Case-Studies

While preparing for case-solving, the goal is to develop the consulting thinking process and to
ensure that there is no one right solution for any case statement, be it the cases in this document or
the final interview questions.
The frameworks are there to give direction initially to new case solvers. They should not be treated
as a fixed boundary but could be utilized by the reader to cover any case that comes their way
according to their logical structure. Also, the reader should leverage the recommendations, tips,
and suggestions to apply learnings from one case to another.

Structure of a Case-Study Interview

Case interviews are used to measure a candidate’s ability to assess an unfamiliar situation, uncover
relevant and minute details while applying their thought process to come up with one or more
possible solutions to the problem, and finally communicate their recommendations in a structured
manner.

💡 The basic approach to solving a case interview is: First, understanding the problem and
requirements, then identifying a structure that would help one solve the problem, then
analyzing the information available and finally, reaching a conclusion & giving
recommendations

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 How to Approach a Case Study Interview

Understand & Clarify the problem statement

Candidates must be sure that they have clearly understood the problem statement, a mistake
committed here has the biggest potential to ruin the entire interview.

Ask clarifying questions in the beginning; someone who asks the right questions is better able
to understand the complete problem and has a higher chance to come up with an accurate
solution.

It is not unusual for the interviewer to not divulge all the relevant information at once because
they also try to test the candidates on their ability to extract information; the obvious purpose is
to see how well the candidate may be able to do the same while interacting with clients.

Do not make any assumptions unless necessary; if a candidate wishes to do so, then it’s always
better to communicate with the interviewer to get them validated.

Structure the Problem

This involves putting all the data received together and making a sense out of it. Candidates
should try to keep their structure as simple as possible because in some cases, the interviewer
may ask for the working sheet, and accordingly should be able to understand the approach
followed by just glancing at the sheet at once.

Frameworks can be used in the structuring of data; however, do not try to force fit any
framework just for the sake of using it. Also, whenever a framework is used, the candidates
should communicate their approach to solving the interviewer rather than saying “I’m using
market entry framework”.

Analyze the Case

This is the main stage of the problem-solving process wherein the candidates are required to
draw inferences from the gathered information. The process is aided by the structure they
decide to follow using the chosen framework, if any.

Candidates should ask two questions to themselves:

a) What did this data point look like earlier for us?

b) What does this data point look like for the competitors?

It is suggested that candidates develop a hypothesis consisting of various possible solutions,

ask leading questions to validate their hypothesis, and keep on narrowing their set based on the
discussion.

💡 The candidate should continuously communicate with the interviewer to let them know
of their thought process. More often than not, the interviewers will help the candidate
get back on track if they see that the person is thinking in the wrong direction.

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 In case the candidate realizes that some data is still missing, do not hesitate to ask questions to
extract it from the interviewer. No one will provide the information on their own but will surely
help if well-directed questions are asked.

Arrive at Conclusion
This is the last stage of problem-solving and perhaps the determinant of a candidate’s success
in getting through the interview. All efforts put in thus far are of little use if the candidate is
unable to come up with a proper conclusion backed by a logical implementation plan.

Try to ensure that the recommendations are close to reality since it increases their chances of
being implementable in real-life scenarios. Remember, concrete solutions fetch more marks
than broad vague answers.

💡 Before finally communicating the solution, do a quick “sanity check”, that is, evaluate if
the proposed solution, particularly if it is quantitative, makes sense or not. This can be
done by using a bottom-up strategy if the original answer was derived following a top-
down approach or vice-versa.

Some Do’s & Don’ts for the Interviews

Do’s Don’ts

Interrupt the Interviewer: This should never be

Build Rapport: The opening interaction,
done since there is a risk of missing out on some
continuous communication and patient listening
important information that the interviewer would
skills contribute to building rapport and thus,
have otherwise divulged. Further, it gives an
strengthening the candidature from the
impression that the candidate is impatient, and
communication aspect of the interview.
might not be a good team player.

