Case Interview Process

PROBING QUESTIONS
• Prioritize understanding of the Core Question, the Scope, and the Missing Information using BTC:
o BACKGROUND: Geography Reasons Means (Где, Почему, Как)
o TARGET: Desired End-Goal Route KPI (Чего хотим, Путь)
o CONSTRAINTS: Internal External Challenges (Ограничения)
• Read the brief sentence by sentence & see what more can you learn to identify appropriate probing Q
• Use Probing Qs to identify irrelevant branches and cut them off as early as possible
• Ask WHY (and other BTC) not only about the client, but also their customers – to clarify case drivers
• Always ensure to understand the Boundary Conditions/Extremes and midpoints/means
• Understand the core PROCESS – ensure to know the basic underlying process to not miss things
• Hypothesis BEFORE Structuring – must have a driving hypothesis to develop a good structure
• Question client’s assumptions – will often have to be tested and adjusted as part of the case
• A hidden objective is an invitation to express own hypothesis and follow it
• The problem is most often NOT what the client thinks
• If something is mentioned but not explained, it is an invitation to ask
• Only ask ONE question at a time – they’ll always answer only one that’s easiest or the last one
• Get as specific about the objective as you can - e.g. there’s difference between improving sales or profits
• Clarify if you don’t understand the case - even if it sounds silly, it is better no not follow wrong alleys
• Use open questions that encompass a large scope of data, otherwise you get a constrained response
• Trick the interviewer to give you more info by testing with “correct me if I’m wrong”, even if right
• Each probing question must have a clear rationale; avoid irrelevant Q’s
• Avoid data scouting when probing – it isn’t relevant before you have a structure
• Interact with the interviewer continuously – Ask shorter Q’s or “How does that sound?” to see reaction
• Explain the overall approach before structuring - help the interviewer understand what you’ll do & why
• Write the core objective concisely in large print on top of the page as reminder
• Use “Tell me more” inquiry or open questions when given partial info and feel there is more to it
• Understand your client and be mindful of them
How is their org structured (hierarchy), their culture (behaviours & attitude), plans + strategy + changes?
• Understand your client’s stakeholders & climate
Who your client must involve and satisfy, e.g. their boss, investor etc.; and in what political climate?
• NEVER expect the interviewer to validate your hypothesis – do not ask if it is right; use the data

LOMS: Case 7
STRUCTURING
• Structuring elements (ordered chronologically):
o Observations: What is happening now, why, and what are the future prospects?
o Core Question: What is the root problem and what describes it?
o Key Drivers: An exhaustive list of all independent drivers, categorised per topic.
o Hypothesis: The most likely root cause & solution.
o Top-Level Approach: What can be done (solutions) and in what sequence w.r.t. each driver?
• 4 Levels: should be aimed directly at solving the core Q and not generic exploration
o L1: Core issue, expressed as a figure or a specific issue
o L2: Potential Solutions, specific major ideas to investigate
o L3: Key Drivers, representing relevant building blocks of the potential solutions
o L4: Hypotheses, representing bespoke insights, most likely causes, relevant challenges
• Consider 6 pairs of dimensions:
o Internal vs External
o Existing vs Potential
o Risks vs Benefits The Case Brief will cover some of these; use
o Threats vs Opportunities 5W2H to explore the remaining dimensions
o Impact vs Probability
o Boundaries vs Averages
o Quant vs Qual
• Try various Issue Trees for all case questions: Start with what’s easier and more obvious
o Custom: start with it
o Algebraic: if unable to come up with own one, but mathematical relations are involved
o Conceptual: the last resort is to use standard frameworks, which must be tailored thoroughly
• Informing the structure: review action/factor sequences to inform the structure before deriving it!
o Process: centred around “what” & “how”; also useful for deriving a single “Yes/No” answer
o Root-Cause Analysis: similar to Process, but “why” - centred around the issue sources
• Start from the most relevant – build the structure for every question from its core, respond do the issue
• Name the categories with representative titles – so it is clear what they contain without elaboration
• Use the case terminology - actual words/terms from the brief/related industry ensure a specific structure
• Go straight to the point in all Q – don’t drown in generic considerations, go straight to specific solutions
• Revisit every point in the brief & probing answers after building the structure to ensure completeness
• Answer the core question DIRECTLY - E.g. DO NOT answer “What happened” if asked “What to do”
• Prioritize drivers in accordance with effects – priority drivers have the most effect on the other drivers
• Top-to-bottom thinking for everything - challenge case conditions & limitations, think above & beyond
• MECE:
o Question the data you have – e.g. if the product mix is sustainable, operations are correct, etc.
o Test your MECE: ask “if Cat X has no problem, where else can it be?” until exhausting the options
o Focus on ME part of MECE - “What happened?” and “Why?” – e.g. past vs present
o Identify parameters in which each issue will be unique, i.e. can’t have 2+ values per parameter
o The sum of all MECE categories must represent the whole population without exceptions
o Lowest MECE categories will typically be comparable to each other – use this as quality check
o Use both Inductive (parallel) and Deductive (series) logic to define various issue tree branches
• 2 types of approaches:
o Top-down: breaking the problem down into components using frameworks & logic; safe
o Bottom-up: categorising generated ideas into major factors; depends on the quality of ideas
• Relevant branches only - The purpose & outcome of each element link back to the original question
• Use comprehensive block titles - NOT single-word titles; each block answers a specific question
• Depth & Size:
o DO NOT forget standard baseline elements while striving for a creative framework
o MUST ADD a few creative elements when going for a standard framework as the baseline
o 3-4 major categories for any question, any structure level, for any cases however confusing
o Complete L1 & L2 in short time (up to 2 min) – may complete L3 & L4 while presenting
o Go to the very bottom - do not stop at a generic level, this complicates the investigation
o Relevance to the case increases with depth – L2 = top-level; L3 = semi-generic; L4 = very specific
o Complete each level before building the deeper one
o Refer back to core question - base deeper levels off hypotheses and not guessing/process
o DO NOT over-structure - only include what’s relevant; avoid extra “nice to haves”
• Presentation: connecting the dots
o Provide overall assumptions w.r.t. Core Biz Concepts at the start of structure presentation
o Start with WHY and then explain WHAT when presenting the structure
o Take time to think through & prepare, but deliver concisely
o Use your tone of voice to navigate the structure
o Present a clear reason for EVERY element of the structure – what you’re going to do with it
o Justify each category before presenting its contents
o Use L4 to explain L3 as a Pyramid - i.e. L4 represents the logical arguments for L3
o For Creativity Q’s, concentrate on clarifying the relationship between factors
o Present top-level categories first - show a complete approach before digging in
o Suggest & explain your priorities – proactively conclude presentation by suggesting next steps
• Prioritize using 2 parameters over 2 dimensions (High/Low) in a 4-box matrix
• Build sub-layers based on QUESTIONS – reasonable Qs for solving the case guide info scouting
• Structure = Data Investigation Plan
• The first question is ALWAYS aimed at structuring - although the wording & tone may be misleading
• Take good time initially for building a good structure (3 min) - 3-5 main buckets with 8 – 12 deep factors
• Use your written objective as the root of the tree – use it as Level 0 node to start with
• Build the SPECIFIC solution INTO generic structure
DO NOT outline generic elements to consider the details later; build BOTH at the SAME TIME.
• Test your structure as a Roadmap - Go through each driver and check if it gets you to the answer
• Don’t be afraid to be wrong - replace hesitation with stating the info needs
• A good structure may not represent the best solution; but it must offer a solution that works
• Ask the interviewer’s preferences to focus on
• Use your structure - It is not there just to be shown to the interviewer, but also to be USED
• Stick to your structure as long as it helps - You WILL be distracted, ensure to come back & keep consistent
• Update your structure continuously – extend with recovered data, restructure if necessary
• For BRAINSTORMING, always explain HOW to achieve/implement each idea when presenting a list
DATA SCOUTING & ANALYSIS
• Assess & evaluate ANY data received – graphical, tabulated, or verbal
• TAKE TIME to study the exhibits in silence – every word counts
• DO NOT evaluate everything in the exhibit, identify the most critical items
• Distinguish the data relevant to a particular Q from the data that is not
• Always relate the data & insights to the core question/key issue
• Use 5W2H & Dimensions analysis to retrieve strategic insight
• Always quantify the explicit & implicit observations – e.g. averages, boundaries, totals, comparisons
• COMPARE the key item with the rest when several items are involved
• Look for the ACTUAL VALUES and not just how the graphs “look like”
• State 3-4 most relevant, quantified observations & insights from the exhibits
• Insights drive further solution strategy & questions – Build the solution logic using data & observations
• Obvious top-level insights first, then specifics – begin with easy wins, likely built off case wording
• Come up with CREATIVE insights – Some hidden patterns & links are always hidden in data
• Retrieve (guess, hypothesise, cross-check) the root causes for the trends you observe
• Describe likely consequences/scenarios after performing calculations – e.g. comparing client vs. comp.
• Offer extras & next steps yourself – e.g. if quantified insights don’t cover the target, brainstorm for more
• Question “What do you think of the result” implies some analysis, e.g. compare existing vs. potential
• Briefly describe what you see first – to demonstrate how you understand the exhibits
• Always look for cross-category impacts, boundaries & trends – don’t stop at the isolated data points
• Balance QUANT & QUAL - Probe for QUAL to see big picture when QUANT is inconclusive & vice versa
• Always consider the wider, deeper, further impact – both the direct and consequential effects
• Make sense of the overall situation – seek to compare What is vs. What should have been
• Always consider ALL DATA together – the core structure, previous data and answers
• Voice interim observations - especially when a surprising/odd observation is made
• Read the charts & exhibits carefully - Up to 1 min to study, recognize values, main trends, outliers.
• Ask before proposing your views – e.g. costs breakdown, some process, customer segmentation, etc.
• Always segment the numbers - e.g. people ≠ households, total market ≠ market share, etc.
• Consider in all dimensions – when considering charts & tables, look within categories but also across
E.g. compare cost changes over the years; then evaluate Costs as % of Revenue for Year 1 & Last
• Ask questions throughout the solution and not only at the start – but have a clear reason for it
• Clarify if you don’t understand – even if you seem to know the term but have a vague understanding
• Ask big picture and detail questions simultaneously
• Ask Questions on-time - Ask the questions related to the category you currently work on
• Interviewers will use the subtle wording to state partial answers if you ask incomplete questions
• Listen to the answers - Don’t just proceed, but digest. What is the answer telling? Is it unusual?
If it feels surprising – try to understand why, and then dig deeper.
• Use hints to discover a wider picture – Incomplete info is often provided in response to questions
Notice if a larger/general issue/situation exists, and discover it with further targeted questions.
ANALYSIS (both maths and logical)
• Drive the next steps from insights & hypothesis - not from the arbitrary solution process/chronology
• Concentrate on KEY SUCCESS METRICS – identify, understand, and use them to develop analysis
• SOLVE, don’t just explore/investigate – avoid aimless search/guessing
• Build your Math from the Process - Understand the process in detail to represent it mathematically
• Test different calculation approaches – do the 1st step of each route (e.g. btm-up & top-down) to choose
• Always compare the alternatives & offer comparative insight if 2+ options exist for anything
• State the obvious – strive to be explanatory, voice all implicit insights even if obvious
• Quantify impacts - especially the differences between several comparable measures
• Never assume a conclusion – if you feel there’s a pattern, check with data/numbers first to confirm
• Make your decision factors explicit - Always state what exactly guides your analysis & decision-making
• Perform sanity check (use common sense) before voicing the answer
• Name positive stuff first when asked to present both positives & negatives
• Include at least one unique idea – this gets a big extra point
• Risks are potential showstoppers and not just challenges
• Dismiss projects where NPV > ROIC where NPV = cost & ROIC = return of cost in an investment
• Always consider business continuity as part of Customer Journey – i.e., include feedback & loyalty
• Focus on the most likely element first - Start with the branch affecting the hypothesis most
• Finish off each branch before moving on – either eliminate or conclude on it, but don’t “leave for later”
• Get quantitative ASAP - assume the QUANT data is there to ask for
• Interpret the numbers – Understand the implications of data to drive creative insight
• Take time to think before responding to ANY question, top-level structuring or detailed brainstorm
• Approach all questions in a structured way - up to 1 min to bucket creative items, i.e. beyond given facts
• Justify every question – do not guess
• Brainstorm based on description - structure & analyse interim questions using the situation as described
• Always seek to simplify - observe, use shortcuts & assumptions, simplify complex stuff
• Use Quick Wins - There’s often a catch related to info already available (given or found) to make it easier
• Identify ASAP what the problem IS NOT – explore wrong hypotheses and eliminate
• Complex cases are solved by assembling pieces of indirect/fragmented data into a new bespoke view
• Use simple approaches - use assumptions for data or the situation if no specific data is given
• Analysis = Running the Experiment: Issue Tree = experiment design, interpreting data = running it
• Use Hypothesis as a driver - use hypothesis to drive the next steps of digging in
• Look for the easiest solutions first - easy wins first; more complex stuff afterwards
• Name the key elements first - Start with the most important (branches etc.); DO NOT build it bottom-up
• Investigate 1 factor at a time - Start with most obvious, but remember it likely will not be the real issue
• Do not stick to one idea – ensure to listen to answers & hints you’re given, accept inconveniences
• Be prepared to re-frame - update structure half-way if needed; but do not force-fit the initial frame
• Framework to Creativity - Use structure to formulate Hypothesis, then creatively dig deeper to prove it
Do not proceed with the structure blindly once you found the root cause.
• Voice ALL OPERATIONS - inferences from data, what & how you’ll do next, results & answers
• Do not over-analyse - Avoid digging into too much detail forgetting the core question
• Keep the simplest approach - Avoid unnecessary smartness, it irritates people & hinders the process
• Hypothesis testing builds on Logic – i.e. identifying parameters/statements to test for True/False
• Understand numerical analysis beforehand - make overall observations where possible FIRST
• Mention the units - ensure consistency & understanding; mention out loud to help the interviewer follow
• Think quietly - Do NOT think out loud until you get a clear message to communicate (e.g. an answer)
• Avoid “thinking out loud” – offer minimalistic justification and proceed with further steps
• Watch the flow – always ensure the interviewer knows why you’re asking for data and your next steps
• Involve the interviewer - DO NOT zone out for long, only take time to develop approach but not to calc
• Never stop your discussion - Go to the bottom without prompt; only stop when interrupted by questions
• Keep the interviewer aware of what you do & why - offer clarifications, announce intentions
• Respond out loud - Clear distinction between thinking time & giving answer
• Sharp communication/presentation no matter how confident or not you are
• Behave with confidence – even in the difficult parts of the case! Keep it structured and data-driven
• Present the analysis in a sharp, structured way – this isn’t tale-telling, but a structured sequence
• Explain clearly – prioritise interviewer’s perception when presenting outcome or presenting maths
• Understand the process in detail – to model the calculation, discuss the process step by step
• Quant questions use Formula as the structure – derive the formula 1st, then ask for data
• BEFORE/AFTER calculations are in most cases the SAME
• Practice quick & clear MATHS:
o Think Conceptually first – i.e. the big picture of what is happening
o Derive the Formula and agree with the interviewer before evaluating
o Compute the Values one at a time
• Aim for SPEED – Don’t think too slow, explain too complex, waste time on unnecessary considerations.
• Keep ALL the details in mind at ALL TIMES - original and interim targets, key information bits
• Always use case data – ask if more is hidden, and if not – find a simple calculation with what you have
• Use data to justify next steps - Never guess; use available data to drive the case, justify actions out loud
• Use data to justify questions - Ask questions that come from data and not because “you have an idea”
• Always benchmark your analysis - either using competitor’s performance as an example or assume it
• Use just enough data – use ALL data & numbers you have available; but DON’T guess more than that
• Only round-off the numbers if allowed - Check/ask before doing the calcs to avoid wasting time
• Justify ALL insights or conclusions – never guess, always build your logic based on case data or yourself
• Offer SPECIFIC & PRACTICAL insights – avoid being generic; insights must be unique for the given case
• ACTIONABLE insights - must depend on the information retrieved to be relevant
• Suggest next steps proactively - offer the way forward before asking what’s next
• When not sure what the insight is, offer further info needs to enable valuable insight
• If asked a Q that you’ve already covered in your analysis, it means it was insufficient – ensure to extend
• Acknowledge & announce a mistake if made - e.g. a good question at the wrong time, missing data
• Remember the structure - it iterates the same sequence of steps:
o Name your proposed hypotheses
o Explain the needs for each one
o Dig into each one in order of likelihood
o Summarize conclusions after finishing each branch
MATHS & SHORTCUTS
• Always look for simplest ways – there’s a simple trick in most cases, e.g. switching variables, cancelling
• If the calculation seems complex – you’re not seeing it!
• Calculate in steps to prevent errors
• DO NOT stick with the most obvious calculation method – see the figures & find the easiest/efficient

