Case Interviews

A Group 5 Presentation
Agenda
 Case based Interviews

3 step process
ØPresentation of case by interviewer

ØExploring the underlying causes of the problem .

ØSuggesting recommendations to remedy the problem.

ØScenario based problem solving - real business situations

ØUsed majorly by strategy consulting firms.

 What do they assess?

ØAnalytical thought process

ØBusiness insight/judgment

ØQuantitative skills

ØCreativity/inquisitiveness

ØDecision making ability

ØCommunication skills

ØResponse to pressure

ØResponse to lack of information

Modes of presenting the
problem
Types of Cases
 Guesstimates / Market
Sizing
The interviewer asks you to estimate a value using
common-sense assumptions.

E.g.
• Estimate the number of gas stations in the US.
• How much should our client pay for the Prudential Building?
• How many golf balls are made in the US each year?
Market Sizing
 Guestimation Exercise

• Number of golfers in the US

v 250 million people in the US, 20% of
population plays golf
~ 50 million
people play golf
• Number of balls they use per
round in the US
v 2 to 3 balls per round ~ 2 to 3 balls
• Number of rounds they play per per round
year
v Average of 10 rounds per year ~ 10 rounds per
year

~ 1.25 billion golf

balls
 Brain Teasers
Interviewer asks some sort of brainteasers or bizarre questions and sits back
silently. They challenge a candidate's ability to think creatively.

E.g.
• Why are manhole covers round?
• Above is the graph of the rate at which water is flowing
into a cylinder. Draw a graph of the volume of water in the cylinder.

The Approach
Be creative, and think (and talk) through why.
Cover multiple reasons, but pick the most likely reason at the end
 Business Problem

ØMost common form of case

ØSimulate the thinking of a consultant.
 Structured Problem Solving
You are a consultant for a German luxury car manufacturer interested in

entering the sports utility vehicle (SUV) market after noticing the market

has grown dramatically worldwide in the past two years. The client

currently has no experience with manufacturing these types of vehicles.

How would you advise the CEO about what his company should do?
 Decomposing the case
problem
Business Issues Example

What impact will the client’s entry have on sales and pricing
Profitability of SUVs?

Should your client invest funds in developing a new vehicle?

Should the client invest in the infrastructure necessary to
Investment
make SUVs? Are there additional costs with training the line
staff to make these vehicles?
Does the client currently posses sales channels and
infrastructure adequate to compete with incumbents? What
Business Operations
are the impact on the organization of establishing this new
line?

How much market share would the client stand to gain if it

enters the market? What competitive response can it expect
Market Impacts
from incumbents? Is there another way to enter the market
without alerting the incumbents?
 Stating Hypothesis of the case
Problem
Framework Hypothesis
The client’s reputation for high quality in luxury vehicles will
continue to be a competitive advantage; therefore, the client
SWOT Analysis should leverage their brand image. The current fuel crisis may
pose a threat to the SUV market, thus fuel efficiency would be
key
There is little position in the high-end market for SUVs;
therefore the client should consider creating a lower-end model
Kotler’s Four P’s
for every day users; pricing would have to be amenable to the
price-sensitive consumer

The SUV market is growing slowly and the client’s

BCG’s Growth Share Matrix
current position will support a new line of vehicles

Incumbents will vigorously defend their market share –

Porter’s Five Forces additional analysis is required; significant investment to
modify the factory will be required to make SUVs
Testing the hypothesis of case
 Summarizing the case
findings
Investing in the necessary infrastructure will not be
profitable

ØAreas for further examination

– Market based studies should be conducted to determine the impact of
brand promotion and advertising on sales and customer retention
ØRecommendation
– The client should enter the market, but the client should leverage its
key strength - its brand - to attract consumers
– Further analysis will be required to determine the most effective
method for branding
– It may also be worthwhile to undertake scenario planning
 Eleven Things To
Remember
1. Practice
2. Take notes as needed
3. Confirm, clarify, and question
4. Find facts
5. Utilize the tools you know
6. Find a framework and stick with it
7. Focus first, broaden later
8. Don’t jump to an answer; explain how you arrived at your conclusion
9. There’s no right answer (usually)
10. Don’t Circle
11. Don’t forget about your conclusion
Thank You !!!
Presented by:
Abhinav Saraf 08FN-001
Abhishek Anand 08FN-002
Chandan Durgia 08FN-029
Deval Valia 08FN-032
Karan Aggarwal 08FN-043
Mehul Sangoi 08FN-049
Appendix - Frameworks
Declining Profits
 Increase Profitability

Can we explore economies of scope with entry into adjacent industry?

Increase capacity
Customer Turnover
Competitive Response

• Given the above, is it worth making a competitive response?

• How will the competition react?
• Applying game theory or PARTS analysis may help.
New Product Introduction
International Expansion
Investment Decision
Company Acquisition
Hostile Takeover Defense
Return on Invested capital (RoIC)
Minto Pyramid Framework
Where to use which ?