CASE INTERVIEW BOOTCAMP TULANE UNIVERSITY FEBRUARY 2020 PRESENTED - - PDF document
2/8/20 CASE INTERVIEW BOOTCAMP TULANE UNIVERSITY FEBRUARY 2020 PRESENTED BY JENNY RAE LE ROUX MANAGEMENT CONSULTED 1 PRE-TEST Size the market for avocados in Canada (2 min) Then, defend your answer to a partner (1 min each) MANAGEMENT
TULANE UNIVERSITY FEBRUARY 2020 PRESENTED BY JENNY RAE LE ROUX
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Size the market for avocados in Canada (2 min) Then, defend your answer to a partner (1 min each)
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Population / Households % Who Own/Buy Frequency
Weighted
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What is one thing you hope to take away from today?
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Market Sizing Case Interview Overview Advanced Case Walkthrough Case Structures Case Math and Key Equations Case Practice Plan
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www.managementconsulted.com MANAGEMENT CONSULTED
Free content On-site bootcamps Self-study training materials 1:1 editing/ training
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MANAGEMENT CONSULTED
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It’s not about the answer – it’s about the process.
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OFFER!
Case Interview Fit Interview Network
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Fit Interview Case Interview Fit Interview Case Interview
1st round 2nd round
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Can you do the tactical work of a consultant? Do you understand how a consultant works? Are you someone who would be fun to manage? MANAGEMENT CONSULTED
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Structure Problem-solving Communication
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Top 3 Big 4 Boutique
Scoring key 1 (Opening question) 1 Candidate does not recap the background 2 Candidate recaps the background with too much detail or lacks confidence 3 Candidate hits most of the key elements but provides them in an unstructured way; begins to ask detailed questions not relevant at this point in case 4 Candidate gives answer that hits key elements of background at a high level but does not demonstrate complete understanding of what company does 5 Candidate provides clear, concise, structured response and, if appropriate, asks 1-3 clarifying questions
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Interviewer Summary ___ 1 Opening Question (1-5) ___ 2 Initial Structure (1-5) ___ 3 Quantitative (1-5) ___ 4 Creative (1-5) ___ 5 Summary (1-5) ___ 6 Overall Structure (1-5): Candidate consistently presents ideas in logical lists and bullets, even during creative responses; manages the flow of the case with ease and does not get confused. ___ 7 Overall Problem Solving (1-5): Candidate maintains focus/awareness on hypothesis and drives to solutions; excellent at math (mental/calculations), quick to realize and correct mistakes, adept at tying data to overall conclusions. ___ 8 Overall Communication (1-5): Candidate provides concise, well-spoken responses to each question; demonstrates confidence and works through difficulty (but maintains positive attitude). You would enjoy working with and managing this candidate, and would trust them to be clear and complete. _______ OVERALL TOTAL _______ OVERALL AVERAGE
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You never get a second chance to make a first impression.
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Our client is the London Millennium Dome. The Dome is a large recreational and leisure experience facility in Greenwich in London. The facility consists basically
different theme, and each of which is sponsored by a different company. Sponsors have full creative control over their exhibits, and some zones are extremely popular, while others are less popular. The Dome is suffering from significant financial problems as well as a large amount of negative publicity. We have been appointed by the UK government to come up with a solution for how to turn this around. To make matters worse, the facility will be closed in 10 months unless we can resolve the issue. How would you devise a plan to turn around the London Millennium Dome?
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OKAY New data New objectives Metrics for success GREAT Anything you missed Confirm understanding Reduce problem scope
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Bucket A
Bucket B
Bucket C
Bucket D
1 2 4 3
Support your blob of ideas with some real numbers.
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Use all 4 structured steps Do all steps verbally Accuracy > speed Don’t pause (exception: McKinsey) MANAGEMENT CONSULTED
The London Dome generates money in a variety of ways, but, let’s assume for simplicity’s sake that the London Dome only generates revenue from ticket sales. Adult tickets: £24.30 Child tickets: £11.60 The venue can hold up to 22,000 visitors/day Last month, they had an average of 15,231 visitors/day The child to adult ratio is 50/50 The dome is open 7 days a week What were the revenues this past month?
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Proposed answer
Math theory
¡ Support answer with
numbers
¡ Ability to design models ¡ Mental math in meetings
and reviewing work Math steps
¡ Recap ¡ Structure ¡ Solve ¡ Insight
Guidelines
Daily Adults 30 days Children X Insights/next steps
Price £24 £12 Vol. 7,500 7,500 Total £180 K £90 K £270 K X 30 £8.1 M
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Dive deep into your plan with structured brainstorming.
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Use all 4 structured steps Do all steps verbally but take notes What else? Don’t pause (exception: McKinsey)
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What are some ways London Dome could increase its
revenues?
