case interview training
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Case Interview Traininghttp://www.caseinterviewhq.com/
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Agenda
Introduction
Interview Basics: Types General Approach Frameworks
Case Interviews: Brainteasers Guesstimates/Market Sizing Business Situation
Practice Rounds: Market Sizing Business Situation
Concluding Remarks
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Introduction
Today’s Goal
My Story
Your story
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Agenda Introduction
Interview Basics:Interview Basics: TypesTypes General ApproachGeneral Approach FrameworksFrameworks
Case Interviews: Brainteasers Guesstimates/Market Sizing Business Situation
Practice Rounds: Market Sizing Business Situation
Concluding Remarks
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Interview Basics: Types (Psychological) Assesments
Experience Interviews
McKinsey PST
Case Interviews (duh) Guesstimates + Business Situation Interviewee/Interviewer led Group Interviews Stress Interviews
No preperation is perfect.
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Interview Basics: ApproachHow to be a consultant?
80/20 (“Boiling the ocean”) Precise vs. Good Enough Data Driven “Client Friendliness” and the brain surgeon:
hypothesis. Think out loud.
How the Interviewer thinks Right Process vs Right Answer Logical, data-driven analysis Synthesis & Presentation
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Interview Basics: Approach Case Interview Steps:
I. Open
II. Analyze
III. Close
I. Open Pause (That’s interesting...) Verify: what do I know, what is the question? Explore relevant background
Value chain Distribution Why... ?
Structure
Analysis (II) and Closing (III) depend on question at hand.
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Agenda Introduction
Interview Basics: Types General Approach Frameworks
Case Interviews:Case Interviews: BrainteasersBrainteasers Guesstimates/Market SizingGuesstimates/Market Sizing Business SituationBusiness Situation
Practice Rounds: Market Sizing Business Situation
Concluding Remarks
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Case Interview Questions
Three major branches: Brainteasers Guesstimates/Market Sizing Business situation
Basics (80/20, client friendliness) apply to all.
Same holds true to approach:
1. Open
II. Analyze
III. Close
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Case Interviews: Brainteasers
Why are manhole covers round?
The three bags of gold coins.
Two jugs: 4L
“Solving” Brainteasers.
No real structuring possible, more a ‘stress’ test or tease.
Hardly used, hard to practice.
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Case Interviews: GuesstimatesOften first-round questions or part of business
situation cases.
Examples: How many Ping-Pong balls fit into a 747? How many golfballs are sold each year in the
Netherlands? How many cartires are replaced each year? XYZ Company wants to enter market X, how large is
it? How much does the Vatican earn each year?
How to solve?
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Solving Guesstimates I. Open
Pause (That’s interesting...) Verify: what do I know, what is the question? Explore relevant background Structure
II. Analyze 1. Population vs Household vs Individual 2. Go through structure 3. Make easy assumptions 4. Don’t f#ck up calculations
III. Closing 1. Double check, did I miss anything? Sanity check on
answer. 2. Answer question
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On assumptionsAssume if possible, don’t calculate everything.
Use easy assumptions: 320 million inhabitants in USA 100 million households Age distribution is equal) Male/Female 50/50 Maximum age of 80 Etc.
Support your assumptions, think out loud.
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Supporting assumptions
Household “There are 300 million inhabitants, an avarage of 3
people per household, thus i assume there are 100 million households in the Netherlands. Every household has 1 garden hose...”
Population “I live in a town of 30,000 inhabitants, with 6 gas
stations. I therefore assume one gas station serves an avarage of 5,000 inhabitants.”
Individual “I buy about 6 boxershorts a year, but not every guy
wears boxers, such as kids and elderly people. Let’s assume that...”
WTF? “Let’s assume that a plane consists of the main hull,
two wings, the cockpit and a tail section. I assume the hull is filled with 80 rows of chairs, and every row is 1 meter wide. This comes down to a lenght of...”
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Guesstimates: Closing Remarks
It’s not about the answer, it’s how you got there.
Adhere to your structure, don’t forget anything.
Get your numbers right.
Only use information from the case.
