STREETOFWALLS ARTICLES TRAINING

Update: Find a job you love at  Vettery

CONSULTING BUSINESS SITUATION CASES

of Consulting Case Study Training

Now that we have been through the frameworks/analytical methods frequently used to solve Case Study questions, as
well as a discussion of the main categories of Case Study questions that are asked, it’s time to practice solving Cases.

The six Street of Walls Business Situation Case Study examples provided in this chapter are outlined in a manner that

would reflect a real case. In many other guides, the Cases are presented in a much cleaner way, often applying specific
frameworks with little explanation of or exploration into the thought process behind solving them. Often, these guides
present all of the information up front, whereas in a real Case Study interview, the candidate will often have to ask

follow-up questions to get the needed information.  In short, real Case Study interviews at firms are never
straightforward, and interaction with the interviewer generally involves jumping around various business concepts but
tying together your responses in a thoughtful, articulate, concise, and accurate manner.

When you read through these Cases, take time to pause and think about what your next steps would be. Which
questions would you ask? How would you process the response? At what point would you begin performing analysis?
At what point would you begin offering recommendations or hypotheses? Go through the guide slowly and

deliberately, pausing to see what you’d do next. Then compare your thoughts with the following lines. When you’re
done, see where you could have improved your thought process and what you would have done differently now that
you know the ending of the Case. Practice this method repeatedly, and you should find that your performance on these
Cases and your confidence begin to improve dramatically.

Also be aware that many Cases will not have a clear­cut answer. The important thing in such Cases will be your ability

to articulate your understanding of the key issues, make recommendations/form perspectives that are appropriate, and
give guidance for what additional information and analytics you would like to perform to assist in making the decision

clearer.

Here are a few additional tips before you get started:

Before diving in to the example Case Studies, be sure you have reviewed our discussions on

frameworks/analytics for Consulting Case Studies as well as Consulting Case Study Types from previous
chapters. The concepts and structures outlined in these chapters will be a useful reference tool as you practice

cases. We see it as a mini, strategy-focused, MBA in only about 20

When you read these Business Situation Cases and the suggested approach for responding to them, you will see
that most are common sense—but that this common sense develops over time and with practice, reaching ever-
    
 greater levels of understanding and sophistication.
This is a valuable skill for you to develop not only for the Case Studies, but also for your Consulting career. Being

able to identify the key issues and structure your response to a business problem well is important for the Case

Studies, but it is just as important in the daily life of a Consultant.

It is worth noting that the business concepts and situations highlighted in these examples do overlap, but most

real-world business situations (and also most Case Study interview questions) will also include a range of

business issues to address, even if there is only one core problem being asked about. For example, a company
bringing a new product to market will require market size analysis, but will also a competitor analysis and

industry landscape, as well as a good understanding of the customer segments.

As you practice Cases, you should rehearse responding out loud, not just in your head. You will find that you
begin to speak more articulately and competently about business, regardless of whether you secure a position at

a Consulting firm. This will be valuable in your career no matter what you do!

Note: by convention, Case descriptions, interviewee questions, and interviewee responses are written in normal text,
while interviewer responses to interviewee questions are written in italic text.

OK, let’s get to it!

SOW Business Case Example #1

TO CO-WORK OR NOT TO CO-WORK: NEW YORK CITY

There is an increasing trend of co-working in New York City, fueled partly by the technology boom. Co-working spaces
are communal work places, which freelancers and small companies can use as workspaces, while sharing the space
with any number of other freelancers and/or small companies. As part of the arrangement, many resources, such as

office equipment and bathroom and kitchen facilities, are also shared.

Fred Wilson of Union Square Ventures explains the trend well:

“The  main  benefits  of  this  kind  of  setup  are  camaraderie  (small  start­ups  can  be  lonely),  knowledge­

sharing,  high  energy,  culture,  and  cost  sharing.  I  have  heard  many  stories  of  software  developers
walking  to  the  other  side  of  the  office  to  talk  to  software  developers  working  for  another  company  to
talk  about  a  thorny  tech  issue.  That  same  thing  can  happen  in  finance,  legal,  business  development,

marketing,  product  management,  really  all  parts  of  the  business.  You  can  get  some  of  the  benefits  of
scale without being at scale.”

