INDUCTIS April 2002 How To Ace Your Interview Interview Workshop

INDUCTISINDUCTIS

April 2002April 2002

How To Ace Your InterviewHow To Ace Your Interview

Interview WorkshopInterview Workshop

2Proprietary and Confidential. inductis, Inc.

AgendaAgenda

IntroductionIntroduction

Fit InterviewFit Interview

Case InterviewCase Interview

Sample CasesSample Cases


What Makes A Good ConsultantWhat Makes A Good Consultant

Factors for Success: "The key factors for success in the management Factors for Success: "The key factors for success in the management consulting field are qualities of character, intelligence, judgment, the ability consulting field are qualities of character, intelligence, judgment, the ability to express oneself persuasively, self-confidence, [and] self-discipline."to express oneself persuasively, self-confidence, [and] self-discipline."

Problem Solver: "The consultant is a professional problem solver who likes Problem Solver: "The consultant is a professional problem solver who likes solving problems for the thrill of it, for his/her own satisfaction. S/he likes to solving problems for the thrill of it, for his/her own satisfaction. S/he likes to face a variety of problems frequently. S/he's not the kind of person who face a variety of problems frequently. S/he's not the kind of person who could sit for 20 years behind the same desk. " could sit for 20 years behind the same desk. "

Team Leader: "The professional consultant must plan and organize much of Team Leader: "The professional consultant must plan and organize much of his/her own work, must readily grasp and assume effective control of his/her own work, must readily grasp and assume effective control of situations which are inherently unclear, and must be able to lead people over situations which are inherently unclear, and must be able to lead people over whom s/he exercises no authority."whom s/he exercises no authority."

Source:Source: 1968 Interviews with management consultants1968 Interviews with management consultants


Types Of InterviewsTypes Of Interviews

Typically the interviewing process is broken into a fit interview and a case interview. To Typically the interviewing process is broken into a fit interview and a case interview. To receive an offer you must succeed receive an offer you must succeed at both interviews.at both interviews.

FitFit CaseCaseOfferOffer


The Fit InterviewThe Fit Interview


OverviewOverview

The main purpose of the fit interview is to discover whether you will "fit" The main purpose of the fit interview is to discover whether you will "fit" with the firm's culture and people.with the firm's culture and people.

• To explore your personal integrity and ambitionsTo explore your personal integrity and ambitions

• To learn about your interests and to see if they match those of To learn about your interests and to see if they match those of the firmthe firm

• To see whether you can "present" yourself in a coherent To see whether you can "present" yourself in a coherent mannermanner

• To ascertain your level of knowledge and interest in consulting To ascertain your level of knowledge and interest in consulting

• To provide an opportunity for you to learn more about our firmTo provide an opportunity for you to learn more about our firm

ObjectivesObjectives


Character Traits Explored In The Fit InterviewCharacter Traits Explored In The Fit Interview

Analytic and Analytic and Quantitative SkillsQuantitative Skills

Communication SkillsCommunication Skills

Leadership AbilityLeadership Ability

TeamworkTeamwork

Ethics and IntegrityEthics and Integrity

OrganizationOrganization

Computer SkillsComputer Skills

CharacteristicsCharacteristics


Dos And Don'ts Of A Fit InterviewDos And Don'ts Of A Fit Interview

Since the fit interview is designed to see simply if you match well with the firm, it is Since the fit interview is designed to see simply if you match well with the firm, it is difficult to put forth a set of rules. However, there are some basic dos and don'ts.difficult to put forth a set of rules. However, there are some basic dos and don'ts.

DO:DO:• Relax and be comfortableRelax and be comfortable• Express your own interests and Express your own interests and

expectationsexpectations• Convey a coherent picture of Convey a coherent picture of

yourself and your skillsyourself and your skills• Ask good questionsAsk good questions• Demonstrate your knowledge of the Demonstrate your knowledge of the

firm (i.e. its culture and history)firm (i.e. its culture and history)

DON'T:DON'T:• Get defensive or let nerves overcome Get defensive or let nerves overcome

youyou• Feign interest in subjects to impress the Feign interest in subjects to impress the

interviewerinterviewer• Tell stories that confuse the interviewer Tell stories that confuse the interviewer

or provide confusing images of who you or provide confusing images of who you areare

• Ask questions for the sake of asking Ask questions for the sake of asking questionsquestions

• Appear ignorant about the position for Appear ignorant about the position for which you are interviewing or about the which you are interviewing or about the firm with which you are interviewingfirm with which you are interviewing


The Case InterviewThe Case Interview


OverviewOverview

Case interviews seem to be one of the biggest sources of stress surrounding Case interviews seem to be one of the biggest sources of stress surrounding the interviewing process, but they don't need to be. If you understand what the interviewing process, but they don't need to be. If you understand what the interviewer is looking for, case interviews can be quite manageable.the interviewer is looking for, case interviews can be quite manageable.

