The Vault Guide to the Case Interview

234 Pages·2005·6.448 MB·English

by  Mark Asher, Eric Chung, Staff of Vault

Vault Guide to the Case Interview
is made possible through the
generous support
of the following sponsors:
The media’s watching Vault!
Here’s a sampling of our coverage.
“Unflinching, fly-on-the-wall reports... No one gets past company
propaganda to the nitty-gritty inside dope better than these
guys.”
— Knight-Ridder newspapers
“Best way to scope out potential employers...Vault.com has
sharp insight into corporate culture and hiring practices.”
— Yahoo! Internet Life
“Vault.com has become a de facto Internet outsourcer of the
corporate grapevine.”
— Fortune
“For those hoping to climb the ladder of success, [Vault.com’s]
insights are priceless.”
— Money.com
“Another killer app for the Internet.”
— New York Times
“If only the company profiles on the top sites would list the ‘real’
information... Sites such as Vault.com do this, featuring insights
and commentary from employees and industry analysts.”
— The Washington Post
“A rich repository of information about the world of work.”
— Houston Chronicle
VAULT GUIDE TO THE
CASE
INTERVIEW
MARK ASHER, ERIC CHUNG
AND THE STAFF OF VAULT
©2005VaultInc.
Copyright©2005byVaultInc. Allrightsreserved.
Allinformationinthisbookissubjecttochangewithoutnotice. Vaultmakesnoclaimsasto
theaccuracyandreliabilityoftheinformationcontainedwithinanddisclaimsallwarranties.
Nopartofthisbookmaybereproducedortransmittedinanyformorbyanymeans,
electronicormechanical,foranypurpose,withouttheexpresswrittenpermissionofVault
Inc.
Vault, the Vault logo, and “the most trusted name in career informationTM” are trademarks of
VaultInc.
Forinformationaboutpermissiontoreproduceselectionsfromthisbook,contactVaultInc.,
150W.22ndSt.,5thFloor,NewYork,NY10011,[phone].
LibraryofCongressCIPDataisavailable.
ISBN1-58131-305-5
PrintedintheUnitedStatesofAmerica
ACKNOWLEDGMENTS
Vault’s acknowledgments:We are extremely grateful to Vault’s entire staff for
all their help in the editorial, production and marketing processes. Vault also
would like to acknowledge the support of our investors, clients, employees,
family,andfriends.Thankyou!
Table of Contents
INTRODUCTION 1
WhytheCase .................................................1
TypesofCaseInterviews ........................................2
SkillsAssessedintheCaseInterview ..............................3
WhatKindofCaseWillIget? ...................................6
CASE STRATEGIES 7
YourObjective ................................................9
Don’t Fret . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Top10tipsforansweringbusinesscasequestionssuccessfully.........10
CommonProblemsandTroubleshooting ..........................14
ThinkingAbouttheCase .......................................15
TheCaseChecklist ...........................................16
SpecificTypesofBusinessCases ................................17
CASE FRAMEWORKS 23
BasicConceptsandFrameworks.................................26
BasicOverviewofFinancialStatements ...........................27
Advanced Concepts and Frameworks . . . . . . . . . . . . . . . . . .34
Netpresentvalue .............................................34
VisittheVaultConsultingCareerChannelatwww.vault.com/consulting— with
insiderfirmprofiles,messageboards,theVaultFinanceJobBoardandmore. ix
VaultGuidetotheCaseInterview
TableofContents
TheCapitalAssetPricingModel(CAPM) .........................35
Porter’s Five Forces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
PIE: The next generation of Porter’s Five Forces . . . . . . . . . . . . . . . . . . .40
SWOTAnalysis ..............................................42
TheSevenSFramework .......................................43
Productlifecyclecurve ........................................44
Strategytool/frameworkchart ...................................45
TheFourPs .................................................46
TheFourCs .................................................47
TheFiveCs .................................................47
Valuechainanalysis...........................................49
Corecompetencies ............................................50
Benchmarking and “best practices” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
The2x2matrix...............................................51
TheBCGmatrix .............................................52
M&Acases:Valuedriversframework.............................53
M&Acases:Targetandmarketassessment ........................54
M&Acases:Datagatheringandanalysis ..........................56
BEING THERE 59
What It’s Like Being in a Case Interview . . . . . . . . . . . . . . . . . . . . . . . . . .61
TheCase ...................................................62
