An Insiders Guide to Consulting Interviews*

TS Strategy Group
www.pwc.com/strategycareers

*connectedthinking

Interviews are key components of the application and

selection process. They are not meant to be daunting
(by us anyways), but are intended to help match your
interests and capabilities with our needs and offering.
The purpose of this guide is to help you become
comfortable with the somewhat infamous case study
interview, central to many consulting rms interview
process. From the candidates perspective, the main
purpose of the case study interview is to show the
interviewer how you think and to prove your analytical
abilities. Questions are best answered by thinking about
the key issues of the problem, approaching the answer
methodically, and using some creative thinking.
In this guide, we cover the key techniques of the case
study interview and provide you with a selection of
sample cases for you to practice on. Our goal is that
when you are confronted with a case study interview,
you will be condent, fully prepared and be able to
perform to the best of your abilities.
Bear in mind that there may be more than one right
answer (or none), and the important thing is to display
the ability to think critically about the problem.

The TS Strategy Group

The TS Strategy Group in PricewaterhouseCoopers is
rapidly growing, combining the visionary, entrepreneurial
and friendly spirit of a small, niche consultancy with
the resources and reputation of the worlds largest
professional services rm.
We are focused on developing growth and M&A
strategies for our clients, which include: private equity
rms, premiere global corporations, and strong and
vibrant middle market players. We are currently hiring
high caliber individuals with the analytical and problem
solving skills needed to contribute to our practice in
New York.
To learn more, visit our website at
www.pwc.com/strategycareers.

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Contents
Introduction to Consulting Interviews
The Case Study
Market Sizing Questions
General Interviewing Tips
Case Study Practice Examples

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1
2
3
5
6

Introduction to
Consulting Interviews
Interviews can be daunting prospects, but if you know
what to expect you can relax and be condent that
youll do your best.
Remember that if youve gotten this far, the company in
question is interested in you and believes that you have
the potential to do the job. As such, interviews offer you
the chance to shine, and further convince employers of
your abilities.
If you wish to appear condent, assured and
professional during assessments, and therefore have
the best chance of success, good preparation is vital.
This guide will help you to relax on the day and let your
best qualities shine through.

Market Sizing Problems

The other common style of questions is known as
market sizing. Here you will typically be asked to make
an estimate of an abstract quantity such as the number
of taxi cabs in New York or the number of golf balls sold
last year in the US. In these cases, the interviewer is
more concerned with how you get to your nal answer
than what your answer actually is. Market sizing cases
are often wrapped into a longer case study question and
can often be used to test your mental arithmetic abilities.

General Interview Tips

There are a number of good, general interviewing
tips which should be borne in mind when you are
interviewing. See our section on general advice for more
details on these.

Case Study Interviews

The main purpose of the case interview is to
demonstrate how you analyze a problem. So let the
interviewer hear your thought process and always
explain fully any assumptions you make.
There are two types of case studies. The most common
type of case is an interactive case. The interviewer will
outline a scenario for you and will provide additional
information on the company and/or the industry as the
interview progresses. The second, less common format
is the one-sided case. Here the interviewer will present
you with an initial set of facts and leave you to solve
the case and to state any assumptions that you make
along the way.
See our section on case studies interviews for advice
on how to approach case study questions. One of
the best ways to become comfortable with the case
study interview is to become familiar with the types
of questions and thinking required. At the back of
this guide, we have provided a set of cases for you to
practice on.

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The Case Study

What companies are looking for in case study
interviews
The main purpose of the case interview is to show
the way in which you analyze a problem, so let
the interviewer hear your thought process and any
assumptions you make. Case questions are designed to
test your analytical abilities under stress and when you
are presented with incomplete information. There can
be many right answers to a case study but there also
is a right way to approach the case study.
Try to relax during the case and see it as an opportunity
to learn more about the drivers of success for a
company or industry. Feel free to take your time and
to think silently. You are not expected to provide a full
answer in just a few minutes and with no thought.

