Indiana University

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Indiana University The Kelley School of
Business MBA1 Case Interview Workshop November
22, 2002
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Agenda

• Introductions
• Objectives
• Why case interviews
• Case interview basics
• General approach
• How to do well
• Standard methodologies
• Categories of case interviews
• Sample case interviews
• Break-out case interviews
• Lessons learned
• Recruiting schedule

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Introductions

• Duane Anderson
• Manager, Strategic Technology practice
• Chicago office
• MBA received from Indiana in 1999
• Will Wong
• Manager, Strategic Technology Practice
• Chicago office
• MBA received from Indiana in 1999
• Brad Robbin
• Manager, Strategic Technology Practice
• Chicago office
• MBA received from Indiana in 1999

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Introductions (contd)

• Jasmeet Singh
• Associate, Strategic Technology Practice
• Chicago office
• MBA received from Indiana in 2001
• Shiv Iyer
• Associate, Strategic Technology Practice
• Chicago office
• MBA received from Indiana in 2001
• Tom Stroud
• Sr. Business Analyst, Strategic Technology
  Practice
• Chicago office
• BS received from Indiana in 1999

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Objectives

• Learn what to expect in a case interview
• Learn how to prepare for a case interview
• Get an introduction to A.T. Kearney
• Although fit is a component of the A.T. Kearney
  interviewing process, we will not focus on the
  fit portion today

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Case Interview Basics
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Why case interviews? They

• Are snapshots of consulting engagements
• Simulate the communication between a client and a
  consultant as they approach a problem
• Identify how a candidate will deal with the
  variety of challenges on a consulting engagement
• Answer the question Do I want to staff this
  candidate on my project?

Overall, interviewers are looking for
intelligence, communication skills, and creativity
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Case interviews test the skills necessary to be a
successful consultant
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Candidates should use a logical process to answer
case questions
Listen To TheCase As Presented

• Clarify Major Issues
• Restate problems
• Ask clarifying questions
• Organize issues

For Each IssueDevelop One OrMore Hypotheses
Framework
Issue
Ask Key Questions To Validate OrInvalidate
EachHypothesis
Reformulate Hypothesis- or -Next Hypothesis
Key Questions
Hypothesis
Summarize YourConclusions
Conclusion
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Issue trees help structure the analysis by
identifying potential problem areas
Business Issue/Client Objective
Issue
Issue
Issue
Sub issue
Sub issue
Sub issue
Sub issue
Sub issue
Output
Output
Output
Output
Output
Output
Output
Output
Output
Work from high-level to low-level
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Identify key questions to test your hypotheses
Issue
Hypothesis
Hypothesis
Hypothesis
Key Question
Key Question
Key Question
Hypothesis
Hypothesis
Key Question
Key Question
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Taking notes can help keep your thoughts organized

• Take notes during your case interview if you
  think that it will help you and the interviewer
  trace your logic flow
• Using diagrams such as Fishbone, Issue Trees, and
  Causal loops can help organize your train of
  thought and give structure to your thinking
• If you must retrace your steps due to the flow of
  the interview, you will have documentation right
  in front of you to help answer these additional
  questions
• If you are going to take notes during the
  interview, make sure that you practice you will
  want to be comfortable taking effective notes
  without ignoring the interviewer and impacting
  your ability to communicate

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How to do well? Think creatively
Do
Dont

• Raise the multifunctional aspects broaden your
  thinking
• Adopt CEO/shareholder perspective
• Consider organizational and cultural issues
  think about real world issues
• Challenge conventions
• Lead to insight and resolution
• Stay in Scope

• Force-fit a standard/classical framework
• Speak before thinking carefully it is
  acceptable to pause to collect your thoughts
• Rely on finding a silver bullet
• Use buzz words
• Waste time on topics not related to the question
  asked

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How to do well? Send the right signals
Demonstrate

• Passion for learning give examples
• Resourcefulness
• Results orientation
• Enthusiasm

• Gain from adversity
• Confidence without arrogance
• Good business acumen
• Eye contact
• Poise under pressure

Can I put this candidate in front of my
client? Can this candidate own a complex problem
and deliver results?
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And when things arent going as well as youd
like...