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Final recommendation
3 elements
case closing 2 types of case closings Why the case closing is so important
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You are preparing for an update meeting with the CEO of the London Dome, but you run into her in the cafeteria. She asks you what your recommendations are at this point. How would you respond?
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Start strong – it will make or break the case.
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What are characteristics of a good case structure? MANAGEMENT CONSULTED
What are characteristics of a good case structure? MANAGEMENT CONSULTED
Market Sizing Profitability Market Study Mergers & Acquisitions
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Price
negotiation
pricing
Volume
features
elasticity
Variable Cost
Labor
Fixed Cost
Labor/Salari es
? ? ? ?
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Your client is a large video content streaming provider in the U.S. The platform is under pressure to stop a decline in profitability, and they believe user experience is to blame. The managing director of content has 2 choices: either roll
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Market
Competitor
Customer
segment
Company
costs
investment costs (R&D)
Product/Se rvice
costs
? ? ? ? ?
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Our client is a major U.S. airline carrier. The client currently
and LATAM. The client has 3 major international locations to which it runs 6 flights per day. However, over the last year they have been losing share on those routes. What should they think about and why?
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Market (Target)
Company (Target)
Post- Acquisition Strategy
Risks/Bene fits
1/2 1/2 3 4
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Our client is a major U.S. grocery retailer with operations in 14 states and over 200 stores. The firm began as a mom and pop grocery shop over 50 years ago and has now become a supply chain master with expertise in complex
The client has the opportunity to buy a discount grocery chain with 20 U.S. stores. Some of its competitors are also interested in the purchase. What should they do, and why?
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Mix & match structures
non-MECE than being MECE
spoken) Clearly use metrics
competitors vs. how much market share do competitors have? Stay practical
them
Competitive Landscape, Operations, Customer Acquisition, Risks
Price Volume Variable Fixed Cost Market Competitors Customers Product/Service Company Post-Acquisition Strategy Synergies Risks/Benefits Marketing Product Mix Inorganic Growth Channels Revenue Cost MANAGEMENT CONSULTED
Our client is an indoor arcade center with games, entertainment, and birthday partners. The company has
and boasts over 200 locations. The client has historically had major market share in the birthday party market for ages 2-12. However, in the last 3 years, their market share has declined. They are interested in figuring out what’s happening.
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It’s all about the numbers, baby
Recap Structure Solve Insight MANAGEMENT CONSULTED
profitabilities
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In 2018, Tesla’s sales figures were as shown in Exhibit 1. As the company looks to expand market share, they are cutting back on promoting the Model X in favor of the Model 3. Assuming the price of each model remains the same, how will the production volume changes impact average price? Answer directionally.
# of units 2018 # of units 2019 Average price Model S 60,000 70,000 $85,000 Model X 80,000 90,000 $100,000 Model 3 40,000 60,000 $35,000
machinery, etc.)
amount)
resources (fixed and variable) it takes to produce a product or serve a customer
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In 2012, a lack of rain over corn/soybean producing regions of the U.S. drove up feed prices for cattle farmers. Beef prices have always been somewhat volatile (see Exhibit). What kind of cost is feed?
Amortization
expenses except interest/taxes from regular course of business
expenses (interest, taxes, one-time, etc.)
kinds of) costs from revenue (as %)
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Competitors
¡ Market share: Client revenue/Total market revenue ¡ Relative market share: Client revenue/market leader revenue
Customers
¡ Segment sizes: % of market in each segment (revenues) ¡ Segment growth rates: [Segment revenues now – Segment revenues
before]/ Segment revenues before]
¡ Price elasticity: Change in volume/-(Change in price) = Elasticity;
elasticity < 1 is inelastic and elasticity > 1 is elastic
Investment costs
¡ Payback period: Investment cost/Annual profits ¡ Breakeven point: (Price – variable cost) x Units – Operating fixed cost
– Investment fixed cost = 0
Our client is a diversified electric toothbrush manufacturer that produces a multi-purpose cleaning tool. For several decades, the client was the
company has seen a decline in revenue. Price: $50/toothbrush Current volume: 100M units/year Price elasticity of demand: 0.5 (20% reduction in price will raise demand 10% & vice versa) Should the client change price to reverse revenue decline? If so, how?
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A client is setting up a new sales office in San Francisco. The following are the expected economics of the office:
$1.5M Annual SG&A $400K Initial Hiring Costs $250K Annual Marketing and Variable Costs $2.2M Expected Revenue/Year starting in Year 2
Calculate the payback period.
