LEVEL 1

Name:
Homework Practice Tips
 1
LEARN What’s a case interview?
THE An interviewer states a business question or an analytical problem. Typically you have
15–25 minutes to solve it through discussion and data analysis. Your interviewer will
BASICS question your logic, test your analytical skills, and expect a final recommendation.

Business Case Variants

Blue Command
Sky Hypothesis and Control

Interviewer
Interviewer’s recent Company-developed
work content case content
“What do you think?” Continuum “Please solve this equation.”
Style Wide open
Hypothesis-driven
Specific steps
Specific problems
Candidate-driven Interviewer-driven

One-on-One Small Group Analysis Only Analyze & Present

• Most typical format • Usually final round only • You and a computer or • You, lots of slides, and
Format • Interviewer style and case • Rare but growing in
paper exam a case
content vary widely popularity • Usually a threshold test • Present to 2–3 people
• Be ready to drive the • Listen and collaborate! • Emphasis on quant skills • Have a tight storyline and
discussion solid recommendation

Branding Technology
Bain & Company Disney Samsung HR Integration
Company- Boston
Consulting McKinsey & Shell Home Risk Hospital
Group Company Google Depot Management Management
or Industry- Generalist Consulting Company-Specific Industry-Specific
Specific Firms that advise a broad set of companies
and industries may give you a case on any
Expect cases that are centered on
their specific industry and day-to-day
Fims that advise in specific industries
will give cases on those topics. Educate
topic. A firm’s recent client work may show problems. Be sure to read up on their yourself on current challenges and
up in your case! most recent challenges and products. trends.

QUICK START GUIDE

QUICK START GUIDE

2
BUILD How can I build my skills quickly?
YOUR After you understand the flow of a case, it’s time to start focused
drills. Practice these by yourself and with partners. Make
SKILLS specific drills for each section of the case.

Typical 15–25 Minute Business Case

Structure
(5–7 MIN) Integration
Analysis
(5–7 MIN)
(5–10 MIN)
• Practice case starts with
your partners or by • Practice giving 3-point
yourself (always out loud) • Accelerate your quick recommendations
math estimates out loud
• Watch our videos
showing interviewers and • Discover insights and patterns • Give an alternate
candidates on mbacase.com in charts and graphs conclusion

Break Free from Robot Mode Case

Communication
• Limit the number of frameworks you memorize;
• Keep your answers
use simple structures that make sense for the
under 90 seconds

TIPS
case at hand (try our MBACASE MVM)
• Get to the point quickly
• Interact by asking the interviewer questions
• Explain your logic
• Use everyday language that is relevant to the
• Anticipate questions
case. For instance, during a restaurant case
talk about “table turnover” and “menus” • Give a firm
recommendation
at the end
3
PLAN How should I prepare?
TO Optimize your time with this 5 step
WIN! approach to winning at cases!

Practice with alums & pros

Step 5
• Fine-tune for target companies

Focus your attention on Analysis and

Step 4
Integration • Drill on weak spots

Practice with partners • Find your weak spots

Step 3
• Score your cases with the MBACASE Scorecard

Build a strong foundation in Communication and

Step 2
Structuring • Use your Prep Plan for tips and tools

Select your Prep Plan (pg 5) • Form your practice team

Step 1
• Gather your case materials • Make your partner schedule

QUICK START GUIDE

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CRACK THE CASE WORKSHOPS
CSAI Skills You Need to Show

Type of Role / Sample Case Favorite Cases to Give

Comm Structure Analysis Integration Interviewer’s Priority List
Company Focus Interview Question (varies greatly)
Management Client facing communication. Sound logic Zone 1 – Strategy: Merge / Acquire
“Should we enter this
Consulting / medium high high high and good business acumen. “Second level” Zone 1 – Strategy: Enter a New Geography
market?”
Strategy thinking and the ability to connect the dots. Zone 2 – Operations: Maximize Profit

“How would you make Can influence front-line workers. Pragmatic,

Zone 2 – Operations: Maximize Profit
Operations this process more medium high medium low systemized thinking. Can think and
Zone 3 – Organization: Streamline a Process
efficient?” communicate in a KPIs/ metric manner.

“Develop a 6 month “Nose for” what drives consumer behavior. Zone 1 – Strategy: Launch a New Product
Marketing / CPG launch strategy for this high low low medium Creative but also financially responsible. Zone 1 – Strategy: Enter a New Geography
new product.” Able to consider the broader organization. Zone 5 – Strategy: Exit a Business

General Manager “What steps would

Tactical and implementable ideas. Zone 1 – Strategy: Growth Strategy
and Leadership you take to improve
high medium medium medium Consideration and mitigation of risks. Zone 3 – Organization: Restructure the Team
Development profitability of this
Leadership skills. Zone 2 – Operations: Maximize Profit
Programs business unit?”

“Would you prioritize Scrappiness. Flexibility. Comfort with

Zone 1 – Strategy: New Product
Tech development of feature medium low medium low ambiguity, resource constraints, and change.
Zone 2 – Strategy: Pricing
A, B, or A+B? Why?” A startup mentality.

Fluidity with financial terms/concepts and Zone 1 – Strategy: Merge / Acquire

“Should we buy this
Finance / VC medium medium high medium numbers. Clear understanding of what Zone 1 – Strategy: Growth Strategy
company?”
drives valuation/upside potential. Zone 4 – Finance: Valuation

“Develop a plan to be Understands impact of business actions Zone 2 – Operations: Maximize Profit
PE/Turnaround cash flow positive within medium medium high medium on balance sheet, income statement. Zone 3 – Organization: Restructure the Team
18 months.” Decisiveness. Speed. Confidence. Zone 5 – External Forces: Competitor Attack

“Give me a tactical plan Genuine interest in the product.

Product Zone 1 – Strategy: Growth Strategy
to grow revenue for this medium medium medium medium Decisiveness. Ability to navigate
Management Zone 2 – Operations: Maximize Profit
product line by x%.” organizations and work cross-functionally.

“Evaluate ROI and risks of Ability to speak IT (data integrity, data

Zone 3 – Organization: Streamline a Process
IT Consulting global migration to new medium low medium medium privacy, stacks, etc.) AND business (financial
Zone 1 – Strategy: New Business
ERP.“ implications, risks and business integration).

Thoughtful about impact of actions on

“How would you roll out
Human Capital this global change to our
workforce?”
reputation, culture, recruitment and Zone 3 – Organization: Restructure the Team
high medium low low
retention. Can connect HR metrics to Zone 3 – Organization: Streamline a Process
financial impact.

“What’s your plan to Triple bottom line thinking. Passion and

low to Zone 1 – Strategy: Growth Strategy
Social Impact reduce human trafficking medium low high knowledge of social justice issues and
medium Zone 3 – Organization: Streamline a Process
in this region?” challenges. PLUS some business acumen.

“How would you get costs
Government down as you develop medium
these fighter jets?”
Realistic approach to managing large scale
Zone 2 – Operations: Maximize Profit
medium medium low projects (big spend, long timelines, sub-
Zone 3 – Organization: Streamline a Process
contractors, getting buy-in). Cost mindset.

Considers non-traditional / indirect revenue Zone 2 – Operations: Maximize Profit