General Rules:
• Only round within 10%; round UP first, then DOWN; ALWAYS seek to round, if allowed
• Use labels (B, M, K) to replace 0’s; separate B M K with a space for readability (e.g., 123 456 789)
• Rule of 72: 72 / growth % = # years for value x2
• Decompose numbers into easy fractions (3/5, 1/5, ¼, ½, 5/3 etc.) or multiples of decimals (10, 100)
• Alternatively, decompose into fractions per base to simplify calcs (1/3 of base-3, 1/6 of base 6, etc.)
• Use the simplest factors possible; aim to break down using 0, 1, 2 (e.g., 17 = 10 + 10/2 + 2)
• X% of Y = Y% of X
• LEARN the 20x20 multiplication; start multiplication with smaller digits (e.g. 85*36 = [85 * 3] * [10 + 2])
• A number is divisible by 3 if the sum of its digits is divisible by 3; same works for 9
1 / 3 = 0.333 1 / 5 = 0.2 1 / 7 = 0.1428 1 / 9 = 0.1111 1 / 12 = 0.0833 1 / 16 = 0.0625
1 / 4 = 0.25 1 / 6 = 0.1667 1 / 8 = 0.125 1 / 11 = 0.0909 1 / 15 = 0.0667 1 / 18 = 0.0555

Addition:
• To the original 2-digit A add first the largest parts of B, then individual units
53 + 78 = 53 + 70 + 8
• In 3-digit numbers, first add the 100’s and 10’s together as 2-digit numbers, then add individual units
153 + 478 = (15 + 47)”0” + (3 + 8)
• In 4-digit numbers, add by halves: 1234 + 5678 = (12 + 56) + (34 + 78)
• When either number is close to 10x by up to 3, use multiplication by 10x and then add/subtract

Subtraction:
• Note: “|” shows the separation of number parts, i.e. 10x part is written before | & individual units after
• For subtraction, “|” means that it may be “-“ if A>B, or “10-“ if A<B
• From the original 2-digit A subtract first the largest parts of B, then individual units
78 - 53 = 78 - 50 - 3
• In 3-digit numbers, first subtract 100’s & 10’s together as 2-digit numbers, then individual units
478 - 153 = (47 - 15)”0” | (8 - 3)
• In 4-digit numbers, subtract by halves: 5678 - 1234 = (56 - 12) | (78 - 34)

Multiplication:
• Between 10 & 20: add A and individual unit of B | then multiply the individual units of A & B

