1. Peter Anderson, KPMG
Peter Purcell, Deloitte & Touche
Adapted from Consulting Interview Preparation Guide
Marquis, Stanford GSB Class of 2006
Case Interview Preparation Guide
3. 3
Building Relationships at your Target Firms
Attend as many events as possible for the firms that
interest you
Including school / company-wide, affinity groups, and regional /
office-specific events
At these events, talk to as many people as possible to make an
impression
Have a set of good questions to ask firm representatives
to show your level of interest in the company
Don’t ask about topics that can easily be found on the company’s
website
Get the contact information for each person with whom
you speak and follow up with an e-mail after an event
4. 4
Building Relationships at your Target Firms
Always make a positive impression when interacting
with company representatives
This includes when attending official company presentations and
dinners, during informal exchanges, and even at school
sponsored functions
Be on the lookout for deliberate attempts to see how you act when
you’re not “on the clock”
Assume that all interactions with a firm’s employees could affect
your standing, so be on your best behavior AT ALL TIMES!
5. 5
Resume Preparation
Without a prior banking or consulting background, you
will likely have to tailor your resume to appeal to the
consulting firms
Instead of focusing on the “must have” skills for your
previous industry, emphasize the following:
Analytical abilities
Experience in teams
Communications skills
Leadership / management experiences
History of achieving results
Use an “Additional Information” section to highlight
qualities / interests to differentiate yourself
6. 6
Answering the “Why Firm X?” Question
Show a specific desire to work at Firm X, rather than
simply a general desire to work in consulting
Learn the “ins and outs” of the company
Locations
Business areas of specialty
Reputation
Career progression and direction
Company culture
Research the firm’s competitors to find points of
differentiation
Give reasons that the firm is a good fit for you and that
you are a good fit for the firm
7. 7
Describing your Work Experiences
Resume “walk through”
Develop a coherent story for each step along your educational
and career path – it should not seem like a random walk
Some firms analyze the walk through as if it were a case – be
structure when describing the sections of your resume
Work experience stories
Allow firms to learn about your experiences in a variety of work
situations
Have four or five unique stories ready to share
− Led an initiative to a successful conclusion
− Had an impact on a team where you were not in charge
− Worked in a group where there was internal conflict
− Found success in a challenging environment
− Initiated change within an organization
8. 8
Generating a List of Questions
It is crucial for the candidate to develop good questions
to ask the interviewer at the end of the interview
Tips for creating strong questions:
Ask questions beyond standard travel and work-life balance
issues (interviewers hear these questions all the time)
Show that you have done some prior research about the firm
Ask questions that pertain to your own background
If given interviewer biographies, ask questions about their
backgrounds and how they were able to leverage them at the firm
9. 9
Generating a List of Questions
Brainstorm sample questions
Firm culture / office culture
Performance management
Specialist vs. generalist skills
Long-term employee development
Others??
11. 11
Interview Technique Basics
Keep clean and organized notes
Use two separate sheets (landscape oriented) for your
information, analysis, and calculations
Write in pencil and write neatly
− This may seem basic, but being able erase mistakes helps
produce clean and easy to read notes
− Some companies will collect your notes to get insight into how
you structure your thoughts
Use tables and graphs to demonstrate structured
presentation of information
Get comfortable with using “educated estimates” when
concrete data is not provided
12. 12
Interview Practice Basics
Practice makes perfect
Start with sample cases early to develop your own technique
Seek opportunities to participate in, or observe, case studies
Case guides can help build your case analysis skills
Run through cases with classmates and friends
Friends who’ve graduated before you; those with internships
Mock interviews and case study workshops
Don’t practice with company reps unless you’ve
developed a case approach
Being unpolished during a company case coaching session is a
wasted chance
Coaching sessions should sharpen your skills, not initiate them
13. 13
Math Tricks
Use round numbers wherever you can, especially when
you have the chance to pick the numbers
Do “ballpark” calculations if possible
It isn’t about getting the exact mathematical response
There is usually an allowable margin of error, so take advantage
of that
Calculations must be solved correctly
KISS
If you do calculations in your head, write your solutions down so
you can refer to them later
14. 14
Math Tricks
Rule of 10’s and Rule of ½’s
Break difficult numbers into either tens or halves to do quicker
calculations
Quick! What is 37% of 25,000?
