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Core Skills
75 minutesCLASSIC SkillsCommunication &StructuringMarket SizingExercise w/ Partners
Case Flow &IntegratedThinking
45 minutesVideo Highlights& Business CaseMBACASE PathStructuring, Analysisand Integration
Practice
60 minutesMini CaseDrills You Can Do
Agenda
4
MBACASE Events
AU CairoBerkeleyBocconi SDABoston CollegeCambridge JudgeCM TepperCase WesternCass LondonCEIBS ShanghaiChicagoColumbiaDardenDartmouth TuckDuke FuquaEmoryESADE BarcelonaGeorgetown
GeorgiaGeorgia TechG WashingtonHaskayne CalgaryHBSHECHong Kong USTIE MadridINSEAD FranceINSEAD SingaporeIowaIrvine CaliforniaIveyIU KelleyMarylandMcGill
TexasThunderbirdRotmanUSCU of WashUCLAUC DavisWake ForestWashington & LeeWhartonWisconsinWilliam & MaryYale
McMasterMichiganMichigan StateMinnesotaMITNU SingaporeNW KelloggNotre DameNYU SternOhio StateOwen VanderbiltOxford SAIDPepperdineQueen'sRiceSMUStanford
5
CASES are EVERYWHERE
ConsultingConsultingStrategy/ IT/ Operations
Market entry
Profit maximization
Declining market
Organizational redesign
MarketingMarketingNew product
Lagging product
New industry
Branding remedies
FinanceFinanceM&A transactions
Private equity buy-outs
Business sell-offs
Time value of money
IndustryIndustryAirlines
Health care
Internet / telecomm
Internal strategy
6
Industry /Marketing
Behavioral
Finance Consulting
Companies emphasize differentbehavioral and technical elements
• Show leadershipand positiveenergy
• Can achievelong term goalsthru cooperation
• Play well withothers
• Show grit,confidence,and fight
• Use insightsand savvy toWIN!!!!!!
• Get alongwith others
• Show ability tobe all things toall people
• Use data toprove pointsand persuade
• Enjoy and canlead others
Technical • “Think thru asituation . . .”
• Company andbusiness sense
• Industryawareness
• Acct./FinanceBasics
• Logic, deal andbusiness sense
• Memorized andon the spotanalytics
• Gen. businessknowledge
• Logic andbusiness sense
• On the spotanalyticalprowess
7
We’ll be working on skills you canuse in all your interview situations
Technical • “Think thru asituation . . .”
• Company andbusiness sense
• Industryawareness
• Acct./FinanceBasics
• Logic, deal andbusiness sense
• Memorized andon the spotanalytics
• Gen. businessknowledge
• Logic andbusiness sense
• On the spotanalyticalprowess
• Show leadershipand positiveenergy
• Can achievelong term goalsthru cooperation
• Play well withothers
• Show grit,confidence,and fight
• Use insightsand savvy toWIN!!!!!!
• Get alongwith others
• Show ability tobe all things toall people
• Use data toprove pointsand persuade
• Enjoy and canlead others
Industry /Marketing
Behavioral
Finance Consulting
8
But after today you’ll need togo deeper in certain areas
Technical
• Connect to theproducts
• Know the roleand your fit
• Embrace thelong term careerpath
• Know firmdifferences
• Highlightyour victories
• Show you areready tosacrifice
• Know officedifferences
• Find client-likeexamples
• Show you canflex and dealwith change
Industry /Marketing
Behavioral
Finance Consulting
• Know theproducts
• Know recentstrategies
• Know theindustry
• Mental math• Capex• Cash flow• Balance sheets• DCF• Debt/ equity• Working Cap• Depreciation• Goodwill
• Mental math• Growth rates• Present value• Slide reading• Break-evenanalysis
• Market sizingmath
• ROI
What do cases really test?
CommunicationCommunicationC
LogicLogicL
AnalyticalAnalyticalA
Social SkillsSocial SkillsSS
Integration &CreativityIntegration &Creativity
IC
Be answer first!