Division: when dividing a fraction, multiply the dividend it by 10x and add 0.0 to answer accordingly
e.g. 17 / 243 = “1700 / 243” = 0.0xxx; use long division in column
SYNTHESIS
• Save the key points for quick summary – record on the title sheet as you go along to read at the end
• Only use case data - Be careful with own judgements
• Follow a robust sequence lasting under 1 minute:
o Recommendation: clear, action-oriented referring to the original question & goals
o Justification: 2 - 5 facts from the case, supported with relevant considerations and assumptions
o Match each consideration or issue with a related part of the solution, 1-by-1
o Risks & Constraints with impact & probability: 2 – 3 items impacting the recommendation
o Next steps: key further action to implement the recommendation and mitigate risks
• Proactively offer insights - Do not stay silent & wait; offer immediate insights & next steps, update hyp.
• Interim Conclusions include Next Steps - Voice next steps after synth. between tasks to proceed naturally
• Keep your neutrality - avoid voicing personal opinions unless asked (e.g. if something’s good or not)
If the question specifically asks for such an evaluation, it must be supported with facts.
• Ensure to be factually correct - being too generic leads to stating what seems right but is factually wrong
• Conclusions motivate further discussion – don’t make a full stop; ask for needs, offer further meetings
• Recommendation = “What can be done?”
• Along with syntheses, explicitly refine your working hypothesis
• Always state the “so what” of conclusions - Both interim & final; explain the effects on hyp./solution
Support with a sensitivity outlook: what’s the magnitude (are #s large or small?), is it optimistic/conserv.?
• Provide clear, definitive, ACTIONABLE summaries; uncertain & conditional actions = risks & next steps
• Go straight to the key point - DON’T waste time on unnecessary info, introductions etc.
• Offer interim conclusions every 5-7 minutes - After big points like frame, elimination, calcs
• Interim synthesis = “So What?” + Sentiment
o Comment on the Feasibility & Practicality of the latest result
o Provide reasoning and refine hypothesis
o Offer suggested actions (continued or alternative) and your data needs
• Use simple visualisations - Draw simple visualisation for key trends or observations to help explaining
• Remember all findings - Ensure to abandon earlier thinking/conclusions if found it incorrect
• Hypotheses & conclusions supported by case data ONLY - Even if your personal experience relates
• Take time to draw a recommendation - Don’t jump into it, this is not any less important than other Q’s
• Base the conclusion off structure – e.g. when presenting what you’ve looked at.
• State the size of your recommendation - how many justifying elements/facts you have (2 or 5?)
• Your only expertise is problem solving – i.e. knowing who, what, & where to search
• Imagine explaining to a teenager – This is the best way to avoid annoying overcomplications
• Ensure crystal clear conclusion – spend time to prepare it by recalling the important outcomes
TACTICS
• Ensure concise & to the point presentation by taking time – ESPECIALLY when not sure/challenged!
• Be firm with your recommendations – drop “I think”, “perhaps”, “probably”, “I am not sure”, “I’ll try”
• If your recommendation is negative – don’t just kill it; propose a justified alternative solution & risks
• Manage your time, do not diverge too far into details & additional considerations
• Watch your tone and voice – DO NOT fade out, apply questioning pitch, or mumble unstructured
• Suppress your nervousness – demonstrate the ability to conduct with confidence under pressure
• Exhibit sincere enthusiasm and positive attitude – you aren’t ready if you can’t
• Take time to think before you speak – show you care about what you say
• Avoid 5-minute monologues: turn answers into a discussion, be concise & specific
• Avoid inappropriate silence – only stay silent when calculating or drawing trees
• Observe feedback, be coachable to adapt to both the direct and non-verbal, indirect reactions
• Turn clarifying questions into a conversation
• Be able to dive really deep but then summarize it clearly and concisely to the executive
• Be creative in brainstorming – raise interest by offering unusual ideas even if you won’t stick with them
• Keep the answers relevant – do not digress on far tangents even if it may add additional value
• Only use terminology you really understand – avoid embarrassing yourself by not knowing the terms
• Make sense of numerical results – check if it makes situational sense before voicing it
• Write down good ideas to not forget them, even if not sure of their relevance initially
• Make your notes visual – use charts, trees, arrows etc. for explanations
• Expect to be challenged: they will tell you’re wrong to see how you defend constructively
• Expect to be cut off and change direction – the interviewer will have seen the boring answers before
• Know what types of projects the regional office is involved in
• Cases must be crafted, not cracked – there is no secret answer to get all points – the process is key
• CI is a simulation that represents different parts of real consulting projects
• Double check the data – sanity check the results and clarify what the interviewer actually wants
• You can fail and still do well if the case is unrealistically hard
• Demonstrate important traits tested implicitly – sanity checking, dealing with emotional challenges
• Treat any case as a real problem needing a real solution to ensure you’re diligent and thoughtful
• Simplify maths – estimations and approximations are good enough
• Find the few key additional pieces of data – if you think they’re many, you’re likely not getting the hint
• Use hypothesis a lot: educated guess, validate with data, modify & update, ask for more
• Don’t assume you know things: use the data provided and avoid introducing your specific knowledge
• If you get stuck in the case: Recap where you were, review the data, ask for help once if really stuck
• Process Excellence over Specific Answer - they will forgive a slightly off answer if your process is good
• Logical, Data-Driven Analysis - hypotheses & conclusions supported by linear, traceable logic
• Let the interviewer know if you heard the case before – it will be difficult to simulate genuine thought
• Throw in ideas for every aspect of the case – imagine you have nothing, suggest beyond the case scope
BEHAVIOUR
• Always overdeliver with reduced resource
• Consultant’s worth (in $) published internally reflects your performance & affects others’ willingness
• They must be certain you can be left alone and solve vaguely stated problem, making the firm look good
• 80/20 mindset: do the right thing and not “boil the ocean”, ask minimum questions to enable solution
• Time efficiency is more valuable than precision – no need for precise numbers if the direction is wrong
• Never make recommendations without a robust, data-driven justification - you must back it up
• Be able to pass the Airport test positively, adjust to people (i.e. do not be an arrogant asshole)
• It is not just about being right, but it has to be right in a client-friendly way (not lousy):
o Recommendations justified with facts & data
o Logical AND practical recommendations
o Work done to derive justifications must be explained
o Sequential, constructive, logical, linear thinking
o Visually explained recommendations
• Don’t let your guard down: EVERY question has a meaning
Informal questions often form a transition between interview parts and need to be structured
• Question everything – helps keeping your guard up; remember: every interaction has a goal
• Answering in an analytical way is unnatural – it requires significant discipline to practice constantly
• DO NOT DOUBT yourself – you must be sure in what you present, but expect to be corrected if wrong
• DO NOT HESITATE – once you devise an approach, follow what you came up with without further delay
• You must be PRESENT – sharp and clear, confident and inquisitive
• Look INTO THE CAMERA when talking
• Clear your speech – “Ehm”/”Uhm”, waste words, general mumbling
• Aim for SPEED – attempt to be as quick as you can on every step of the process
• Be humble and know your weaknesses – don’t act smart, this causes dislike
• Make people pleased to have you talking to them - hear what they say, show empathy beyond words
• Ensure clear & sharp wording - know what you want to say, deliver it with structure, and stop there
• Avoid expressing personal opinions or struggles – e.g. never say you “can’t come up with more”

SCORING
• You get scored from 0 to 3 across 3 elements – QUANT, QUAL, PERSONAL. MUST hit 222, 321, or 331
• Scoring 3 is Distinctive, i.e. you must offer 120% - something that others don’t normally do:
o Exceptional calculations (complex calcs done precisely in very short time without help)
o Exceptional motivation and personal performance (PEI)
o Exceptional inquisitive ability (asking for more than the others, really curious in an effective way)
Working with Cases
• Open - various approaches exist:
1. Stall: win time by comments, thinking out loud
2. Verify facts: ask clarifying questions, specify terminology, or even ask about the industry
3. Re-phrase the question: part of active listening, ensures you got the essential idea
4. Structure the case: prepare it for sequenced analysis):
▪ Identify the Problem to be solved (try to match with known problem categories)
▪ Identify or Derive an appropriate Framework (to ensure you gather the right data)
▪ Describe the Key Components of your framework (to ensure you understand it)
▪ Build the framework to work with it (i.e. draw it on paper)

• Analyse = break down the problem into its components:

1. Ask for info: to help you understand where to start
2. Be strategic: do not ask obvious Q’s to force the interviewer help you – they’ll
purposefully divert you into wrong direction
3. State hypothesis: you must have an idea for what the solution might be at the start,
disregarding of whether it will turn right or wrong – it helps your process
4. Branch by branch: pick just one branch of the framework to analyse at a time, work one by one
5. Identify Key Issues: prioritise what needs attention within the branch you’ve working on
6. Ask Standard Q’s: they may be obvious but you must show you know the basics; no open Q’s
7. Dig Deeper: when a branch seems to be the core of the issue, dig as deep as you can
8. Refine: update your working hypothesis as you uncover more information

• Close produce a recommendation:

1. Provide insight: identify what is the key important discovery of your analysis
2. Conclude: communicate your Big Picture point of view that results
3. Justify: support your conclusion with data & logical reasoning

Frameworks:
• Standardised approaches to solving a case
• Range from simpler ones to more complex
• Sometimes a confusing case may require compound framework, i.e. that involving elements of several
• However, often what looks like a compound framework is just a difficult case falling within a particular
framework, which will become apparent as more information is obtained – provided right questions
 CASE TYPES + FRAMEWORKS
GENERIC/PARTIAL TASKS
These types are seldom presented on their own, but will constitute a part of most cases on the interview.

MARKET SIZING
• Typically integrated into Business Strategy questions – e.g. product intro, market entry
• Remember to consider both size and growth
• Straight-forward, 1 level, 5 actions, 10 minutes
• Solved from a combination of either: supply/demand + top-down/bottom-up

These can be asked on their own or embedded as sub-part of a broader question. Generally, there’s no scope
to ask questions back when dealing with this type of questions, except for the clarifying ones. Steps:
1. Lay out the procedure steps
2. Fill in the known numbers or assumptions
a. Organised logic above correctness
b. Group assumptions into one number where possible
3. Perform calculations of unknowns
a. Use estimations, round-offs & tricks where possible
b. Write all numbers down

• Population-based sub-type
It is useful for this type of questions to know the basic statistics about the region you interview for
(population sizes and composition, life expectancy, number of households etc.) When drawing assumptions,
ensure they have logic behind and try to group your assumptions (e.g. similar populations) whenever
possible. Sometimes a question will relate to the entire world. In this case, use extrapolation – get your
answer for 1 country, and then extrapolate to the world.

• Household sub-type
These relate to something used per household – e.g. movie downloads, garden equipment, etc.

• Preposterous sub-type
The key idea of these questions is to see how you handle the uncertainty and absurd. Ensure to apply the
same logical thinking, and use the opportunity to enjoy it and make fun by introducing some humour.

BUSINESS CASE QUESTIONS

• Number Cases are centred around performing challenging mental maths.
• They may be disguised as strategy cases or chart cases, but ultimately are all about calculations.
• They sound simple, but are not and require extreme attention to detail when listening to avoid
producing erroneous answers.
• These are often enveloped into some scenario related to a business, but eventually they too require
performing mental maths – often in an iterative, cascaded manner (i.e. more than one calculation).
FACTOR QUESTIONS (STRUCTURING)
This type of questions asks about how some factor/key issues influence something. These are typically short
(10-15 mins to solve), broad, and conversational; and not likely to involve many numbers. It is very likely that coming
up with an answer to this type will require the candidate to ask clarifying questions. Steps:
1. Think through the problem overall:
a. In broad terms and not in detail
b. Ask clarifying questions – you may be challenged!
c. Make a few assumptions upfront – you will be challenged!
2. Write down the prioritised structure of the case:
a. Identify the key metric that measures success
b. Go beyond the expected answer, be truly creative
3. Make your recommendation:
a. Mention risks
b. Lay out next steps
Typical factors to consider:
• Local costs & taxes • Local political climate
• Available infrastructure • New technology & operations
• Workforce availability & type • Ultimately, ROI key drivers
• Product positioning (including target market, int & ext competition, etc.)

