The Case Workshop Program
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by Leland Char, Wilson Kyi, Ben So, Dhwani Thapar, Jennie Zhou, Lance Ma, & Jorge Go
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Other Universities….
At 47 other top tier
US Universities
UCLA
Northwestern
Kellogg
Harvard
A proven method
for getting into a
diverse set of
consulting firms
Darthmouth
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Stanford
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Our Butts Were Getting Kicked
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Founded the USC Consulting Club
The USC Consulting Club (UCC) is a student-run organization at the University of Southern
California. The objectives of the consulting club are the following:
1
2
Immediate Goal: To provide its members with
access to the best resources and support to
obtain an internship or job in consulting.
Long Term Goal: To increase the visibility of USC
to companies within the consulting industry.
Admitted Members
General Events – External Relations Committee
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The Entire Value Chain
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What is Consulting?
• Examine the workings of various corporations and
improve their profitability
Why Consulting?
• Lucrative career field
• Always evolving - constantly test your creativity and
analysis in a range of challenges, locations, and peer
groups
• Relationships with senior executives of various industries
• Career choice that opens doors
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Why Consulting?
• Hones your creative, analytical, quantitative, teamwork
and communication skills
– Identify, evaluate, and implement solutions that make an
impact within an organization
– Applies problem-solving abilities
• Multiple industries exposure
• Dynamic Fast-paced work environment
• Travel the globe
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Background - Leland Char
• Masters in Petroleum Engineering
• Bachelors in Chemical Engineering, Concentration in Petroleum
Engineering
• Bachelors in Business Administration, Concentration in Finance
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Background - Wilson Kyi
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Bachelors in Industrial and Systems Engineering
Minor in Business Administration
Viterbi Study Abroad - Paris
I-Podia Global Innovation - Beijing
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Background – Wilson Kyi
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McKinsey - Partner Project
Market Share down 20%
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The Case Workshop – Agenda
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Health Insurance Industry
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Magna Health Case by McKinsey
Background Information
Our client is Magna Health, a health care company in the Midwest.
It both insures patients and provides health care services. Employers pay a fixed
premium to Magna for each of their employees in return for which Magna covers
all necessary health services of the employee (ranging from physician care, and
medications to hospitalization)
Magna currently has 300,000 patients enrolled in its plan. It has 300 salaried
physician employees who provide a broad range of services to patients in 6 centers.
These physicians represent a wide range of specialty areas, but not all areas. When
a patient needs medical treatment in a specialty area not covered by a Magna
physician, they are referred outside of the Magna network for care, and Magna
pays all referral costs on a fee-for-service basis. Magna doesn't own any hospitals
itself, instead contracting services from several local hospitals.
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Magna Health – Question 1
Over the past six months, Magna has been experiencing declining
profitability. Magna's CEO has retained McKinsev to help determine
what is causing the problem and how Magna might fix it.
How can Magna Health improve its financial situation?
Question 1
What key areas would you want to explore in order to understand
Magna's decline in profitability?
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Magna Health – Question 2
Question 2.
Your team has gathered the following information on
Magna and its primary competitor, Sunshine HMO:
Number of Patients
Average Cost Per Referral
Per Member/Per Month
Magna Health
300,000
$20
Sunshine HMO
500,000
$15
What are the most likely reasons that the average cost of
referral at Magna is higher than at Sunshine?
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Magna Health – Question 3
Question 3.
Magna's CEO has a hypothesis that Magna is paying too much in
cardiology referral costs for its patient population. He asks the
McKinsey team to look at Magna's cardiac patient population more
closely and tell him how many referrals he should expect on an
annual basis. Assume the following:
• Magna has 300,000 patients in any one year
• 20% of its patients are age 65 or older
• In the U.S., patients with serious heart disease visit specialists
(cardiologists) on average 5 times per year
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Magna Health – Question 3
Further Information
• The prevalence rate of serious heart disease in the 65+
population is 30%
• The prevalence rate of serious heart disease in the under
age 65 population is 10%
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Magna Health – Question 4
Question 4.
