An Insider’s Guide to Consulting Interviews*

TS Strategy Group
www.pwc.com/strategycareers

*connectedthinking
Interviews are key components of the application and
selection process. They are not meant to be daunting
(by us anyways), but are intended to help match your
interests and capabilities with our needs and offering.

The purpose of this guide is to help you become

comfortable with the somewhat infamous case study
interview, central to many consulting firm’s interview
process. From the candidate’s perspective, the main
purpose of the case study interview is to show the
interviewer how you think and to prove your analytical
abilities. Questions are best answered by thinking about
the key issues of the problem, approaching the answer
methodically, and using some creative thinking.

In this guide, we cover the key techniques of the case

study interview and provide you with a selection of
sample cases for you to practice on. Our goal is that
when you are confronted with a case study interview,
you will be confident, fully prepared and be able to
perform to the best of your abilities.

Bear in mind that there may be more than one right

answer (or none), and the important thing is to display
the ability to think critically about the problem.

The TS Strategy Group

The TS Strategy Group in PricewaterhouseCoopers is
rapidly growing, combining the visionary, entrepreneurial
and friendly spirit of a small, niche consultancy with
the resources and reputation of the world’s largest
professional services firm.

We are focused on developing growth and M&A

strategies for our clients, which include: private equity
firms, premiere global corporations, and strong and
vibrant middle market players. We are currently hiring
high caliber individuals with the analytical and problem
solving skills needed to contribute to our practice in
New York.

To learn more, visit our website at

www.pwc.com/strategycareers.

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Contents

Introduction to Consulting Interviews 1

The Case Study 2
Market Sizing Questions 3
General Interviewing Tips 5
Case Study Practice Examples 6

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Introduction to
Consulting Interviews
Interviews can be daunting prospects, but if you know
what to expect you can relax and be confident that
you’ll do your best.
Remember that if you’ve gotten this far, the company in
question is interested in you and believes that you have
the potential to do the job. As such, interviews offer you
the chance to shine, and further convince employers of
your abilities.
If you wish to appear confident, assured and
professional during assessments, and therefore have
the best chance of success, good preparation is vital.
This guide will help you to relax on the day and let your
best qualities shine through.
Market Sizing Problems
The other common style of questions is known as
market sizing. Here you will typically be asked to make
an estimate of an abstract quantity such as the number
of taxi cabs in New York or the number of golf balls sold
last year in the US. In these cases, the interviewer is
more concerned with how you get to your final answer
than what your answer actually is. Market sizing cases
are often wrapped into a longer case study question and
can often be used to test your mental arithmetic abilities.
General Interview Tips
There are a number of good, general interviewing
tips which should be borne in mind when you are
interviewing. See our section on general advice for more
details on these.

Case Study Interviews

The main purpose of the case interview is to
demonstrate how you analyze a problem. So let the
interviewer hear your thought process and always
explain fully any assumptions you make.

There are two types of case studies. The most common

type of case is an interactive case. The interviewer will
outline a scenario for you and will provide additional
information on the company and/or the industry as the
interview progresses. The second, less common format
is the one-sided case. Here the interviewer will present
you with an initial set of facts and leave you to solve
the case and to state any assumptions that you make
along the way.

See our section on case studies interviews for advice

on how to approach case study questions. One of
the best ways to become comfortable with the case
study interview is to become familiar with the types
of questions and thinking required. At the back of
this guide, we have provided a set of cases for you to
practice on.

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The Case Study declining revenue, you should look at what is driving
revenue and how that may have changed). Continue
to probe down each area you want to cover but pay
What companies are looking for in case study
attention to hints from the interviewer as to when you
interviews
should move onto the next area and when you may
The main purpose of the case interview is to show
require additional information. Be sure to think out
the way in which you analyze a problem, so let
loud throughout your answer
the interviewer hear your thought process and any
5. Sum up your findings. Summarize your findings
assumptions you make. Case questions are designed to
where you can and draw your conclusions stating
test your analytical abilities under stress and when you
what assumptions you have made. Where necessary,
are presented with incomplete information. There can
suggest possible next steps for further analyzing the
be many “right” answers to a case study but there also
situation
is a right way to approach the case study.

