Case Interviews
The case interview is a unique and challenging process that enables the recruiter to assess the candidate’s analytical and creative skills. Typically, consulting and investment banking firms utilize the case interview at some point in the interview process, although more and more marketing and finance companies are adopting this strategy in their own recruitment efforts.
Depending on your prior experience with case interviewing, we recommend the following steps:
Case-In-Point Presentation
Marc Cosentino
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Types of Case Interviews
- Estimation Cases
- Business Cases
- Mini Cases
Estimation Cases
In estimation cases you are asked to come up with an "educated guess" of some number, such as the classic, "How much does a Boeing 747 weigh?" While the questions may sometimes seem "off the wall," estimation is an important skill to possess in consulting work. As a consultant, you will often have to make decisions based on incomplete or unavailable data, in which case it becomes important to generate reasonable estimates.
In these types of exercises it is not important whether your assumptions are right or wrong, but to make sure that your estimates are at least reasonable based on common sense. For example, if one of the assumptions you make is about the U.S. population, do not say that you assume it is 10 million. Estimation problems are based on logical reasoning applied to a number of known data points (your assumptions) to arrive at the desired answer. Since your logic is what is tested, lay it out clearly for the interviewer. Before you start making assumptions, tell the interviewer what your logic is going to be to figure out the answer.
Business Cases/Mini Cases
Business cases are generally longer than mini cases (20 to 30 minutes typically) and test your business skills in addition to your logical reasoning skills. Much of your core course work is applicable in these cases. Consulting firms rely heavily on general business knowledge and expect you to be able to integrate the concepts from your courses in analyzing a business situation.
A case interview is typically an interactive process and most likely the interviewer will volunteer additional information as the interview progresses or when you ask questions. It is important to gather as much information as you need. The amount of information you receive up front can differ greatly depending on the style of the interviewer and the type of case you get. It may make sense to jot down some quick notes to help you remember the pertinent facts. Other interviewers start out with a simple two sentence summary and expect you to probe for more information by asking thoughtful questions.
Remember, it is acceptable to ask questions. One of the most valuable skills of a successful consultant is the ability to ask the right questions. On the other hand, be careful not to spend too much time asking a lot of factual questions. It may become difficult for the interviewer to follow your logic and you may seem to be taking a shotgun approach to solving the problem. Keeping that in mind, always make sure that you think out loud so the interviewer understands how you are formulating your questions. The critical skill being evaluated in the business case interview is whether you can solve a business problem in a logical and coherent fashion. It is important not to ramble and jump from one hypothesis to the next, but rather to use a logical framework to attack the problem. Think logically about a good way to approach the problem. You can take some time on this. It is no problem to be silent for a moment while you consider your approach. This makes you look thoughtful and is much better than starting to ramble and run around in circles.
Some examples of frameworks and possible problems to which they apply are given below:
Income Statement: A simple income statement is often a very valuable framework to use. By analyzing profitability through its component factors such as revenues, cost of goods sold, and operating expenses, you can quickly pinpoint the direction in which to focus your analysis.
Four Cs: To analyze a company's strategy in terms of its chosen market position, you have to evaluate the different factors that will determine its success.
- Customers
- What do the customers want and need?
- How will we satisfy those needs?
- What is most important to them?
- How much will they pay for it?
- Competitors
- What are your competitors doing?
- What are their strengths and weaknesses?
- How are they meeting the customers' demands?
- What is their cost structure?
- Capacity
- What is your company's capacity in terms of financials?
- organization?
- production?
- marketing?
- What are your strengths and weaknesses?
- Costs
- What is your cost structure?
- How is overhead applied?
SWOT Analysis:
- Strengths: Used to analyze the capabilities of the company.
- Opportunities: Used to evaluate the company's environment.
- Weaknesses: Used to analyze the capabilities of the company.
- Threats: Used to evaluate the company's environment.
Four P's: Useful for marketing-related cases such as new product introductions, new market developments, and market share increases. Remember that the four P's are the implementation of a strategy that first depends on the selection of a target customer segment and a product positioning: Product, Price, Place, Promotion.
Seven S Framework: Useful in determining sources of competitive advantage for a company: Structure, Strategy, Skills, Staff, Style, Systems, Shared Values.