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Synergies
¡ Cost synergies: Cost 1 + Cost 2 – Redundant costs ¡ Cannibalization: Revenue 1 + Revenue 2 – Redundant revenues ¡ Revenue synergies: Revenue 1 + Revenue 2 – Redundant revenues +
New Revenue Opportunities
Valuation methods
¡ Multiples: Revenue (early-phase) or Profit (mid/late-phase) ¡ DCF: Use conceptually; accounts for discount of cash flows over time;
usually straight-line in cases (divide by the discount rate)
Return calculations
¡ ROI: (Sale price – investment price)/Investment price ¡ ROS: (Sale price –investment costs)/Sale price
Numbers, numbers everywhere!
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A fruit vendor was selling two varie2es of mangoes at an organic health expo organized by the city. 145 were from Mexico and 259 from Singapore. How many total mangoes were sold at the stall?
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○ Add the hundreds place 100 + 200 = 300 ○ Add the tens place 40 + 50 = 90 ○ Add the units place 5 + 9 = 14 ○ 300 + 90 + 14 = 404
Answer: 404
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Two brothers work odd jobs for two weekends over the summer. What is the difference in the salaries between both weekends for Tom? What about for Tim? Tom: 1st weekend salary is £840, 2nd weekend salary is £550 Tim: 1st weekend salary is £1370, 2nd weekend is £690
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£840 – 550 Ans: £290 difference in Tom’s salary £1370 – 690 Ans: £680 difference in Tim’s salary
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Kevin plans a business trip to Milan. He rents a room in a hotel at a cost of €286 per day. If he stays in the hotel for 1 week, how much does he need to pay?
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286 * 7
○
Start by 200 * 7 = 1400
○
Add 80 * 7 = 560 (1960)
○
Add 6* 7 = 42 (2002)
Ans: €2002 for 7 days
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Kelly squats 7670 reps in 125 days of physical training. Find the average number of squats per day.
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7670 / 125
○ Multiply the divisor by 8 = 1000 ○ Use left to right multiplication and multiply the numerator and divisor by 8 ○ 7670*8 = 61,360/(125*8) ○ 61,360/1000
Answer: She averages 61 squats/day
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Last year, Insight Corp made $42M off of a customer base of 30,000 small businesses. What was the average value of a contract?
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$42M / 30K
○ Put them in the same units (i.e. 42000/30) ○ Cancel the 0s (4200/3) ○ Divide 42/3 (3 * 10 is 30, remainder of 12 is divisible by 4, so 14) ○ Add back 0s (1400)
Answer: The average contract is $1400
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In the past 6 months, our client has made 28% of their annual budgeted profits. The overall expected profit was $70M. What was their profit over the last 6 months?
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$70M * 28%
○ Look for the closest baseline (which is easier – 25% or 30%) ○ Start with the baseline ($70M * 30% = 21M) ○ Take the difference to the baseline (1% = 0.7 * 2 = 1.4M)
Answer: The profit earned so far is $19.6M
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Graph Math Chart Math Verbal Math
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Our client is a golf equipment and accessory manufacturer who is losing money. The business has 2 divisions: golf clubs and clothing. Calculate the profit of each division/year and identify current trends at the company.
Clubs, ₤M 2016 2017 2018 Revenue 50 60 75 Profit Margin (%) 30% 25% 20% Clothing, ₤M 2016 2017 2018 Revenue 20 30 60 Profit Margin (%) 5% 10% 15%
.
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Clubs, ₤M 2016 2017 2018 Revenue 50 60 75 Profit Margin (%) 30% 25% 20% Clothing, ₤M 2016 2017 2018 Revenue 20 30 60 Profit Margin (%) 5% 10% 15%
.
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Clubs, ₤M 2016 2017 2018 Revenue 50 60 75 Profit Margin (%) 30% 25% 20% Profit 15 15 15 Clothing, ₤M 2016 2017 2018 Revenue 20 30 60 Profit Margin (%) 5% 10% 15% Profit 1 3 9 Total, ₤M 2016 2017 2018 Profit 16 18 24 Profit Margin (%) 23% 20% 18% Margins for clubs are falling, but profits are constant. Overall, margins are declining because faster growing segment (Clothing) is lower margin.
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You’re welcome
Start with Market Sizing questions – 2 per day Diagnostic interview Do 10 cases 2X MC Offerings
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Example outline for 8 hours
Start with a diagnostic case to learn best practices Enables coach to learn strengths and 2-3 weaknesses to devise a plan
specific to student
Structure coaching – Multiple case starts in one session to practice
tailoring frameworks and implementing a hypothesis driven approach (individual “homework”)
Math coaching – Practice how to set up a variety of math problems in
an efficient, structured manner (individual “homework”)
Fit coaching – Practice telling your story! Combined coaching – Creative brainstorming, charts, etc. Practice multiple cases to refine problem solving and communication Target a variety of case types to give exposure to different content or
target specific cases that strengthen weaknesses Diagnostic session (1 hour) Targeted sessions (2-4 hours) Refine (3+ hours)
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