• To ascertain how you think through problemsTo ascertain how you think through problems

• To determine your ability to structure a logical To determine your ability to structure a logical argumentargument

• To test your analytic and quantitative skillsTo test your analytic and quantitative skills

• To give you a flavor for the types of problems To give you a flavor for the types of problems consultants work onconsultants work on

ObjectivesObjectives


• Think first, then speak Think first, then speak

• Be as clear and concise as possible (e.g. 1, 2, 3)Be as clear and concise as possible (e.g. 1, 2, 3)

• Ask questions, don't just give answersAsk questions, don't just give answers

• Make sure you are answering the problem being askedMake sure you are answering the problem being asked

• Establish the scope of the problem before digging deep in one areaEstablish the scope of the problem before digging deep in one area

• Always state your assumptionsAlways state your assumptions

• Don't be afraid to take notes if there are a lot of factsDon't be afraid to take notes if there are a lot of facts

• Be sure you explain your thought process/logic pathBe sure you explain your thought process/logic path

• Select a solution and justify itSelect a solution and justify it

• Don't forget possible alternativesDon't forget possible alternatives

• Read the newspaper the day of your interview; many times interviewers will Read the newspaper the day of your interview; many times interviewers will pull their cases from the day's newspull their cases from the day's news

General Hints For Approaching CasesGeneral Hints For Approaching Cases

No matter what kind of case you face, there are a few guidelines you should No matter what kind of case you face, there are a few guidelines you should always keep in mind.always keep in mind.

General TipsGeneral Tips


United States Basic StatisticsUnited States Basic Statistics

While you certainly shouldn't go and memorize the census report, there are While you certainly shouldn't go and memorize the census report, there are certain statistics that you should be familiar with in order to help you solve certain statistics that you should be familiar with in order to help you solve cases. You should also be familiar with general demographic trends (i.e. cases. You should also be familiar with general demographic trends (i.e. Gen-Xers vs. Baby-Boomers and income distribution).Gen-Xers vs. Baby-Boomers and income distribution).

Population of the world:Population of the world:6.2 billion6.2 billion

Population of the U.S.:Population of the U.S.:290 million290 million

Number of adults in the U.S.:Number of adults in the U.S.:210 million (18+ yrs.)210 million (18+ yrs.)200 million (25+ yrs.)200 million (25+ yrs.)

Number of cars perNumber of cars perhousehold:household:

2.5 2.5

Number of households in the U.S.:Number of households in the U.S.:105 million105 million

Minimum wage:Minimum wage:approx. $5 per hourapprox. $5 per hour


India Basic StatisticsIndia Basic Statistics

While you certainly shouldn't go and memorize the census report, there are While you certainly shouldn't go and memorize the census report, there are certain statistics that you should be familiar with in order to help you solve certain statistics that you should be familiar with in order to help you solve cases. cases.

Population of the world:Population of the world:6.2 billion6.2 billion

Population of India:Population of India:1000 million1000 million

Number of adults in India:Number of adults in India:530 million (18+ yrs.)530 million (18+ yrs.)440 million (21+ yrs.)440 million (21+ yrs.)

Number of cars perNumber of cars perHousehold: Household:

0.020.02

Number of households in India:Number of households in India:180 million180 million

Minimum wage:Minimum wage:approx. 15 rupees per hourapprox. 15 rupees per hour


Interviewing StylesInterviewing Styles

Every interviewer will have a different interview style. When explaining a Every interviewer will have a different interview style. When explaining a case you must feel comfortable with each of the different approaches and be case you must feel comfortable with each of the different approaches and be able to adapt your approach.able to adapt your approach.

• Detailed introduction of Detailed introduction of casecase

• Specific problem to be Specific problem to be solvedsolved

• A few starter factsA few starter facts

• Many additional facts Many additional facts available, if askedavailable, if asked

• Conversational feel Conversational feel throughout case interviewthroughout case interview

Detailed ProblemDetailed Problem

• Brief introductionBrief introduction

• Very broad description of Very broad description of problem (e.g. poor problem (e.g. poor performance)performance)

• Few, if any facts availableFew, if any facts available

• ““What do you think” What do you think” responses to many responses to many questionsquestions

Conceptual ProblemConceptual Problem

Case DescriptionsCase Descriptions

Two ExtremesTwo Extremes


Types Of CasesTypes Of Cases

The types of cases you are likely to encounter will generally fit into one of The types of cases you are likely to encounter will generally fit into one of three distinct groups.three distinct groups.

Special CasesSpecial Cases• EngineeringEngineering• EconomicsEconomics• Data AnalyticsData Analytics• MiscellaneousMiscellaneous

StrategyStrategy Build-UpBuild-Up

Types of CasesTypes of Cases


Strategy CasesStrategy Cases

Strategy cases generally involve one or more of the following three issues, Strategy cases generally involve one or more of the following three issues, but these certainly do not represent the universe of possible scenarios.but these certainly do not represent the universe of possible scenarios.

