Fair enough. But there has been no change in any
Interviewer: The company is very old. There has not been any change in the organizational policy. There policies are getting them results so, I do
environment. The problem is in more than one departments not see how you feel it should be changed.
Me: If the problem is more than in one department, I would like to go Me: In that case let me come to the primary activities of the firm. I have
through the support activities before primary activities. Is that a good identified 4 primary activities as per the value-chain that any FMCG
way to go about it? firm follows-Operations, Logistics, Sales & Marketing and Servicing. I
Interviewer: You can also go through the primary activities first. would like to look into logistics first.
Quick note Here I should have taken his hint and gone to primary activities. Be Interviewer: Ok. Go ahead.
alert and take hints from interviewer. Me: So logistics would include sourcing the raw material, quality check,
transportation etc. Is there a quality control issue due to increased
Interviewee Decision Tree volumes? Or is getting raw materials a problem due to change in
volume.
Issues Interviewer: Getting good quality raw material is currently an issue due to jump in
volumes. Anything else?
(Primary Activities)
Me: Since the excessive increase in volume is an issue in sourcing, there is
(Support Activities)
also possibility of volume related issues cropping up with the
operations like manufacturing?
Operation Logistics Sales /Mkt. Servicing HR Admin IT
Interviewer: Yes. They do not have adequate capacity to service current. So, they
are not happy. You have identified two problems, the case is done.
Thank you.
52
Internship Company : AT Kearney Interview:
Sector : Logistics Me: I have a few clarifying questions, sir. What type of goods under industrial
goods do they want to transport?
Name of the candidate : Vibhav Katre Interviewer: For this case, you can assume all types of goods.
Type of Case : Industrial Corridor Me: Does the client have any specific preferences about medium of
infrastructure that they want to develop – roads, air or waterways?
The Interview Interviewer: You can focus on roads for the time being.
The first interview was short and lasted for around 8-10 minutes during which the Me: What types of vehicles shall be utilized - trucks/goods carriers/passenger
interviewer was interested in getting to know the approach towards the problem vehicles?
rather than the specifics of the structure. Interviewer: You can only assume goods carriers for this case.
Interviewer: Good Morning, Vibhav. How are you doing? Me: What is the objective of the case, sir? Few possible goals could include –
Me: Good Morning. Doing good, thank you capex minimization, cost of operation minimization, time of transport
Interviewer: Great! Let's straight jump to the case. Our client is a central minimization or tax revenue maximization. What should I assume?
Interviewer: You can assume that the client wishes to develop such an industrial
government minister who wants us to develop an
corridor that minimizes the time of transport.
infrastructure plan for industrial goods transport inside the Interview The interviewee took some time to organize his thoughts and laid out a
country. progress broad plan for a hub and spoke model for industrial corridor
Interview The interviewee takes a sheet of paper and outlines various development. He discussed his assumption with interviewer relating to
progress parameters relating to industrial goods that will help to plan pocket driven industrial centres in the region.
the industrial corridor better. Me: Okay. I shall develop an industrial corridor plan along the lines of a hub
and spoke model. There shall be a central location which would act as
inventory of the goods to be shipped, and there shall be multiple routes
Interviewee Decision Tree acting as spokes branching out from the hub. We can increase efficiency
by incorporating bulk breaking schemes.
Interviewer: How will you operationalize this hub and spoke model?
Me: An efficient hub and spoke model shall require high speed multi-lane
Type of Industrial Medium of Type of vehicles highways. Also, we would have to reserve some lanes specifically for the
Goods Infrastructure utilized transit of heavy goods carriers.
Interviewer: Can you think of limitations with the existing model?
Me: Of late, land acquisition from local communities on a large scale for
construction of such highways has become a big obstacle. Often,
negotiations fail to fructify and such mega projects get stalled for years.
Interviewer: Thank you. I think we are good. Do you have any questions for us?
Recommendations
Objective of the Me: Is this an actual ongoing project?
Assumptions
client
Interviewer: Yes, it is an actual project, that is currently underway with govt ministers
and bureaucrats.
Note: Interviewer appreciated the final question asked. Usually, tying these
questions to current projects project of the firm delights the interviewer.
53
Internship Company : Auctus Advisors Interview:
Sector : Airport Me: For each region we need to look at certain parameters before entering the
market. First thing would be to ensure that there are minimal political and legal
Name of the candidate : Manish Jain complications. Secondly, we need to check if economy of the country can
Type of Case : Market Entry support the infrastructural development. Thirdly, we need to look into social and
environmental factors that might have an effect on our construction projects.
Fourthly, we also need to look into the technological advancement in the
The Interview country to check if the client is equipped to cater to their needs or if the market
The first case study was with the Manager at the firm is suitable for the technology used by the clients.
Interview Good Morning, Manish. How are you doing? Quick Note Essentially I used PESTEL framework. Refrain from mentioning that you are using
a particular framework in the interview.
Me: Good Morning. So far so good.
Interviewer: Can you elaborate on what kind of legal issues can crop up?
Interview Good, so let’s start with the case directly. The client is in infra industry
and has currently 3 airports in India. They are looking to expand to a Me: Legal is about the way allocation or the bid process works, what are the selection
criteria for a foreign company and if there are any permissions/certifications that
south east Asian country. Philippines, Indonesia, Japan, Thailand. What
might be required before operating in the country.
factors would you consider while choosing the country to expand into.
Interviewer: So, political issues are a concern in Indonesia and Thailand and economy is
Interview The idea was to start listing with key parameters that are important in slowing down in Japan. Let’s move to a different problem.
Progress decision making for a greenfield industry.
Interviewer: An airline client, currently focused on domestic routes, wants to go
international. The Chief Network officer needs help to identify which routes to
fly on.
Interviewee Decision Tree Interview We moved to a different scenario. I rephrased and clarified the understanding of
Progress the issue and asked about the objective of moving to International routes
Interview: Diversification but the company does not want to make operational losses
Industry Opportunity Analysis
Me: I would like to ask a few questions about the client’s business. What type of
carrier is it-low cost or premium? How is the competitive scenario in the market?
Interview: It’ s a predominantly low-cost carrier, has single aircraft model and focusses on
Political Economic Social deriving economies of scale. There are many low-cost players in the Indian
market.
Can you list down the key factors that you’ll evaluate to make the decision.
Me: Created a profitability map for new trips.
Technological Environmental Legal Revenue Items: #no of seats, Occupancy, Air ticket price on route, No of trips
Occupancy depends on Consumer demand, Competition, Consumer preference
Cost depends on Fuel Cost, Employee Cost, Marketing cost, Operational
Maintenance cost
Interview List out the factors in decreasing order of importance. Like in case of cost, for
Progress airlines, fuel cost is the major component so that should be stated first.
54
Internship Company : Bain & Co.
Sector : Management Consulting The Interview
Me: Is he looking for any synergies with the auto business?
Name of the candidate : Aakash Ghosh
Type of Case : Market Entry Interviewer: No
Interview The interviewee tries to understand the geographical features
The Interview progress (weather, nature of soil) of the region where the land is located and its
Interviewer: A family business, currently in the automotive parts industry (India), is size. He then enquires the nature of agricultural market at the time, the
looking to expand into agriculture. What all parameters should it acceptable margins & initial investment when he wants to enter the
consider? business, what kind of soil is present, how is the weather.
Me: Why does the company want to expand? After taking all the above factors in account, the candidate decides
which are the crops we should be targeting - food crops or cash crops,
Interviewer: It has excess cash and wants to diversify. Agriculture is something which and the division among them, the technology and equipment required
is close to the heart of the promoter who owns some land somewhere – for these, the number of growing seasons, the manpower and other
He needs to know a plan how to proceed. raw material inputs required for these. Then he talks about the
Interview requirement of distribution channel, storage infrastructure, and sales
progress The candidate adopted the MECE approach to solve the problem division.
Interviewer: Let’s say his portfolio has certain crops with different margins (in Rs.
/kg). How will you calculate the annual profit?
Interview The candidate asked about the area of land allocated to each crop,
Interviewee Decision Tree progress the number of seasons for each crop, the cost of input materials, crop
insurance costs to arrive at the profits.
Agri-Business
Interviewer: If there is an agro company which has several product lines, and several
products in each portfolio, what should it be doing to rationalize the
portfolio, as it is impossible to manage so many products – each having
Pre-Sowing Sowing Post its own development cycle, sales and marketing, accounting, and
Process Sowing related procedures
Me: First thing is to be looked at is the combination of market share/volume
and the amount of profit margins. Products with high values of both
Crops Tech & must be prioritized. Then we can see whether some customers are
Distribution Storage Sales
Equipment being sold bundled products, that is, understand the cross-selling
Channel
potential for the products. Second, it must be analyzed whether some
products can be made a part of the same manufacturing process, and
hence simply derived from another product – so such products don’t
Food Cash require an extra supply chain. Third, for some low volume products, if
Crops Crops the margin is very high, we must keep it, as it satisfies some critical
market need, which also helps to cross-sell the products. We also
should ensure there is no cannibalization, that is, no products should
be competing against each other.
55
Internship Company : Bain & Company
Sector : Fashion Apparel
Name of the candidate : Madhura Kulkarni
Type of Case : Profitability, P&L analysis
The Interview Interviewee Decision Tree
The interviewer (Principal at Bain) was late for the interview and I was nervously
waiting in the interview room, with every passing minute panicking that I was
missing out on other interviews. Finally, after 20 minutes he reached, sincerely
Profits - Decline
apologizing for the delay. After a couple of minutes of pleasantries, we started
with the interview.
Interviewer: While I take some time to look at your resume, why don’t you tell me
something about yourself in 20 seconds?
Internal - Client Industry - Issue
Me: *Gave a prepared introduction. *
Interviewer: Good, so, do you want a case on fashion apparel chain or a mining
industry one?
Me: I would like the fashion apparel one. I am not very comfortable with Revenue - Decline Increase in Cost
mining.
Quick note Since I felt more comfortable with retail chains, I picked that case. It is
ok to say that you are more comfortable with a certain industry than
let the interviewer decide for you. Fixed Cost
Variable Cost
Principal: Ok, if you are sure. Your client is a fashion apparel chain in Paris. They
have been facing some issues for past 1-1.5 years. Their profitability has Merchandise In Store Adv.
gone down. Can you help them figure out what is the real problem?
Me: How many stores does the chain own? What kind of apparel do they sell?
Principal: They own 5 stores, all in Paris. You can imagine something like a West
Side with a large product mix.
Sales force Inventory Adv. & Rentals Salaries
Me: Ok. Thank you for the information. Can I take a few minutes to think Incentive Promotio
about this, Sir? n
Principal Sure. Take your time. We are in no hurry. And please call me Mahadevan.
Interview I took a piece of paper. Started drawing out the standard Profits =
progress Revenue – Cost tree. I listed all possible cost heads I could think of under
Fixed and Variable costs. Also, listed a few sources of revenue. The tree
looked something like this.
56
The Interview Me: *Looking at the numbers and doing mental math* Their margins seem
Me: Since the clients’ profitability has gone down in last 12-18 months, it to be very low. That could be a reason they are not doing so well.
could be either be due to decreasing revenues or increasing costs. Do Interviewer: That is correct. Their margins are low. That’s why they don’t have a lot
we know if this is a revenue related issue or a cost related one? of room to maneuver.
Interviewer: It is a mix of both. Let me look at what you have drawn on the paper. Me: *Still clueless about what was expected of me* Ok. Do you want me to
Quick Note It is important to write neatly and legibly on the paper and have a think of reasons why that might be the case and come up with
proper structure to whatever it is that you are putting down on the recommendations, “his name”?
paper. Interviewer: *finally smiling* No that’s it I think. I did not have any specific answer in
Interview I showed him the paper and he spent a minute looking at the different my head. I just wanted to see if you panic when you don’t get to the
progress headings, asked a few questions around those. answer.
Interviewer: None of these is an issue. Can you think more? Me: Alright. Thank you. I hope I stayed calm and answered well.
Interview I spent another minute thinking, but couldn’t think of anything else. Quick Note The interview started out as a normal profitability case, but was
progress Starting to panic that I had been quiet for too long, I tried to keep a completely unstructured. I honestly did not know what was expected,
smile on my face and asked for more time. but I tried not to panic. Thankfully, I got called for another round. In the
second interview, I was asked to list down all the costs associated with
Me: Sir, can I take another minute to organize my thoughts? a BPO in a metro in India. After five minutes, the interviewer got up and
Interviewer: I am in no hurry. And please call me Mahadevan *his name*. extended the internship offer.
Me: Sir, I think I have covered all possible cost and revenue sources that I
can think of. Can you please tell me if I have missed out on something?
Interview He looked irritated. I tried to keep the smile on my face and look
progress confident. Took the sheet of paper from me and wrote in bold letters –
Mahadevan *his name*.
Interviewer: Call me Mahadevan. And you have covered everything in that tree. But
the issue is something else.
Me: I am sorry. I am used to calling elders either Sir or Madam. I will try to
call you by your name.
Interview By then, I was completely clueless about where this interview was
progress headed.
It is important not to show that panic on your face and stay confident.
Interviewer: That’s ok. Have you done any Financial Accounting course? Can you
draw up a rough P&L for this store?
Me: Yes, we had a core course on Financial Accounting. *Wrote down the
headers in a P&L*
