Cracking the Case

A Consulting Interview Primer

Copyright 2004 Deloitte Development LLC. All rights reserved.

Agenda

Introductions What is a case? What are companies looking for in the case interview? How do you approach a case? Practice

Copyright 2004 Deloitte Development LLC. All rights reserved.

What is a case?
A case is a hypothetical business issue or dilemma that requires you to:

Analyze the situation Identify key business issues Summarize findings and takeaways Outline next steps

Copyright 2004 Deloitte Development LLC. All rights reserved.

What is a case interview?

Cases are a key part of the interview process

Relevant to a broad spectrum of employment opportunities (marketing, investment banking, consulting) A critical component of the recruiting process at many firms Offer you an opportunity to demonstrate your flexibility, your analytical ability, your experience and your creativity

Copyright 2004 Deloitte Development LLC. All rights reserved.

Recent examples of case interview questions

What are the marketing implications of a partnership between ChevronTexaco and 7-Eleven in which the gas would be supplied by Chevron and the convenience store would be managed by 7-Eleven? What strategy should a regional grocery chain pursue to combat/survive against the imminent arrival of Wal-Mart Supercenters in the region? What are all the uses you can think of for Hidden Valley Ranch salad dressing? How would you forecast revenues for Herceptin, a protein-based biotherapy for metastatic breast cancer?

These questions were all asked in case interviews at Kellogg in 2004

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What are companies looking for in the case interview?

Analytical Skills Problem definition and solution structuring Analytical ability Quantitative capabilities Dealing with apparent deadends Ability to . . . Synthesize data Think creatively Defend hypothesis People Skills Communication skills Listening Presentation / speaking Business acumen Confidence

Copyright 2004 Deloitte Development LLC. All rights reserved.

How to crack the case

1. Understand the issue; ask clarifying questions as needed 2. Identify and test the underlying assumptions 3. State your null hypothesis 4. Select an appropriate analytical framework 5. Use the selected framework to identify key business issues (Keep your eye on the clock!) 6. Summarize key issues and findings 7. Outline your final recommendation and the expected results or impact

Copyright 2004 Deloitte Development LLC. All rights reserved.

Choosing a framework

You will probably need a framework to come up with a good answer to a case question Choose a framework that fits the problem Dont be afraid to create your own framework as long as it makes sense A framework provides structure to guide your analysis of the case and helps you to identify a good solution

Copyright 2004 Deloitte Development LLC. All rights reserved.

The key is selecting the right framework for the problem

Competitive strategy
Porters 5 (or 6, or 7) Forces SWOT Analysis (Strengths, Weakness, Opportunities, Threats)

Organizational
7-S (Strategy, Structure, Systems, Style, Staff, Skills, Shared Values)

Marketing
4 Ps (Product, Price, Place, Promotion) 3 Cs (Company, Competitors, Customers) Growth / Share Matrix

Profitability
Profit = Revenue Cost Revenue = Price x Quantity Cost = Fixed Costs + Variable Costs

Copyright 2004 Deloitte Development LLC. All rights reserved.

Logical structuring is essential

Logic should be MECE

Mutually Exclusive, Collectively Exhaustive Structure of your argument is rigorous, non-overlapping, and complete

Structure your answer as well as your thinking

Say what youre going to say, say it, and say what you said Dont lose sight of your structure when speaking Be consistent and convincing in the message youre trying to get across

Copyright 2004 Deloitte Development LLC. All rights reserved.

Approach: Practical tips

Take a deep breath

Take a minute or two to structure your approach Think before you speak Speak what you are thinking

Ask questions
You have to know the question before you can provide an answer Information is generally provided only when it is requested Be ready to explain the logic behind your question if challenged The ability to ask intelligent questions is a key professional skill

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Copyright 2004 Deloitte Development LLC. All rights reserved.

Approach: Practical tips

Write it down
Structure your notes in line with the selected framework Use charts and diagrams to better communicate your ideas

Show your reasoning

Talk the interviewer through your thought process You are being evaluated on the process as much as the answer

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Chicago Symphony Orchestra

The Chicago Symphony Orchestra experienced a significant decrease in ticket sales for its 2004 Summer Concert Series compared to sales for the past three years. The series is held at the Ravinia Festival Grounds in suburban Highland Park, and has become a Chicagoland tradition. In planning for the Summer 2005 Concert Series, the coordinators have been told that sales for the 2005 Summer Concert Series must increase in order for the series to continue. The coordinators have asked you to determine why sales were down for 2004 and advise them as to how they can ensure a successful and profitable Summer Concert Series for the year 2005.

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Chicago Symphony Orchestra: Possible response

1) Understand the issue; ask clarifying questions as needed 2) Identify and test the underlying assumptions

What went wrong? What should CSO do in 2005? Quality of performance has remained constant Major macroeconomic factors

3) State your null hypothesis 4) Select an appropriate analytical framework

Lack of parking availability has affected ticket sales Product, Place, Price, Promotion Company, Competitors, Customers

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Copyright 2004 Deloitte Development LLC. All rights reserved.

Chicago Symphony Orchestra: Possible response

5) Use the selected framework to identify key business issues

Ease of implementation Extent to which it addresses the problem Level of benefit

6) Summarize key issues and findings

Offer a shuttle service from various central locations Create partnership with local transit to offer discounted or free transportation Expand METRA service from Chicago and other key cities

7) Outline next steps and your final recommendation

Who to contact How to implement Whats the timeline

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Feedback
Problem definition and solution structuring Analytical ability
Quantitative capabilities Dealing with apparent dead-ends

Ability to . . .
Synthesize data Think creatively Defend hypothesis

Communication skills
Listening Presentation / speaking

Business Acumen Confidence

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Kellogg Premium Water

You have just been named Brand Manager of Kellogg Premium Water. Your sales are declining. What would you do to reverse the trend?

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Kellogg Premium Water: Possible response

Is the decline driven by a general category decline or a share decline for Kellogg Premium Water? Why is share or category declining?
Substitutes Change in consumer habits

If category is declining, determine strategy to increase category usage If share is declining, determine why (explore 4Ps):
Price Has price changed relative to competition? Product Has the quality of the product changed? Are there any competitive product upgrades/new products? Promotion Have my promotions/advertising changed or decreased? Any new competitive promotions/advertising? Placement - Have I lost any distribution? Have competitors gained distribution?

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Copyright 2004 Deloitte Development LLC. All rights reserved.

Case interviewing: Dos

Listen to your interviewer, take your time and make sure you understand the question Ask questions to gather background information Develop an approach and a hypothesis and bounce questions off your interviewer to test them out Show the interviewer what youre thinking talk through your thought process Once you have identified some underlying problems, formulate recommendations and be prepared to defend them Finally, when closing your answer, define the problem, actions you would take, why you would take them, and the expected results
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Case interviewing: Donts

Dont jump into your answer right away Dont make assumptions without clarifying with the interviewer Dont worry about the right answer, worry about the right approach Dont explicitly or exclusively rely on canned frameworks Dont appear flustered or frustrated

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Questions?

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Copyright 2004 Deloitte Development LLC. All rights reserved.

Contact information
Jeremy Miller, Manager jsmiller@deloitte.com

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Copyright 2004 Deloitte Development LLC. All rights reserved.