How to Crack Case

Interviews?
SS

Prof. Rahul K Shukla

E: [email protected]
 Some gyan…

“A good case interview should be an enjoyable and

thoughtful discussion of business issues and problem-
solving techniques. We are not looking for a "right
answer" or asking you to spit back memorized business
terms, current events or well-known frameworks. Rather,
we hope to see a good dose of problem-solving skills,
creativity and common sense.”

- Bain & Company website

 The Case Interview

The cases test basic business sense, analytical ability, and the
problem-solving capabilities essential to these types of jobs.
The Purpose of Case Questions
 Get on the Right Track

• Drive the interview with confidence because you know

where you want to go
• Develop a plan to guide you to the answer in a unique,
common-sense manner
• Stay composed by learning how to read your audience
• Stick to the facts by asking data-driven questions
• Get to an answer quickly by mining the most important
facts
• End the case well with suggested wrap-up language for
each type of case
Why Business Cases?
 Further,

Problem-solving

• Do you make an effort to understand the key issues?

• Do you have a structured approach?
• Are you asking relevant questions?
• Did you take time to consider all the options (be creative)
and their implications?
 Business Sense

• Familiarity with basic concepts such as supply and

demand
• Understand that there are a variety of business goals
(profit, revenue, market share, brand awareness, etc.)
• Awareness of how some current companies do their
business (e.g. Google makes money on advertisements,
etc.)
 Analytical Capabilities

• Can you do basic arithmetic?

• Can you read charts and tables?
• Do you read between the lines (implications of what you
see)?
• How good are you at piecing together information from
different sources (synthesis and insight)?
 Communication

• Can you articulate?

• Can you tell a compelling story (not just the solution, but
why you believe it is the best)?
• Can you organize information in a clear manner (slide
making in some case)?
 Approach

• Ask clarifying questions

• State your assumptions
• Organize your thoughts & notes
• Be concise and articulate
• Practice, practice, practice!
 Avoid Making Assumptions (Ask
professional questions)
• What is the product?
• Who hired us?
• How long will this engagement last?
• Has the company faced this problem (or opportunity)
before? If so, how did it react? What was the outcome?
• What have other companies facing this situation done?
 Think out loudly…

• The business case is an opportunity to show the

interviewer how you think.
• As you assess, compile, and analyze the elements
presented to you, be sure that you speak aloud and
explain your reasoning.
 Types of Case Scenarios

Business Cases have traditionally focused on either

business strategy or operations. The multiple scenarios
can be…
• Strategy Scenarios:
• Entering a new market
• Industry analysis
• Mergers and acquisition
• Developing a new product
• Pricing strategies
• Growth Strategies
• Starting a new business
• Competitive response
 Contd.

• Operations Scenarios
• Increasing Sales
• Reducing Costs
• Improving the bottom line
• Turn Arounds
 Approach

Summarize the question

Verify the objectives
Ask clarifying questions
 Tools

• Rational Decision Making Structure

• PrOACT Framework
• The Four Ps: Price/Product/Place/Promotion
• The Four Cs: Customer/Competition/Cost/Capability
• The Five Cs:
Character/Capacity/Capital/Conditions/Competitive
Advantage
Or, any other.
 Market Analysis Tools

• Competitive position framework

• Relative value versus competitors to customer through supply
chain
• Product life cycle
• Supply and demand analysis
• Industry capacity
• Industry utilization
• Demand drivers
• Regressions
• Segmentation analysis
• Porter’s Five Forces
• Experience curves
• Trends and outlook
 Target Analysis Tools

• Business system – comparison with competitors

• Market share (over time and by segment)
• Capacity (growth and utilization of)
• Customer’s key purchase criteria and relative
performance
• Financial history
• Sales and profitability by segment
• Cash flow analysis
• Margin and expense structure
• Relative cost position
• Cost benchmarking
Product Life Cycle Curve
S Framework for Internals
Strategy Tool/Framework Chart
 What irks the interviewer?

• What was the question again?

• Explosion of the mouth
• Digression city
• The bull in the consulting China cabinet
• Asking open ended questions
Strategic Cases
Operations Cases
Organization/Systems/Process Cases
Finance Cases
External Forces
Remember…
 Zone 1 (Strategy—Something to be done
with the company)
One of the four levers require attention:
• Expand Scope
• Reduce Scope
• Change Direction
• Do Nothing
Expand Scope
Reduce Scope
Change Direction
Maintain Status Quo
 Zone 2 Operations
(Think about the internal activities of the
company)
How to increase our profits?

