Case Interview Workshop
16 September 2005
www.ibc.uiuc.edu
Illinois Business Consulting (IBC)
Mission of Illinois Business Consulting:
“To establish IBC as a premier consulting organization managed by students, to
deliver high quality solutions to client problems and to nurture future
consultants for the business world.”
Description of IBC:
An integral component of the College of Business, IBC is a student managed consulting
organization. IBC performs 40-50 projects per year for Fortune 500, mid-sized, new
venture and not-for-profit clients. The organization enables graduate students and select
undergraduate students to apply their classroom learnings to real business issues.
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What is a case interview?
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Simulation of a realistic situation between a client and a
consultant, similar to a mini-business case
Typically found in later rounds of interviewing, as the process
becomes more competitive
More likely to be used in interviews for consulting or financerelated positions (i.e. investment banking)
Usually part of a longer interview that includes fit and behavioral
questions as well
Can range widely depending on the company
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Why do companies use case interviews?
Case interviews evaluate much more than functional and technical skills.
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Interpersonal skills: do you appear confident and comfortable?
Communication skills: can you articulate your thoughts and do
you listen carefully?
Organizational skills: can you see the broad picture and can
you identify an appropriate framework for your analysis?
Strategic thinking skills: have you considered all the aspects of
the case and how your solution will affect the organization?
Creativity skills: are you able to think “outside the box”?
Analytical skills: can you identify the important data and explain
the implications it may have on the organization?
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What are recruiters looking for?
Recruiters will assess if you have the minimal skills necessary to succeed in
the position.
Tolerance for
ambiguity
Problem
solving
ability
Communication
skills
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Types of case interview questions
There are a number of different types of case questions that you may encounter.
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Brain teasers
Profitability or sales analysis
New market or market expansion decision
Value chain and/or organizational efficiency
Organizational review or change
Industry analysis
Investment decision
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Brain teasers
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Objective: to understand how you think through a problem
– Can you think logically? Does your approach make sense?
– Are you creative in your thought process?
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Example: How many McDonald’s hamburgers are sold in the United
States each day?
How to handle it
– Estimate based on what you know
– Talk through your approach to demonstrate your logic
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Recommended approach to case questions
Be sure to follow a logical structure. Use the following approach to structure
your response to the question:
1. Listen closely to the client situation and the question(s) you are
being asked to address.
2. Confirm your understanding of the case by paraphrasing the
situation and question(s) back to the interviewer.
3. Select an approach to structure your analysis that focuses on the
critical issues of the case.
4. Analyze the problem. Ask the interviewer focused questions to
clarify your understanding of the situation.
5. Summarize your key observations and conclusions.
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Structuring your response
In order to make sure you cover all relevant aspects of the case question, it is helpful
to break down the question into a number of smaller questions you can address. You
may want to begin by mapping out the issues that you want to address first, and then
more thoroughly analyzing each area you identify.
Case question
Question A
Question 1
Question 2
Question B
Question 1
Question 2
Question C
Question 1
Question 2
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Profitability/sales analysis
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Objective: to determine your understanding of what impacts
profitability/sales
– Do you understand how different financial statements are related and
what they can reveal about a company?
– Can you tailor your analysis to the specified company or industry?
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Example: A computer manufacturer is experiencing a decrease in
profits. What should the company do?
How to handle it
– Think through all aspects of the income statement (both revenues and
expenses)
– Consider costs (fixed vs. variable, economies of scale, utilization, etc.),
customers (price sensitivity, segmentation, cost-benefit trade-off),
competition (pricing, capacity, differentiation), channels (relative
leverage, strategy)
– Remember to consider the market that the company is in – what are
the market/industry trends?
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Example response structure
Why are profits
decreasing?
Company
Customers
Capabilities
Price sensitivity
Revenues
Segmentation
Costs
Costs vs. benefits
Market/
Competition
Pricing
Capacity
Channels
Relative
leverage
Strategy
Differentiation
•Fixed vs. variable
•Utilization
•Economies of scale
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New market/market expansion decision
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Objective: to determine your understanding of what to consider
when entering into or expanding in a market
– How would you assess the attractiveness of the market? What market
trends do you expect?
– Have you considered both the capabilities of the company and of the
competition? Does the company have a competitive advantage?
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Example: A fast food chain is considering adding delivery service to
its offerings. What should the company consider before
implementing this decision?
