Case interview components

• About 20-30 minutes in duration

• Case question typically given verbally
• Candidate takes notes and uses pen/paper to do math and draw out insights

Investigation & Analysis

1. Problem 3. 6. Con-
2. Structure 4. Exhibits 5. Insight
stem Calculations clusion

• Understand • Consider what • Demonstrate • Find the key • Business • Risks & next
the problem is important comfort with issue acumen steps
• Clarify facts • Structure your numbers • Messaging • Creativity • Synthesis of
and situation approach and key insights
communi-
cation

1-3 minutes 3 minutes 10-15 minutes 5-10 minutes 1-2 minutes

Throughout the case: speed, initiative, poise, tone & body language

6
 Group Case &
Advancing Case Prep
How will this work
For each component of the case interview:

Work through case Understand how to

I’ll share details
component elevate
Sarah Group Sarah

• Either verbally or • Individually, you’ll • Learn the theory that

written on the slides, work through a given will help bring your
you’ll be given a component of the case case prep to the next
component of the case level
• Remember what
you’ve learned so far • Hear what the MCA
and put it into action! recommends for each
component of the case
• Share your
questions, analysis,
and insights with the
group

8
Problem stem

Verbally share problem stem, and answer your

clarifying questions

Listen! Then ask clarifying questions

9
Problem stem:
Theory to advance prep
1. Problem stem:
• Summarized and crisp playback (not the whole thing!)
2. Client:
• Business model (how company makes money)
• Where in the value chain they operate
• Revenue streams and customer segments served
• Client issue (why does the client believe they’re facing a problem)
• Client’s goal (including quantifiable goal in mind)
3. Market:
• Competitive dynamics
• Industry dynamics

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Problem stem:
MCA recommendation
Top clarifying questions
• Industry dynamics: I’m not familiar with Tianjin, China. Is this a large or
small city, and a business centre for this region in China?
• Business model: Is this a stand-alone restaurant or is it part of a chain?
• Revenue stream: Is this a traditional sit-down restaurant that’s only revenue
stream is from customers visiting the store and paying for food, or do they
also have other revenue streams like home delivery, take out, and catering?
• Client issue: The client believes revenues are low, but also wants help
increasing profits. Does the client believe that it is the low revenue driving
low profits or are these two separate issues?
• Client goal: When our client says they would like to increase profitability, do
they have a target they would like to reach and within a timeframe?

Case type identified

• Profitability (diagnosis and improvement)

11
Structure

Write out your structure and then share with the group

12
Structure:
Theory to advance prep
1. Targeted:
• Develop structure given what you know about client’s issue (e.g., don’t
include supply chain if this is not a key consideration)
2. Customization:
• Consider standard structures, but only as a base to jump off from
• Tailor layout and terminology (e.g., “diners” instead of “customers”)
3. MECE:
• Think of how a firm would allocate workstreams on a real project
4. Depth:
• Appropriate level, with 3 levels preferred
5. Storytelling:
• Hypothesis-driven
• Explain thought process (not just reading out what you wrote)
• Link back to client issue
13
Structure:
MCA recommendation
Client’s revenue decreasing; wants
to increase profits

Client Industry

Non-
Financial Financial Market Customers Competitors

Product/
Revenue Costs Management Growth Taste service
offering

Avg. menu Price

price Volume Fixed Variable Ambiance Size sensitivity Profitability

Capacity/ Restaurant
A la carte occupancy rent Food Food quality Segments Trends Price point

Restaurant
Buffet Party sizes License fees Beverages rating

Discounts on Location
Turnover meals convenience

Items
ordered/
meal 14
Available information
• As China’s economy is booming, the upscale dining market is growing at
20% every year
• Customers for high-end dining are generally price insensitive
• All competitors are earing money. Competitors’ price and value proposition
is similar
• Variable costs across industry are 50% of revenue
• Assume no fixed costs

15
Investigation & Analysis

Provide exhibit and ask questions

Share insights with the group and do

required calculations (after I read the question!)

16
 #12 – Upscale Restaurant (III of VI)

Exhibit

Individual Rooms (20 total) Main Room (20 tables)

Week Day Weekend Week Day Weekend

Lunch Occupancy: 80% Occupancy: 30% Lunch Occupancy: 20% Occupancy: 30%
Price per person: Price per person: Price per person: Price per person:
150 100 100 100
Party size per table: Party size per table: Party size per table: Party size per table:
4 4 4 4

Dinner Occupancy: 100% Occupancy: 50% Dinner Occupancy: 30% Occupancy: 30%
Price per person: Price per person: Price per person: Price per person:
300 200 200 200
Party size per table: Party size per table: Party size per table: Party size per table:
6 6 4 4

NOTE: During weekday dinners, there is always a line for individual rooms.
As a result, the restaurant has to turn away half its potential customers due to capacity constraints
Exhibits:
Theory to advance prep
1. Review in silence:
• Take a moment to go through exhibit in silence; no need to talk
interviewer through everything you see in the exhibit
2. Insights:
• Identify and share 2-3 key insights with interviewer
3. Analysis:
• Write down key takeaways after analysis
• Connect analysis to larger picture throughout the case

As mentioned in the first case prep session, insights are expected to be

drawn after every piece of analysis!