“How would you turn
Non-profit medium low low medium sources. Balances social mission and fiscal Zone 1 – Strategy: Launch a New Product
around this opera house?”
responsibility in decision making. Zone 1 – Strategy: Growth Strategy
Crack the Case Prep Plans
Case Light
• Create 1 story for each IMPACT letter
Communi-
cation
• Practice Block, Break & Ask on 5
business magazine articles
• Watch hIQ and practice with a partner
2 times
• Do 5 profit tree cases (WOW Foods,
Hank’s and 3 from the CTC Library)
Structure
• Do HonesTees and 3 more cases
(not profit trees)
• Redo all 3 market sizing cases in the
CTC workbook with a partner. Watch
the videos for cases 301 and 406 in the
CTC Library.
• Review the hIQ slides and math
• Review the math in all orange tab cases
in the CTC workbook
• Review Math Must Haves in the CTC
workbook and find sample problems
for each of the five
Analysis
• Practice mental math on thousands,
millions and billions
• Practice stating the insights from
simple slides. Practice with the CTC
workbook cases (hIQ, WOW Foods and
Hank’s).
• Review the Crack the Case Library and
select “Type – Full Business Case” in
the search tool. Review the associated
Integration slides with those cases. Use the answer
key to learn how to state the main
insights.
• Practice ending all of your cases with
a clear conclusion (speak out loud).
Be firm in your recommendation. Add
next steps when appropriate.
Case Medium
• Create 2 stories for each IMPACT letter (best
story and a backup)
• Visit InterviewLogic.com and enroll in the
online course to try some free modules. Sign
up to be fully interview ready.
• Practice Block, Break & Ask on 10 business
magazine articles
• Watch hIQ and practice with a partner 2 times
• Do 7 profit tree cases (WOW Foods, Hank’s, 3
from the CTC Library and 2 from other sources)
• Do HonesTees and 3 more cases (not profit trees)
• Do 9 market sizing cases with partners (3 from
CTC workbook and 6 from the CTC Library.
Watch all the related videos).
• Do 10 Case Starts from the CTC Library
• C4 Online Course – Do sections 1-5
• Review the hIQ slides and math
• Review the math in all orange tab cases in the
CTC workbook
• Review Math Must Haves in the CTC workbook
and find sample problems for each of the five
• Practice mental math on thousands, millions
and billions
• C4 Online Course – Do sections 6-7
• Go to the FastMath course on MBACASE.com.
Do the sample modules. Enroll in the course if
you see weak spots.
• Practice stating the insights from simple slides.
Practice with the CTC workbook cases (hIQ,
WOW Foods and Hank’s).
• Review the Crack the Case Library and select
“Type – Full Business Case” in the search tool.
Review the associated slides with those cases.
Use the answer key to learn how to state the
main insights.
• Practice ending all of your cases with a clear
conclusion (speak out loud). Be firm in your
recommendation. Add next steps when
appropriate.
• C4 Online Course – Do sections 8-9
CRACK THE CASE WORKSHOPS
Case Intense
• Create 2 stories for each IMPACT letter (best story and a backup)
• Visit InterviewLogic.com and enroll in the online course to try some free
modules. Sign up to be fully interview ready.
• Prepare answers for why consulting, why our firm and what can you
offer?
• Practice Block, Break & Ask on 25 business magazine articles
• Watch hIQ and practice with a partner 2 times
• Do 7 profit tree cases (WOW Foods, Hank’s, 3 from the CTC Library and 2
from other sources)
• Do HonesTees and 3 more cases (not profit trees)
• Do 15 market sizing cases with partners (3 from CTC workbook, 6 from
the CTC Library and 6 more from other sources. Watch all the related
videos).
• Do All Case Starts from the CTC Library
• Do 10 cases from other case books
• C4 Online Course – Do sections 1–5
• Review the hIQ slides and math
• Review the math in all orange tab cases in the CTC workbook
• Review Math Must Haves in the CTC workbook and find sample
problems for each of the five
• Practice mental math on thousands, millions and billions
• C4 Online Course – Do sections 6-7
• Go to the FastMath course on MBACASE.com. Do the sample modules.
Enroll in the course if you see weak spots.
• Review additional case books and search for unusual or challenging
math problems. Create flash cards with those problems and practice
solving them quickly.
• Practice stating the insights from simple slides. Practice with the CTC
workbook cases (hIQ, WOW Foods and Hank’s).
• Review the Crack the Case Library and select “Type – Full Business Case”
in the search tool. Review the associated slides with those cases. Use the
answer key to learn how to state the main insights.
• Practice ending all of your cases with a clear conclusion (speak out loud).
Be firm in your recommendation. Add next steps when appropriate.
• Review chapter 15 in Crack the Case System. Practice using mid-case
structures in your more difficult cases.
• Visit mekkographics.com. Print out the PowerPoint Gallery of slides (over
200). Practice finding and stating the 2-3 key insights from each one.
• C4 Online Course – Do sections 8-10. Learn the full cases in section 10
and practice ending the case with all of the insights.
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CRACK THE CASE WORKSHOPS

Core Skills

S tructure I ntegration

A nalysis
C

N
M
O

O
M T
U N I C A
 CRACK THE CASE WORKSHOPS

Block, Break & Ask Method

Case
Specific
Words

Block

Break

Ask

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CRACK THE CASE WORKSHOPS

Integrated Thinking—What’s My Master Model? Notes

MVM™ Maximum Value Model

Zone 5 *

Zone 4
Zone 3 Finance
Zone 2 Organization

Zone 1
Operations

Strategy

R < Volume
Price
People CA$H

Customer Systems Measure D/E

C < Fixed
Variable Processes

• Avoid sounding overly memorized by using case specific terms

• Build an integrated structure and practice talking about the links
between topics

*S P E C I A L - T
Suppliers Industry
People Auditors
Economy Legislation
Competitors Technology
 CRACK THE CASE WORKSHOPS

MBACASE Path
Mini and Full
1 2 3 Business Cases 6
Warm-up Start So what?
Qualitative Warmth & Logic & Breadth Integration &
Client Ready Creativity

Mindset:
Be prepared to show
both types of skills!

1 4 5 7
Data Dump
Quantitative Chart/Table Estimate Insight End
Equations Solve for X Data
Depth & Numbers

9
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CRACK THE CASE WORKSHOPS
Case Name: Date:

WORKSHEET My Initial Plan and Output

1. Record key facts. 3. Develop your plan to solve this case.

2. Record dollars, numbers, and percentages.

 CRACK THE CASE WORKSHOPS

hIQ
Handout A
Consumer Tea Trends by Country

Tea Green Tea Enhanced Healthy Eating Specialty

Country
Popularity Popularity Drinks Trend Food Shops

Australia

India

Canada

France

Germany

Italy

Japan

China

Mexico

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CRACK THE CASE WORKSHOPS

hIQ
Handout B

Retail and Wholesale Estimated Year One

Pricing for hIQ Volume Ranges
20
17 Aus Low Estimate High 2.0

15 15
15
Can Low Estimate High 1.5
12

Price 10
in 10 Fra Average 2.0
USD
Germ Low Estimate High 2.0
5

Italy Low Estimate High 2.5

0
Italy Germ Fra Aus Can
0.0 1 2 3
Average Profit 35% 31% 33% 24% 29%
Margin
Volume in Millions of Units

Retail Price

Wholesale Price
 CRACK THE CASE WORKSHOPS
Case Name: Date:

WORKSHEET My Initial Plan and Output

1. Record key facts. 3. Develop your plan to solve this case.

2. Record dollars, numbers, and percentages.

13
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CRACK THE CASE WORKSHOPS

WOW Food Pilot Site Report

Handout

Typical WOW Food Monthly Data Boston Monthly Data

Philadelphia May thru October

AVERAGE AVERAGE
MONTHLY
MONTHLY COSTS MONTHLY KEY MONTHLY KEY
COSTS
FACTS FACTS

Truck Monthly $3k Average Customer $7.55 Truck Monthly $3.5k Average Customer $7.94
Rental Sale (total ticket) Rental Sale (total ticket)

Prep Location $2.5k Average Profit 80% Prep Location $2k Average Profit 65%
Rental Margin per Ticket Rental Margin per Ticket

Monthly $.5k Customers Per 4250 Monthly $1k Customers Per 2900
Maintenance Month Maintenance Month

Monthly City Fees $.75k Monthly Revenue $32,088 Monthly City Fees $.8k Monthly Revenue $23,026

Typical Drink $1.00 Typical Drink $1.00

Sandwich and $6.75 Sandwich and $6.75

Side Side

2 Sides and Daily $6.90 2 Sides and Daily $8.00

Feature Feature
 CRACK THE CASE WORKSHOPS

Hank’s Hardware
Handout

BEFORE PROFIT DROP AFTER PROFIT DROP

6 MONTH STORE REVENUE: $10M 6 MONTH STORE REVENUE: $10M

Revenue Revenue
Margin Profit Margin Profit
Breakdown Breakdown

High quality 15% 40% High quality 15% 20%

Medium quality 5% 25% Medium quality 5% 30%

Low quality –10% 35% Low quality –10% 50%

Total Total

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CRACK THE CASE WORKSHOPS

5 Math Must Haves

• Practice multiplication first

• Know how to quickly calculate 10%, 20%, 25%, 50%
Estimating / Mental Math
• Work on scale (thousands, millions, billions) and keeping
track of zeros and decimals.

Profit Equation “π” = Revenue (price x volume) – Costs (variable and fixed)

= Fixed Costs for Production / (Unit Price – Variable Costs per

Break-even
unit to Produce)

Next Year’s Sales — This Year’s Sales x 100

Projected Growth Rate (%) =
This Year’s Sales

Incremental Revenue from Investment – Cost of Investment

x 100
Return on Investment “ROI” = Cost of Investment
 CRACK THE CASE WORKSHOPS

Market Sizing Cases

Build foundational skills:
• Communication under pressure
• Reasoning and problem-solving
• Quick math estimates and model building

S State My Assumptions

P Pick My Metrics & Approach

E Estimate Quickly

A Assess My Approach & Answer

K Keep Exceptions in Mind

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CRACK THE CASE WORKSHOPS

Starbucks
Starbucks has over 25,000 retail stores worldwide (70 countries).
How many pounds of coffee will it need annually?

