The Case Interview Source: Boston Consulting Group -1

The Case Interview Source: Boston Consulting Group -1

WHY ARE CASE INTERVIEWS GIVEN? To Test Two Things How much will you like consulting? Expose candidates to case situations and the kind of work consultants do How much will consulting like you? Give the firm a sense of how you might approach a case situation Firms generally do not expect an extensive business background Most companies try to give cases that do not require business experience or knowledge of business jargon -2

WHAT ARE CASE INTERVIEWS? Two Main Types Brain teaser or market sizing Business problem How many pencils are sold annually in the United States? How many dogs are there in California? What are the chances of rolling double sixes three times in a row? A pharmaceutical company is trying to decide whether to manufacture its drugs in-house or outsource; how would you help? The company that owns Vail mountain has seen a decline in revenues over the past five years; what should it think about? -3

WHAT DO COMPANIES LOOK FOR? Not “The Answer” Creativity Poise Analytics Apply a unique perspective to business situations See the big picture Draw conclusions from partial info Make assumptions, see patterns, generate hypotheses Appear excited by the kinds of issues consultants face Not intimidated by process/problems Assimilate info quickly/effectively Ask insightful questions Provide structure to unstructured problems Break problems into components Apply transparent, logical thinking to each component Synthesize discussion into solution -4

HOW DO I ATTACK A CASE? Creating a Logical Structure is Key to Success Framing Analysis Framing/organizing Ability to identify key issues which he/she needs to deal with in order to solve the problem Prioritizing issues Ability to assess the issues, prioritize them and form a coherent plan of attack Identifying relevant information Ability to dig deep enough to find the detailed information which leads to a meaningful answer Drawing conclusions from facts Ability to use information given and manipulate it accurately into a logical conclusion - identify the key displays or data dimensions needed to reach a solution - derive relationships among different dimensions of data Identifying key implications and next steps Ability to predict relationships and outcomes based on sound reasoning - clear logic to conclusion - delineation of alternatives Conclusion Communication skills tested throughout interview -5

INTRODUCTION TO THE CASE Our client owns and operates an independent “mom and pop” gas station – Sells gas for 1.01 per gallon – Operates at break-even profitability Exxon opened a gas station across the street twelve months ago – Sells gas for 0.91 per gallon – Seem to be “blowing and going” based on traffic What would you advise our client to do? -6

DEMONSTRATION OF CASE INTERVIEWING #1a: FRAMING Interviewer Interviewee Discussion Discussion and and Q&A? Q&A? -7

WHAT IS A FRAMEWORK? Description – Models, tools or maps that provide a systematic, logical way of analyzing a problem – Show cause and effect relationships to focus on – Distill a complex, ambiguous problem to the relevant issues Benefits – Guides intelligent questioning of the interviewer – Lays out your analysis in a logical, coherent manner—paints a picture of how you think – Allows you to apply your experience to an unfamiliar situation Examples – – – – – – – SWOT analyses Familiar frameworks—5 forces, 7 Cs, 7 Ss, 4 Ps Matrices—2x2, more sophisticated multi-dimensional Value chain analysis Comparative economics Product/technology life cycle Decision trees Key Key is is application application of, of, not not simply simply stating, stating, aa framework framework -8

DEMONSTRATION OF CASE INTERVIEWING #1b: FRAMING Interviewer Interviewee Discussion Discussion and and Q&A? Q&A? -9

FRAMING Do’s Use one to structure your answer Explain insights derived using framework Creativity is key Get buy-in from interviewer Use analogies if possible Practice, practice, practice Don’ts Force fit a framework Overuse buzzwords (e.g., Porter’s 5 forces) Try to apply a framework that you do not know well Ignore direction from interviewer -10

DEMONSTRATION OF CASE INTERVIEWING #2: ANALYSIS Interviewer Interviewee Discussion Discussion and and Q&A? Q&A? -11

ANALYSIS Don’ts Do’s Scratch your analysis on paper —even stream of consciousness thoughts Use facts provided to develop support for your conclusions Ask for more data, clarifying information Keep your framework in mind (tie back) Do math on paper Use round numbers Start over if needed “Think out loud” Overly worry about basic math mistakes—yet, don’t make too many of them Worry about decimal-point precision Lose sight of the issue (get lost in the details) Lose contact with your interviewer Ignore when analytics disprove original hypotheses Keep your thought processes to yourself -12

DEMONSTRATION OF CASE INTERVIEWING #3: CONCLUSION Interviewer Interviewee Discussion Discussion and and Q&A? Q&A? -13

CONCLUDING THE CASE Do’s Don’ts Summarize your analysis Provide a clear recommendation or hypothesis derived from your analysis Highlight any additional information you would need to know Identify any implications of your recommendations (e.g., competitor response, client reaction) Forget to conclude the case— regardless of progress made or time constraints Waffle or be indecisive—have a point of view and confidently support it Ask for feedback Forget the original question -14

HOW DO I PREPARE? No Magical Formula – With classmates, friends who interviewed last year, and people at your school’s career services Practice – Look on the web for firm-provided practice questions (bcg.com) Decreasing performance impact – Case interview guides (e.g., WetFeet) – View the interview as an opportunity, not a hurdle Prepare mentally – Remember, most questions have no “right answer” – Familiarize yourself with frameworks – Don’t forget about your conclusion – Wall Street Journal Read, read, read . . . and think – Financial Times – New York Times business section -15

PRACTICAL TIPS FOR SUCCESS Bring a pen/pencil and a pad of paper Feel free to pause, particularly at the beginning Don’t panic—ask questions to clarify facts, learn more information Structure your analysis before you begin Think out loud Be clear about your assumptions Silence can be golden Do what makes you comfortable—approach with your personal style, not what you think is expected -16