Performance Improvement
MBA Case Study
October 18, 2012
Agenda
► Case
study interviews
► Purpose
of case study
► Breaking
apart a case
► Role
of Interviewer
► Evaluating
Page 2
candidate’s response
2
Case study interviews
Page 3
Case Study Interview - Overview
►
A case interview presents a candidate with a business problem and asks
him/her to:
•
•
•
►
Analyze key issues
Identify and evaluate possible solutions
Provide interviewer with a logical hypothesis and recommendation
Case study interviews allow Interviewer to assess candidate’s:
•
•
•
•
•
Analytical skills
Problem solving skills
Communication skills (listening, verbal communication)
Understanding of the business
Ability to think creatively
►
Case interviews also give candidates a feel for the type of work we
perform for our clients
►
There is not necessarily a “right” answer
►
Candidate should be evaluated on their thought process and analytical
skills
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4
Breaking apart a case study interview
Candidate establishes
Framework
Case Introduction
• Case Background
Mar ket Size
Mar ket Shar e
VOLUME
Gr owth
• Problem Description
Com petitor s
Pr ice
Profits declined
in the past
5 years
Labor
CONTRIBUTION
MARGIN
Var iable Cost
Mater ials
Pr oduction
Equipm ent
FIXED
COST
Utilities
2
1
Case Development
Case Closure
• Key Issues
• Candidate should
follow framework
• Risks
• Identify Key Issues
• May ask additional
questions
Page 5
• Recommendations
4
3
5
Step 1: Case Introduction
► Interviewer
sets context and expectations
► Interviewer
gives candidate a hypothetical business situation and asks for
recommendation
► Give
candidate time to evaluate the information provided in the case
► Candidate
asks clarifying questions
► Interviewer
can give additional information to candidate (included in
Interviewer Copy)
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6
Step 2: Candidate establishes framework
►
Candidate should utilize a framework to address the issue and come up with a
hypothesis
►
There are many frameworks and tools candidates may use in their analysis:
•
Decision Trees
•
Supply/Demand
•
Cost/Benefit
•
Marginal Cost/Marginal Revenue
•
Fixed vs. Variable Cost
•
4C’s (Competition, Cost, Capabilities, Customers)
•
4P’s (Price, Place, Promotion, Product)
•
5C’s (Character, Capacity, Capital, Condition, Competitive Advantage)
•
SWOT Analysis
•
Market Segmentation and SPSG (Size, Profitability, Share, Growth)
•
Financial Analysis: Income Statement/Balance Sheet, Fixed/Variable Cost, Breakeven, CAPM,
WACC, NPV, Cost Drivers, Payback, IRR, ROI, etc
•
Graphs
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7
Step 3: Case Development
►
Candidate should follow their framework to ask questions or make assumptions
►
Identify Key Issues
►
Some cases may include handouts and attachments to provide candidates with
additional details about the case and help interviewers assess the candidate’s
ability to quickly hone in on relevant data
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Step 4: Case Closure
►
Candidate identifies key issues and provides recommendation
►
Interviewer should use probing questions to evaluate candidates choices (i.e.
“Why did you choose that method”, “What considerations did you take into
account”, etc.)
►
Interviewer asks wrap-up questions (why did you go with this approach, etc.)
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9
What should the candidate demonstrate during
the case interview?
Ability to summarize the business issue
Ø Candidate should take notes
Ø Candidate should utilize an analytical framework
Ø Candidate should walk the interviewer through the thought process
Think through the issues & assess potential solutions
Ø Follow the analytical framework or adjust as new facts are uncovered
Ø Provide a structured response
Ø Ask insightful, probing questions
Ø Actively listen to hints provided
Ø Walk through the logic when evaluating issues and possible solutions
Recommend strategy and implementation activities
Ø Gather enough information to formulate recommendations
Ø Summarize key points
Ø Respond within scope
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Common mistakes candidates make during a
case study interview
► Jumping
to recommendations w/o a thoughtful analysis
► Throwing
out marketing tactics w/o grounding them in the
situation/strategy
► Weak
► Not
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analysis/understanding of the situation
taking the interviewer through their thought process
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Case Study Evaluation:
Example of a “5” rated case interview
►
Candidate:
Ø
Asks thoughtful, insightful questions
Ø
Successfully synthesizes information from the case that is relevant
Ø
Presents ideas utilizing a framework or methodology (i.e. People,
Process, Technology)
Ø
Uses quantitative and qualitative data to support recommendations
Ø
Appears comfortable in the case interview setting
Ø
Demonstrates excellent interpersonal skills
Ø
Responds to the questions in the time frame allotted
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Utilizes the interviewer as a “Manager” on the job
Demonstrates professional presence throughout the interview
Case Study Evaluation:
Example of a “2” rated case interview
►
Candidate:
Ø
Does not ask clarification questions
Ø
Simply repeats the information in the case
Ø
Cannot sort through the relevant and irrelevant data
Ø
Does not utilize a framework for identifying issues and making
recommendations
Ø
Does not support recommendation with additional data or
assumptions
Ø
Exhibits lack of professional presence
Ø
Does not exhibit structured thinking or logical thought process
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Questions?
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Contact Information
Trebor Wright – Senior Manager Ernst & Young Advisory
(Performance Improvement – Finance)
Ø
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Trebor.Wright @EY.com