Supply: price increases with quantity (upward sloping) Demand: price decreases with quantity (downward sloping)

Transcription

1 Preparing fr a Case Interview The case interview prvides the pprtunity fr yu t shwcase yur analytical skills, the flexibility f yur thinking and yur ability t perfrm within time cnstraints. Yu shuld PRACTICE fr yur case interviews. Interview cases are ften drawn frm the interviewers' experiences. Althugh cases may be apprached using framewrks (discussed belw), it is impssible t predict the cases yu will be given, and mst interviewees are best served by practice. Typically, interviewers are prepared t vlunteer a significant amunt f infrmatin at yur request t assist yu in making assumptins t slve the case. The case interview requires yu t analyze a business situatin that is presented t yu by the interviewer. Yur jb is t ask lgical questins that will enable yu t prvide a recmmendatin. During the interview, emplyers are bserving yur business instincts and ability t: Slve cmplex prblems with a lgical thught prcess Use a structured, hypthesis-driven apprach Be cmfrtable with case facts, as well as the ambiguity f the situatin Synthesize infrmatin and draw cnclusins Analytical Framewrks Cst/Revenue Mdel Csts are the sum f cst f gds sld (fixed and variable cst) plus engineering, develpment, sales, and general and administrative expenses Revenues are the sum f vlumes times price, where price varies by the segment it serves Investigate csts and revenues in abslute terms and relative t cmpetitrs Supply/Demand Mdel Supply: price increases with quantity (upward slping) Demand: price decreases with quantity (dwnward slping) Five Frces Mdel f an Industry Supplier pwer Buyer pwer (custmer, distributr, r cnsumer) Replacement technlgies (creating barriers t exit) New entrants (creating barriers t entry)

2 Industry rivalry (cmpetitin) Three Generic Strategies Lw Cst Differentiatin Fcus Levers f Financial Perfrmance Balance Sheet Mdel ROE rati f earnings t sharehlder equity ROE is als = prfit margin x inventry turns x financial leverage, where: Prfit margin = earnings / sales Inventry turns = sales / assets Financial leverage = assets / sharehlder equity Case Preparatin Listen t the Questin Listening is the mst imprtant skill a cnsultant has. The case isn t abut yu r the cnsultant. it s abut the client. What are they really asking fr? Pay particular attentin t the last sentence ne wrd can change the entire case. 1. Take Ntes Taking ntes during the case interview allws yu t check back with the facts f the case. As smene nce said, "The palest ink is strnger than the best memry." If yu blank ut, all the infrmatin is right in frnt f yu. 2. Summarize the Questin After yu are given the questin, take a mment t summarize the highlights ut lud: It shws the interviewer that yu listened It allws yu t hear the infrmatin again It keeps yu frm answering the wrng questin

3 It fills the therwise awkward pause when yu re trying t think f smething intelligent t say 3. Verify the Objective(s) Prfessinal cnsultants always ask their clients t verify their bjective(s). Even if the bjectives seem bvius, there culd be an additinal underlying bjective. When the bjective seems apparent, phrase the questins differently: "One bjective is t increase sales. Are there any ther bjectives I shuld knw abut?" 4. Ask Clarifying Questins Yu ask questins fr three main reasns: T get additinal infrmatin that will help yu identify and label the questin T demnstrate t the interviewer that yu are nt shy abut asking prbing questins under difficult circumstances (smething yu ll be ding n a regular basis as a cnsultant) T turn the questin int a cnversatin. Nthing turns an interviewer ff quicker than a five-minute mnlgue. 5. Organize Yur Answer Identify and label yur case, then lay ut yur structure. This is the hardest part f a case and the mst crucial. It drives yur case and is ften the majr reasn behind whether yu get called back. 6. Hld that Thught The interviewer wants yu t think ut lud, but think befre speak. If yu make a statement that is way ff-base in an interview, the interviewer will wnder if he can trust yu in frnt f a client. 7. Manage Yur Time Yur answer shuld be as linear as pssible. Dn t get bgged dwn in the details. Answer frm a macr level and mve the answer frward. Stay fcused n the riginal questin. 8. By the Numbers If pssible, try t wrk numbers int yur answer. Demnstrate that yu think quantitatively and that yu are cmfrtable with numbers.