Matt and Tony are two real estate entrepreneurs who want to capitalize on this trend, and start New Work Labs, a co-

working space that fits 75 people. They are in talks with two office buildings to lease out the space. The first one is a
building near the young and trendy Union Square area, which will be $40 per square feet per annum. The second
    
building is in the SOHO/Chinatown area, in an old loft surrounded by dumpling shops at $30 per square feet per
annum.

Which building should they select?

DATA LIST AND QUESTIONS

1. How much space is needed for 75 people?

a. Normal office allocates 200­225 sq. ft. per employee. However, co­working spaces in New York can be
as dense as 100 sq. ft. per person.

2. What is the total investment required to set up the space?

a. Plain vanilla build­out and retrofitting will cost $50 per square foot.

b. Furnishings will cost $20 per square foot.
c. Assume total build­out for Chinatown space is 30% cheaper than Union Sq.

3. What are the utilities and maintenance costs (this includes everything, e.g. electricity, wifi, water, heat, repairs
to furniture, security, etc.)?

a. $10,000 per month.

4. Do they need to hire someone?

a. Yes, an office manager at $70,000 per annum total compensation.

5. What will be the rental for these desks?

a. $300 per month per person for monthly usage.

b. $30 per day for daily usage.

c. Assume that 1/3rd of total occupancy is for daily desks.
d. No weekend hours.

e. For simplicity, assume flat rates without any deals.

6. What is the occupancy rate?

a. Co­working spaces have been found to quickly reach 70% occupancy rate on average.
b. The  Union  Sq.  location  will  have  a  higher  occupancy  (assume  80%).  Chinatown  will  see  average

occupancy. (Note: Bonus points for assuming that Union Square might see higher occupancy rates.)

7. Are there any additional revenue opportunities?

a. Co­working spaces double up as event spots during evening hours. Average rate for an event is $5,000.
    
 b. To  avoid  disrupting  the  regulars  too  much,  a  space  holds  no  more  than  6  events  on  average  every

month. (Note: Bonus points for asking this question. Also, bonus points for considering that Chinatown
may have a harder time getting to 6 events per month.)

8. How long do Matt and Tony want to do this?

a. They would ideally exit in less than 10 years. (Note: Bonus points for asking this question.)

KEY ITEMS TESTED IN CASE

Calculate the build-out costs.

Calculate the operating costs.

Generated revenues must exceed operating costs. This tests a candidate’s creativity to maximize revenues, and
allow him/her to explore additional avenues. Take account of consideration for the community, which may

mean letting go of some money generating opportunities.

Which building offers a faster payout? This must be seen in light of earnings run rate, therefore also see which
building will offer a better exit opportunity in 5-10 years.

SAMPLE CALCULATION

    
(Note that during the case, you would need to do this on paper and estimate to some degree. You may even want to

concentrate mostly on the differences between the two offices to gain a perspective on which facility to rent.)

TAKEAWAYS
The Union Square office takes longer to repay the initial investment but generates more income n an ongoing

basis. Ignoring discounting, the Union Square office offers more income potential over a 10-year time frame.
The decision is a close one, however, and is largely driven by assumptions about the relative occupancy rates and

the number of events per month.

If, in fact, the number of events per month is the same in each office, then the Chinatown facility dominates the
Union Square facility (less investment and more cash flow per month).

SOW Business Case Example #2
    
TELECOM COMPANY: GROWTH OPPORTUNITIES

Assume that the year is 2006, and the largest Indian Fixed Line Telecom Co., Telca, which has global ambitions, wants
to double its Revenue over the next 5 years. To meet this aggressive target, its strategy team scanned the universe for

acquisition targets and identified two options:

SeaLink, the largest undersea cable provider on the Trans-Atlantic route

Afmob, the largest mobile telephone service provider in Africa

You have been hired as a Consultant to help Telca pick the most ideal option—the company cannot acquire both. The
following Exhibits are available. How would you go about this project?

EXHIBITS

Exhibit E: Undersea cable map

    
INITIAL RESPONSE/KEY ISSUES

The key is to quickly analyze and realize from the data that the two choices present completely different growth
strategies: expand in a mature, crowded market closer to the core strength of the Company (SeaLink) or in a rapidly-

growing market where the Company has limited experience (Afmob). Either strategy can be justified.