Interviewer: Great! Take these dummy numbers and figure out where the problem
lies.
57
Internship Company : Bain & Co. Interview:
Sector : Fertilizer Manufacturer Me: Okay. What is the market growth rate?
Name of the candidate : Nitin Bobba Interviewer: The market growth rate is fair but our sales have stagnated
Type of Case : Profitability Me: Are there any new competitors in the market?
Interviewer: No
The Interview Me: Has the client made changes to its prices in comparison to its
Round 1 interview lasted for 20-25 mins. Most of it was based on behavioural competitors?
questions but it had a small case on market share decline at the end. Interviewer No
Interviewer: Your client is a fertilizer manufacturer which has been losing
Me: Based on the information I have, I would say that the dip in
market share very quickly. Diagnose the problem
sales is not a product related issue since it is occurring in a
Me: Can you tell me the regions in which the company operates?
particular geography. Therefore, it can be an issue related to
What is the product mix and which product/region is losing the
sales/distribution. How is the client doing on the margins
market share?
being offered to the distributors?
Interviewer: The company operates throughout India. It has only one
Interviewer: We were at par on the margins to the distributors but
product and is losing market share in the South.
recently, our competitors have started giving better margins.
Me: I believe this is the reason for the declining sales. Fertilizer is a
Interviewee Decision Tree commoditized product and since the client is offering
competitive prices, that would not be a reason for a sudden
Market Share shift in consumer preferences. However, most of the farmers
are not well educated, they would rely on the advice of the
distributors to decide which product to buy. Being offered a
Growth Sales higher margin, distributors will have a natural tendency to
push the competitor’s product.
Interviewer Well Done!
Product Region
Supply Demand
58
Internship Company : Bain & Company
Sector : Entertainment
Name of the candidate : Shaurya Dhall
Type of Case : Market Entry Case Interview:
Me: Okay, so while looking at entry in a market we should look at
The Interview how attractive the market is and whether it is suited to our
Interviewer: Let’s start with the case directly. Suppose I want to launch a capabilities.
radio station in Delhi. What do you think are the major factors
Interviewer: Fine, let us assume that we have enough money to acquire all
that I should consider deciding whether to launch a radio station
the capabilities required to enter the market. Let us go ahead
or not? Please help me out in this decision.
and tell me about how you will judge the attractiveness of the
Quick Note Always clarify the case context and then proceed to lay down the market.
structure of how you will go about solving the case.
Me: Okay, so we should look at the potential of the market in terms
of size of the market and its growth rate. Then we should look
Interviewee Decision Tree at the industry forces which determine how the industry profit
is distributed.
Market Entry
Interviewer: Great, let’s start with the market size. How will you estimate
that?
Me: So, I can do it in two ways. I can look at the no. of people who
Market Client listen to radio and then use that to estimate the market size. Or
Attractiveness Capabilities I can take an estimate of the no. of radios stations and estimate
the revenue they earn.
Industry
Market Size
Interviewer: The first way seems fine. No need for figures, just tell me the
Structure
approach you will follow.
Me: Okay, so basically, we have to find the size of the radio market
in Delhi in value terms. For this first I will find out the total no.
of people in Delhi and segment them by age. Then for each age
Market Growt Share Price Competitio Substitute Regulatio
Size h n s ns bracket I will estimate the time spent on entertainment per
week. Out of the time spent I will estimate the share of radio in
that. Thus, we will get the time spent on listening to radio by
people in various age brackets. Then I will estimate the split of
ad content to entertainment content in a typical hour of radio
broadcasting. This will be used to find out the no. of hours of ad
content delivered to the various age groups. Then I will multiply
it by the average ad rates to find out the value of advertising.
59
This when multiplied by the no. of people and no. of weeks will (increase in revenue) leads to decline in the time spent on that
give me the total market size of radio stations in Delhi. form of entertainment (decrease in revenue).
Interviewer: Okay, what are the ways in which we can segment the market
No. of people in each age segment in Delhi X Average hours on the customer side and understand it better?
spent on entertainment per week X Estimated percentage of
Me: One is based on time band as certain kinds of programming is
time spent listening to radio for each segment X Ratio of
shown in particular time slots. Another is based on age and the
advertisement to entertainment content per hour X Average ad
content sought by them.
rates X No. of weeks =Market size in rupees of radio stations in
Delhi for a year Interviewer: How will you do the segmentation on age-content?
Interviewer: Great, now that you have the market size let us come to the Me: We Could do as follows:
market growth rate. What do you think are the factors which Old People (60+): Information-News; Entertainment-Old songs,
could lead to growth in the market? stories
Quick Note I should have been more structured while answering this. You Working Age (25-60): Information-News; Entertainment-Songs
can choose to take time before answering but don’t take more Young (15-25): Entertainment-Songs
than 3 pauses in total in the interview. We can further segment it on the basis of the language in which
the content is delivered (English, Hindi or other languages)
Me: Okay, based on the factors that I used in the market sizing let
me identify what would cause the market to grow. First is the Interviewer: Okay, which segment will you target? How will you evaluate the
growth in the no. of people obviously. Also, the growth in the attractiveness?
no. of devices used to access radio and increase in the time Me: I will look at the population in each segment and the time spent
spent on listening to radio. by each segment on listening to the radio.
Interviewer: Tell me what factors could lead to in increase the time spent on Interviewer: Which segment would you choose by applying your business
listening to radio? sense?
Me: The increase in time spent on radio can be achieved by Me: I would choose the Old (60+) segment. This is because they
improving the quality of radio content, increase in travel time would have more free time for entertainment. They would also
since most people listen to radio while travelling, change in the spend more time on the radio, lacking access to or knowhow of
content-ad mix…… other devices.
Interviewer: What do you mean by change in the content-ad mix? Interviewer: Thanks, Shaurya, That will be all.
Me: This means the split between advertisement and other content
in an hour of programming. For example, if YouTube increases
the number of ads, it would lead to a decline in time spent on
YouTube as compared to other entertainment mediums. So, we
can increase time spent listening to the radio by reducing the
proportion of ads and increasing the content in each time
period. Thus, there is a tradeoff as increase in advertising
60
Internship Company : Boston Consulting Group Me: Thank you. You mentioned that there is a primary and a
Sector : Auto Insurance secondary market for auto insurance. Will the client be focusing
Name of the candidate : Anirudh Banerjee on both type of customers?
Type of Case : Market Entry Interviewer: The primary market is highly dependent on the dealers.
Therefore, now the client will only be focusing on the secondary
The Interview market for the e-commerce segment.
Interviewer: Good Morning, Anirudh. How are you doing? Me: Ok. Can I take a moment to think?
Me: Good Morning. I am good. Looking forward to the interview. Interviewer: Sure.
Interviewer: Great! Let’s directly get to the case. Your client is an auto Interview While I took 2 minutes to think about the problem, the
insurance company. They have been traditional players in the Progress interviewer noted down something on a piece of paper
industry for a while but are now planning to get into the e-
commerce space. They need your help to devise a plan on how
they should enter the e-commerce market for auto insurance. Interviewee Decision Tree
Quick Note It is essential to ensure that you correctly note down the problem
Auto Insurance
statement. You don’t want to be solving the answer to the wrong
question. It is always a good practice to ask the interviewer to
repeat the problem statement.
Me: All right. I would like to confirm the problem statement (repeats
the problem statement) Secondary Market Primary Market
Interviewer: Yes. That is correct.
Me: Before I proceed, I wanted to understand more about the
industry and our client. I am not well versed with the auto Customer Customer Service
Re-Selling
insurance industry. Can you please tell me, what is the current Acquisition Onboarding Delivery
traditional value chain of the auto industry players?
Interviewer: Sure. Buying auto insurance is mandated by law for all cars.
Traditionally, the insurance industry players sell their insurance
through dealers. These dealers are usually associated with the Category Category Category Category
car dealers to facilitate the sale of insurance along with the sale A B C D
of the car. There is also a secondary market for sale of auto
insurance, for which the customers can purchase the insurance
either directly from the insurance company or the dealers. The Premium Clientele Growth
fulfillment of the insurance takes place through the company.
61
Interviewer: That is fine.
Interview:
Me: Can I take a minute to calculate the clientele numbers at the end
Me: of 5 years?
From a customer’s perspective, we can see that their contact
with the client can be divided into 4 broad categories. First will Interviewer: Yes.
be customer acquisition, followed by customer onboarding, Me: At the end of 5 years, the number of Category A clients will be
providing services to the customer as well as re-selling to the 2100 and for Category B will be 1700 approximately.
customer at the end of the life of the insurance policy. Would
Interviewer: Are you sure about those numbers?
you like me to focus on any specific aspect of the value chain?
Interviewer: Let us start with customer acquisition. Me: Yes. I made some approximations for the calculations.
Me: Sure. Before I proceed with that, can I understand about the Interviewer: Ok. That’s alright.
types of auto insurances provided by the client? Me: Therefore, based on the projected clientele numbers, our client
Interviewer: There are 4 categories of insurance policies that are offered should focus their customer acquisition strategy on Category A
based on the value of the car for which the insurance is being prospects followed by the Category B prospects. Would you like
purchased. me to delve deeper into the customer acquisition strategy and
Me: Ok. Is there any other difference in the four types of policies how they should focus on these categories, or should I move to
being offered? Like the premium that is charged to the the other aspects of the value chain?
customers? Interviewer: That is all right. We can end the interview here. Please wait
Interviewer: Yes. Category A and Category B policies have a higher premium outside the room.
than category C & D. You can assume the premium for Category Me: Thank you.
A & B to be the same.
Me: Can I assume that the policy which has a higher premium is also
more profitable for the client?
Interviewer: Yes, you can make that assumption.
Me: Ok. Do we have any information on the expected clientele
numbers for the different categories and the expected growth
in the future?
Interviewer: Yes. The clientele numbers and growth projection for Category
C & D are quite low so you can ignore them. Expected Category
A clientele for the 1st year is 1500 people with a growth rate of
7.3% per annum, while Category B has a clientele of 975 people
with a growth rate of 11.7%.
Me: Can I consider a 5-year projection for growth?
62
Internship Company : Boston Consulting Group
Sector : Logistics
Name of the candidate : Chandana Rajanna Interviewee Decision Tree
Type of Case : Profitability
Profits - Decline
The Interview
I was called for the interview well after many students had already converted their
calls from this company. As I entered the room, my interviewer, a Principal at BCG
walked up to me to greet with a handshake. He asked me to take a seat as he sat Increase in Costs Decline in Revenue
across the desk. He already had a copy of my resume and took a quick glance.
Interviewer: Good Morning, Chandana. How is it going?
Me: Good Morning Sir. It is going well.
Price Change Quantity
Interviewer: Great! I would like you to solve a problem for our client. They
are a transport company providing logistics services across
India to business customers. Increasingly, they are seeing a
decline in their profits. Could you help them with this?
Tonnage Km Capacity
Me: Could you give me more information about the company? Who
Utilization
are its customers? Does it provide road and air freight service?
Interviewer: Its main customers are e-commerce companies who use its
services for transporting goods across all states of India. It
provides freight services through land only. Interview:
Me: Decline in sales could be due to the following reasons:
Me: Okay. Thank you for that information.
Competitors – competitive pricing, substitutes to road freight
Essentially, the company could be facing reduced profits
services - Air Cargo, Railways, increase in price due to change in
because of two things – either a decline in sales or increase in
regulatory environment like increase in cross-state border
operating expense. Reduction in revenue is a function of price,
taxes leading to reduction in the demand for the company's
volume and increase in costs could be due to a variety of
services and lastly revision of contracting terms might have led
external factors. Can I take a moment to gather my thoughts
to loss of customers.
and list the possible factors for both?
Increase in operating expenses may be due to rise in fuel costs,
Interviewer: Sure, go ahead. road tax, relying on sub-optimal routes due to temporary
construction work/new toll booth installations, increase in
labour expense/labor union strike etc., and increase in
maintenance costs of the truck due to depreciation. Do you
want me to delve into both sides of the problem?
63
Interviewer: I want you to concentrate on the revenue angle. revenue stream.
Development of a standard operating procedure for optimal
Me: Okay. Have we slashed our prices? Have we lost our customers
stacking of the trucks.
to competitors - hence a possible reduction in volumes?
Interviewer: That would be all Chandana. Thank you. Please wait outside for
Interviewer: No, our rates have remained the same and we haven't lost our
the next panel.
customers.
Me: For logistics companies, pricing rates are based on tonnage of
weight and distance travelled, that is INR X price per ton per
km. A possible reason for the reduction in revenue is that, even
though we may have retained all our customers, we might be
getting more orders for shorter routes and lesser tonnage.
Interviewer: Do you think the pricing system you mentioned is viable for the
logistics company? Is it profitable for the company to send a
single half ton carton across the country?
Me: No sir. Charging on the basis of weight and distance constitute
only the variable aspect of the pricing. Usually, a fixed
component is charged for each trunk.
Interviewer: Could you write down the pricing equation and explain how
this could be impacting profits?
Me: Two fully loaded (in terms of physical space capacity) trucks
may be generating different revenue for the same distance as
one might be carrying lesser weight owing to the design of the
consignment. For example, carrying two wardrobes will engulf
the space in the truck but with respect to weight, it might be
much lesser than a truck carrying neatly stacked cartons of
chocolates. Therefore, while the cost of fuel and labour
