Interview Workshop Document

1
INDUCTIS
How To Ace Your Interview Interview Workshop
April 2002
2
Agenda

• Introduction
• Fit Interview
• Case Interview
• Sample Cases

3
What Makes A Good Consultant

• Factors for Success "The key factors for
  success in the management consulting field are
  qualities of character, intelligence, judgment,
  the ability to express oneself persuasively,
  self-confidence, and self-discipline."
• Problem Solver "The consultant is a
  professional problem solver who likes solving
  problems for the thrill of it, for his/her own
  satisfaction. S/he likes to face a variety of
  problems frequently. S/he's not the kind of
  person who could sit for 20 years behind the same
  desk. "
• Team Leader "The professional consultant must
  plan and organize much of his/her own work, must
  readily grasp and assume effective control of
  situations which are inherently unclear, and must
  be able to lead people over whom s/he exercises
  no authority."

Source 1968 Interviews with management
consultants
4
Types Of InterviewsTypically the interviewing
process is broken into a fit interview and a case
interview. To receive an offer you must succeed
at both interviews.
Fit
Case
Offer
5

• The Fit Interview

6
OverviewThe main purpose of the fit interview
is to discover whether you will "fit" with the
firm's culture and people.

• To explore your personal integrity and ambitions
• To learn about your interests and to see if they
  match those of the firm
• To see whether you can "present" yourself in a
  coherent manner
• To ascertain your level of knowledge and interest
  in consulting
• To provide an opportunity for you to learn more
  about our firm

Objectives
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Character Traits Explored In The Fit Interview
Communication Skills
Analytic and Quantitative Skills
Leadership Ability
Characteristics
Organization
Teamwork
Computer Skills
Ethics and Integrity
8
Dos And Don'ts Of A Fit InterviewSince the fit
interview is designed to see simply if you match
well with the firm, it is difficult to put forth
a set of rules. However, there are some basic
dos and don'ts.

• DO
• Relax and be comfortable
• Express your own interests and expectations
• Convey a coherent picture of yourself and your
  skills
• Ask good questions
• Demonstrate your knowledge of the firm (i.e. its
  culture and history)

• DON'T
• Get defensive or let nerves overcome you
• Feign interest in subjects to impress the
  interviewer
• Tell stories that confuse the interviewer or
  provide confusing images of who you are
• Ask questions for the sake of asking questions
• Appear ignorant about the position for which you
  are interviewing or about the firm with which you
  are interviewing

9

• The Case Interview

10
OverviewCase interviews seem to be one of the
biggest sources of stress surrounding the
interviewing process, but they don't need to be.
If you understand what the interviewer is looking
for, case interviews can be quite manageable.

• To ascertain how you think through problems
• To determine your ability to structure a logical
  argument
• To test your analytic and quantitative skills
• To give you a flavor for the types of problems
  consultants work on

Objectives
11
General Hints For Approaching CasesNo matter
what kind of case you face, there are a few
guidelines you should always keep in mind.
General Tips

• Think first, then speak
• Be as clear and concise as possible (e.g. 1, 2,
  3)
• Ask questions, don't just give answers
• Make sure you are answering the problem being
  asked
• Establish the scope of the problem before digging
  deep in one area
• Always state your assumptions
• Don't be afraid to take notes if there are a lot
  of facts
• Be sure you explain your thought process/logic
  path
• Select a solution and justify it
• Don't forget possible alternatives
• Read the newspaper the day of your interview
  many times interviewers will pull their cases
  from the day's news

12
United States Basic StatisticsWhile you
certainly shouldn't go and memorize the census
report, there are certain statistics that you
should be familiar with in order to help you
solve cases. You should also be familiar with
general demographic trends (i.e. Gen-Xers vs.
Baby-Boomers and income distribution).
Population of the world 6.2 billion
Population of the U.S. 290 million
Number of households in the U.S. 105 million
Number of adults in the U.S. 210 million (18
yrs.) 200 million (25 yrs.)
Number of cars per household 2.5
Minimum wage approx. 5 per hour
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India Basic StatisticsWhile you certainly
shouldn't go and memorize the census report,
there are certain statistics that you should be
familiar with in order to help you solve cases.
Population of the world 6.2 billion
Population of India 1000 million
Number of households in India 180 million
Number of adults in India 530 million (18
yrs.) 440 million (21 yrs.)
Number of cars per Household 0.02
Minimum wage approx. 15 rupees per hour
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Interviewing StylesEvery interviewer will have
a different interview style. When explaining a
case you must feel comfortable with each of the
different approaches and be able to adapt your
approach.
Case Descriptions
Detailed Problem