Porter's Five Forces Framework: Used to evaluate the attractiveness of an industry in terms of the ability to earn high returns: Barriers to Entry, Bargaining Power of Buyers, Bargaining Power of Suppliers, Availability of Substitute Products, and Level of Competition Among Firms.
Applying the Framework
When you have selected a framework to build your case on, you need to apply it. Lay out the framework for the interviewer and start analyzing it branch by branch. Listen carefully to any clues the interviewer may give you. When you go down the wrong path (or a different path from what the interviewer had in mind), you will often be redirected by comments from the interviewer. If you learn from the comments that the type of framework you have chosen does not fit the problem, do not be afraid to discard it and use another one.
As in any interview, it is important to be yourself and be relaxed when analyzing the problem. When you get stuck, you can summarize what you have found out up to that point. That helps the interviewer trace your line of thought and buys you some time to think about where to go next. Always think out loud so the interviewer understands your train of thought and state your assumptions. When you need a piece of factual information to help you along with your analysis, ask. The interviewer will realize its relevance if he or she is able to follow your logic and should be willing to volunteer the information.
Remember to:
- Gather information: Listen carefully and jot down notes as needed
- Clarify anything you do not understand: Ask questions
- Organize your analysis: Explain your thought process out loud so that the interviewer can understand the logic behind your reasoning
- Address the problem: Do not hesitate to use diagrams or flow charts to structure your thoughts; continue to work out loud; make assumptions but explain your reasoning; refer back to the facts; use simple, clear language
- Close the case: Summarize your analysis, be persuasive and clear, reach a conclusion or share possible solutions and next steps
Mini Cases
Mini cases are typically short and focus on a single problem. Often, the goal is to come to a solution rather than uncover the underlying causes of a problem. To solve these problems, it is recommended that you first define what the characteristics of the desired outcome would be. Then, brainstorm the ways that the company could deal with their problem; use this as an opportunity to be creative. Finally, tackle each idea in turn, drawing out the possible issues involved and setting them against the criteria for the desired outcome (i.e., to avoid high expenditures). After evaluating each of the ideas you have generated, choose a solution from among those that meet all of the desired criteria.
Preparing for the Interview
There is only one good way to prepare for a case interview, and that is PRACTICE! Use the resources available to you such as mock interviews, interview workshops organized by the FCC, and, most of all, your classmates. Get together with some of your friends interested in consulting and give each other cases. You may even want to tape your interviews on a camcorder so you can watch your body language and your reactions to the interviewer's comments and questions. Practice cases are available at the Feld Career Center, but it is also easy to make up some of your own. Almost everyone can use a company they have worked for or maybe a company that a friend has worked for as the basis for a business case. Another great source of practice material is the Wall Street Journal. Just read an article about a company and use it as a case. You can simply make up some of the facts to fill in the picture. Several consulting firms organize case interviewing workshops on campus. You can attend these or watch the videotapes if they are available. When interviewing with a firm, try to keep in mind the type of work that they do. Most likely, the interview cases will reflect the particular company's area of expertise. Talk to students or alumni who have interviewed with the firm before and ask what type of questions they were asked.
Resources
The following resources will also assist you in preparing for a case interview. All are available at the Feld Career Center; some can be purchased through the vendor directly:
Wet Feet Press (To order your personal copy, visit www.wetfeet.com)
Ace Your Case! The Essential Management Consulting Workbook
15 Questions: More Practice to Help You Ace Your Consulting Case
The Wharton MBA Case Interview Study Guide, Volume I
The Wharton MBA Case Interview Study Guide, Volume II
Vault Reports (available for FREE thru MiTRAC in the Vault On-Line Career Library)
Guide to the Case Interview
Career Guide to Consulting
Web Sites to Visit
AT Kearney - Case Interview Study Tips & PDF Boo
Bain & Company - Case Interview Information
Boston Consulting Group - Case Interview Preparation from BCG
Marc Cosentino - CaseQuestions.com - an interactive guide
McKinsey & Company - How to do well in a Case Interview
MIT - MIT Career Center Case Interview Information
Rice University - Rice University Includes Case Interviews by Field Association of Management Consulting Firms
Other Resources
MIT Sloan Management Consulting Club 1997-1998 Case Book and Interview Guide
Case in Point by Marc Cosentino
Primer to Consulting