− 25,000 / 10 = 2,500 10% of 25,000
− 2,500 / 2 = 1,250 5% of 25,000
− 1,250 / 2 = 625 2.5% of 25,000
From the above, you can approximate the answer
(2,500 * 3) + 1,250 + 625 = 9,375 37.5% of 25,000
15. 15
Math Tricks – Exercise
What is the annual U.S. market for chewing gum
Total number of consumers
Units sold
Revenue
Profit
16. 16
Math Tricks – Example
What is the annual U.S. market for chewing gum (total
number of consumers)
Estimate the total U.S. population (~300 million)
Segment the population based on some metric (hint: age is
usually a good metric)
Estimate the number of people in each population segment
Make a guess at the percentage of each segment that chews gum
[(100 m) * 80%] + [(150 m) * 60%] + [(50 m) * 20%] =
80 + 90 + 10 = 180 million
17. 17
Math Tricks – Example
What is the annual U.S. market for chewing gum (units
sold)
Start with the estimate of total gum chewing consumers
Make a guess at the number of packs an average consumer
purchases in a given week
Multiply the above two numbers to estimate the number of packs
sold each week
Multiply by number of weeks in the year (ballpark!)
180 million X 2 X 50 = 18 billion
18. 18
Math Tricks - Example
What is the annual U.S. market for chewing gum
(revenue)
Start with the annual number of pack sold
Make a guess at the average price of gum per pack (ballpark)
18 billion X $1 = $18 billion
19. 19
Math Tricks - Example
What is the annual U.S. market for chewing gum (profit)
Method #1: Annual revenue X estimated profit margin
$18 billion X 10% = $1.8 billion
Method #2: Unit profit X number of units
$1 per pack X 10% X 18 billion units = $1.8 billion
Use round numbers:
− Round, but reasonable (e.g., wouldn’t expect a 50% margin)
− It’s the methodology they want to see!
20. 20
Learning to “Think Business”
Structuring the case well and executing the math are
great, but… you need to get to the “so what”
Relationships within and between industries is important
in determining implications of business decisions
“Connecting the dots” in a business scenario can
demonstrate key business insights in a case analysis
21. 21
Learning to “Think Business”
Useful tactics for learning to “think business” include:
Reading business related periodicals (WSJ, CNN Money, Fortune,
etc.)
Watching business related programs (MSNBC, Bloomberg, etc.)
Analyzing business events to figure out the full set of implications
Example: OPEC nations decide to restrict the supply of oil
− Direct: US gas prices increase oil company revenues increase
− Indirect: Sales of SUVs decrease auto companies offer promotions
− Indirect: Airlines raise fares travelers fly less airline layoffs
− Indirect: Use of public transportation increases revenues for
business related to auto use decline
− Indirect: US government faces pressure US applies trade sanctions
22. 22
Key Business Concepts
Solvency / Profitability
Revenues
Costs
Industry attractiveness / market issues
Total size of market (in dollars)
Number of competitors
Minimum efficient scale
Market conditions and associated implications
23. 23
Key Business Concepts
Mergers and acquisitions
Financials of the deal (will it be profitable?)
Product, service, or support synergies
Market reaction
Culture issues
Marketing
Pricing
Placement (distribution channels)
Product
Promotion
24. 24
Key Business Concepts
Product introduction
Potential market for product or service
− Do consumers want it?
− Does market have to be developed?
Profitability of the product
− Cost to introduce
− Expected revenues and margin
Competitor reaction
− Can they copy it?
− Do they already have competing products
Does the new product fit your current company and product line
− Does it fit with the brand?
− Are there implications on existing products?
25. 25
Key Business Concepts
Other concepts that show deeper business insights
Labor issues
− Unionization
− Defined benefit programs
Long-term contracts
Revenue stream analysis
Costs
− Fixed vs. variable
− Direct vs. indirect
Supply / demand issues, and their affect on pricing
Operational issues
Culture and morale issues
27. 27
Case Execution Tips
Break case problems into distinct segments to create a
structured response
Use decision trees to set up the analysis
The case question serves as the root, and the problem components
serve as the branches
Once you’ve presented a roadmap, follow it!
Be sure that your problem components are “MECE”
− Mutually exclusive: No overlaps between issues
− Collectively exhaustive: Key issues are covered by the branches
28. 28
Case Execution Tips
Example: An automobile dealership is experiencing
declining profits
What could be the problem?
Why is profitability declining?
