Toolbox for

Case Interviews

1
Ace the case

Contents Authors
Page number

3 What is a case interview? Claudia H. Veik

Oliver Christensen
7 Interview and case types
Sofie K. Pedersen
11 Mastering the case interview – skills needed
Emma Ørnsø Fischer
22 Other tips & tricks Sarah Bech Andersen
Frederik Verstergaard Laustsen
27 The case interview process: Five steps to remember
Ellen Lybecker
36 Market-sizing examples
Joachim W. Abildgaard

41 External sources to case interview practice material Gustav Jørck

David Monrad
43 Final to-do list: ace the case

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What is a case interview?

3
What is a case interview?

What is the purpose? Interviewer-led vs. candidate-led interviews

• You got the interview! That means the firm is already impressed with your CV and grades and see • In the world of case interviews, there are typically two forms of interview types. The interviewer-
definite qualities in you. The main purpose of the case interview is for the firm to get a chance to led and the candidate-led interview.
see those qualities in action.
• In the interviewer-led interview, the interviewer will have a set of specific questions that you will
• The purpose of the case interview is to put you in a simulation of a client-facing situation, where need to address regardless of what your initial structure is. You can treat each question like a mini
the client relies on you to guide them through how you will help them solve the problem they are case on its own. The key to success in this format, lies in you effectively and elegantly nailing all
currently facing. Essentially the case interview is a simulation of the work that the consultants do single questions the interviewer throws at you.
on a day-to-day basis.
• In the candidate-led interview, you will be in charge of developing the structure and leading your
• Indicated by the many ways in which a case question can be asked (issue or opportunity) the interviewer trough the structure you have created. Expect the interviewer to be a reactive actor, in
purpose of the case interview is to have the interviewee face ambiguity and see how they which the interviewer is typically the more passive player in the co-solving and it’s your job to
overcome it. include the interviewer so that the case is solved in collaboration. This can be accomplished by
asking the interviewer whether your proposed starting point seems reasonable. The interviewer will
• With that said, the purpose is not to test whether you arrive at the right or wrong answer, but act like the client and will provide you with data and information. It is, therefore, important to
rather how you arrive at your answer. That means that most times there will be no “right” answer, notice that the interviewer can ask questions in relation to how the distributed material relates to
but generally there is a path leading to the desired conclusion. The interviewer is likely equipped the overall case or other material previously provided.
with a guide or they may have their own idea about what the right answer is. But any answer that
you can get to and convince them of, using bulletproof logic, is essentially an acceptable answer. • The openings of whichever type of interview will be exactly the same. You will be given the
background information and it will be your responsibility to recap, walk through clarifying questions,
• Not only do they test whether the candidate can logically reason their way to an answer, they also and prepare to present your game plan. It is, however, important to notice that the recap should
test whether the candidate does it in an easily-understandable, client-friendly, and structured not be directly stated word-for-word, but rather focus on the key elements. Furthermore, it is
manner. So essentially, the case interview is there to test your competence, soft skills, and important that the wording does not come across as robotic.
stability.
• While the interviewer will act like a client in the candidate-led interview, the other holds true for
interviewer-led interview. In this case, the interviewer will act like a manager that already knows
which direction they want things to move and they are going to keep things going that way.

• The bottom line is that the skill set being tested is very similar. But it is good to be aware of the
differences and which consultancies use one or the other form.

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What do they look for?

What do they look for?

1 Competence
• Business acumen
• Logical thinking
• Speed of calculations
Qualitative • Structured thinking Quantitative
• Simple vs. complex ways of calculating?
Competence • Simplification of complex concepts Competence
• Presenting their calculations in a simple way?
• Creative/original thinking
• Pedagogical skills

2 Stability

IMPORTANCE
• Is this person easily stressed by tough questions or do they remain calm? • Did this person use a logical and therefore replicable process?
• Could I rely on that person getting things done at the deadline? • Did this person strike luck, or would they be able to do it again?
Stability in Stability in
• Do this person remember the time-constraint of the case and thus, focus on the • Did this person sanity check every step of their analysis?
quality of work Professionalism
core problem/opportunity • Did this person comprehend the situation, i.e. ask sufficient and good
• Could I rely on that person’s work without checking everything in a project? questions?

3 Soft skills
• Does this person ask personalized questions?
• Would you spend time with this person?
• Does this person stand out positively?
• Is this person presentable in their behavior?
Memorability (Character-traits, humor, creativity, questions to the interviewer etc.) Sociability
• Does this person seem like they enjoy the problem/process/interview or are
• Does this person fit with the company?
they stressed?
• Would I want to place this person in a client meeting?

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Don’t confuse a case competition… …with a case interview

Case competition Case interview

Team-based competition with the purpose to develop the best solution to A job interview where you single-handedly will be presented with a
a business case study within an allocated time frame. Teams deliver the situation or challenge faced by a fictitious company. You will analyse and
presentation in front of judges and go head to head against each other. solve the case, typically with no preparation time, through a discussion
with the interviewer.