When the team tells Magna's CEO that, based on Magna's patient
population, he should expect about 210,000 cardiology referrals a
year, he exclaims, "We currently pay for 300,000 annual cardiology
referrals for our patient population!“
Why might Magna's annual cardiology referrals be significantly higher
than U.S. averages?
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Magna Health – Question 5
After some additional investigation, your team thinks that
changing the behavior of Magna's primary care physicians
has potential to reduce cardiac referral costs while
maintaining high quality care. The team believes that
introducing some sort of incentive plan for physicians might
help reduce the referral rate:
The team's idea for a pilot plan is to increase overall fees
that Magna pays to primary care physicians to handle more
of their patients' basic cardiology needs. Overall fee
increases would total $ l million
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Magna Health – Question 5
In addition to the team's proposal, Magna's Medical Director
wants to pilot the following idea: Magna pays bonuses of
$100,000 per year to each of the 10 primary care physicians
with the lowest cardiac referral rates consistent with good
patient outcomes.
Although the team mentions to the Medical Director that
there are other issues to consider relating to the pilot that
are not financial, such as the ethical impact of incentivizing
physicians not to refer patients to specialist treatment, he
wants the team to do the first calculation including both
ideas:
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Magna Health – Question 5
Question 5A.
How many fewer cardiology referrals will Magna need to
have in order to recoup the cost of the pilot incentive plan
(including the team's and the Medical Director's ideas)?
Assume:
The cost of a cardiology referral is $200
Magna currently has 300,000 cardiology referrals per year
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Magna Health – Question 5
Question 5B.
Your team projects that the incentive plan has the potential
to reduce referrals by 5% in its first year, and an additional
2% in its second year. If these projections are correct, how
much referral cost could Magna save in total over the first
two years of the incentive plan?
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Food Service Industry
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Great Burger Case by McKinsey
• Breakout into groups facilitated by UCC members
• Make sure you pick up a sample
– McKinsey Case: Great Burger
• Meet back at 8:30 PM
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Case Workshop Program
Login and Password to www.consultingcase101.com and
www.caseinterview.com to access over 1000 cases and videos
$200
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Case Workshop Program
Case in Point
$50
Wall Street Oasis
Consulting Guide
Management
Consulted Consulting Bible
$30
$50
Vault Guide to
Consulting
Interviews
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Case Workshop Program
Experienced interviewees to
give you 1-on-1 case practice
Resume and Cover Letter
Workshop
Experienced Executive Board
Individualized Matching
Case Workshop Program members paired
with other members who are interviewing
for the same companies
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Value Proposition
$200 – Consulting Case 101
114 case books
$50 – Rocket Blast.com
~ 15 cases / book
$300 – Case Interview.com
~ 1,710 cases
$50 – Case in Point
Weekly mock interviews
$30 – WSO
$50 – Management Consulted
Resume workshop
Mentorship
$680 – Total Value
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Case Workshop Program
100+ pdf casebooks administered during actual interviews at top
firms, such as McKinsey, Bain, BCG, LEK, Booz&Co., Deloitte
Consulting, Accenture, A.T. Kerney, Oliver Wyman
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Application
USCConsultingClub.com
Join UCC
Online Application
Resume
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Application Questions
Why are you interested in pursuing a career in consulting?
What do you hope to gain from participating in the Case
Workshop Program?
Which companies have you interviewed with this past semester,
and what are your summer plans?
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Application Criteria
Cumulative or Major
GPA above 3.2*
Any major (the USC
Consulting Club
is not exclusive to
business students)
Smart, motivated, and
dedicated members
who are passionate
about consulting
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Internship or work
experience is
highly preferred
Early Application by
April 9th
Case Program
(Next Monday)
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Questions & Answers
• General questions?
• Website:
– www.uscconsultingclub.com
• Email
– uscconsultingclub@gmail.com
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The Case Workshop Program
Application
Q&A
Case Program
by Leland Char, Wilson Kyi, Ben So, Dhwani Thapar, Jennie Zhou, Lance Ma, & Jorge Go
Magna Health
Great Burger