Microsoft PowerPoint - Simon-Kucher_Case Interview Preparation.pptx

www.simon-kucher.com

Simon-Kucher & Partners

Case Interview Preparation

Agenda

 Introduction

 Acing case interviews

 Sample case walkthrough

Simon-Kucher_Case Interview Preparation.pptx 2

Source: Simon-Kucher & Partners

Our goals for this session: What we will and will not

cover

 What is a case interview?

 What do employers usually look for in interviews?

 Strategies and tips

 Sample case walkthrough

Covered in this document

 Regular job interview questions

 Group interviews and other nontraditional

interview types

 Back-of-the envelope and estimation

questions

Not covered in this document

Simon-Kucher_Case Interview Preparation.pptx 3

Agenda

 Introduction

 Acing case interviews

 Sample case walkthrough

 What is a case

interview?

 Strategies and tips

Simon-Kucher_Case Interview Preparation.pptx 4

Source: Simon-Kucher & Partners

What is a case interview?

Definition

Who uses case

interviews

Format of case

interviews

Scenario-based job interviews that test problem solving skills. In a case

interview, candidates are usually asked to solve a business challenge. The

challenge is often a toned-down version of a project that the firm has done in

the past.

Case interviews are most often used by consulting firms, as well as some

financial firms. This is because there is no single profile for consultants (or

bankers). The cases test basic business sense, analytical ability, and the

problem-solving capabilities essential to these types of jobs. In recent years,

other industries have also started to conduct case interviews.

In general, cases take about 20-30 minutes to complete. New information

may be given as the case progresses to prepare candidates for additional

questions from interviewer. There are many variations on case interviews

(such as being interviewed in groups), but they will not be covered in this

document.

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Source: Simon-Kucher & Partners

Often, a case is more about the process than getting the answer, so understanding what employers look

for in case interviews will help you know how approach them.

What do employers usually look for in case

interviews?

Communication

Analytical

capabilities

Business sense

Problem-solving

skills

 Do you make an effort to understand the key issues?

 Do you have a structured approach?

 Are you asking relevant questions?

 Did you take time to consider all the options (be creative) and their implications?

 Familiarity with basic concepts such as supply and demand

 Understand that there are a variety of business goals (profit, revenue, market share, brand

awareness, etc.)

 Awareness of how some current companies do their business (e.g. Google makes money

on advertisements, etc.)

 Can you do basic arithmetic?

 Can you read charts and tables?

 Do you read between the lines (implications of what you see)?

 How good are you at piecing together information from different sources (synthesis

and insight)?

 Are you articulate?

 Can you tell a compelling story (not just the

solution, but why you believe it is the best)?

 Can you organize information in a clear manner

(slide making in some case)?

As in regular interviews,

interviewers will be looking for

poise and fit: Do you carry

yourself professionally? Are you

engaged and confident?

Simon-Kucher_Case Interview Preparation.pptx 6

Agenda

 Introduction

 Acing case interviews

 Sample case walkthrough

 What is a case

interview?

 Strategies and tips

Simon-Kucher_Case Interview Preparation.pptx 7

Source: Simon-Kucher & Partners

Strategies: A clear and logical approach is the most

important factor

Understanding the

problem

Structuring and solving the

problem

Making a

recommendation

▹ Cases are extremely varied (though many often fall into standard categories

such as rolling out new products, uncovering problems in current process, etc.).

▹ There is no “one-size-fits-all” solution or strategy for doing well on a case study.

This is a helpful flow for many cases, but should be tweaked to suit your situation.

▹ A good approach can be more valuable than having the “right” answer.

Tip: Cases may be varied, but since they

are often based on actual projects, try to

do some background research on the

company while prepping for your case

interview.

Simon-Kucher_Case Interview Preparation.pptx 8

Source: Simon-Kucher & Partners

Always make sure you understand the issue before

proceeding

▹ Listen carefully and take detailed notes

▹ Don’t be afraid to ask clarifying questions if you did not catch something

 Repeating the basic premise of the case back to the interviewer is often helpful

 If you are not familiar with the industry, it is okay to ask how it works!

▹ Always clarify the objective of the case

 Objectives may or may not be stated – if you’re asked where a business “should” take a

certain action, it’s crucial to understand the goal in mind (e.g. profit? market share? etc.)