Answer First
CommunicationCommunicationC
LogicLogicL
AnalyticalAnalyticalA
Social SkillsSocial SkillsSS
Integration &CreativityIntegration &Creativity
IC
12
hallenge or Failure
ersuasion
anage or Lead
ndividual Contribution
nalytics
I
M
P
C
A
Create an IMPACT
eamT
Interview Logic by David Ohrvall. Property of MBACASE. Do not copy or distribute.
Show breadth and depth
Depth
Breadth
CommunicationCommunicationC
LogicLogicL
AnalyticalAnalyticalA
Social SkillsSocial SkillsSS
Integration &CreativityIntegration &Creativity
IC
TimeTime FinancialGoals
FinancialGoals CompetitorsCompetitors Product
QualityProductQuality DistributionDistribution
Our client wants to open a chocolate store.
Short TermShort Term
Mid TermMid Term
Long TermLong Term
Break EvenBreak Even
ROIROI
Profit MarginProfit Margin
BoutiquesBoutiques
Gift ShopsGift Shops
Ice CreamIce Cream
OrganicOrganic
CocoaCocoa
ConsistencyConsistency
CentralCentral
RegionalRegional
Does ourclient have a
deadline ?
Does ourclient have a
deadline ?
What is ourROI goal?
What is ourROI goal?
Do you havedata on
competitors?
Do you havedata on
competitors?
What are theproduct
standards?
What are theproduct
standards?
Will wemake on siteor distribute
it?
Will wemake on siteor distribute
it?
14
NYC Chocolate Store
OrdersOrders Pick & PackPick & Pack LoadingLoading DeliveryDelivery InventoryInventory
They need to ensure on-time delivery and profit.
StandardStandard
RushRush
LayoutLayout
AvailabilityAvailability
DataData
PrepPrep
Truck TimingTruck Timing
Load TimeLoad Time
RoutingRouting
OutsourcingOutsourcing
Time WastersTime Wasters
High FreqHigh Freq
Low FreqLow Freq
Are theorderssorted
properly?
Are theorderssorted
properly?
Where arethere
slowdowns?
Where arethere
slowdowns?
What are thebest in class
metrics?
What are thebest in class
metrics?
Whatimpactsdelivery
efficiency?
Whatimpactsdelivery
efficiency?
How is ouravailabilityby product?
How is ouravailabilityby product?
15
Amazon Prime
Comfort
Scale
Accuracy
Estimating
Build a data foundation
CommunicationCommunicationC
LogicLogicL
AnalyticalAnalyticalA
Social SkillsSocial SkillsSS
Integration &CreativityIntegration &Creativity
IC
Towels Unlimited Inc.Towels Unlimited Inc.
• Sales are $.5B. Profit margin is30%. Profit may have fallen 30%.
Candidates must be ableto manipulate simplenumbers.
TotalRev
TotalRev
TotalCostsTotalCosts
TotalProfitTotalProfit
$Goals
$Goals
$500M $350M $150M Stop theBleeding!
100% 70% 30% $45M~10% Rev
When asked, theyshould be ready to gointo detail.
• simple equations• break even analysis• reading charts and data
$ #%
17
Estimate first
Work toward,consistent“normal “
pre and postinterview skills
How am I coming across?
CommunicationCommunicationC
LogicLogicL
AnalyticalAnalyticalA
Social SkillsSocial SkillsSS
Integration &CreativityIntegration &Creativity
IC
Pull togetherfacts and data
quickly
Developinteresting and
applicablesolutions
Creativity!
Save your creativity,Be output focused
CommunicationCommunicationC
LogicLogicL
AnalyticalAnalyticalA
Social SkillsSocial SkillsSS
Integration &CreativityIntegration &Creativity
IC
CommunicationCommunicationC
LogicLogicL
AnalyticalAnalyticalA
Social SkillsSocial SkillsSS
Integration &CreativityIntegration &Creativity
IC
MarketSizing
&Estimation
MiniBusiness
Case
FullBusiness
Case
Pre & PostInterview
BehavioralQuestions
Let’s do a case!
