CONSULTING CLUB

Agenda Structure Structure

Structure
And More Structure

Team Paul Bednarczyk Russ Needham

Nitin Malik
Chad Plumb Nathan Windom

Case interviewing Basic Steps

A GOOD APPROACH TO CASE INTERVIEWS INVOLVES FOUR STEPS

Clarify

Structure

Analyze

Conclude

Ensure complete understanding of the question/problem

Listen closely to problem definition Ask questions to improve understanding Paraphrase to confirm problem statement Some information may be less important

Develop a plan to solve Request information and Synthesis findings the problem test hypothesis
Describe your overall approach Break the problem into discrete pieces/issues State crisp hypotheses Use framework only if appropriate

Summarize the discussion Walk the interviewer through Develop overall your thinking recommendations Prioritize issues Discuss trade-offs State your hypothesis Ask for a few relevant facts State findings for your analysis Refine your hypothesis Probe further if necessary Relate back to problem statement Suggest next steps

Source: McKinsey

Case interviewing Structure

Unstructured thoughts are difficult to communicate and remember List of grocery items I need to buy
Apples

Milk
Bananas Spinach Carrots Grapes Butter Okra Eggs

Case interviewing Structure

On the other hand structuring seemingly random thoughts help you communicate better

Things I need to buy for grocery shopping

Dairy

Fruits

Vegetables

Milk

Butter

Eggs

Apples

Bananas

Grapes

Spinach

Carrots

Okra

Case interviewing - The Pyramid Structure

The Pyramid Structure helps to effectively structure communications

Governing Thought: States the answer to the question raised in the readers mind (hypothesis)

Key Line: Major points which, taken together prove the answer

Support: Data and facts which support the key line

Case interviewing Sample Problem

Sample problem How can we improve the rankings of Carlson School?

Case interviewing Sample Solution

Sample Structure of a problem we all can relate to

How can Carlson School Improve its rankings How

By improving the student quality

By improving the quality of professors

By improving the communication with the media Conducting the rankings

How

Improve the quality of the intake

Improving the quality of experience at school

Hiring better profs

Retain the good profs

Proving accurate data

Provide data on time

Case interviewing THE MECE

Always Remember MECE One phrase you cannot escape from in consulting.

Mutually Exclusive

Do any of the points overlap?

MECE
Collectively Exhaustive Have all possibilities been covered?

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Case interviewing New Market Entry (Sample Structure)

Key Question: Should we enter the market?

Should Budweiser enter cigarette market?

How attractive is the industry?

Can Budweiser make money in this market?

What are the risks to the existing business?

Market size

Growth

No. of players

Customer Product Segmentation/ Differentiation overlap

Sales force stretched too thin

Investment too big

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Case interviewing (Market Sizing)

Size of the cigarette market in US

# of people (in millions) # of smokers ( in millions) # cigarettes per # of cigarettes week per year ( 50 weeks) Total (in billions)

AGE

% that smoke

0-20

75

21-40

75

40%

30

30

1500

45

41-60

75

30%

22.5

20

1000

22.5

61-80

75

20%

15

10

500

7.5

Totals

300

75

Assumptions: 1. 2. 3. The population of USA is 300 million The life expectancy is 80 years The population is evenly distributed

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Case interviewing New Market Entry (Sample Structure)

Key Question: How should we enter the market?

How should Cargill enter seed business?

Do it alone Start from scratch

Acquire a company

Set up a JV

Time consuming & expensive

But, full control And no baggage

Risky Upfront premium and Integration costs

But, quick

Less Expensive

But, less control

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Case interviewing Profitability (Sample Structure)

EXAMPLE- STRUCTURING A PROFIT QUESTION

Price Revenues Volume

Etc.

Profits
Fixed Costs Variable

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Case interviewing M&A (Sample Structure)

The beaten down structure of profitability can be use in many situations

Should TATA Steel buy Chorus?

What are the synergies?

What are the risks of the acquisition?

Revenue

Cost

Prior experience

Acquisition Costs

Assumptions: 1. Goal is incremental profits This would be the case in 99% of cases

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Case interviewing Profitability (Increase Revenues)

How can Target store increase sales/revenues?

Increase Prices Increase Sales/Customer Sell more per visit Sell more stuff to the customers Increase the no. of visits

Increase Sales

New Markets Increase no. of customers

More segments in the existing market

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Case interviewing Profitability (Decrease Costs)

How can a manufacturing company reduce direct labor costs for widget production

Use cheap labor Decrease Cost/Hour Minimize overtime

Decrease direct labor costs/widget

Reduce no. of people per machine

Decrease no. of hours/ widget

Increase machine efficiency

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Sample Case A large fast food chain has hired consulting club team at carlson school to improve the companys profitability.