remains the same, decrease in revenue impacts profits.
Interviewer: Well, that is exactly the issue, due to increasing variety and
shape of consignments from various e-commerce companies,
there has been a sub-optimal utilization of truck space. What
are your recommendations for the client?
Me: Revising the pricing strategy and providing different pricing
options.
Combining B2B consignments with B2C consignments which
may act as filler to the air spaces and provide an additional
64
Internship Company : Boston Consulting Group (After a Minute, with a structure). The deposits can decline broadly
because of two reasons - external like economic conditions, interest
Sector : Banking rates/charges, but those should affect the others too, so I am ruling them
Name of the candidate : Maithili Kalelkar out and other reasons internal to our client and their offerings. So, either
Type of Case : Market Entry Case the average money in every account has fallen or the number of
accounts have not grown. Do we have data to infer which of these two
Interview I could be an issue? Also, can the decline be attributed to any segment
Interview The interview began with a quick intro and work ex related questions. like salaried individuals, HNIs, corporates, etc.?
Progress Interviewer: The number of accounts have remained the same more or less.
Interviewer: So, Maithili, your client is a Public-Sector Bank and is facing declining Me: So, can I conclude that the crux of the problem is that the average
CASA Ratio over fast few quarters. What could be the reason? balance in the current and savings accounts is falling?
Me: So, what I understand by CASA is that it is the ratio of the Current and Interviewer: Yes.
Savings Deposits in a bank to the Total Deposits and it is necessary to be Me: Are we offering interest rates/charges that are different from our
high since it is a cheaper source of funds. competitors?
Interviewer: That is perfect! Interviewer: No.
Me: What has been the timeframe that we are seeing this problem and has Me: These days many customers have multiple bank accounts. I myself have
this been a trend for our competitors too? two accounts – one in a public-sector bank and another in a private bank.
Interviewer: The ratio has been declining in the past few quarters and our In my personal experience, the services like internet banking, m-Banking,
competitors are just fine. The numbers are not relevant. etc. offered by private sector banks are much better as compared to the
Me: Ok, Thanks! The CASA ratio can decline if there is a fall in the current and public bank. Are we lagging behind the competitors on these fronts?
savings deposits or a rise in total deposits (i.e. in fixed deposits, recurring Interviewer: We have our ATMs and other traditional banking facilities but our
fixed deposits, etc.). Do we have any data to suggest which of these presence in the Internet Banking and m-Banking space is not that
could be a reason? prevalent.
Interview The Interviewer gave the growth rates for current accounts, savings Me: This may be a reason why our customers are not keeping huge balances
Progress account and fixed deposits. Since the growth rate of current and savings in our accounts because they find making transactions and transferring
account was less than the growth rate of fixed deposits, I assumed that money difficult.
the problem pertained to less growth in current and savings account. Interviewer: Good, you have identified the crux of the issue. Summarize the case for
Interviewer: But how do you know if these growth rates are good enough or not? me and what will you recommend?
Interview I soon realized my mistake and asked about industry average growth Me: So, our client a public-sector bank has been seeing declining CASA ratio.
Progress rates for each of these accounts so as to do competitive benchmarking. This was primarily because of our low foothold in the Internet and m-
Banking space, which has slowed our growth in the Corporate, HNIs and
Me: Thanks. On comparison of the growth rates, it is clear that the problem Salaried employee segment. Hence, the bank should invest to improve
pertains to falling current and savings deposits. The current and savings the internet banking and mobile banking services and make them as
deposits of our client are growing at a rate less than the industry average user-friendly as possible and the same should be made known to all
growth rate. I will like to take a minute to structure my thoughts. customers through relationship managers and advertisements. The Bank
65
can also provide additional interest to the Bank’s employees and their is considering entering India mainly to expand business and make
family members on current and savings deposits. profits.
Interviewer: Thanks, that will be it! Interviewer: Yes, that’s correct.
Me: I would like to look at the problem keeping two things in mind –
Interviewee Decision Tree attractiveness of the Indian market and capability of the client to enter
this market. Since, the client is already into this business and is making
healthy profits, capability should not be a problem. Can I go ahead with
CASA –Decline this assumption?
Interviewer: Sure, go ahead.
Me: Coming to attractiveness of the market, can you please tell me at what
External Factors Internal Factors rate is the market for air pollution equipment in India growing
currently?
Interviewer: You can assume that there is hardly any market for this equipment
Price Change Quantity Product Mix currently. Devices are mainly sold in Delhi. The market is yet to develop
for such equipment. Also, there are not many players operating in this
space right now. How will you estimate the growth rate?
Me: I will probably look at how the market for air pollution equipment has
Interview II:
developed in other comparable countries like China.
Interviewer: Have you heard about the rising pollution levels in Delhi?
Interviewer: That sounds like a good idea. But then you can only compare it with
Me: Yes, I have. It’s been in the news a lot off late especially because of the three to four other countries (naming a few). Is there any other way to
odd-even rule. estimate the growth rate?
Interviewer: Good, so let me give you a case related to pollution. Our client has an Me: (After thinking for a while) I would track the growth rate of water
opportunity to manufacture and sell air pollution control equipment in purifiers in India. The growth rate for air purifiers might follow a similar
India. Our job is to advise the client whether they should go ahead with trend.
this project and if yes, how should they go about it?
Interviewer: That is exactly what we did!!
Me: Can you please tell me what is the current business of the client? Is the
client operating in India? Interview This is the answer that the interviewer was looking for. Later, I had to
Progress do market sizing using guesstimate, considering factors like estimated
Interviewer: The client is currently manufacturing and selling air pollution control
households and offices which will buy the air purifiers, number of air
equipment in Europe and US.
purifiers in each household and office, price of the equipment, etc. The
Me: Is the client thinking of entering the Indian markets for making profits, interviewer asked me to estimate market share that can be achieved by
gaining market share or does he have any other objective in mind? Is the client and accordingly, calculate estimated sales for the client.
the client making profits from this business abroad?
Interviewer: The client is mainly looking at profits and expanding his business
globally. And yes, the client is extremely profitable.
Me: So, just to summarize, the client is already into the business of
manufacturing and selling air pollution control equipment abroad and
66
Internship Company : Boston Consulting Group Me: Market share can be shown as:
Sector : FMCG Share of Market = Share of Preference x Share of Voice x Share
Name of the candidate : Nishant Gupta of Distribution
Type of Case : Declining Market Share Quick Note: I had learnt about the above formula in the ISB case book, and
found its meaning online. As you will realize below, the choice
The Interview of framework may not have been the best as you can possibly
I had only one interview with the firm. The interview was taken by a Partner in the miss out on a few important aspects. A framework like 4Ps may
Mumbai office of BCG. I was quite nervous before the interview as I had not been have also worked in this situation.
selected in my first set of interviews at McKinsey.
Interview Before the interview began, the interviewer got his chair right Interviewee Decision Tree
Progress next to mine, so that he could clearly see what I am writing on
my sheet. In the process of shifting, a lot of the water bottles fell Market Share
down, creating a very awkward moment - Decline
Interviewer: Good Morning, Nishant. How are you doing? You seem nervous,
do you want to take a 5minute break?
Me: Good Morning. I am fine, we can start with the case. Share of Share of Share of Preference
Distribution Voice
Interviewer: Good, have some water and tell me about yourself.
Me: (Gave my prepared one minute introduction)
Interviewer: Alright, let’s get directly to the case
The client is a potato chips manufacturer, who had 90% market Changes in Better Low
share till two years back. Since then, a new competitor has Product Products Price
entered the market and the client has progressively lost market taste
share to 40%. You need to find out the reason for the same and
suggest strategies to regain the lost market share
Me: (Repeated the question to make sure I understood the problem
statement correctly)
Apart from market share, do I need to look at any other issue
RM Fixed Variable
like falling profitability?
Cost cost
Interviewer: No. Let us concentrate of market share first. And later if time
permits, we will get into profitability.
Me: Sure. Can I take 2 minutes to structure the problem
Interviewer: Sure. Go Ahead.
67
Interview Quick Note As the interviewer was staring directly into the sheet, you need to
Me: (Going over the three buckets, one by one)- Has there been a change in ensure that you work in a structured manner, and make proper notes.
the distribution strategy? Also, make calculations in a separate section of the sheet, so that your
Interviewer: No main solution is not cluttered unnecessarily. The partner is known for
making people do these calculations in their head. Maybe he sensed
Me: Has there been a change in the marketing or promotions (share of that I was nervous, so he didn’t put me under more pressure by asking
voice) me to do these calculations in my head.
Interviewer: No Interviewer: Sure, this is correct. What other information do you need to understand
the pricing difference.
Me: Has there been a change in the preferences for chips?
Me: We would need the cost data to ascertain the profitability of the two
Interviewer: What are the components of share of preferences? players.
Me: I started listing down different components of the share of preference: Interviewer: Assume Raw Material is INR 3.66, variable cost is INR 1.60 and fixed cost
1. Has the product quality changed? is INR 1.76 for our client. COGS and VC is same for competitor but still
2. Has the Product taste changed? both earn same profit per unit.
3. Is the competitor’s product substantially different from us? Me: (I noted these down in a structured manner on my sheet and tried to
4. Has the packaging, shape, size of the chips packet changed? calculate the fixed costs for the competitor. Then I started calculating
Interviewer: No, there has been no change in our product, and the competitor’s the profits for our company). So the profits for our company is INR 0.22
product is similar to ours. Is there anything else which affects Interviewer: Are you sure about your calculations?
preferences?
Me: (I recheck the calculations and realize a mistake in carrying over a one.
Me: Oh yes, there’s price of the product. Are the products priced
I rectify the mistake). So the profit would be INR 0.12. Using the same
differently?
profit for the competitor, we can derive the fixed costs as INR 1.10
Quick Note As mentioned, because I used the above formula, it took me a while to
Quick Note At this stage, I got a bit nervous as I made a silly calculation mistake. It’s
figure out that product prices are an issue. That’s why some other
important to not lose your cool, and continue with the interview with a
framework could have also worked well.
calm head!
Interview Now, the Interviewer starts to give me numbers for solving the case
Interview The interviewer asked me to calculate certain margins. I don’t
Progress
Progress remember the exact details of the same. At each request, I would ask
Interviewer: Yes. Our product is priced at Rs. 9.66 and the competitor’s product is whether he wants percentages, and he would say that he just needs the
priced at INR 8.74 absolute margins (thankfully!)
Me: Right, so our prices are higher which has led to lower market share as Interviewer: So how do you think we can reduce our costs, in order to compete on
chips are commoditized products. Now, we need to understand the price and maintain profitability
reasons for the price differential, and figure out if we can also reduce
Me: (I go over the three cost heads one by one)
our prices
1. Can we reduce raw material cost?
Interviewer: Assume that retailer margins are 26% of MRP 2. What are the components of Variable cost- can they be
reduced
Me: (Made some calculations on the sheet) The selling price for our product
is INR 7.14 and for the competitor it is INR 6.47 Interviewer: Raw material and variable costs cannot be reduced further.
68
Me: Alright, so then we need to reduce fixed costs. What are the interview. The interviewee will not judge you for minor mistakes, if the
components of fixed cost? overall process is structured, MECE and you can think on your feet. So,
Interviewer: What do you think are part of the fixed costs? How can you reduce fixed you should not overthink during the interview, which can be
costs to the level of the competitor? detrimental to your performance.
Me: Fixed costs would include rent for factory, salary of managerial staff,
other overheads, etc.
Interviewer: These cannot be changed; can you think of more ways to reduce the
fixed costs?
Me: Oh yes, these are fixed costs per unit, so we can reduce the fixed costs
by increasing the number of units produced. What is the current sales
volume
Interviewer: Right. Earlier the market was 19.5 million units and our market share
was 90%. We have continued to produce at the same level
Me: Sure, so the present volume is 17.6 million
Interviewer: That is correct. What should be the sales volume to reduce the fixed
costs to INR 1.1?
Me: To achieve FC per unit of INR 1.10, required volume is 17.6*1.76/1.10,
so 28-30 million approx.
Interviewer: Right, this is correct. Now what should the client do?
Me: The client should cut its prices and drive higher sales volumes to realize
the potential decrease in fixed costs and maintain profitability
Interviewer: So, what are the key risks involved with this strategy?
Me: 1. What is the competitor’s willingness to fight and how deep
are their pockets?
2. Whether our client will be able to sustain a period of losses,
where the fixed costs are high and the price is low
3. Whether the market would respond proportionately to the
price reduction, to ensure that the sales volumes reach 28
million
Interviewer: Thank you Nishant, that will be all. All the best!
Quick Note As I got out of the interview, I was very nervous as I had made a small
mistake in calculation. Apart from that, I felt that I reached the right
answer. Luckily, it worked out and I received the BCG offer after one
interview. Key takeaway for me was to maintain a calm head even after
you start off on an awkward note and make small mistakes during the
69
Internship Company : Boston Consulting Group
Sector : Consulting
Name of the candidate : Sachin Garg
Type of Case : Market Entry
The Interview
My BCG interview was after 2 rounds of interview with McKinsey. It was already 11:30 since I rejected BCG panel 1 and waited for my McKinsey first round of interviews.
Trust me, it was difficult to go back to BCG interviews after being rejected by McKinsey. BCG made sure I was in comfortable before they started off with the process.
Interviewer: Good Morning, Sachin. How are you doing?

