Transcript The Management Consulting Association

The Management Consulting
Association presents...
Intro to Case Interview
Frameworks
Today!! Tuesday
D301 from 12-1pm
The Management
Consulting Association
Intro to Case Interview
Frameworks
What Case Interviewers are looking
for
Analytical ability
Poise
Creativity
Communication skills
Logical thought process
Business acumen
NOT NECESSARILY LOOKING FOR A SOLUTION
What are frameworks?
A structured approach to break down a
case problem
A way to think about the facets of a
business decision
A tool to develop case interview
proficiency
How to use frameworks?
During your early practice interviews, use
frameworks to develop the discipline for
structuring a interview answer
Later, depart from the frameworks (avoid
mentioning them) to develop a comfort
level with structuring a framework on the
fly
Bottom line: You need to practice to do
this right
How not to use frameworks?
Saying, “Well, I’ll use the Porter’s 5 forces
to break this down...”
Worrying about finding the right
framework for the case - in every case,
several would work fine
Becoming panicked if you can’t remember
a framework - remember, structure is
the most important thing!
Structure Your Response - The golden
rule
 Listen to question and ask any clarifying questions. Take notes.
 Tell interviewer the areas you plan to investigate in 2-3 sentences
 Proceed down line of inquiry in first area you think shows the most
promise - “First, I would like to get a better understand of their
customer base..”
 Proceed to next area if deterred in questioning and/or you’ve
exhausted a subject. Telegraph your moves - “Next, I would like to
assess their competitive environment…”
 Pull finding together at end of interview and state recommendations
(“Initial findings suggest… ; I recommend we do the following….”)
Pizarro Case Question Example
 Question: How did the Spanish Conquistador Pizarro, with only 180
men, manage to defeat the Incan Empire which numbered in the
thousands…
 Framework: “Like business, success in a military campaign is
dependent on many factors including training, resources, and
leadership. I would want to explore the following..
 Compare the Pizarro’s leadership with the of the Incan ruler
 Analyze the training of Pizzaro’s forces
 Determine if Pizarro’s forces had any technological advantage over the
Incas
 Let’s start with Leadership. “Who was the Inca ruler and how
would you characterize his leadership...”
Popular Frameworks
4 P’s of Marketing
Porter’s 5 Forces
Internal and External Factors
3 C’s - Company, Competition, Customer
Revenues vs Costs
Revenues vs. Costs
Useful for determining why a company is losing profitability
Revenues
have they changed, how?
Pricing pressure?, recession?, competition?
Costs
Fixed Costs - new investments, low capacity?
Variable Costs - raw materials costs (supplier
power), labor costs
4 P’s of Marketing
Useful for determining in company should enter a new
market or product category. Also, may help identify
cause of sales slowdown
Product
Price
Promotion
Placement
Porter’s 5 Forces
Useful for determining whether a company will be
competitive and profitable in the long run
Supplier Power
Buyer Power
Entry Barriers
Internal Rivalry
Substitutes
Internal Vs External
Useful for nearly all business problems
External Factors
Market - trends, segments, substitutes
Customers - demand, price sensitivity, loyalty
Competitors - how many, share, strengths
Internal Factors
Operations - how cost competitive and inefficient
Finance - are resources sufficient, profitability
Product - competitive advantage, differentiated
The 3 C’s
Useful for nearly all business problems
Company - marketing, operations,
strategy
Competition - industry structure (Porter’s
5), competitor positioning (low cost, high
quality)
Customer - segments, size, growth, price
elasticity
Closing
Learn the frameworks so they become
second nature
Practice and more practice to become
comfortable with the facets of a business
problem
Develop capacity to structure problem in
an appropriate manner to reach a solution