• Detailed introduction of case
• Specific problem to be solved
• A few starter facts
• Many additional facts available, if asked
• Conversational feel throughout case interview

Conceptual Problem

• Brief introduction
• Very broad description of problem (e.g. poor
  performance)
• Few, if any facts available
• What do you think responses to many questions

Two Extremes
15
Types Of CasesThe types of cases you are likely
to encounter will generally fit into one of three
distinct groups.
Strategy
Build-Up
Types of Cases

• Special Cases
• Engineering
• Economics
• Data Analytics
• Miscellaneous

16
Strategy CasesStrategy cases generally involve
one or more of the following three issues, but
these certainly do not represent the universe of
possible scenarios.
Types of Strategy Cases
Marketing
Costs
Revenues
17
Frameworks For Approaching Strategy Cases The
Four P's While you probably do not want to make
it obvious that you are using an economic
framework to solve a case, employing the
underlying logic should help you structure your
argument and solidify your analysis. One popular
framework is the Four P's

• What product do you want to sell?
• What product are you able to produce?
• What advantages does your product offer?

Product

• What price must you charge to make a profit?
• What price are consumers willing to pay?
• What price are your competitors charging?

Price
The Four P's

• Where is there a demand for your product?
• Where are your suppliers located?
• What distribution channels are being used?

Place

• Who is your target audience?
• How do you reach them?
• How much do you want to spend on promotions and
  advertising?

Promotion
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Frameworks For Approaching Strategy Cases The
Four C's Another helpful framework in
approaching a strategy case is the Four C's.

• What do the customers want and need?
• How will you satisfy those needs?
• What is most important to the customers?
• How much will they pay for it?

Customers

• What are your competitors doing?
• What are their strengths and weaknesses?
• How are they meeting the customer's demand?
• What is their cost structure?

Competitors
The Four C's

• What are your company's capacities
• - financial
• - organizational
• - production
• - marketing?
• What are your strengths and weaknesses?

Capacity

• What is your cost structure?
• - fixed costs
• - variable costs
• How have your costs changed over time?

Costs
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Framework For Approaching Strategy Cases
Marketing Strategy Model While it is slightly
more complex than the previous frameworks, the
marketing strategy model provides an excellent
frame of reference for marketing cases.
Marketing Strategy Model
Start

• What is the relevant market?
• Who is buying and who is using the product?
• What is the buying process?
• How can I segment the market?

• What are the costs?
• What is the break even?
• How long is the payback on my investment?

Economics
Consumer Analysis
Marketing Mix

• How does my product fit with my other products?
• How will I differentiate my product?
• How does the product life cycle affect my plans?

• What are your company's strengths and weaknesses?
• What are your competitor's strengths and
  weaknesses?
• What is your relative size and position in the
  market?
• How do your resources differ from those of your
  competitors?

Competition
Distribution

• How can my product reach the consumer?
• How much do the players in each distribution
  channel profit?
• Who holds the power in each distribution channel
  available?