How to handle it
– Consider the size of the market and growth trends, the competition,
customer needs and desires, implications on the production process
and the client’s capabilities, synergy with and/or potential cannibalism
of current products, and the economics of the market
– If the case is more focused on marketing strategy, consider the 4P’s:
product, promotion, price, and placement/distribution
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Value chain/organizational efficiency
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Objective: to determine your understanding of the manufacturing
process and the value chain
– Can you identify the driving factors that affect efficiency in the specified
industry?
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Example: Congratulations, you were just hired as the manager of a
video rental store. How would you measure its efficiency?
How to handle it
– Think through the value chain for this industry
– Manufacturing value chain includes suppliers, design & engineering,
manufacturing, marketing, sales, distribution, service
– Consider the expenses, the production time, inventory turnover,
product availability (down for repairs, etc.), seasonality of the business,
number of employee sick days, employee turnover
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Organizational review or change
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Objective: to determine your understanding of organizational design
and internal management
– What is the culture of the organization? How will changes affect the
employees and the organizational environment?
– How does the internal organization compare with its competitors?
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Example: Your client needs to cut 10% of its budget and plans to
downsize in two major business units. What would you recommend
they consider?
How to handle it
– Think through the elements of organizational design
– Consider the client’s business, the scope and timeline for the change,
the organizational culture (open to change, committed, etc.), major risk
factors
– Also consider what messages the company should send regarding the
changes to employees who are let go and those who are retained, as
well as to customers and the media/public
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Industry analysis
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Objective: to determine your understanding of what to consider
when entering into a new industry
– How would you assess the attractiveness of the industry? What are
the industry trends?
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Example: A computer retailer is considering offering technology
consulting services. They have asked you to assess the
attractiveness of the industry and whether they should enter it.
How to handle it
– Consider the attractiveness of the industry using a framework such as
Porter’s 5 Forces (substitutes, buyer power, supplier power, barriers to
entry/exit, rivalry)
– Also think about the company’s capabilities and if the new industry
would be synergistic with current products/services, and consider any
potential partnerships
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Investment decision
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Objective: to determine your understanding of what to consider
when making a financial investment
– What are the key drivers that will affect the profitability of the decision?
– How will this decision affect the company’s current operations?
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Example: A toy manufacturer is considering building a new plant in
Southwest Asia to take advantage of less expensive labor. What
factors should management consider?
How to handle it
– Think about the industry: market size and dynamics, future industry
trends, pricing dynamics, product differentiation and standards
– Think about the company: current position in the market, how the
company is performing, distribution of costs
– Consider the competition: plans to expand, strength of competitors
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Case interviewing tips
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Use the five-step recommended approach
Think out loud to demonstrate your train of thought as you consider
the case question
Use a framework to structure your response and let the interviewer
know that you are doing so
Ask clarifying questions as you go to better understand the situation
Make your assumptions clear to your interviewer
There is no single right answer, but it is important to provide
rationale for your conclusions and to demonstrate a logical thought
process
Take your time and do not rush to conclusions
Practice case interviewing with others as much as you can because
the best way to prepare yourself is to practice
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How does it really work?
The case:
Whole Foods is considering opening a new store in ChampaignUrbana. The store would be located in southwest Champaign.
Would you recommend that they move forward with the store
opening?
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Example response structure
Should Whole Foods
open a store in
Champaign?
Industry
Market size
Company
Current position
Market/
Competition
Plans for
expansion
Market dynamics
Current performance
Industry trends
Pricing dynamics
Number/strength
of competitors
Cost distribution
Differentiation
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Practice makes perfect
Pick a partner and take turns “cracking” the following cases…
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Case 1: Subway is considering implementing delivery service of its
products. They have asked for your advice. Would you recommend that
they do so?
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Case 2: Sears has been struggling to remain profitable over the last
several years. They are seeking your help in determining how they can
increase their profits. What do you recommend?
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Case 3: Ford Motor Company has decided to close another U.S. plant
and move its operations overseas to Asia. Ford management has asked
you to assist with delivering the message to its workforce and the media.
What would you recommend?
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Case 4: Carle Foundation Hospital in Champaign wants to maximize its
efficiency in response to concerns about rising health care costs.
Management has asked you to help them determine their current
efficiency level and how they might improve it. What would you
recommend?
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Additional resources
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Business Career Services – advice, resources, mock interviews
Consulting firm websites – check the careers section
– www.bcg.com, www.mckinsey.com, www.bain.com
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Vault and Wet Feet publish various case interviewing guides
Other business school websites
Sources for presentation content include www.bcg.com, www.bain.com, business.tepper.cmu.edu
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