A sample thought process is outlined below, including some questions for the interviewer:

EXHIBIT A QUESTIONS AND INFERENCES

Enterprise fixed line and wholesale voice/data are the primary business segments for Telca.
Consumer mobile is growing fast, but is still a small share of the total
Q: Is wholesale data and voice for Telca carried on the same international cable?

A: Yes—the same is true for SeaLink.

EXHIBIT B QUESTIONS AND INFERENCES

Primary markets for Telca are domestic (India), Europe, and North America.
Limited presence in Africa and the rest of the world
Q: What does a region’s revenue mean for wholesale data/voice—particularly with regard to international calls?

A: This is the location where the sales originated.

EXHIBIT C QUESTIONS AND INFERENCES

Q: What does the “% Capacity in use” figure represent?

A:  Undersea  cables  have  more  capacity  than  what  is  currently  being  used.  This  is  similar  to  your

computer’s hard disk. The figure represents the total for voice and data combined.
Q: Telca’s shares are listed in terms of the proportion of installed capacity; what about its shares for “% Capacity
in use”?

A: Assume a split equal to that of the whole market.
    
 Telca has a dominant position in Africa–Asia, South Asia–East Asia, and East Asia–North America (Trans-
Pacific) routes (assume probable #1 position for all). It has marginal status in North America–Europe
(Transatlantic) and Europe-Africa.
Sealink’s acquisition will make Telca the #1 player in the wholesale data/voice business in each of the major

routes.
There is significant unutilized capacity in Transatlantic. This means that even if a player has dominant market
share, it cannot control pricing because other players will simply light up additional unused capacity.

EXHIBIT D QUESTIONS AND INFERENCES

The African mobile market is exploding, i.e., growing at 14% annually.

Afmob is growing even faster, i.e., it is gaining market share and is already the dominant player.
The overall market is relatively small at the present time.

EXHIBIT E QUESTIONS AND INFERENCES

Illustrates Exhibit C data visually while also giving visual inferences to the magnitude of each route’s relative

market size/capacity.

TAKEAWAYS
SeaLink’s acquisition strengthens Telca in its core business.
However, the core business is slow growing and facing a capacity glut.

Mobile is not the core business for Telca but is the fastest growing market.
Telca has limited experience in running a mobile business, and no experience in running it in a foreign
environment.

Afmob’s acquisition will give Telca a foothold in the fastest growing high potential market.
In your response, you should take a position after carefully reviewing all of the evidence. There is reason to
believe that either acquisition could be better. Afmob provides entry into a new, fast-growing market in which

Telca has limited exposure, but the market is still small and the move has a number of strategic hurdles to face.
Meanwhile, SeaLink is a leading player in Telca’s core business, serving routes in which Telca has marginal-
player status. This market is not growing rapidly, and there may be pricing pressure due to the substantial

unused capacity.
A good follow-up to your conclusion would be to highlight areas of research to help make a better informed
decision, such as:

Profitability of each business

Quality of management at each business
More detail on Competitor landscape, including pricing trends and market positioning

Relative cost to acquire each business

Technological or regulatory risks (and in the case of Afmob, potential political risks)
Current Revenue for SeaLink
    
 Remember, however, that the key goal of this case was Revenue growth, not Profit. One could reasonably infer
from the Exhibits that, if pricing per volume is similar at SeaLink to Telca’s pricing, that SeaLink is likely to have

much more current revenue than Afmob. In that case, an acquisition of SeaLink immediately gets Telca much
closer to its stated goal.

SOW Business Case Example #3

MIND THAT HEAT: STICKY LABELS

Sticky Inc. manufactures heat-shrink labels. You might recall noticing these labels on Arizona Tea or 5 Hour Energy

bottles–they are completely wrapped from head to toe and have 360 degree graphics printed on them. This is achieved
through label sleeves that shrink by applying heat to conform to the shape of the bottle. This makes handling and
storage of the labels tricky. Label materials can start shrinking at temperatures over 90 degrees Fahrenheit.