Types of Strategy Cases

CostsCosts

RevenuesRevenues

MarketingMarketing


Frameworks For Approaching Strategy Cases – The Frameworks For Approaching Strategy Cases – The Four P's Four P's

While you probably do not want to make it obvious that you are using an While you probably do not want to make it obvious that you are using an economic framework to solve a case, employing the underlying logic should economic framework to solve a case, employing the underlying logic should help you structure your argument and solidify your analysis. One popular help you structure your argument and solidify your analysis. One popular framework is the Four P's:framework is the Four P's:

•What product do you want to sell?What product do you want to sell?•What product are you able to produce?What product are you able to produce?•What advantages does your product offer?What advantages does your product offer?

•What price must you charge to make a profit?What price must you charge to make a profit?•What price are consumers willing to pay?What price are consumers willing to pay?•What price are your competitors charging?What price are your competitors charging?

•Where is there a demand for your product?Where is there a demand for your product?•Where are your suppliers located?Where are your suppliers located?•What distribution channels are being used?What distribution channels are being used?

•Who is your target audience?Who is your target audience?•How do you reach them?How do you reach them?•How much do you want to spend on promotions How much do you want to spend on promotions

and advertising?and advertising?

The Four P'sThe Four P's

ProductProduct

PricePrice

PlacePlace

PromotionPromotion


Frameworks For Approaching Strategy Cases – The Frameworks For Approaching Strategy Cases – The Four C's Four C's

Another helpful framework in approaching a strategy case is the Four C's.Another helpful framework in approaching a strategy case is the Four C's.

•What do the customers want and need?What do the customers want and need?•How will you satisfy those needs?How will you satisfy those needs?•What is most important to the customers?What is most important to the customers?•How much will they pay for it?How much will they pay for it?

•What are your competitors doing?What are your competitors doing?•What are their strengths and weaknesses?What are their strengths and weaknesses?•How are they meeting the customer's demand?How are they meeting the customer's demand?•What is their cost structure?What is their cost structure?

•What are your company's capacities:What are your company's capacities:-- financial financial- - organizationalorganizational- - productionproduction- - marketing?marketing?

•What are your strengths and weaknesses?What are your strengths and weaknesses?

•What is your cost structure?What is your cost structure?-- fixed costs fixed costs-- variable costs variable costs

•How have your costs changed over time?How have your costs changed over time?

The Four C'sThe Four C's

CustomersCustomers

CompetitorsCompetitors

CapacityCapacity

CostsCosts


Framework For Approaching Strategy Cases – Marketing Framework For Approaching Strategy Cases – Marketing Strategy Model Strategy Model

While it is slightly more complex than the previous frameworks, the marketing While it is slightly more complex than the previous frameworks, the marketing strategy model provides an excellent frame of reference for marketing cases.strategy model provides an excellent frame of reference for marketing cases.

Marketing Strategy Model

Consumer Consumer AnalysisAnalysis

CompetitionCompetitionDistributionDistribution

Marketing Marketing MixMix

EconomicsEconomics

• What is the relevant market?• Who is buying and who is using the

product?• What is the buying process?• How can I segment the market?

• What are your company's strengths and weaknesses?

• What are your competitor's strengths and weaknesses?

• What is your relative size and position in the market?

• How do your resources differ from those of your competitors?

• What are the costs?• What is the break even?• How long is the payback on

my investment?

• How does my product fit with my other products?

• How will I differentiate my product?

• How does the product life cycle affect my plans?

• How can my product reach the consumer?• How much do the players in each distribution channel profit?• Who holds the power in each distribution channel available?

StartStart


The Build Up CaseThe Build Up Case

While most cases fall into the strategy category, there are several cases that While most cases fall into the strategy category, there are several cases that are build-up cases. These cases are meant to test your quantitative ability are build-up cases. These cases are meant to test your quantitative ability and general logical reasoning skills.and general logical reasoning skills.Examples

$

There are approximately 6 billion people in the world.There are approximately 6 billion people in the world.Lets assume that a third live in areas where they cannot Lets assume that a third live in areas where they cannot get credit cards (rural areas, poverty stricken areas, get credit cards (rural areas, poverty stricken areas, etc.).etc.).Of the 4 billion remaining lets assume three quarters are Of the 4 billion remaining lets assume three quarters are adults (in the U.S. it’s 4/5, but we have a slower birth rate adults (in the U.S. it’s 4/5, but we have a slower birth rate than many countries).than many countries).Of the 3 billion adults a third don't carry credit cards (they Of the 3 billion adults a third don't carry credit cards (they have bad credit, don't believe in credit cards, are have bad credit, don't believe in credit cards, are unemployed, etc.).unemployed, etc.).Of the 2 billion adults who carry credit cards, each Of the 2 billion adults who carry credit cards, each carries on average of 3 cards (Visa, Mastercard, carries on average of 3 cards (Visa, Mastercard, American Express).American Express).Resulting in 6 billion credit cards in the world.Resulting in 6 billion credit cards in the world.