S tate your assumptions Interviewer:

• Short = 8 oz. (237 ml.) / Tall = 12 oz. / Grande = 16 oz. / Venti = 20 oz.
“What are some
• 25% of customers order each size so multiply .25 x each size:
ways to measure
• .25 (8+12+16+20) = (2 + 3 + 4 + 5) = 14 how many beans
• Assume the average order is 14 oz. you need per
• 1 lb. of coffee beans makes 45, 8 oz. cups. cup?”
• 1 lb. makes 22.5 16 oz. cups. If we round the order from 14 oz. to 16oz., that’s about 22 drinks.
• Round this number to 20 drinks later in the analysis.

P ick your main metrics and approach

• Customers per store per day
• Pounds of coffee

E stimate quickly and with round numbers Interviewer:

“What data would
• 30 coffee customers per hour or 1 every 2 minutes, assume 1 drink per customer help make your
• 30 drinks x 15 business hours = 450 drinks per day assumptions more
• 450 drinks x 350 days ≈ 160,000 drinks per year per store accurate?”
• 160,000 drinks x 25,000 retail stores ≈ 4.0 billion drinks worldwide
• 4B divided by 20 drinks per pound ≈ 200 million pounds of coffee.
Interviewer:
A ssess your approach and answer Reference point:
In 2015, Starbucks
• Size of the drink, hours of the store and number of customers could all be high. Some hours in the made 4 billion
day have fewer orders. cups globally.
• This approach does not include pound bag sales to customers through grocery stores and on-line. “Your number
It also does not include wholesale sales to companies, hotels and restaurants. seems a little high

K eep exceptions and next steps in mind

/ low. How would
you adjust it?”
• Are customers drinking more non-coffee drinks? Is the non-retail portion of the business growing?
• Starbucks now has over 50 different types of coffee. Does each drink use the same amount of
coffee beans?
 CRACK THE CASE WORKSHOPS

S State My Assumptions

P Pick My Metrics & Approach

E Estimate Quickly

A Assess My Approach & Answer

K Keep Exceptions in Mind

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CRACK THE CASE WORKSHOPS

EU Oil
How much oil is consumed daily by the European Union?
Japan consumes 5.5 Mbbl/day (million oil barrels) and Spain
uses 1.5 Mbbl/day.

S tate your assumptions

• There are around 20+ countries in the European Union (those who know the EU well
may start with 28)
• With the given usage of Japan and Spain, assume the average usage of an EU
country is less than Spain
Interviewer: If
P ick your main metrics and approach the candidate
does not use the
• Number of countries that are similar in size
Japan data, say:
• Economic sophistication and those countries that are
demanding similar rates of oil
“How would the
Japan data help

E stimate quickly and with round numbers you?”

• 3 EU countries with greater economic and military sophistication than Spain

• 3 x ~3 Mbbl = 9 Mbbl
• 3 EU countries on par with Spain = 3 x 1.5 = 4.5 Mbbl Interviewer:
• 14 small or poor EU countries averaging 25% of Spain, thus “There are 28
each small country is 25% of 1.5 Mbbl = 375,000 bbl/day countries in the
• 375k bbl x 14 countries = 5.25 Mbbl/day EU. How does Additional Information (28 countries)
• Total consumption = 9 + 4.5 + 5.25 ≈ 19 Mbbl this affect your Member countries are listed here if asked. Ask how the candidate

A ssess your approach and answer estimate?” might cluster them.

• Austria • France • Malta

• To scale from 20 to 28 countries: 20 x 1.4 = 28, thus 19 Mbbl x 1.4 ≈ 27 million Mbbl • Belgium • Germany • Netherlands
• Another option: (4 “bigger countries” x 3M = 12M) + (4 “on par” x 1.5M = 6M) + (20 • Bulgaria • Greece • Poland
“smaller” x .375 = 7.5M) = 25.5 Mbbl • Croatia • Hungary • Portugal
• Alternative approach would be to extrapolate from worldwide population ratios or • Cyprus • Ireland • Romania
• Czech Republic • Italy • Slovakia
overall production
• Denmark • Latvia • Slovenia

K eep exceptions and next steps in mind •

•
Estonia
Finland
•
•
Lithuania
Luxembourg
•
•
•
Spain
Sweden
United Kingdom*
• Determining exactly how many countries are in the EU and verifying Spain’s *As of 2017
economic strength comparatively are critical metrics to reach a more accurate figure.
 CRACK THE CASE WORKSHOPS

S State My Assumptions

P Pick My Metrics & Approach

E Estimate Quickly

A Assess My Approach & Answer

K Keep Exceptions in Mind

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CRACK THE CASE WORKSHOPS

School Daze
The Education Ministry of New Zealand is worried about truancy in primary and
secondary schools in the city of Christchurch. They want to compare them to the
rest of the country. As a starting point how would you calculate the total number of
‘school days absent’ (justified and unjustified) from primary and secondary schools
each week in Christchurch? What is this rate as a percentage?

S tate your assumptions

• Justified absent = absences that are satisfactorily explained and recorded (e.g. illness) Interviewer:
• Unjustified absent = absences that are not explained (e.g. skipping school for fun/ truant) Don’t give this
• Total population of New Zealand is just under 5M. Four key cities in New Zealand (like Christchurch) information
account for 50% of the population. Typically there is one school per 1,500 residents. too easily. Say:

P ick your main metrics and approach

“How would you
estimate that?”
• Rate of absenteeism would be the metric.
• Reflect on your personal experience in terms of class size and absenteeism per week at your own primary / secondary school
growing up. What do you remember from your school days? Or were you absent all the time so you don’t really know?

E stimate quickly and with round numbers

• Students per class: 25. Classes per school: 12 (assuming 1 class per grade)
• Christchurch population: (50% x 5M)/4 cities = 625,000 people Interviewer:
• Number of primary and secondary schools: 650k (round up from 625k)/1,500 residents = 433 schools (round to 400). “I have a
• Total students: 400 schools x 25 students x 12 classes = 120,000 students report that
• Assuming 2 students absent per class per week due to justified and unjustified: says NZ total
2 students x 12 classes x 400 schools = 9,600 student days absenteeism
• Per week the truancy rate is 9,600/120,000 = 8% is 4%. Why
• Brainstorm: As income goes down, absenteeism may go up due to lack of parental supervision, different values toward do you think
education and lack of transportation options. As students get older absenteeism likely goes up due to less parental oversight. Christchurch is
so high?”
A ssess your approach and answer
• 2 students is a “blanket” approach. It may vary by grade level.
• Class size could be larger in public schools.

K eep exceptions and next steps in mind

• Absenteeism may vary from city to city and from city to rural.
 CRACK THE CASE WORKSHOPS

S State My Assumptions

P Pick My Metrics & Approach

E Estimate Quickly

A Assess My Approach & Answer

K Keep Exceptions in Mind

23

hIQ Tea
Case Skills Focus: New Location, Profit Drivers, Handout Analysis
S Start with Specifics
Say bold sections to the candi-
date:
• “hIQ is an innovative green tea
that boosts mental awareness and
clarity. Using a unique combination
of extracts, Japanese tea leaves and
proprietary ingredients, consumers
rated it more satisfactory than 80% of
other ‘regular’ green teas.”
• Ask, “Do you drink tea?” or “What
comes to mind when you think about
a business like this?” Let the candidate
talk about what he knows and explain
the concept more if necessary.
• “hIQ is a $170M division of a $3.4B
tea, coffee and packaged drink
conglomerate called Wonder
Beverages. hIQ has had two
successful years in the US and
now management wants to go
abroad. Their goal is to hit $35M of
incremental sales in 12–18 months
while maintaining their typical 30%
profit margin. I need you to find a way
to reach that financial goal and to
think through issues they may face.”
• Say, “Before we get into too much
detail, what’s your hunch about hIQ?
Do you think it will succeed abroad?”
… It will work: People love new kinds
of drinks, health always sells, seems
to align with a trend toward green,
enhanced drinks are common
now (e.g. caffeine), revenue goal
is 20% of current US sales which is
reasonable
… It won’t work: Multiple new
competitors, how to measure
effectiveness of the product,
attitudes toward health
supplements vary by region of the
world, food regulations may be a
big deal, international production
and shipping will be difficult
24
CRACK THE CASE WORKSHOPS
Be ready if asked:
• Competitors in US – Lots of small
players but no dominant competitor
offering same tea.
• Revenue – Retail locations double the
price from hIQ. There are no distributors.
• Profit Margin – 30% profit margin is a
threshold, you must reach that amount
by country.
• Sales Growth – It has been steady over
the last 12 months.
• Packaging – Thin packets, 30 per box =
1 month’s supply.
• Pricing – Say, “we’ll look at that later.”
• Taste – Less than 5% of consumers
complain about the taste of the
additives.
• Ideal Countries – Open to any region of
the world.
 CRACK THE CASE WORKSHOPS
Case Name: Date:

WORKSHEET My Initial Plan and Output

1. Record key facts. 3. Develop your plan to solve this case.

2. Record dollars, numbers, and percentages.

25
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hIQ Tea
CRACK THE CASE WORKSHOPS

Case Skills Focus: New Location, Profit Drivers, Handout Analysis

M Manage the Structure

Manage the discussion around a structure
• This case requires a broad structure focused
on several aspects of entering a new market.
Your goals are to: a) test the candidate’s ability
to explain his plan, b) look for overlapping
thoughts, and c) check that he is searching for
relevant data. Business judgment and common
sense are key here.
• Remember that the candidate typically “asks for
a minute” to collect his thoughts and structure a
“plan” (plan to solve the case). He should present
his plan clearly. Coach the candidate to use a
method that creates a clear structure. Creating a
structure and presenting it to the interviewer is the
most important part of any case interview.
• Test the breadth of thinking. “What else would
you like to include in your structure?” (e.g. ask
this if there is an obvious gap in the candidate’s
thinking). Help by providing hints where
necessary but also be tough by asking direct
questions. Consider asking, “Could you explain
this again?” or “I don’t understand how these
ideas connect.”

