5-3=2 2 in 3L 5 vullen, 5-1 = 4

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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

Introduction Today’s Goal My Story Your story

Agenda Introduction Interview Basics: Types General Approach Frameworks Case Interviews: Brainteasers Guesstimates/Market Sizing Business Situation Practice Rounds: Market Sizing Business Situation Concluding Remarks

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.

Interview Basics: Approach How 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

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.

Agenda Introduction Interview Basics: Types General Approach Frameworks Case Interviews: Brainteasers Guesstimates/Market Sizing Business Situation Practice Rounds: Market Sizing Business Situation Concluding Remarks

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

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.

Case Interviews: Guesstimates Often 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?

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

On assumptions Assume if possible, don’t calculate everything. Use easy assumptions: 15 million inhabitants in NL 5 million households Age distribution is equal (use 16 million inhabitants) Male/Female 50/50 Maximum age of 80 Etc. Support your assumptions, think out loud.

Supporting assumptions Household “There are 15 million inhabitants, an avarage of 3 people per household, thus i assume there are 5 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 Dutch 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...”

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.

Guesstimates: hints & tips Practice The interview itself is stressful enough, you want the approach to become second nature. Practice math Download Kopfrechnen Trainieren Read: WetFeest Guides: Ace your Case Case in Point by Marc Cosentino Practice, practice, practice!

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 (!)

Opening a Case (cont.): Structuring Structure is very important Right Process vs Right Answer Four steps: 1. Identify 2. Match Framework 3. Describe Key Components 4. Draw Framework

II. Analyze Analyzing = breaking down Always break everything down, segment until you find something Six steps: 1. State Hypothesis 2. Pick Branch of Framework 3. Identify Key Issues 4. Ask Questions 5. Dig deeper or go back up 6. Refine Hypothesis When given data: Ask for numerical data Development through time Competitor situation

III. Closing Synthesis: 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.

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.

Business Situation: Hints and Tips Practice: Nothing beats practicing with a partner. Otherwise: www.caseinterview.com Victor Cheng’s LOMS programme Cases from casebooks and Cosentino Practice does make (almost) perfect.

Frameworks Goal: to apply frameworks and be able to ‘play’ with them. Examples of frameworks: Profit = Revenue - Cost Porters’ 5 Forces 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”.

Profitability Framework Profit Revenue Cost Price x Quantity Fixed Cost Variable Cost: Cost x Quantity

Business Case Framework Profit Framework Internal External Market Conditions Competitors Customers Company Product

Agenda Introduction Interview Basics: Types General Approach Frameworks Case Interviews: Brainteasers Guesstimates/Market Sizing Business Situation Practice Rounds: Market Sizing Business Situation Concluding Remarks

Coffee break

Example Case: Garden Hoses Our 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?

Example Case: MediaCo MediaCo 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?

Example Case: MediaCo Profit Revenue Cost Price x # sold Fixed Cost Variable Cost

Example Case: MediaCo Diving 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?

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

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