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CONSULTING CLUB

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Agenda

Structure

Structure

Structure

And More Structure

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Team

Paul Bednarczyk

Russ Needham

Nitin Malik

Chad Plumb

Nathan Windom

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A GOOD APPROACH TO CASE INTERVIEWS INVOLVES FOUR STEPS

Ensure complete understanding of the question/problem

Listen closely to problem definition

Ask questions to improve understanding

Paraphrase to confirm problem statement

Some information may be less important

Clarify Structure

Develop a plan to solve the problem

Describe your overall approach

Break the problem into discrete pieces/issues

State crisp hypotheses

Use framework only if appropriate

Analyze Conclude

Request information and test hypothesis

Walk the interviewer through your thinking

Prioritize issues

State your hypothesis

Ask for a few relevant facts

State findings for your analysis

Refine your hypothesis

Probe further if necessary

Synthesis findings

Summarize the discussion

Develop overall recommendations

Discuss trade-offs

Relate back to problem statement

Suggest next steps

Source: McKinsey

Case interviewing – Basic Steps

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Unstructured thoughts are difficult to communicate and remember

List of grocery items I need to buy

Apples

Milk

Bananas

Spinach

Carrots

Grapes

Butter

Okra

Eggs

Case interviewing – Structure

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On the other hand structuring seemingly random thoughts help you communicate better

DairyDairy

Things I need to buy for grocery

shopping

Things I need to buy for grocery

shopping

VegetablesVegetablesFruitsFruits

ButterButter EggsEggs ApplesApples BananasBananas GrapesGrapes SpinachSpinach CarrotsCarrots OkraOkraMilkMilk

Case interviewing – Structure

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Case interviewing - The Pyramid Structure

Governing Thought:States the answer to the question raised in the readers mind (hypothesis)

Key Line:Major points which, taken together prove the answer

Support:Data and facts which support the key line

The Pyramid Structure helps to effectively structure communications

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Sample problem – How can we improve the rankings of Carlson School?

Case interviewing – Sample Problem

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Sample Structure of a problem we all can relate to

By improving the student quality

By improving the student quality

How can Carlson School Improve

its rankings

How can Carlson School Improve

its rankings

By improving thecommunication with the media

Conducting the rankings

By improving thecommunication with the media

Conducting the rankings

By improving the quality of professors

By improving the quality of professors

Improve the quality of the intake

Improve the quality of the intake

Improving the quality of experience at school

Improving the quality of experience at school

Hiring better profs

Hiring better profs

Retain the good profs

Retain the good profs

Proving accurate data

Proving accurate data

Provide data on time

Provide data on time

How

How

Case interviewing – Sample Solution

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Always Remember MECE – One phrase you cannot escape from in consulting….

MutuallyExclusive

Do any of the points overlap?

Collectively

Exhaustive

Have all possibilities been covered?

MECE

Case interviewing – THE MECE

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Case interviewing – New Market Entry (Sample Structure)

How attractive is the industry?How attractive is the industry?

Should Budweiser enter

cigarette market?

Should Budweiser enter

cigarette market?

What are the risks to theexisting business?

What are the risks to theexisting business?

Can Budweiser make money in this market?

Can Budweiser make money in this market?

Market sizeMarket size GrowthGrowth No. of playersNo. of players Product Differentiation

Product Differentiation

Customer Segmentation/

overlap

Customer Segmentation/

overlap

Sales force stretched too thin

Sales force stretched too thin

Investment too big

Investment too big

Key Question: Should we enter the market?

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Size of the cigarette market in US

AGE# of people

(in millions)% that smoke

# of smokers

( in millions)

# cigarettes per week

# of cigarettes per

year

( 50 weeks)

Total

(in billions)

0-20 75 0

21-40 75 40% 30 30 1500 45

41-60 75 30% 22.5 20 1000 22.5

61-80 75 20% 15 10 500 7.5

Totals 300 75

Assumptions:

1. The population of USA is 300 million

2. The life expectancy is 80 years

3. The population is evenly distributed

Case interviewing – (Market Sizing)

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Case interviewing – New Market Entry (Sample Structure)

Do it alone – Start from scratchDo it alone – Start from scratch

How should Cargill enter

seed business?

How should Cargill enter

seed business?

Set up a JVSet up a JVAcquire a companyAcquire a company

Time consuming &

expensive

Time consuming &

expensive

But, full control And no baggageBut, full control And no baggage

Risky – Upfront premium and Integration costs

Risky – Upfront premium and Integration costs

But, quickBut, quick Less ExpensiveLess Expensive But, less controlBut, less control

Key Question: How should we enter the market?

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Profits

Revenues

Costs

Price

Volume

Fixed

Variable

Etc.

EXAMPLE- STRUCTURING A “PROFIT” QUESTION

Case interviewing – Profitability (Sample Structure)

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The beaten down structure of profitability can be use in many situations

What are the synergies?What are the synergies?

Should TATA Steel buy Chorus?

Should TATA Steel buy Chorus?

What are the risks of the acquisition?

What are the risks of the acquisition?

RevenueRevenue CostCostPrior experiencePrior experience

Acquisition Costs

Acquisition Costs

Assumptions:

1. Goal is incremental profits – This would be the case in 99% of cases

Case interviewing – M&A (Sample Structure)

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How can Target store increase sales/revenues?

Case interviewing – Profitability (Increase Revenues)

Increase Sales/Customer

Increase no. of customers

Increase Sales

Increase Prices

Sell more stuff to the customers

Sell more per visit

Increase the no. of visits

New Markets

More segments in the existing market

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How can a manufacturing company reduce direct labor costs for widget production

Case interviewing – Profitability (Decrease Costs)

Decrease Cost/Hour

Decrease no. of hours/ widget

Decrease direct labor costs/widget

Use cheap labor

Minimize overtime

Reduce no. of people per machine

Increase machine efficiency

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Sample Case

A large fast food chain has hired consulting club team at carlson school to improve the company’s profitability.