Tip: You may not be penalized for asking

clarifying questions, but not being able to

focus on the issue at hand and

continually going on tangents will leave a

negative impression.

Understanding the

problem

Structuring and solving the

problem

Making a

recommendation

Simon-Kucher_Case Interview Preparation.pptx 9

Source: Simon-Kucher & Partners

A good structure is as or more important than the

correct solution

▹ Use structure to make sense of your problem, objectives, and potential approaches

 Always start at a high level (don’t jump immediately to number crunching)

 Many books and online sources offer frameworks on the most common business challenges

 Existing structures/frameworks are good starting points and they save time, so familiarize yourself

with them

 Frameworks should not be blindly applied; think what is appropriate for your situation and adapt

accordingly

▹ Take a few moments to collect your thoughts and think through the problem

 It is okay to ask interviewers for a minute to think. Don’t feel pressured to say something

immediately

▹ Explain your plan for solving the problem – think out loud!

 Interviewers want to see that you are logical and can think through challenging problems.

Explaining your approach early on will let interviewers know if you are on the right track so they can

guide you if necessary.

 Clear communication of your approach and tactics is

one of the most important aspects of a case study!

Tip: Existing frameworks (4P’s, 5 Forces,

etc.) are useful, but do not refer to them

explicitly – don’t give interviewers the

impression that you are just fitting cases

into molds.

Understanding the

problem

Structuring the

problem

Solving the

problem

Making a

recommendation

Simon-Kucher_Case Interview Preparation.pptx 10

Source: Simon-Kucher & Partners

Walk through your solution with the interviewer

▹ Check if the interviewer has the information you need before making an assumption

 The interviewer rarely tells you everything you will need to solve the problem in the introduction

 If you need to make an assumption, attempt to be both logical and simple

▹ Don’t rush through math; write all the numbers out neatly and in an organized fashion

 Label your calculations and figures (don’t just scribble numbers in margins, etc.) so you can

backtrack if needed

 Double check your math and assumptions. Do they make sense?

▹ Make insightful observations: Go beyond just “doing the math”

 Make sure to think through your answers and draw connections to what you already know about the

case (e.g. market challenges from part 1 of the case), but always check with interviewers on these

assumptions

 Understanding implications of numbers is often crucial!

 Remember that big picture often involves

understanding trends, how different segments

behave differently, etc.

Tip: Once you have double-checked your

work, be confident. Sometimes

interviewers will ask you if you are “sure”. It

isn’t always because you made a mistake.

Understanding the

problem

Structuring the

problem

Solving the

problem

Making a

recommendation

Simon-Kucher_Case Interview Preparation.pptx 11

Source: Simon-Kucher & Partners

Finish with a persuasive recommendation

▹ Check that your recommendations address the original objective

 Cases often have multiple sections, and addressing the original objective often requires tying all

these pieces together

▹ Pitch your solution convincingly

 Summarize your findings and the reasoning behind your proposed solution (organize your solution

in a way that is easy to understand and tie back to the objective)

 Support your solution with evidence whenever possible

 In some cases, you may need to sketch a slide. Make sure you don’t make these too cluttered

 Be confident and articulate when explaining your solution

▹ Be creative: Briefly address other considerations

 Cases don’t always have a “right” answer

 It is ok to mention additional considerations and alternatives

if there is time, but do not let those distract from key issues

Tip: Good presentation skills are a

must for consultants. This includes

posture (no slouching) and the pace

of your delivery.

Understanding the

problem

Structuring and solving the

problem

Making a

recommendation

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Do’s and Don'ts

Do’s

 Ask clarifying questions

 State your assumptions

 Organize your thoughts & notes

 Be concise and articulate

 Practice, practice, practice!

Don'ts

 Force-fit frameworks

 Get bogged down in the details

 Go on tangents

 Freak out if you make an error

 Forget you are in an interview

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If you Google “case interview preparation” online, you will find many free sources available, from both

consulting company websites and independent sources. Your career center probably also offers

materials to help you. However, nothing will beat practice.

