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Peek into the consulting interview

Case Frameworks
Session 1

Introduction to Consulting
- Consulting Club, FMS Delhi

Contents
The Case Interview Process

Types of Cases

How to solve a case

Profitability Framework

Four Cs Framework

Structure of a Consulting Interview


Applicants to consultancy firms can expect to undergo several
case interviews (typically three to four), each lasting in the
region of 30 -45 minutes .

20-30 min

Start

Personals and
Guesstimate

Case Studies are an integral part of consulting interviews. The


second to the second last round of a consulting interview
process is entirely dedicated to case interviews.

5 min

30-45 min

Case Interviews

The most vital part of the entire


interview process
There can be multiple case interview
rounds that the candidate will be
required to clear
This is the most conclusive proof of
the candidates thinking ability and
potential

Key Focus

Case
Presentation

5 min

Wrap Up

End

Types of Cases
Most Frequently Encountered
Decline in price
Decline in volume
Increase in costs

Profit

Issue

Opportunity

Business Situation

Supply/ Demand

Merger and
acquisition

Enter a new market / How to grow


Introduce new product
Respond to competitor behaviour
Value chain optimization
Should there be a merger/acquisition ? (Similar
company leading to capacity change)
Build/shut down a factory
Capacity shift in response to change in demand
Is THIS merger/acquisition a good idea ? (A
specific company)

Others
Puzzles

With eight marbles and one balance, what is the minimum number of moves you could make to
figure out which is lighter than the others?

The first step of solving a case is to understand the exact problem of the client . There is no point ending up
solving the wrong case.
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How to solve a Case

OPEN THE CASE


Identify if it is an issue or an opportunity for the firm
Get the basic information that you need to fix a base (WHAT, WHO, WHY)
Understand the whole problem at hand, and get it verified

ANALYZE THE CASE


Take your time, understand the stakeholders and effects of the problem
Decide and create the Framework you want to apply
Apply the framework, ask for relevant data, do your numbers!

CLOSE THE CASE


Ask if there is any part that you need to re-look, or venture into
Conclusion, suggestions, recommendations
Concise 3 supporting points with data to back them up

NEVER EVER jump into trying to fit a framework to a case directly


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Profitability Framework (Most important)


Profitability is the issue that drives all client problems; useful tool for opening up the case and gather desired informatio n.

Profit

Revenue

Volume

Market Share

Cost

Fixed Cost

Price

Variable Cost

Market Size

1) SEGMENT the component, break it up into its sub-parts,


compare to historical metrics to find the cause of shift/change
1) SEGMENT the costs into sub-parts as follows
2) ISOLATE the key driver causing bulk of problem. Possible
Segment cost by logical components
Segments to get data for segmenting and isolation
Segment costs by value chain
By product / product line
2) Compare to historical. Find the problem component.
By distribution channel
3) Keep "drilling down" by finding the problem segment, and
By region
drill down on THAT segment until you ISOLATE what's
By customer type (new/old, big/small)
mathematically causing the majority of the problem
By industry vertical
3) Once you find the driver, find WHY the problem, HOW to solve
When any component changes, it's useful to compare the company's numbers to its competitors to determine if it's an industrywide or company-specific issue
Link for further understanding: https://www.youtube.com/watch?v=jtvyRnmkDqo&index=6&list=PLAFDCCB346DBA95B0
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Profitability Framework (Example)

CASE: TAXI DRIVER IN MUMBAI (BCG)


A taxi driver in Mumbai wants to increase his revenue and
profits. The driver is the owner of the taxi and operates during
the day time. The driver starts his day at the railway station and
works for 10-12 hours daily.

Four Cs Framework
Useful in understanding the source of business problems (marketing or internal performance issues); used with profitability

Profit

Company
Revenue

Quantity

Cost

Price

FC

VC

Collaborators
If you are stuck at any of the
above four points use 4 Cs

Competitors

Customers

Say using the profitability framework you have understood that


the profitability of the firm is going down as the variable costs
are going up. This may be because the production cost
(Company) are going up or the supplier costs (Collaborator) is
increasing.

The framework is generally used in conjunction with the


profitability framework to get a better view of the problem at
hand

This framework is to be used only if the problem is not very apparent from the profitability framework
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[1] Collaborator : Suppliers , Distributors etc

4 Cs Framework (Example)

Anti Smoking Pills (BCG)


Your client is in the business of making anti-smoking pills - the way
we have those patches and lozenges in the market to curb the urge
to smoke. The client wants to sell it at a premium price.
You have been hired to find out if the product can be introduced in
a country like India - and if so - what is the expected target market,
market share and a feasible price at which the drug should be sold.

Consulting Club Contacts

Team Conclub Members

Arush Singhal
Avneesh Bansal
Bodhisatva Gautam
Jayant Dalmia
Kanav Mayar
Siddharth Shandilya

arush.s16@fms.edu
avneesh.b16@fms.edu
bodhisatva.g16@fms.edu
jayant.d16@fms.edu
kanav.m16@fms.edu
siddharth.s16@fms.edu
Others

conclub@fms.edu
https://www.facebook.com/TheConsultingClubFMSDelhi

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