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Guesstimates: hints & tipsPractice
The interview itself is stressful enough, you want the approach to become second nature.
Practice math Download Kopfrechnen Trainieren
Read: Cracking the Case by CaseInterviewHQ.com Case in Point by Marc Cosentino
Don’t waste your money on WetFeet, Vault, etc.
Practice, practice, practice!
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Case Interviews: Business Situation The main interviewing case, covers wide range of
different questions: Market Entry Profitability Questions M&A
We follow the same procedure:
I. Open Pause (That’s interesting...) Verify: what do I know, what is the question? Explore relevant background Structure (!)
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Opening a Case (cont.): StructuringStructure is very important
Right Process vs Right Answer
Four steps:
1. Identify
2. Match Framework
3. Describe Key Components
4. Draw Framework
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II. AnalyzeAnalyzing = breaking down
Always break everything down, segment until you find something
Six steps:1. State Hypothesis2. Pick Branch of Framework3. Identify Key Issues4. Ask Questions 5. Dig deeper or go back up6. Refine Hypothesis
When given data: Ask for numerical data Development through time Competitor situation
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III. ClosingSynthesis: combination of elements to form whole
Four Steps:1. Take a break to gather your thoughts.2. Figure out what is important.3. Provide conclusion, preferably with action.4. Support with relevant data.
Good closing: Company XYZ should close down plant A because of
data1, data2 and data3. Potential risks are A and B.
Bad closing: I figured out data1, data2, data3, data4 and data5, so
blabla.
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Business Situation Final Remarks Data
Look for trends. Segment. Analyze Competition.
Analysis Hypothesis driven: “I think X, so I need A, B & C to prove.” Keep digging until you find something interesting Or until you can “cross out” branch
Closing First conclusion, then supporting data.
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Business Situation: Hints and TipsPractice:
Nothing beats practicing with a partner. Cases from casebooks and Cosentino Cases in ‘Cracking the Case’:
Follow line of thought Make them on your own first, the look at answer Compare differences: both can be right
Practice does make (almost) perfect.
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FrameworksGoal: to apply frameworks and be able to ‘play’
with them.
Examples of frameworks: Profit = Revenue - Cost Porters’ 5 Forces Three C’s Four P’s Business Situation Framework (Victor Cheng) Ivy League Framework (Marc Cosentino)
Never state out loud that you are going to use “The 5 Forces” or the “Four P’s”.
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Profitability Framework
Profit
Revenue Cost
Price x QuantityFixed Cost Variable Cost:
Cost x Quantity
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Business Case Framework
Profit Framework
Internal
External
Market Conditions
Competitors
Customers CompanyProduct
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Agenda Introduction
Interview Basics: Types General Approach Frameworks
Case Interviews: Brainteasers Guesstimates/Market Sizing Business Situation
Practice Rounds:Practice Rounds: Market SizingMarket Sizing Business SituationBusiness Situation
Concluding Remarks
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Coffee break
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Example Case: Garden HosesOur client is thinking about entering the garden
hose market. He wants to know whether he can start up a business manufacturing garden hoses and break-even in a year.
Before we start, how large is the garden hose market in the USA?
What else should the client consider?
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Example Case: MediaCoMediaCo prints a wide range of magazines and
a national newspaper in the UK, but has suffered financially. The CEO is asking us to increase profit to € 3m a year.
What do you suggest?
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Example Case: MediaCo
Profit
Revenue Cost
Price x # sold
Fixed Cost Variable Cost
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Example Case: MediaCoDiving deaper into the newspaper division
Customers Products Company Competitors
Who are the customers?
What does each segment want?
What is our product? What makes it special? (or not)
What are our core capabilities?
Who is our competition? What is their market share? Developments?
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Example case: MediaCo Let’s suppose MediaCo wants to sell it’s newspaper
division, what would be arguments pro and against?
Potential buyers
Public Image
Lay-offs
Anti-trust
Creates money
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Concluding Remarks
Website www.caseinterviewhq.com
Free case interview info
Articles on the PST, Math, Minto, etc.
“Cracking the case” Book covering whole interview process