Yankee Stadium holds approximately 50,000 fans.Yankee Stadium holds approximately 50,000 fans.There are approximately 150 additional people working There are approximately 150 additional people working at the stadium.at the stadium.Of the workers each either carry approximately 40 Of the workers each either carry approximately 40 quarters or have 40 in their cash registers to provide quarters or have 40 in their cash registers to provide change to customers for a total of 6,000 quarters.change to customers for a total of 6,000 quarters.Of the fans approximately 4/5 are male.Of the fans approximately 4/5 are male.Of that 40,000 half are like my dad and have about 10 Of that 40,000 half are like my dad and have about 10 quarters in their pockets at any given time for a total of quarters in their pockets at any given time for a total of 200,000 quarters.200,000 quarters.Of the remaining 20,000 half have no quarters, and half Of the remaining 20,000 half have no quarters, and half have 6 quarters to ride the subway home for a total of have 6 quarters to ride the subway home for a total of 60,000 quarters.60,000 quarters.Of the 10,000 women half have 12 quarters for them and Of the 10,000 women half have 12 quarters for them and their husbands/boyfriends to ride the subway home, and their husbands/boyfriends to ride the subway home, and half have 1 quarter to call someone in an emergency for half have 1 quarter to call someone in an emergency for a total of 65,000 quarters.a total of 65,000 quarters.For a grand total of 331,000 quarters in Yankee Stadium.For a grand total of 331,000 quarters in Yankee Stadium.

There are approximately 250 million people in the U.S.There are approximately 250 million people in the U.S.Of those about half are women.Of those about half are women.Of the 125 million women 4/5 are adults.Of the 125 million women 4/5 are adults.Of the 100 million adult women about 3/4 wear either Of the 100 million adult women about 3/4 wear either pierced or clip-on earrings for a total of 75 million people.pierced or clip-on earrings for a total of 75 million people.Of the 25 million girls about 1/5 get their ears pierced or Of the 25 million girls about 1/5 get their ears pierced or start wearing earrings each year and about 2/5 already start wearing earrings each year and about 2/5 already have until the full 3/4 wear earrings by the time they are have until the full 3/4 wear earrings by the time they are adults for a total of approximately 15 million girls at any adults for a total of approximately 15 million girls at any given time.given time.Of the 125 million men, 4/5 are adults.Of the 125 million men, 4/5 are adults.Of the 100 million adult men about 1/20 wear earrings Of the 100 million adult men about 1/20 wear earrings (based on my personal experience, but obviously (based on my personal experience, but obviously subjective) for a total of 5 million.subjective) for a total of 5 million.Of the 25 million boys only about 1/50 have parents who Of the 25 million boys only about 1/50 have parents who will let them wear earrings for a total of .5 million boys.will let them wear earrings for a total of .5 million boys.For a grand total of 95.5 million people wearing earrings.For a grand total of 95.5 million people wearing earrings.

How many credit cards are there in the world?

How many quarters are there in Yankeestadium during a sold out game?

How many people in the U.S. wearearrings?


Special CasesSpecial Cases

There are a variety of other types of cases which you may be asked. They will There are a variety of other types of cases which you may be asked. They will focus on your ability to think conceptually, business acumen, and creativity.focus on your ability to think conceptually, business acumen, and creativity.

Examples

Engineering CaseEngineering Case Economics CaseEconomics Case MiscellaneousMiscellaneous

What is the minimum number of 1 " x 1" x 1" cubesWhat is the minimum number of 1 " x 1" x 1" cubesneeded to make a 10" x 10" x 10" cube? needed to make a 10" x 10" x 10" cube?

Assume that the overhead cost to produce a computer isAssume that the overhead cost to produce a computer is$10,000 and the variable cost is $5,000 per computer, graph the$10,000 and the variable cost is $5,000 per computer, graph the

variable cost, fixed cost, total cost and total cost per unit. variable cost, fixed cost, total cost and total cost per unit.

Why are manhole covers round?Why are manhole covers round?