Revenue Target / Maintain Market Growth Competitors with Risks to

Block
Profit Margin Potential Similar Products Current Success

Revenue Costs Short Term Long Term Current Future hIQ Wonder Bev.
Break • Price • Fixed Costs
• Volume • Variable Costs

• US price vs. • Var: Packaging? • Which markets • Which markets • Who has • Which • Will US • Are the Wonder
foreign prices? Shipping boxes? can we enter show most long a similar competitor management and Bev brands
Ask • Retail vs. Mfg. Ingredients? quickly? Who is term potential? product? is in position internal support established in
price Workers? Sales most ready for • Will it be a fad • What market to enter the be distracted by certain countries?
• Are customers team? high-end tea and fade? share do they market or the international • Should we link
sensitive to • Fixed: Use current product? have? leapfrog launch? brands or keep
price? plants, trucks, and • How do we • How will they with new • Could product them separate?
• Do we have mfg. facilities? prevent customer respond once ingredients? risks (health,
sales channels? drop off? How hIQ launches in • How do we stay complaints)
do we prove tea their market? ahead of new damage US
is effective? entrants? brand?

• US hIQ revenue • Non-US costs vs. • Growth rate by • Wonder Bev. • Top 1-2 • # of product • Amount of time, • # of products
Data • US profit US costs market market share by competitors by launches per management established by
$, %, # margin country market year will dedicate to country
launch
 hIQ Tea
CRACK THE CASE WORKSHOPS

Case Skills Focus: New Location, Profit Drivers, Handout Analysis

M Manage the Structure (Alternate Plan)

Here’s an alternate structure for hIQ going abroad. Feel free to lay out your work vertically or horizontally,
but continue to structure with clear blocks, case specific breaks and practical data.

Block Break Ask Data $, %, #

Size of target • Which countries have the largest number of green tea or ‘enhanced’ tea drinkers? • Pounds of tea consumed per year by
Identify markets population • Tea drinking habits by region (green vs. black, loose leaf vs. packet)? country
with strong • Which markets show strong, long term potential (growing health & wellness spend)? • Number of enhanced drink product
potential demand launches by country
Competitive • Who has a similar product?
landscape • How are dominant players in each market likely to respond? • Top 1–2 competitors by market

Pricing • Sell in grocery stores or high end tea shops? • Avg. retail price of packaged tea by
• How price sensitive are international consumers? country
Maintain margins • What margins do retailers expect? • Mark-up / margins on Wonder Bev
products by country
Manufacturing/ • Product costs (tea, tea bags, packaging)—how impacted by volume and sourcing?
distribution costs • Production/packaging—pack locally? outsource? • US vs. non-US costs
• Warehousing/distribution—which markets has Wonder Bev already established?
• Labor costs: workers, sales team? • Additional regulatory costs for imported
Regulatory
environment products
• Import taxes for Japanese tea leaves?
(tariffs, FDA)

Potential to jeopardize • Dedicated team to support international expansion or current team? • Man hours to support entry into each new
US success • How ensure globally consistent product quality? country
Evaluate / address
risks to success • Sufficient capital to also continue investing in US business (e.g. broader products)?

Delays/cost overruns • Can hIQ ramp up supply / production quickly enough? • Wonder Bev track record with new market
during launch • Approvals from local regulators required? launches (average year 1 estimate, time to
launch, volume ramp up)

• What happens if a study debunks benefits? • Product efficacy studies to date

Sustainability • How easy for a competitor to replicate / leapfrog?
• Will it be a fad and fade?

27

hIQ Tea
Case Skills Focus: New Location, Profit Drivers, Handout Analysis
A
Ask for Numbers
Ask about data and numbers. You must test a specific analytical skill. Transition
to the “Data Pool” by testing the candidate’s intuition about data sources.
1. “That was a thorough structure. You mentioned that you were curious about tea drinking
habits in other countries. How might it vary and which markets do you think would be
good targets?”
2. Expect comments about wealthier countries (e.g. Germany) and attitudes toward healthy food
and drink (e.g. certain regions may be concerned about additives vs. drinking only pure tea).
3. “What might serve as a proxy for the type of region that would be interested in this type
of green tea product?”
4. Answers may include: Tea and coffee drinking, tea stores, grocery store sales of packaged tea,
sales of other high-end specialty foods, and sales of “detox” teas.
5. “I like those ideas. Let’s look at Handout A together. What do you see?”
Candidate comments: “OK . . This is interesting, and a bit overwhelming I have to admit.
R Request a Recommendation
These are consumer trends by country . . . . and what I’m looking for is some kind of pattern
Push the candidate for a recommendation
that would indicate an interest in hIQ. Well, tea drinking alone wouldn’t work I think. Just
because someone drinks tea does not mean they’ll spend more than average for specialty
green tea. So I think I’d want countries that show an interest in spending more . . . . .like
going to specialty tea stores. I’m sure if someone is concerned about their health . . .” (see
video on mbacase.com).
6. See if the candidate naturally moves to ask about price points by region and potential share of
sales.
Candidate comments: “So countries that jump out to me as likely places for hIQ would be
Australia, Canada, Japan and maybe Europe (especially Germany). The others don’t look
as promising. Do you have any quantitative data, like sales volume for similar products or
pricing data?”
7. “Yes I do. What do you see here in Handout B?” (see video)
Candidate comments: “OK, wow this is a lot of data, but great, um, I see some insights.
Right away, I see that Australia is below our profit margin threshold of 30% and Canada is
on the cusp. How strict is management about that rule? Also, looking back at handout A, I
definitely would have expected to see Japan on the list.”
8. “They are willing to drop to 28%. Wonder Bev doesn’t have a strong presence in Asia so
they don’t want to enter with a new product like hIQ.”
T Track & Practice
Candidate comments: “OK, that makes sense regarding Japan. The margin criteria knocks
out Australia for now, but I’m pleasantly surprised at how attractive Italy is looking (highest
28
CRACK THE CASE WORKSHOPS
margins and volume potential . . . though at a lower price point) vs. what I might have
anticipated based on Handout A. We’re likely going to want to include Italy on our short list.
I also see that price points for the monthly packs vary by country, but hover around $15 USD.
Is that around the US retail price? Also, it looks like hIQ takes 50% of the retail price. Is that
right?”
9. “Yes, it’s about the same price and they take 50%.”
Candidate comments: “Well, since our stated goal is to hit $35M, I’d like to start calculating
how we’ll do that. I’ll be taking the potential range of annual sales times the price hIQ gets
per box for Italy, Germany, France and Canada.”
10. Candidates will do the math. Strong candidates will do a quick range and can do it out loud.
See video on mbacase.com.
• Say, “What did you find with your calculations?”
• Expect to hear clear financial ranges. Launching in 4 countries (Italy, Germany, Fra, Can), even
the low range estimates exceed the $35M goal over 18 mos.
• Say, “I’m afraid I have some bad news for you. France has not approved this product due
to health concerns. hIQ can reapply in 2 years. How does this affect your answer?”
Candidate Final Comments: “Wow, that’s rough. Well, let me quickly adjust my numbers.
Taking France’s $15M on each side out, that leaves us with $24.5M and $38.5M for 12 month
estimates. For 18 month estimates this is about $35–57M. Looking this over and thinking
about the big picture; I would still say it’s a definite go. My logic would be that, 1 – We are
succeeding in the US and will continue to innovate and build knowledge about efficiency
and cost reduction; 2 – Wonder Bev is already in these markets and will continue to build
strength there which will help us; and 3 – Using the 18 month estimates we’ll hit our targets
even if we only achieve the low end of our volume estimates in each country. Finally, 2 big
markets, Australia and France are not included, and we may be able to enter those in the
future. I think this looks very promising. I’d go for it!” (see video on mbacase.com).
• Help the candidate track strong and weak areas. Reading through data is a critical skill for
many cases. Recommend that he find other data handouts and practice reading the main
insights out loud.
 WOW Food
Case Skills Focus: New Location, Profit Drivers, Investor Relations, Handout Review
S Start with Specifics
Start with Specifics
Say the following to start the case:
• “WOW Food is a food truck based in
Philadelphia. Many US cities have a variety
of food trucks offering Asian, American,
• Say, “The investor team needs your help.
Mexican, fruit and other delicious themes.
The food is prepared fresh, stored in the
truck and then sold out a window at the
side of the truck.”
• Ask, “Are you familiar with these kinds of
trucks?” Let the candidate talk some about
what he knows and explain the concept
• Plan to review the candidate’s plan in the
more if necessary.
• “WOW’s offering is health food and their
name is short for Wellness on Wheels.
WOW Food includes: falafel, eggplant,
CRACK THE CASE WORKSHOPS
gluten free side dishes, vegetarian Be ready if asked:
sandwiches, fresh produce and juices. • Competitors – there are several in every city.
They brag that they don’t own a freezer! • Pricing – WOW is competitive with the
They are ready to take their success to one average lunch without drink costing $6.50.
new city: Boston, New York, Chicago, or
• Awareness – WOW is a new brand in all
Los Angeles.”
target cities.
• Seasonality / Hours – Many of the trucks
They want to anticipate any profit and
stay open year round. Philadelphia tends
build-out challenges with opening a
to have a mild winter. WOW is open from
new location. Please explain what they
11am–4pm each day.
should consider to make any location as
• Local Produce – Sourced from organic
profitable as possible. The Philly truck has
farmers and healthy food distributers.
been in business for 3 years.”
They have great relationships with the
suppliers
next section (Manage the Structure) and later
give a handout showing 6-month financials
for a test city, Boston.
29
 30