Important—throughout the case, always understand

Try to relax during the case and see it as an opportunity
and stay focused on what the question is asking, or
to learn more about the drivers of success for a
what the key issues are
company or industry. Feel free to take your time and
to think silently. You are not expected to provide a full
Types of case study interviews
answer in just a few minutes and with no thought.
Case study interviews typically resemble the following
types of problems:
How to approach a case study
Below is a simple step by step guide to help you
Declining revenues
approach the case interview.
• A simple case problem where a company’s sales are
down and you have to figure out why. Your answer
1. Pause and think. Once the interviewer has outlined
may also require coming up with ideas for how to
the case, pause for a moment to think through
boost future sales
what you think the key issues are and how you will
Declining profits
structure and present your answer. You may want to
• Will involve a company where either sales are down,
think what simple model to utilize such as analyzing
costs or up or a combination of the two. Expect to
cost and revenue streams or a basic cost/benefit
delve into the revenue and cost sides of the company
analysis
to find out what is causing the declining profits. In
2. Ask questions. Be sure to ask questions about any
many cases, the interviewer may give you some
parts of the case you did not understand or are
direction and say the problem is related to revenue or
unclear about. It is vital to begin your answer to the
costs specifically
case with a clear understanding of the problem
• Be aware of situations where both revenues and
3. Summarize how you will proceed. Outline the way
profits are increasing but costs have also been rising.
in which you are going to answer the case to the
What may be happening here is that profit margins
interviewer
(the ratio of profit to revenue) may be declining. Again,
4. Provide your detailed answer. Once you have
expect to have to examine both the cost and revenue
decided on the approach you are going to take and
streams of the company
you have communicated this to the interviewer, you
Market Entry
should begin your in-depth analysis. Pick a route to
• A common form of case where either a company
begin your analysis (for example if you are looking at
is looking to enter a new geographical market or

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 is considering launching a new product. You may
be asked to estimate the size of the new market.
Market Sizing Questions
Additionally, you may be asked to think about issues
Market sizing questions, in their most basic form, ask
surrounding competition in the new market, potential
you to estimate the size of a particular market (hence
customers and the company’s own ability to enter the
the name). In the business world, this information
new market
can be especially useful when trying to gauge the
Investment decision
attractiveness of a market.
• A narrower form of case question. This could involve
evaluating whether a company should invest in a new
Within an interview, a market sizing question may be
manufacturing plant or purchase a new technology.
asked in a clear and simple form (such as how much
A simple cost benefit analysis can often be used to
is spent on domestic light bulbs in the US each year).
evaluate this decision
Alternatively, the question may be disguised as more
Acquisition opportunity
complex (do you think that xyz company should enter
• You may be asked to evaluate whether one company
the market for car insurance). What is really required
(the acquirer) should consider purchasing another
by the candidate for the complex type of question is
company (the target). Issues to consider may include
to peel away the outer layers to identify the core of the
how the target would benefit the acquirer, for example
issue—estimating how many car insurance products are
by adding new products, adding new customers or
sold each year.
providing access to new markets. Negative aspects of
the acquisition may involve the price of the target or
Recruiters use market sizing questions to test
integration issues
candidate’s number abilities, power of analysis and
• This case question may also be flipped round and
their common sense. For example, if you were asked to
positioned as an opportunity to sell a company or part
size the value of the annual domestic light bulb market
of a company
in the US, you would be required to make several
Strategic Outlook
assumptions about the market. (How many homes
• A broader case question that may give you the
are there in the US? How many rooms are there in the
opportunity to show some creative thinking. You
average house? How long does the average light bulb
may be asked to consider the strategic outlook for
last?). You would then be expected to make a few basic
a specific company or a specific market (such as
calculations given these assumptions.
the iPod or the company, Apple). Expect to cover
issues such as whether the market is growing, how
As you work through the problem, the interviewer will
competitive the market is, and threats to future
also be looking to gauge your common sense. (Did you
performance
assume that all houses in the US use the same types of
bulbs?).

A common mistake in market sizing questions is not to

answer the question. In the light bulb example above,
you are asked for the value of light bulbs sold. Many
candidates would stop once they have estimated how
many light bulbs are sold each year but this is not
what was asked. Only a simple additional calculation is
required to work out value (multiplying the total number