Me: Good Morning. I am doing good, Sir!
Interviewer: Great. Let’s start with a short case. Our client is Tesla. They want to enter in the Indian Market through electric cars. Should they do it?
Me: Alright, Sir. To reiterate, our client is Tesla who wants to enter into the Indian Market and we have to evaluate it. Is there any other objective I must look
at?
Interviewer: Yes, that is right. Just evaluate the idea.
Quick note It is good practice to confirm the case and the objectives with the interviewer so that everyone is on the same page.

Market Entry
Market Attractiveness Client Capabilities
Potential Size Industry Structure
Market Size Growth Share Price Competition Substitutes Regulations
Cost Based Competition Based Value Based
70
Interview:
Me: Before I proceed, could I ask you a few preliminary questions? Interviewer: I want you to walk me through your approach of estimating the price.
Interviewer: Yeah, go ahead. Me: Sure. Could I take a minute to list down all the factors?
Me: I want to understand what is the client’s objective while entering Indian
Interviewer: Yes. Go Ahead.
market and what is the timeline we are looking forward to.
Me: If one has to price an electric car, it can be done in three ways. One,
Interviewer: Objective is to become market leader and the timeline is asap.
look at the cost incurred and apply profit margin over it. Other would
Me: Okay. Since electric cars are new to Indian market, my assumption be to price based on competitive scenario. Finally, it could be based on
currently is competition is minimal. Is it a fair assumption to make? the price customer is willing to pay based on the value he/she is
Interviewer Yes. You can ignore the competition. getting. I want to start with cost based pricing. Do you have any data
regarding the same?
Quick Note Always walk through your understanding instead of directly asking
what is the competitive scenario. It may be wrong but that shows that Quick Note The interviewer always appreciates simple language instead of using
the reason why you are asking it. marketing jargons. I didn’t said cost based pricing or value based
pricing. Instead I explained him the three pricing strategies.
Me: Okay. Give me 2 mins to structure my thoughts in evaluating the idea.
Interviewer: I want you to look from competitive scenario.
Interviewer Sure
Quick Note It was weird because throughout the case he told me to ignore
Me: I have structured the problem as follows. Walked him through my competitive scenario but now suddenly he wants me to look from
buckets. I want to start with market attractiveness and analyse it both competitive lens. It is always good to list down all the factors even
quantitatively and qualitatively. If the market seems attractive, I would though some of them might not be meaningful based on information
move on to analyse the client capabilities and how it can be leveraged gathered till now.
to enter the market either through greenfield investment or through
Me: Okay. Can you let me know at what price are competitors pricing
partnerships. I want to start with the market size estimation. Is it okay
electric cars at both manufactured in India and also imported vehicles.
or do you want me to focus on any other bucket?
Interviewer: Sure. Currently Mahindra sells it at 22 lakhs if domestically
Quick Note It is always important to give the big picture to the interviewer w.r.t to
manufactured and price for imported electric cars is 48 lakhs. Can you
your approach upfront. It has two advantages. One, if you are on the
tell me who would be the consumers of electric cars?
wrong track, the interviewer will correct you in the starting itself.
Second, it shows how comprehensively you are looking at the problem Me: Sure. Being a luxury good, consumers would be mostly upper-end
and you can prioritize which buckets to focus on. income segment people who are willing to pay the high price or
consumers could be tech-savvy people who are like early adopters or
Interviewer: It’s fine. I want you to do market estimation, you can take growth rate
innovators.
as 15% and market share as 100% ignoring competition. Ignore
profit/unit. Interviewer: Absolutely right. We can end the case now. Thank you!
Me: Sure, Market size, I would estimate as Sales = Volume * Avg. Price. I Me: Thank You Sir.
would first consider the pricing part since being a luxury good it will Quick Note My case started with market entry and went into market sizing and
drive the volume. Do you have an estimated targeted price or do you pricing. Interviewer wants to just see your approach and is not
want me to estimate it? considering numerical calculations. It is always important to be as
Quick Note At each point wherever possible, have the interviewer on the same comprehensive as possible in your approach and don’t miss any
page and always convey why are you asking that question. buckets.
71
Internship Company : GEP Consulting Interview – Round 2:
Sector : Consulting Interviewer Assume you own a jewellery franchise in a posh location. It is a
big spacious shop. A MakeUp guy wants some space. He asks
Name of the candidate : Arshdeep Singh
for rent on revenue sharing/fee basis, should you take it?
Type of Case : Market Entry Candidate Sir, what is the current situation? Is the firm making profits or
not?
The Interview Interviewer Profits are less at this location.
Interviewer: Hello! Who is your favourite player? Candidate Which segment is the firm operating in? High end or low end?
Candidate: Stephen curry, sir Interviewer High end
Interviewer: If he wishes to switch clubs how much should be paid to him? Candidate What about MakeUp guy’s target segment?
Candidate: Which position does he play in? Did he play as first 5 or Interviewer Middle End
outside, as some positions are valued more. Candidate What is the size of the shop? Moreover, what is the size needed
Interviewer: He is a Feeder. 3 point shooter and is highly valued. by MakeUp guy?
Interview Summarized the case and asked for validation Interviewer Assume any random big number, and MakeUp guy needs –
Progress 20*20ft area.
Candidate: Revenue can be generated following ways- Jersey Ads, Tv Ads, Candidate The current occupancy rate of jewellery shop is?
Merchandise, Tournament Victories, Royalty, Ticket Price. Interviewer 80%
Interviewer: Ok. So how do you associate value to each of these. Can you Candidate So, 20% is available for rent.
estimate the fee associated with match? Interviewer However, he needs more.
Candidate: For estimation of fee: Candidate The volume of jewellery in that 20*20ft and its price, inventory
Multiply ticket charges with no of seats * avg occupancy rates turnover ratio (Calculate lost sales for this 20*20ft annually)
* ratio of people coming for this team (home and away)* (add Interviewer Is this good enough? Think of something else.
more to MECE) Candidate Yes, Brand value.
Interviewer: And for TV ads? Interviewer Yes. Proceed.
Candidate: We would take data from TRP ratings, indicative of ad revenue Candidate Ask for annual amount for lost sales
and industry trend. Then estimate for each factor. Interviewer Yeah.
Interviewer: Write down the final formula. Candidate Is it higher?
Candidate: It would be weighted average (Price of each factor* volume of Interviewer You are getting more money and losing fewer sales – but tell
each) your final recommendation as a consultant
Candidate Not to give – because Makeup guys operate in the low and
middle end which is bad for long-term brand value. As jewellery
shop operates in the high-end segment, product differentiation
is important.
Interviewer This was a real-time case, and we did the same. Thank You
72
Internship Company : GEP Consulting option. We can run a marketing study to estimate the annual demand
at Rs.60000. By comparing the value of ‘n’ with this demand we can
Sector : Infrastructure arrive at the decision
Name of the candidate : Vijay Venkatesh
Interviewer: That sounds good. Now we can get into the numbers.
Type of Case : Manufacture
(In-house or outsource) Me: Expenses like marketing and sales are common to both methods and
can be neglected. R&D expense is a sunk cost and hence can be
neglected as well. I am assuming that there are no Fixed costs in
The Interview ordering from China. There is only a variable cost of Rs30,000 per unit
which is paid by Micromax to the Chinese firm. I am also assuming that
Interviewer: Hello Vijay, you can take a seat. I am Prashant, director at GEP the variable costs in local manufacturing include material costs and
consulting. Why don’t you give a brief intro about yourself as I go labor costs. Can I take the sum of these costs as 10,000 per unit? Is that
through your resume. a reasonable assumption?
Me: Hello Sir, I am Vijay Venkatesh. <brief intro> Interviewer: I am looking more at the approach than the numbers. So you can take
Interviewer: Ok, I see you have some manufacturing experience. So let us dive those assumptions
straight into the case. Assume you have Micromax as your client. Me: Ok. I am assuming that we need to make an upfront capital investment
Micromax has come up with a new phone after intensive R&D. The of around Rs .100 crore – About 1 crore for land and rest for the
phone is technologically superior to iPhone. There is only one variant equipment and machinery of the plant.
which it wants to price it at Rs. 60,000. The company has two options Interviewer Ha ha, I don’t know if those numbers are reasonable. But it’s fine, carry
for producing this phone- It can either build a new factory in on.
Uttarakhand or it can source it from a contract manufacturer in China.
I want you to come up with a methodology for arriving at this decision. Me: Land does not depreciate and hence there is no depreciation expense. I
Take a couple of minutes to think if you need and start solving this want to assume the useful life of the plant as 10 months and salvage
value as zero. So if I take straight line depreciation, we get the annual
depreciation expense as 9.9 crores per year. So now we have to solve
the equation
Interview: 9.9 crore+10,000*n=30,000*n
Me: I think this case can be related to concepts of economies of scale. The
Interview As I attempt to solve the above equation for determining ‘n’, the
fixed and variable cost structure for the two options is different. So, the
progress interviewer stops me.
breakeven points for the two options are different. I would expect the
local manufacturing option to have a higher fixed cost and a lower Interviewer: Ok, you can stop here Vijay. Now it's just a plain numerical from here.
variable cost. The Chinese option would have a higher variable cost. So You dealt with the case well. It was nice speaking to you.
essentially, we can identify a ‘n’ below which it is suitable to go for Me: Thank You Sir.
Chinese option. Above that ‘n’, we can go for the local manufacturing
73
Internship Company : Hay Group
Sector : Manufacturing Interview:
Interviewer: The client is incurring major costs on the human capital front.
Name of the candidate : Amit Barnwal
Type of Case : HR Me: Is there a particular factory which is incurring higher costs or does the
same problem exist across all factories?
The Interview Interviewer: No. Only the costs for factory 1 are disproportionately high.
The first case study in round 1 went on for 35-40 minutes. Me: Can you please tell me what are the reasons for this?
Interviewer: The CEO of the client is 65 years old who is running 4 factories.
He is worried about the bottom-line of his company. What do Interviewer I would want you to consider and list out the possible reasons.
you think has gone wrong? Me: The product specifications or the process followed for manufacturing
Me: Are we facing problems on the revenue front or on the cost might be different in the factories.
front? Interviewer: Yes, the process being followed is different. Factory 1 is very low on
automation as compared to the rest of the 3 factories. Therefore,
Interviewer: The revenue is good but the costs are higher than our
factory 1 has 900 workers while the others have 300 each.
competitors
Me In that case, I feel that the client should go for automation in Factory
Interview The interviewee lists the various cost components based on 1 as well
progress supply chain – RM cost, Human capital cost, Machinery cost,
Interviewer How much do you think would we save from this?
Utilities, Marketing & administrative cost
Interview The interviewee asked for information about the costs involved in
progress automation, the increase in productivity and current labor costs and
gave a ballpark estimate for the savings
In case of automation, the client would need to layoff 600 employees?
Interviewer: Factory 1 is the company’s oldest factory and the workers have had
long term association with the company. The CEO values these
RM employees greatly. How would you go about handling this situation?
Me: The client should not fire all the employees at once. The layoff should
Utilities
Variable be gradual. The older employees should be allowed to serve out their
Revenue - Cost Wage term until retirement while younger employees should be trained and
Decline S&GA rise
Internal - re-skilled to work with new machines or relocated to other factories.
Profits - Client Increase Dec. in
Decline in Cost Labour Productivit Interviewer: There would be a natural resistance among the employees to
Industry - y Gradual
Issue Inc. in Layoff relocate. How would you tackle it?
Land Numbers
Fixed Cross Me: The client should build a township around the plants to improve the
Cost Training quality of life which would encourage the employees to relocate.
Machinery
74
Internship Company : HAY Group Me: Such people should be presented with lateral opportunities. This means
we can create designations between the existing levels to provide them
Sector : HR Consulting with a sense of achievement but their job description would essentially
Name of the candidate : Samikshya Meher remain the same. Of course, deserving employees who could not be
Type of Case : Handling promoted because of constraint of numbers can be rewarded with good
hikes in salaries.
The Interview Interviewer: Let’s say you’re reporting to the CEO of your firm, who is supposed to
present these recommendations to the client CEO but he is not able to
make it and you have to fill in for him. How do you handle the client who
Interviewer: The client has two levels of organizational structure – A & B.
is very insistent on talking to only the CEO of your firm?
Level B has 50 employees out of which 10 are to be promoted? Interview The interviewer mentions that they’ll continue the case in the roleplay
How will you decide? progress format where he’s a grey haired highly experienced client CEO and the
Me: Can you give me some information about the nature of the interviewee is a consultant working for Hay group.
Me: I’ll try to convince him that I am the one who has run the project and
company, the size of the company and the current appraisal
performed the analysis. I’ll quote some of the data and the associated
system being followed? analysis to prove that I have spent considerable energy & time on the
Interview Interviewer gave generic answers which the candidate thought project.
Interviewer Okay. So let’s say you have to fire some of the people who were not
progress were not too relevant from the case solution point of view. The
promoted. How will you decide the number the people that need to be
questions were an attempt to identify extraordinary situation, if
fired?
any, the client is facing. Me: I am assuming that the performance of the employees when rated
objectively would follow a normal distribution. Since it was mentioned
that 10 out of 50 employees have to be promoted, I’ll recommend that
Interview: another 10 should be fired (20%) and 30 should be retained (60%)
Interviewer: The people who need to be fired are your close friends. How will you go
about firing them?
Me: While promoting the employees, there needs to be a balanced
evaluation of the person’s skills. 360 degrees feedback system would Me: I will leverage my friendship to get them to open up & first understand
ensure that supervisors, subordinates and peers get to express their reasons for their non-performance. I’ll also recommend them alternate
opinions which can then be considered to decide upon the promotion of career options.
the employee. Interviewer Last question. Tell me the names of the people that are needed to be
Interviewer: Fair Enough. How would you pacify highly experienced employees who fired.
are not promoted? Me: I am sorry but I cannot divulge the names now. I’ll talk to my superior
and let you know by the end of the meeting
Interviewer: Thank you
Me: Thanks!
75
Internship Company : McKinsey & Company
Sector : Entertainment Industry
Name of the candidate : Abhishek Aloke Ghosh
Type of Case : Market Entry
The Interview – Case 1