WOW Food CRACK THE CASE WORKSHOPS

Case Skills Focus: New Location, Profit Drivers, Investor Relations, Handout Review

M Manage the Structure

Manage the discussion around a structure
• This case requires a broad structure focused on
several aspects of opening a new location. Your
goal is to a) test the candidate’s ability to explain his
plan, b) look for overlapping thoughts, and c) check
that he is searching for relevant data. Business
judgment and common sense are key here.
• Remember that the candidate typically “asks for • Test the breadth of thinking. “What else would
a minute” to collect his thoughts and structure you like to include in your structure?” (e.g. ask
a plan. He should present his approach. Coach this if there is an obvious gap in the candidate’s
the candidate to use a method that creates a thinking). Help by providing hints where necessary.
structure. Creating a structure and presenting it to
the interviewer is the most important part of any case
interview.

PROFIT TREE
Revenue minus Costs
In the new city we want
REVENUE profit as high as possible.
COST
Block
PRICE (maximize) P X V VOLUME (maximize) FIXED COSTS (minimize) FC + VC VARIABLE COSTS (minimize)

Meals Sides Foot Traffic Behaviors Ordinary Market specific Materials Labor
Break • Full meals • Side dishes • Good location • Order full meals • Truck • Warehouse / Prep space • Fresh food • Hourly workers
• combos • Vegetables • Hours • “Regular” customers • Equipment • Regulatory fees • Paper prods • Overtime
• Drinks

… Where do … Which add-on … What is the … What is the … Can we buy … Which cities are … Will we be … How does
people pay items can we typical number typical order the truck and experiencing able to source staffing vary in
Ask the most? charge more of customers size (items) equipment the biggest our fresh food the truck and
… Are customers for? served per day in each city from the same increase in easily in each the rental facility
price in Philly? compared to Philly vendor? rents? city? throughout the
sensitive? Philly? week?

• Meal prices by • Typical drink • Most popular • Order size by • Typical cost of • Average • Weekly • Typical staffing
Data city and side prices lunch hot spots items by city fully equipped warehouse rental expense on levels for Philly
$, %, # • Popular high by city and for truck food truck prices by city fresh food by • Hourly wage
priced combos competitor • Typical city rates by city
by city regulatory fees
 WOW Food
Case Skills Focus: New Location, Profit Drivers, Investor Relations, Handout Review
A Ask for Numbers
Ask about data and numbers. You must test a specific analytical skill. Transi-
tion to the “Data Pool.”
1. “That was a thorough structure. Now, I’d like to show you some numbers from the Boston
pilot location. They have been open for 6 months and they have some data for you to
review.”
2. “As you look at this handout, what stands out to you? Please walk me through your
insights.”
3. Give the handout. The best candidates will talk through the data as they review it. (At the end
of the case, suggest he stay connected with the interviewer without too many moments of
silence throughout the case.)
Good handout discussions will center on the profit tree:
… Revenue: Monthly Boston revenue is down $9k. Annualized that’s about 12 x $9k
= $108k. Or look at totals, Philly = $32k x 12 = $384K vs. $23k x 12 = $276k. $384 -
$276 = $108k.
… Profit: Big differences in profit margins (Philly 80% vs. Boston 65%) make for a
very large gap. Profit is about $10k less per month in Boston. Annualized that’s 12
x $10k = $120k. Looking at totals, Philly = $384k x 80% = $307k vs. $276k x 65% =
$179k). Profit is $128k less in Boston, or Philly is about 70% ($307k/$179k) more
profitable.
… Pricing: Boston prices and the average ticket total seem to be somewhat higher
which is good.
… Volume: This is the biggest driver behind the lower revenue since there are about
1,350 fewer orders in Boston (1,350 / 20 working days per month = ~65 orders per
day). The new brand, truck location or customer tastes may account for volume
being lower.
… Variable Costs: The profit margin reflects the variable cost level. Most likely the
Philly location has worked with vendors to get input costs lower, or Boston is a
more expensive place to do business.
… Fixed Costs: Costs for the truck and location are about the same.
CRACK THE CASE WORKSHOPS
R Request a Recommendation
Push the candidate for a recommendation
• The candidate has “pre-thought” with his initial structure through the
potential challenges that a new location may encounter. He also has data
that shows there are specific issues in Boston.
• Say, “Now that you have thought through this situation and have
reviewed some data, what would you recommend Boston do about
profit? The Boston team has been surprised at how long it has taken to
build traction with the WOW brand.”
• Expect to hear clear logic in the final recommendation and integration of all
that was discussed. The topics below should be covered to some degree, but
the final discussion may vary quite a bit.
… Overall: “Boston needs to perform at the level of Philly.”
… Pricing: “Price does not seem to be the problem. The average price in Boston
is greater than Philly ($7.94 vs. $7.55). Boston could try to raise prices more,
but they may not be competitive. A $1 price increase x 2900 customers
would close about 1/3 of the profit problem, but there is a risk of turning
customers away.”
… Volume: “Just increasing monthly volume by 500 people (25 per working
day) would boost sales $7 x 500 x 12 = $42k. Advertisements, word of mouth
and offering deals may help.”
… Variable Costs: “Raising the profit margin would help but may be more
difficult. Boston should check to see they are following WOW standards and
not wasting food. They may need to shop more affordable suppliers.”
… Weather: “2 months of the data was during the fall which may have been
impacted by cold weather. Boston is colder than Philly.”
… Creative Ideas: “Could they move the truck to different locations in the
city? I know one food truck tweets their new location each day to create
excitement and target new customers.”
T Track & Practice
• Help the candidate track strong and weak areas. Reading through data is a critical
skill for many cases. Recommend that he find other data handouts and practice
reading the main insights out loud. The candidate should also practice quick
calculations to boost speed.
31
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Hank’s Hardware
CRACK THE CASE WORKSHOPS

Case Skills: Case specific words, root causes, profit

S Start with Specifics
Say the following to start the case:
• Hank’s Hardware is a chain of 25 “small town”, high service
hardware stores on the east coast (similar to Ace Hardware).
• Hank’s offers a wide variety of hardware items for your home
like tools and shelving as well as seasonal items like BBQ
grills and Christmas decorations.
• Their unique marketing edge is that they are conveniently
located in your neighborhood and are much more accessible
Be ready if asked:
than Home Depot.
• All of the stores have been in place for 10 years and have been
doing well. They are located in similar, upscale suburban,
outdoor malls.
• Typically these outdoor malls are populated with grocery
stores, bookstores and clothing retailers.
• Ask, “Have you been in this kind of hardware store before?”
or “What kind of project took you to the hardware store?” Let
the candidate chat about a recent experience.
• Say, “You are a manager of 10 of the 25 stores. One of the
stores in your area has had a steep decline in profit over the
last six months. What would you do?”
• Plan to review the candidate’s plan in the next section (Manage
the Structure).
• Additional Goals – management wants to return the store to
profitability and make up lost profit if possible.
• Competitors – No data on competitors’ sales.
• Customers – No data indicates that customers have changed
their tastes.
• Industry shift – No information that there’s a change in the
industry. Ask, “Why were you thinking about the industry
overall when we know that only one location has changed?”
After reviewing the structure:
• Prices – prices for the product have not changed. They are a chain
so they are similar across locations.
• Fixed Costs – there have been no changes.
• Variable Costs – there have been no changes.
• Volume – “I’m not sure, let’s come back to that later.” OR,
“That’s a good question. Let’s look at some data I have.”

