The Case Interview.
Business Case Workshop
Agenda
• Overview
– What is a case interview?
– Why are they used?
• The Case Interview
– Five skills
– Types of cases
– Frameworks
• Business Case Interview Tips
• Illustrative Case Study
• Questions
©2004 Deloitte Consulting LLP
What Is A Case Interview?
• A Case Interview normally consists of a question that demonstrates
how you think, rather than who you are and what you have
accomplished
• Example: How big do you think the US golf ball market is?
• A Case Interview normally does not have one right answer
©2004 Deloitte Consulting LLP
Why are they used?
• Consulting firms normally use case interviews to assess:
– Logical / analytical thought process
– Communication skills
– Creativity
– General knowledge
– Business insights
– Performance under pressure
– Problem solving with incomplete information
©2004 Deloitte Consulting LLP
An Opportunity To Evaluate Five Skills
Problem
Identification
• Determine the salient issues
• Know when and how to ask the right questions
• Avoid pitfalls
• Make sure you understand what the interviewer is asking
Logical Process
• Ask clarifying questions
• Figure out what facts you have and which ones you are missing
• Build a sequence to get the facts you need
• Research and become familiar with several frameworks: 3C’s,
Use of a
framework
Porter’s 5 forces, SWOT, etc.
• Use the most applicable framework to the problem
• Don’t explicitly reference the framework
• Determine your structure up front
Data Analysis
• Are you following the appropriate calculations?
• Have you solved the problems you have identified?
• Listen carefully
Communication
Skills
• Take a minute or two after hearing the question to jot down some notes
and organize your thoughts
• Speak clearly and consistently – do not ramble
• Support and defend your points
©2004 Deloitte Consulting LLP
The Case Interview: Work The Plan
• Communicate to the interviewer the issues you want to evaluate
• Drill down
• Ask questions that support or refine your framework
• Check your progress
• Wrap it up!
– Based on the facts you have gathered, draw a conclusion that answers the
interviewer’s question
– Be prepared to “wrap it up” even if you run out of time
©2004 Deloitte Consulting LLP
Types Of Cases
• Brainteasers
• Market Sizing
• General Business
– Falling Profits
– New Product Introduction
– Entering a New Market
– Where to Locate a New Facility (“Site Selection”)
– Mergers and Acquisitions
©2004 Deloitte Consulting LLP
Brainteasers
• Puzzles or questions that challenge a candidate’s ability to think
creatively
• Examples
– Why are manhole covers round?
– Why do fashions change every year or two?
• The Approach
– Be creative, and think (and talk) through why
– Cover multiple reasons, but pick the most likely reason at the end
©2004 Deloitte Consulting LLP
Brainteasers – Why are manhole covers round?
• Possible Responses
– Round manhole covers can be rolled down the street which is nice when
they’re brought off the truck since they are so heavy
– It is easier to drill a round hole than a square or triangular hole
– A company had a patent on a certain style or type of round manhole during
the period when most of the streets and sewers were being made
– A properly sized round cover won’t slip into the manhole; a square cover
might fit when it is laid flat but flip it on its diagonal side and it will drop
through the hole
©2004 Deloitte Consulting LLP
Market Sizing
• Determine how big a particular problem is, or how many of x products
are used
• Examples
– How many golf balls are made in the US each year?
– How many cans of paint are needed to paint the Delta fleet?
• The Approach
– Walk through how you would figure it out, and ask the occasional question
– Keep talking, and use round numbers
©2004 Deloitte Consulting LLP
Market Sizing – How many new golf balls would be used in
the US in a given year?