• Recognize that you are stuck
• Ask for more information
• Pursue a different path

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Important things to remember

• A great answer contains the framework and
  process, not necessarily the correct solution
• Make sure that you understand the problem if
  you dont, be confident and ask clarifying
  questions
• Figure out the best way to dissect the problem
  into issues there is no one right way
• Examine/analyze each piece of the problem not
  all pieces will deserve the same level of
  analysis

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Frameworks
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Standard methodologies or analytical frameworks
can be useful tools

• Frameworks facilitate mutually exclusive,
  collectively exhaustive analysis of the issues
  (MECE)
• Frameworks provide structure to your analysis,
  communication, and summary
• You should focus on deriving insight through the
  use of a framework versus simply executing a
  framework
• You should practice frameworks so you can apply
  them in different situations

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Cost/revenue framework
Profit
Revenue
Cost

(
)
(
)


Price
Quantity
Fixed
Variable
X

• Price discrimination
• Changes in pricing structure
• Viability of pricing over time
• Discounts or couponing
• Competitors pricing

• Customer segmentation
• New/existing
• Loyal/switchers
• Channel restrictions or temporary disturbances
• Changing consumer demands

• Capital equipment
• Land
• Buildings

• Labor
• Materials
• Energy

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The Four Cs
Market Positioning ofXYZ Company
Cost
Customers
Competitors
Channels

• Break down the companys cost structure
• Fixed
• Variable
• Estimate competitors cost structure
• Understand trends in cost structures

• Segment the companys customer base
• New/existing
• Loyal/switchers
• Examine company profitability by segment
• How much do they purchase
• At what price

• Identify major competitors
• Traditional
• Unexpected substitutes
• What are competitors strengths and weaknesses
• Profits
• Costs
• Investigate market share

• Identify relative channel leverage
• Sources of advantage
• Sustainability
• Impact of channel strategies on market positioning

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The Four Ps
Product
Place (Distribution)
Promotion
Price

• What are the products differentiating
  attributes?
• Why does the consumer purchase this product?
• Unique packaging
• Superior cleaning power
• Affinity marketing
• cool people drink XX

• How is the product distributed to consumers?
• What new methods of distribution are coming
  available?
• Retail store
• Warehouse store, Sams Club
• Mail order
• Internet/electronic distribution

• What advertising medium is used to sell the
  product?
• What is the most effective method of getting the
  word out?
• Newspaper versus TV versus radio ads
• Retail placement aisle-end displays
• New media?

• How is this product priced?
• How are its competitors priced?
• Value pricing/ Everyday Low Price
• Premium pricing
• Price discrimination

How effective is this products marketing
campaign?
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Five forces market analysis
Barriers To Entry

• Economies of scale
• Capital costs
• Cost advantage of existing competitors
• Barriers to exit
• Patents

Market Rivalry
Buyer Power
Supplier Power

• Number and size of competitors
• Industry growth rate
• Product differentiation factors
• Industry margins/pricing

• Number and size of suppliers
• Switching costs/product differentiation
• Availability of substitutes
• Possibility of forward integration

• Significance of the purchase relative to cost
  structure
• Switching costs
• Purchase volume
• Threat of backward integration

Substitutes

• Relative price/value of the substitute compared
  to industrys product
• Cost of switching to substitute
• Buyers propensity to switch

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Sample Cases
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Business cases can be segmented into six primary
categories

• Industry analysis
• Market expansion
• Profit improvement
• Pricing
• Investments
• Wild card

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Industry analysis case studies
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Industry analysis case studies (contd.)
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Market expansion case studies
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Market expansion case studies (contd.)
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Profitability case studies
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Profitability case studies (contd.)
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Pricing case studies
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Pricing case studies (contd.)
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Investment cases
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Investment cases (contd.)
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Wild Card cases
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Wild Card cases (contd.)
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Summary of key points to remember

• Listen to the problem make sure you understand
  the real problem
• Remember that framework and process are king
  there is no one correct answer
• Think big picture first think top down
• Explain or identify approaches to collecting and
  analyzing data
• Think of and express all alternatives
• Revisit your assumptions Does what Im saying
  make sense?
• Listen to the interviewers feedback and its
  impact on your process
• Be coachableand respond to cues from your
  interviewer
• Integrate feedback quickly
• Be enthusiastic, confident, and relaxed you
  like problem solving

Remember the thought process is more important
than the right answer
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Case Interview Practice
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Case interview breakout format

• Break into 6 groups (of approximately 8)
• A.T. Kearney consultant conducts a mini-case
  interview with 1 student (4 students interviewed)
• 3 other students serve as the evaluators and
  provide constructive feedback
• Every student in the breakout should go through
  the case as an interviewee or evaluator
• Allow approximately 10 minutes for each case and
  5 minutes for feedback

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Case Interview Wrap-up
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Case workshop debriefing

• QA
• Review of lessons learned
• Feedback

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Recruiting Plans
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Indiana University interview schedule