x ©2005VaultInc.
VaultGuidetotheCaseInterview
TableofContents
REAL LIFE INTERVIEWS 67
BostonConsultingGroup ......................................69
McKinsey&Company ........................................70
MonitorGroup ...............................................71
A.T.Kearney ................................................71
L.E.K.Consulting ............................................72
BUSINESS CASES 73
CaseFormats ................................................75
PracticeQuestions ............................................76
ThinkingStrategically .........................................89
UsingtheFourPs ............................................92
SailingtheFiveCs............................................94
AWrittenCase ..............................................100
TheFinancialCaseInterview ..................................102
AdditionalPracticeQuestions ..................................105
AndTryTheseforMorePractice ...............................109
INTERACTIVE CASES 111
AFitInterviewinDisguise ....................................113
HowtoUsetheInteractiveCases ...............................113
HowtoRunanInteractiveCaseExercise .........................114
TipsfortheCase ............................................116
VisittheVaultConsultingCareerChannelatwww.vault.com/consulting— with
insiderfirmprofiles,messageboards,theVaultFinanceJobBoardandmore. xi
VaultGuidetotheCaseInterview
TableofContents
SampleInteractiveCases ......................................117
PRESENTATION CASES 137
GeneralTipsandTricksforAllPresentationCases .................141
Presentation Case Type 1 – Research Case . . . . . . . . . . . . . . . . . . . . . . . .142
ResearchCaseExample:PureMeats ............................144
Presentation Case Type 2 – Complete the Presentation . . . . . . . . . . . . . .164
CompletethePresentationExample:WellsIncorporated .............164
Presentation Case Type 3 – Teach Me Something . . . . . . . . . . . . . . . . . .173
DifficultSituationCases ......................................175
ConsultingInterviewsbyPhone ................................190
GUESSTIMATES 193
“Guesstimate” Case Interviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .195
AcingGuesstimates ..........................................196
PracticeGuesstimateQuestions.................................199
MoreGuesstimates... .........................................204
AndTryTheseforMorePractice ...............................207
BRAINTEASERS 209
Brainteasers ................................................211
Remember... ................................................211
PracticeBrainteasers... ........................................212
xii ©2005VaultInc.
Introduction
Why the Case?
Yourimpressiveresumemaygetyouaninterviewwithaconsultingfirm,but
it won’t get you the job. Consultants know that a resume, at its very best, is
onlyatwo-dimensionalrepresentationofamulti-faceted,dynamicperson.
And because consulting firms depend on employing those multi-faceted,
dynamic people, the firms rely heavily on the case interview to screen
candidates. The interview process is especially pertinent in the consulting
industry, since consulting professionals spend the lion’s share of their
business day interacting with clients and colleagues and must themselves
constantlyinterviewclientemployeesandexecutives.
Consultantsmusthaveaselectsetofpersonalityandleadershiptraitsinorder
to be successful. The consultant’s work environment is extremely turbulent.
Therearenonstopco-workerchanges,hostileclientenvironments,countless
politicalmachinations,andnear-perpetualtravel. Thesefactorsmandatethat
an individual be cool under pressure, be influential without being
condescending, be highly analytical, have the ability to understand the
smallestaspectsofaproblem(whilesimultaneouslyseeingthebigpicture),
and have the ability to maintain a balance between the personal and
professional.
Consultantsareoftenstaffedinsmallgroupsinfar-flungareas. Asaresult,
theindividualmust beableto function, andfunctionwell, without many of
thetraditionalworkplacestandards:apermanentworkingspace,theabilityto
return home each night, easily accessed services such as administrative
assistance, faxing, and photocopying, and the camaraderie that develops
amongco-workersassignedtothesamebusinessunit.
Allthesefactorsnecessitateauniqueinterviewstructurefocusedonassessing
a candidate’s ability to manage these particular circumstances with
professionalismandexcellence. Thecaseinterviewhasevolvedasamethod
forevaluatingthesecharacteristics.
VisittheVaultConsultingCareerChannelatwww.vault.com/consulting— with
insiderfirmprofiles,messageboards,theVaultConsultingJobBoardandmore. 1