M Manage the Structure

Manage the discussion around a structure Look for “case specific” thinking, breadth and depth.
• This case is a simple drill down on the drivers of profit. Most candidates will face several profit cases, • Remember that the candidate typically “asks for a minute” to collect his thoughts and structure a
so the key is to be thorough and case specific. Your goals are to a) test the candidate’s ability to plan. He should present his approach. Creating a structure and presenting it is the most important
explain his plan, b) look for overlapping thoughts, and c) check that he is searching for relevant data. part of any case interview.
Business judgment and common sense are key here. Also, watch out for candidates that want to turn
the discussion into 20 questions rather than presenting a plan. Play the silent partner role and be
slow to give data.
PROFIT TREE
Revenue minus Costs
Block REVENUE COST

PRICE (down) P X V VOLUME (down) FIXED COST (up) FC + VC VARIABLE COSTS (up)
Big Ticket Cheap # of Customers Purchase Size Ordinary Special Materials Labor
Break • Grills • Screws • Location / Access • No upgrades • Rent • Branding / marketing • Cost of goods • Hourly workers
• High-end saw • Wires • Poor selection • Not available • Utilities • Store remodel • Overtime
… Have prices been changed for a … Is there good access … Is product available? … Has a fixed cost changed this last year? … Have any of the product or labor costs changed
Ask large number of products? (not to the store? … Is customer service • Rent – specific to the shopping mall or region? this year?
likely since store is a chain) … Has home building consistently high? • Equipment – new for this store only? • Wages – did the employees join a union?
… Has the store been running declined in area? … Is product mix good? • Utilities, leases, supplier contracts • Product costs – they are a chain store so it is not
store specific promotions? … New Home Depot Has it changed? likely the problem.
type store move in?

Data • Prices of high • MSRP vs. • Number of • Mix of high • Stockout % • Major fixed • Large spends • Supplier • Monthly hrs., wages and benefits
margin goods actual price customers per val. vs. low over last 12 costs over 12 by category price change costs (salaries, hourly, OT)
$, %, # over last 12 over last 12 day last 12 val. prods mos. mos. for 12 mos. report
mos. mos. mos. sold
 Hank’s Hardware CRACK THE CASE WORKSHOPS

Case Skills: Case specific words, root causes, profit

A Ask for Numbers 7. (INTEGRATION) “Why do you think there has been this shift to the low margin products?”
… People can’t find the high margin products
Ask about data and numbers. You must test a specific analytical skill. Transition … High margin products have not been available (stockouts)
… Customers’ budgets are tighter in particular for this location (likely tighter all over the US, but more extreme
to the “Data Pool.” here)
… There’s been a change in promotion that has prompted people to buy the low margin products
1. (BREADTH) “What else would you like to include in your structure?” (e.g. ask this if there is
… Other?
an obvious gap in the candidates’ thinking).
8. (INTEGRATION) “To wrap up, I need to tell you what the team found. At the location where
2. (DEPTH) “Let’s talk in detail about some of the areas in your structure. Could you walk
profit is down, some employees had a bright idea. They thought it would be easier for the
me through the data you would need for each section in order to find out what is
customers to find their products if they put a lot of the high volume sellers (low margin
happening?” (The candidate should be able to explore each section and lay-out his thoughts.
product) toward the front of the store. They thought it would be easier for customers to
To understand the shift in revenues or costs the candidate would need to collect about 6–12
find everything and cut down on “silly” questions. Given the data and all these facts, what
months of data for each category).
would you do?”
3. (DEPTH) “Hank’s Hardware has a policy that they try to stock 3 levels of product for each
category. For instance, low, medium and high quality hammers or drills. Why would they
do that?” R Request a Recommendation
… Different customer needs and budgets … Try to upsell customers, e.g. switch from Push the candidate for a recommendation
… Staying competitive, we have to offer wide medium to high
variety … Full range of product required by supplier • Short Term:
• Quickly turn the store back to its original format (3 levels of product
4. (NUMBERS) “Those are some good thoughts. I do have some data here that I need your together) which is profitable in the other 24 locations.
help interpreting. Please review this slide and let me know what you see.” Show the chart. • Train the employees on product profit margin and placement.
5. (NUMBERS) “Please calculate the profit for each product type.” Expect exact numbers.
• Mid Term:
6. (NUMBERS) “What’s going on here?”
• “When we put low margin products in front of customers, they bought
… Selling 3 lines by product type … After, low quality margin products were them, perhaps we can push high margin goods in certain areas.”
… Before, high margin lines were selling more selling more units
• Explain your thinking about how pushing high margin goods may regain
units … Revenue has stayed the same but profit is
lost profit.
down
• Long Term:
• “Why are we selling products at negative margin?” You must carry all 3
products, but vendor negotiations are next month.
Total Store Total Store
Revenue: $10M
BEFORE PROFIT DROP
Revenue: $10M
AFTER PROFIT DROP • Negotiate product prices so that the -10% becomes 0% at least. This will
result in $350k savings for 6 months, covering the majority of the $425k net
Revenue Revenue drop in the last 6 months.
Margin Profit Margin Profit
Breakdown Breakdown

High quality 15% 40% $600,000 High quality 15% 20% $300,000
T Track & Practice
Medium quality 5% 25% $125,000 Medium quality 5% 30% $150,000
Track weak areas and plan to practice and drill
Low quality –10% 35% $(350,000) Low quality –10% 50% $ (500,000)
• Help the candidate track strong and weak areas. Reading through data and finding root
$375,000 $ (50,000) causes is a basic skill. Recommend other data handouts and practice reading the main
insights out loud. The candidate should also practice quick calculations to boost speed.

33
 34

HonesTees
CRACK THE CASE WORKSHOPS

Case Skills: Supply chain steps, market sizing, new launch

S Start with Specifics • Ask, “Are you familiar with some of the backlash toward
cheap labor or child labor? What do you know?” Listen
outline what customers will want and explain how HT
communicates their vision. How can your thoughts
for case specific words like “labor conditions”, “unions”, support their strategy?”
Say bold “quoted” sections to the candidate: “durability”, “quality”, or “low cost labor”. • “Proof of Concept – HT wants to know if there is
“HonesTees is a start-up, high-end, t-shirt company. Their sufficient demand to be profitable. They need advice on
“Management also believes that customers are willing to
mission is “full disclosure”. They just launched and have a lot production levels and marketing.”
pay more, up to $30 USD for an organic, cotton t-shirt, if
of questions about their strategy and overall market. They are
they know all the facts about how it was made. HonesTees Be ready if asked:
combatting the cheaply made, “throw away” clothing trend
management thinks that by selling directly from their website
among consumers and retailers.
they will hit the margin they need to be profitable.” • Competitors – they face big box stores and other niche,
They think customers want to know where products are fair-trade offerings.
sourced, how they are made and whether the product causes • Say, “HonesTees needs help in two ways:”
• Pricing – there is no information right now.
harm along any step of the value chain. HonesTees believes • “Value Chain Exposure – The HonesTee team wants • How big is their marketplace? – there is no information
customers will pay a little more for assurance that they are to show their integrity in each step of the value chain.
right now.
buying a “good” product.” For each step they need you to identify the step,

M Manage the Structure
Manage the discussion around a structure
• The structure begins with breadth of thinking across the
manufacturing value chain. Test for 1) candidate’s ability to
explain the chain, 2) overlapping thoughts, and 3) relevant data
or discussion. Business judgment and common sense are key
here. Add your own “Be ready if asked” comments as you give this
case over time.
• Test the breadth of thinking. “What else would you like to
• Candidate typically “asks for a minute” to collect his thoughts and
structure a plan. He should present his approach.
• Coach the candidate to show some kind of structure. Creating
a structure and presenting it to the interviewer is the most
important part of any case interview.
include in your structure?” (e.g. ask this if there is an obvious
gap in the candidate’s thinking). Help by providing hints where
necessary. In this case, encourage a “Block / Break / Ask” format.
Does he have 3-4 blocks? Does he have breaks to go deeper by
topic? Does his plan lead to a natural “ask” or discussion? Also
you will be looking for the candidate to explain how HT can
communicate their vision on their website.