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Sample Case Interviews Company Specific

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 Position Business Results Consultant (Internal Consulting), Field Distribution Interview Process
Internship (1 Round) Behavior Based
o Round 1 (On Campus) Maybe a Business Case in combination with Behavioral Interview [2 interviewers]

Full Time (3 Rounds)

o Round 1 (On Campus) Behavioral and Resume Interview [ 2 interviewers] o Round 2 (Thrivent) Q & A, Four Rounds with a Business Case & Behavioral Interviews [several interviewers] o Round 3 (Thrivent) Psychological Evaluation (Leadership) [1 evaluator]

Special Comments
Values and community are important Really need to answer the question: Why Thrivent?

Sample Cases
Business Case You are a company that has an opportunity to purchase a chemical that makes cranberries redder and sweeter. Do you purchase it? Other cases have been very open-ended similar to this question.

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 Company: McKinsey & Co. Position: Associate

Interview Process
Full Time ( 2 Rounds)
o Round 1 (On Campus) 2 Case Studies & 2 Behavioral Interviews [ 2 interviewers] o Round 2 (Mckinsey Office) 3 Case Studies & 4 Behavioral Interviews [4 interviewers]

Special Comments
Prepare for the case interviews Practice, practice, practice!!!
o Focus on quality of cases rather than quantity o Practicing cases with the same person is not a good preparation

Dont just dedicate all your effort preparing for the case interview. You also need to spend time preparing for the behavioral interviews

Sample Cases
Business Case Sample cases can be found at www.mckinsey.com/careers

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 Position Internal Consulting, Strategic Business Development Interview Process

Internship ( 2 Rounds) Behavioral / Case Based
o Round 1 (On-Campus) Behavioral and Business Case (2) Interview [1 interviewer] o Round 2 (On-Campus) Behavioral and Fit Interview [2 interviewers]

Full Time ( 2 Rounds)

o Round 1 (On-Campus) Behavioral and Business Case Interview [1 interviewer] o Round 2 (3M Campus) Blitz Day Behavioral, Presentation, and Business Case Interview [3 interviewers]

Special Comments
Business cases primarily focus on new market analysis, new product development, segmentation, entitlement, sustainability Justify why 3M SBD vs. External consulting

Sample Cases
Business Case 3M develops a film that enhances the visibility of stop signs on major highways. Estimate the total market potential, identify the competitive landscape, and select key segments. Business Case 3M wants to enter a very competitive segment within the pet food industry in which the company has no experience. What challenges exist for 3M, how should they enter this market, and will it be sustainable in the long-term?

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 Position Internal Consulting, Global Strategy Interview Process

Internship ( 2 Rounds) Behavioral / Case Based
o Round 1 (On-Campus) Behavioral Interview [1 interviewer] o Round 2 (Thomson Campus) Behavioral (2) and Short Business Case (3) [1 interviewer]

Full Time ( 2 Rounds)

o Round 1 (On-Campus) Behavioral and Business Case (2) Interview [ 2 interviewers] o Round 2 (Thomson Campus) Behavioral and Short Business Case (2) [5 interviewers]

Special Comments
Need to convince them that you would be capable of presenting in front of executives, some quantitative analysis work experience, a little understanding of law field, sense of humor (need to show some personality and show that you are good fit with group)

Sample Cases
Business Case How would you segment the law market? Business Case Where would you locate a gas station? Business Case How would you launch a new line of Thomson legal services?

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 Position Internal Consulting, Strategy and Business Development Interview Process

Internship ( 2 Rounds) Case Based
o Round 1 (On Campus) Ethics Case, Business Case in combination with Behavioral Interview [2 interviewers] o Round 2 (On Campus) Business Case in combination with Behavioral Interview [1 interviewer]

Full Time ( 3 Rounds)

o Round 1 (On Campus) Ethics Case, Business Case & Behavioral Interview [ 2 interviewers] o Round 2 (On Campus) Business Case & Behavioral Interview [1 interviewer] o Round 3 (Cargill Campus) Fit Interviews with senior leaders [3-5 interviewers]

Special Comments
Ethics is a big focus area for Cargill and one needs to ace the ethics case Justify why Cargill SBD vs External consulting

Sample Cases
Ethics Case A competitor is building a new plant and your boss is pressurizing you to trespass the construction area and gather competitive information. What would you do? Business Case McDonalds is asking Cargill to buy a poultry farm in Russia? Cargill has identified a Russian company with good finances? Should Cargill acquire the Russian firm?

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 Position External Consulting, Strategy & Operations Interview Process

Internship ( 2 Rounds) Behavioral / Case Based
o Round 1 (On-Campus) Behavioral Interview [1 interviewer], Fit Interview [2 interviewers], Business Case [1 interviewer] o Round 2 (On-Campus) Behavioral & Fit [1 interviewer]

Full Time ( 2 Rounds)

o Round 1 (On-Campus) Behavioral Interview [1 interviewer], Fit Interview [2 interviewers], Business Case [1 interviewer] o Round 2 (On Campus) Behavioral and Fit (2) [1 interviewer]

Special Comments
Need to convince them that you are a good fit for their culture and that you can handle the lifestyle. Need to convince them that if you found yourself in an elevator with the client CEO you could present yourself and Deloitte in a professional manner.

Sample Cases
Business Case How would you restore a foundering hospital to profitability?

Business Case How would you control costs at a call center?

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