The Management Consulting Association presents...

1. The Management Consulting Association presents... Intro to Case Interview Frameworks Today!! Tuesday D301 from 12-1pm

2. The Management Consulting Association Intro to Case Interview Frameworks

3. What Case Interviewers are looking for • Analytical ability • Poise • Creativity • Communication skills • Logical thought process • Business acumen • NOT NECESSARILY LOOKING FOR A SOLUTION

4. What are frameworks? • A structured approach to break down a case problem • A way to think about the facets of a business decision • A tool to develop case interview proficiency

5. How to use frameworks? • During your early practice interviews, use frameworks to develop the discipline for structuring a interview answer • Later, depart from the frameworks (avoid mentioning them) to develop a comfort level with structuring a framework on the fly • Bottom line: You need to practice to do this right

6. How not to use frameworks? • Saying, “Well, I’ll use the Porter’s 5 forces to break this down...” • Worrying about finding the right framework for the case - in every case, several would work fine • Becoming panicked if you can’t remember a framework - remember, structure is the most important thing!

7. Structure Your Response - The golden rule • Listen to question and ask any clarifying questions. Take notes. • Tell interviewer the areas you plan to investigate in 2-3 sentences • Proceed down line of inquiry in first area you think shows the most promise - “First, I would like to get a better understand of their customer base..” • Proceed to next area if deterred in questioning and/or you’ve exhausted a subject. Telegraph your moves - “Next, I would like to assess their competitive environment…” • Pull finding together at end of interview and state recommendations (“Initial findings suggest… ; I recommend we do the following….”)

8. Pizarro Case Question Example • Question: How did the Spanish Conquistador Pizarro, with only 180 men, manage to defeat the Incan Empire which numbered in the thousands… • Framework: “Like business, success in a military campaign is dependent on many factors including training, resources, and leadership. I would want to explore the following.. • Compare the Pizarro’s leadership with the of the Incan ruler • Analyze the training of Pizzaro’s forces • Determine if Pizarro’s forces had any technological advantage over the Incas • Let’s start with Leadership. “Who was the Inca ruler and how would you characterize his leadership...”

9. Popular Frameworks • 4 P’s of Marketing • Porter’s 5 Forces • Internal and External Factors • 3 C’s - Company, Competition, Customer • Revenues vs Costs

10. Revenues vs. Costs Useful for determining why a company is losing profitability • Revenues • have they changed, how? • Pricing pressure?, recession?, competition? • Costs • Fixed Costs - new investments, low capacity? • Variable Costs - raw materials costs (supplier power), labor costs

11. 4 P’s of Marketing Useful for determining in company should enter a new market or product category. Also, may help identify cause of sales slowdown • Product • Price • Promotion • Placement

12. Porter’s 5 Forces Useful for determining whether a company will be competitive and profitable in the long run • Supplier Power • Buyer Power • Entry Barriers • Internal Rivalry • Substitutes

13. Internal Vs External Useful for nearly all business problems • External Factors • Market - trends, segments, substitutes • Customers - demand, price sensitivity, loyalty • Competitors - how many, share, strengths • Internal Factors • Operations - how cost competitive and inefficient • Finance - are resources sufficient, profitability • Product - competitive advantage, differentiated

14. The 3 C’s Useful for nearly all business problems • Company - marketing, operations, strategy • Competition - industry structure (Porter’s 5), competitor positioning (low cost, high quality) • Customer - segments, size, growth, price elasticity

15. Closing • Learn the frameworks so they become second nature • Practice and more practice to become comfortable with the facets of a business problem • Develop capacity to structure problem in an appropriate manner to reach a solution