How to approach a case study

Below is a simple step by step guide to help you
approach the case interview.
1. Pause and think. Once the interviewer has outlined
the case, pause for a moment to think through
what you think the key issues are and how you will
structure and present your answer. You may want to
think what simple model to utilize such as analyzing
cost and revenue streams or a basic cost/benet
analysis
2. Ask questions. Be sure to ask questions about any
parts of the case you did not understand or are
unclear about. It is vital to begin your answer to the
case with a clear understanding of the problem
3. Summarize how you will proceed. Outline the way
in which you are going to answer the case to the
interviewer
4. Provide your detailed answer. Once you have
decided on the approach you are going to take and
you have communicated this to the interviewer, you
should begin your in-depth analysis. Pick a route to
begin your analysis (for example if you are looking at

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declining revenue, you should look at what is driving

revenue and how that may have changed). Continue
to probe down each area you want to cover but pay
attention to hints from the interviewer as to when you
should move onto the next area and when you may
require additional information. Be sure to think out
loud throughout your answer
5. Sum up your ndings. Summarize your ndings
where you can and draw your conclusions stating
what assumptions you have made. Where necessary,
suggest possible next steps for further analyzing the
situation
Importantthroughout the case, always understand
and stay focused on what the question is asking, or
what the key issues are

Types of case study interviews

Case study interviews typically resemble the following
types of problems:
Declining revenues
A simple case problem where a companys sales are
down and you have to gure out why. Your answer
may also require coming up with ideas for how to
boost future sales
Declining prots
Will involve a company where either sales are down,
costs or up or a combination of the two. Expect to
delve into the revenue and cost sides of the company
to nd out what is causing the declining prots. In
many cases, the interviewer may give you some
direction and say the problem is related to revenue or
costs specically
Be aware of situations where both revenues and
prots are increasing but costs have also been rising.
What may be happening here is that prot margins
(the ratio of prot to revenue) may be declining. Again,
expect to have to examine both the cost and revenue
streams of the company
Market Entry
A common form of case where either a company
is looking to enter a new geographical market or

is considering launching a new product. You may

be asked to estimate the size of the new market.
Additionally, you may be asked to think about issues
surrounding competition in the new market, potential
customers and the companys own ability to enter the
new market
Investment decision
A narrower form of case question. This could involve
evaluating whether a company should invest in a new
manufacturing plant or purchase a new technology.
A simple cost benet analysis can often be used to
evaluate this decision
Acquisition opportunity
You may be asked to evaluate whether one company
(the acquirer) should consider purchasing another
company (the target). Issues to consider may include
how the target would benet the acquirer, for example
by adding new products, adding new customers or
providing access to new markets. Negative aspects of
the acquisition may involve the price of the target or
integration issues
This case question may also be ipped round and
positioned as an opportunity to sell a company or part
of a company
Strategic Outlook
A broader case question that may give you the
opportunity to show some creative thinking. You
may be asked to consider the strategic outlook for
a specic company or a specic market (such as
the iPod or the company, Apple). Expect to cover
issues such as whether the market is growing, how
competitive the market is, and threats to future
performance

Market Sizing Questions

Market sizing questions, in their most basic form, ask
you to estimate the size of a particular market (hence
the name). In the business world, this information
can be especially useful when trying to gauge the
attractiveness of a market.
Within an interview, a market sizing question may be
asked in a clear and simple form (such as how much
is spent on domestic light bulbs in the US each year).
Alternatively, the question may be disguised as more
complex (do you think that xyz company should enter
the market for car insurance). What is really required
by the candidate for the complex type of question is
to peel away the outer layers to identify the core of the
issueestimating how many car insurance products are
sold each year.
Recruiters use market sizing questions to test
candidates number abilities, power of analysis and
their common sense. For example, if you were asked to
size the value of the annual domestic light bulb market
in the US, you would be required to make several
assumptions about the market. (How many homes
are there in the US? How many rooms are there in the
average house? How long does the average light bulb
last?). You would then be expected to make a few basic
calculations given these assumptions.
As you work through the problem, the interviewer will
also be looking to gauge your common sense. (Did you
assume that all houses in the US use the same types of
bulbs?).
A common mistake in market sizing questions is not to
answer the question. In the light bulb example above,
you are asked for the value of light bulbs sold. Many
candidates would stop once they have estimated how
many light bulbs are sold each year but this is not
what was asked. Only a simple additional calculation is
required to work out value (multiplying the total number

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of bulbs by an average price) but doing this nal step

shows that you were listening (to the original question)
and that can you follow instructionsboth important
workplace attributes.
Finally, at the end of a market sizing problem, try to offer
a sense check to the interviewer. For example, your
answer for the annual value of the light bulb market came
out at $5m. You can sense check this simply by saying
that there are about 100m households in the US, so if
each only bought one light bulb a year (which is a very
low estimate), the market would be worth $100m. You
now know that your answer is much too low and you can
go back and revisit your methodology and assumptions.

How many people ride the New York subway on a

weekday?
Hint:
Start with an estimate of the number of people in New
York. Then make assumptions as to what proportion ride
the subway. You may want to think about the different
groups of people in New York such as the split between
residents and tourists, workers and non-workers.
What is the value of all the postage stamps sold in the
US last year?
How many square feet of pizza are consumed by
college students each year?