•• First assume that the cube is hollow, then since each side must be 10 First assume that the cube is hollow, then since each side must be 10 inches in dimensions ten 1" x 1" x 1" cubes are needed for each side. inches in dimensions ten 1" x 1" x 1" cubes are needed for each side. However, each corner piece will have 3 sides showing, while each However, each corner piece will have 3 sides showing, while each outside non-corner piece will have 2 sides showing and each inside outside non-corner piece will have 2 sides showing and each inside piece will have only 1 side showing. Thus, we must break down the piece will have only 1 side showing. Thus, we must break down the problem into the three distinct types of pieces.problem into the three distinct types of pieces.–– Corner Pieces: Corner Pieces: A cube has 4 corner pieces per each of its 6 A cube has 4 corner pieces per each of its 6 sides. sides. Since each corner piece has 3 sides showing, only 8 Since each corner piece has 3 sides showing, only 8 cubes cubes

(4 x 6 ÷ 3) are needed to create the corners.(4 x 6 ÷ 3) are needed to create the corners.–– Non-corner outside pieces: Non-corner outside pieces: For the non-corner outside pieces For the non-corner outside pieces

a total of 8 (10 - 2 corners) are needed per direction. Thus, since a total of 8 (10 - 2 corners) are needed per direction. Thus, since there are 4 directions per side a total of 32 (8 x 4) cubes are there are 4 directions per side a total of 32 (8 x 4) cubes are

needed needed per side. Since each non-corner outside piece has per side. Since each non-corner outside piece has two sides two sides showing a total of 96 cubes (32 x 6 ÷ 2) are need to showing a total of 96 cubes (32 x 6 ÷ 2) are need to create the non-create the non- corner outside pieces.corner outside pieces.–– Inside pieces: Inside pieces: A total of 64 inside corner cubes are needed per A total of 64 inside corner cubes are needed per

side to create the inside pieces. (i.e. 100 - 4 [corners] - 32 [non-side to create the inside pieces. (i.e. 100 - 4 [corners] - 32 [non-corner outside]). Since, there are 6 sides a total of 384 cubes will corner outside]). Since, there are 6 sides a total of 384 cubes will be needed for the inside.be needed for the inside.

–– Total: Total: Thus, 488 1" x 1" x 1" cubes (8 + 96 + 384) are needed to Thus, 488 1" x 1" x 1" cubes (8 + 96 + 384) are needed to create a 10" x 10" x 10" cube.create a 10" x 10" x 10" cube.

•• Alternative Solution: Subtract the inside cubes from the volume (i.e. Alternative Solution: Subtract the inside cubes from the volume (i.e. 10 x 10 x 10 - (8 x 8 x 8)= 488 cubes).10 x 10 x 10 - (8 x 8 x 8)= 488 cubes).

So that they can't fall in.So that they can't fall in.

To provide the greatest opening width To provide the greatest opening width for the least total opening area and for the least total opening area and therefore save on material costs.therefore save on material costs.

0 1 2 3 4 5 6 7 8 9 10

00

10,00010,000

20,00020,000

30,00030,000

40,00040,000

50,00050,000

$60,000$60,000

Fixed CostFixed Cost

Variable CostVariable Cost

Fixed + Variable CostsFixed + Variable Costs

Volume (# Computers)Volume (# Computers)

$01 2 3 4 5 6 7 8 9 10

4,0004,000

8,0008,000

12,00012,000

$16,000$16,000

Total CostTotal Cost

Variable CostVariable Cost

Volume (# Computers)Volume (# Computers)

($/U

nit

)($

/Un

it)


Data Analytics CasesData Analytics Cases

Data Analytics cases will address specialized statistics, mathematics and logical Data Analytics cases will address specialized statistics, mathematics and logical knowledgeknowledge

Examples

Probability and StatisticsProbability and Statistics Likelihood EstimationLikelihood Estimation MathematicalMathematical

A red and a white die are rolled. Let event C = {5 on red die} and A red and a white die are rolled. Let event C = {5 on red die} and event D = {sum of dice 11}. The 36 outcomes have equal event D = {sum of dice 11}. The 36 outcomes have equal

likelihood. Are events C and D independent?likelihood. Are events C and D independent?

Let XLet X11, X, X22, …,X, …,XNN be a random sample from geometric be a random sample from geometric

distribution with p.m.f. f(x;distribution with p.m.f. f(x;pp) = (1-) = (1-pp))x-1x-1, x=1,2,3… What is , x=1,2,3… What is the maximum likelihood estimator of the maximum likelihood estimator of pp (derive)? (derive)?

Without finding their numerical Without finding their numerical values, which is greater, e^(pi) or values, which is greater, e^(pi) or

(pi)^e?(pi)^e?

•• Of the 36 events:Of the 36 events:- 6 are favorable to C, - 6 are favorable to C, - 2 are favorable to D,- 2 are favorable to D,- and 1 is favorable to C ∩ D. Therefore: - and 1 is favorable to C ∩ D. Therefore:

• P(C) * P(D) = (6/36)*(2/36) = (1/108) ≠ (1/36) = P(C ∩ D)P(C) * P(D) = (6/36)*(2/36) = (1/108) ≠ (1/36) = P(C ∩ D)

• Hence, dependent eventsHence, dependent events

• e^(pi)e^(pi)

• Put x = pi/e - 1 in the Put x = pi/e - 1 in the inequality e^x > 1+x (x>0)inequality e^x > 1+x (x>0)