The interviewer had a dossier containing my profile, and asked me about my CGPA at IIMB, the Aditya Birla Scholarship (ABG) interview
Interviewer: A multiplex, based in India, is in the process of diversifying into food and beverages (F&B) as a packaged food business. The CEO wants you to analyse
the issue and advise what the multiplex should do.
Me: Hi. I would like to structure my analysis into the following three parts. I will start with a few preliminary questions, follow that up with my hypothesis and
issue tree and end with recommendations.
To understand our business better, I’d like to know the following details-
a. How many screens do we have in India and where?
b. What are our existing capabilities in the F&B segment?
c. What is the objective of our diversification- growing profits/sales or market share?
Interviewer: The multiplex has 500 screens across 50 cities. They sell popcorn, chips and soft drinks sourced from 3rd party vendors currently. The objective is to earn
INR 1,000 Cr. in sales in 5 years.
Me: The sources of revenue for this business can be divided into the following segments- snacks such as traditional Indian samosas; popcorn, nachos, chips
and corn; ready-to-eat meals; cookies and chocolates; baked goods and beverages such as colas, non-colas and dairy products.
Interviewer: OK, how would you determine the best segment to enter?
Quick note This was a clear indication for a market entry framework
76
Interview: Me: I’d first like to ask a few preliminary questions. Where is the health centre
Me: I would draw up the following issue tree to test my hypothesis that entering a located? What does it do exactly? And what does the manager mean by
certain segment would meet our revenue targets. The factors that would confirm throughput?
my hypothesis are if within our multiplex firm- we have had prior experience in Interviewer Patients visit the center through referrals and get medical tests and reports as part
F&B, and if we have the necessary resources in terms of production, distribution of preventive diagnosis for diseases. Let’s say that since you’re from Mumbai, it is
channels, sales and marketing capabilities or a strong brand. In terms of in Mumbai. What does throughput mean to you?
diversifying into the F&B segment, we could further explore whether we need to
Me: Well, throughput might mean maximizing output in terms of the number of tests
launch a greenfield campaign, get into a joint-venture or acquire an established
we conduct or the number of patients we see per day.
player. Further, our hypothesis would be confirmed if the competition in the
multiplex F&B segment is fragmented in terms of market share and if our current Interviewer: Would you define It in monetary terms or in absolute numbers?
market segment of middle and upper middle class urban consumers’ tastes and Me: I would look at the volumes, as that would be a driver of the revenues we make.
preferences match with our product offerings. Before proceeding, I would like to understand the entire process that a patient goes
Interviewer: Given the profile of moviegoers to our multiplex and conditions in the market, through to identify the bottleneck. Once we have identified the bottleneck, we
which segment would you consider entering? And how? I want you to shoot must decide how we can exploit it to minimize idle time.
creative marketing ideas as you go along! Interviewer: Good. Here’s the sequence of operations- registration, nurse check, blood test,
Interview This was partly a stress-test as the interviewer may appear impatient at times- urine test, ECG, X-ray and doctor check. Here is a list of the time/patient (in mins.)
Progress checking his mobile and asking you to hurry up, but remember this might just be a and the number of personnel required for each operation.
simulation of a difficult client. So, just stay calm and MECE! Me: OK, I will divide the time/patient by the number of personnel and the operation
Me: Given that traditional Indian snacks are a INR 20,000 Cr. business with a 15-20% with the maximum ratio is the bottleneck. ECG, which takes 2.5 min per patient per
growth rate, it would seem like an attractive business to enter. However, given the personnel. We can further segment this into technical efficiency ((working hours of
increasing level of health consciousness among urban consumers, baked nachos the machine) divided by (setup time plus processing time per ECG)) and human
and corn would be a good bet as well. Ways in which we can move to our sales efficiency (working hours* % utilization divided by time/ECG) to determine the
target include- creating packaging that emphasizes the healthy and nutritional number of ECG’s conducted per day.
aspect of our product [clearly indicating nutritional information]; increasing the Interviewer: The setup time is standardized at 1 min. However, the processing time can be
points-of-sale through vending machines, as we may want to sell at school/college reduced by 1 min.
cafeterias or fests/concerts in addition to just movie theatres; creating an array of
Me: In that case, the number of ECG’s per hour would increase from 24/hr [(5 min./ECG)
spicy Indian flavours/Jain options for dip [with/without egg], which might help us
*(60 min./hr) *2 personnel] to 30/hr [(4 min./ECG) * (60 min./hr) *2 personnel], an
penetrate tier-2 markets in the future and integrating movie-cum-food combos in
increase of 25%. In that case, the bottleneck would shift and the X-ray and doctor
apps such as BookMyShow, and with Swiggy for home deliveries in non-multiplex
check would also become bottlenecks.
use-cases.
Interviewer: Good. How would you improve throughput through all the 3 processes?
Interviewer: Thanks, Abhishek. This was an actual case and I’m happy you thought about sales
out of multiplexes as well. Thank you for your time. Me: To increase throughput, the burden must be taken off the bottleneck. We could
check if the ECG test could be outsourced, if there could be parallel processing, if
an assembly line method can be adopted for the doctor check (akin to the system
Interview – Case 2: at Aravind Eye Care) and the supply of doctors and machines could be increased, if
The interview began with HR questions such as introducing myself, mentioning that I was from Mumbai, we have enough cash or headroom to raise equity/debt financing. [After asking for
and that I was a member of CulCom Spons and SMC. The interviewer asked me what I liked most about
further details on the ECG checks] We could also have the nurses follow a standard
the McKinsey process and what contribution to the team I was particularly proud of at IIMB. He also
operating procedure where they prepare the patients in the queue for the ECG/X-
asked me about a project on M&A in the pharmaceutical industry (between Sun Pharma and Ranbaxy) ray so that the non-productive time before the start of the procedure is reduced.
that I had conducted as an M&A(Tax) intern at KPMG in 2015. A plus was that the Partner worked in
the pharmaceutical sector and could gauge my understanding of the sector, apart from the fact that Interviewer: All this is fine. But we could have also considered whether the ECG process can be
the conversation was seen as an informal chat rather than a difficult interview done away with completely at the centre. Anyway, the other points were well
covered. Thanks for your time.
Interviewer: A manager at a health check-up centre has asked for ways to improve throughput.
How would you advise him?
77
Internship Company : Mckinsey & Company
Sector : Telecom Industry
Name of the candidate : Anadi Mishra
Type of Case : Revenue Growth
The Interview
McKinsey made sure I was comfortable before they started off with the process. I had three rounds of interview with The Firm. In the first round, I was asked to estimate the
number of employees in IT industry in India. This interview happened via video conference.
Interviewer: So Anadi, how are you doing today? We should start away with the case immediately!
Candidate: I am doing well, Sir! Yes, definitely.
Interviewer: There is a telecom firm. They have not had growth in the past. The firm has hired you to understand what is happening and what recommend them on
further plan of action.
Candidate: Alright, Sir. To reiterate, there is a telecom firm which has not grown in the past 2 years and they want us to come up with the cause of it and provide
them with recommendations. Am I right?
Quick note It is good practice to confirm the case and the objectives with the interviewer so that everyone is on the same page. My case question was easier so
there was no information asymmetry, but if the case line is long, it is definitely recommended to reconfirm the objectives.
Stagnant
Revenue
Internal Factors External Factors
Political Technology Economic Demographic