Additional sources

Books

 Case in Point by Marc Cosenino

 Vault Guides (to the Case Interview, to Consulting)

Online sources

 Consulting company websites offer practice cases and advice

 www.caseinterview.com – offers videos and frameworks

Simon-Kucher_Case Interview Preparation.pptx 14

Agenda

 Introduction

 Acing case interviews

 Sample case walkthrough

Simon-Kucher_Case Interview Preparation.pptx 15

The Case: Smart Phone introduction

The VP of Pricing at a major consumer electronics

manufacturer enlists your help with a problem… and

she needs the 15-minute solution. Walk her through

the issues as you see fit. Please ask for any

information that you need.

Situation:

The year is 2016 and the company is preparing to launch a new,

innovative smart phone. The phone contains many features that

other smart phones do not, and considerable hype surrounds the

expected launch.

Given this situation, how would you go about determining

the right price for this smart phone? (Just to price the

hardware, not the contract or other components)

What information would you want to have?

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Part 1: What information would you want to have?

Potential lines of questioning

 Goals of pricing strategy

 Product lifecycle

 Penetration strategy

 Price structures (upfront, rebates, recurring charges)

 Value vs. competition (products & services)

 Costs

 Other potential revenue streams (downloads, data

plan revenue sharing, accessories)

 Cannibalization

 Capturing differences in customer willingness to pay,

and ways to do so

What we’re testing

 Business sense

 Creativity

 Knowledge of our focus area

(pricing)

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Photo: COLOURBOX

Part 2: Testing analytical skills

Assume for now that the marketing department, in conjunction with

Simon-Kucher & Partners, has done a study to determine customer

willingness to pay and has found the following:

 20% of potential buyers would pay up to $800

 40% of potential buyers would pay up to $600

 And the remaining 40% of potential buyers would pay up to $400.

At what price would you launch the new smart phone, and why?

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Part 2: Setting up the problem

What you should have:

 Goals: A price that is profit optimal (should

know from previous line of questioning)

 Profit = Volume * (Price – Cost)

What you have

Percent of market

Maximum

willingness to pay

20% $800

40% $600

40% $400

Be creative!

An excellent idea would be to suggest

strategies (segmentation, product

differentiation, etc.) to extract the maximum

willingness to pay out of all customers.

Then the interviewer would explain that for

the purpose of this case, the product must

have a single price.

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Part 3: Solving the problem

What we’re testing

 Cost: Fixed + Variable

 Interviewer gives variable cost of $300, no

fixed costs

 Volume: Any market size will yield the same

answer! Choose a simple assumption: 1, 10

What you need to do

Pricing

Strategy

Option

Price Cost

Profit

per

phone

Volume Profit

1 $800 $300 $500 20% * 1 $100

2 $600 $300 $300 60% * 1 $180

3 $400 $300 $100 100% * 1 $100

Common Traps:

Not realizing that a lower price captures the

customers with a higher willingness-to-pay

Not asking for cost; calculating revenue

instead of profit

 Asking for the right information

 Handling basic math

 Answering the question

 Knowledge of the profit function

 Problem solving

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Part 4: Making a recommendation

What we’re testing

 What information have you been asked to

provide?

 What objective(s) are you trying to

achieve?

 Can you think of a concise, creative

scenario in which a different solution

might apply?

What you need to address

Common Traps:

Disregarding the initial question and objectives

Getting bogged down by the details

 Confidence in your work

 Ability to speak clearly and concisely

 Creativity and business sense

“I would recommend charging $600, since it is the

profit-optimal price for this phone.

If, however, we have the flexibility to change the

price over time, I would launch at $800 and later

reduce to $600.”

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Part 5: Bonus scenario

The company launched the smart phone at $600 and confirmed the

volume forecasts at this price point. A few months after the launch, the

VP of pricing comes back to you and she says that they would like to

drop the price on the phone. The company’s plan is to lower the price to

$450, but they want your advice first.

How would the volume you would need at $450 compare to the

volume achieved at $600 if the goal is to not sacrifice any profits?

(Assume customers remain at all price points)

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Part 5: Setting up the problem and making

recommendations

What we’re testing

 Goal: Maintain profits

 Multiple methods for arriving at the

correct answer

 Volume must double to compensate for

the price cut

 Sanity check: Is doubling volume possible

given percent of market? What would you

recommend?

What to do

 Calculating a break-even point

 Math skills/quantitative analysis

 Logic

 Making a persuasive recommendation

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