Assume any information unless explicitly given

Be Confident: Remain confident throughout the by the interviewer: Candidates tend to presume
interview even if there’s a feeling that things certain information. This should strictly not be
aren’t going as expected. This exhibits an done unless the interviewer gives the information
important trait of being able to maintain explicitly. However, if a candidate has some prior
composure and handle critical situations. which information, either clarify that through questions
are part and parcel of a consultant’s life. from the interviewer or suggest that as a possible
solution to the given problem.

Drive the interview towards your strong zone: Get bogged down by frameworks: Frameworks
This can be done by using examples related to are useful in structuring one’s thoughts but
their domain area while answering the questions should not become an impediment to “out of the
put forward by the interviewers. However, be box” thinking. For instance, an acquisition may be
mindful of not making it an irrelevant reference or used to improve profitability; however, that would
overdoing it if the interviewer isn’t interested in not fall under any of the conventional
talking about that. frameworks.

Positive Body-Language: Try to be cheerful Be Mechanical: Candidates are advised not to be

throughout the interaction as it may help to cover mechanical while answering questions related to
a small mistake, if any, the candidate might have their personal experience as it gives an
committed while solving the case. Further, impression that the answer has been well
candidates are evaluated on their overall

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 Do’s Don’ts
presentation, which includes body language and rehearsed. Try to read the cues of the
communication skills apart from the most sought- interviewers and involve them in the discussions.
after problem-solving skills.

Closing Note: The candidate should end the Panic: Mistakes do happen, either in calculations
interview with a smile even if it wasn’t the best of or while speaking on a topic. It is important not to
the interviews; sometimes even the candidate’s freak out in such moments; rather as soon as a
positive approach may work in the favour and mistake has
overshadow a mediocre interview. been committed, be ready to own up and admit it.

Key Frameworks
1. Profitability Framework
To pinpoint the reason behind declining or rising profitability, a company's revenues and expenses
must be analyzed. Key insights and insightful recommendations can be drawn from a thorough
grasp of revenue and cost heads for different industries.

Initial Questions

Get a primitive understanding of the company: What product/services does it offer? What geography
does it cater to?

Understand whether this is a company-specific problem or an industry-wide phenomenon

Keep in mind the quantum of profit/losses and the time period

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 Profit vs Profitability

Profits are merely a difference between Revenues and Cost, while Profitability refers to profit as a
proportion of sales

Units Sold

It can also be broken down as ‘Internal’ and ‘External’ factors; Internal issues are similar to the Supply
Side break-down and External issues are to be examined via PESTEL analysis

Demand can be seen as: (Market Size * Market Share)

Costs can also be divided (depending on the type of problem statement & the information
available):-

Direct & Indirect Costs

Fixed & Variable Costs

2. Market Entry Framework

A Market Entry Case (whether a new product launch or entry into a new geography or both) is
hinged on two basic questions: Is it worthwhile entering the market (economically and strategically)
and if yes, what would be the best way to enter the market?

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 Initial Questions

Always ask about the company’s objective to enter that particular market

Get a primitive understanding of the company: what it does do? What product to launch? Previous
history with launches & why this particular geography/product launch? What part of the value chain
does it want to set up?

Analysis

It can also be done using Economic Analysis: [ Mkt. Size * Mkt. Share * (Price -Variable Cost) -Fixed
Cost ] and Operational Feasibility: regulatory/other barriers in setting up a value chain explore the
need to partner with others or enter into JVs in each bucket

3. New Product Introduction Framework

In a new product entry case, a company is likely to aim to introduce a completely new product in a
market or expand its existing product’s reach in a new geography. An interviewee is expected to
first align on the product’s viability to succeed in the market followed by identifying the correct
price point and target market and finally recommend levers that can drive product success in the
market.

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 Initial Questions

Always ask about the company’s objective in launching a new product

Get a primitive understanding of the company: what it does do? More about the new product, target
customers? Previous history with launches & why this geography/product launch? What part of the
value chain will it operate in?

Analysis

The pros and cons associated with each bucket have to be brought out in the analysis, with ready
suggestions on how to overcome the possible challenges

4. Pricing Framework
In a pricing case, the objective is to determine a methodology for pricing of any product. The
product could be a new invention, it could have other competitor products in the market etc. The
student should determine the objective of the company, understand the product features and
market environment and then apply a relevant methodology to price the product.

