Cracking the Case

Case Interview Training

St rat egy and Operat ions
Oct ober 3, 2005

© 2005 Deloit t e I nc.

Ca se I nt e r vie w Tr a in in g Age n da

Obj ect ives

What is consult ing?

Who is Deloit t e?

Case I nt erview Preparat ion

` What is a case int erview and what do com panies expect ?
` How do you approach a case?
` Exam ple case
` Pract ice
Addit ional I nform at ion

2
Obj e ct ive s

By t he end of t his session you should:

` Underst and what a career in consult ing has t o offer
` Know how Deloit t e is posit ioned in t he consult ing indust ry
` Underst and what a case int erview is
` Be ready t o begin case preparat ion:
ƒ Know what is expect ed in a case int erview
ƒ Underst and how t o approach cases

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Ca se I nt e r vie w Tr a in in g Age n da

Obj ect ives

What is consult ing?

Who is Deloit t e?

Case I nt erview Preparat ion

` What is a case int erview and what do com panies expect ?
` How do you approach a case?
` Exam ple case
` Pract ice
Addit ional I nform at ion

4
Type s of Con su lt in g

` Corporat e
St rat egy, Financial and Perform ance
St r a t e gy & Ope r a t ion s Managem ent , Operat ions

` Organizat ionand People Perform ance, HR

H um a n Ca pit a l Operat ions and Technology, Change Leadership
and Learning, Tot al Rewards

` Soft ware
relat ed – Cognos, Oracle, Microsoft ,
En t e r pr ise Applica t ion s SAP, CRM packages

` Developm ent services, Ent erprise Connect ion

Services, Technology, Archit ect ure and Net w ork
Te ch n ology I n t e gr a t ion Services, Ent erprise Service Managem ent and
Securit y

` Applicat ion
Out sourcing, Business Process
Ou t sou r cin g Out sourcing

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 Ove r vie w of Con su lt in g Pr oce ss

N e w con su lt a n t s
u su a lly be gin a s Enga ge m e nt Clie n t s ca n be fr om
ge n e r a list s a n d a n y in du st r y
be com e m or e
spe cia lize d ove r
t im e

Con su lt a n t Clie n t

W or k is oft e n don e
Fe e s a t t h e clie n t sit e

&
Re la t ion sh ips

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M ot iva t ion s for H ir in g Con su lt a n t s

` Client wishes t o gain a different perspect ive of

Pe r spe ct ive t heir business and indust ry

Spe e d ` Client w ant s t o accelerat e t heir business

` Client
needs access t o resources such as
Re sou r ce s knowledge, research and people

` Clientneeds m anagem ent expert ise because

M a n a ge m e n t t hey are unable t o deal wit h t heir big issues

` Client needs an unbiased opinion t hat int ernal

Polit ics part ies will accept

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Ca se I nt e r vie w Tr a in in g Age n da

Obj ect ives

What is consult ing?

Who is Deloit t e?

Case I nt erview Preparat ion

` What is a case int erview and what do com panies expect ?
` How do you approach a case?
` Exam ple case
` Pract ice
Addit ional I nform at ion

8
D e loit t e con su lt a n t s h a ve a cce ss t o u n pa r a lle le d sk ills a n d e x pe r ie n ce in
t h e in t e gr a t e d fir m

Consult ing proj ect s can draw upon expert ise from ot her areas of t he firm

` Tax st rat egies,

Transaction -based relationships Value-based relationships

Broad
st ruct uring and Services
Accenture
planning IBM/PwC

` Ent erprise risk / CGE&Y

full service
business
technology consultants
cont rols / Service
monoliths
securit y Breadth Booz Allen

` Assurance / EDS strategy

boutiques Bain
financial & real CSC
est at e advisory HP
BearingPoint McKinsey

` Transform at ional
Narrow BCG
Services

out sourcing Products/Solutions-led

(highly-repeatable solutions)
Offering Consulting-led
(tailored professional services)

Source: Deloit t e I nt ernal Research

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D e loit t e is t h e w or ld’s 3 r d la r ge st con su lt in g fir m

Te n La r ge st Con su lt in g Fir m s in t h e
W or ld ( FY0 3 )