A few tips:
Market sizing questions can seem intimidating. Below
are a few tips to help lower the pressure and improve
your performance:

How many car radios are manufactured in the US

each year?
How many games of soccer were played last weekend

Stick to round numbers. Even if you are math genius,

both you and the interviewer will nd your answer much
easier to follow if you dont over-complicate the math
Explain your thinking. Market sizing questions are
about your ideas. The interviewer is concerned about
how you get to your answer, not what the nal answer
actually is
Write things down. If you need to, write down the key
parts of the question and your basic working. The
interviewer would prefer you answered the question
well using a pen and paper than badly doing all the
workings in your head

Example Market Sizing Questions:

How many bars of hotel sized soap are produced each
year around the world?

on the East Coast?

How many boxes of breakfast cereal were consumed in
the US last year?
How many paper clips were sold in California last year?
How many golf balls are in the air at noon on a Saturday
in the US?
Estimate the manufactured cost of one Oreo cookie.
How many calculators were sold in Chicago last week?
How many miles are run by the population of the US in
any given year?

Hint:
Start by estimating the number of hotels in the world.
Simplify the question by just looking at hotels in major
cities and resorts in the world. Then make some
assumptions about the number of rooms per hotel and
room utilization rates.

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General Interview Tips

How do you look?
First impressions arent necessarily everything, but they
count for a lotespecially in an interview situation. It
sounds like common sense, but its surprising how often
these simple rules are overlooked.

Get your head straight

Write a list of examples to illustrate your experience and
skillsfrom both an academic and an extracurricular
and work experience perspective. Having these at
the front of your mind in an interview can help you to
speak more uently and condently. Focus on positive
examples that demonstrate something you succeeded
with or have learned from.

Dress smartly but comfortably and ensure your shoes,

hair and nails are clean
Greet your interviewer with a smile and a rm
handshake
Maintain eye contact with your interviewer so that you
appear condent and relaxed (but dont eyeball your
interviewer!)
Relax, sit comfortably in your chair and try not to
slouch or dget
Crossing your arms makes you seem defensive. If you
arent using your hands to illustrate a point, keep them
on your lap

On the day:
Whether its for a simple interview or a more involving
assessment day, make sure youre not late. Take with
you everything youve been asked to bring, but dont
have too much clutter with you
Try to stay relaxed and focused because excess
nerves will prevent you from performing at your best.
Remember that interviewers get nervous too! You
wouldnt have got this far if you werent capable of
getting the job.

In an interview situation

Listen carefully to the questions youre asked

Smile, show enthusiasm and energy
Think before you answer
Ask for clarication if youre not sure whats
being asked
Try to ask two or three informed and intelligent
questions at the end of your interview
Leave on a positive note, thanking the interviewer for
their time

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Case Study Practice

Examples

Example 2: Decline in market share

Example 1: Declining protability

Additional Information:
The company produces plastic wrapped specialty
cheeses at three price points (value, midrange and
premium). The market share loss is primarily in the
premium category. The cheeses carry a well
known brand.

You have been asked to help a major producer of

distilled spirits in the United States. The main products
sold by the company are a selection of mid-priced
rums and two brands of mid-priced gin. Protability has
been declining over the past few years, what could be
causing this?
Additional information:
The selling prices of the gin and rum lines are roughly the
same. The split of products sold has stayed pretty stable
at around two thirds rum, one third gin over the past few
years. Total sales for the company are growing at about
5% a year, about the same as the industry average.

A producer of specialty cheeses has hired you to help

nd out the cause of its recent decline in market share.

The cheese is sold in grocery stores, delis and specialist

supermarkets. Research has shown that the delis,
grocers and supermarkets have maintained the same
amount of facings and space for the product.
Advertising and marketing plans have been largely
unchanged throughout the period.

As you analyze costs, you nd out that production costs

have remained constant, advertising costs on average
have remained constant, distribution costs have
increased signicantly.

The products in the premium category carry a higher

price and have slightly higher margins. Competitors
have maintained their prices during the recent loss in
market share.

Both products are sold throughout the United States. In

15 states, where alcohol is sold in small private owned
supermarkets and liquor stores, shelf space is very
expensive and trade promotions are vital. These stores
are also becoming less and less happy to hold inventory
which is driving up distribution costs as more deliveries

There are three other main competitors in the specialty

cheese market. Your client has a 40% market share,
the other three share equally the rest of the market. The
overall market for specialty cheeses is growing. The

are needed.
In the other 35 states, liquor is only sold through state
regulated liquor stores. In these states, distribution
costs are much lower. Advertising of alcohol is much
more tightly regulated, and as such, advertising
spending is lower.