Standard format Standard format

• Teams are divided into three to five participant • Typically a one-on-one interview which is led through discussion
• Cases are typically business or education-related case studies • Cases typically fall into two categories (1) estimation or market-sizing
• Time frame is 24 hours cases and (2) business cases
• The time frame is ~30-60 minutes

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Interview and case types

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1. Market-sizing cases

Examples of estimation questions could be:

• “How many contact lenses are sold in Australia each year?
• “What is the value of the Nordic diaper market?”
• “How many gas stations can be found in the USA?”

In most estimation cases, there is not one correct answer, yet the purpose is for you to
demonstrate how you logically work through a mathematical problem, make assumptions, and
interpret mathematical results. As an example, for the Australian contact lenses question, you
In estimation or market- might not know the population of Australia to start with – it is about 25.7 million. However, even
sizing cases, you will be if your estimate is 10 million or 40 million, your logic in estimating the correct answer can still be
sound. Most common approaches to these cases are shown below.
asked to estimate a
specific number.
4-Step Approach

1 2 3 4
Clarify Overview Calculate Sanity check
Examples are presented on page 37-40 Ask clarifying questions to Map out your calculations Use the issue tree to Use your common sense
understand what the in a structured manner, calculate and keep track to question your result –
interviewers actually asks e.g. by using an issue tree of the numbers does it make sense?

Tips
Communicate your approach to the interviewer, so he or she understands the model and can be
certain that you on the right track. Study and memorize the population of large countries often
used for estimation cases e.g. USA, UK, Germany, Australia
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2. Business cases

Examples of business cases could be:

• How to best enter the Chinese luggage market
• How to make a company’s supply chain more effective
• How to increase a company’s profitability

In the case interview, your job is to review the presented situation, and then participate in a
discussion with the interviewer and determine a persuasive recommendation that considers the
trade-offs of each possible action or choice. The interviewer could provide you with relevant data
You will be presented with upon request.
a challenge a company is
Your success will not depend on identifying the correct answer. The purpose is to understand the
facing and asked to solve depth of your business acumen, how you structure and prioritise issues and how you handle
the situation different types of information.

Most common types of business cases:

A Profit optimisation D Market entry G Cost optimisation

B Revenue growth E Competitive response H Supply chain optimisation

C Pricing strategies F Merger and acquisitions I Production capacity

Tips
To solve the case, you will find it useful to use a framework which can be found on page 28 – 31.
Keep in mind not to force-fit a case in a framework, just use it as a source of inspiration.
Strategic Operational 9
3. Other types of interviews and tests

You may encounter other types of interviews and tests depending on the interviewed
position. For consulting interviews you should expect a quantitative test and an experience
interview(s)
Quantitative test Experience interview
The quantitative test is normally part of the recruitment process and is The experience interview gives the interviewer a chance to learn
most often completed before the case interview. The test format varies. about your accomplishments, understand your motivations and
passions, and hear why you are seeking a career in consulting. The
Reasons for being tested interviewers focus especially on originality in these stories.
In consulting, most client recommendations are based on quantitative
evidence, why being comfortable with numerical estimations and Typically, they often only really ask 3 questions: (1) Why consulting
arithmetics is a cornerstone for consultants. and the company? (2) Hobbies/interests (3) Experience that relates
to problem solving, achieving, personal impact and leadership, e.g.
Expect to be tested on tell me about a time where you lead a team through a crisis
• Your ability to make computations accurately and efficiently without
a calculator Always use the STAR principle: Situation, Task, Action, Result – go
• Your ability to develop and communicate a numerical model trough any story using this framework
• Your ability to interpret quantitative measures and data
• Logical reasoning This part of the interview takes between 5 to 20 minutes. So be
prepared for a 5-minute pitch, but at the same time, be prepared
... don’t worry, numerical skills are easy to improve with practice. Set for a 20-minute discussion.
aside some time to for practicing numerical accuracy and speed by
repeating basic arithmetic operations. Prepare 4-5 stories that highlight your problem solving, achieving,
personal impact and leadership abilities.
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Mastering the case interview – skills needed

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Mastering the case interview – Three key components needed

Functional knowledge Industry-specific knowledge Case interview skills

• When you are being interviewed it is • Having knowledge of specific industries is • Structure – a good structure is an important
expected that you have some basic business not a must. You are not expected to be an part of the case interview as it shows the
knowledge in the areas of management, expert on any industry beforehand. If you underlying base of your whole approach and
finance, marketing, supply chain, marketing, do not have the specific knowledge, simply argumentation. Often it is a good idea is to
make an issue tree as the overall foundation
etc. ask in the beginning of the interview to get for your structure and make sure it is MECE
the necessary knowledge to solve the case (mutually exclusive, collectively exhaustive)
• You are not expected to be an expert in any
specific business area. The important thing • Necessary knowledge will vary from case to • Case math – As a consultant, a part of your
is to know the basics of business, to show case. Yet you will often be asking questions job is to interpret data. It is therefore
that you have a logical mindset and ask the on topics such as the product which is to be important that you know how to do basic
interviewer about the things you do not sold, the value chain, industry trends, math such as (%, compounding, +-x, basic
know competitive environment, etc. DCF) to perform simple calculations

