Cracking the Case Interview
One of the most critical part of the entire interview process is the case interviews, firms such as McKinsey, Bain and BCG extensively rely on case interviews, whereas reliance on the case interview method is relatively less for the big four audit firms (Ernst & Young, Deloitte, KPMG and PwC)
Case interviews can give the interviewer great insight into the student’s ability to organize his or her thoughts, pursue a well reasoned line of inquiry, and assemble theories on possible solutions to the problems presented in the case. It is to be noted that the method is as important as the “answer.” In many cases, especially the short type, (“How many bottles of Coca Cola were sold in India last year?”), the method is all that matters.
Bain & Company’s “How to ace an Case Interview guide” offers the following advise
To effectively crack a case, the interviewee must have the ability to:
- Break a complex problem into its component parts
- Apply business judgment to identify value
- Generate a creative range of solutions to a problem’s component parts
- Identify the most likely/attractive solutions through logical reasoning
- Generate thoughtful questions and ask for clarification of case data, as necessary
- Translate analysis into actionable recommendations
- Effectively communicate solutions in a concise and persuasive manner
Bain’s guide further clarifies the concept of a case interview:
A case study consists of a business problem taken from a real life business situation, or an example drawn from your resume. It focuses on your analytic approach to the problem, rather than specific business knowledge.
First and foremost, you can succeed in a case interview without specific industry experience. Don’t panic if the case you are given is based on an industry with which you are unfamiliar. Remember, we are interested in how you analyze the problem, not how much you know about the industry.
Practicing for the case interview is helpful. Practice by constructing examples from your resume and walking through steps 1-5. Finally, the answers mentioned demonstrate only one way to respond to the case; there is no single standard, best answer.
A sample case:
A leading designer apparel retailer XYZ having 30 percent market share in the US market is contemplating entering the Indian Market. XYZ competitor ABC in the US designer apparel market having a market share of 25 percent in the US designer apparel market is already present in India, ABC’s current market share in the Indian market is 50 percent, should XYZ venture into Indian Markets?
While every case is different and no one approach will work for all cases, it is critical to have a well-structured analysis. . The Kellogg Consulting Club Case Workbook offers the following five-step process to achieve a desired level of structure.
1. Stop and think: After the interviewer has presented the case, take a moment to think about the relevant issues, the way in which you will structure your approach, and what thought models (e.g. Five Forces, Cost/revenue) might apply.
2. Ask Questions: If you missed any information or if you are unclear about a term or technology, ask for clarification. It is imperative to start your analysis with a clear understanding of the problem.
3. Outline Your Analysis: Decide the way in which you are going to structure your analysis and communicate this to the interviewer. It will help the interviewer to understand the way in which you are approaching the problem.
4. Deep Drill: Based on your assessment of the relevant issues and your approach, pick the appropriate avenue for in-depth analysis (e.g. if the problem is declining profitability, you should thoroughly examine potential cost drivers and understand how they might have changed over time). Proceed to deep drill each appropriate area, paying attention to the time provided and seeking additional information along the way.
5. Summarize: Where possible, draw preliminary conclusions based on facts or stated assumptions. Summarize your analysis and the approach you used. If appropriate, indicate the likely next steps in further assessing the situation.
Some of the other tips offered by the Kellogg Consulting Club Case Workbook include
1. Take Notes: If it helps you to structure your analysis or if the case is quantitative, take notes.
2. Take Your Time: Feel free to pause and collect your thoughts at any time (the pause won’t seem as long as you think to the interviewer and the time might help you communicate your thoughts more clearly).
3. Think out loud: The main purpose of the case interviews is to show the way in which you analyze a problem, so let the interviewer hear your thought process and any assumptions you make.
4. Have fun: Nervous tension will come across in an interview. Try to relax and think of it as an opportunity to explore the drivers of success for a company or industry. If the interviewer lobs a detailed microeconomics question at you, then you can get nervous!
5. Research: Think about the type of consulting projects the firm does. This might give you insight into the type of case you are likely to get and the way in which you might structure your analysis.
6. Pay Attention: Pay close attention to any hints (subtle or not) that the interviewer gives you, particularly if they are trying to steer you back on course.
Short Cases:
Occasionally, consulting firms will give short cases, (e.g. how many Cars cross the gurgaon toll bridge daily? How many rats are there in Mumbai?). These cases generally take only 1-3 minutes to address and are intended to see how you approach an abstract quantitative question. The interviewer is not as much interested in the final answer as the way in which it is derived. It is particularly important to communicate your thought process to the interviewer and state the assumptions you make.
Typically, you will want to take a while to think about the question and the approach you will take, communicate this approach to the interviewer, discuss the components of an equation to arrive at a solution, state your assumptions for each component, and calculate your answer. Depending on the nature of the question, these short cases usually provide an opportunity to show the interviewer your sense of humor, so try to relax and have fun with it.
(Short Cases are extensively used by Knowledge Centers for Consulting Firms in India during campus recruitment)
Further kindly click here to learn more about core frameworks for case interviews by Victor Cheng (Victor is a former McKinsey & Company consultant)
Please go through the following videos to learn more about Case Interviews. These videos are sourced from http://www.caseinterview.com (a website run by Victor Cheng).
1. Case Interview Workshop Introduction (18 min)
2. Case Interview Basics, Case Interviewer Mindset (28 min)
3. How to Open, Analyze and Close a Case Interview (Part 1) (18 min)
4. How to Open, Analyze and Close a Case Interview (Part 2) (26 min)
5. How to practice Case Interviews (10 min)
6. Business Situation Case Demonstration (26 min)
7. Final Case Interview Tips & Strategic Planning For Your Career (22 min)
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