Revenues Costs
Price Quantity Fixed Variable
… … … … … … … … … … … …
29. 29
Case Execution Tips
Don’t be afraid to ask clarifying questions if you don’t
understand something
Assumptions are powerful; be clear when you use them
Be quick, but correct, when doing calculations (use
round numbers and ballpark estimates)
Be confident in your analysis
Be ready to change direction if guided to do so
30. 30
The First Four Steps
Summarize the question
Verify the objectives
Ask clarifying questions
Lay out your structure – it’s OK to ask for a few minutes
to collect your thoughts!
31. 31
Types of Cases
Entering a new market
Step 1: Investigate the market
− Would entering the market make good business sense?
− Assess market attractiveness
Step 2: If you decide to enter the market, determine the best way
to become a player
− Start from scratch
− Acquire an existing player
− Form a JV or strategic alliance with a complementary player
32. 32
Types of Cases
Developing a new product
Step 1: Analyze the product
Step 2: Analyze the market and develop a strategy
Step 3: Analyze potential customers and segments
Step 4: Develop project financial model
33. 33
Types of Cases
Pricing strategies
Step 1: Investigate the product
Step 2: Determine pricing strategy
− Pricing methodology:
○ Cost-based pricing: Analyzing product cost, estimating
margin, and generating sales price
○ Price-based costing: Analyzing market for price point,
costing out production to meet price point with desired
margin
− Supply / demand forces and price elasticity
34. 34
Types of Cases
Growth strategies
Step 1: Clarify objectives
− Nature of growth (organic, acquisitive
− Scope of growth (division vs. enterprise)
Step 2: Analyze and select growth strategy
− Increasing sales
− Expanding distribution channels
− Expanding product line
− Invest in major marketing programs
− Diversify products / services
− Acquire another firm
35. 35
Types of Cases
Starting a new business
Step 1: Investigate the market to make sure entering it makes
good business sense
Step 2: Analyze the project from a VC’s point of view
− Management team
− Market and strategic plan
− Business model and operational strategy
− Product and service footprint
− Customer segmentation
− Distribution channels
− Financing
36. 36
Types of Cases
Competitive Response
Step 1: Ask probing questions
− What is the competitor’s new product or service?
− How does it differ from ours?
− What has the competitor done differently?
− How has market share shifted?
Step 2: Analyze and select a response action
− Acquiring the competitor
− Merging with or acquiring another complementary player
− Copy the competitor
− Hire the competitor’s top management
− Launch marketing and PR campaigns to increase profile
37. 37
Types of Cases
Increasing sales
Step 1: Ask probing questions to gather information
− Market
− Product line
− Customer
Step 2: Analyze market factors and determine sales strategy
− Increase sales force (and presumably sales volume)
− Increase price point (or reduce price point)
− Increase marketing
− Enter new markets
− Expand customer base
− Improve customer service
− Rationalize product line
− Create seasonal balance
38. 38
Types of Cases
Reducing costs
Step 1: Ask for a breakdown of costs
Step 2: Identify and analyze cost drivers for significant cost
categories
Step 3: Analyze market dynamics and their impact on cost
drivers
Step 4: Benchmark competitors
Step 5: Determine cost reduction strategy
− Labor
− Facilities and real estate
− Capex
− Opex
− Other
39. 39
Types of Cases
Turnarounds
Step 1: Evaluate the magnitude of the problem
− Test the business model
− Analyze liquidity and understand debt covenants
− Review costing and pricing and develop top down cost model
− Review business model and market strategy
Step 2: Choose appropriate actions (and be creative!)
− Control cash and cut all non-essential spending
− Clean up the balance sheet
− Retain key staff and cut non-essential payroll
− Communicate / negotiate with key constituencies
− Suppliers
− Banks
− Tax authorities
− Customers
41. 41
Case Example Introduction
The following case samples are provided to facilitate
first-level analysis
For each case, practice setting up the high-level tree
that could be used to attack the problem:
Place the key question for the case at the root of the tree
Break the problem into a set of solvable components and assign
those components to the tree branches
Define the high level steps you would take to solve each
component
42. 42
Case Example
Your client owns a professional football team that has
just won the Super Bowl. Despite the Super Bowl
victory, the team finished the season with a financial
loss for the 5th
season in a row.
What could be the cause of the team’s profitability problems?
How would you go about developing recommendations to reverse
this past season’s financial performance?
43. 43
Case Example
You are the owner of a small, but relatively successful
towing company with a hand full of locations
throughout the Southeastern U.S. Two recent MBA
graduates have approached you about purchasing the
company.
How would you go about determining whether you should accept
the offer to sell your company?