21
Market Sizing/ Estimation Cases Counting
# of toothbrushes sold regularlyMeasuring
How many square feet ofwindows are in Seattle
Usage How fast do consumers go
through a bottle of hair spray?
Comfort withambiguity
You need to SPEAK
22
eep exceptions and next steps in mind
stimate quickly with round #s
ick your metrics
tate your assumptions
ssess your approach and answer
S
P
E
K
A
SPEAK is a guide
23
How much shampoo do people usein a downtown hotel each day?
tate your assumptionsS
We are counting hotel supplied shampoo onlyDowntown hotels have 20 floorsShampoo bottles from the hotel are 1 ounce15 rooms per floor75% average occupancyCustomers open 1 bottle per day
24
ick your metrics and approachP
Ounces or units of product usedApproach includes:
Population – Don’t use this one every timeObservation – Great for unfamiliar topicsTimeDistanceGeography
25
stimate quickly and with round #sE
20 floors x 15 rooms = 300 rooms300 rooms x 75% occupancy = 225225 x 1 oz bottles = 225 bottles per day
26
ssess your approach and answerA
225 1 ounce bottles =28, 8 oz bottles (visually makes sense)
Very simple approachHow else could you have approached it?
27
eep exceptions and next steps in mindK
60% of people use hotel shampoo225 x 60% = 135 bottles
Some people take extra bottles from hotelFloor lay-out may varyNext steps:
Look into wall mounted pumps (less waste)Consider 2 sizes of bottles
29
Merge, Acquire, JV
Growth Strategy
New Product/ Bus
New Market (Geo)
Strategy
Maximize Profit
Change Price
New Processes
Restructure Team
Ops & Org
Competitor Attack
Market Shift
External Forces
Most cases followa similar pattern
Most Common Business Cases
30
Qualitative
StartStart
End
Warmth &Client Ready
Warm-up
Insight!
Chart/Table
Chart/Table
DataDumpDataDump EstimateEstimate
EquationsEquations Solvefor XSolvefor X
Quantitative Depth &Analytical
Logic &Breadth
Integration &Creativity
Data
So what?
MBACASE Path
Qualitative
StartStart
End
Warm-up
Insight!
Chart/Table
Chart/Table
DataDumpDataDump EstimateEstimate
EquationsEquations Solvefor XSolvefor X
Quantitative
Warmth &Client Ready
1
1
Logic &Breadth
2
Depth &Analytics
3Integration &Creativity
6
5
Data
7
So what?
4
1. Qualitative and Quantitative
Qualitative
StartStart
End
Warm-up
Insight!
Chart/Table
Chart/Table
DataDumpDataDump EstimateEstimate
EquationsEquations Solvefor XSolvefor X
Quantitative
Warmth &Client Ready
1
1
Logic &Breadth
2
Depth &Analytics
3Integration &Creativity
6
5
Data
7
So what?
4
2. Move Into the Case
Pet Power VideoWatch this video using the link thatcame in the e-mail with these slides.
2. Pet Power Prompt
Pet Power VideoWatch this video using the link thatcame in the e-mail with these slides.
2. Pet Power Prompt with Data
Pet Power VideoWatch this video using the link thatcame in the e-mail with these slides.
3. Recap: Situation, Complication,and My Task
Pet Power VideoWatch this video using the link thatcame in the e-mail with these slides.
3. Clarify, Ask for a Minute, Plan
Qualitative
StartStart
End
Warm-up
Insight!
Chart/Table
Chart/Table
DataDumpDataDump EstimateEstimate
EquationsEquations Solvefor XSolvefor X
Quantitative
Warmth &Client Ready
1
1
Logic &Breadth
2
Depth &Analytics
3Integration &Creativity
6
5
Data
7
So what?
4
3. Create Your Plan
41
Develop a holistic way to thinkthrough problems
Strategy
Operations
OrganizationFinance
People
Systems
Processes
Measure
.