Regulation
Scenario Stagnation conditions change
78
Interview: Candidate: Sir, my intuition is that there is a price war in the industry.
Interviewer: Yes, go ahead. But before that, tell me how are you planning to proceed with the case?
Interviewer: That is right, but could you tell me why?
Candidate: My idea is to understand about the industry a bit, how big is my client, and how is the
competitive scenario? And then look at the external and internal factors that could’ve Me: One more question, when did the 2 small players enter into the industry?
affected the growth of the firm. Interview This was the important part of the industry
Interviewer: That looks brilliant. Please continue. Progress
Candidate: Okay. Where is our client located? And how long has he been facing this problem? Interviewer: I am glad you asked that. The two small players entered 3 years back.
Interviewer: The client is located in Philippines. The problem has persisted for the past 2 years. The Candidate: In my opinion, in order to gain higher market share, they started a price war which is
client is someone like Airtel in India. driving the overall industry revenue down.
Quick Note The interviewer said this on his own, they will most of the times try to make you Interviewer: Yes, that is absolutely right.
comfortable.)
Candidate: What is the competitive scenario? What are the market shares of the firms? And how Quick Note I know few candidates who reached till this point but forgot the second part of the case
big is our client? – recommendations; they did not progress to further rounds. Remember, it is not the
interviewer’s job to remind you.
Interviewer: There are three big players in the industry who command 80% market share, the client
is a big player, and two small firms who command 20% market share. Candidate: Given that we know it’s a price war, I would like to think for two minutes before
coming up with the recommendation. As the industry is shrinking because of price
Candidate: Alright. I think I have a fair idea of how the industry looks. I would now like to analyze war, constant revenue, or no growth in revenues implies that the market share of our
the internal and the external factors which have caused constant revenue for the firm. client is increasing. Hence, it should not do anything and continue with its current way
Which one should I look into first? of operating.
Quick Note It is always good to ask which bucket should be explored first. It saves time. Quick Note I was a little scared in giving this recommendation. But remember, sometimes doing
Interviewer: Let us look at the external factors. The company seems to be in a good operating “nothing” can be a strategy.
condition.
The interview ended and the interviewer discussed with me about three things my friend
Candidate: I could come up with the following factors that could affect the revenues of the firm-
would say about me.
1. Change in regulations which have put certain restrictions on the way firm
operates or where it operates Case for Round 3 – Unconventional
2. New technology which has driven down the price charged
3. Political
It was an extremely short interview of 5 minutes.
4. The economic condition of the country is deteriorating Interviewer: Anadi, real quick. A new technology has been designed which can send anything to space
5. The population of the country is falling instantly. Which three industries would you pitch this to?
Candidate: The first would be space industry itself, like NASA.
Interviewer: That is okay, but what else can you think of?
Interviewer: Well, that is not counted.
Quick Note The interviewer is trying to make me think more. This mostly means that the list is not Candidate: Okay, I feel I would put the technology for use in waste management which is a growing
exhaustive. But then since I wasn’t able to think what external factors I had missed, I concern on earth – plastics, garbage disposal etc.
decided to change my approach. Next would be travel and entertainment industry.
Earlier I was approaching the problem as growth strategy, I decided to approach it as
revenue problem.
Interviewer: Good. Could you think of something else altogether?
Candidate: Sir, since the firm is facing constant revenues, revenues can simply be written as Quick Note Note: The basic idea of such a question is to check how quick you are on your feet. The
product mix * volume of customers * price interviewer would drop hints at times.
When I say product mix, it means the services it offers, volume of customers is number Interview I was quite for about 30 seconds, still trying to think
of people opting for the service, and price is price of the service. Progress
Interviewer: We can look at the price. Interviewer: What according to you is biggest problem of factories?
Candidate: The machines get worn off because of friction and corrosion. So maybe we can have
Quick Note At this point of time, everything became clear to me. Price intuitively meant price war
machines operating in space to avoid that which would increase life of machines.
in the industry. And even though the consumer base could’ve been increasing year on
year, the price war was leading to stagnant revenues for the client. Interviewer: Good. That is it.
79
Internship Company : McKinsey & Company Interview:
Sector : Infrastructure Me: Before I proceed, I would like to understand the kind of organization we
are looking to collect the data for
Name of the candidate : Raj Parikh
Noshir: The client is a construction company on the lines of L&T in India
Type of Case : HR Analytics
Me: The employees in such companies can either be construction workers,
The Interview engineers overseeing the progress of projects or managers – are we
The first case study was with the McKinsey India Head, Mr. Noshir Kaka over VC. focused on looking out for data for any particular set of people?
There was discussion around my work experience at ZS Associates for 4-5 minutes Noshir: Yes, we would want to look out for data for construction workers
and the tools used for analytics. So the case lasted for ~10 minutes Me: Sure, give me few minutes to list down the metrics we would want to
Noshir: Good Morning, Raj. How are you doing? collect for construction workers
Me: Good Morning. Doing good, thank you. Noshir Sure
There was some interaction around my work experience at ZS and Me: Since the data would be for construction workers, educational
the tools used for analytics like SAS. qualifications would not be required. We would be interested in knowing
Noshir: So Raj, you seem to be a people friendly person and have worked about their basic details, address, working conditions, timely payment of
in the Analytics domain. If you were to collect data around people wages, proper segregation of work (for women workers), etc. At this
analytics, what would you look out for? point, I asked Noshir if there was any reason behind collecting the data
Noshir: Thank you, Raj. You have listed relevant points, So the company has
Interview The interviewee takes a sheet of paper and draws various
recently noticed that the attrition among workers has gone up. Do you
progress parameters that are required for people in any organization like think data collection can help in this case?
basic information, demographics, educational qualification,
Interview This got me thinking about construction going in the vicinity and if
experience, remuneration and benefits, performance reviews, etc.
progress somehow this was the reason for the attrition
Me:
Is there any other construction going on in the vicinity?
Noshir:
Interviewee Decision Tree Yes, another construction is going within a kilometer vicinity
Me: Then I would think data collection might help in this case if we can
somehow compare the benefits given to the workers at both the sites,
Type of Why Data working conditions, etc.
Organization Type of Employee Collection Noshir: So what do you think might be happening?
Me: There might be a problem with the number of working hours at our site,
the kind of work – hazardous and nonhazardous and improper
precautions for hazardous work, inadequate segregation of work leading
to heavy work being given to women, payment delays, no benefits like
creche facilities given to women at the site, etc.
Recommendation Parameters to suit Interview There was a hard stop at this moment and Noshir asked me to summarize
requirement progress the case. He appreciated the point around crèche facilities.
80
Internship Company : Mckinsey & Company
Sector : Automobile Industry
Name of the candidate : Shreya Raina
Type of Case : Market Growth
The Interview
I had 2 case interviews of 15 minutes each and one HR interview of 5 minutes. The first case interview was taken by an Associate Partner(AP), second one by a Partner and
the HR interview by the Senior Partner. The interviewers were very welcoming in the case interviews and the cases were interviewer led.
AP: Hi Shreya. How have the past few days been? Are you nervous?
Me: Hi. There’s been a mix of excitement and anxiety. Right now I’m a little nervous.
Interview The interviewer had general talk with me about the days preceding the interviews, dinners etc. to relax me. I remember discussing Munna Bhai MBBS with
progress him. Post 5 minutes, we dived into the case.
AP: I’m meeting an automobile client next week and I want you to give me some points to suggest to him. Their product line is focused on trucks. The client
is a market leader in manufacturing, 50% market share, but has only 20% part of the services segment. The client wants us to find ways to increase the
services revenue. We are looking for some disruptive ideas.
Quick note Always confirm what the numbers represent. For example, in case of market share, confirm if it in terms of no. of units sold, absolute value in currency
terms etc.
Trucking Service Business
Accessibility Quality Customer Relationship
Employee Affordability Availability