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The Build Up Case While most cases fall into
the strategy category, there are several cases
that are build-up cases. These cases are meant
to test your quantitative ability and general
logical reasoning skills.
Examples
How many credit cards are there in the world?
How many quarters are there in Yankee stadium
during a sold out game?
How many people in the U.S. wear earrings?
There are approximately 6 billion people in the
world. Lets assume that a third live in areas
where they cannot get credit cards (rural areas,
poverty stricken areas, etc.). Of the 4 billion
remaining lets assume three quarters are adults
(in the U.S. its 4/5, but we have a slower birth
rate than many countries). Of the 3 billion
adults a third don't carry credit cards (they
have bad credit, don't believe in credit cards,
are unemployed, etc.). Of the 2 billion adults
who carry credit cards, each carries on average
of 3 cards (Visa, Mastercard, American
Express). Resulting in 6 billion credit cards in
the world.
Yankee Stadium holds approximately 50,000
fans. There are approximately 150 additional
people working at the stadium. Of the workers
each either carry approximately 40 quarters or
have 40 in their cash registers to provide change
to customers for a total of 6,000 quarters. Of
the fans approximately 4/5 are male. Of that
40,000 half are like my dad and have about 10
quarters in their pockets at any given time for a
total of 200,000 quarters. Of the remaining
20,000 half have no quarters, and half have 6
quarters to ride the subway home for a total of
60,000 quarters. Of the 10,000 women half have 12
quarters for them and their husbands/boyfriends
to ride the subway home, and half have 1 quarter
to call someone in an emergency for a total of
65,000 quarters. For a grand total of 331,000
quarters in Yankee Stadium.
There are approximately 250 million people in the
U.S. Of those about half are women. Of the 125
million women 4/5 are adults. Of the 100 million
adult women about 3/4 wear either pierced or
clip-on earrings for a total of 75 million
people. Of the 25 million girls about 1/5 get
their ears pierced or start wearing earrings each
year and about 2/5 already have until the full
3/4 wear earrings by the time they are adults for
a total of approximately 15 million girls at any
given time. Of the 125 million men, 4/5 are
adults. Of the 100 million adult men about 1/20
wear earrings (based on my personal experience,
but obviously subjective) for a total of 5
million. Of the 25 million boys only about 1/50
have parents who will let them wear earrings for
a total of .5 million boys. For a grand total of
95.5 million people wearing earrings.
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Special CasesThere are a variety of other types
of cases which you may be asked. They will focus
on your ability to think conceptually, business
acumen, and creativity.
Examples
Engineering Case
Economics Case
Miscellaneous
What is the minimum number of 1 " x 1" x 1"
cubes needed to make a 10" x 10" x 10" cube?
Assume that the overhead cost to produce a
computer is 10,000 and the variable cost is
5,000 per computer, graph the variable cost,
fixed cost, total cost and total cost per unit.
Why are manhole covers round?
First assume that the cube is hollow, then
since each side must be 10 inches in dimensions
ten 1" x 1" x 1" cubes are needed for each side.
However, each corner piece will have 3 sides
showing, while each outside non-corner piece will
have 2 sides showing and each inside piece will
have only 1 side showing. Thus, we must break
down the problem into the three distinct types of
pieces. Corner Pieces A cube has 4 corner
pieces per each of its 6 sides. Since each
corner piece has 3 sides showing, only 8 cubes
(4 x 6 3) are needed to create the
corners. Non-corner outside pieces For the
non-corner outside pieces a total of 8 (10 - 2
corners) are needed per direction. Thus, since
there are 4 directions per side a total of 32 (8
x 4) cubes are needed per side. Since each
non-corner outside piece has two sides showing a
total of 96 cubes (32 x 6 2) are need to
create the non- corner outside pieces. Inside
pieces A total of 64 inside corner cubes are
needed per side to create the inside pieces.
(i.e. 100 - 4 corners - 32 non- corner
outside). Since, there are 6 sides a total of
384 cubes will be needed for the
inside. Total Thus, 488 1" x 1" x 1" cubes (8
96 384) are needed to create a 10" x 10" x
10" cube. Alternative Solution Subtract the
inside cubes from the volume (i.e. 10 x 10 x 10 -
(8 x 8 x 8) 488 cubes).
So that they can't fall in. To provide the
greatest opening width for the least total
opening area and therefore save on material costs.
Fixed Variable Costs
60,000
50,000
40,000
30,000
Variable Cost
20,000
10,000
Fixed Cost
0
0
1
2
3
4
5
6
7
8
9
10
Volume ( Computers)
(/Unit)
0
1
2
3
4
5
6
7
8
9
10
Volume ( Computers)
22
Data Analytics CasesData Analytics cases will
address specialized statistics, mathematics and
logical knowledge
Examples
Probability and Statistics
Likelihood Estimation
Mathematical
A red and a white die are rolled. Let event C
5 on red die and event D sum of dice 11.
The 36 outcomes have equal likelihood. Are events
C and D independent?
Let X1, X2, ,XN be a random sample from
geometric distribution with p.m.f. f(xp)
(1-p)x-1, x1,2,3 What is the maximum likelihood
estimator of p (derive)?
Without finding their numerical values, which is
greater, e(pi) or (pi)e?