• It is adequate to have a basic functional • The best way to learn about various • General models – Profit, market entry etc.
knowledge. The key is being able to industries is simply by practicing case
understand the main components and interviews or read things such as Harvard • Soft skills – Soft skills are important to a
breakdown of a business decision Business Cases. You should also be up to consultant as you will be in contact with
date on various trends by following the partners, CFO’s, clients, colleagues etc. Soft
• You will usually be asked about topics such news. skills include general communication,
as profit & loss, market entry, mergers & approachability, leadership, problem solving
skills, time management, work ethic, conflict
acquisitions, business expansion and • You only need in-depth knowledge about resolution, teamwork etc.
turnaround an industry if your profile (CV) signals it.
E.g. if you’ve studied shipping or medicine.

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Case interview skills Structure

In order to solve a case in a case interview it is essential that you develop a

comprehensive structure to guide you throughout the interview.

Always structure you case properly before you actually solve it –

Both in your mind and on paper

It is crucial to break
down the problem in
a well-organized and
structured way

A good structure is paramount and will make the case solving much more
efficient. Moreover, will it tell you where to look for the solution to the
problem.
The focus is how to get to the solution and help the interviewer understand
your logic, rather than on reaching the solution itself.

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Case interview skills - Structure

Tips
1. Make sure you understand the case fully and get all the • Take a moment to think about the case and the
details by asking the interviewer defined problem before structuring your framework
and analysis.

2. Draw a structured framework on a piece of paper and • Deal with the different steps of your analysis one-by-
adapt it to the specifics of the case one to maintain a logical flow. This helps the
interviewer understand and shows that you are able
to communicate in a logical manner.
3. Search for desired a framework that fits the case
• Take your time - if you need time to think, ask for it.
It is better to step back and think of an awesome
4. Use your framework to answer the case questions from answer rather than trying to think out loud and come
the interviewer in a structured manner. up with nothing.

• Don't be afraid if your framework no longer seems to

5. Synthesize all relevant conclusions into a structured fit. Sometimes you find important information in a
recommendation including the actual recommendation, case that changes the scene. Go with the flow and, if
reasons, risks and potential next steps necessary, show the interviewer a new structure.

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General models

This section introduces eight general models that can be used as possible frameworks to address the case problem. The specifics of
the case determines which framework is most suitable. Always only address things relevant to the case at hand and stick to the point.

1 2 3 4
Profitability Market BCG Matrix Porters Five
Analysis Expansion Forces

5 6 7 8
Core Value Chain 3 C’s 4 P’s
Competencies

Tip: Do not always rely on standard frameworks as the ones mentioned above. The eight frameworks here should only serve as a
source of inspiration. Always include case specific things and tailor your framework to the exact case.

*Alternative frameworks may also be relevant to study such as for example the internal/external framework.
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(1) Profitability Analysis and (2) Market Expansion matrix

Profitability analysis Market expansion matrix

This model should be used when it is a question about: This model should be used when solving a market entry case based on
• Profits how to enter:
• Operations • A market
• New business opportunities • A specific industry

Units sold
Product
x
Revenues Current New
Price pr. unit New Market penetration Product expansion
Profit - Market
Fixed costs Current Market development Diversification
Costs
+

Variable costs

Tips Tips
Profitability cases often start with a problem statement like; ‘Company Market entry cases often start with a problem statement like;
X has experienced a profits decline over the past years’ or ‘Despite an ‘Company X is manufacturing and selling medical supplies. They are
increase in Company Y’s sales, profits are declining’. Make sure to now considering entering the pharmaceutical industry - should they do
know the major source of the problem before getting into solutions, that?’ So this matrix is relevant when considering growth strategies.
for instance, is this a firm-specific problem or a trend in the industry? Remember to still present your framework as an issue-tree.

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(3) BCG Matrix and (4) Porters Five Forces

BCG matrix Porters Five Forces

This model should be used when analysing product portfolios by This model should be used when analysing an industry and to
categorising them into four categories based on: understand how companies fit into the overall competitive landscape.
• Market share
• Growth rate

Suppliers

High Star Question mark

Growth Rate Industry Entry
Substitutes
Low Cash Cow Dog Rivalry Barriers

High Low
Relative Market
Share (RMS) Buyers

Tips Tips
The BCG Matrix helps gain an overview of the product portfolio of a Identify where the forces increase in order to understand how intense,
given company. Apply it to understand how the client's business runs attractive, and profitable an industry can be. Porters Five Forces is
and which categories need more attention – for example if a business mostly used when solving firm strategy questions and can be
mainly comprises of Cash Cows, the company could investigate how to applicable to new business opportunities.
move more products from Question Mark to Star to stay relevant.