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of bulbs by an average price) but doing this final step
shows that you were listening (to the original question)
and that can you follow instructions—both important
workplace attributes.
Finally, at the end of a market sizing problem, try to offer
a sense check to the interviewer. For example, your
answer for the annual value of the light bulb market came
out at $5m. You can sense check this simply by saying
that there are about 100m households in the US, so if
each only bought one light bulb a year (which is a very
low estimate), the market would be worth $100m. You
now know that your answer is much too low and you can
go back and revisit your methodology and assumptions.
A few tips:
Market sizing questions can seem intimidating. Below
are a few tips to help lower the pressure and improve
your performance:
• Stick to round numbers. Even if you are math genius,
both you and the interviewer will find your answer much
easier to follow if you don’t over-complicate the math
• Explain your thinking. Market sizing questions are
about your ideas. The interviewer is concerned about
how you get to your answer, not what the final answer
actually is
• Write things down. If you need to, write down the key
parts of the question and your basic working. The
interviewer would prefer you answered the question
well using a pen and paper than badly doing all the
workings in your head
Example Market Sizing Questions:
How many bars of hotel sized soap are produced each
year around the world?
Hint:
Start by estimating the number of hotels in the world.
Simplify the question by just looking at hotels in major
cities and resorts in the world. Then make some
assumptions about the number of rooms per hotel and
room utilization rates.
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How many people ride the New York subway on a
weekday?
Hint:
Start with an estimate of the number of people in New
York. Then make assumptions as to what proportion ride
the subway. You may want to think about the different
groups of people in New York such as the split between
residents and tourists, workers and non-workers.
What is the value of all the postage stamps sold in the
US last year?
How many square feet of pizza are consumed by
college students each year?
How many car radios are manufactured in the US
each year?
How many games of soccer were played last weekend
on the East Coast?
How many boxes of breakfast cereal were consumed in
the US last year?
How many paper clips were sold in California last year?
How many golf balls are in the air at noon on a Saturday
in the US?
Estimate the manufactured cost of one Oreo cookie.
How many calculators were sold in Chicago last week?
How many miles are run by the population of the US in
any given year?
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General Interview Tips Get your head straight
Write a list of examples to illustrate your experience and
skills—from both an academic and an extracurricular
How do you look?
and work experience perspective. Having these at
First impressions aren’t necessarily everything, but they
the front of your mind in an interview can help you to
count for a lot—especially in an interview situation. It
speak more fluently and confidently. Focus on positive
sounds like common sense, but it’s surprising how often
examples that demonstrate something you succeeded
these simple rules are overlooked.
with or have learned from.

• Dress smartly but comfortably and ensure your shoes,

hair and nails are clean
• Greet your interviewer with a smile and a firm
handshake
• Maintain eye contact with your interviewer so that you
appear confident and relaxed (but don’t eyeball your
interviewer!)
• Relax, sit comfortably in your chair and try not to
slouch or fidget
• Crossing your arms makes you seem defensive. If you
aren’t using your hands to illustrate a point, keep them
on your lap

On the day:
• Whether it’s for a simple interview or a more involving
assessment day, make sure you’re not late. Take with
you everything you’ve been asked to bring, but don’t
have too much clutter with you

Try to stay relaxed and focused because excess

nerves will prevent you from performing at your best.
Remember that interviewers get nervous too! You
wouldn’t have got this far if you weren’t capable of
getting the job.

In an interview situation
• Listen carefully to the questions you’re asked
• Smile, show enthusiasm and energy
• Think before you answer
• Ask for clarification if you’re not sure what’s
being asked
• Try to ask two or three informed and intelligent
questions at the end of your interview
• Leave on a positive note, thanking the interviewer for
their time