• Of the 36 events
• - 6 are favorable to C,
• - 2 are favorable to D,
• - and 1 is favorable to C n D. Therefore
•  
• P(C) P(D) (6/36)(2/36) (1/108) ? (1/36)
  P(C n D)
• Hence, dependent events

• e(pi)
• Put x pi/e - 1 in the inequality ex gt 1x
  (xgt0)

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Data Analytics Cases - Sample SAS CaseSAS
cases are designed for data analytics candidates
to test basic SAS knowledge as well as approach
towards datasets
SAS Dataset
Sample Problem
Create a new variable, which contains the means
over time for each company
SAS dataset with yearly revenues by state for
three telecommunication companies

• Problem Rationale
• A simple problem that would be given to anyone
  that claims they have experience with SAS, or
  those that admit to having moderate experience.
  There are many ways of getting to the answer, but
  what is critical is whether candidates start
  running loops over the data or use some of SASs
  in-built basic functionalities, such as PROC
  MEANS, SUMMARY, SORT, DATA step, etc.
• Usually, this type of a problem can be easily
  extended to become more involved, but this is
  always one of the first steps.
• This type of a question reveals how candidates
  think about datasets.

Fresh BAs are not expected to have SAS
knowledge. Sample case included for illustration
only
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If You Get In A Jam

• Pause to collect your thoughts. Remaining silent
  is better than blurting out an incoherent thought
• Recount what you already know to the interviewer.
  By reviewing what you know about the case, the
  next step often becomes more clear
• Don't give up. Interviewers are judging your
  poise and maturity in addition to your
  problem-solving skills

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Summary There is no single right answer
... but there are inappropriate approaches

• Force-fitting a framework that just doesn't work

• Ignoring or forgetting important facts

• Defending impractical solutions

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• Additional Resources To Consult Before Your
  Interview
• Ace Your Case! The Essential Management
  Consulting Case Workbook
• - Wet Feet Press 1-800-926-4JOB
• Competitive Advantage
• - Michael Porter
• Competitive Strategy
• - Michael Porter
• The Consulting Resource Packet
• - Wharton Career Development Placement (Packet
  13)
• Harvard Business School Career Guide Management
  Consulting
• - Harvard Business School Press 1-800-545-7685
• The Ten Day MBA
• - Steven Sillbiger
• Case Interviews at Consulting Firms Websites
• - http//www.mckinsey.com/careers/apply/solveacas
  e/index.asp
• - http//www.bcg.com/careers/interview_prep/pr
  actice_cases.asp
• - http//www.bain.com/bainweb/join/interview/p
  ractice_overview.asp
• Management Consulting On-line

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• Sample Cases

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Special CasesThe following sample cases have
been compiled from Kelloggs, Sterns, and Tucks
Consulting Club Guides to management consulting
cases. They are intended to assist you in
preparing for your case interview. The suggested
approaches are by no means the only approach you
could take, but rather are the ones authors of
these guides thought were most appropriate.
Case 1
Case 2
Case 3
You are visiting a new client who sells golf
balls in the United States. Having had no time
to do background research, you sit on the plane
wondering what is the annual market size for golf
balls in the U.S. and what factors drive demand.
Your plane lands in 15 minutes how would you go
about answering these questions?
Why is there no light beer in the UK?
You have been called in by a Big 4 accounting
firm that is experiencing declining profitability
in its auditing operation. What levers would you
push to help improve profitability?
Hypothetical Approach Golf balls sales are
driven by end-users. You have to determine the
number of end-users this will be some fraction
of the total U.S. population (say 300 million to
make my math easier). First assume a uniform age
distribution and an average life expectancy of 80
years. Then assume that only people in the ages
20-70 will be potential buyers. Thus you
eliminate 30 to 80 years or 3/8 of the 300
million population. So, now you are down to a
potential buyer pool of about 110 million. Now
you might estimate how many people out of 10 play
golf say 4 so now 4/10 of 110 gets you down
to 44 million people who play golf. Now you have
to estimate purchase frequency, how many balls
per month an average person buys (you may want to
temper this average purchase assumption by at
least mentioning that retired people play more
than students). A good guess might be 15. So
demand per month is now 15 x 44 million or 660
million. Finally, you need to estimate the
number of months per year that people play golf
12 months in good climate regions, maybe 5 in
regions with cold winters so on average 8 is a
decent estimate 8 x 660 5.280 million golf
balls per year
Hypothetical Approach Whenever you hear
declining profitability, start with basic
profitability analysis. Determine whether this
is a revenue problem, cost problem or both.
Hypothetical Approach This problem does not fit
in common framework, but it can be dissected by
simply listing the alternative reasons for each
component of the issue. Here is one
approach The reason there is no light beer
could be because (1) consumers do not demand it,
(2) producers are not producing it, despite
consumer demand, or (3) some outside influence,
such as the government, will not permit light
beer in the country. Following the producer
option, one can subdivide the problem as nobody
wants to sell light beer in the UK or somehow,
light beer producers are blocked out of the UK
29

