Cracking the Case_Deloitte

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Copyright © 2004 Deloitte Development LLC. All rights reserved.

Cracking the CaseA Consulting Interview Primer



Copyright © 2004 Deloitte Development LLC. All rights reserved.1

Introductions

What is a case?

What are companies looking for in the case interview?

How do you approach a case?

Practice

Agenda




Analyze the situation

Identify key business issues

Summarize findings and takeaways

Outline next steps

What is a case?

A case is a hypothetical business issue or dilemma thatrequires you to:




Relevant to a broad spectrum of employment opportunities

(marketing, investment banking, consulting)

A critical component of the recruiting process at many firms

Offer you an opportunity to demonstrate your flexibility, your

analytical ability, your experience « and your creativity

What is a case interview?

Cases are a key part of the interview process




R ecent examples of case interview questions

What are the marketing implications of a partnership between

ChevronTexaco and 7-Eleven in which the gas would be supplied byChevron and the convenience store would be managed by 7-Eleven?

What strategy should a regional grocery chain pursue to

combat/survive against the imminent arrival of Wal-Mart Supercentersin the region?

What are all the uses you can think of for Hidden Valley Ranch saladdressing?

How would you forecast revenues for Herceptin, a protein-basedbiotherapy for metastatic breast cancer?

These questions were all asked in case interviews at Kellogg in 2004




What are companies looking for in the caseinterview?

Problem definition and solutionstructuring

Analytical ability

± Quantitative capabilities

± Dealing with apparent dead-ends

Ability to . . .

± Synthesize data

± Think creatively

± Defend hypothesis

Communication skills

± Listening

± Presentation / speaking

Business acumen

Confidence

Analytical Skills People Skills




How to crack the case

1. Understand the issue; ask clarifying questions as needed

2. Identify and test the underlying assumptions

3. State your null hypothesis

4. Select an appropriate analytical framework

5. Use the selected framework to identify key business issues

(Keep your eye on the clock!)

6. Summarize key issues and findings

7. Outline your final recommendation and the expected results or

impact




Choosing a framework

Choose a framework that fits the problem

Don¶t be afraid to create your own framework ± as long as it makes

sense

A framework provides structure to guide your analysis of the case and

helps you to identify a good solution

You will probably need a framework to come up with a good answer to a

case question




The key is selecting the right framework forthe problem

Competitive strategy± Porter¶s 5 (or 6, or 7) Forces

± SWOT Analysis (Strengths, Weakness, Opportunities, Threats)

Organizational

± 7-S (Strategy, Structure, Systems, Style, Staff, Skills, Shared Values)

Marketing

± 4 P¶s (Product, Price, Place, Promotion)

± 3 C¶s (Company, Competitors, Customers)

± Growth / Share Matrix

Profitability

± Profit = Revenue ± Cost

± Revenue = Price x Quantity

± Cost = Fixed Costs + Variable Costs




Logical structuring is essential

Logic should be MECE

± Mutually Exclusive, Collectively Exhaustive

± Structure of your argument is rigorous, non-overlapping, and complete

Structure your answer as well as your thinking

± Say what you¶re going to say, say it, and say what you said

± Don¶t lose sight of your structure when speaking

± Be consistent and convincing in the message you¶re trying to get across




Approach: Practical tips

Take a deep breath

± Take a minute or two to structure your approach

± Think before you speak

± Speak what you are thinking

Ask questions

± You have to know the question before you can provide an answer

± Information is generally provided only when it is requested

± Be ready to explain the logic behind your question if challenged

± The ability to ask intelligent questions is a key professional skill




Approach: Practical tips

Write it down

± Structure your notes in line with the selected framework

± Use charts and diagrams to better communicate your ideas

Show your reasoning± Talk the interviewer through your thought process

± You are being evaluated on the process as much as the answer




Chicago Symphony Orchestra

The Chicago Symphony Orchestra experienced a significantdecrease in ticket sales for its 2004 Summer Concert Series

compared to sales for the past three years. The series is held

at the Ravinia Festival Grounds in suburban Highland Park,

and has become a Chicagoland tradition. In planning for the

Summer 2005 Concert Series, the coordinators have been toldthat sales for the 2005 Summer Concert Series must increase

in order for the series to continue. The coordinators have

asked you to determine why sales were down for 2004 and

advise them as to how they can ensure a successful and

profitable Summer Concert Series for the year 2005.




Chicago Symphony Orchestra: Possible response

1) Understand the issue; ask

clarifying questions as needed

What went wrong?

What should CSO do in 2005?

2) Identify and test the

underlying assumptions

Quality of performance has

remained constant

Major macroeconomic factors

3) State your null hypothesis Lack of parking availability hasaffected ticket sales

4) Select an appropriate

analytical framework

Product, Place, Price, Promotion

Company, Competitors,Customers




Chicago Symphony Orchestra: Possible response

5) Use the selected framework to

identify key business issues

Ease of implementation

Extent to which it addressesthe problem

Level of benefit

6) Summarize key issues andfindings Offer a shuttle service fromvarious central locations

Create partnership with localtransit to offer discounted orfree transportation

Expand METRA service from

Chicago and other key cities

7) Outline next steps and your

final recommendation

Who to contact

How to implement

What¶s the timeline




Feedback

Problem definition and solution structuring

Analytical ability

± Quantitative capabilities

± Dealing with apparent dead-ends

Ability to . . .

± Synthesize data

± Think creatively

± Defend hypothesis

Communication skills

± Listening

± Presentation / speaking

Business Acumen

Confidence




Kellogg Premium Water

You have just been named Brand Manager of Kellogg Premium

Water. Your sales are declining. What would you do to reversethe trend?




Kellogg Premium Water: Possible response

Is the decline driven by a general category decline or a share declinefor Kellogg Premium Water?

Why is share or category declining?

± Substitutes

± Change in consumer habits

If category is declining, determine strategy to increase category usage If share is declining, determine why (explore 4Ps):

± Price ± Has price changed relative to competition?

± Product ± Has the quality of the product changed? Are there any competitiveproduct upgrades/new products?

± Promotion ± Have my promotions/advertising changed or decreased? Anynew competitive promotions/advertising?

± Placement - Have I lost any distribution? Have competitors gaineddistribution?




Case interviewing: Do¶s

Listen to your interviewer, take your time and make sure youunderstand the question

Ask questions to gather background information

Develop an approach and a hypothesis and bounce questions off your

interviewer to test them out

Show the interviewer what you¶re thinking ± talk through your thoughtprocess

Once you have identified some underlying problems, formulaterecommendations and be prepared to defend them

Finally, when closing your answer, define the problem, actions youwould take, why you would take them, and the expected results




Case interviewing: Don¶ts

Don¶t jump into your answer right away

Don¶t make assumptions without clarifying with the interviewer

Don¶t worry about the right answer, worry about the right approach

Don¶t explicitly or exclusively rely on canned frameworks

Don¶t appear flustered or frustrated




Questions?




Contact information

Jeremy Miller, Manager [email protected]

Documents

Cracking the Case_Deloitte