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(5) Core Competencies and (6) Value Chain Analysis

Core Competencies Value Chain Analysis

This model should be used when identifying: This model should be used to:
• Where the company is performing best • Identify components of costs
• What makes the company unique • Identify components of profits
• Relate activities and core competencies

Situation Action
Firm Infrastructure

Support activities
Does the company already have a Identify how to develop and improve
core competency? each competency. Human Resource Management

If the company does not have any Identify which core competency it Technology Development
core competencies, has it identified makes sense to invest in and
potential ones? develop. Procurement

Has the company not identified any Go back and look at the company’s Inbound Outbound Marketing
Operations Service
existing or potential core Value Chain in order to determine Logistics Logistics & Sales
competencies? where they do something well.
Primary activities
Tips Tips
When identifying the core competencies of the case company consider The Value Chain is very useful when it comes to breaking down a firm’s
using an inside-out approach. In the model, a long-term competitive activities and processes in order to identify potential barriers or issues
advantage is achieved by having the ability to build a core competency which can affect other activities in the companies, as they are all
at a lower-cost and faster than competitors. linked.

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(7) 3 C’s and (8) 4 P’s

3 C’s 4 P’s
This model should be used when business strategy or new market This model should be used when solving a marketing case or new
opportunity questions are asked. It consists of three elements: product development questions.

Product Promotion
1. Must fit within positioning decision 1. The Buying Process
and market segmentation (e.g. high end, low 2. 5 categories of promotional efforts:
end; consumer, industry) A. Advertising: medium, reach (share of target market
2. Differentiated good vs. commodity reached) and frequency (number of times reached)
3. Features and capabilities B. Personal Selling: when direct contact with buyer is
4. Reliability, quality, brand name, reputation needed
5. Packaging, size C. Sales Promotion: Incentives to consumer, sales force
6. Service, warranties and channel members
7. Future strategy for the product D. Public Relations and Publicity
E. Direct sales

Placement (Distribution) Price

1. Channel (decision based on product 1. Considers both retail price and discounts.
specifics, level of control desired and 2. What strategy? MC=MR? Skim (high price, make
margins desired) profits now)? Penetrate (low price, gain market
2. Coverage - tradeoff between coverage share)?
levels and costs 3. Seek volume or profits?
3. Inventory - levels, turnover, carrying costs 4. Perceived value, cost-plus-margin pricing?
4. Transportation - alternatives, efficiencies, 5. How does price relate to the market, size, product
costs life cycle, and competition?
6. Economic incentives to channel (commissions,
margin)
7. Establishes barriers to entry

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Case Math

In a case interview you will not have access to a calculator or Excel

spreadsheet. When faced with a mathematical calculation you will need to
rely on your head, pen and paper.

Calculations will most definitely be part of the case interview in one way or
the other. Therefore it will be very helpful to practice basic math such as:

Addition – Subtraction - Multiplication - Division - Percentage Calculations

Logical thinking will also be very useful when setting up mathematical

problems in a structure that makes it easy for you to solve.

Practice does not make perfect.

Only perfect practice makes perfect!

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"Back of the envelope"-Calculations

"Back of the envelope"-calculations are the most typical sort of mathematical problems
you will face in a case interview. They are rough estimations, typically of a business related
issue such as market size, market share or profit margins.

It is more than just a guess - but less than an accurate calculation given the limited time
and resources you will have available. Some interviewers ask you to come up with all
numbers and make your own assumptions, whereas other interviewers provide you with
numbers specific to the case.

When you are asked to come up with your own assumptions, it is a good idea to choose
numbers that are easier to calculate such as 2, 5 and 10. A few examples of "Back of the
envelope"-calculations are provided on the next page.

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"Back of the envelope" - Practice problems

1 Company X has just spent 40 million DKK developing a new, improved

washing machine. If it costs 1,500 DKK to make each washing machine , 6 If a piano gets tuned on average once every five years, a piano tuner
can tune one piano every four hours (including travel time) and a piano
how many washing machines will you need to sell at 2,000 DKK in order tuner works 40 hour weeks with two weeks of vacation per year, how
to recover the development costs? many piano tuners does Copenhagen need?

2 If there are 600,000 people in Copenhagen and the average household

has 1.5 people and 10% of households own a piano, how many pianos 7 If there are 30 million people in Canada, the average person lives to be
66.67 and the country’s growth rate through reproduction is flat (i.e.
are there in Copenhagen residences? births=deaths), how many babies do you expect will be born in Canada
today? (use a 360-day year)

3 Imagine you are the marketing manager of a shoe company. If variable

costs are 100 DKK and fixed costs are 2.5 million/ year, what will you 8 A car company is considering paying 1.4 million DKK for a one-minute
advertisement during the World Cup. According to their research, the
need to price the shoes to break even on sales of 5,000 pairs per year? advertisement will result in a 0.002% conversion rate of male viewers
aged 18-35 and a 0.000% conversion rate for all other segments. If 8
million people will see the ad and 50% of viewers are in the target

4 Your research indicates that customers will pay a maximum of 500 DKK
per pair. How many additional pairs will you need to sell in order to
recover your fixed costs?
group, what is the estimated advertising cost for each car purchased as
a result of the ad?