Likelihood function is

L(p) = (1 – p)x1

-1 p(1 – p) x2

-1p…….(1-p)xn

-1 p = pN (1

- p) xi-n , 0 < p <1

Ln L(p) = nlnp + ( ni=1 x

i-n) ln(1-p) 0 < p < 1

Since we restrict p to (0, 1) , take derivative: d ln L(p) = n - ni=1

xi-n = 0

Solve for p:

P = n = 1 => M.I.E(p) = p = n = 1

ni=1 xi X

^

ni=1 xi X


Data Analytics Cases - Sample SAS Case*Data Analytics Cases - Sample SAS Case*

SAS cases are designed for data analytics candidates to test basic SAS SAS cases are designed for data analytics candidates to test basic SAS knowledge as well as approach towards datasetsknowledge as well as approach towards datasets

SAS DatasetSAS Dataset Sample ProblemSample Problem

Create a new variable, which contains the means Create a new variable, which contains the means over time for each companyover time for each company

* Fresh BA’s are not expected to have SAS knowledge. Sample case included for illustration only

Company State Year RevenueVerizon New York 1990 $100MMVerizon New York 1991 $120MMVerizon New York 1992 $130MMVerizon New Jersey 1990 $90MMVerizon New Jersey 1991 $100MMVerizon New Jersey 1992 $95MMAT&T New York 1990 $100MM AT&T New York 1991 $110MM AT&T New York 1992 $90MM SNET Connecticut 1990 $70MMSNET Connecticut 1991 $100MMSNET Connecticut 1992 $80MM

Problem Rationale

•A simple problem that would be given to anyone that claims they have experience with SAS, or those that admit to having moderate experience. There are many ways of getting to the answer, but what is critical is whether candidates start running loops over the data or use some of SAS’s in-built basic functionalities, such as PROC MEANS, SUMMARY, SORT, DATA step, etc.

• Usually, this type of a problem can be easily extended to become more involved, but this is always one of the first steps.

•This type of a question reveals how candidates think about datasets.

SAS dataset with yearly revenues by state for three SAS dataset with yearly revenues by state for three telecommunication companies telecommunication companies


If You Get In A Jam…If You Get In A Jam…

Pause to collect your thoughts. Remaining silent is better than Pause to collect your thoughts. Remaining silent is better than blurting out an incoherent thoughtblurting out an incoherent thought

Recount what you already know to the interviewer. By reviewing Recount what you already know to the interviewer. By reviewing what you know about the case, the next step often becomes more what you know about the case, the next step often becomes more clearclear

Don't give up. Interviewers are judging your poise and maturity in Don't give up. Interviewers are judging your poise and maturity in addition to your problem-solving skillsaddition to your problem-solving skills


SummarySummary

There is no single “right” answer…There is no single “right” answer…

• Force-fitting a framework Force-fitting a framework that just doesn't workthat just doesn't work

... but there are ... but there are inappropriate approachesinappropriate approaches

• Ignoring or forgetting Ignoring or forgetting important facts important facts

• Defending impractical solutionsDefending impractical solutions


Additional Resources To Consult Before Your InterviewAdditional Resources To Consult Before Your Interview

• Ace Your Case! The Essential Management Consulting Case Workbook Ace Your Case! The Essential Management Consulting Case Workbook - Wet Feet Press 1-800-926-4JOB- Wet Feet Press 1-800-926-4JOB

• Competitive AdvantageCompetitive Advantage- Michael Porter- Michael Porter

• Competitive StrategyCompetitive Strategy- Michael Porter- Michael Porter

• The Consulting Resource Packet The Consulting Resource Packet - Wharton Career Development & Placement (Packet #13)- Wharton Career Development & Placement (Packet #13)

• Harvard Business School Career Guide: Management ConsultingHarvard Business School Career Guide: Management Consulting- Harvard Business School Press 1-800-545-7685- Harvard Business School Press 1-800-545-7685

• The Ten Day MBAThe Ten Day MBA- Steven Sillbiger- Steven Sillbiger

• Case Interviews at Consulting Firms WebsitesCase Interviews at Consulting Firms Websites- - http://www.mckinsey.com/careers/apply/solveacase/index.asphttp://www.mckinsey.com/careers/apply/solveacase/index.asp

- - http://www.bcg.com/careers/interview_prep/practice_cases.asphttp://www.bcg.com/careers/interview_prep/practice_cases.asp

- - http://www.bain.com/bainweb/join/interview/practice_overview.asphttp://www.bain.com/bainweb/join/interview/practice_overview.asp

• Management Consulting On-lineManagement Consulting On-line

- - www.cob.ohio-state.edu/~fin/jobs/mco/mco.htmlwww.cob.ohio-state.edu/~fin/jobs/mco/mco.html


Sample CasesSample Cases


Special CasesSpecial Cases

The following sample cases have been compiled from Kellogg’s, Stern’s, and The following sample cases have been compiled from Kellogg’s, Stern’s, and Tuck’s Consulting Club Guides to management consulting cases. They are Tuck’s Consulting Club Guides to management consulting cases. They are intended to assist you in preparing for your case interview. The suggested intended to assist you in preparing for your case interview. The suggested approaches are by no means the only approach you could take, but rather are the approaches are by no means the only approach you could take, but rather are the ones authors of these guides thought were most appropriate.ones authors of these guides thought were most appropriate.

