Case Interview Workshop

Simon-Kucher & Partners

Boston Office
One Canal Park, Cambridge, MA 02141
Tel. (617) 231-4500, Fax (617) 576-2751
e-mail: recruit-usa@simon-kucher.com
Internet: www.simon-kucher.com

Overview

1. Introduction
2. Acing case interviews
3. Sample case walkthrough

Source: SKP
Simon-Kucher & Partners 2010

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

Covered in this session

Not covered in this session

What is a case interview?

Regular job interview questions

What do employers usually look

for in interviews

Group interviews and other nontraditional interview types

Strategies and tips

Back-of-the-envelope and
estimation questions

Sample case walkthrough

Source: SKP
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Overview

1. Introduction
2. Acing case interviews

What is a case interview?

Strategies and tips
3. Sample case walkthrough

Simon-Kucher & Partners 2010

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What is a case interview?

 Definition: 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.
 Who uses case interviews: 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.
 Format of 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 here today.
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What do employers usually look for in case interviews?

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 to approach them.

Problem-solving
skills

Business sense

Analytical
capabilities

Communication

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 cases)?

As in regular interviews,
interviewers will be looking for
poise and fit: Do you carry
yourself professionally? Are you
engaged and confident?

Source: SKP
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Overview

1. Introduction
2. Acing case interviews

What is a case interview?

Strategies and tips
3. Sample case walkthrough

Simon-Kucher & Partners 2010

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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.
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Always make sure you understand the issue before proceeding

Understanding
the problem

Structuring and solving the problem

Making a
recommendation

 Listen carefully and take detailed notes

 Dont 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 objectives of the case

Objectives may or may not be stated if youre asked whether a business should take a
certain action, its 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.
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A good structure is as or more important than the correct solution

Understanding
the problem

Structuring the
problem

Solving the
problem

Making a
recommendation

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

Always start at a high level (dont 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 about 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. Dont 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 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 (5Ps, 3Cs, etc.) are
useful, but do not refer to them explicitly
dont give interviewers the impression that you
are just fitting cases into molds
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Walk through your solution with the interviewer

Understanding
the problem

Structuring the
problem

Solving the
problem

Making a
recommendation

 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
 Dont rush through math; write all the numbers out neatly and in an organized fashion

Label your calculations and figures (dont 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 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 isnt always
because you made a mistake.
Source: SKP
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Finish with a persuasive recommendation

Understanding
the problem

Structuring and solving the problem

Making a
recommendation

 Check that your recommendation addresses 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 dont make these too cluttered

Be confident and articulate when explaining your solution
 Be creative: Briefly address other considerations

Cases dont 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.
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Dos and Donts

Dos

Donts

Ask clarifying questions

Force-fit frameworks

State your assumptions

Get bogged down in the details

Organize your thoughts & notes

Go on tangents

Be concise and articulate

Freak out if you make an error

Practice, practice, practice!

Forget you are in an interview

Source: SKP
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Additional sources
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.
Books

Case in Point by Marc Cosentino

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

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Overview

1. Introduction
2. Acing case interviews
3. Sample case walkthrough

Source: SKP
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The Case: Smart Phone introduction

The VP of Pricing at a major consumer electronics manufacturer

enlists your help with a problemand 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 2010, 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

What were testing

Goals of pricing strategy

Product lifecycle

Penetration strategy

Price structures (upfront, rebates,
recurring charges)

Value vs. competition (products &
services)

Costs





Business sense
Creativity
Knowledge of our focus area
(pricing)

Other potential revenue streams

(downloads, data plan revenue sharing,
accessories)

Cannibalization

Capturing differences in customer
willingness to pay, and ways to do so

Source: SKP
Simon-Kucher & Partners 2010

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Part 2: Testing analytical skills

Assume for now that the marketing department, in conjunction with SKP,
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 have

Percent of market

What you should know

Maximum
willingness to pay

Goal: A price that is profit optimal (should

know from previous line of questioning)
Profit = Volume * (Price Cost)

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
purposes of this case, the product must have a
single price.

Source: SKP
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Part 3: Solving the problem

What you need to do

What were 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
Pricing
Strategy
Option

Profit
per
phone

Price

Volume

$800

$300

$500

20% * 1

$100

$600

$300

$300

60% * 1

$180

$400

$300

$100

100% * 1

$100

Cost

Asking for the right information

Handling basic math
Answering the question
Knowledge of the profit function
Problem solving

Profit
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

Source: SKP
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Part 4: Making a recommendation

What you need to address
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 were testing




Confidence in your work

Creativity and business sense

Ability to speak clearly and

concisely

I would recommend charging $600, since it

is the profit-optimal price for this phone.

Common Traps:
Disregarding the initial question and objectives

If, however, we have the flexibility to change

the price over time, I would launch at $800
and later reduce to $600.

Getting bogged down by the details

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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 companys 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 to do
Goal: Maintain profits
Multiple methods for arriving at the correct
answer
Volume must double to compensate for the
price cut

What were testing






Calculating a break-even point

Math skills / quantitative analysis
Logic
Making a persuasive
recommendation

Sanity check: Is doubling volume possible

given percent of market? What would you
recommend?

Source: SKP
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