Consult in g Re ve n ue Market
Ra n k Fir m Re ve n ue Gr ow t h Sha r e
( $ M)

1 IBM $12,955 -2.0% 11.1%

Con su lt in g Fa ct s:
2 Accenture $8,272 -7.1% 7.1%
` St rat egy pract ice am ong t he
3 Deloitte $5,920 2.5% 5.1% largest in t he world 1
4 Cap Gemini E&Y $5,073 -22.6% 4.4%
` Global reach
` 38,000 consult ing
5 CSC $3,350 -8.0% 2.9%
6 BearingPoint $3,141 3.0% 2.7%
7 Hewlett-Packard $3,095 -0.2% 2.7%
professionals
8 McKinsey & Co. $3,000 0% 2.6%
9 Mercer $2,719 1.4% 2.3%
10 SAP $2,461 -11.0% 2.1%

Source: Kennedy I nform at ion

1 Kennedy I nform at ion ranked Deloit t e’s st rat egy pract ice am ong t he t hree largest in t he world over each of t he past four years
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St r a t e gy & Ope r a t ion s fit s in t o t h e Con su lt in g gr ou p a t D e loit t e

Financial
Consult ing Tax Audit ERS
Advisory

St r a t e gy & Hum an Ent erprise Technology

Out sourcing
Ope r a t ion s Capit al Applicat ions I nt egrat ion

` Corporat e and business unit st rat egy

Cor por a t e St r a t e gy ` Cust om er channel st rat egy
` I T st rat egy

` Perform ance m easurem ent

` Business risk ident ificat ion
Fin a n ce a n d Pe r for m a n ce
` Revenue cycle enhancem ent s
M a na ge m e n t

` St rat egic sourcing and procurem ent

` Supply chain st rat egy and planning
` Logist ics operat ions
` Healt h care
Ope r a t ion s

` Governm ent
` Product ion operat ions ( Lean, 6 Sigm a)

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Ca se I nt e r vie w Tr a in in g Age n da

Obj ect ives

What is consult ing?

Who is Deloit t e?

Case I nt erview Preparat ion

` What is a case int erview and what do com panies expect ?
` How do you approach a case?
` Exam ple case
` Pract ice
Addit ional I nform at ion

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W h a t is a ca se in t e r vie w ?

` The case int erview is a crit ical com ponent of t he recruit ing process at m aj or
consult ing firm s
ƒ More t im e is oft en spent on cases t han “ fit ” or “ behavioural” int erviews
ƒ Typically int erviewees are given m ult iple cases in each round of
int erviewing
` Opport unit y t o dem onst rat e your problem solving abilit ies, int erpersonal
skills, creat ivit y and adapt abilit y

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W h a t is a ca se ?
H ypot h e t ica l, ope n - e n de d
bu sin e ss issu e or dile m m a

Com bin a t ion of

Type s: Ve r ba l Ca se W r it t e n Ca se
Ve r ba l/ W r it t e n

` A short verbal ` Det ailed case is ` A short verbal

sum m ary of a provided in sum m ary is
sit uat ion or w rit t en form at , provided, wit h
com plicat ion is oft en including support ing
provided t ables and/ or t ables/ graphs
` I nt erviewee m ust ` Tables/ graphs
graphs
ask probing ` Som e analysis of m ay be
quest ions t o dat a will be aut om at ically
det erm ine root expect ed provided, or only
` I nt erviewee m ust
cause and form given in response
recom m endat ion t o good
respond t o
quest ions
specific quest ions
posed in t he case

H e lpfu ln e ss of t h e in t e r vie w e r is h igh ly va r ia ble

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W h a t a r e com pa n ie s look in g for in t h e ca se in t e r vie w ?

An a lyt ica l Sk ills Pe ople Sk ills

` Problem definit ion and solut ion ` Com m unicat ion skills
st ruct uring ƒ List ening
` Analyt ical abilit y ƒ Present at ion / speaking
ƒ Quant it at ive capabilit ies ` Business acum en
` Abilit y t o: ` Confidence
ƒ Synt hesize dat a ƒ Perform ance under pressure
ƒ Think creat ively
ƒ Tolerat e am biguit y
ƒ Defend hypot hesis

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Ca se I nt e r vie w Tr a in in g Age n da

Obj ect ives

What is consult ing?