BUSINESS VALUATION
• Enterprise Value reflects company value; includes market capitalisation (profit), short- & long-term debt
• Based on 3 factors, which differ per business type:
Online Infrastructure Local
Parameter
Startup (Port) Manufacture
ROI 3 yrs 50 yrs 10 yrs
Profit Low High Medium
Risk High Low Medium
• Profit calculation: easiest method is to base on Marginal Income = that above Costs = Costs * PM
• Blue chip: stock in a corporation with a national reputation for quality and profitability in any times
• Use EBITDA to compare company values
EBITDA profits offer a comparable baseline since taxes & interests differ across industries
• EBITDA measures the firm’s overall financial performance, an alternative measure to net income
EBITDA = Net Income + Interest + Taxes + Depreciation + Amortisation
• ROA to compare firm’s performance to similar competitors or to earlier self; takes debt into account
• ROE measures profitability w.r.t. stockholder equity; evaluated against accepted normal in its industry
• NPV = value * (1 + %)years
• Amortization reflects the reduction of a loan or intangible asset with time
• Depreciation distributes the cost of a tangible/physical asset over its useful or expected life
Ties the cost of using the asset to the benefit gained over its useful life
 Core Business Concepts (Peter K.)

COMMODITISED MARKETS:
• Associated with similar value propositions (products/services) of the different players
• Similarity effects on the economics:
 Abundant availability
 High price sensitivity of consumers
 Low price flexibility
 Low Profit Margins
 Volume-driven business
 Likely consolidated competitive landscape with many players
• As the result, Key Success Factors:
o economies of scale
o developed distribution network
o high brand awareness
• Example industries:
o Gas stations o Pillows & Bedding o Peer-to-Peer landing
o Rental cars o Video streaming o Photography services

DIFFERENTIATED MARKETS:
• Associated with highly differing value propositions of the different players (opposite to Commodities)
• Multiple unique differentiating product characteristics imply a complexity of choice, and thus:
 Scarce availability
 Low price sensitivity, frequently involving premiums
 Moderate to high Profit Margins
 Likely fragmented competitive landscape with many players
• Key Success Factor: Product/Service Differentiation (involves a vast variety of parameters)
• Example industries:
o Bespoke consumer goods o Education o Legal services
o Real estate o Specific health services o Entertainment
NEW MARKETS:
• One that has emerged recently (several years), as opposed to distinguishingly older Mature Markets
• Novelty effects on the economics:
 High Growth Rate (## %) & Potential initially
 Attractive entry i.e. low barriers
 Likely many new entrants → Competitive landscape is highly dynamic & unstable
 Low or negative profitability during growth, below-optimum operations
 Growth deceleration upon market saturation
• Typical strategies:
o Heavy marketing investments → to grow sales rapidly
o Heavy operations investments → to cope with the growth
o Likely niche markets → differentiation significantly impacts future success
• Example industries:
o Electric Vehicles & Related o Online Education o Peer-to-Peer Lending
o Autonomous Transportation o Augmented Reality o Telehealth

MATURE MARKETS:
• Associated with products/services that have been around for a long time
• Maturity effects on the economics:
 Low Growth Rate (# %) aligned with the GDP (2-3%)
 Saturated markets
 Limited growth potential
 Stable competitive landscape
 Typically, low Profitability
• Growth strategies:
o Invading competitor’s Market Share (Red Ocean)
o Disruption with new Value Proposition (Blue Ocean)
• Example industries:
o Consumer Goods o Communication o Publishing
o Banking o Travel services & products o Luxury goods
HIGH-END MARKETS:
• Associated with products/services that come at high quality & price
• Quality effects on the economics:
 High-income customers
 Small market size
 Low price sensitivity
 High profitability & Profit Margins
 Brand positioning & loyalty affects price premiums
 Fragmented competitive landscape with few highly differentiated players
• Strategies:
o High quality of the offering → considerable costs involved
o Strong brand positioning → significant marketing investments
o Price increases do not impact demand (opposite to low-end markets)
• Example industries:
o Yachts & Helicopters o 1st Class airline seats o Luxury Sports
o Premium Foods o Luxury Dining o Luxury Travel

LOW-END MARKETS:
• Associated with products/services that come at low quality & price
• Quality effects on the economics:
 Aimed at mass market (much larger than the corresponding high-end market)
 High price sensitivity & pressure
 Low Profit Margins (# %)
 Volume-driven profit
 Inorganic growth (through M&A)
 Highly consolidated competitive landscape
• Key Success Metrics:
o Developed and optimised distribution o Economies of scale
• Example industries:
o Generic medications o Economy airline seats o Outsourced payroll services
o Cheap Electronic Equipment o Pre-cooked food o Discounted goods
CONSOLIDATED COMPETITIVE LANDSCAPE:
• Associated with a few major players capturing 50+% of the total market
• Characteristics of a consolidated landscape:
o Ultimate consolidation = Monopoly, i.e. a single player owning 100% MS
o Normal consolidation: at least 50% MS owned by a single player or shared among 2 players
o If the existing players own <25% MS each, the market is segmented
o Consolidation often occurs within commoditised markets
• Economic effects:
 Developed distribution network
 Economies of scale
 Low industry growth
 Low margins
 High Marketing budgets (to win MS)
 High brand recognition
 High R&D budgets (aimed at disruption)
 Cost structure advantageous for price flexibility
 Strong position of the key players (i.e. difficult to compete with them)

FRAGMENTED COMPETITIVE LANDSCAPE:

• Associated with the absence of any dominant players
• Characteristics of a fragmented landscape:
o Likely many small & medium competitors, none of whom have a strong market power
o MS for any competitor is likely <10% although in some cases may reach 25% for a single player
o Often driven by a particular factor that the differentiation is built upon
e.g. location, particular quality of the product or service, particular equipment or infrastructure
• Economic effects:
 High MS growth potential for any player
 Less challenging to enter than consolidated market
 Good opportunities for inorganic entry through M&A
Key Competitive Advantages
• Companies compete based on 4P:
o Value proposition (Product or service)
o Pricing
o Distribution (Positioning)
o Marketing (Promotion)
• The advantages are only effective for a limited time since competitors respond by catching-up
HIGH VARIABLE COST BUSINESS:
• Implies short-term horizon since all costs (Fixed & Variable) vary in the long run
• Fixed costs fluctuate in the long run, typically in the long run → DO NOT confuse VC with fluctuating FC
• VC = function of the production volume → associated with a specific product item (e.g. raw materials)
• Typically associated with businesses based on:
o High-volume manufacturing (e.g. consumer products)
o Re-selling products (e.g. trading businesses)
o Time-based salaries (e.g. professional services)
• Typical characteristics of High VC Businesses:
o Labour-intensive processes → operational efficiency has strong impacts
o Large utilisation of raw materials → high dependency on the commoditised markets
o Inelastic economies of scale → Low operating leverage
o Success strategy to lower VC: improve operational excellence & efficiency

HIGH FIXED COST BUSINESS:

• FC Typically include:
o Occupancy costs (e.g. rent)
o Equipment-related costs (e.g. maintenance)
o Marketing, particularly for high-end markets
o R&D, particularly for high-tech markets
• Typically associated with businesses based on:
o Operating the equipment (e.g. telecom service companies)
o Operating the assets (e.g. transport and real estate rentals)
o High-End B2C & B2B services (e.g. consulting)
o Intellectual property utilisation (e.g. software development, entertainment industry)
• Typical characteristics of High FC Businesses:
o Relates to Capex-heavy businesses → high maintenance costs and high depreciation
o Typically associated with high initial investments → high risks, long ROI
o Effective economies of scale → high operating leverage
o Success strategy to lower FC: utilise the economies of scale
 FULL CASE QUESTIONS
PROFITABILITY
• Typically presented as Short-Term Problems, e.g. what to do about profits, revenues, costs.
• Will always include Profit elements
• Typically fall into one of the 4 categories (with framework advice):
o Decline in profitability: 2 levels, covering beyond revenues & costs, aim to highlight problem
o Revenue- or Cost-focused profitability:
Often worded in confusing ways, e.g. “want to know if integration idea is good” - focus on
quantifying solution benefits that translate into +sales or -costs. Can be masked as non-business
questions (e.g. social policy) – then, focus on quantifiable benefits that are not financial.
o Profitability scenario: typically presented as weighing scenarios between 2 alternatives.
• Note that, since it involves Revenue & Cost, Profitability also involves Pricing strategy and Volume or
Quantity. These subsequently refer to 3C and the market forces.
• Do not forget Time Value of Money. NPV is a separate sub-category; most often calcs are omitted

PROFITABILITY Framework
• Decline in prices, decline in volume, increase in costs
• Profit = Revenue – Cost = (Price * Volume) – Cost (Fixed + [Variable * Volume]) / Unit
• Each element constitutes a separate branch to analyse
• Segment each branch into elements, and isolate each segment mathematically – i.e. solve separately
• Offering your segmentation, also check if this is correct or if the client has their own view in mind
• Always drill down to singular element level – e.g. cost per unit, value per segment, etc.
• To perform segmentation, use Value chain – i.e. what the value stream consists of
Components:
o Big Picture (overall streams & changes)
o Pricing & Strategy
o Quantity & Volume
o Ways to increase Sales/decrease Costs
o Costs – Overall & Per Unit

PROFITABILITY Approach:
• How to increase profitability = “+ profits” AND/OR “- costs”
• Profits = Revenues - Costs (start with considerations to external factors, Economy & Market)
• Most of the factors will be case-specific, not expected to know but will be provided only if asked!
• Never conclude on a single element; look at interdependencies to derive holistic recommendations
• Distinguish short-term & long-term strategies – they help you to structure your recommendation
• Distinguish revenue-based & cost-based strategies, they both may constitute a recommendation
o Revenues:
▪ Major streams and their % share of the total
▪ Is there anything unusual about the balance of revenues?
▪ Are there any noticeable recent changes? – this could hint at the right direction
o Costs:
▪ Are there any major recent cost shifts?
▪ Are there outliers, does anything seem unusual/out of line?
▪ How do the costs benchmark against competitors?
PRICING
• The key question is about how to set a price and what should it be
• Typical approaches: value-based, cost-based, market-based, competitor-based, target return.

PRICING Framework
• Product Information & Differentiation
• Competitor Analysis
• Pricing Strategy & Effects

PRICING Approach:
• How should a company price its product?
• Closely related to company’s objective, the common pricing strategies are:
o Competitive analysis: pricing based on the detailed analysis of competition; fair but blind
o Cost-Based Pricing: based on the sum of all costs + profit; risky but beneficial
o Value-Based Pricing: based on what is the customer willing to pay; safe, may be a stopper
o Partition pricing: compound approach - particularly difficult
• Pricing strategy often depends on customer nature, e.g. a rich OEM vs. a poorer public university.