CA$H
D/E
SP E C I A L
T
Zone 1
Zone 2
Zone 3Zone 4
Zone 5
R
C
VolumeMixPrice
FixedVariable
Customer
44
Operations – revenue and cost
Strategy
OperationsZone 1
Zone 2
Zone 3Zone 4
R
C
VolumeMixPrice
FixedVariable
Customer
45
Organization – people, systems,processes and measurement
Strategy
Operations
Organization
People
Systems
Processes
Measure
.
Zone 1
Zone 2
Zone 3Zone 4
R
C
VolumeMixPrice
FixedVariable
Customer
46
Finance – cash, debt, equity
Strategy
Operations
OrganizationFinance
People
Systems
Processes
Measure
.
CA$H
D/E
Zone 1
Zone 2
Zone 3Zone 4
R
C
VolumeMixPrice
FixedVariable
Customer
47
External Forces
SP E C I A L
TZone 5
Suppliers
Public
Economy
Competitors Industry
Technology
Legal
Auditing
48
Maximum Value Model (MVM™)
Strategy
Operations
OrganizationFinance
R
C
VolumeMixPrice
FixedVariable
People
Systems
Processes
Measure
.
CA$H
D/E
SP E C I A L
T
Zone 1
Zone 2
Zone 3Zone 4
Zone 5
Customer
49
Use your plan to connect andexplain
Main Idea
Group A
•Why?
•Data?
•Questions?
Group B Group C Group D
Facts
Data
Plan
Pet Power VideoWatch this video using the link thatcame in the e-mail with these slides.
3. Present Your Plan
Pet Power VideoWatch this video using the link thatcame in the e-mail with these slides.
3. What about your PLAN?
Pet Power VideoWatch this video using the link thatcame in the e-mail with these slides.
3. What do you MEAN?
Pet Power VideoWatch this video using the link thatcame in the e-mail with these slides.
3. What about your DATA?
Qualitative
StartStart
End
Warm-up
Insight!
Chart/Table
Chart/Table
DataDumpDataDump EstimateEstimate
EquationsEquations Solvefor XSolvefor X
Quantitative
Warmth &Client Ready
1
1
Logic &Breadth
2
Depth &Analytics
3Integration &Creativity
6
5
Data
7
So what?
4
4. Dive Into Data
Pet Power VideoWatch this video using the link thatcame in the e-mail with these slides.
4. Talk Thru the Data (Handout A)
Qualitative
StartStart
End
Warm-up
Insight!
Chart/Table
Chart/Table
DataDumpDataDump EstimateEstimate
EquationsEquations Solvefor XSolvefor X
Quantitative
Warmth &Client Ready
1
1
Logic &Breadth
2
Depth &Analytics
3Integration &Creativity
6
5
Data
7
So what?
4
5. Find Insights
Pet Power VideoWatch this video using the link thatcame in the e-mail with these slides.
5. Find insights (Handout C)
Pet Power VideoWatch this video using the link thatcame in the e-mail with these slides.
5-6. Use Data
Qualitative
StartStart
End
Warm-up
Insight!
Chart/Table
Chart/Table
DataDumpDataDump EstimateEstimate
EquationsEquations Solvefor XSolvefor X
Quantitative
Warmth &Client Ready
1
1
Logic &Breadth
2
Depth &Analytics
3Integration &Creativity
6
5
Data
7
So what?
4
7. Integrate and Wrap-up
Pet Power VideoWatch this video using the link thatcame in the e-mail with these slides.
7. Give a Recommendation
Next Steps / Homework
1) Build my IMPACTstories
2) Buy a businessmagazine & practiceBlockBreakAskTwitter: davidohrvall
3) 15 market sizing cases,2 ways
4) Build an integratedthinking model
5) Pet Power, 2 times6) 10 profit trees –
different industries7) Global Nest, 2 times8) 20 Case Starts – check
out MBACASE.comvideos
9) 20 cases with friends10)10 cases with
strangers
I
CRACK THE CASE WORKSHOPSGlobal NestCase Skills: Case specific words, root causes, profit
T
Ask for NumbersAsk about data and numbers. You must test a specific analytical skill. Transition to the “Data Pool.”