Skills
81
Interview: Me: It will depend upon who is making the repair decision. Although cost might be borne
Me: I would like to understand the client better before I proceed with the analysis. What by the fleet owner but truck drivers will be getting the repairs done and they are very
kind of trucks does our client have? (Tonnage, Size, configurations etc.) possessive about their trucks and treat them as their brides. Hence, they might want
AP: To make things easier let’s assume that our client has just one type of truck to take the trucks for servicing to someone they know.
Me: Where is the client majorly present geographically? AP: Okay, that could be one reason. Let’s go back to quality. Can you elaborate more on
AP: The client is based out of India. Client’s trucks run across North-South India routes. availability?
Me: Who are the major customers of the client? Me: It is possible that space may not be available for multiple repairs at the same time
AP: Majorly the trucks are bought by fleet operators which could be deterring the truckers from coming to our service stations
Me: Who are the major competitors in the service industry? AP: Bay availability is an issue. Can you think of a reason why bay availability is an issue?
AP: The service industry is fragmented. The truck drivers usually get servicing done by local Me: It can be because of high TAT (Turn Around Time)
players. AP: Yes. Our TAT is comparatively high. What can we do to reduce it?
Me: I would like to take a minute to think about the major issues and possible solutions
Quick Always some time to understand the problem and go through all the info the Me: Can you tell me how the servicing process works?
Note interviewer has provided you before you jump into solving. Otherwise you might end Quick If you are not clear about any process, ask! They are always willing to give you relevant
up missing out on considering some important point in your initial thought process. Note information. Also, try to break the problem into smaller segments. Here by asking for
Also, if you have any doubts, clarify! It’s better to ask something twice and take more the process, I wanted to find out the bottleneck and see if more efficiency can be
time to get to the correct answer than solving the wrong question! brought in at each step.
Me: I have identified 3 major issues that could be affecting the clients service business- AP: Sure.
Accessibility, quality and employees. I’ll like to elaborate on each one: Interview I noted down the process in a flow format and clarified the any doubts I had. The AP
Accessibility: Since trucks operate across north and south routes, our client may not Progress patiently explained everything. He also directed me to think in direction of digital
be present across all locations solutions. After that I listed down all the possible solutions that I could think of.
AP: That’s right. All the major players are facing this issue. Huge capex is required to be
present in more locations. How can we tackle this issue?
Me: We can adopt a Franchise based model to increase our presence and also give the
customers warranties for some time to get them hooked
AP: We already have that in place
AP: Figuring out the issue takes some time. Also there are multiple to-and-for involved in getting the
Me: We can also go for a Revenue-sharing model with other major truck manufactures final nod from the customer to go ahead with the repair.
who want to grow service revenue. Divide the country into regions and allocate Can you think of some digital solutions that can be implemented?
different regions to different companies for example our client could look after Me: 1) Knowledge Management: Keep documenting the common problems and possible
servicing in south India, Tatas could look after servicing in North etc. quick repairs
AP: Yes. We can definitely look into that! 2) Android App: For self-diagnosis of issue so that we can eliminate time wasted in step
2
Me: Second issue that I could think of was quality of repair. This can be further segmented 3) Automate the go/no go from customer process on app
into training of employees, availability and affordability. 4) Payment: We can have 3 ways for it- Online, Credit system, Pre-payment accounts
Quick So here it might seem that my structure wasn’t MECE as employees are cropping up in 5) Bay Availability: We can update on the app regarding the nearby service centers and
Note 2 segments. But in “training of employees” I wanted to analyse their professional skill availability of space over there. This will optimize the repair process and improve
however in “employees” I wanted to analyse the personal relationship angle. Ideally, I customer experience.
should have named the headers better but if you are able to convey your thought AP: So it would be like an Uber for truck servicing.
process clearly to the interviewer, things will be ok. Me: Yes. On similar lines.
AP: Let’s come to quality later. What’s the third issue? AP: Thanks Shreya! All the best for the next round.
Me: Third one would be employees. By this I mean their relations with truck drivers. Quick Note It was more of a conversation than a case. Don’t get nervous when the interviewer asks counter
questions. They are just trying to understand your thought process. Be confident and answer them.
AP: You mean the informal network. But the customers to our clients are fleet operators
Take the hints that interviewer is giving you and proceed in that direction.
so do you think still personal relations will matter.
82
Internship Company : NRI Consulting Me: (Interviewer provided me with the city population data)
Since India is a young country, can I assume 50% population to be below
Sector : Infrastructure 32 and assuming equal distribution below this age, can I assume that
Name of the candidate : Atul Dukale 30% of this to lie between 22-32. i.e. 15% of total population.
Type of Case : Guesstimate Interview Go ahead with this data.
The Interview Me: Okay. Since in this group people will get married once, so 1/10th (22-32)
of this population will get married every year. Since girl & boy
I was called for the interview 2nd in queue. As I entered the room, my interviewer,
contribute to one marriage, so no of total marriages equal to 1/20th of
Division head at NRI greeted me. He asked me to take a seat as he sat across the
15% population
desk. He already had a copy of my resume and took a quick glance.
Interview Interview You said something about different class of functions. Can you
Good Morning, Atul. How are you doing? Tell me about yourself?
elaborate on that part?
Me: Good Morning Sir. It is going well. I told him about me and Me: Out of these total marriages 10% will be royal weddings (Rs1000 per
explained my work experience in detail. (He showed interest in plate, 100 Guests), 30% will be middle class (Rs 300 per plate, 500
my work experience) Guests), 60% simple weddings (Rs 100 per plate, 500 Guests). (Showed
Interview the calculation for total business size)
Great! I want you to estimate the catering business market size in
a city. You can do it for Bangalore or your hometown, anything Interview Given limited exposure to different kind of marriages, you have done a
which suites you. Could you help me with this? good job.
Interview Let us move on to next problem. One of the cement player wants to
Me: I chose Bangalore. Could you elaborate more on what type of
progress enter African country, what factors should he consider while making
catering business you are looking for (functions like marriages or decision?
office catering)
Me: Legal & political issues in the country, Competition in the country
We are interested in all sort of segments. However, for now, you (Current & potential future competitors), Market potential for the
Interview can focus on marriages cement industry (Housing, government construction projects etc.), JV
progress: opportunities
Labor & technology issues
Interview Well, these are the some parameters one should consider, however
Interview: there are multiple parameters on which decision depend on.
Me: Gentle nod.
Me: Okay. Thank you for that information.
So essentially this can be estimated based on number of marriage Interview: Okay Atul, one last question for you. Why consulting?
functions happening in a year. Roughly, people in age group 22-32 will
Me: Told my reasons for interest in consulting.
be getting married. So, population in this age bracket could help in
estimation. Further, the size and standards of marriages can also be
divided into different brackets. Can I assume these parameters to be
the governing parameters for my estimation?
Interview Sure, go ahead. How will you come up with the number of marriages?
83
Internship Company : Roland Berger Interview:
Sector : Marketing Me: I have a few clarifying questions, sir. Is there any change done in the
product, composition or pricing?
Name of the candidate : Tarik Interviewer: For this case, you can assume these factors have stayed the same.
Type of Case : Sales decline
Me: Is there any new competitive threat in the market?
The Interview Interviewer: No, let’s assume ceteris paribus here.
The interview was short and lasted for around 15 minutes during which the Me: Have there been any changes in the auto industry?
interviewer probed on my interest towards consulting a guesstimate, and a full Interviewer: Nope, none that concerns to the problem our client faces.
case. Me: What is the objective of the case, sir? Few possible goals could include
Interviewer: Good Morning, Tarik. How are you doing? – boosting sales, improving bottom line, increasing market share
Me: Good Morning, sir. I am doing good. Interviewer: You can assume that the client wishes to boost the sales volume here.
Interview There was a small guesstimate- Calculate volume of shampoo Interview The interviewee took some time to organize his thoughts and laid out a
progress used in your dorm per month followed by HR questions like progress broad plan for an alternate plan to market Renault Duster.
why consulting? Me: I would reorient the marketing strategy of the brand to boost sales.
Interviewer: Renault Duster has been launched into market, has had high Renault duster has been launched as a youngster’s car with high
sales initially and then the sales growth declined. Can you performance. We should now concentrate on interiors, such as AC and
figure out why? reposition the car as a family car rather than a performance car.
Interview The interviewee takes a sheet of paper to outline the factors Interviewer: Why do you want to change the positioning of the brand?
progress relating to sales decline that can help to structure the solution Me: Most car purchases in India is emotion based. The advantage with such
to the case better. a shift in positioning would enable us to target a much bigger market
segment that has a reasonable ability to afford Renault Duster. Also,
changing only the interiors is low on cost and therefore a feasible
strategy to experiment with. Plus, focusing on family consumers does
Sales - Decline
not necessarily mean that we shall lose our young customer base.
Interviewer: Are you done? Any more suggestions?
Internal - Client Industry - Issue
Me: No, this is only 1st half of the campaign, we can launch a limited edition
of duster (sports or X) with few SKUs, tuned for better acceleration and
Revenue - Decline Increase in Cost
few stickers etc. so that minimum investment is needed. This creates a
new brand with premium pricing, which can boost sales further. With
Price Quantity Product Mix limited quantity in the market, there is reduced downside risk. Based
on the customer response, we can mass produce this as a different
Demand Supply model with some repositioning and product segmentation.
Interviewer: Thank you. I think we are good.
Internal External Me: Do you want me to add something more to it?
Interviewer: No, it’s fine. Thank You
Forecast Dealer Marketing Customer
84
Internship Company : Strategy& Interview 2
Interview The interview begins with a quick introduction. The interviewer asked me which field I
Sector : Steel progress was most comfortable with. I answered telecom, and added that I was also open to
Name of the candidate : Gaerik Chhabra any other sector. The interviewer suggested steel industry, to which I said I would love
to give it a try!
Type of Case : Guesstimate & Profitability Interviewer: So, let’s now do a case. A steel supplier with global operations is in financial distress
and wants to improve its profitability.
Interview I Me: What’s the primary operation of the company and which regions does it operate in?
Interview The interview began with a quick round of introduction – primarily around my
progress resume highlights - work experience in Goldman Sachs & PORs and the reasons Interviewer: The company has operations in primarily US and Europe. It supplies and ships raw
to join consulting. steel across the world.
Interviewer: Me: Are other firms also facing a similar problem in profitability?
Fair enough, can you guess the number of tennis balls sold in Bangalore daily.
Interviewer: No, it is specific to this firm only.
Me: I would like to start with the revenues then. Has there been a decline in the revenues
Interviewee Decision Tree of the firm?
Interviewer: The revenues are fine. We can directly move to costs.
Tennis Balls in Bangalore Me: I believe that it would be safe to assume that the costs have been increasing [The
interviewer nodded]. Does the company sell different segments of steel?
Interviewer: No, they sell only one product – raw steel. Let’s try to focus on the value chain of a
steel supplier. What do you think is their value chain?
No. of Tennis Training Tennis Ball Me: [Keeping it simple] I think it would start with sourcing the raw materials, storing them
Schools court / Hours / Life (In in the warehouse, applying labor to produce steel, storing the produced steel and
then shipping it.
Me: I would divide Bangalore into majorly into roughly 15 areas. There would be Interviewer: Fairly close. You can assume that the problem is in the shipping the finished steel.
some 10-15 high-end schools that would actually have a tennis court. Each
school would have on average 2 tennis courts. Those would have 3-4 hours of Me: Would it be safe to assume that rail and road are the only modes of transportation?
tennis training each day. At this usage, I assume the tennis balls would generally And have the costs increased in either?
last 2 weeks. [Multiplied the numbers to come up with a guess]. Interviewer: Yes, the cost per unit of shipping by rail has increased
Interviewer: Does that number sound right to you? Me: Is that the case from all factories?
Me: [I genuinely felt that the number sounded less] No, I think I am missing Interviewer: No, it’s only in the US factories. How would you improve the profitability there?
something. Me: If the contracts are not binding, we can renegotiate the contracts with the
Interviewer: Do you want to take another try? distributors or move to a new distributor. Also, we can consider shipping more
finished steel via trains.
Me: [After thinking for a few seconds] I missed the fact that tennis balls are used for
Interviewer: Sounds good. That would increase profitability by 5%. You can assume that is the only
playing cricket! problem in the US. Let’s explore if there are possibilities of savings in Europe.
Interview The interviewer asks the interviewee to redo all the calculations again, not Interview After this, spent another 10 minute on exploring the value chain in Europe and found
progress spending too much time on details, but come up with a final guess number. The progress that the cost of raw materials was the reason. The interview took 25 minutes. Make
number sounded better and the interviewer agreed. sure that your answers are short and crisp. Show the willingness to try even if you are
Interviewer completely unaware of the field.
Sounds good. Thank you Gaerik.
85
Internship Company : Strategy&
Sector : FMCG
Name of the candidate : Jagrit Kumar
Type of Case : Manufacturing Set-up
Interview
The first case study was with a Strategy& Director. The interview was typically
short & uniquely without pen & paper. Interview The interviewee takes a sheet of paper with the following illustration:
Director: Good Morning, Jagrit. How has the day been? progress
Me: Good Morning. So far so good.