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competition sells its cheeses to the same channels that

your client does.
Research on customer buying habits has shown that
while the typical prole of a premium specialty cheese
customer has not changed, customers feedback was
that there was a good deal of variability in the quality of
product produced by your client. Sometimes the product
was better than competitors, other times not. This was
causing customers to change to competitor brands.

Example 3: Investment decision

A ground coffee company has seven manufacturing
plants in the Midwest. These plants service the whole
of the United States. Their plant in Kentucky is in need
of refurbishing. Which of the following is the best option
for this plant?
1.
2.
3.
4.

Refurbish the existing plant

Build a larger plant at the current location
Build a similar size plant at a new location
Build a larger plant at a new location

Hint:
The two key issues to consider are the size of the plant
and the location of the plant. You should analyze them
separately

Example 4: Expansion / Market Entry

A major airline is deciding whether it should add an
additional route from Paris to Chicago. How should the
airline go about analyzing whether the additional route
would be a good idea?
Hint:
Break the problem down into revenue opportunities and
expected operating costs.

Example 5: Manufacturing - Cost advantage

A plastic cup manufacturer has advanced a new
technique to improve its manufacturing process. As a
result of this, the manufacturing cost has been reduced
from $0.75 to $0.65. How can the manufacturer best
exploit its cost advantage?
Additional Information:
The manufacturer is the market leader with a
30% market share and supplies directly to major
supermarkets and to ofces. The number two player
in the market has a 20% market share. The rest of the
market is made up of lots of smaller players.

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Hint:
Initially, the manufacturer can either choose to drop its
price or benet from additional prots.

Example 6: Acquisition opportunity

You have been asked to assist a manufacturer of steel
rods to help them decide whether to acquire a small
local rm. What factors should be considered and
would you recommend the acquisition?
Additional Information:
Your clients margins are 10%. The target rm is
protable with margins of 5%. According to company
management, your clients superior prot margins are
down to economies of scale and a stable labor force.
Both companies compete in the same geographical
region, the North Eastern US. The targets customers are
typically local construction rms. Your clients customers
are typically large commercial construction companies.
Research shows that demand for local housing is
growing but that commercial ofce market is slowing
down. The smaller rm has many strong relationships
within the local community.

Example 7: Strategic Outlook

Your client is the largest North American producer of
plastic packaging for fruit and vegetables, with a 75%
share of the market. You have been asked to assess
the strategic outlook for the company. How would you
attempt to assess future prospects for this client and
what recommendations might you make?
Additional Information:
Your client had 100% of the market until 18 months
ago. A local upstart company appeared in the South
East region of the US has taken nearly all of that market.
This company bought new technology from England
which has made this upstarts factory highly efcient. As
a result they have been able to undercut you on price.

Your production costs are as follows. 25% for PE, a

commodity plastic chemical. 30% manufacturing costs
including allocated xed costs and labor and energy.
Distribution and storage costs 15%. Marketing and
corporate overheads cost 10%. Your margins are 20%.
The clients factory is 25 years old and it continues to
use the same technology that it used 25 years ago.

Example 8: Market Entry

Joes Pizza has decided to enter the home pizza
delivery business in London. The market for home
delivery is currently dominated by Arthurs Pizza. Joe,
the owner of Joes Pizza has asked your consulting rm
to help his company analyze issues that will determine
its likelihood of success in the London Pizza market.
How would you analyze the pizza delivery market?
Hints:
You may want to estimate of the size of the London
home pizza delivery market. This could be obtained by
knowing the population of London (about 7 million) and
making some assumptions about pizza consumption.
You may also want to know information about Arthurs
Pizza such as its sales, total number of stores, and its
market share. If there are any market segments targeted
and served by Arthurs this would also be good to know.
What types of product do they offer; how much do they
charge; what is the cost structure of their business and
what products are most protable.

Example 9: Losing market share

A large soft drinks company has been losing market
share over the past few years, from a high of 25% to
23%. However, prot margins have been growing. What
could be causing this?
Additional Information:
The size of the soft drinks market has grown from
$70bn to $80bn over the last two years. The company
has not added or discontinued any products over the
past two years.