5 If you find a way to reduce costs by 20%. What is the new break-even
point?

22
Other tips & tricks

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 Balancing speed and accuracy Useful tips I
• Doing math problems can seem very stressful, which may cause you to
make mistakes you would not have made otherwise. Remove zeros
• Saying your calculations out loud can help the interviewer to follow
your calculations and further help you preventing mistakes from 1 If you are multiplying 4,000,000 x 18,000, it is much easier removing
the zeros by saying: 4 x 18 = 72 and the adding the 9 zeros you
happening.
removed so the final answer is 72,000,000,000 or = 72 billion
• Making calculation mistakes can leave a bad impression with the
interviewer, why being diligent in your calculations and thinking twice
before stating your answer can save you from making mistakes. It can
be helpful to show the interviewer, which steps you are going through.
2 Decompose numbers to make them easier to calculate
When numbers have more than one significant digit, they usually
have additional properties that make calculations like multiplication
• Walk your interviewer through your calculations and write every step
out on paper to make sure you don’t miss a step. As always in a case and division much easier.
interview, feel the room to sense whether your interviewer wants to For example, if you are told a company sells a product for 32 DKK
be taken through all of the steps or he just wants a quick answer. per unit and sells 25,000 units per year, and you are asked to
• Once you get to an answer it is also a good idea to take a step back calculate the revenue.
and ask yourself whether it makes sense when you think of other You would then need to do the calculation: ($32 × 25,000) which
certain figures you know. you could do using pen and paper by removing the zeros as
• If you for example are asked to estimate the market size of dog food in described earlier.
Denmark, and you end up with something like 200 billion DKK. If you A faster method that you can do in your head, would be to first
know that the Danish GDP is around 2,000 billion DKK you could decompose 25 as: (25 = ¼ × 100) and then do the calculation using
probably quickly tell yourself that the annual sale of dog food is not this decomposition of 25:
10% of total GDP, why you must have made an unrealistic assumption 32 × ¼ = 32 ÷ 4 = 8
or missed a zero somewhere in your calculations. 8 × 100 = 800
• But at the same time, your interviewer is also judging you based on Therefore 32 × 25 = 800.
your speed, why practising shortcuts and your general calculation
speed can really benefit you in a case interview.

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Useful formulas Useful tips II

Revenue = Volume x Price

Cost = Fixed costs + Variable costs 3 Practice converting basic fractions into
percentage/decimal numbers
Profit = Revenue - Cost By e.g. creating a table as below
Profit margin/Profitability = Profit / Revenue
Return on investment (ROI) = Annual profit / Initial Fraction Decimal number Percentage

investment 1/10 0.1 10%

Breakeven/Payback period = Initial investment / 1/9 0.111 11.1%
Annual profit
1/8 0.125 12.5%

1/7 0.143 14.3%

1/6 0.167 16.7%

Useful resources 1/5 0.2 20%

1/4 0.25 25%

• Mathemagics (app)
1/3 0.333 33.3%
• Caseinterview.com math test 1/2 0.5 50%
(https://www.caseinterview.com/math/mathtest.php) 1/1 1 100%

KNOW THESE BY HEART!

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Other Tips and Tricks
✓ Take notes during the interview
• Note down important points mentioned by the interviewer to make sure that you don’t miss anything

✓ Clarification
• It is always a good idea to repeat the initial prompt made by the interviewer to ensure that you got all
the important point and know what problem you are solving – ask clarifying questions if needed

✓ Be hypothesis-driven
“Practice does not • Interviewers look for people who gets it right via structured problem solving, rather than candidates
make perfect. Only that “get lucky” in guessing the solution. Being hypothesis-driven also resembles consulting work.
perfect practice
makes perfect.” ✓ Ask for a moment to think
• Take a moment before answering a question to make sure that you remain structured and concise in
your answer

✓ Seem interested
• Make sure to seem interested and curios about the problem and the process to radiate that you are
motivated and would make a great and fun co-worker, even working many hours a week. It is always a
good idea to smile during the interview, as it shows that you like doing case interviews.

✓ Be confident and own what you say

• Interviewers look for candidates who are able to stand in front of a client and candidates that can back
up their argumentation and defend it as long as it makes sense.
A common saying is that; “a consultant is often wrong, never in doubt”
26
The case interview process: five steps to remember

27
The case interview process - Five steps to remember

1. Listen & ask

Listen carefully and note down all facts given in the prompt. Make sure you understand the case fully and get all the details by asking. Repeat the most
important information to the interviewer to make sure that you have understood everything correctly.