Basic Profit = Revenue (Price x Volume) – Costs (Fixed +

Variable)
Increase Profits
Increase Volume
Reduce Cost
Zone 3 (Organization-Elements that make
the company do well or poorly)
Streamline Processes
Optimize Information Systems
Measure Results
Zone 4 (Finance-Impact on the overall
potential value of the company)
Zone 5 (External Forces—Overarching
Influencers)
People
 ABCDE

• Audience Analysis
• Bucket planning
• Create hypothesis (Where is the value?)
• Dig for answer (Ask questions)
• End the case
 Q1

Our client Paper Paper, Inc. wants to get into “post it” types
notes, how would you assess if this is a good idea?
 Question Signpost

• New Product
• Cannibalize
• Introduce
• New Line
• Enter
• Test Market
 Road Map

1. Strategy – change direction, new product

2. Volume – how much demand is there? Price –how much
can we charge? Volume – What do we need to do to build
it?
3. Suppliers – any raw material problems?
Competitors – does our product compare?
Industry – barriers to our new product? Patents?
Technology – how does this help us?
4. People – Do we have the right people?
5. Processes – How will we distribute this product?
6. Finance – how will we finance this?
 Begin with a plan

“This client would like introduce a new product so my

initial thoughts are around demand and pricing. Basically,
do customers want this item? I would also like to explore
external forces like competitors and the industry landscape
as well as internal issues like our team, distribution and
financing. Do you have a preference of where we begin?”
 Q2

ABC Co. is ready to open seven new retail locations in

Bangladesh. What kind of issues do you think they’ll
face?”
 Question Signpost

• Core business
• Enter
• Expand
• New market
• Channels
• Distribution
• Barriers to entry
 Road Map

1. Strategy, Change Direction – Our client is starting

something in a new location.
2. Operations – What’s demand? What can we charge? How
do we build awareness?
3. External Forces – Will suppliers have enough raw
materials? How does our product compare to the
competitors? How does our market share compare?
Barriers to this industry in new countries?
4. People – How good are our people?
5. Distribution – How will we distribute?
6. Financing – What will happen with the company’s debt
and equity?
 Begin with plan

“Our goal is to enter a new country so I want to determine

which countries offer the best revenue and ease of entry.
Issues like suppliers, competitor response and industry
barriers will be important. Time permitting, I also would
like to discuss internal support issues like our team,
marketing, distribution and financing. Before I go down
this path, does management have any specific goals for our
team? For instance, the number of countries or revenue or
profit targets?”
 Q3

“My client is thinking about acquiring a competitor. Tell me

if it’s a good idea.”
 Question Signpost

Merge
Acquire
Align
Join
Partner
Team
Joint Venture
Hostile Takeover
 Road Map

1. Strategy – expand scope

2. Economy – environment right for this?
Competitors – are they responding?
Industry – is this common right now?
3. Operations – how big are new sales?
4. People – how will we handle integration?
5. Finance – how will we finance this?
 Begin with a Plan

“Since this situation will have a significant impact on our

business, I’d like to review several areas. Understanding a
few more macro issues like the industry and how
competitors are responding will be important. Internal
operations and the organization will be critical too, as we
increase sales and integrate systems and people. If we have
time I’d like to also move into the financing of the deal. Do
you have a preference for where we begin?”
Possible Drivers
Shorter Version
 Investigate the Drivers

• Competition
a. Rivals – Who are they? What is their relative share? How
are they positioned relative to us?
• b. New Entrants – Is there a credible threat of new entrants?
c. Substitutes – Are we worried about other products serving
as substitutes?
• Customers
a. Segments – What new segments might we be able to pursue?
b. Needs – What are the needs of each segment?
• Supply Chain
a. Distribution – Do we have the capability to reach a new
customer segment?
• Revenue
a. Volume – a. What the size of a new target segment? b. Price –
What price point can we hit?
 Exercise 1

Our client is private equity firm considering taking private

a leading manufacturer of bicycle helmets. Should they?
 Exercise 2

Our client would like us to estimate the market for artificial

turf. How would you approach this question?
 Exercise 2

The CEO of a major conglomerate is dealing with poor

profitability in each of his three divisions: A, B, and C.
What should he do to maximize value for his
shareholders?
General Frameworks
Key Marketing Concepts
Contd.
General Frameworks
General Frameworks
General Frameworks
Key Formula Review
Key Formula Review
Some Concepts
Some Concepts
Glossary
Glossary
Glossary
Glossary
Glossary
Best wishes!