4 9. Accept Caching/Feedback Listen t the interviewer s feedback. Is she trying t guide yu back n track? Pay attentin t her bdy language. Are yu bring her r is she enthralled? 10. Be Creative and Brainstrm Cnsulting firms like liberal arts candidates with intellectual curisity wh can "think utside the bx" and ffer up a new and interesting perspective. 11. Exude Enthusiasm and a Psitive Attitude Recruiters want peple wh are excited by prblem slving and can carry that enthusiasm thrughut the entire interview. 12. Bring Clsure and Summarize Create a sense f clsure by summarizing the case. Review yur findings, restate yur suggestins, and make recmmendatins. Case Preparatin - Tips Take graph paper int the interview. It helps yu rganize yur thughts, keeps the numbers lined up when yu multiply and add, and reminds yu t try t graph part f yur answer. Practice yur math, particularly multiplicatin and percentages. Almst all recruiters will nt let yu take a calculatr int the interview. Mst students make math mistakes. They are usually ff by a zer r tw. Ask fr numbers. If the numbers aren't an imprtant part f the case they will mre than likely tell yu nt t fcus n them. There may be several issues t be addressed in rder t reach a cnclusin. Priritize and then address the issues ne at a time, yur interviewer may nt expect yu t get thrugh all f them in the alltted time. Turn the interview int a cnversatin. A five minute mnlgue will d mre t hurt yur chances than any ther mistake. Remember, yu ask questins nt nly t get additinal infrmatin, but t draw the interviewer int the case with yu.

5 Listen t the questin, write it dwn; and then repeat it t the interviewer. Candidates are always answering the wrng questins because they dn't take the time t identify what the interviewer is really asking. Think be fre yu answer. I see it all the time; peple can't give me the answer fast enugh. Slw dwn. Dn t jump ff the mark and give the first answer that pps int yur head. Take yur time and analyze the infrmatin. If yu get lst during yur answer the first thing t d is t stp and summarize what yu dne s far. This will lift yu ut f the mud f details and hpefully shw yu a new path t take. If this desn't wrk then ask the interviewer fr sme guidance. While mst cases are given verbally, sme firms give a written case. The candidate is given 15 t 20 minutes t read the case and make ntes. He/she is then questined abut the case. Smetimes this is dne ne n ne, ther times the candidate is brught in as part f a grup t slve the case. This is dne t see hw well a candidate can wrk as part f a team with strangers. Is the candidate trying t dminate the interview r are they building n what anther candidate said? Are they cmmunicating laterally as well as vertically? Additinal Case Interview Basics: The First 4 Steps 1. Summarize the questin 2. Verify the client s bjective 3. Ask clarifying questins abut the cmpany, industry, market, prducts and cmpetitin. 4. Layut yur structure The 12 Mst Ppular Case Scenaris Business cases traditinally have fcused n either business strategy r business peratins. Hwever, with tday s mre cmplex cases, candidates are getting cases that cver bth categries and multiple scenaris. Strategy Scenaris Entering a new market Develping a new prduct Pricing Strategies Operating Scenaris Increasing sales Reducing Csts Imprving the bttm line

6 Grwth Strategies Turnarunds Mergers & Acquisitins Starting a new business Cmpetitive respnse Industry Analysis Entering a New Market Things yu need t be thinking abut. Step 1: Investigate the current market t determine whether entering the market wuld make gd business sense. Wh is ur cmpetitin? What size market share des each cmpetitr have? Hw d their prducts/services cmpare t urs? Are there any barriers t entry? Such as gvernment regulatins, access t distributin channels, capital requirements. Step 2: If we decide t enter the market, what is the best way? There are three main ways t enter a market. Start frm scratch Acquire an existing business Frm a jint venture Analyze the prs and cns f each. This is smetimes called cst-benefit analysis. Yu can use this whenever yu are trying t decide whether r nt t prceed with a decisin. THE FIVE C s and 4 P s There are tw elementary framewrks that can d the jb. Yu re nt ging t blw anyne away with these, but yu wn t drwn either. They will allw yu t tuch n all the main pints and appear fairly well rganized. FIVE C s Cmpany Csts Cmpetitin Fur P s Prduct Price Placement

7 Cnsumer Prmtin Channels Other Tips: Maintain eye cntact. Eye cntact will help yu engage the interviewer, establish rapprt, and cntribute t the interactivity f the interview. Prject cnfidence. Yur ability t wrk the case cnfidently, withut getting flustered r frustrated, is key. Demnstrate yur enthusiasm. Behaving as thugh yu feel it's fun t tackle this kind f prblem is integral t shwing hw well yu'd fit in as a cnsultant r whatever psitin yu're interviewing fr. Assure yur interviewer thugh yur enthusiastic demeanr that yu are exactly the kind f persn he r she wuld enjy wrking with.