Select Suppliers / Purchase

Block Raw Materials Manufacture & Assemble Pack & Distribute Market & Sell

Cloth/Thread Suppliers Labor Sewing Labor Materials Shipping Web Direct Retail
Break • Fair-trade • Processes • Good working • High quality • Labor, wages • Eco friendly, • Show full • Lower price • Restrictions of
• Fair price • Promises vs. conditions equipment and ages limited energy • Makes business working with
• Organic Competitors • No kids! • Clothes that are amounts footprint sustainable large retailers
• Facilities • Fair wages built to last long • Which worker • What materials • Which methods • Who do you hire? • Where do target

Ask • What are the • Supplier promises and • Own manufacturing

or 3rd party?
• QA processes?
• Independent research
conditions are
safest?
provide lowest
environmental
are the
greenest?
• Are offices green?
• Where do profits go?
customers shop?
• What are pros/cons
selection criteria? validation methods?
• Level of management validating superior impact? • What if not happy? of working with
oversight? quality? • What is return policy? retailers?

• Explain material • List all suppliers • Clear labeling on shirt • “No problems” • Profile workers on • List material • Show fuel • Some portion is • Explain the
HT Full selection and • Describe selection w/ facility data guarantee: rip, hole, web site sources use: local vs donated to social decision to avoid
Disclosure durability process in details • Facebook live tour seam—anything!— • Offer micro loans • Show recycling long distance mission retail despite
Website • Institute structured • Selection criteria and of sites replace with new one to ee’s percentages production • Choose local, minority economic boost
reviews of quality best practices used • Customer visits • Consumer reviews on • Zero impact goal • Only offer low owned businesses • Explain pros and
• Suppliers with • Whistle blower product quality vs. & certification impact options where possible cons of retail
credential and site protections alternatives—include —“we are in this • Donate returned model to society
reviews improvement areas together!” shirts
 HonesTees CRACK THE CASE WORKSHOPS

Case Skills: Supply chain steps, market sizing, new launch

A Ask for Numbers Push for Analysis

• Now that the candidate has the data, ask, “What insights do you see in the data?”
Ask about data and numbers. You must test a specific analytical skill. Transition Good candidates estimate profit out loud since that was one of the company’s goals.
to the “Data Pool”. Good candidates may have already “jumped in” the data pool Listen for these comments:
by asking for specific data when explaining their plan. Be careful about what data
… “This seems to show production and marketing levels.” (good)
you share. … “Let me do some quick estimates.” (good)
1. “I need you to think about the potential market size. How would you get started in … “Could I have a moment to do the math?” (bad, no engagement)
thinking about consumers and whether or not this business is profitable. What customer … “I’m noticing how price sensitive customers are.” (good)
types would you market to?” … “Calculations show Levels A & B to be almost the same.” (good)
… “Level B is the best, we should do it.” (bad, not thoughtful)
2. Expect types like below. After the candidate names a few, give the data. You are testing
for breadth of thinking again.
… Eco Students – those who care and will pay more
… Green Moms – shop at Whole Foods, money to burn
R Request a Recommendation
… Gruppies – Green Urban Professionals Push the candidate for a recommendation
… Companies – want to seem green, purchase shirts for events
… Schools – responding to concern and pressure from students
• Now that the candidate has talked through costs of production and
considered the 3 potential projection levels, you need to test his ability
3. “Those are some good categories. I have data for you.” Read the data above the black line. to integrate all the data and give a firm recommendation.
Candidate should be writing it down. The best ones look for patterns and do quick calculations.
• Prompt the final recommendation: “Now that we have looked at the
value chain and the different levels of production and marketing,
What would you recommend?”
12 Month Projections
… Off-Track Answer: “Level A or B is about the same so I’d go with Level A because the price is
lower. We can get more customers that way.”
Level A Level B Level C … Average Answer: “Level B is better by $1000, but that could easily be made up if we could get
Level A’s loan to be smaller. Our investment in Equipment and Marketing may be too great. By
Green Moms shirts sold 3000 2500 2000 keeping the price lower, we may attract more customers over time. But we may be giving away
profit for no reason.”
Eco Students shirts sold 2000 1500 500 … Great Answer: “Level B’s $1000 advantage makes it the best option with 3 additional reasons:
Price per shirt 28 32 37 1 – we need fewer customers but are still sustainable; 2 – by keeping price high we don’t give
away profit as we attract new customers; 3 – the higher price reminds people they are buying
Full Production Cost per Shirt 18 20 22 quality and 4 – With Year 1 profits I would recommend we invest in some of the full disclosure
ideas we discussed. My high priority would be employee care and vendor certification. We want
Loan Required (Equip/Mkt.) $43,000 $40,000 $38,000 to show that we are following through with our promises.”

Give Data Above Line Only

Profit per Shirt 10 12 15
T Track & Practice
• Help the candidate track strong and weak areas along any part.
Total Shirts Sold 5000 4000 2500
• Practice suggestions can include, starting the case again, drilling on the math or
Total Revenue $50,000 $48,000 $37,500 closing the case several times. Drilling builds skills fast.
Total Profit (Tot. Rev—Loan) $7,000 $8,000 –$500

35
 36

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37
 38
CRACK THE CASE
CTCS Case
WORKSHOPS
Track your progress
101 Know your region

SYSTEM
Checklist START
HHH
Study by type
Practice by difficulty

CASE SCORE CASE SCORE CASE SCORE

101
START Krause Aerospace
407
FULL RussoGaz 603
FULL Always Fresh
HHH HHH HHH

102
START United Standard
408
START Foundation Bank
604
MINI Granny’s Organics
HHH HHH HHH

201
START Khepri Transportation
501
START Bhawani Print
605
MINI Tattoo Redo
HHH HHH HHH

202
MINI Saudi Major Group 502 Rickshaw Rules of the Road
SIZING
606
FULL Slash & Burn Investors
HHH HHH HHH

203 503 Man in the Mirror 607 From Crack the

START Shavit Technologies Office Everything
HHH
SIZING
HHH
MINI
HHH Case System

204 Cop Cars in Dubai

SIZING
504
MINI Siam Tea Company 608
FULL Green Thumb
HHH HHH HHH

301 School Daze

SIZING
505 Virtual Vietnam
SIZING
609
START Plainfield Industries
HHH HHH HHH

302
FULL Blueblood Distribution 506
MINI E&M Brothers Beer 610 Room with a View
SIZING
HHH HHH HHH

401
START Dona Air
507
FULL Kryptonite Toys & Parts 611
START Yellow Brick Road Distribution
HHH HHH HHH

402
MINI I ❤ JIT 508
START Albion Inc.
612
START Mexican Impasse
HHH HHH HHH

403
FULL Blaustahl 509
START Kawaguchi Labs
613
MINI Windy Island
HHH HHH HHH

404
FULL Noble Line Travel 510
FULL Clark & Gable Shoes 614 Border Out of Control
SIZING
HHH HHH HHH

405
START Ricci Carta
601
FULL Fitness Xtreme 701
START Enrique De Chocolate
HHH HHH HHH

406 EU Oil Consumption

SIZING
602
START Muncie Mission Ministries
702
FULL Houdini Pretzel
HHH HHH HHH
CASE PACKS BY ZONE AND MENTAL ROADMAP
ZONE 1 Strategy Case Number and Type

ROADMAP

1 Merge, Acquire, Joint Venture

401
START
HHH
506
MINI
HHH

ROADMAP

2 Growth Strategy
201
START
HHH
501
START
HHH
602
START
HHH
613
MINI
HHH
Track your progress
P
ROADMAP

3 New Business or Product

510
FULL
HHH
604
MINI
HHH
609
START
HHH 101 Know your region

START Study by type

ROADMAP

4 Enter a New Geography or Market

408
START
HHH
603
FULL
HHH HHH Practice by difficulty

ROADMAP

5 Exit a Business or Market

102
START
HHH
606
FULL
HHH

ZONE 2 Operations

ROADMAP

6 Maximize Profit
101
START
HHH
404
FULL
HHH
601
FULL
HHH
607
MINI
HHH
From Crack the
ROADMAP

7 Change Price
507
FULL
HHH
605
MINI
HHH
611
START
HHH
Case System

ZONE 3 Organization Market

Sizing Cases
ROADMAP

8 Streamline a Process
302
FULL
HHH
612
START
HHH

204 301
ROADMAP

9 Restructure the Team

202
MINI
HHH
701
START
HHH
SIZING
HHH
SIZING
HHH

ZONE 4 Finance 406

SIZING
HHH
502
SIZING
HHH

ROADMAP

10 Valuation
403
FULL
HHH
407
FULL
HHH
504
MINI
HHH
503
SIZING
HHH
505
SIZING
HHH
ROADMAP

11 Risk Management
203
START
HHH
508
START
HHH
610
SIZING
614
SIZING
HHH HHH

ZONE 5 External Forces

ROADMAP

12 Competitor Attack
402
MINI
HHH
405
START
HHH
702
FULL
HHH

ROADMAP

13 Market Shift
509
START
HHH
608
FULL
HHH

39
 40
CRACK THE CASE WORKSHOPS

CREATING THE PLAN

Minute 3

Derek Ding Bindu Bright

12
11 1
10 2

9 3

8
7 5
4
Derek pulls the slide closer and says he’d like to take a It does not take Bindu long to distinguish herself from
minute to review the information. He holds it tightly the other candidates. After glancing at the slide, she
6