Sticky Inc. is struggling to decide whether to manufacture these labels in China or the U.S. and is soliciting your
assistance to help the company make an informed decision.

DATA LIST AND QUESTIONS

1. What is the price of these labels?

a. 30 cents per Thousand Square Inches (MSI) (Note: M is often used as a symbol representing 1,000).

2. Where are the customers located?

a. 100% in the United States.

3. What does it cost to manufacture them?

a. 16 cents per MSI in China.

b. 20 cents per MSI in USA.

4. Who pays for the transportation cost from warehouse to customer?

a. Sticky Inc. (technically, this cost is baked in the price, but Sticky Inc. has limited ability to pass on any
increase in this cost because the competition might not follow).

5. What is the transportation cost?

a. 3  cents  per  MSI  when  being  transported  from  China  (assume  the  warehouse  cost  in  the  U.S.  is  baked
into the manufacturing cost).

b. 2 cents per MSI when transported from within the U.S.

6. Are the warehouses temperature controlled?     

 a. Yes. All the costs are baked into the manufacturing cost.

7. Is the transportation temperature controlled?

a. No. Transportation costs do not account for it. (Note: This is the most important question. Bonus points
for asking it in some variation, and serious negative points for not identifying it.)

8. How much extra does it cost to transport in reefer (refrigerated) containers?

a. Transportation cost doubles.

9. When is refrigerated shipping required?

a. During  the  summer  is  an  obvious  assumption.  Assume  April  to  September,  i.e.,  6  months  for  US
manufacturing. (Note: Bonus points for considering using temperature control year­round on shipping
in China, as the climate tends to be fairly hot there year­round.)

10. What are the other costs (e.g. sales, marketing, G&A, etc.)?

a. 6 cents per MSI for both options.

SAMPLE CALCULATION

(Note that during the case, you would need to do this on paper, although you should be able to calculate these numbers
exactly. You may even want to concentrate mostly on the differences between the two manufacturing and shipping
plans, and use these differences to estimate the cost savings of one option vs. the other. However, doing so will make it

more difficult to perform sensitivity analysis around the assumptions, and to calculate the exact profit amount for each
scenario.)

TAKEAWAYS
Overall, manufacturing is 4¢ cheaper in China but shipping is at least 1¢ more, ignoring reefer shipping.
Assuming half of U.S. shipping and all of China shipping requires refrigeration, this adds 1¢ to U.S. shipping

costs per MSI and adds 3¢ to China shipping costs per MSI.     
 At first glance, our calculations indicate that manufacturing in China is probably cheaper by a fairly small
margin (saving 1¢ relative to total manufacturing + shipping costs in the U.S. of 23¢).

Note, however, that we have omitted an important consideration: items like these run a serious risk of inviting
high duties and/or anti-dumping fees in U.S.
Additionally, the company may receive some backlash for shipping manufacturing operations to China. This

consideration is hard to quantify, but may be enough of a factor alone to sway the decision.
The best candidates will evaluate the answer in light of these considerations.

SOW Business Case Example #4

FOOD FOR CRUISE: MIAMI

FoodCruise Inc. runs a four-day/four-night cruise out of Miami. The cruise line has always prided itself upon the

quality of the dining and the experience on board. Traditionally, cruise lines had a single dining hall with a pre-set
menu, with fixed seating at a fixed time twice per day for each of the travelers, who were expected to dress in a formal

manner. FoodCruise currently operates its on-ship meals in this fashion.

FoodCruise realizes that this practice is not appropriate for the free-spirited nature of many individuals who are
seeking an exciting yet relaxing cruise experience. The Company is contemplating the elimination of the dining hall to

introduce 10 restaurants, each serving a different cuisine. Restaurants will serve an à la carte menu, and each

passenger will be given a voucher of $200 to be utilized over 8 meals. Any purchase above this amount will be charged.
Industry experts and competitors are keenly watching this innovation.

The CEO of FoodCruise hires you and asks, “Is this a wise move for our company?”

DATA LIST AND QUESTIONS

Overall, the key is to figure out the additional cost for FoodCruise to operate 10 separate restaurants, relative to its

current dining setup, and determine whether it will help the Company win enough incremental customers to justify the

cost.