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Case Study Practice
Examples
Example 1: Declining profitability
You have been asked to help a major producer of
distilled spirits in the United States. The main products
sold by the company are a selection of mid-priced
rums and two brands of mid-priced gin. Profitability has
been declining over the past few years, what could be
causing this?
Additional information:
The selling prices of the gin and rum lines are roughly the
same. The split of products sold has stayed pretty stable
at around two thirds rum, one third gin over the past few
years. Total sales for the company are growing at about
5% a year, about the same as the industry average.
As you analyze costs, you find out that production costs
have remained constant, advertising costs on average
have remained constant, distribution costs have
increased significantly.
Both products are sold throughout the United States. In
15 states, where alcohol is sold in small private owned
supermarkets and liquor stores, shelf space is very
expensive and trade promotions are vital. These stores
are also becoming less and less happy to hold inventory
which is driving up distribution costs as more deliveries
are needed.
In the other 35 states, liquor is only sold through state
regulated liquor stores. In these states, distribution
costs are much lower. Advertising of alcohol is much
more tightly regulated, and as such, advertising
spending is lower.
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Example 2: Decline in market share
A producer of specialty cheeses has hired you to help
find out the cause of its recent decline in market share.
Additional Information:
The company produces plastic wrapped specialty
cheeses at three price points (value, midrange and
premium). The market share loss is primarily in the
premium category. The cheeses carry a well
known brand.
The cheese is sold in grocery stores, delis and specialist
supermarkets. Research has shown that the delis,
grocers and supermarkets have maintained the same
amount of facings and space for the product.
Advertising and marketing plans have been largely
unchanged throughout the period.
The products in the premium category carry a higher
price and have slightly higher margins. Competitors
have maintained their prices during the recent loss in
market share.
There are three other main competitors in the specialty
cheese market. Your client has a 40% market share,
the other three share equally the rest of the market. The
overall market for specialty cheeses is growing. The
competition sells its cheeses to the same channels that
your client does.
Research on customer buying habits has shown that
while the typical profile of a premium specialty cheese
customer has not changed, customers feedback was
that there was a good deal of variability in the quality of
product produced by your client. Sometimes the product
was better than competitors, other times not. This was
causing customers to change to competitor brands.
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Example 3: Investment decision
A ground coffee company has seven manufacturing
plants in the Midwest. These plants service the whole
of the United States. Their plant in Kentucky is in need
of refurbishing. Which of the following is the best option
for this plant?
1. Refurbish the existing plant
2. Build a larger plant at the current location
3. Build a similar size plant at a new location
4. Build a larger plant at a new location
Hint:
The two key issues to consider are the size of the plant
and the location of the plant. You should analyze them
separately
Example 4: Expansion / Market Entry
A major airline is deciding whether it should add an
additional route from Paris to Chicago. How should the
airline go about analyzing whether the additional route
would be a good idea?
Hint:
Break the problem down into revenue opportunities and
expected operating costs.
Example 5: Manufacturing - Cost advantage
A plastic cup manufacturer has advanced a new
technique to improve its manufacturing process. As a
result of this, the manufacturing cost has been reduced
from $0.75 to $0.65. How can the manufacturer best
exploit its cost advantage?
Additional Information:
The manufacturer is the market leader with a
30% market share and supplies directly to major
supermarkets and to offices. The number two player
in the market has a 20% market share. The rest of the
market is made up of lots of smaller players.
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Hint:
Initially, the manufacturer can either choose to drop its
price or benefit from additional profits.
Example 6: Acquisition opportunity
You have been asked to assist a manufacturer of steel
rods to help them decide whether to acquire a small
local firm. What factors should be considered and
would you recommend the acquisition?
Additional Information:
Your client’s margins are 10%. The target firm is
profitable with margins of 5%. According to company
management, your client’s superior profit margins are
down to economies of scale and a stable labor force.
Both companies compete in the same geographical
region, the North Eastern US. The target’s customers are
typically local construction firms. Your client’s customers
are typically large commercial construction companies.
Research shows that demand for local housing is
growing but that commercial office market is slowing
down. The smaller firm has many strong relationships
within the local community.
Example 7: Strategic Outlook
Your client is the largest North American producer of
plastic packaging for fruit and vegetables, with a 75%
share of the market. You have been asked to assess
the strategic outlook for the company. How would you
attempt to assess future prospects for this client and
what recommendations might you make?
Additional Information:
Your client had 100% of the market until 18 months
ago. A local upstart company appeared in the South
East region of the US has taken nearly all of that market.
This company bought new technology from England
which has made this upstart’s factory highly efficient. As
a result they have been able to undercut you on price.
7
Your production costs are as follows. 25% for PE, a The costs of production (as a % of selling price) have
commodity plastic chemical. 30% manufacturing costs changed as follows:
including allocated fixed costs and labor and energy. 2005 2003
Distribution and storage costs 15%. Marketing and
Sugar 18% 16%
corporate overheads cost 10%. Your margins are 20%.
Water 10% 10%
The client’s factory is 25 years old and it continues to
Manufacturing costs 25% 25%
use the same technology that it used 25 years ago.
Distribution 5% 6%
Marketing 19% 21%
Example 8: Market Entry
Joe’s Pizza has decided to enter the home pizza Sales Force 7% 9%
delivery business in London. The market for home Profit before tax 16% 13%
delivery is currently dominated by Arthur’s Pizza. Joe,
the owner of Joe’s Pizza has asked your consulting firm The products are mostly sold through supermarkets and
to help his company analyze issues that will determine convenience stores. The two largest competitors both
its likelihood of success in the London Pizza market. feature a much broader line of soft drinks and together
How would you analyze the pizza delivery market? have 50% of the market.