Who is Deloit t e?

Case I nt erview Preparat ion

` What is a case int erview and what do com panies expect ?
` How do you approach a case?
` Exam ple case
` Pract ice
Addit ional I nform at ion

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Pr oce ss for Solvin g Ca se s

CLARI FY STRUCTURE AN ALYZE CON CLUD E

Ensure com plet e Develop Request Synt hesize

underst anding approach t o inform at ion t o findings int o
solve problem t est hypot hesis recom m endat ions

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Pr oce ss for Solvin g Ca se s - Cla r ify

CLARI FY STRUCTURE AN ALYZE CON CLUD E

Cla r ifica t ion is vit a l t o e n su r in g you r u n de r st a n din g of t h e

pr oble m

` List en closely t o problem definit ion

` Ask quest ions t o im prove underst anding
` Paraphrase t he original quest ion t o confirm underst anding

I f you m isu n de r st a n d t h e pr oble m you w ill ge t on t h e

w r on g t r a ck !

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Pr oce ss for Solvin g Ca se s - St r u ct u r e

CLARI FY STRUCTURE AN ALYZE CON CLUD E

A st r u ct u r e w ill a llow you t o syst e m a t ica lly in ve st iga t e t h e

issu e

` St at e your hypot hesis upfront – t his dem onst rat es insight

` Develop a st ruct ure or fram ework t o approach t he problem
` Let t he int erviewer know what st ruct ure you plan t o use

I f you do n ot st r u ct u r e you r a n a lysis, you w ill m iss cr it ica l

issu e s t h a t n e e d t o be e x plor e d!

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Pr oce ss for Solvin g Ca se s - St r u ct u r e

CLARI FY STRUCTURE AN ALYZE CON CLUD E

Ch oose a fr a m e w or k t o st r u ct u r e you r a n sw e r :
` Choose a fram ework t hat fit s t he problem , do not t ry t o fit t he
problem int o a fram ework
` Develop your own fram ework or m odify an exist ing fram ework,
as long as it m akes sense – t his dem onst rat es your adapt abilit y
` Avoid referencing a pre- m ade fram ework by it s nam e –
exam ple: “ I ’m going t o use Port er’s Five Forces t o det erm ine t he
issues affect ing com pany X”
` Out line t he com ponent s of t he fram ework in your own words

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Pr oce ss for Solvin g Ca se s - St r u ct u r e

CLARI FY STRUCTURE AN ALYZE CON CLUD E

Pr oble m Type Fr a m e w or k Opt ion s

M & A/ Ex e cu t ion ` Value Chain

` Port er’s 5 Forces

Com pe t it ive St r a t e gy ` SWOT Analysis ( St rengt hs, Weaknesses, Opport unit ies,
Threat s)

` 7- S ( St rat egy, St ruct ure, Syst em s, St yle, St aff, Skills,

Or ga n iza t ion a l Shared Values)

` 4 P’s ( Product , Price, Place, Prom ot ion)

` 3 C’s ( Com pany, Com pet it ors, Cust om ers)

M a r k e t in g
` Growt h/ Share Mat rix

` 2x2 Mat rix

` Profit = Revenue – Cost

Pr ofit a bilit y ` Revenue = Price x Quant it y

` Cost = Fixed Cost s + Variable Cost s

Ge n e r a l ` Mint o Pyram id

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Pr oce ss for Solvin g Ca se s - St r u ct u r e

CLARI FY STRUCTURE AN ALYZE CON CLUD E

Addit ion a l t ips on st r u ct u r in g:

` Logical st ruct uring is essent ial
ƒ Com ponent s should be MECE ( Mut ually Exclusive,
Collect ively Exhaust ive)
` St ruct ure your answers and how you t hink
ƒ Think out loud – say what you are going t o say, say it
and say what you said
ƒ Do not lose sight of your st ruct ure when speaking

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Pr oce ss for Solvin g Ca se s - An a lyze

CLARI FY STRUCTURE AN ALYZE CON CLUD E

An a lyze t h e pr oble m u sin g you r ch ose n fr a m e w or k :

` Explore each m aj or area of your fram ework by asking t he
int erviewer broad quest ions
ƒ Ask m ore specific quest ions about t he areas t hat m ay
result in useful inform at ion
ƒ Recap findings at t he end of each area before m oving on
t o t he next one
ƒ Abandon areas t hat will not yield helpful inform at ion –
t ake hint s from t he int erviewer

Be fle x ible a n d t a k e cu e s fr om t h e in t e r vie w e r !