Case #1Case #1 Case #2Case #2 Case #3Case #3

You are visiting a new client who sells golf balls in the United States. You are visiting a new client who sells golf balls in the United States. Having had no time to do background research, you sit on the plane Having had no time to do background research, you sit on the plane wondering what is the annual market size for golf balls in the U.S. and wondering what is the annual market size for golf balls in the U.S. and what factors drive demand. Your plane lands in 15 minutes; how would what factors drive demand. Your plane lands in 15 minutes; how would you go about answering these questions?you go about answering these questions?

Why is there no light beer in the UK?Why is there no light beer in the UK? You have been called in by a Big 4 accounting You have been called in by a Big 4 accounting firm that is experiencing declining profitability firm that is experiencing declining profitability in its auditing operation. What levers would in its auditing operation. What levers would you push to help improve profitability?you push to help improve profitability?

Hypothetical ApproachHypothetical Approach•• Golf balls sales are driven by end-users. You have to determine the Golf balls sales are driven by end-users. You have to determine the

number of end-users; this will be some fraction of the total U.S. population number of end-users; this will be some fraction of the total U.S. population (say 300 million to make my math easier). First assume a uniform age (say 300 million to make my math easier). First assume a uniform age distribution and an average life expectancy of 80 years. Then assume distribution and an average life expectancy of 80 years. Then assume that only people in the ages 20-70 will be potential buyers. Thus you that only people in the ages 20-70 will be potential buyers. Thus you eliminate 30 to 80 years or 3/8 of the 300 million population. So, now you eliminate 30 to 80 years or 3/8 of the 300 million population. So, now you are down to a potential buyer pool of about 110 million. Now you might are down to a potential buyer pool of about 110 million. Now you might estimate how many people out of 10 play golf – say 4 – so now 4/10 of estimate how many people out of 10 play golf – say 4 – so now 4/10 of 110 gets you down to 44 million people who play golf. Now you have to 110 gets you down to 44 million people who play golf. Now you have to estimate purchase frequency, how many balls per month an average estimate purchase frequency, how many balls per month an average person buys (you may want to temper this “average purchase” person buys (you may want to temper this “average purchase” assumption by at least mentioning that retired people play more than assumption by at least mentioning that retired people play more than students). A good guess might be 15. So demand per month is now 15 x students). A good guess might be 15. So demand per month is now 15 x 44 million or 660 million. Finally, you need to estimate the number of 44 million or 660 million. Finally, you need to estimate the number of months per year that people play golf – 12 months in good climate months per year that people play golf – 12 months in good climate regions, maybe 5 in regions with cold winters – so on average 8 is a regions, maybe 5 in regions with cold winters – so on average 8 is a decent estimate: 8 x 660 = 5.280 million golf balls per yeardecent estimate: 8 x 660 = 5.280 million golf balls per year

Hypothetical ApproachHypothetical Approach•• Whenever you hear “declining profitability,” Whenever you hear “declining profitability,”

start with basic profitability analysis. start with basic profitability analysis. Determine whether this is a revenue Determine whether this is a revenue problem, cost problem or both.problem, cost problem or both.

Hypothetical ApproachHypothetical Approach•• This problem does not fit in common This problem does not fit in common

framework, but it can be dissected by framework, but it can be dissected by simply listing the alternative reasons for simply listing the alternative reasons for each component of the issue. Here is one each component of the issue. Here is one approach:approach:

•• The reason there is no light beer could be The reason there is no light beer could be because (1) consumers do not demand it, because (1) consumers do not demand it, (2) producers are not producing it, despite (2) producers are not producing it, despite consumer demand, or (3) some outside consumer demand, or (3) some outside influence, such as the government, will not influence, such as the government, will not permit light beer in the country. Following permit light beer in the country. Following the producer option, one can subdivide the the producer option, one can subdivide the problem as nobody wants to sell light beer problem as nobody wants to sell light beer in the UK or somehow, light beer producers in the UK or somehow, light beer producers are blocked out of the UKare blocked out of the UK


Case #4Case #4 Case #5*Case #5*

Your client is going to build a skyscraper, but is not sure Your client is going to build a skyscraper, but is not sure how many stories to make it. How should he decide?how many stories to make it. How should he decide?