1. How many passengers are typically on board a cruise ship?

a. The capacity is 500.
b. Occupancy  has  suffered  due  to  the  large  number  of  cruise  lines  and  recent  economic  weakness,  so

assume average occupancy of around 60%.

2. What price does an average traveler pay?

a. The price is $1,000 for the standard four­day/ four­night cruise.
    
 3. How many trips does one ship make in a year?

a. 20 is the company’s average.

4. What was the cost of food per passenger for the dining hall?

a. $100 is the typical cost per passenger for the whole trip.

5. What was the profit per ticket?

a. 10% of revenue, or $100 per customer, is the company’s current profit margin.

6. Does FoodCruise need more manpower to operate 10 restaurants instead of 1 dining hall?

a. Yes, it needs 10 more staff members; the average fully­loaded annual compensation per staff member is
$72,000. You can ignore any upfront costs associated with building out the restaurants on the ships.

7. For the restaurants, what is the expected bill per passenger per meal?

a. Average across each restaurant is expected to be $40.

b. For simplicity, assume consistency across lunch and dinner.

8. What about tipping?

a. In  both  the  options,  no  individual  tipping  is  encouraged.  A  lump  sum  tip  is  expected  at  the  end  of  the

cruise, which is distributed to the entire crew. No increase is expected in the total tip amount.

9. Is the food cost expected to increase under this proposed plan?

a. Yes,  assume  20%  more  to  account  for  the  additional  pre­prepared  food  required  for  individual
restaurants.  Because  there  are  more  dining  options  that  are  varied,  there  will  be  more  food  wastage.

(Note: Bonus points for asking this question.)

10. What is the additional CapEx (Capital Expenditures) required to set up these restaurants?

a. Again, we are ignoring any upfront costs for the build­out of the restaurants, so you can ignore CapEx

for this analysis.  (Note:  Even  though  the  answer  was  “ignore,”  add  bonus  points  for  remembering  to
think of this, because usually CapEx considerations will apply.)

SAMPLE CALCULATIONS

    
(Note that during the case, you would need to do this on paper, although you should be able to calculate these numbers
exactly. You may even want to organize your work differently—note, for example, that the additional manpower is fixed

per trip. Therefore, each passenger is worth ($120 – $20) = $100 of incremental profit. Since the incremental fixed

cost per trip, from increased staff size, is $36,000, this means we need 360 passengers to breakeven, or 72% occupancy
rate.)

TAKEAWAYS
As per sample calculations, a 12% increase in occupancy is required to offset the additional operating costs,

given that all of the assumptions are correct.

Try to note which assumptions are the most fragile. For example we are assuming an average food spend of $40
per meal by customers. If this drops to $35, then the marginal value of each customer under the new plan falls

from $100 to $60. In that case, even at 100% capacity the plan is a money-loser.

If, by contrast, the actual spend averages $45 per meal, then the marginal value of each customer is $140, and
now the break-even number of customers falls to 257 (51.4% capacity). In this scenario, it’s likely that the plan is

a winner.

A strong candidate will weigh the probability of winning new customers under the baseline assumptions ($40
per meal) vs. the potential competitive response.

Whether there is a “first mover advantage” that will sustain the customer win is a smart topic to discuss,

as first move does not necessarily lock in customers for the future. If, for example, competitors
immediately copy FoodCruise’s plan, this will almost certainly negate FoodCruise’s ability to maintain

higher-than-industry occupancy rates.

Given the low occupancy rates across the industry, if competitors implement this plan, it may also lead to
a “voucher war” in which there is a push toward higher and higher voucher values needed to attract

    
 customers. Hence FoodCruise may start out giving $200 vouchers, but may end up feeling pressure to
increase this to $225, $250, etc. in order to attract customers, depending on what the competition does.

Also notice that we’ve ignored initial Capital Expenditure requirements entirely. In reality, it is very unlikely that

these costs can be ignored. Furthermore, these expenditures will take time to implement.

SOW Business Case Example #5

CHIP THE KART

Disclaimer: This is a fictitious case, which only uses a real life premise. All data is hypothetical, and has no relation

to actual/official data for Amazon Inc. or ChipKart.