2. Framework
Draw a structured framework on a piece of paper, adapt it to the specifics of the case and walk your interviewer through it.

3. Investigation
Start investigating your framework with the interviewer. Exhaust the issue tree in a structured manner. This is especially
important in relation to the candidate-led interviews.

4. Questions
Use your framework to either ask or answer case related questions from the interviewer in a
structured manner.

5. Recommendation
Synthesize all relevant conclusions into a structured recommendation including the actual
recommendation, reasons, risks and potential next steps.

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1. Listen & ask
Prompt
Due to a recent pandemic, a lot of bakeries in New York have become insolvent. Our client
sees a gap in the bakery market and wants to open a store on Wall St. The task is to help
evaluate profitability and provide a recommendation on whether to open the store.

Listen
Listen closely to the prompt to ensure that you get all details and potential hints.

Ask
Listen carefully and note Ask the interviewer relevant questions that can help you with your framework. Keep in mind
down all facts given in the that not all questions are of equal quality. You will be judged on your ability to ask the right
prompt. questions – meaning those that provide you with the necessary answers to solve the case.
Make sure you understand
Example
the case fully and get all the 1. What is meant by profitability?
details by asking. • Answer: The client hopes for a Return on Investment of 5%.

2. Does the client have a time-horizon for the return on investment?

• Answer: The client aims at achieving its 5% ROI within 5 years.

3. Does the client have in-house knowledge and/or experience to open and run a bakery?
• Answer: Yes, the client is presumed to have sufficient knowledge and capabilities.

Tip
It is often useful to ask for a specific goal for the case to have an explicit target to aim for.

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2. Framework

Draw a structured framework on a piece of paper and adapt it to the specifics of the case.
Walk your interviewer through it to ensure alignment from the beginning of the case

Draw
Draw a structure that suits the specific case. This case is a question
of potential profitability of a store. Should the client open the
bakery?
Walkthrough
Walk through the framework with the interviewer to ensure
alignment and that you have considered all relevant aspect. Revenue Cost
Example
Revenue segmentation can be done by product type, geography, # of items sold Price per item Fixed cost Variable cost
customer type, distribution channel among others.
Fixed cost include rent, staff overhead, loan interest etc. # of items sold Variable cost per item
Variable costs include raw material, delivery, direct labour etc.

Tip
Use your framework actively by writing down all facts given by the
interviewer in the framework. This shows that you are able to
structure information and helps you process it.
Furthermore, make the framework as case-specific as possible, e.g.
#cakes sold multiplied with the price per cake.
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3. Investigation

Start investigating your framework with the interviewer.

Exhaust the issue tree in a structured manner.

Investigate
Investigate the most important branch first and add relevant
information to the framework along the way. The most important
branch follows the hypothesis-driven approach, so state your Should the client open the
assumptions based on the initial information and clarifying questions.
bakery?
Example
1. Are there any competitors in the area?
• Answer: 3 competitors with equal markets share, assume that
Revenue Cost
the client can obtain 25% market share
# of items sold Price per item Fixed cost Variable cost
2. How many days a month is the bakery open?
• Answer: 20 days a month
5 mil jobs in NYC 1$ per item # of items sold Variable cost per item
3. What are the associated fixed and variable costs?
• Answer: Fixed cost comprise of 20,000$/year licensing fee and 5% walks past daily 30,000$ per year 0.25$ per item
10,000$/year rent.
Variable are 0.25$ per cake etc. sold. 2% buys 1 item daily

Tip
Each time you have investigated a branch, synthesize your 25% market share
understanding for the interviewer to show your thoughts.

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4. Questions (I/III)

Question 1
What would the annual revenue be for the bakery?

Your answer – use the information from the framework!

Number of people walking past the store daily:
• 5 million jobs * 5% walking by = 250,000/day
Use your framework to
Number of people buying item daily of those that walk by:
answer case questions • 250,000/day * 2% buying item = 5,000 items sold per day
from the interviewer in
a structured manner Number of items sold annually with 25% market share:
• 25% market share * 5,000 items * 20 days/months * 12 m/year = 300,000 items/year

Annual revenue
• 300,000 items/year * 1$/item = 300,000$/year

Tip
Write down your calculations in a structured manner on a piece of paper. Some information might
be useful at a later stage and you should not do the calculation twice.

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4. Questions (II/III)

Question 2
When will the bakery break even if it incurs an upfront investment of 400,000$?
Your answer – use the information from the framework!
Annual expenses:
• Total annual cost = Fixed cost + Variable cost * Items sold per year
• Fixed cost: 30,000$/year
Use your framework to • Variable cost: 0.25$/item
• Total annual cost = 30,000$/year + 0.25$/item * 300,000 items/year = 105,000$/year
answer case questions
from the interviewer in Number of years until break even
a structured manner Years * (revenue – cost) – upfront investment = 0
Years * (300,000$/year – 105,000$/year) – 400,000$ = 0
Years = 400,000$ / 195,000$/year = 2.05 years ≈ 2 years

Tip
400,000 divided by 195,000 can be difficult to calculate quickly – but 400,000 divided by 200,000 is
easy. Rounding up can help you calculate quicker in case settings and can make hard calculations easy.
It is important to clear with the interviewer whether rounding up is accepted or not. This can be done
by simply asking the interviewer: “Would it be fine if I use 200,000 instead of 195,000?”
If you forget to ask the interviewer, he/she might see that as a mistake, which negatively affects your
overall score.