18
Calculations:
Theory to advance prep
1. Communication:
• Clearly communicate proposed analysis / broad methodology before
starting calculations
2. Structure:
• Perform analysis in a structured manner
3. Simplify:
• Streamline calculations and find shortcuts
4. Analysis:
• Take interviewer through analysis clearly
• Connect analysis to larger picture throughout the case
• Write down key takeaways after each piece of analysis

And don’t forget – PIVOT to new line of inquiry if information goes against
your hypothesis!

19
Investigation & Analysis:
MCA recommendation
Key insights from exhibit
• My hypothesis about the variance in occupancy between individual
rooms and the main room is:
• Government officials and business customers may prefer individual
rooms to main rooms for privacy reasons
• My hypothesis about a driver of our client’s low revenue is:
• Our client’s offering is not meeting customer demand, as they need to
turn away half of their potential customers due to capacity constraints
during weekday dinners
• My hypothesis to improve profits is:
• To examine the opportunity to increase prices since price per person
varies greatly from $100 to $300, based on day of the week and meal
Potential solutions for this situation
• Raising prices (due to price insensitivity of customers)
• Turning main room tales into individual rooms
• Configuration 20
Investigation & Analysis:
MCA recommendation
Weekday Lunch in Individual Rooms Weekday Dinner in Individual Rooms
Before After Before After
Customers 64 x (1 – 10%) =
4 x 20 x 80% = 64 6 x 20 = 120 120
~58
Price 150 x (1 + 33%) = 300 x (1 + 33%) =
150 300
200 400
Revenue 64 x 150 = 9,600 58 x 200 = 11,600 120 x 300 = 36,000 120 x 400 = 48,000
Profit 9,600 x 50% = 11,600 x 50% = 36,000 x 50% = 48,000 x 50% =
4,800 5,800 18,000 24,000
Incremental 5,800 – 4,800 = 24,000 – 18,000 =
Profit 1,000 6,000

Key insights
• Weekday lunch: Changing the price will result in 10% customer loss
• Weekday dinner: Underlying demand is 200% of capacity, so raising price
won’t reduce volume
• Overall incremental profit per weekday: 1,000 + 6,000 = $7,000
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Investigation & Analysis:
Part 2

Read next question

Listen! Work through the question and then

share with group

22
Calculations:
Theory to advance prep
1. Communication:
• Clearly communicate proposed analysis / broad methodology before
starting calculations
2. Structure:
• Perform analysis in a structured manner
3. Simplify:
• Streamline calculations and find shortcuts
4. Analysis:
• Take interview through analysis clearly
• Connect analysis to larger picture throughout the case
• Write down key takeaways after each piece of analysis

And don’t forget – PIVOT to new line of inquiry if information goes against
your hypothesis!

23
Investigation & Analysis:
Part 2 MCA recommendation
• Capital investment = $100,000
• Opportunity cost = $300,000
• $1.2M Yuan/month in revenue x 50% cost / 2 weeks of profit
• Remember: Opportunity cost is lost profit, not revenue since you won’t incur
variable costs if you don’t earn revenue
• Total cost = $400,000 Yuan
• Incremental profit per weekday:
• Main room: Current demand can be served with 10 tables, therefore no
change in profits
• Individual rooms - Lunch: No change in profits since capacity is not at 100%
• Individual rooms - Dinner: Adding 5 individual rooms will allow the
restaurant to capture 30 new customers at $300 each
• Revenue = $9,000
• Profit = $4,500

24
Conclusion

What choice would you recommend to our client?

