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CASE PREPARATION SESSION

(C) Team Disha


What is a Case Interview?

Introduces you to and tests you on a business problem

Gauges your ability to deal with uncertainty and ambiguity

Tests logical approach to problem and comfort with data

(C) Team Disha


What is the Interviewer looking for?
Structured approach

Logic and rational assumptions

Comfort with numbers

Clear articulation

Thinking on the feet and creativity


(C) Team Disha
How to Approach a Case?

• Always clarify the problem – ask questions – be clear on what you are solving for

• Break down the problem into smaller pieces : Be MECE ! – Mutually Exclusive and
Collective Exhaustive

• Make it an interactive process – think out loud, and ask questions

• Don’t force fit frameworks – follow first principles approach

(C) Team Disha


Profitability Case

A movie theater has experienced a recent decline in profits. Help them


find out the reason

(C) Team Disha


Step 1: Clarify the problem statement and
context
A movie theater
1) Questions about the movie theater
• Is it a single screen or multiplex? - multiplex
• Where is it located ? – which city/inside a mall/ near residential spaces
• What are the other offerings? – a food and beverage counter

has experienced a recent decline


2) Since when have profits been declining – last 6 months

Questions about competition (industry and market landscape) and the customers
• How many other movie halls in a given radius
• Any other theatres, etc. nearby
• Demographics

Strike the balance. Don’t overdo this by asking 20 questions in one go. Use best judgement to ask only pertinent
questions in a structured fashion
(C) Team Disha
Step 2: Break down the problem – Structure
• It is a good practice to lay out your approach upfront
Step 2: Break down the problem – Structure
Profits

Revenue Costs
Step 2: Break down the problem – Structure
• It is a good practice to lay out your approach upfront

• Think out loud – make it an interactive process – don’t be too involved in the
structure

• Read frameworks – helps you understand various possibilities – Do NOT force fit
them
Step 2: Break down the problem – Structure
Profits

Revenue Costs

Movie Tickets Other sources


Step 3: Eliminate non-key issues - Analyze
• After breaking down the problem at each level, next step is to identify which
level to explore further:

• Walk the interviewer through your thinking

• Identify key issues (for ex. In this case - ask whether theatre has witnessed
decline in revenue through movie tickets or other sources – dive further
accordingly)

Thus, at each level – build hypothesis, state them and ask questions to refine
them
Step 2: Break down the problem – Structure
Profits

Revenue Costs

Procurement
Movie Tickets Other sources Operating Marketing
of movies

No. of tickets Total no. of Proportion who Avg.


sold people visit food counter bill/customer

Screen
No. of screens Occupancy Price
capacity
Rent Utilities Staff salary

Peak Non Peak


(Weekends) (Weekdays)
Step 4: Conclude
• Summarize the entire discussion

• Keep this crisp

• Difference between summary and synthesis


Food for thought?

Fauji Dhaba profits have been declining. Help the owner !

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