Amazon Inc. has been considering an India market entry for some time, although it has been skeptical of the adoption

of credit cards and the migration to online shopping in India. Meanwhile, a local start-up company, ChipKart, has
emerged, and created a strong, well-reputed Indian e-shopping market. It overcame the reluctance to use credit cards

online through the simple innovation of accepting Cash on Delivery (COD) for its merchandise. ChipKart trained the

delivery & logistics team to become a part of the sales process.

This innovation has awoken Jeff Bezos, CEO of Amazon Inc., to the possibility of market potential in India. However,

leery of engaging in an early, head-on battle with ChipKart, Mr. Bezos decided that he would like to know which are the
right customer segments and product segments to target for initial entry into the India market without arousing a

competitive battle with ChipKart early on.

You have been hired as a Consultant to help Amazon make a decision on what direction to take. How will you go about

it?

EXHIBITS

    
    
INITIAL RESPONSE/KEY ISSUES

Looking at the Exhibits, you can probably already note that this is a complicated business situation. The key is to
recognize that there are different purchasing trends among the different demographic groups, and that those

differences have significant strategic implications.

A sample thought process is outlined below, including some questions for the interviewer (or just to ponder as your

review the information):

EXHIBITS A & B QUESTIONS AND INFERENCES

Note that 22-32 and 32-42 age customer segments have good credit card penetration. However, the younger end

of the spectrum appears to be lower-price focused.

EXHIBIT C QUESTIONS AND INFERENCES

Something peculiar is going on with ChipKart. Against conventional wisdom, the 22-32 age group seems to be

purchasing a larger amount than would be expected, by value.

Note that both ChipKart and the overall market skew heavily toward older segments, when transactions are

measured by value rather than quantity. In both cases, this suggests that the older population is buying more

items per order or more expensive items.

EXHIBIT D QUESTIONS AND INFERENCES

It would have been useful to have this data by value, but we can gain a sense of Revenue by category by
multiplying the number of transactions by the average price. According to this metric, the highest-revenue

categories are:

1. Mobiles, Camera & Computers

2. Home Entertainment

3. Clothing, Shoes & Jewelry

This could help confirm our suspicion. The products that the older segment could potentially buy are most likely

the higher-priced items.

EXHIBITS E, F & G QUESTIONS AND INFERENCES

    
 COD is prohibitive for smaller value items. Is this passed on to the consumer? Who buys the smaller value
items? (It may be difficult to incorporate the COD cost in the price of the item without losing the revenue to a

competitor, either online or in a physical retail store.)

TAKEAWAYS
It might be challenging to set up cash on delivery (COD) initially (Exhibit G). It requires finding, hiring, and

training a network of delivery personnel, and setting up oversight to ensure respectable quality control.
Cash on Delivery economics do not work for certain products (Exhibit D and Exhibit G), and these products

make up the lion’s share of the transactions in India. Relative to online bank and credit card transactions, COD

shipping loses money on shipments below 2,000 Rs. in value. (Above 2,000 Rs., the COD method is less
expensive, ignoring setup costs.)

Looking at demographics, one can deduce that older (42+) customer segments buy items more suitable for Cash

on Delivery (they are purchasing higher-value shipments on average, and are much less likely to own credit
cards).

A potential answer could be: Amazon should target younger segments with cheaper items, and place an

emphasis on high-volume purchasing. It should allow only bank and credit card transactions.
The data is ambiguous in some respects, however, and some of the conclusions we’ve drawn from it may be

misleading. Thus this Case probably has no definitive answer, and there are a range of qualitative and

quantitative issues that could be brought up from the Exhibits, as highlighted above. Such a case can lead into a
discussion about many topics not directly related to the specific Case.

SOW Business Case Example #6

NARNIA OR NEVERLAND

Axia Inc. is a communication equipment company based out of the Greater New York Area. It has been facing rising

Costs with limited ability to increase Revenue, and the company’s bottom line (Profit Margin) has suffered as a result.

The company just won a new large contract, however, and is seeking to supplement the existing software development
team at the company with a remote outsourced software engineering team from another company to help facilitate the

delivery of equipment mandated by this contract. The request is to hire a team of 150 engineers.