Process:
1. Understand the company and its objective, examples including:
o Profit increase
o Market penetration (share increase)
o Facilitation of ancillary profits
2. Investigate the product and its competition
3. Select/Define the pricing strategy

COSTS Breakdown:
• DO NOT use Fixed/Variable breakdown – it is odd and the interviewers perceive it a senseless approach
• Instead, perform an IN-DEPTH BREAKDOWN – i.e. ask yourself the same exact questions they ask
• The best way to do that is to follow the VALUE CHAIN
• To do that, ask WHAT the client does and HOW
BUSINESS SITUATION & TRANSFORMATION
NEW BUSINESS
• Launching new product or entering new market
• Need to take a comprehensive look at the market
• Likely to involve 3C+P as a minimum

GROWTH
• Driven by the desire to grow revenues
• Use organic growth matrix (Existing/New + Customers/Products), trends, inorganic levers (M&A, JV)
• Note: Growth ≠ Profitability and requires a different framework (Costs are not involved in Growth)

GROWTH Approaches:
• How to increase sales figures to achieve a particular objective?
• Remember that sales growth ≠ profit increase!
o These are separate, yet interdependent factors
o Sales growth implies bigger market share through volume, revenue, or both
o It is less dependent on costs than the other case types
• Typical approaches to volume increase:
o Increase distribution channels
o Diversify products (but avoid cannibalisation)
o Invest in highest-potential segments
o Invest in a marketing campaign
o Acquire a competitor
o Adjust the prices (lower = + volume; higher = - demand)
o Adjust seasonal balance
o Find a niche in a developing industry (high entry barriers!)
• Process Steps: consider Company first, and then Industry

COST CUTTING
• Driven by the desire to reduce a particular cost item
• Core considerations are Teams & Processes
• Solve by breaking down into timeline:
o WHERE FROM: understand the current team structure and effort allocation to processes
o HOW (Improvement Levers): automation, waste & duplication reduction, just-in-time, etc. LEAN
o WHERE TO: sequencing of the process improvement & communication for implementation
OPERATIONAL ISSUES
• Involves an issue with some part of operations (queues, processing etc.)
• Use process structuring

CAPACITY (Supply / Demand)

• Capacity changes, build/close a factory, shift capacity to respond
• DO NOT CONFUSE CAPACITY with CAPABILITY:
o Capacity = the ability (supply) to meet the needs (demand)
o Capability = the internal ability itself (supply)
o Demand = an external factor created by the customer/user
• Capacity → SDC = How well Supply meets Demand and at what Cost?

BUSINESS DECISION Framework

• Enter new market, introduce new product, respond to competition/demand, grow
• 3C1P = Customer, Company, Competition, Product
Components:
o Market attractiveness o Financials & profitability
o Competitive landscape o Strategic alternatives
o Company capabilities & attractiveness o Risks & mitigations
o Customer segments & their needs

NEW PRODUCT Framework

• Product: content & differentiation, innovation & patents, positioning & fit, bundling & overlaps
• Market: target segment, size, trends & rates, profit margins
• Company: capabilities – design expertise, production facilities, distribution channels
• Strategy: customer interest – existing & new; competitor scope, shares & response
• Feasibility: funding availability, supplier availability, expected profitability, expected costs

SOCIAL & NPO

• Typically involves a government or an NPO and does not chase profits
• Significant variability in the relevant details, with only a few typical:
o budget vs. revenue o donations
o public opinion o alignment with a social mission
• Consider it as similar to other Business Cases, but with relevant adjustments – e.g.:
o There is no profit
o Sometimes funding has to be considered, but it is different from profit
• Solve by breaking down into manageable components
MARKET STUDY
Typically presented as
• Market Entry: really trying to answer whether it is profitable to do
• Revenue Growth: brainstorm how to gain more income from profitability, market factors, or costs pov.
• Market Share: deals with declining market share, so look for the reasons and ways to win back

MARKET ENTRY Framework:

• New market: size, recent changes, growth, life cycle, customers & segmentation, drivers, future
• Competition: scope & shares, differentiation, likely response, advantages & weaknesses
• Entry Strategy: risks, barriers, method (merger, acquisition, JV, NB); timing, testing, controlling

MARKET ENTRY Approach:

• Use Porter’s 5 Forces
• Implies How, Why, What else, and as the result - Yes/No
• Purpose: find the best way of becoming a player
• Analysis sequence:
o Market first
o Company (capabilities & fit)
o Financials then
o Entry Strategy to conclude
• Consider the possible ways to enter the new market:
o New Product: through existing business; rarely possible, case-specific
o New Technology:
▪ It is rare to capture 10+% of market in the 1st year (more like 3-5)
▪ Use Rogers Adoption/Innovation Curve to build predictions

o New Sub-Business: how to start and grow organically

o Joint Venture: differences & commonalities of interest, contributions
o Outsourcing: selection criteria & approach
o Merger / Acquisition: selection criteria & approach
MERGERS & ACQUISITIONS
• Involves acquiring another company in a vertical (cust./supplier) or horizontal (competitor) move
• Essentials: Financials, Synergies, Cultural Fit
• Synergies = the analysis of “1 + 1 = ?”, which in most cases ≠ 2
• Focus: 80% on the target; 20% on the partner/acquirer
• Financial & Strategic purchases differ in needs
• End goal = increased profitability
• Also consider:
o Asking price and its sensibility
o Added value of the synergies
o Qualitative: risks, capabilities, culture

MERGERS & ACQUISITIONS Framework

• Evaluate whether a merger or an acquisition is a good idea or not
• 3C1P or Market, Target, Buyer, Synergies (+ & -)
Acquirer Types:
o Financial Acquirer: PE firms to own 100%. Purpose: quick return. Mean: cost/revenue fixes
o Financial Investor: Hedge Funds to own <50%. Purpose: share value effects.
o Corporate Acquirer: Corporations to own 100%. Purpose: to operate a new unit for some reason
Solved using Due Diligence approach:
o Market: size & growth, competition, dynamics, attractiveness
o Company: finances, forecasts, positioning, competitiveness, market share
o Post-Acquisition Strategy: concentrate around the amount of profit over time in the future
o Risks & Benefits: intangible assets, management composition & capabilities, restrictions & laws

MERGERS & ACQUISITIONS Approach:

• Sometimes constitute a separate question itself
• Will it increase shareholder value?
• Will the two cultures mesh well?
• Why would a company want to buy/merge with another one?
- Better market access - Pre-empt competitor acquisition
- Brand positioning/boosting - Inherit management talent
- Market share increase - Gain from synergy
- Shareholder value increase - Receive tax advantages
- Diversify holdings
• Due Diligence: an activity of researching the company and its industry
- Health state of target company
- The security of its markets, customers, suppliers
- Health state of the industry
- Company performance against competitors in the industry
- What are the margins: hi-vol, lo-mar, lo-vol/hi-mar
- Expected reaction of the competition
- Reasons to not proceed with acquisition
- Any technology-related risks
• Consider the strategy:
- Reasons & Drivers - Expectations (penetration, - Benefits & Advantages
- Risks & Pitfalls revenue) - Actions & Timeline
GENERIC FRAMEWORKS
5W2H: An approach for deriving a customised framework:
• Who:
o Internal (Company)
o External (Customer) • How:
• What: o Internal (Capabilities)
o Internal (Product) o Enablers o External (Environment)
X
o External (Market) o Constraints • How Much:
• Where: o Financial
o Geography o Present o Non-Financial
X
o State o Future • Why:
• When: o Quantitative
o Past (History) o Qualitative
o Future (Plans)

7S:
• Structure: organisation of the company
• Systems: daily activities and processes
• Style: style of leadership or management
• Staff: employees that are hired
• Skills: employee capabilities
• Strategy: plan to grow and outcompete competitors
• Shared Values: core beliefs, values, mission of the company

7P:
• Product: content & diff., innovation & patents, bundles & overlaps, market size & trends
• Price: cost-based/price-based, breakeven, buyer willingness, marketing needs & costs
• Promotion: marketing strategies & routes, competitor approaches
• Placement: distribution channels - positioning, type & performance; salesforce requirements
• Processes: non-manufacturing operations
• People: employees
• Production: manufacturing operations

5C:
• Customer: demographics, segmentation & changes, needs, sensitivity, distribution
• Competition: scope & shares, performance & growth, differentiation, advantages & weaknesses
• Company: competencies, values, history, performance, people, branding
• Collaborators: internal environment
• Climate: external environment

P5F:
• Existing Competition: competitor scope & shares, growth, advantages, weaknesses, costs, price
• New Entrant Threats: barriers to entry, economies of scale, cost advantages, protection
• Substitute Threats: presence of substitutes, scope & quality, cost of switching
• Supplier Bargain Power: supplier scope & differentiation, preferences & bargaining
• Buyer Bargain Power: key customers, needs & bargaining, switching costs, information availability
BCG 2x2:
Market Growth Rate vs. Relative Market Share

Inventory, Acquisition, Break-Even, ROE:

Ansoff Growth Matrix: Value Chain:

PRODUCTS
Existing New R&D
Inputs/Supply
Existing

Market Product
Production
MARKETS

Penetration Extension
Distribution
Marketing & Sales
Market
New

Diversification Service
Development

Brainstorming segmentation (some options): Competitive Response (depends on strength):

• Internal vs. External • Do nothing
• Financial vs. Non-Financial • Mitigate
• Short-term vs. Long-term • Align
• Supply vs. Demand • Replicate
• Stakeholders: Viewpoints vs. Effects • Collaborate
• Customer Journey vs. Value Chain
 CONSIDERATIONS
COMPANY
• Profit & Revenue Trends: company size and success, revenue streams
• Customer Segmentation: how the strategy is tailored
• Product Mix & Dynamics:offered products/services, its costs & profit margins
• Production Capabilities: facilities, capacity, expansion potential and the factors affecting it
• Brand: its strengths and market positioning
• Distribution Channels: the number of channels, its effectiveness, and ways to expansion
• What Success Means: WCS, the key factors measuring success against the objective
• Equity: type - private or public; future plans - hold, flip, break; reasons for their actions