Director: <After a brief discussion on resume> Why don’t you tell me one thing that
is not on the resume?
Me: I love photography. I pursuit it as a hobby.
Director: Do you have any pictures that you would like to show?
Me: Sure.
Interview The interviewee shows few good pictures on phone. And a short discussion
progress ensues about them.
Director: These are great! Let’s do a quick case now. I don’t want you to use pen and
paper. Let’s discuss about it.
Site Selection Director: What does this indicate to you?

Me: <after thinking for 5 seconds> These are locations marked on the India map
which can indicate a variety of things like offices, manufacturing facilities,
Geo / Political Demand Supply Distribution
warehouses, shipping dockyards etc. based on the context.
Dynamics Dynamics Synergies
Director: Alright, Jagrit. These are 3 different manufacturing facilities. Your client
wants to set up a new facility. How’d you go about advising him?
Delivery Market Expected Fixed Cost Variable Me: Sure. I’d like to ask a few clarifying questions before I proceed with the
Time Reach Sales Cost analysis. Could you please help me understand:
a) Which industry does the client operate in?
b) What is the primary reason for expansion? Is it external i.e.
market driven decision or internal i.e. growth strategy driven
decision?
86
c) From what I observe, all the existing facilities are near coast. Is Right from raw material sourcing & inbound transport, warehousing,
that a necessary requirement? If yes, do we know the reason? manufacturing (cost of labor, energy, packaging & inventorying), outbound
Director: Very well. The client is in FMCG space. Thy are looking to expand to increase transport, marketing and distribution related costs.
capacity. And as rightly pointed out, proximity to coast is a necessary Director: Very well. Anything else that you would like to consider? <again referring to
condition as the products are shipped to external markets. the illustration>
Me: Do the existing capacities produce the same category of FMCG products? Me: We must look at the possible synergies between the existing facilities and
the upcoming one. Established network can be leveraged to reduce costs
Director: Yes, the product category is the same.
related to permits/licensing. Raw material sourcing & distribution can be
Me: I will take a moment to structure my thoughts. optimized with economies of scale.
Quick Since this is a case without the use of pen and paper, making mental notes Director: Great. I think all the parts were comprehensively bucketed. It was a good
Note is essential. The focus thus should be on the flow of conversation and discussion. Thanks, all the best.
making mental milestones as the conversation progresses. Me: Thank you.
Me: I would begin my analysis by understanding the macro-level dynamics to
narrow down on the geography. The following states share the Indian coast:
Gujarat, Maharashtra, Goa, Karnataka, Kerala, Tamil Nadu, Andhra Pradesh,
Orissa and West Bengal. Is there any clear political-economic rationale
currently prevalent to not consider any of these states?
Director: You may leave out Goa & Andhra Pradesh on that regard.
Me: Alright. The major decision drivers can be categorized based on supply side
dynamics and demand side dynamics of the facility. Demand side dynamics
refer to the expected sales, reach to market etc. indicating to the revenue
drivers. Supply side dynamics, on the other hand focuses on the resources
like land, RM, labor etc. making the cost drivers more important.
Eventually we do an IRR comparison for each of the shortlisted sites to
zero on one. Should we explore the cost drivers first if that’s fine with you?
Director: Yes. Let’s focus only on the cost drivers. Tell me what are the major heads
that you’d consider.
Me: <Taking a moment to structure the thoughts> I’d like to structure costs into
Fixed Cost & Variable Cost. Under Fixed Cost, the major heads are Cost of
acquiring land, Permits/licensing cost, Facility construction related costs,
Machinery procurement, Auxiliary resources cost (like Water), HR-related
costs
Do you want me to consider the Variable Cost too?
Director: Yes, why don’t you briefly tell me what all would you consider?
Me: I would go via the value chain to estimate variable costs.
87
Internship Company : Strategy&
Sector : Chemicals Interview
Name of the candidate : Priyasha Kushwaha Me: Do you want me to consider the profitability aspects too while
Type of Case : Market Expansion deciding the market segment?
The Interview Interviewer: No. Profitability is not a consideration.
The case round lasted for 25 mins. Me: For the entry, we would begin by identifying the synergies that
Interviewer: Good Morning, Priyasha. How are you doing? exist in the current value chain.
Me: Good Morning. Doing good, thank you. Interviewer: Okay. Elaborate on this.
Interviewer: The client is a chemical company which manufactures specialty Me: Value chain can be broadly classified into 3 steps –
chemicals based on downstream products from refineries. It is Manufacturing, Warehousing & Distribution. First, we need to
evaluating entry into a new segment of chemicals. Which consider if the client’s current plants can produce the new
segment should it enter? chemicals without any major investment. For warehousing,
Interview The interviewer lists 7-8 segments of chemical industries.eg. additional capacity enhancement would need to be
progress Pharmaceuticals, Paints, Agro-Chemicals, Explosives etc. and the considered. Finally, we would prefer to enter the segment
interviewee was supposed to choose the segment from among whose market location overlaps with market of our existing
the mentioned categories. products.
Interviewer What would be the priority order for these parameters?
Interviewee Decision Tree Me: Since it would take a lot of resources to build a new supply
chain, the most important factor would be the distribution
network. This way, we can eliminate products whose market is
Evaluation -Market Entry
different from the current footprint of the client. Next would
be the manufacturing, those products which can be
manufactured in-house or can be used as raw materials for our
current products and vice versa should be preferred. Last
Market Size Profitability Competition Company
factor would be warehousing considerations.
Interview Based on this, the candidate could narrow down the list to 2 or
progress 3 alternatives, an example of Selection by Elimination
Internal Synergies External Interviewer: You’re right. Distribution would be a major concern.
Capabiliti factors Warehousing and even manufacturing can be easily
outsourced. Well Done!
Manufacturing Warehousing Distribution Marketing
88
All the best!
-Team ICON
89

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IIM BANGALORE

ICON-IIMB CONSULTING CLUB

A typical interview for a consulting firm is a mix of “case” and “fit”.

Assess how coherently the candidate can present himself in a conversation

Case Study group

A thorough preparation of 10‐15 cases is recommended through this mode

Self-study of solved cases, when group activity is not possible, is beneficial

Company’s websites (and neutral sources such as Wikipedia!)

The selection process has following stages:

A. Resume Short Listing

Fit Interview: 15 – 20 minutes

Case Interview: 20 – 30 minutes

DO’S AND DON’TS OF A FIT INTERVIEW

Present a coherent picture of yourself in an articulate manner

Get defensive when the interviewer presents a counter argument

Narrate stories that present contradictory images of who you are.

Making assumptions is a necessity- always confirm their validity

Call center – cut costs per employee by 0.65$

What are the parameters you will use to evaluate?

Client & service overview:

Case interviewer to describe the Client situation to the interviewee

What would the price of this service be for the company?

Competition price : $250

No additional data / hints

What is likely to be found on several gaming sites? Malware

What would the price of this service be for the company?

Here are some potential answers by stage:

Me: Good morning, may I come in?

Staffing model Regional Regional Global

3 broad service areas

India Specific information

India office Bangalore Mumbai New Delhi, Mumbai

Comprehensive Restructuring, M &

Oil & Gas, Consumer

Consultant Consultant Associate

Manager Manager Manager

Bain BCG GEP Consulting

# industry 15 20 7 broad service areas

India Specific information

India office New Delhi, Mumbai New Delhi, Mumbai, Mumbai

Consultants 160-180 280 NA

Private Equity Devising strategy or Procurement, supply

Keep the lead in PE Hold on to areas of

Case Team Leader Manager

McKinsey & Company Roland Berger Strategy&

Consultants 8500 2400+ employees 3300

Staffing Global Central Regional

India Specific information

India office Gurgaon, Chennai, Mumbai, New Mumbai, New Delhi

Partners 40 (13 directors) NA 2

Managing Noshir Kaka Wilfried Aulbur

Speciality Devising strategy or Strong presence in Energy (oil & gas),

Priorities Market leader NA Establish differentiated

Create deep impact NA NA

Career Associate Consultant Consultant

progression Engagement manager Manager Manager

Assoicate principal Principal Partner

The 4 major stakeholders in the Aviation industry are:

Porter’s Five Forces