Possible Approach:
• Number of golfers in the US
– 250 million people in the US, 20% of
population plays golf
~ 50 million people
play golf in the US
• Number of balls they use per round
– 2 to 3 balls per round
~ 2 to 3 balls per
round
• Number of rounds they play per year
– Average of 10 rounds per year
~ 10 rounds per
year
~ 1.25 billion golf balls
©2004 Deloitte Consulting LLP
Frameworks
• Help structure thought process and attack problems methodically
• Many different methodologies, for example:
– SWOT
– Porter’s 5 Forces
– 3 C’s
• All valid approaches
• Some more relevant than others, depending on the problem type
• Many others exist
• Don’t blindly follow a framework, use it to get you going and focused
©2004 Deloitte Consulting LLP
Frameworks - SWOT Example:
Chelsea FC
SWOT analysis of Chelsea FC, 2000
Strengths
Weakness
• Missing asset needed to compete
Condition that places a firm at a
disadvantage
• Competitive liabilities or unproven
abilities
• Experienced players
• Key real estate location
• “Cultured” football methods
shared across the squad
• Midfield play
• Little development opportunities
for the youth teams
• Old players more accident
prone
• Low scoring
• Inexperienced manager
Weaknesses
Opportunities
Strength
• Skill, knowledge/experience
• Organisational resource or
competitive capability
• Market advantage
• Competitive assets
• Attract further key international
names
• Umbrella branding
(internationally recognised
name)
• Still backed by private investors
• MUFC and Arsenal keep getting
bigger
• Leeds, Liverpool, back in
contention for N° 3 spot
Threats
Opportunity:
• External charactistics that
provide potential competitive
advantage or growth
Threats:
• Factors that may undermine
existing business model – HR,
technology, new products,
regulation, politics, demographics
©2004 Deloitte Consulting LLP
Frameworks - Five Forces Example:
Alcoholic Beverage Industry
Customers & Retailers/Government are the most influential forces in the industry
New Entrants
Suppliers
Bargaining power of suppliers is
relatively moderate. Most
winemakers grow their grapes.
Distillers and brewers negotiate
contracts in advance to protect
themselves against increases in
commodity prices.
Threat of new entrants is low-to-moderate.
While new brewers and wineries cannot steal
market share from the billion dollar giants,
they have had success creating sustainable
regional brands.
Buyers/
Customers
Industry
Competitors
The alcoholic beverage
industry is highly consolidated
(wine is fairly concentrated).
Top 3-5 players in beer and spirits
control over 70% of their industry.
Threat of
Substitutes
Buyers/customers play a significant
role in the alcoholic beverage sector,
with 18 state controlled states effecting
the way alcohol is marketed and
distributed to consumers. Consumers
are drinking more premium offerings at
a smaller volume.
Threat of substitutes is moderate. Spirits
and wine products are stealing share from
Beer as the health benefits and lower carb
counts play a big role in today’s market.
©2004 Deloitte & Touche LLP
Frameworks - 3 C’s Example:
Business Operations – Why has General Motors stopped
making cars under the Oldsmobile brand name?
Possible Approach:
– Customers (Segments): Current customer base is old, and re-branding
efforts to younger people haven’t worked. Older people don’t buy cars as
often, fixed income, practical. Diminishing market segment, negative
growth.
– Competitors (Core Competencies): Japanese manufacturing and reliability
have impacted marketshare, more innovative designs, GM Cadillac
– Company (Changes): Follow the segment vs. brand focus, higher cost
structure? (scale important), factors inhibiting new designs?, GM’s core
competency? Product/image mismatch? What will happened to current
Oldsmobile customers?
– Final thoughts: Shrinking customer base makes unprofitable, and current
Oldsmobile customer likely to switch to Buick, Pontiac
©2004 Deloitte Consulting LLP
Case Interview Tips: Preparation
• Practice! Grab a friend and practice some cases with him/her
• Wet Feet Press and The Vault have good practice cases on their web
sites
• Career Services will probably have additional sample cases and
workshops
• Contact alumni in the Consulting field for “insider” tips
• Bring a paper and pencil
©2004 Deloitte Consulting LLP
Case Interview Tips: Execution
• Relax. The interviewer wants you to succeed as much as you do
• Maintain your composure. Pretend you are having a conversation
rather than an interview
• Consider external perspectives, customers and competitors
• Don’t jump to an answer. Take your time and explain how you arrived
at your answer
• Ask questions, but if you need to make an assumption, state it and
move on
©2004 Deloitte Consulting LLP
Case Interview Tips: Things To Do When You Realize You
Are In Trouble
• When you get a question about which you are really uncertain, try to
find an answer (or at least get partial credit) through the process of
elimination. You might say: “Possible approaches to a problem like
this would be to look at X, Y, and Z. However, for the following
reasons, I don’t think those lines of inquiry will produce the ultimate
solution.”
• When you run out of ideas halfway through your answer, pause, take a
breath, and say, “I’d like to take a minute to think this through.”
Collect your thoughts, and write down a few notes if necessary before
starting back into the case
©2004 Deloitte Consulting LLP
Case Interview Tips: Things To Do When You Realize You
Are In Trouble
• If you feel your wheels starting to spin, say, “As I’m working through
this, I know I’m starting to get into too much detail. I think the major
issue for the client on this front is X. In addition, I know that we still
need to talk about Y and Z, and I’d like to discuss those areas before
time runs out.”