Write out recommendation, risks, and next steps,

and then share with the group

25
Conclusion:
Theory to advance prep
1. Insights:
• Those derived from the case pulled in
• Synthesized (not just summarized)
2. Recommendation:
• Supported by strong rationale (including quantifiable impact)
3. Risks:
• Consider the requirements so fundamental to your recommendation
that if they were not true, your recommendation might change
• Mitigation included

26
Conclusion:
MCA recommendation
Problem: Our client wanted me to determine why revenues are lower than
expected and how to increase profits for their upscale Chinese restaurant
Recommendation: Raise prices in our client’s upscale restaurant
Impact: Expecting $7,000 in incremental profits per weekday
Reasons:
1. Offers greater incremental profit over renovating the restaurant of $4,500
2. There are no costs / opportunity costs associated with this price increase
3. Easier to implement as it does not require renovations
Risks & Mitigation:
– Price sensitivity assumptions are incorrect, therefore may lose more
customers than anticipated [Survey customers; review market research]
– Backlash from government officials on new higher prices could lead to
unfavourable political treatment [Pilot pricing; speak with government
officials]
Next steps: Brief management on pricing changes, work with management to
update prices in menus and other materials that it may be visible to customers 27
Throughout the case
• Treat as a conversation
• Talk interviewer through your thinking
• Have presence
• Form a connection with the interviewer
• Demonstrate client awareness by
following best practices, including:
• Ask for a moment to think before
working in silence
• Turn paper around to show
interviewer work / structure
• Keep your notes organized and
papers neat

28
 Case interview components
Investigation & Analysis

1. Problem 3. 6. Con-
2. Structure 4. Exhibits 5. Insight
stem Calculations clusion

• Grasp of the • MECE • Accuracy of • Engagement • Creativity • Brief overview

problem interpretation with Interviewer of problem
• Minimum of 3 • Structure
• Questions levels • Insights • Comfort with • Recomme-
• Summary of
asked to clarify provided numbers ndation,
• Level of detail findings
facts impact,
• Tie back to • Accuracy of
• Creativity reasons
• Case type structure / answers
identified • Storytelling to hypothesis • Risks &
• Key insights
interviewer mitigation
• Business model • Summary of • Tie back to
and industry • Customization findings • Next steps
structure /
• Revenue • Hypothesis- • Engage hypothesis
streams and driven interview
customer • Key insights
segments
• What’s changed
• Client goal

1-3 minutes 3 minutes 10-15 minutes 5-10 minutes 1-2 minutes

Throughout the case: speed, initiative, poise, tone & body language
29
Internal / Niche
Consulting
Reminder…
What is consulting?
Business advisory services provided to the leaders of corporations, governments
and non-profit organizations.

31
Internal/Niche Case Prep:
Major Differences

Case delivery style will vary, but structured

1 approach still key to success.

2 Cases are Industry Specific.

Evaluation is shallower on analytics and calculations,

3 but deeper into company and industry insights.

32
Internal/Niche Case Prep:
How to Prepare

Understand the company’s Research relevant

Practice!
interview style company & industry info

• Leverage second • Good resources • In groups of 2-3,

year students and include the select an industry or
the career center to company’s annual financial report and
best understand the (or quarterly) report discuss your insights
format of the interview. strategy section and that may be relevant
relevant industry to a firm or industry.
reports.
• Do firm specific case
• It’s not enough to prep and practice
just know the facts, bringing forward
but have an informed industry and
company insights
opinion on relevant
industry trends and through your cases.
current events. 33
Internal/Niche Case Prep:
Ask Yourself …
– Do I understand the strategy/value add of the company?
– What are the company’s key areas of focus for the next year?
– Do I understand how key industry trends/disruptors will impact the
company?
– Who are the company’s major competitors? How do these
competitors primarily threaten the company?
– Who are the company’s major clients/customers? Is this expected to
change over the next few years?

Demonstrating thoughtful research into the company

and their industry is how you will stand out
34
Wrap Up
Case Prep Roadmap
Preparation is a marathon – Pace yourself

Week starting
Activity 29-Oct 05-Nov 12-Nov 19-Nov 26-Nov 03-Dec 10-Dec 17-Dec 24-Dec 31-Dec 07-Jan
MCA Case Prep Bootcamp
Case Prep (1st years)
Friends 1-on-1 case sessions
CC facilitated support
Vocaprep (Optional)

Discover Build Refine

(Novice) (Proficient) (Expert)

Indicator Cases/Week
3
4
6
Internship Roadmap

Network Prepare Ace

Network

Research Reach out Connect

! Identify your target ! 1 person per firm ! Don’t try to be

firms maximum someone you’re not

! Have a Plan B ! Start with campus lead ! Own your story

! Understand what ! Try for organic ! Try to create a genuine

firm looks for connections connection

! Think of your ‘story’ ! Show professionalism ! Don’t try to gather

facts
Prepare

Practice Reflect Polish

! Everyday way of ! Focus on your ! Work on client

thinking weaknesses friendliness

! Quant is table stakes ! Relive the case ! Don’t be a robot

! Second level insight ! Add to your ‘database’ ! Work on presence

! Limit cases you ! Modify your approach ! Be conversational

provide
Ace

Calm Human Ideate