Hints:
You may want to estimate of the size of the London
home pizza delivery market. This could be obtained by
knowing the population of London (about 7 million) and
making some assumptions about pizza consumption.
You may also want to know information about Arthur’s
Pizza such as its sales, total number of stores, and its
market share. If there are any market segments targeted
and served by Arthur’s this would also be good to know.
What types of product do they offer; how much do they
charge; what is the cost structure of their business and
what products are most profitable.
Example 9: Losing market share
A large soft drinks company has been losing market
share over the past few years, from a high of 25% to
23%. However, profit margins have been growing. What
could be causing this?
Additional Information:
The size of the soft drinks market has grown from
$70bn to $80bn over the last two years. The company
has not added or discontinued any products over the
past two years.
The sales force was cut to reduce costs although the
same number of supermarkets and stores are still
covered by the 2005 sales force.
Example 10: Technological Breakthrough
A small R&D lab on a south pacific island has developed
a super durable ink which means its can produce pens
that never run out of ink. The lab is now in a position to
license the product to a pen manufacturer. What will be
the effect on the global pen industry?
Additional Information:
The pen industry is dominated by three multinational
players. The three companies all sell similar products for
about the same price out of the same types of stores.
Around the world, there are several small regional
players a few high-end manufacturers. There have been
no major innovations in pens within the last 10 years.
Hints:
Think how the new technology may enter the industry.
Either one of the main players obtains the technology
or all the players obtain some version of this technology.

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Example 11: Declining performance The current plant is unionized and additional shifts
Your client manufactures specialized metal shelves out are not possible. Raw materials are purchased from a
of one plant on the West Coast and one plant on the government owned company at prices which are set by
East Coast. Profits have declined by 20% over the past a yearly contract.
two years although revenues have remained relatively
flat. What may be causing this decline and what could The cost structure for brick production is as follows:
you do to help reverse this trend? Raw materials 30%
Labor and other fixed costs 15%
Additional Information: Distribution 25%
The company’s sales are split as follows: 50% Sales & overhead 15%
to supermarkets, 25% to offices and 25% to the
Pre tax profit 15%
pharmaceutical industry. The supermarket and office
shelve divisions are located on the East Coast, the
Example 13: Declining Sales
pharmaceutical division on the West Coast.
You client manufactures AM/FM radios. You have been
hired to understand why their sales have declined
Revenues are up 10% for the office and
significantly over the last year. You have been asked
pharmaceuticals divisions but profits are down 10%.
to figure out why the decline has happened and make
For the supermarkets division, revenues are down 10%
some recommendations as to what to do about it.
and profits are down 30%.

Additional Information:
Labor is the major cost of production for these metal
Your client used to have a steady 35% market share,
shelves. The East Coast plant is unionized, the West
the second largest in the industry. It now has a 45%
Coast plant is not.
market share. AM/FM radios are now a mature market.
Your client manufactures a full range of AM/FM radios
Hint:
and is employing the most up to date technologies.
A profitability analysis may make sense looking at
revenues and costs. On the cost side, think about what
Over the last year, your client has been losing sales
are fixed costs and what are variable costs.
reps but loyal sales reps claim that their sales are at
record highs.
Example 12: Investment decision
You have been hired by the number one Spanish
Traditionally, your client targeted two customer groups,
producer of bricks. Your client currently has a 40%
under 30s and over 50s. In the last year, sales have
market share and believes it could have more. It
fallen the most among the client’s younger customers.
currently is running at 100% capacity at its one plant,
located just outside Madrid. You have been hired by the
The firm has lost several major retail clients due to
head of operations to help him decide whether to add
retailer’s inability to sell your firm’s products.
capacity to the current plant or build another plant.

Additional Information:
The price of bricks is set by market prices in Spain.
Land is available to expand the current plant and there
is also suitable land available near Málaga on the south
coast of Spain, about 300 miles away.

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Example 14: Declining profitability
Your client produces and sells a selection of mid-level
women’s clothing lines in several European countries.
The company’s brands are well established in their
markets. The clothes produced are similar in terms
of the raw materials required and production
processes used.

Performance over the last 10 years has been good

although profits have been shrinking over the last two
years. The CEO is thinking about changing her strategy
and is looking for your advice about what she should do.

Additional Information:
The mid-level women’s clothes industry is made up of
many small and medium sized companies and a few
large companies who own a portfolio of brands. Your
client has a manufacturing plant in each of the countries
it sells in and transportation costs are low.

Example 15: Low profitability

Your client is a leading producer of breakfast cereals.
Originally, the company started as a single product
line but has expanded its sales by adding additional
products. The production process can be simplified
as manufacturing and packaging. Management has
hired you as they are concerned that although sales
are growing, profits are not increasing at the same rate.
What advice would you give to your client?

Additional Information:
Costs: Raw material prices have fallen in recent years
but are expected to rise again in the near future. Labor
and fixed capital has increased per unit more than
proportionally over the last 10 years.

Revenues: The number of trade (private label) brands

has doubled over the past five years. Retailers are
increasingly demanding large introductory discounts for
new products. Your client has had a high failure rate for
new products.

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