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The costs of production (as a % of selling price) have

changed as follows:
2005

2003

Sugar

18%

16%

Water

10%

10%

Manufacturing costs

25%

25%

5%

6%

19%

21%

7%

9%

16%

13%

Distribution
Marketing
Sales Force
Prot before tax

The products are mostly sold through supermarkets and

convenience stores. The two largest competitors both
feature a much broader line of soft drinks and together
have 50% of the market.
The sales force was cut to reduce costs although the
same number of supermarkets and stores are still
covered by the 2005 sales force.

Example 10: Technological Breakthrough

A small R&D lab on a south pacic island has developed
a super durable ink which means its can produce pens
that never run out of ink. The lab is now in a position to
license the product to a pen manufacturer. What will be
the effect on the global pen industry?
Additional Information:
The pen industry is dominated by three multinational
players. The three companies all sell similar products for
about the same price out of the same types of stores.
Around the world, there are several small regional
players a few high-end manufacturers. There have been
no major innovations in pens within the last 10 years.
Hints:
Think how the new technology may enter the industry.
Either one of the main players obtains the technology
or all the players obtain some version of this technology.

Example 11: Declining performance

Your client manufactures specialized metal shelves out
of one plant on the West Coast and one plant on the
East Coast. Prots have declined by 20% over the past
two years although revenues have remained relatively
at. What may be causing this decline and what could
you do to help reverse this trend?
Additional Information:
The companys sales are split as follows: 50%
to supermarkets, 25% to ofces and 25% to the
pharmaceutical industry. The supermarket and ofce
shelve divisions are located on the East Coast, the
pharmaceutical division on the West Coast.
Revenues are up 10% for the ofce and
pharmaceuticals divisions but prots are down 10%.
For the supermarkets division, revenues are down 10%
and prots are down 30%.
Labor is the major cost of production for these metal
shelves. The East Coast plant is unionized, the West
Coast plant is not.
Hint:
A protability analysis may make sense looking at
revenues and costs. On the cost side, think about what
are xed costs and what are variable costs.

Example 12: Investment decision

You have been hired by the number one Spanish
producer of bricks. Your client currently has a 40%
market share and believes it could have more. It
currently is running at 100% capacity at its one plant,
located just outside Madrid. You have been hired by the
head of operations to help him decide whether to add
capacity to the current plant or build another plant.

The current plant is unionized and additional shifts

are not possible. Raw materials are purchased from a
government owned company at prices which are set by
a yearly contract.
The cost structure for brick production is as follows:
Raw materials

30%

Labor and other xed costs

15%

Distribution

25%

Sales & overhead

15%

Pre tax prot

15%

Example 13: Declining Sales

You client manufactures AM/FM radios. You have been
hired to understand why their sales have declined
signicantly over the last year. You have been asked
to gure out why the decline has happened and make
some recommendations as to what to do about it.
Additional Information:
Your client used to have a steady 35% market share,
the second largest in the industry. It now has a 45%
market share. AM/FM radios are now a mature market.
Your client manufactures a full range of AM/FM radios
and is employing the most up to date technologies.
Over the last year, your client has been losing sales
reps but loyal sales reps claim that their sales are at
record highs.
Traditionally, your client targeted two customer groups,
under 30s and over 50s. In the last year, sales have
fallen the most among the clients younger customers.
The rm has lost several major retail clients due to
retailers inability to sell your rms products.

Additional Information:
The price of bricks is set by market prices in Spain.
Land is available to expand the current plant and there
is also suitable land available near Mlaga on the south
coast of Spain, about 300 miles away.

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Example 14: Declining protability

Your client produces and sells a selection of mid-level
womens clothing lines in several European countries.
The companys brands are well established in their
markets. The clothes produced are similar in terms
of the raw materials required and production
processes used.
Performance over the last 10 years has been good
although prots have been shrinking over the last two
years. The CEO is thinking about changing her strategy
and is looking for your advice about what she should do.
Additional Information:
The mid-level womens clothes industry is made up of
many small and medium sized companies and a few
large companies who own a portfolio of brands. Your
client has a manufacturing plant in each of the countries
it sells in and transportation costs are low.

Example 15: Low protability

Your client is a leading producer of breakfast cereals.
Originally, the company started as a single product
line but has expanded its sales by adding additional
products. The production process can be simplied
as manufacturing and packaging. Management has
hired you as they are concerned that although sales
are growing, prots are not increasing at the same rate.
What advice would you give to your client?
Additional Information:
Costs: Raw material prices have fallen in recent years
but are expected to rise again in the near future. Labor
and xed capital has increased per unit more than
proportionally over the last 10 years.
Revenues: The number of trade (private label) brands
has doubled over the past ve years. Retailers are
increasingly demanding large introductory discounts for
new products. Your client has had a high failure rate for
new products.

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10

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