MARKET
• Historical Data: size [sales in $/yr], growth rate [delta size], trends, overall industry state
• Industry Drivers: brand, price, product, size, econ, tech, politics, bargain power, distribution
• Customer Segmentation: existing audience, target audience, sizes & distributions, priorities
• Industry State & Changes : market dynamics affecting strategy:
o New players o Evolving technology
o Recent mergers o Relevant regulations
o Lifecycle stage: emerging, mature, declining
• Distribution Channels: existing & possible distribution channels for the industry
• Major Players: competitors & market share; fragmentation or domination
• Product:
o Available offers & competition o Patent existence, ownership & terms
o Strengths & weaknesses o Fit with the rest of product line
o Unique features & differentiation o Sales options (e.g. bundling, forcing)
• Entry & Exit Barriers
o Access to Capital: financial assets of some form, usually at some cost; e.g. cash, debt
o Raw Materials: basic materials required for the production
o Human Capital: unlisted economic value of a worker's experience & skills
o Relevant Regulations: government rules to control how things are done
o Customer Loyalty: consistent, measurable positive experience with a product
o Sticky Features: features to increase customer loyalty and make it difficult to leave
o Market Domination: measure of brand strength relative to competitive offerings
o Fixed Assets: property that is not easily converted into cash (land, buildings, equipt)
o Contract Conditions: Obligations agreed by all involved parties, corporate or private
o Taxation Conditions: Common or exemplary conditions agreed for a particular firm
o Leaving Conditions: Conditions that need to be satisfied if a firm ceased its contract
• Internet: how does internet affect the company and the processes in it

ECONOMY
• Consumer Confidence: the degree of consumer optimism for economy & own financials
• Disposable Income: total personal income minus personal current taxes
• Unemployment Rate: percent of the total labour force in a state that is jobless
• Fuels Prices: the current prices for the common fuels – carbohydrates, coal etc.
• Interest Rates: current interest rates for the funds available for borrowing
• Currency Exchange: the rate of exchange between different currencies
• Commodities: перепродаваемые товары: стандартность свойств, взаимозаменяемость,
хранимость, транспортируемость, дробимость партий; interchangeable, non-differentiated, free-sold
DETAILED
• Management Team:
o How experienced are the team members?
o What are their core competencies?
o How long they’ve worked together?
o How well do they collaborate?
o Is there an advisory board?

• Customers:
o Who are they?
o How are they best reached out to?
o How their retainment/loyalty is ensured?

• Finance:
o How is the project funded?
o What would be the best allocation of funds?
o Can debt be supported under various economic conditions?

• Competitive Response:
o How will the competition react to your actions that take their market share?
o What will you do if a competitor responds with new product and steals your market share?
o What is the competitor’s new product and how does it differ from ours?
o Has the competitor increased their existing channels or entered new ones?
o What has the competitor done differently and what has changes/effects did it produce?
o Are there other/secondary competitors involved picking up market shares?
o Have the consumer’s needs changed?
o How is the competitor promoting their product (marketing, packaging, ideology etc.)
o What is a more appropriate approach and why: wait-and-see or a proactive move?

• Turnaround Situations:
o Why is the company failing, what are the factors involved?
o Is competition facing similar issues?
o Type of the company: private or public? – this may affect turnaround strategy & objective
o Is the human capital composition optimal? – oftentimes the issues are caused by the culture
o What are the short-term & long-term steps/priorities to make a successful turnaround?
o Is the company supported by its interfaces – clients, suppliers, distributors?
BASIC TERMS
• Profit = Revenue - Cost
• Profitability = Profit Margin (PM) = Profit / Revenue
• Revenue = Volume x Price = (# of pieces sold) x (Price per piece)
o Customers
▪ Distribution channels ▪ New markets
▪ Marketing ▪ New products
o Purchase Frequency
o Spend
• Volume = # of consumers x (Avg Annual Sales per Consumer)
• COST = Overhead [FIXED + VAR] x [DIRECT + INDIRECT] (vector product, forms a matrix 2x2)
o FIXED = independent of the volume of goods produced or services delivered
Rent, Insurance, Loan repayments, Depreciation, Property taxes
o VARIABLE = related to the volume of goods or services
Materials, Labour, Commission, Credit Card Fees, Shipping, Packaging
o DIRECT = directly traced to a product or service i.e. directly involved with producing/delivering it
Labour, Materials, Supplies
o INDIRECT = activities associated with enabling & supporting goods production / service delivery
Rent, Utilities, Office Expenses
Cost Categories:
o Prime (physical supply) o Legal & Accounting
o Conversion (workforce) o Financing, Debt & Refinancing
o Insurance o Hedge Funds
o Taxes o Asset Sell-Off
o Permits & Licenses o Overhead (ongoing business operation expense)
• # of Consumers = (Total Relevant Population) x (Product Penetration)
• ROI = annual_profit / initial_investment
• Payback period = initial_investment / annual_profit
• Depreciation = initial investment / years operated, represents the effect of investment over the lifetime
• EBITDA = Earnings Before Interest Tax Depreciation and Amortisation
compare companies across industries: profit with interest, tax, depreciation & amortization added back
• NPV = Net Present Value
adjust future cashflows so different investments can easily be compared
• TVM: Time Value of Money = PV x (1 + %)^t
loss of monetary value with time
• ROE: Return on equity = Profits / Shareholder Equity
a measure of financial performance; used for standalone projects while ROE is used for companies
• ROA: Return on assets = Profits / Total Assets
an alternative measure to ROE; indicates how profitable a company is compared to its total assets
• Average Price = Σcategories (price x volume)
Represents total revenue breakdown
• Inventory Turnover = Sales / Inventory
• Gross Margin = (Revenues – COGS) / Revenues
• Contribution Margin (CM) = Sales – Variable_Costs
• CM Rate = CM / Sales
• Break Even = Fix_Costs / CM
• Paybacl Period = Fixed_Costs / CM
• ROI = (Profits – Investment) / Investment
• NPV = Current_Figure / (1 + i)n where n = # of periods, i = rate
• Customer Acquisition Cost = Marketing Expenses / New Acquired Customers (yearly)
• New Equipment Savings = (New profit – Old profit) where Profit = (Capacity * Price) – (Efficiency * Cost)
OR Profit = (Time * Labour) + (Material_Cost * Quantity) + Depreciation
• Consumer/Retail Abbreviations:
o SKU = Stock Keeping Units, represent unique items sold in a store
o CRM = Customer Relationship Management, data-driven strategy & tools to increase loyalty
o CPG = Consumer Packaged Goods
o Store Footptint = size of the selling area in a store
o Loss Leader = merchandise sold at a loss to stimulate the sales of other profitable items
o Mark-Up = % added to the cost of product to get selling price (reflects PM)
o Carrier = a company authorised by regulatory agencies to operate a telecom service
• Oil & Gas Terminology:
o Upstream = Exploration & Production, includes finding, drilling, producing crude oil & LNG
o Midstream = Processing, incl. storage, transportation, marketing
o Downstream = making products out of crude oil, includes refineries, petrochemicals, distributors
o OPEC = Organization of Petroleum Exporting Countries, 14 nations that coordinate policies
• Transportation terminology:
o Shortage of Truckers = an industry-wide issue related to insufficient talent to cater for demand
o PRASM = PAX Revenue per Average Seat-Mile, revenue generated per available seat miles
o FOB = Free On-Board, the point at which the sale of freight cargo is complete & ownership shifts
o LTL = Less Than Load, small weight that doesn’t fill the truck and so more expensive to ship
o FTL = Full Truck Load, large shipment filling the truck and thus cheaper to ship
• Manufacturing & Agriculture terms:
o D2C = Direct to Customer, a BM that excludes a distributor
o Bottleneck = the resource working at full capacity and thus unable to increase output if needed
o Bushel = unit of dry measure (1 ft3) of grain & other edibles, equivalent to 8 gallons of liquid
• Financial Industry terms:
o AUM = Assets Under Management, market value of all financial assets that a firm manages
o Private Equity = investors & funds that invest directly into private companies or public → private
o Unicorn = a start-up valued at $1bn+
o Freemium = a pricing model of giving the full product to users in return to non-financial benefits
(e.g. consent to collecting their usage data)
o SAAS = Software As A Service, a software distribution model where 3rd parties act as middle-men
• Healthcare Terms:
o Orphan Drug = a drug that wasn’t commercialised due to small curable population size
o FDA = Food & Drug Administration, fed org for protecting & promoting life products safety
o Generic Drug = a drug containing the same ingredient as Brand-name drug, sold at diff. brand
o Biotech = use live organisms (bacteria, enzymes) to manufacture medicines
o Pharma = produce drugs by chemical synthesis
• Valuation – instruments to use:
o Project Valuation: NPV, Break-Even period
o Company Valuation: Discounted Cash Flows, Terminal Value, Dividends, multiples based on
similar companies – price-earnings ratio, book-to-market, etc.
• Price elasticity: measure of the change in demand in relation to price change (%ΔD / %ΔP)
• Capacity Utilisation: proportion of potential economic output that is actually realised (%)
WAYS TO CUT COSTS
Labour:
1. Cross-train employees 5. Extend working hours
2. Cut overtime 6. Sell shares to employees to motivate
3. Change pension deductions 7. Remove inefficient employees
4. Raise employee contributions 8. Decrease board pay
Production:
1. Invest in new technology 5. Outsource parts of the work
2. Consolidate production space 6. Re-negotiate with suppliers
3. Introduce flexible production lines 7. Consolidate/merge suppliers
4. Reduce inventories 8. Import parts
Finance:
1. Make customers pay sooner 4. Minimise currency exchange
2. Refinance the debt 5. Redesign health insurance
3. Sell-off nonessential assets

Approach:
Consider revenues first to be able to make educated decisions on costs
• If sales are declining:
o Consider if your product is not obsolete in a mature market
o Check if there is no overall market declining trend
o Check if there are novel substitutions affecting your positioning
• Attack the declining revenues with marketing and distribution improvements
• Attack the rising expenses with solving operational & financial issues
• Product positioning strategy:
o Emerging: R&D, Competition, Pricing
o Growth: Competition, Marketing
o Mature: Costs, Manufacturing, Competition
o Decline: Niche, Competitor Play, Exit

Pricing Strategies:
• - Price too much → + Volume → Capacity Exceeded → ++ Costs, + Overtime work → - Profits
• Conditions for stable pricing:
o Similar growth rate for all competitors
o Prices are aligned with Costs
o Similar prices by all competitors
• Volume & Costs are easier to change than Prices across industry, unless regulated externally
• Price wars are detrimental for high-cost producers since market shares are relatively fixed for long
periods of time
 Crafting Cases (online)

6 Case Building Blocks

• Structuring the Case: used to derive, structure and prioritise the hypotheses
1. Brainstorming
o Using the issue tree to build a structured list of hypotheses
o NOT: throwing out a random list of ideas/hypotheses without structure/priority
2. Frameworks
o Decision-making plans as a list of questions to be answered to make a decision, and a
systematic way of making sense of these questions
o What is tested is the skill of creating such plans, and NOT repeating pre-made ones
3. Hypothesis Testing
o Serves to test the derived hypotheses, organised & prioritised by brainstorming or frame
o Must be rigorous, but also practical

• Analysing the Case: used to assess the hypotheses and evaluate its implications
4. Estimations
o Used to quantify values when there is none or insufficient information/data
o Based on certain logic and assumptions
o Aimed at testing the application of significant mental maths capabilities and reasoning
5. Quantitative Analysis
o Used to derive values and conclusions when the numerical data is available
o Deriving the correct number is the basic element; whet really is tested is how you do it and
what do you do with conclusions/numbers after you’ve derived them
6. Chart Interpretation
o Occur when you are given an analysis that has already been done for you and put into a
compact, information-dense chart
o The key challenge is to show how you understand the presented information, and use it to
derive conclusions and describe implications
o Tested abilities: comprehend data presentation, find a wide range of insights, communicate
conclusions and implications, develop appropriate next steps

Remember: the interviewers withhold the data (numerical, graphical or other) that you need until you ask
for it. They will not provide it automatically, so preparing your analysis should be used as a
mean to identify what other data is required, which can then be requested.
Case Solving Process
• A problem is typically presented in the form of a concise, single-sentence statement or question.
• Your task is to propose how to proceed: where to start, how to develop, what info to request etc.

