The Case Interview

1. The Case Interview Source: Boston Consulting Group

2. WHY ARE CASE INTERVIEWS GIVEN?To Test Two Things How much will you like consulting? How much will consulting like you? Expose candidates to case situations and the kind of work consultants do 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

3. WHAT ARE CASE INTERVIEWS?Two Main Types • 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? Brain teaser or market sizing Business problem

4. 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

5. HOW DO I ATTACK A CASE?Creating a Logical Structure is Key to Success • Framing/organizing • Prioritizing issues • Identifying relevant information • Drawing conclusions from facts • Identifying key implications and next steps • Ability to identify key issues which he/she needs to deal with in order to solve the problem • Ability to assess the issues, prioritize them and form a coherent plan of attack • Ability to dig deep enough to find the detailed information which leads to a meaningful answer • 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 • Ability to predict relationships and outcomes based on sound reasoning • - clear logic to conclusion • - delineation of alternatives Framing Analysis Con-clusion Communication skills tested throughout interview

6. 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?

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

8. WHAT IS A FRAMEWORK? • 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 • 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 • 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 Description Benefits Examples Key is application of, not simply stating, a framework

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

10. FRAMING Do’s Don’ts • 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 • 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

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

12. ANALYSIS Don’ts Do’s • 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 • 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”

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

14. 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

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

16. 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