and I notice his left hand leaves a sweat mark on the
desk. That’s not a good sign. Then the red flags start
flying.
Tense Posture: The head drops, the shoulders round
and the eyes dart across the page with an intensity that
It’s clear Bindu could bore holes into the paper. It’s apparent that the
slide is unnerving him.
is ready to get Erratic Notes: While looking at the slide, he scrambles
for his notepad and nervously begins to jot down a few
down to work, points. His chicken scratch is sloppy and erratic. I doubt
the notes will help him later. I’m trying hard not to pre-
but she is still judge, but I have seen this all many, many times before.
very relaxed. Stressed Face: Derek is not enjoying himself much; his
face is full of tension. I’m sure he knows better than to
get this worked up during an interview, but his anxiety
is getting the better of him. Would he be this bad in
front of clients?
From Crack the I try to help him out: “All of the information I give you
Case System will always be available, so you don’t need to copy
down the bullets if you don’t want to.”
He mumbles a quick “Thanks,” and continues reading.
He then asks for a minute to “structure out a framework.”
asks, “Will I be able to look at this information later in the
interview?” She scans the data and takes a few notes.
Relaxed Posture: Bindu seems like she does this every
day. It’s clear she is ready to get down to work but she
is still very relaxed. I’m starting to get a good feeling
about her abilities.
Organized Notes: As she scans the data, Bindu quickly
takes down a few notes. I notice that she already jotted
down a few questions for herself. Her writing is neat
enough to read from across the table and she keeps me
in the loop.
Relaxed Face: Bindu is easily looking back and forth
between me and her notes. She is calm and I could see
her doing well in one of our more stressful client meet-
ings. I’m hoping that she can back this up with some
good smarts.
Bindu takes charge quickly: “This information is help-
ful. I’d like to take a minute or so and lay out an approach
that we can discuss together. We’re focused on profit, so I’ll
be looking at revenue and cost drivers that will lead us to
some solutions.”
 CRACK THE CASE WORKSHOPS

SHARING THE PLAN

Minute 4

Derek Ding Bindu Bright

12
11 1
10 2

9 3

8
7 5
4
After about two minutes (a little long, but acceptable), Bindu is ready to go in about one minute. She is point-
he lifts his head and begins to speak. ing to her paper and ready to explain her thinking.
6

Weak Plan to Solve the Case
“It seems that DuraMed Depot wants to maximize profit.
And profit is revenues minus costs. Can you tell me a little
more about how DuraMed makes money in this business?”
As with a lot of That’s it? I’m a little shocked at how limited Derek’s plan
is. I sense that I’m going to have to do a lot of digging
candidates, I to better understand how Derek thinks. He didn’t do
himself any favors by not making clear how he’s think-
didn’t hear any ing through the situation.
case-specific As with a lot of candidates, I didn’t hear any case-spe-
cific language, like the words “medical equipment” or
language. “hospital”. There’s also no case-specific logic about why
a durable medical equipment company, which seems
stable with clients like hospitals and healthcare facilities,
would see a drop in profit.
I’m glad Derek wants to have a discussion, but his
From Crack the initial question is so elementary and broad, I’m not
Case System
sure he won’t hit me with more questions soon. I’m
ready for the interview equivalent of the game show 20
Questions.
Comprehensive Plan to Solve the Case
“Thanks for the minute. Since DuraMed Depot wants to
focus on profit I have laid out a profit tree.
“My hunch is that over time DuraMed Depot has lost
control of their costs, since it would be a little unusual for
revenue from hospitals and clinics to drop across the board.
Of course revenue is driven by price and volume, so I would
like to find out if there have been price point drops, perhaps
to competition. Volume decline could happen because
a few large customers could be ordering from different
vendors. As for costs, it will be interesting to see if my theory
holds. On the fixed side they may have seen an increase in
utilities, rent or warehouse expenses. As for variable costs,
I’m curious about labor and the suppliers they use for items
like wheelchairs and crutches.
“If it’s OK with you, I’d like to test my hunch by looking at
costs first. Do you have costs broken down by fixed and
variable over the last 12 months?”

41
 42
CRACK THE CASE WORKSHOPS

Enter a New Geography or Market

F Form a Plan
ROADMAP

4 1 Think It
MVM™ Roadmap Similar path to introducing a new product.
From Crack the
Case System

1. Strategy, Change Direction—Our client is

Zone 5 starting something in a new location.
TYPICAL QUESTIONS 2. Operations—What’s the demand? What can
3 Zone 4
“My client wants to start selling Zone 3 we charge? How do we build awareness?
Finance 3. External Forces—Will suppliers have
their product line in Asia. Is that Zone 2
Organization
enough raw materials? How does our
a good idea?” Operations product compare to the competitors?
Zone 1
How does our market share compare? Are
“ABC Co. is ready to open seven there barriers to this industry in our new
Strategy 4
new retail locations in Texas. 2 countries?
What kind of issues do you 1
R < Volume
Price People CASH 4. People—How good are our people?
think they’ll face?” 6
Customer 5. Distribution—How will we distribute?
Systems Measure D/E
“I have a construction company 6. Financing—What will happen with the
C < Fixed
Variable Processes 5 company’s debt/ equity?
client that wants to begin
opening restaurants. How
would you advise them?”
2 Plan It

SIGN POSTS
Listen for These Key Terms

Core Expand
Business
New
Enter Market

Start Distribution
Selling
Channels Barriers
to Entry 3 Present It
“Our goal is to enter a new country, so I want to determine which countries offer the best
revenue and ease of entry. Issues like suppliers, competitor response and industry barriers will
Test these skills by practicing be important. Time permitting, I also would like to discuss internal support issues like our team,
Case Start 408 marketing, distribution and financing. Before I go down this path, does management have any
specific goals for our team? For instance, the number of countries or revenue or profit targets?”
 From Crack the
Case System
CRACK THE CASE WORKSHOPS

MBACASE Scorecard
1 3 5
OFF-POINT AVERAGE GREAT

Communication

1. You used an answer first style. Answer last and hard to follow Mix of answer first and answer last On-point and engaging

2. You carried the discussion well and drove the

Needed frequent prompting to move forward Occasionally awkward, but moved ahead Fluid, lively and momentum toward solution
case.

Notes were messy and scattered,

3. You used your notes effectively. Fairly neat, disorganized, seldom used them Neat and organized, referred to them frequently
did not refer to them

Structure & Logic

4. You had a logical and clear plan to solve this
Lacked a structure, direction unclear Structure incomplete, skipped key areas Clear plan, covered all key issues
case.

5. Your plan was MECE.

Several overlaps and full of gaps Some overlap, 1–2 key gaps Good breadth, no overlaps, no gaps
(Mutually exclusive, collectively exhaustive)

6. You referred back to your plan and updated

You basically forgot about it Referred to early in case but not at close Referred to often, updated as needed
when appropriate.

Analytics

7. You analyzed the data accurately and drilled Some math mistakes, good Accurate math, excellent on-point
Frequent math errors, vague questions, nervous
down for additional data when needed. questions, some confidence questions, confident

8. You integrated the data and found key insights.

You missed all the linkages between the data You found some insights and connections “Connected the dots” and found key insights
Saw the big picture.

Integration & Close

9. Your final recommendation integrated the data Solution lacked data support, gave Used some data, little connection Integrated all facts and data,
with the case question and your initial structure. answers “from the gut” between analysis and plan offered relevant next steps

10. You were a persuasive, engaging business Professional, somewhat engaging, Persuasive, professional, engaging,
Unconvincing, lacked confidence, robotic
advisor. lacked solid recommendations bottom-line oriented

Notes:
Total Score:
(10–50)
* Tip: Save your scorecards and track your progress over time.

43
 44
CRACK THE CASE WORKSHOPS

Your Behavioral Stories

Develop 2 stories for each letter. Be Answer First! Limit each one to 90 seconds.

1
I Individual Contribution
2

1
M Manage or Lead
2

1
P Persuasion
2

1
A Analytics
2

1
C Challenge or Failure
2

1
T Teamwork
2
 CRACK THE CASE WORKSHOPS

Block, Break & Ask Method

Case
Specific
Words

Block

Break

Ask

45
 46
CRACK THE CASE WORKSHOPS

Block, Break & Ask Method

Case
Specific
Words

Block

Break

Ask