0. Plan your solution:

The process is likely to form a loop. You need to understand how to map task components in that loop,
and where to start (which will be different depending on the case!)
1. Derive Framework:
Break down complex decisions into simple problems. Each one should have considerations, issues and
hypotheses listed against it.
2. Brainstorm for answers:
Use brainstorming to explore the solution space for each question in the framework and come up with
suitable hypotheses and assumptions presented as a MECE tree.
3. Test the Hypothesis:
For each hypothesis, ask how would you assess/test its validity. This will likely lead to requesting precise
data or making appropriate specific, non-abstract assumptions.
4. Analyse & Estimate:
Assess the hypotheses by evaluating the actual data or estimating numerical values based on your
assumptions so as to derive hypothesis-driven conclusions.
5. Interpret Charts:
To decide regarding your final recommendation, perform a sanity check by interpreting any charts
provided or that you derived yourself. This allows forming a top-level strategy view and likely fits after
the detailed analysis & number-crunching.

Remember:
Interviews start following a pre-planned scenario, but often diverge into improvised questions or data. This
is typically based on your answers and indicates that it is going well. Also, it is common that:
• Not all of the 6 building blocks are used in a case
• Some of the 6 building blocks are used more than once in a case (likely in a cascaded manner)
In extreme cases just one block is cascaded! These are the hardest, and are typical of last-round
interviews. For example:
o Market Sizing case = Estimation block
o Future developments = Brainstorming block
o Insights case = Chart Interpretation block
Estimation Block
Estimation a.k.a. Market Sizing. The goal is not to make a correct estimation (and you do not have the data
and time), but to show that you are able to think in a logical and structured way like consultants do.

5 steps of Estimation:
• Clarify Scope: ensure you know exactly what you are trying to estimate
• Structure the Problem: what maths and facts are you going to use and how; no numbers yet
• Choose assumptions: assign values to variables used in your maths
• Calculate: perform the actual numerical evaluation
• Check answer: compare to something else as a reference point for sensibility check

Clarify Scope:
Once provided the question, synthesize a concise, precise, measurable and simple expression reflecting the
core question of the case.

Structure the Problem:

Involves building the logical structure of the problem based on the key business concepts and identifying the
areas to be clarified later (either through assumptions or by asking for more data).
Remember that your assumptions do not have to be accurate! If you can’t figure a value and the data is
unavailable, just make it up – it would be provided in the real case. Same for the composition of the sub-
structures – assume it.
• Use top-down structures to ensure you are not missing anything
• For particularly tough tasks, draft several structures representing different approaches to decomposing
a problem. The best way forward may become more apparent when you compare a few approaches.
• Discuss the assumptions after the entire tree is drawn to demonstrate your logic before numbers.
• Explicitly pronounce the calculations you’re doing, i.e. not just the numbers but the operation too.

Approach to Assumptions:
• You must have some logic behind any assumption made, and you must voice it clearly
•
 ISSUE TREES
Fundamentals
• Issue Trees represent a MECE map of the problem, a “Divide and Conquer” plan to solve it
• Having a map allows you to anticipate what will be relevant and thus, prioritise considerations
• They need to be as detailed as the task requires. E.g. not very detailed for the Case Interview; very
detailed for real-life 5-WHYs analysis
• Building a MECE structure will involve a low number of branches at each stage. Most likely 2 (to ensure
mutual exclusiveness), may be more but you need to be sure about what they are when it is > 2.
• Issue trees consist of issues, i.e. broad categories of hypotheses but not specific ones. A problem might
have 1000 hypotheses fit, but have a very low number of issues (8, less likely 4, 16, or base-3 numbers)

Preparation:
• After you’ve captured the question and its details, and before you start building the structure – ensure
that you understand the key goal of your client – i.e. the key issue they’re facing and their key goal.
• This is retrieved using only a couple of 5W2H questions (choose wisely!), also voice your own variants.
• Use common approach as the basis for your structure, but tailor it to the task specifics – i.e. name your
branches with ref. to problem, despite the same branches could work elsewhere if named differently.
• Distinguish between the Problem Trees (WHY?) and Solution Trees (HOW?):
o Problem Trees are built to encompass all possible hypotheses so they can be prioritised
o Solution Trees map out possible solutions as the result of brainstorming
• Solution trees are usually more difficult than Problem trees since it is normally much easier to map what’s
causing the problem than how to solve it.
• Solution trees start MECE, same as Problem trees; but get creative and open-ended at the last branch
Therefore, use Solution Trees for Creativity question – i.e. open ended “what are the possible ways to …”
Also, use Solution Trees to brainstorm the individual top-ranking problems found from a Problem Tree.
Start with a hypothesis; provide a “so what” conclusion after each step linking back to the original question.

McK uses a standardised CI sequence:

• Situation intro (for you to ask Qs and make early hypotheses)
• Framework Q
• Quantitative Q
• Creativity Q
• Recommendation (in Elevator Pitch format)
Known framework types (learn to distinguish and apply!):
• 3C/5C, 4P/7P, 5W2H (Who, What, Where, When, Why, How, How Much)
• P5F = Threat of Substitute & New Entrants, Bargaining Power of Byers & Suppliers, Competitor Rivalry
• SWOT = Strengths, Weaknesses, Opportunities, Threats
• PESTLE = Political, Economic, Social, Technological, Legal, Environmental
• BCG or McKinsey Portfolio analysis Matrix
• Trust Equation: Credibility, Reliability, Intimacy, Orientation (outward or inward)
• Profitability = market size & growth, profitability, price sensitivity
• Competitive advantage = differentiation, efficiency, barriers to entry
• Customer base = incoming traffic (reaching out), loyalty, cross-selling
• Business attractiveness = operational demands & activities (e.g. firefighting vs. strategy)
Issue Tree Approaches
0. The MECE Principle:
There are 5 MECE tree types:
o Algebraic structures: elements joined by the mathematical operators
o Process structure: elements represent the blocks of a cause-effect sequence
o Conceptual structure: elements on each branch outline the potential sub-issues of a larger issue
o Segmentation: elements represent the parts of a business structure (customer types, biz units)
o Opposite words: the most basic approach, uses 2 opposite terms to cover 100% of each block
• The best approach to real cases is to combine elements of all the types above
• A MECE structure will likely have 3-4 levels. 2 is superficial, 5 is too detailed.
• Once built a MECE structure, add +1 level filled with non-MECE QUAL specifics to drive insights

Layering MECE:
• One way to build a MECE tree is by layering MECE sub-structures onto each other, like sub-equations
• This works similarly to layering Algebraic structures (see below), building on first principles:
o Identify problem variables from its description (the original problem statement + interpretation)
o To do that, identify the key nouns, verbs & adjectives of the statement (can use 5W2H)
o Break down the variables into MECE components - layer by layer, using one of 5 MECE ways
o Be careful: test out all 5 MECE types to decide on the 1st layer, since this will drive the whole case
o Choose a MECE type that is both insightful and practical
o The top layer will use only one MECE type. Deeper layers may use a mix, if that works better.

Extension to MECE: Decision Trees

• Decision Trees are the regular MECE trees that feature IF … THEN … logic operators
• This is a step further than an Algebraic tree, since it uses a more complex operator:
o Algebraic trees use math operators (+, -, *, /)
o 4 other MECE trees use boolean operators (1, 0 or AND/OR)
o Decision trees use logic operators (IF … THEN … ELSE) – advanced, require fwd anticipation
• Be careful: this is a difficult technique that can make simple problems challenging. Its scope for
application is narrow, and the tasks that need it are very rare. Keep it in mind, but concentrate on others.