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Sample Case Interviews – Company Specific

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Position – Business Results Consultant (Internal Consulting), Field Distribution

Interview Process

Internship (1 Round) – Behavior Basedo Round 1 (On Campus) – Maybe a Business Case in combination with Behavioral Interview [2 interviewers]

Full Time (3 Rounds)o Round 1 (On Campus) – Behavioral and Resume Interview [ 2 interviewers]

o Round 2 (Thrivent) – Q & A, Four Rounds with a Business Case & Behavioral Interviews [several interviewers]

o Round 3 (Thrivent) – Psychological Evaluation (Leadership) [1 evaluator]

Special Comments

Values and community are important

Really need to answer the question: Why Thrivent?

Sample Cases

Business Case – “You are a company that has an opportunity to purchase a chemical that makes cranberries redder and sweeter. Do you purchase it?” Other cases have been very open-ended similar to this question.

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Company: McKinsey & Co.

Position: Associate

Interview Process

Full Time ( 2 Rounds)o Round 1 (On Campus) – 2 Case Studies & 2 Behavioral Interviews [ 2 interviewers]

o Round 2 (Mckinsey Office) –3 Case Studies & 4 Behavioral Interviews [4 interviewers]

Special Comments

Prepare for the case interviews – Practice, practice, practice!!!o Focus on quality of cases rather than quantity

o Practicing cases with the same person is not a good preparation

Don’t just dedicate all your effort preparing for the case interview. You also need to spend time preparing for the behavioral interviews

Sample Cases

Business Case – Sample cases can be found at www.mckinsey.com/careers

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Position – Internal Consulting, Strategic Business Development

Interview Process

Internship ( 2 Rounds) – Behavioral / Case Basedo Round 1 (On-Campus) – Behavioral and Business Case (2) Interview [1 interviewer]

o Round 2 (On-Campus) – Behavioral and Fit Interview [2 interviewers]

Full Time ( 2 Rounds)o Round 1 (On-Campus) – Behavioral and Business Case Interview [1 interviewer]

o Round 2 (3M Campus) – “Blitz Day” – Behavioral, Presentation, and Business Case Interview [3 interviewers]

Special Comments

Business cases primarily focus on new market analysis, new product development, segmentation, “entitlement”, sustainability

Justify why 3M SBD vs. External consulting

Sample Cases

Business Case – 3M develops a film that enhances the visibility of stop signs on major highways. Estimate the total market potential, identify the competitive landscape, and select key segments.

Business Case – 3M wants to enter a very competitive segment within the pet food industry in which the company has no experience. What challenges exist for 3M, how should they enter this market, and will it be sustainable in the long-term?

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Position – Internal Consulting, Global Strategy

Interview Process

Internship ( 2 Rounds) – Behavioral / Case Basedo Round 1 (On-Campus) – Behavioral Interview [1 interviewer]

o Round 2 (Thomson Campus) – Behavioral (2) and Short Business Case (3) [1 interviewer]

Full Time ( 2 Rounds)o Round 1 (On-Campus) – Behavioral and Business Case (2) Interview [ 2 interviewers]

o Round 2 (Thomson Campus) – Behavioral and Short Business Case (2) [5 interviewers]

Special Comments

Need to convince them that you would be capable of presenting in front of executives, some quantitative analysis work experience, a little understanding of law field, sense of humor (need to show some personality and show that you are good fit with group)

Sample Cases

Business Case – How would you segment the law market?

Business Case – Where would you locate a gas station?

Business Case – How would you launch a new line of Thomson legal services?

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Position – Internal Consulting, Strategy and Business Development Interview Process

Internship ( 2 Rounds) – Case Basedo Round 1 (On Campus) – Ethics Case, Business Case in combination with Behavioral Interview [2 interviewers]o Round 2 (On Campus) – Business Case in combination with Behavioral Interview [1 interviewer]

Full Time ( 3 Rounds)o Round 1 (On Campus) – Ethics Case, Business Case & Behavioral Interview [ 2 interviewers]o Round 2 (On Campus) – Business Case & Behavioral Interview [1 interviewer]o Round 3 (Cargill Campus) – Fit Interviews with senior leaders [3-5 interviewers]

Special Comments

Ethics is a big focus area for Cargill and one needs to ace the ethics case Justify why Cargill SBD vs External consulting

Sample Cases

Ethics Case – A competitor is building a new plant and your boss is pressurizing you to “trespass” the construction area and gather competitive information. What would you do?

Business Case – McDonalds is asking Cargill to buy a poultry farm in Russia? Cargill has identified a Russian company with good finances? Should Cargill acquire the Russian firm?

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Position – External Consulting, Strategy & Operations

Interview Process

Internship ( 2 Rounds) – Behavioral / Case Basedo Round 1 (On-Campus) – Behavioral Interview [1 interviewer], Fit Interview [2 interviewers], Business Case [1

interviewer]

o Round 2 (On-Campus) – Behavioral & Fit [1 interviewer]

Full Time ( 2 Rounds)o Round 1 (On-Campus) –Behavioral Interview [1 interviewer], Fit Interview [2 interviewers], Business Case [1

interviewer]

o Round 2 (On Campus) – Behavioral and Fit (2) [1 interviewer]

Special Comments

Need to convince them that you are a good fit for their culture and that you can handle the lifestyle.

Need to convince them that if you found yourself in an elevator with the client CEO you could present yourself and Deloitte in a professional manner.

Sample Cases

Business Case – How would you restore a foundering hospital to profitability?

Business Case – How would you control costs at a call center?