• Tell the interviewer that you believe you misinterpreted the
information and explain why you now think your response has missed
the mark. Say that you think another approach would be a more
productive path to the solution and state what that approach would be
©2004 Deloitte Consulting LLP
Things Not To Do In A Case Interview
• Panic or become emotional
• Guess
• Say “I have no idea”
• Change the subject or lose focus
• Make the problem more complicated
• Jump to conclusions
©2004 Deloitte Consulting LLP
Qualities Consulting Firms Look For
• Self-starter
• Analytical
• Out-of-the-box thinker
• Goal-oriented
• Leader
• Resourceful
• Inquisitive
• Hard worker
• Team-oriented
• Eager to learn
• Energetic
©2004 Deloitte Consulting LLP
.
Illustrative Case Study
©2003 Firm Name/Legal Entity
Case Study Example Scripts
The #3 athletic shoe manufacturer has hired your consulting firm to
determine why its profits are declining while the profits of its two
competitors are growing.
• Scenario #1
• Candidate: Oh, that’s an easy one. Its profits are declining because no one is buying
athletic shoes anymore. Everyone is wearing those big, bulky, retro sneakers. Athletic
shoes as you and I know them are out.
• Narrator: The candidate has jumped right into the fray, proposing explanations without
even thinking through the problem. Moreover, he has revealed a dangerous
misunderstanding of some important business relationships. Profits don’t necessarily
relate to revenues, and even worse, he hasn’t listened to the question. The interviewer
clearly explained that the profits of the two leading companies in the industry are growing.
• Interviewer: Well, actually, why don’t we try to peel the onion here a little bit? Are profits
declining because revenues are shrinking or because costs are increasing? What would
you want to know in order to answer that question?
• Narrator: Although the interviewer smells trouble, he gives the candidate a nudge in the
right direction with the hope that he’s just nervous.
• Candidate: Oh, costs! Then their costs are probably too high because they’re spending too
much on advertising. Do they have Shaq on their commercials? It’s a waste of money.
They should definitely cut back on their advertising spending.
• Narrator: Again, a look-before-you-leap approach would have been much better. Instead,
the candidate plunges right in, throwing out potential solutions without even thinking
through the problem or the answer.
©2004 Deloitte Consulting LLP
Case Study Example Scripts
The #3 athletic shoe manufacturer has hired your consulting firm to
determine why its profits are declining while the profits of its two
competitors are growing.
• Scenario #2
• Candidate: Well, the recent soar in the price of oil must have had an effect on the price of
vulcanized rubber and plastic, thereby increasing the cost of production and eroding their
profits.
• Narrator: The candidate has jumped to a conclusion and appears to be substituting
something he read this morning in the Wall Street Journal for thinking about the issue.
• Interviewer: Well, actually, the costs of production have not increased.
• Candidate: Huh, then it must be attributed to the decrease in consumer spending in the
third quarter. People are not buying as many athletic shoes.
• Interviewer: Wouldn’t that effect their competitors as well?
• Candidate: Yeah, it probably would. Well, they could save money by moving their
manufacturing facilities offshore, where there is cheaper labor.
• Narrator: Rather than asking questions to narrow the field of possible solutions, the
candidate is stabbing at answers. Although the candidate appears to have some
knowledge, he/she doesn’t display a clear thought process and is complicating the issue.
• Interviewer: That probably would save them money, but they are asking us why their
profits are declining.
• Narrator: What you know doesn’t always help you in a case interview. Concentrate on
what knowledge the problem requires and where you can find it if you don’t already have it
The answer is not as important as the method.
©2004 Deloitte Consulting LLP
Case Study Example Scripts
The #3 athletic shoe manufacturer has hired your consulting firm to
determine why its profits are declining while the profits of its two
competitors are growing.
•
•
•
•
Scenario #3
Candidate: Can I have a moment to think through this?
Interviewer: Absolutely.
Candidate: If profits are down, that’s got to be a function of either revenues decreasing or
costs increasing. Let’s focus on the cost side: are the client’s costs in line with those of its
competitors? For example, are their manufacturing costs similar? Do they manufacture
and assemble in low-cost offshore locations? What about selling and distribution costs? Is
the client spending too much on a dedicated sales force when its competitors use
independent reps? What about general and administrative expenses? Does the client
have flashy office space or overpaid executives?
• Narrator: This is much better! The candidate gets off to a good start by setting up the
answer effectively. The “revenues – costs = profits” equation is simple, but it provides a
clear way to proceed through the problem. It lets your interviewer know that you
understand a basic business relationship and that you have a plan for rooting out the
answer. In addition, the candidate is asking good questions – at least half the battle in
consulting is knowing what questions to ask.
