Cracking Consulting Interviews:

Case & Fit

Based on the 2004 Kellogg Consulting Case Book

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Agenda

•Interview Overview
•Case
•Frameworks
•Fit
•Resources & Next Steps

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The Interview

•Consulting interviews consist of two parts:

1. Case(s) - usually 2+ of them per interview
2. Fit

•Positive attitude is important

–Don’t give up if you get stuck

•Listen carefully to all questions – case & fit – and

give an appropriate answer

•You will need to nail both to receive an offer

–It’s not just about the case!

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Agenda

•Interview Overview
•Case
•Frameworks
•Fit
•Resources & Next Steps

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The Case Interview

• Firms want to see HOW you think

• Show your work

-Your paper is your friend

• You need a framework

-Know the main types of cases!
-Demonstrate that you can apply consistency
-But don’t be too rigid – use the framework loosely

• Practice makes perfect!

-Most people need to practice many, many cases
before they have it down… But it is possible for
everyone! SFR CC Frameworks 10-04 5
The beginning…

• Expect a fast & furious start

• Interviewers will present the business situation by

providing initial information
-Given info varies from very little to a lot
8 Listen carefully, and take notes
8 Repeat the key info that you have recorded back to the
interviewer
8 Ask clarifying questions if you do not understand something

• Take a brief pause to organize your thoughts

-It’s as simple as asking permission to take a moment to
prepare
8 Keep it to ~1 min or less
8 If you don’t need it, don’t take it
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Select a Framework

• With proper preparation, this can become simple

• Frameworks are essential to cracking the case

-There are seven main types
8 But don’t apply them to rigidly
8 Firms want to see that you can think, not memorize
8 Some cases require a combination of frameworks

• Prioritize your thoughts by forming a hypothesis

-Use the info provided and any clues from the interviewer
-Use your framework and info to form your initial hypothesis
8 Use info on the firm to determine when to share
- Some firms prefer hypotheses early, some later
8 Sometimes the answer is less obvious
- You may have to dig a bit first
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Take notes to organize your thoughts

• Organize your investigation per your framework

-Use the notes you have taken as a guide
8 Organizing notes as slides may be beneficial
8 Gives consultants a chance to help you if you go astray

• Divide your paper into multiple sections

-e.g. Three sections to capture overview, analysis, summary
-Add points to your summary as you go
-Your paper might look like this (for example):

Overview Analysis Summary

One • First level bullet First point
- Second level dash
Two Second point
8 Third level arrow
Three Third point

north

east

west
south

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Articulating your case

• It is important to demonstrate a structured,

logical, and thorough thought process

• Use your notes as you work through your case

-Layout quantitative data “Excel-style” when possible
-Show your calculations!

• Sample from 2004 Kellogg Consulting Case Book:

“Given that Firm X has experienced a decline in profitability, I am
going to begin my evaluation by investigating the various elements
that make up profit, namely revenues and cost. Since you
mentioned that Firm X has seen its product mix change over the
past year, I will begin by analyzing the firms revenues, focusing
first on pricing. It could be that a decline in Firm X’s average price
is causing its profits to suffer…”

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Summarize and recommend

• Always end your case with a succinct

recommendation
-Utilize your analysis to make a powerful statement
8 Include any assumptions necessary to come to your
conclusion
-Consider qualifying your recommendation: “Based upon
the analysis that I was able to do this far…”
-If there is no clear answer to the case when you finish,
indicate as part of your recommendation that before
settling on this resolution, you would recommend doing
X, Y, and Z
• Take a moment to prepare your thoughts
-Again, ask permission to do so and keep it brief
• Be prepared for the “elevator test”
-Have your main points ready and keep it concise
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Agenda

•Interview Overview
•Case
•Frameworks
•Fit
•Resources & Next Steps

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Seven main frameworks

• To be successful, you need to know these frameworks

• These are not MECE
• The main frameworks are:
1. Industry Analysis
2. Profit Improvement
3. Capacity Expansion
4. Market Entry
5. Acquisition
6. Investment
7. Market Sizing

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Framework 1 - Industry Analysis

• Easily recognized by cases that ask whether firms

should be in an industry, or by cases that lead to the
entire industry doing poorly

• Use Porter’s 5 forces (without saying so)

- In general, do not name specific frameworks (e.g. BCG Growth
Matrix, Porter’s 5)

• Generally, point will be to determine if this industry

has desirable economics
- If a conglomerate, point might be to suggest an exit from an
undesirable business to focus on other business…

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Framework 2 – Profit Improvement

• Another easily recognized case – listen for indication

on profit decline

• π = [(P – VC) * Q] – FC
- Use this expanded formula so that you do not miss distinction
between VC & FC
- Breakeven quantity = FC/(P – VC)

• Focus on factors that impact each of these variables,

listening carefully for clues
- e.g. “Firm X experienced difficulty in labor relations last year…”.
This is probably indicating a recent increase in VC due to wage
increases…

• Watch out for cost allocation in firms with multiple

products/divisions
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Framework 3 – Capacity Expansion

• Usually recognized by questions about firms increasing

their output potential

• Consider all alternatives: build, expand, outsource, etc.