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 Initial Questions

Always ask about the company’s objective for pricing the product

Get a primitive understanding of the company: what it does do? More about the product, target
customers?

Depending on the objectives of profitability or market share or breaking even, recommend an

appropriate approach

Analysis

Some parameters like Willingness to pay, and opportunity cost of having no products might not be
directly provided by the interviewer, so try to develop creative proxies for the same which would
determine the accuracy of your recommendation

5. Growth Framework
In a Growth scenario, a company is likely to aim for XX% YoY growth. An interviewee is expected to
first align the growth targets, followed by validating them, identifying pillars, and finally
recommending how the company can leverage go about these pillars.

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 Initial Questions

Get a primitive understanding of the company: what it does do? More about the product, target
customers? What geographies?

Analysis

The framework is a comprehensive version of the Ansoff Matrix, so the probing questions, the
analysis and recommendations can be given keeping that in mind

The creativity around the recommendations in exploring new channels/segments will earn brownie
points

6. Mergers & Acquisition Frameworks

Mergers & acquisitions provide a means of inorganic growth for a company. It is important to
evaluate a prospective merger or acquisition using a framework to understand the net benefits the
acquirer can receive including financial as well as non-financial factors.

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 Initial Questions

Understand Client’s Company: Questions can be asked to learn about the client’s company, its
current state, the industry in which it operates, growth strategy and aspirations.

Understand Target Company: Questions can be asked to understand the target market, market
share, profitability, and competitors.

Financial
Value Addition Synergies Costs

Operational:
•
Valuation: Target company’s
Revenue– Selling more quantity Acquisition price: This price is
valuation indicates the present
or higher pricing quoted to the acquirer for this
value of cash flows it can
• M&A. Typically, the price value
generate in future based on its
Costs– Economies of will be given by the interviewer.
current capital structure
scale/scope, savings in R&D or
selling (SG&A) costs

Integration Costs: Costs

Synergies: Synergies are
Financial: Potential tax savings, incurred during the M&A
additional benefits derived from
(shield) improved leverage ratio, process for integration of IT
the combined assets of the
ability to take more debt systems, operation processes
acquirer and target.
organizational structure.

Non-Financial
Acquirer Fit

Cultural Fit: Working norms, countries, entrepreneurial vs corporate, etc.

Organizational Fit: Similarity in organizational structure, talent & skill set overlap, etc.

Strategy Fit: Alignment in long-term growth strategies

External Risks: To be analyzed using the PESTEL framework

7. Due Diligence Framework

Before acquiring a stake in a target company, a private equity fund usually conducts a
comprehensive due diligence process. One part of the diligence is commercial due diligence,

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 wherein the fund leverages the expertise of consulting firms to focus on the business aspect of the
target.

This commercial DD framework, which has some similarities with the M&A framework, can be
applied in any case wherein the client, not necessarily a PE fund at all times, wants to ascertain the
commercial viability of the prospective investment.

Initial Questions

Start with understanding the client’s profile and past investments

Make sure to understand the objective behind the prospective investment and incorporate that in your
insights

Analysis
Market Competition Business Customer

Determine whether the Benchmark the target Understand financial Segment customers
market is attractive to with its competitors to factors such as based on various
invest in. Like market determine relative monetization and criteria and analyze key
entry cases, market strength. Ascertain fundraising as well as metrics to understand
sizing will be at the how the target is non-financial factors if customers are loyal
core of this. differentiated and to the target

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 Market Competition Business Customer
whether the like operations, team,
differentiation is workforce strength
sustainable.

8. Common Frameworks
SWOT Matrix

PESTEL Analysis

9. Marketing Frameworks

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 10. Miscellaneous Frameworks

Not a ‘One Size Fits All ‘ Exercise!

Structured problem-solving is about understanding a business situation, breaking it open into
subproblems, and analyzing it from different perspectives. The multiplicity of perspectives means
that the same problem can be looked at in numerous different ways.

As such, what aspect one targets is very subjective with no right or wrong choice. Given a
particular situation, different people will choose different focus points and hence the structure they
build will be different.

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