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4. Questions (III/III)

Question 3
How can the bakery improve profits?
Your answer – use the information from the framework!
Brainstorming question – answers include, but are not limited to the following:

• Bundle items (e.g. cake & coffee) to increase average spend per customer
Use your framework to
• Diversify product portfolio to reach new customers
answer case questions
from the interviewer in • Loyalty programs to increase customer retention
a structured manner
• Introduce dynamic pricing to adjust for demand fluctuations throughout the day

• Decrease unit cost by optimizing procurement

• Introduce delivery services for the busy people on Wall St.

Tip
Answers to brainstorming questions can often be reused. As an example, in most cases with clients
selling goods, bundling or loyalty programs can often be mentioned in a brainstorming question.
It is important to notice that the brainstorming session should be structured, so take your time in
formulating an answer. Ask for time to structure your thoughts if needed.

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5. Recommendation

Synthesize all relevant conclusions into a structured recommendation including the actual
recommendation, reasons, risks and potential next steps.

Recommendation Summary
State your overall recommendation that answers the prompt: Summarize the bullet points on the left to a 30-second
• The client should exploit the gap and open the bakery recommendation.

Reasons Recommendation
Outline 2-3 reasons for the recommendation: The client should open the bakery for three main reasons. The client will
• The client will be able to obtain 195,000$/year profits obtain profits of 195,000$ per year and pay back the investment in 2
• The investment will be paid back in ~2 years years, with opportunities to improve profits by introducing bundling or
• The client has several possible ways of improving profits, including loyalty programs.
bundling or loyalty programs. Risks in this recommendation include assuming that the client succeeds
in obtaining 25% market share.
Risks Immediate next steps for the client should be to investigate sourcing
Address risks related to the recommendation: channels and analyse pricing models before opening the store.
• The recommendation assumes that the client obtains 25% market
share instantly, which is very optimistic Tip
Remember recommendation, reason and risks (RRR) when doing your
Next steps final recommendation. These three points help you structure your final
Outline potential next steps for the client: narrative, which is crucial in the evaluation.
• Investigate whether procurement can be optimized One efficient approach is to write the recommendation-points on a
• Analyse pricing models separate piece of paper as you go.

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Market-sizing examples

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 1 Clarify – Ask questions to understand what the interviewers actually asks

Example 1 Example 2

What is the size of the US gun market? How many trash cans are sold in the US annually?

Are we trying to estimate the market size in number of guns sold or in the Should I consider ALL trash cans should, i.e. for residential homes, offices,
total dollar amount? public use?
• Please estimate the total number of guns sold. • Please only include trash cans sold for private homes.

Are we talking about ALL guns, i.e. guns for civil citizens, military, hunting, Please confirm that I should calculate the number of trash cans sold for
police and heavy artillery? private homes, and not the dollars amount spent on trash cans.
• Please only include guns for civil citizens. • Correct, please calculate the number of trash cans.

Should I consider import/export factors or only domestic demand? Should I consider trash cans sold for new built or existing homes?
• Please only investigate US domestic demand for guns. • Please include both

Tips
Ensure that you understand what the end goal is – unless obvious, ask the interviewer which unit the market should be in. It is important for both your
structure and your calculations that you understand what the interviewer asks.
Remember that often there are no correct answer to market sizing questions, but it is still important to go in the right direction.

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 2 Overview – Map out your calculations in a structured manner

An issue tree charts out each step of the calculation in a market-

sizing case. The issue tree approach has several advantages:
• Helps maintain an overview throughout the case
• Makes it easy to explain your logic to the interviewer Existing guns Population
• Keeps track of your calculations along the way
Guns sold for
Market sizing cases often force you to think creatively, since you replacement % with gun
have limited background information on the given case. It can be
difficult to think creatively and include each and every important
parameter for a market you know nothing about, but that is part % replaced per year
What is the number of % with gun permit
of the test. Three things to keep in mind for the issue tree:
• Ensure that all factors are relevant to the specific case guns sold per year for
• Avoid standard frameworks – adapt your tree to the case civil citizens in the US?
Guns per person
• Explain relevance and why the specific factors are included