1. Algebraic Structures:
• Essentially math equations representing a metric to be optimised; frequently in use
• Technically, achiever by mathematical modelling; “Profit = Rev – Cost” is the most basic one
• Only used for quantitative problems (e.g. profitability), not qualitative (e.g. “yes-no decision”)
• Remember that there are always qualitative aspects (meaning) behind every number
• Use it when a case has a specific metric pronounced
• Algebraic structures may be used to create entire trees by identifying the involved parameters
Creation Techniques:
• Basics:
o Define the numerical variables to analyse as Why, How, and the associated metrics
o Build the 1st layer by breaking down this variable into an equation
o Continue building the layers by breaking each bucket down into sub-equations
• Approach #1: Proven Formula
o Applies in most cases, e.g. Revenue = Profit – Cost
o It helps to learn some
• Approach #2: Dimensional Analysis
o Useful when you don’t know the formula
o Identify a single direct driver for the variable that needs to be broken down (i.e. some parameter
that affects your variable directly – e.g. the # of new customers producing revenue increase)
o Use dimensional analysis to find the mathematical component of that core driver. To do that,
evaluate the links between the dimensional units directly (e.g. $, #, sales/hour, etc.)
• Approach #3: Funnel
o Most processes may be represented as a funnel – i.e. each step narrows down the final result
o Identify funnel stages of the involved process
• Approach #4: Sum of Segments
o Is not always applicable and heavily depends on the case specifics
o Where segmentation is involved (customers, products, company etc.), it can be analysed

2. Process Structures:
• Represent problems as a process, which has the beginning, the middle, and the end
• The way to build them is to imagine the timeline of a related process (e.g. a customer journey)
• Used for QUAL problems based on some kind of a predictable process (production, sales, hiring etc.)
• A process question may be recognised by the presence of a) steps/actions, and b) sequence/timing
• Alternatively, the question may be masked with a “WHY/HOW?” question about some outputs/results
• One can also tailor a non-process question into one by “stretched thinking” (e.g. customer satisfaction)
• When tailoring questions to process structure, don’t overlook possible iterations of some its parts
• It is imperative to ask many thorough questions to be able to build a MECE structure
• The key to be MECE is to follow chronology: start from top-level steps, then zoom in on sub-steps
• Once you’ve built it, verify with the interviewers if it’s correct by presenting – this replicates real projects

3. Conceptual Structures:
• Aka “Qualitative frameworks”, these constitute idea categories e.g.: 3C, 4P (you’ll create your own)
• By far the most challenging, but also the most versatile structure type
• Requires the knowledge of a framework specific to the situation; essential to many cases
• Used for long-term strategy or other twisted problems where quantitative data is unreliable (M&A,
market entry, growth strategies)
• Built from specific concepts relevant to a given problem, i.e. applying & tailoring standard frameworks
• These concepts are usually known in categories, but may be tailored provided sufficient understanding
• Skip the 1st obvious step when building it (naming typical parts), specify applicable elements from start
• Risks:
o Picking a wrong framework (won’t adapt to case specifics, leading to a false result)
o Not knowing/remembering a framework appropriate for given problem (results in force-fitting)
o Missing the connection between the framework and other structures (algebra, process)
• Be prepared to switch your structures half-way, in case you start off wrong way (e.g. QUANT→QUAL)!

Segmentation & Opposite Words - INTRO:

• BE CAREFUL: these are convenient, but do not allow solving the case on their own
• Do not use them solely as the way to get through the interview; combine them with the others
• They allow to construct an overview of the problem, but not to get to the root of it
• Uses:
o Understand parts of the problem
o Create tentative hypotheses
o Identify mixed effects between the root causes
o Opp. Words are used to get a structure instantaneously on-demand, which may happen

4. Segmentation:
• Based on segmenting one criterion at a time
• Risks: choosing wrong pattern (wrong results); trying too many (more than 2 = obvious guessing)
• Best used when a problem has one criterion more pronounced than others; or to check “mix effect”
• Remember: this is NOT a way to completely structure a problem; it only adds taste (value)
• Built by slicing one criterion into a complete list of constituent categories (e.g. population by ages)
• A “mix effect” is when some values change due to parameters that are not directly related to it, while
the actual data for that value remains unchanged (and thus, causes confusion)
• Short term profitability cases are particularly prone to Mix Effect.

5. Opposite Words:
• Used when:
o you can’t find a case structure for any reason (forgot, can’t figure it out at any effort)
o as an extra layer to an existing structure (e.g. insights)
o to add quick logic to your discussion (structuring comments & answers rather than problem)
• No limits to use; but also, never the most insightful way of breaking down a problem – your last resort

Creating Customised Structures:

These presented MECE structures are combined to produce unique, custom structures for MAX effect:
• Issue Trees
• Context-driven structures
• Objective-driven structures
 Custom Tree Process:
i. Build the 1st layer of a MECE case structure using any of the 5 approaches (choose one that applies best)
ii. Repeat for the 2nd layer, selecting the structure type again for each of the 1 st layer’s blocks (may be the
same or different among each other and w.r.t. 1st layer)
iii. Go as many layers as you feel is necessary to solve the case

Best strategies:
• It is likely that Core techniques will prevail on the left (top layers), and aux ones on the right.
• It is very beneficial to put quantifiable elements in the 2nd layer, right after the core of the problem (single
node in the 1st layer). This allows you to stay focused on your target and tie what you do to it.
• Sometimes, structures can be imposed on each other. E.g. Segmentation can be used twice, or in
combination with Process to create a matrix.
• You’re doing it wrong if your structuring approach could fit any problem and not just the given one.
• At every layer, the structure must have a clear and robust logic behind it, and not just random selection

Good Practices
It is not sufficient for a good solution to only feature a structure that is technically MECE. There are also
several other aspects that make the structure and the subsequent solution good:
• Separate the case into its core sub-problems early on to ensure not working on both at a time
• Build each part of the tree one at a time to not get overwhelmed by the stacking of its simple elements
• When building structure, do not just put down what comes to your mind (like wandering through a forest
of scattered ideas). Instead, try to fit MECE types 1-by-1 in a sequential manner until a good one fits.
• Ensure that each part of the structure is eliminative – i.e. it allows you to eliminate non-critical branches
as you gather more data, and focus on the driving issues only.
• To do that, make your top-level elements falsifiable – i.e. checked using some specific test to guarantee
that the problem is or isn’t in that element.
• Making the elements falsifiable implies designing appropriate tests for the most critical elements (i.e.
those most likely to drive the case) when defining it.
• Remember that elimination contradicts insightfulness. Judge on-the-go what is more beneficial and
decide on what principle to follow.
• Clarify (i.e. ask) what you need in each layer. Solving cases is not based on guesswork. To make it better,
start with your proposed assumptions – but follow with asking if it is correct.
• Make your structures insightful – i.e. have as many case-specific (i.e. non-generic) issues as possible to
the necessary level of detail on sub-top levels. A structure can be MECE, but not insightful enough.
• When struggling, specify the constituents of a generic consideration as a sub-tree or an open list
verbally. What makes a generic issue into an insightful one is specifying it in enough detail.
• Test the level of insightfulness for your structure:
o Count the # of individual issues your structure has on level 2 and deeper, and
o How many of it are unique – i.e. could NOT be used in another hypothetical case or industry.
o Insightfulness Score = Unique / Overall, and it must be >50%
o This also serves to demonstrate that you’re engaged and not re-using a canned framework
• Ensure that each element of the structure is not only MECE, but also relevant to the specific problem
(e.g. market structure). Do not define an issue for something that could be asked as a digging question,
but is too generic to drive the solution (e.g. market size – you will only put it if the core issue is with it!)
• To test issues relevance, imagine the case question is hidden. Is it possible to infer what it asked based
on the specific issues you’ve drawn? If Yes, then the levels of relevance & insight are adequate.
Chapter 2 – Technique #2 of https://www.craftingcases.com/issue-tree-guide/
Also see:
• https://www.craftingcases.com/profitability-tree-guide/
• https://www.craftingcases.com/issue-tree-guide/
• https://www.craftingcases.com/consulting-interview-questions/
• https://www.craftingcases.com/case-interview-prep-guide/
• https://www.craftingcases.com/questions-to-ask-end-of-consulting-interview/
• https://www.craftingcases.com/case-interview-examples/

Also:
• https://hackingthecaseinterview.thinkific.com/pages/case-interview-frameworks
• https://hackingthecaseinterview.thinkific.com/pages/market-entry-case-interview
• https://hackingthecaseinterview.thinkific.com/pages/merger-acquisition-case-interview
 CaseCoach Course

Keep structured notes laid out in an efficient manner, e.g.:

• Keep the key info on one side (left), separated by a line
• If there are several objects discussed (e.g. M&A questions), use identical sequence to record info
• The bigger part of the sheet is reserved for the structure
• Perform calcs etc. on the other sheets; keep the 1st sheet as the core to drive the case
 Hard CI Cases
• Can any two dogs in the world have the same number of hairs?
• How much would you pay for a London - NYC trip which takes 10 minutes?
• Should the University of Chicago launch online courses?
• Should China Southern Airlines introduce a direct Perth - Guangzhou flight?
• A small Internet Cafe in Ghana’s capital Accra is experiencing a decline in profits - what do you do?
• Calculate the total size in dollars of the wedding dress market in Australia for one year.
• The American NBA is considering expanding into China. Should it?
• You are a medieval age (13th Century) king’s chief advisor in India. There is another small empire adjoining your
kingdom. How do you include that empire within your kingdom?
• How would you make Brighton the Las Vegas of Europe?
• Why, with technical indicators available, do people still lose money in the stock markets?
• Our client is a ski company. At one of their ski parks, they are facing long queues at the ski lifts. They would like us
to reduce the amount of time their customers spend waiting.
• How much does a 747-plane taking off from La Guardia en-route to London Heathrow weigh?
• How many postmen are in this city?
• How would you evaluate the value of a cow?
• How many tennis balls can fit in a plane?
• How many pianos are in Poland?
• https://www.preplounge.com/en/management-consulting-cases
• https://www.preplounge.com/en/consulting-forum/toughest-bain-style-case-1540
• Ski resort question
• https://www.consultingcase101.com/tag/free-sample-case/

Guesstimation Cases (generally difficult):

• What is Air France’s weekly revenue for the Paris-to-New York leg?
• WHAT IS THE REVENUE OF PEUGEOTS SOLD IN FRANCE PER YEAR?
• WHAT IS THE REVENUE FOR THE BOARD GAME MONOPOLY SOLD IN INDIA PER YEAR?
• What volume of beer is sold at an average LA Lakers basketball game?
• What is the monthly revenue of your hair salon?
• How many school teachers are there in Chicago?
• What is the monthly profit of your favorite restaurant?
• How many flat screen televisions have been sold in Australia in the past 12 months?
• How many iPhones are currently being used in China?
• Are there more iPhones in operation in the U.S. or in China?
• How many trees are there in New York City?
• How many avocados are used to make guacamole per day in Mexico?
• What is the Revenue for the smartphone market in India?
• Calculate the annual carbon emissions from electric vs. gas vehicles in the EU.
• Estimate the revenue from Olympics 2012 ticket sales.
• How would you go about scaling a baby clothing company?
• How can a frozen dog food company cut costs across its five different U.S. regions?
• Should a catalytic converter company vertically integrate to begin producing gaskets as well?
• Should a shaved ice company begin licensing its product to movie theaters?
• Should a hot dog stand owner expand his current operations to a second location?
• Talk about strategies to improve customer loyalty.
The Approach is described here.
 Case Interview Maths
• https://mconsultingprep.com/consulting-math/
• https://www.youtube.com/watch?time_continue=292&v=_bktsTc4PLI&feature=emb_title
• https://igotanoffer.com/pages/case-interview-maths
• https://www.consultingcase101.com/tag/consulting-math-drills/
• https://www.jobtestprep.co.uk/watson-glaser-sample-questions
• https://mconsultingprep.com/chart-based-math-drills/
• GMAT
• Charts