1. (BREADTH) What else would you like to include in your structure? (e.g. ask this if there is an obvious gap in the candidates’ thinking).
2. (DEPTH) Let’s talk in detail about some of the areas in your structure. Could you walk me through the data you would need for each section in order to find out what is happening? (The candidate should be able to explore each section and lay-out his thoughts. To understand the shift in revenues or costs the candidate would need to collect about 6–12 months of data for each category).
3. (DEPTH) Global Nest has a policy that they try to stock 3 levels of product for each category. For instance, low, medium and high quality pillows or vases. Why would they do that? Be ready if asked:
� Different customer needs and budgets � Staying competitive, we have to offer wide variety � Try to upsell customers, e.g. switch from medium to high � Full range of product required (supplier demands that store have all 3 types)
4. (NUMBERS) Those are some good thoughts. I do have some data here that I need your help in interpreting. Please review this slide and let me know what you see. Hand out the chart. Keep it in plastic to avoid having the candidate write on it.
5. (NUMBERS) Please calculate the profit for each product type. Expect exact numbers.6. (NUMBERS) What’s going on here?
� Selling 3 lines by product type � Before, high margin lines were selling more units � After, low margin units are selling more � Revenue has stayed the same but profit is down
Request a RecommendationPush the candidate for a recommendation• Short Term:
• Quickly turn the store back to its original format.• Understand the employees thinking and retrain them.
• Mid Term:• “When we put low margin products in front of customers, they bought them, perhaps
we can push high margin goods in certain areas.”• Long Term:
• “Why are we selling products at negative margin?” You must carry all 3 products, but vendor negotiations are next month.
• Negotiate product prices so that the -10% becomes 0% at least. This will result in $350k savings, most of the $425 loss (profit dropped from $375k to –$50k).
Track & PracticeTrack weak areas and plan to practice and drill• Help the candidate track strong and weak areas. Reading through data and finding root
causes is a basic skill. Recommend other data handouts and practice reading the main insights out loud. The candidate should also practice quick calculations to boost speed.
A
R
Total Store Revenue: $10M
Total Store Revenue: $10M
BEFORE PROFIT DROP
Margin Revenue Breakdown Profit15% 40% $ 600,000
5% 25% $ 125,000
–10% 35% $ (350,000)
$ 375,000
AFTER PROFIT DROP
Margin Revenue Breakdown Profit15% 20% $ 300,000
5% 30% $ 150,000
–10% 50% $ (500,000)
$ (50,000)
High quality
Medium quality
Low quality
High quality
Medium quality
Low quality
7. (INTEGRATION) Why do you think there has been this shift to the low margin products? � People can’t find the products � High margin products have not been available (stock outs) � Customers’ budgets are tighter in particular for this location (likely tighter all over the US, but
more extreme here) � There’s been a change in promotion that has prompted people to buy the low margin products � Other?
8. (INTEGRATION) To wrap up, I need to tell you what the team found. At the location where profit is down, some employees had a bright idea. They thought it would be easier for the customers to find their products if they put a lot of the high volume sellers (low margin product) toward the front of the store. They thought it would be easier for customers to find everything and cut down on “silly” questions. Given the data and all these facts, what would you do?
Visit www.mbacase.com to learn more about the Crack the Case System book and C4: Crack the Case Crash Course
D
CRACK THE CASE WORKSHOPSGlobal NestHandout
Total Store Revenue: $10M
Total Store Revenue: $10M
BEFORE PROFIT DROP
Margin Revenue Breakdown Profit
15% 40% ?
5% 25% ?
–10% 35% ?
Total
AFTER PROFIT DROP
Margin Revenue Breakdown Profit
15% 20% ?
5% 30% ?
–10% 50% ?
Total
High quality
Medium quality
Low quality
High quality
Medium quality
Low quality
Visit www.mbacase.com to learn more about the Crack the Case System book and C4: Crack the Case Crash Course