• Estimate the potential benefit for expansion

- Don’t forget the risks: “what is demand dries up?”

• Considerations associated with new capacity: proximity

to suppliers/customers, transportation, labor cost &
availability, technology, etc.
- Determine which of these are important and focus on them

• Summary should be a Cost/Benefit analysis of options

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Framework 4 – Market Entry

• Recognizable by cases with firms seeking to expand

into a new region, business, or customer segment

• Recommended Approach:
1. Consider the industry & size the market
2. Understand the competition
3. Analyze customer needs to identify potential gaps
4. Determine if the company can meet these gaps
5. Evaluate methods of entry and barriers (if exist)
6. Size opportunity against firm’s goals (if possible)
- Positive NPV does not necessarily imply a go
- Consider risks

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Framework 5 – Acquisitions

• Probably the easiest to identify: “Firm X is thinking of

acquiring Firm Y…”

• Start looking for synergies

• Approach
- Understand potential acquirers business: “does this fit?”
- Assess rationale
8 Increase resources: capacity, distribution reach, broaden
product line, etc
8 Decrease costs: economies of scope, economies of scale,
learning curve
- Consider competitors response and possible org issues
- NPV analysis – compare costs vs. benefits
- Alternatives to this acquisition
8 Have they considered other targets, organic growth?
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Framework 6 – Investment

• Listen for indications of companies considering

purchasing new assets (e.g. “Firm X is considering
adding capacity to increase its output of Product A…”)

• Approach
- Understand the firms business
- Why is it considering the investment?
8 Need to be industry leader?
8 Required to stay/become competitive?
- NPV analysis
8 Including option value
- Consider competitors response
- Summarize with position on making investment or not

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Framework 7 – Market Sizing

• Recognizable as requests to determine the size of an

opportunity

• Market sizings are often a part of a broader issue

- e.g. “Company X, the world’s leading light bulb manufacturer,
obtained a patent for a light bulb that will never burn out.
Should they develop this product?”

• Approach
- Share clear assumptions and estimations with the interviewer
- In many cases, you will have to guess
8 No one who interviews knows how many light bulbs are sold
in the world…
- Rounding is usually okay – just be sure to indicate this to the
interviewer
- Remember to vocalize your calculations as well SFR 19
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Agenda

•Interview Overview
•Case
•Frameworks
•Fit
•Resources & Next Steps

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Fit

• Don’t overlook the Fit portion of the interview

• In first rounds, is usually 0-10 mins

- Some firms do not rely heavily on Fit interviews in Round 1

• In decision rounds, is more heavily stressed

- Often is one of the three interviews

• Be prepared to talk about:

- Your initiative & accomplishments
- Difficult situations/learning experiences
- Why you want to be a consultant (work and lifestyle)
- Your long-term goals, consulting and otherwise
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Agenda

•Interview Overview
•Case
•Frameworks
•Fit
•Resources & Next Steps

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Resources

• For more information on case interviews, please use

these sources:
1. www.vault.com – for general information on consulting and
consulting firms
2. Kellogg Consulting Club Website -
http://www.kellogg.northwestern.edu/student/club/consulting/
3. Kellogg Consulting Case Book – available on the consulting
website
• Other case books are available as well
4. Peers & Case Groups
• You will need to spend a lot of time with friends…

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Next Steps

• Learn the frameworks inside & out

• Practice cases with your peers

- Not uncommon to take 30+ cases to get in the swing of it

• Know your “story” for your fit interviews

• Get to know the firms

- Styles vary: do they want hypotheses up-front? Will they
conduct a fit interview in Round 1?

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Avoid the Common Pitfalls

• When setting up your framework view the case from the perspective of a
manager scoping out the modules for the consultants on her team.
- What buckets of information do you need Æ Your framework comes
from this
- Which are most critical Æ Tells you where to start
- What information can I fill in from my past experience Æ Leads you to
smart questions
• Don’t ask the interviewer where they want to start the case. Pick a place
and give a brief explanation why you are starting there.
• Don’t rapid fire questions. Lead each question with a transition from the
data you just got or a rationale for why you are asking the question.
• Before making a calculation walk the interviewer through the steps you
are going to take (Revenue = Market Share * Total Market Size). Then
take a minute to do the calculations on your paper and gut check your
answers.
• Use the results of your calculations to make a conclusion and transition to
your next question.

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