You have been hired as a Consultant by the senior management of Axia to determine the best outsourcing location. The

decision is between two front-running choices: Neverland and Narnia. While making a recommendation for the

outsourcing location, ignore the outliers. Assume that each country is representative of all firms in that country.

EXHIBITS

    
INITIAL RESPONSE/KEY ISSUES

The key to this case is to notice that there are plusses and minuses to each country; therefore, there are multiple factors

to take into account and there is likely to be no clear-cut best answer based on the information provided. Additionally,

the information provided is limited.

A sample thought process is outlined below, including some questions for the interviewer (or just to ponder as your

review the information):

EXHIBIT A: NUMBER OF SOFTWARE ENGINEERS GRADUATING EVERY YEAR

Neverland is a much smaller country, though software engineering seems equally popular among its respective

population (25% of annual graduates).

EXHIBIT B: NUMBER OF SOFTWARE COMPANIES

Narnia seems like a traditional powerhouse, with many large companies. Is a 150-member team too small for it?

EXHIBIT C: ENGLISH PROFICIENCY

Could Axia engineers face problems in communicating with the team in Neverland? Overall it has a much lower
English proficiency than Narnia (25% vs. 40%), although the majority of the younger population in both
    
 locations seems to be proficient in English.

Narnia has an edge here, but if hiring is to be done among younger workers, that edge is less clear-cut.

EXHIBIT D: CODING PRODUCTIVITY (LINES OF CODE WRITTEN PER DEVELOPER PER YEAR)

Neverland appears to have much strong software engineering talent. Much higher LOC scores and much fewer
bugs per LOC.

EXHIBIT E: AVERAGE SALARY PER SOFTWARE DEVELOPER (WITH 5 YEARS OF EXPERIENCE)

That’s a big cost difference. Is Neverland worth it?

TAKEAWAYS
There are not many calculations involved in this case. Therefore it is essential to highlight the major issues.
Narnia is a much bigger economy with far more firms of much larger size on average. (Since the

requirement is only 150 engineers, it is possible that Neverland firms will be more eager for the business

opportunity than Narnia firms.)

In spite of this, Neverland still has a similar concentration of software engineers.

Narnia has an edge in English proficiency, though it is too early to tell how important this factor will be—

particularly if younger engineers are selected.

Neverland has much more productive software engineers with a lower bug rate than Narnia, but also a

much higher cost per engineer. Neverland is slightly less expensive on a per-output basis ($2.22 per line

of code vs. $2.29 per line of code). Nevertheless, 2 software engineers from Narnia will produce about the
same amount of code as 1 software engineer from Neverland, at roughly the same cost—but with twice the

error rates!

Other considerations not mentioned in the Exhibits, but worth considering and potentially asking about, include
relative regulatory/technology/political advantages or disadvantages from working with either country. For

example, one country may have a much better trade relationship with the U.S.

Your answer could take many forms here. The key is to highlight the relative strengths of each location, and to
justify a choice with sound business judgment. As discussed repeatedly in the interview preparation sections, it

is most important that you are structured, thorough, and articulate in your thought process and

answer/recommendations.

Additional Resources

We hope that you enjoyed and learned a lot from these sample Cases, and encourage you to review them again as you

progress in your practice for Consulting Case Study interviews. We also recommend that you review the online cases

offered by each firm, and some additional sample cases that we have included below.   The more cases you do, the more
confident and comfortable you will become at taking on any Case put in front of you.

    
FIRM-SPECIFIC PRACTICE CASES
Bain Practice Case Studies (2 available)

BCG Practice Case Studies

Booz Interactive Sample Case Studies

Marakon Practice Case Studies

McKinsey Practice Case Studies

Oliver Wyman Practice Case Studies (2 available)

OTHER PRACTICE CASES

Ace the Case Sample Case Study Questions

Crack the Case System by David Ohrvall

INSEAD Consulting Club Handbook (see pp. 54-108 for a detailed walkthrough of 13 different example cases)

Additionally, if you are currently enrolled in an undergraduate or graduate program, your school may have a

Consulting Club. If so, this club should be able to provide you with additional practice Case Study questions.

←Consulting Case Study Types Consulting Guesstimate Cases→

Home News & Insights About Terms Privacy Contact

Copyright © 2013 Street of Walls. All Rights Reserved. All prices USD.