You r in t e r vie w e r w ill give you h in t s a bou t w h a t a r e a s a r e
im por t a n t .

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Pr oce ss for Solvin g Ca se s - Con clu de

CLARI FY STRUCTURE AN ALYZE CON CLUD E

Th e con clu sion is t h e “e x e cu t ive su m m a r y” of t h e ca se

` Sum m arize your key findings
` St at e recom m endat ions – was your hypot hesis correct ?
` Discuss pot ent ial risks relat ed and possible m it igat ion
st rat egies
` Discuss im plem ent at ion and next st eps

You r con clu sion w ill de m on st r a t e you r a bilit y t o syn t h e size

in for m a t ion a n d pr e se n t a logica l, con vin cin g a r gu m e n t .

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Pr oce ss for Solvin g Ca se s – D Os a n d D ON ’Ts

D Os D ON ’Ts

` Relax – Take a deep breat h before you ` Don’t j um p t o an answer right away
st art ` Don’t m ake assum pt ions wit hout
` Take your t im e ( wit hin reason) - Once clarifying wit h t he int erview er
t he int erviewer gives you t he problem , ` Don’t worry about t he right answer,
ask for few m inut es t o st ruct ure your worry about t he right approach
` Don’t exclusively rely on pre- m ade
approach
` List en t o your int erview er – ensure fram ew orks – m odify or develop your
underst anding and t ake hint s
` Think out loud – m ake sure your t hought
ow n whenever possible
` Don’t appear frust rat ed or flust ered
process is st ruct ured
` Be concise – Once you have ident ified
underlying problem s, begin t o form ulat e
possible recom m endat ions
` Ask logical quest ions - The int erview er
will only provide inform at ion if you ask.
Make sure your quest ions follow your
st ruct ure
` Be confident wit hout being arrogant

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Ca se I nt e r vie w Tr a in in g Age n da

Obj ect ives

What is consult ing?

Who is Deloit t e?

Case I nt erview Preparat ion

` What is a case int erview and what do com panies expect ?
` How do you approach a case?
` Exam ple case
` Pract ice
Addit ional I nform at ion

26
Ca se I nt e r vie w Tr a in in g Age n da

Obj ect ives

What is consult ing?

Who is Deloit t e?

Case I nt erview Preparat ion

` What is a case int erview and what do com panies expect ?
` How do you approach a case?
` Exam ple case
` Pract ice
Addit ional I nform at ion

27
Ca se I nt e r vie w Tr a in in g Age n da

Obj ect ives

What is consult ing?

Who is Deloit t e?

Case I nt erview Preparat ion

` What is a case int erview and what do com panies expect ?
` How do you approach a case?
` Exam ple case
` Pract ice
Addit ional I nform at ion

28
Addit ion a l I n for m a t ion

` Visit t he Deloit t e sit e ( www.deloit t e.ca) for addit ional inform at ion on
t he firm and j ob post ings
ƒ Deloit t e will not be recruit ing direct ly from UofT undergraduat e
program s for Business Analyst posit ions t his year, but will st art in
fall 2006

` Cont act Chris Jones at cj ones@deloit t e.ca if you have any quest ions
ƒ Please do not send Chris your resum e!

` We have provided t he UTCA wit h addit ional cases t o post on t he port al

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 Qu e st ion s?

30
 Appe n dix

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M int o Pyr a m id Fr a m e w or k

` SCQA st ruct ure

` “ S” – Sit uat ion: Out line t he current sit uat ion or st at us
` “ C” – Com plicat ion: What has happened t o change or com plicat e t he sit uat ion?
` “ Q” – Quest ion: What is t he quest ion t hat arises from t he com plicat ion?
` “ A” – Answer: The answer t o t he quest ion. I t is oft en a recom m endat ion.