If you miss crucial factors in your issue tree, the interviewer will Existing guns
often ask probing questions until you mention the factor, he/she
had in mind. This is not necessarily a negative, as long as you Growth in number
make sure to understand and explain to the interviewer why that of guns
specific factor is relevant for the market size calculation. % change of
drivers*
Tips
Memorize the standard frameworks and adapt them to the
specific case you get – A cost cutting case should only focus on the
cost arm of a profitability case, and not include revenue.
*Change of drivers refers to change in the "appetite" for gun ownership in the US, i.e. if people are buying more or less guns per year
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 3 Calculate - Use the issue tree to calculate and keep track of the numbers

The interviewer usually provides some of the numbers required

for the calculations, but you often have to make assumptions.
In this case, the following assumptions could be made:
• US Population: 330 million people Existing guns Population
• % with permit: 20% 120 Mn 330 Mn
• % with gun of those who have permit: 90% Guns sold for
• Guns per person: 2 guns replacement % with permit
24 Mn
These numbers are estimates. The interviewer expects you to 20%
know the US population, but the other factors should be
estimated and logically explained. As an example, the "% with % replaced per year
What is the number of % with gun
permit"-factor is estimated by considering how many people are 20%
eligible for having a permit (i.e. over 18 years of age) and how guns sold per year for 90%

many wants to have a permit (i.e. study and take a test). civil citizens in the US?
Guns per person
26.4 Mn 2 guns
The sub-branches should be used to calculate the other
branches - "Existing guns" is calculated by multiplying the factors Existing guns
mentioned above (i.e. 330 m * 20% * 90% * 1.5 = 119 Mn) 120 Mn
Growth in number
Tips of guns
2.4 Mn
• Use round numbers when estimating numbers for the issue % change of
tree to make your calculations easier and quicker drivers*
2%
• Ask the interviewer if it is okay to round numbers in
calculations – the "Existing guns"-factor came to 119 Mn.
This can be rounded to 120 Mn to make your calculations
easier.
*Change of drivers refers to change in the "appetite" for gun ownership in the US, i.e. if people are buying more or less guns per year
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4 Sanity check Use your common sense to question your result

Does the result make sense?

Contextualize your findings and consider the numbers again to understand your result.
• 26.4 Mn guns per year means that ~8% of the US population buys a new gun every year.
• Assuming an average lifetime of an American of 90 years, 26.4 Mn guns sold per year entails that 10% of
the population above 18 buy a new gun every year.
• Guns normally last quite long and the gun market is a relatively controlled market.
Based on above considerations, we must conclude that the results does not make sense in reality, since our
market size estimate seems to be too high.
Our calculations show
that 26.4 million guns Where did the mistake happen?
are sold per year in Investigate where the mistake occurred - Was is a calculation error, wrong estimate or…?
the US for civil citizens • Quickly run through the calculations again – if you have followed the issue tree structure, it should be
rather straightforward to spot a mistake along the way.
• Check your estimates. Are any of them either way too high or way too low?
In our specific case, there are some numbers that are too high:
• % replaced per year – 20%: It does not make sense that 20% of all guns are replaced per year – that
would entail that a gun only lasts 5 years. Could be reevaluated at 10%.
• % change of drivers – 2%: Unrealistic that there is a yearly increase of 2% in "appetite" for guns.

How can the mistake be fixed?

Redo the calculations with your new estimates in mind or simply explain to the interviewer what you could
have done to get a more realistic answer. Sometimes they want to redo the calculations.

Tips: Be critical to your own work – better to be honest and fix the mistake than trying to cover it up.
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External sources to case interview practice materials

41
There’s so much more to learn… …and plenty material to use

Books Case Collections

Most used books for learning about case interviews. A collection of cases for you to practice with.

www.wallstreetoasis.com/forums/business-school-case-books
McCombs 2008 Darden 2012

Fuqua 2014 HBS 2011

HBS (older) Illinois 2015

”Case in Point” ”Case Interview Secrets”
Mark Cosentino Victor Cheng
INSEAD 2011 McGill 2013

LBS 2013 Wharton 2007, 2009, & 2010

Online guides & forums
Contains guides and helps you to find case partners around the world. theconsultingchallenge.files.wordpress.com/2018/06/289334312-yale-
casebook-2013-full-6.pdf
consultingcase101.com igotanoffer.com Yale 2013

preplounge.com caseinterview.com

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Final to-do list: ace the case

43
Final to-do list: ace the case

Learn the format Start looking for Practice cases with Reflect on your
and models case partners a partner progress

Phase 1: Learn the basics 1 Phase 2: Practice cases 2 Phase 3: Refine your skills 3

Nail it!

Brush up on your Read/watch some case Keep on practising

math skills examples by yourself

Milestones

1 You should have a thorough 2 Once you’ve practised a few cases 3 You have at this point practised so
understanding of the case format as with a partner you will start to get a many cases that you’re basically a
well as knowledge on how to adapt much better understanding of how pro. You can nail an interview, even
basic frameworks. the case interview works. while under pressure.
Furthermore, you also need to know Keep practising and ask for Some require 15 cases to feel
the basics of quick mental math. feedback every time. comfortable – others need a lot more.
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