44. 44
Case Example
Your client is an industry-leading security software
company that is considering acquiring a data
management software company.
How would you go about determining if your client should go
through with the acquisition?
45. 45
Case Example
Your client is a national chain of fitness centers with
locations in 35 major cities. The company is thinking of
creating a sub-brand of gyms for the small-town
market.
How would you go about determining whether your client should
launch the sub-brand?
What issues come into play when making this decision?
46. 46
Case Example
A publishing company that has traditionally created
news and entertainment magazines is thinking of
introducing a new sports-focused magazine.
How would you go about determining whether they should do it?
47. 47
Case Example
You have taken over as the Executive Director of a non-
profit that has had trouble raising enough money to
fund its programs.
What could the problems be?
How would you go about determining what might be done to
resolve the issues?
48. 48
Case Example
You have just accepted a job as the Superintendant of a
city school district where more than 90% of the
students have scored below proficient in English and
Math for the past 15 years.
How will you solve this long-standing academic performance
problem?
What resources might you need to implement your plan?
49. 49
Case Example
Your client is a beverage company that was excited to
see its sponsored cyclist win the Tour de France. That
is, until authorities announced that the cyclist had
tested positive for performance enhancing drugs.
What sort of damage control should the company do in light of
this event?
What could be the effects on the company’s brand as a result of
this discovery?
50. 50
Case Example
Your client is an enterprise software company that has
spent over $100 million developing a new product that
isn’t selling well.
What could the problem be?
How would you go about identifying what could be done to resolve
the situation?
51. 51
Case Example
A friend of yours is considering becoming a franchisee
of a national fast-food chain
What issues should she be thinking about in making her decision?
How would you go about determining whether she should open
the franchise?
53. 53
General Advice
Relax, and don't let yourself get too stressed out before
or during the interview – succumbing to nerves is the
quickest way to sabotage yourself.
Be confident during the interview, but be humble!
Be sure to have a strong list of questions to ask the
interviewers
This is your chance to gain insights from their experiences
It shows that you care enough about getting a position to ask
insightful questions
54. 54
General Advice
If you make a mistake, learn from it and move on.
Don’t let it fester in your mind
It will serve as a distraction later on.
Make sure the interviewer understands your thinking.
Gives the interviewer a chance to give you correct information if
you've got something mixed up
Gives the interviewer a chance to ask follow-up questions to gain
more insight about you as a candidate
Take time to think about what you're going to say before
you say it.
There is nothing wrong with taking 5 or 10 seconds to think
through something
Fight the urge to say the first thing that comes to mind
55. 55
Advice on Cases
Focus on structure from start of interview until the end
Initial case breakdown
Set up and execution of calculations
Final case wrap-up
Having a structured approach in a case interview is just
as important as getting the "right" answers
Think “big picture” whenever you can
Don’t dig too deep into the details until you have to
The big picture should be the foundation of your approach; it is
especially important when developing your initial case roadmap
and issue tree
56. 56
Advice on Cases
Make sure you bring out the "So what?" insights and
not just surface level ideas.
Simply reciting facts won't distinguish you from the pack
Drawing out insights about the case situation, and the larger
business context is key
Be as efficient as possible when doing the math on
your cases.
Writing out equations can use up a lot of time that would be better
spent doing case analysis and gathering data
Find shortcuts to get through your calculations quicker, such as
canceling zeros or recognizing patterns in numbers
Use the Rule of 10’s and Rule of ½’s
57. 57
Advice on Cases
Make your notes as neat and clear as possible.
It will help so you don't confuse yourself during interviews
Some firms collect your case notes to gain insights on how you
structured your analysis
Don’t become restricted by the explicit details of the
case – be creative!
There are many ways to solve a problem
Creativity can make a strong and lasting impression on the
interviewers
58. 58
Advice on Cases
Use assumptions to your advantage, but check first
If you need a piece of information during the case, ask for it
The worst that can happen is that the interviewer won't have the
information and you will have to make an assumption about it
The alternative to not asking is making an invalid or incorrect
assumption and going down the wrong path
In most cases, the interviewer will have additional data that can
help you sharpen your case analysis
59. 59
Advice on the Fit / Experience Discussion
The interview is not all about the case, the interviewer’s
cultural fit assessment is highly important!
Focus on your role – the interviewer wants to hear
about what you did
Have several stories prepared (I’d recommend at least
four) that cover a wide range of anecdotes about your
leadership experience (try not to repeat stories across
interviews on a single day)
Be concise and make sure you bring out only the most
important points