Special Cases (Contd)
Case 4
Case 5
Your client is going to build a skyscraper, but
is not sure how many stories to make it. How
should he decide?
The airline industry is characterized by low
returns and stiff competition. In the early
years after deregulation, discount carriers like
People Express sprang up. Years later the
discounters have gone out of business. In a
price-competitive industry, why is it that the
higher-cost carriers were able to survive and the
low-cost ones weren't?
Hypothetical Approach This is an economic
supply/demand mind tease. Clearly you don't want
to lose money on the deal. The building will
house tenants, who will pay to reside there. The
costs of building and maintaining the structure
(both fixed and incremental by story) need to be
compared to revenue-generating capability of the
project. When marginal revenue equals marginal
cost you stop adding stories
Hypothetical Approach These are some of the basic
issues to be fleshed out Characteristics of
discounters Low fares Limited
service Characteristics of major
carriers Higher fares, but better coverage
and service Hub systems channeling
traffic Competitive moves by majors
Innovative use of information technology for
yield management and differential
pricing 1) Basically they priced every seat
individually based on continuously monitoring
supply/demand 2) They wooed leisure customers
with fares lower than discounters and charged
more from business travelers (indifferent to
price but sensitive to service frequency) 3) The
y stole the discounters' market and forced them
out
This case is too complex for BA candidates.
Included here for illustrative purposes only
30
Data Analytics CasesThe following sample cases
have been compiled with input from Inductis
associates and managers. They are intended to
assist you in preparing for your interview.
Math
Combinatorics
Analysis
A thin membrane covers the surface of the
(spherical) earth. One square meter is added to
the area of this membrane to form a larger
sphere. How much is added to the radius and
volume of this membrane?  
n people each know a different piece of gossip.
They can telephone each other and exchange all
the information they know (so that after the call
they both know anything that either of them knew
before the call). What is the smallest number of
calls needed so that everyone knows everything?
What is the longest time that a particle can take
in traveling between two points if it never
increases its acceleration along the way and
reaches the second point with speed V?

• V (4/3)pir3 and A 4pir2
• Need to find out how much V increases if A
  increases by 1 m2
• dV / dr 4 pi r2 dA / dr 8 pi r dV /
  dA (dV / dr) / (dA / dr) (4 pi r2) / (8
  pi r) r/2 3,250,000 m
• If the area of the cover is increased by 1
  square meter, then the volume it contains is
  increased by about 3.25 million cubic meters.
• We seem to be getting a lot of mileage out of
  such a small square of cotton. However, the new
  cover would not be very high above the surface of
  the planet -- about 6 nanometers (calculate
  dr/dA).

• Assumptions
• x(0) 0
• x(T) X 2.
• v(0) 0
• v(T) V 3.
• d(a)/dt lt 0
• Solution
• a(t) constant A V2/2X which implies T
  2X/V.
• Proof
• Consider assumptions as they apply to f(t) A
  t - v(t) 1. integral from 0 to T of f 0 2.
  f(0) f(T) 0 3. d2(f)/dt2 lt 0 From the mean
  value theorem, f(t) 0.

• 1 for n2
• 3 for n3
• 2n-4 for ngt4
• This can be achieved as follows choose four
  people (A, B, C, and D) as the "core group".
• Each person outside the core group phones a
  member of the core group (it doesn't matter
  which) this takes n-4 calls.
• Now the core group makes 4 calls A-B, C-D, A-C,
  and B-D. At this point, each member of the core
  group knows everything.
• Now, each person outside the core group calls
  anybody who knows everything this again requires
  n-4 calls, for a total of 2n-4.