• Interviewer: Those are all good questions. But the client’s costs all seem to be in line with
those of its competitors. Costs don’t seem to be the problem. What would you look at
next?
• Candidate: If the cost side isn’t the problem, then I would look at revenues next. Are
sales declining?
©2004 Deloitte Consulting LLP
Case Study Example Scripts
The #3 athletic shoe manufacturer has hired your consulting firm to
determine why its profits are declining while the profits of its two
competitors are growing.
• Scenario #3 continued...
• Narrator: The candidate takes the hint and moves on to revenues.
• Interviewer: Actually, yes, revenue is down 6% from last year, and projections show
another 5% dip for the coming year. How would you go about figuring out why?
• Narrator: A pointed question from the candidate has brought forth more specific
information that will help in the consideration of the case. The interviewer’s answer means
that the candidate will have to dig deeper.
• Candidate: I would try to break sales apart into its relevant components: are sales of
certain shoe models declining disproportionately to others, for example?
• Narrator: The candidate might have talked about the two pieces that make up sales: price
and units. However, she chooses to break down the sales picture into different product
categories, which is also fine.
• Interviewer: Not really, most SKUs – shelf-keeping units equivalent to individual product
styles – are actually declining at a similar rate. What would you look at next?
• Narrator: Looks like another dead-end. But don’t get depressed – it just means that the
recruiter has ruled out another possible explanation and narrowed the candidate’s focus a
little further. We’re getting warmer.
• Candidate: If it’s not a few laggard shoes designs driving the downturn for this company,
and sales are just down overall, it looks more like people have just stopped buying their
shoes, period. We need to figure out why. Who are their biggest customers? What’s their
target demographic? Are they just not buying athletic shoes anymore?
©2004 Deloitte Consulting LLP
Case Study Example Scripts
The #3 athletic shoe manufacturer has hired your consulting firm to
determine why its profits are declining while the profits of its two
competitors are growing.
• Scenario #3 continued...
• Narrator: Having checked a variety of possibilities, the candidate makes a preliminary
hypothesis and proposes some ways to check this insight. Even better, she proposes some
next steps for the inquiry.
• Interviewer: You’ve hit on the crux of the problem: the company isn’t sure who its
customers are anymore. Formerly, its biggest customers were serious athletes interested
in high performance shoes. But the company isn’t sure if that’s true anymore. That’s one
of the biggest pieces of value we provided for the company – we told them who is buying
athletic shoes. How would you go about getting that information?
• Narrator: The interviewer reveals that the candidate has hit on a key piece of the puzzle.
Without pausing for breath, the interviewer then checks the candidate’s ability to turn her
insight into action and her common sense.
• Candidate: Well frankly, I’d go to the mall! I’d stand outside Foot Locker and see who’s
buying athletic shoes, check what brand they’re buying, and maybe even ask them why.
By doing this, I’d be able to see that demographic group was buying the most athletic
shoes and whether they were buying our client’s shoes or not. If not, I’d try to draw
conclusions as to why not. In short, I’d try to segment the athletic shoes market, and
figure out how to target the most attractive segments.
©2004 Deloitte Consulting LLP
Case Study Example Scripts
The #3 athletic shoe manufacturer has hired your consulting firm to
determine why its profits are declining while the profits of its two
competitors are growing.
• Scenario #3 continued...
• Narrator: The candidate uses a common sense approach here, which is really good. Not
only is her idea practical, it would be easy to implement and it would be relatively cheap to
do. She also shows that she fully understands what information she needs to collect. Not
only would she observe customer behavior, and ask them why, she’d also analyze the
findings and try to draw general implications from them.
• Interviewer: Well, that’s exactly what we did – we went to the mall. And our field research
showed that young adults in the 13- to 24-year old age group were buying 65% of all the
athletic shoes in the market we looked at. That makes them the first priority market
segment for our client. The next phase of this case is just beginning: we need to put
together a plan to target this demographic group specifically. Do you have any ideas?
• Narrator: Now the consultant is pushing into new territory, trying to see just how far this
candidate can take the analysis.
• Candidate: Well, it strikes me that the demographic you’ve described is less concerned
with high performance (the company’s current focus, you said) and more concerned with
the image of their shoes. Do they look cool? Would Michael Jordan wear them? That kind
of thing. I would recommend putting together a marketing and advertising campaign to
really pump up their image in the eyes of the young public.
• Narrator: This comment is based more on the candidate’s intuition and creative thinking,
but it shows that she fully grasps the nature of the problem.
• Interviewer: That sounds on track with what we’re thinking about...
©2004 Deloitte Consulting LLP
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