Answer/ Recom m endat ion

Support ing Point 1 Support ing Point 2 Support ing Point 3

Dat a/ Fact s
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Fr a m e w or k s – Por t e r ’s Five For ce s M ode l

Used t o define key forces wit hin t he indust ry

Su bst it u t ion
threats

Riva lr y Cu st om e r s
Su pplie r s
( us versus t hem )

Ba r r ie r s
to entry

Ex t e r n a l En vir on m e n t :
` Maj or econom ic shift s
` Changes in governm ent regulat ions
` Changing social concerns

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Fr a m e w or k s - Thr e e C’s

` Cost st ruct ure, breakeven, capacit y

ut ilizat ion? Cost s com pared t o
com pet it ors?
` Financial resources?
Com pa n y
` Com pany and product fit ? Core
com pet encies?

` Who are t hey? How are t hey different ?

` What is t he level of com pet it ive int ensit y in
Com pe t it or
t he indust ry? What channels do t hey use?
` How are product s different iat ed?

` What segm ent s exist ?

Cu st om e r ` How do t hey m ake purchase decisions?
` What specific feat ures do t hey look for?

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Addit ion t o t h e Th r e e C’s Fr a m e w or k

While nam es differ t he ext ra elem ent generally looks at overall t rends in t he
indust ry

`Is t he m arket growing?

` Areall com pet it ors facing sim ilar
I n du st r y Ove r vie w
problem s?
` What are t he indust ry t rends?

This can be a good place t o st art point before you go int o t he 3 C’s

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BCG m a t r ix

Can be used t o opt im ize a business’s product port folio based on product life cycle

high

QUESTI ON M ARKS STARS

Bu sin e ss Gr ow t h Ra t e

?
D OGS CASH COW S

$
low

low high
Re la t ive Posit ion
( M a r k e t Sh a r e )
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Fr a m e w or k s – Pr ofit I m pr ove m e nt

Revenue and Cost Sources

Gross Revenues:
- Unit s
- Price
Net
Sales
Discount s
` Very com m on fram ework
Ret urns

` Focus in on an area where t here

Pr ofit s
has been recent changes or t hat is
Fixed:
poorly underst ood by t he com pany
- Overhead
Cost s

Variable:
- Labor
- Mat erials

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Fr a m e w or k s – Th e Va lu e Ch a in

Ra w M a t e r ia ls M a n u fa ct u r in g M a r k e t in g D ist r ibu t ion

9 Cost 9 Cost 9 Price 9 Cost

9 Select ion 9 Qualit y 9 Product 9 Channel

9 Supplier 9 Speed 9 Place

9 Supply 9 Prom ot ion

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M a r k e t Sizin g - Ca se s

` “ Back of t he envelope” com put at ion

` Designed t o t est your abilit y handling num bers as well as your abilit y t o
m ake quick and reasonable assum pt ions

` Key is not t o get t he “ right answer” but t o clearly t hink t hrough t he

necessary st eps t o arrive at t he answer

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M a r k e t Sizin g - Tips

` Make rough est im at es but support t hem

` Use pencil and paper
` Round num bers off t o m ake calculat ions easier
` Sket ch out t he logic of how t o get from here t o t here before you st art t he m at h
` Wat ch t he int erviewer for subt le clues as t o how you are doing. You can also
ask “ does it seem reasonable?”
` Pract ice before t he int erview
` Learn basic dat a about populat ion, dem ographics, incom e dist ribut ion, et c. ( I .E
know t he populat ion of t he U.S/ Canada and how m any people are in a
household)

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M a r k e t Sizin g - Ex a m ple

H ow m a n y m e n ’s Gille t t e Se n sor bla de s a r e sold in t h e US in on e ye a r ?

` 250 m m people in t he US
` 125 m m are m en ( 50 % of all people m en)
` 100 m m m en of shaving age ( m en evenly dist ribut ed in 5 quint iles of 15
years and t hose under 15 years old don’t shave)
` 75 m m use disposable razors ( assum e 25% use elect rical based on % of m y
friends who use t hem )
` 15 m m m en use Sensors ( assum e 20% m arket share because 1out of 5 rows
of razors in t he superm arket are for Sensors)
` 750 m m Sensor blades sold per year ( assum e one razor per week and use 50
weeks t o sim plify t he m at h)

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