The airline industry is characterized by low returns and stiff The airline industry is characterized by low returns and stiff competition. In the early years after deregulation, discount competition. In the early years after deregulation, discount carriers like People Express sprang up. Years later the carriers like People Express sprang up. Years later the discounters have gone out of business. In a price-competitive discounters have gone out of business. In a price-competitive industry, why is it that the higher-cost carriers were able to industry, why is it that the higher-cost carriers were able to survive and the low-cost ones weren't?survive and the low-cost ones weren't?

Hypothetical ApproachHypothetical Approach•• This is an economic supply/demand mind tease. Clearly you This is an economic supply/demand mind tease. Clearly you

don't want to lose money on the deal. The building will house don't want to lose money on the deal. The building will house tenants, who will pay to reside there. The costs of building and tenants, who will pay to reside there. The costs of building and maintaining the structure (both fixed and incremental by story) maintaining the structure (both fixed and incremental by story) need to be compared to revenue-generating capability of the need to be compared to revenue-generating capability of the project. When marginal revenue equals marginal cost you stop project. When marginal revenue equals marginal cost you stop adding storiesadding stories

Hypothetical ApproachHypothetical ApproachThese are some of the basic issues to be fleshed out:These are some of the basic issues to be fleshed out:•• Characteristics of discounters:Characteristics of discounters:

–– Low faresLow fares–– Limited serviceLimited service

•• Characteristics of major carriers:Characteristics of major carriers:–– Higher fares, but better coverage and serviceHigher fares, but better coverage and service–– Hub systems channeling trafficHub systems channeling traffic

•• Competitive moves by majors: Innovative use of information Competitive moves by majors: Innovative use of information technology for yield management and differential pricingtechnology for yield management and differential pricing1)1) Basically they priced every seat individually Basically they priced every seat individually

based on continuously monitoring supply/demandbased on continuously monitoring supply/demand2)2) They wooed leisure customers with fares lower than They wooed leisure customers with fares lower than

discounters and charged more from business travelers discounters and charged more from business travelers (indifferent to price but sensitive to service frequency)(indifferent to price but sensitive to service frequency)

3)3) They stole the discounters' market and forced them outThey stole the discounters' market and forced them out

Special Cases (Cont’d)Special Cases (Cont’d)

* This case is too complex for BA candidates. Included here for illustrative purposes only


Data Analytics CasesData Analytics Cases

The following sample cases have been compiled with input from Inductis The following sample cases have been compiled with input from Inductis associates and managers. They are intended to assist you in preparing for your associates and managers. They are intended to assist you in preparing for your interview. interview.

MathMath CombinatoricsCombinatorics AnalysisAnalysis

A thin membrane covers the surface of the (spherical) earth. A thin membrane covers the surface of the (spherical) earth. One square meter is added to the area of this membrane to One square meter is added to the area of this membrane to form a larger sphere. How much is added to the radius and form a larger sphere. How much is added to the radius and volume of this membrane?volume of this membrane?

n people each know a different piece of n people each know a different piece of gossip. They can telephone each other and gossip. They can telephone each other and exchange all the information they know (so exchange all the information they know (so that after the call they both know anything that after the call they both know anything that either of them knew before the call). What that either of them knew before the call). What is the smallest number of calls needed so that is the smallest number of calls needed so that everyone knows everything? everyone knows everything?

What is the longest time that a particle can What is the longest time that a particle can take in traveling between two points if it never take in traveling between two points if it never increases its acceleration along the way and increases its acceleration along the way and reaches the second point with speed V? reaches the second point with speed V?

• V = (4/3)*pi*r^3 and A = 4*pi*r^2V = (4/3)*pi*r^3 and A = 4*pi*r^2

• Need to find out how much V increases if A increases by 1 m^2Need to find out how much V increases if A increases by 1 m^2

• dV / dr = 4 * pi * r^2 dA / dr = 8 * pi * r dV / dA = (dV / dr) / (dA / dr) dV / dr = 4 * pi * r^2 dA / dr = 8 * pi * r dV / dA = (dV / dr) / (dA / dr) = (4 * pi * r^2) / (8 * pi * r) = r/2 = 3,250,000 m= (4 * pi * r^2) / (8 * pi * r) = r/2 = 3,250,000 m

• If the area of the cover is increased by 1 square meter, then the If the area of the cover is increased by 1 square meter, then the volume it contains is increased by about 3.25 million cubic meters. volume it contains is increased by about 3.25 million cubic meters.

• We seem to be getting a lot of mileage out of such a small square We seem to be getting a lot of mileage out of such a small square of cotton. However, the new cover would not be very high above of cotton. However, the new cover would not be very high above the surface of the planet -- about 6 nanometers (calculate dr/dA). the surface of the planet -- about 6 nanometers (calculate dr/dA).

• Assumptions: Assumptions: - x(0) = 0; x(0) = 0; - x(T) = X 2. x(T) = X 2. - v(0) = 0; v(0) = 0; - v(T) = V 3. v(T) = V 3. - d(a)/dt <= 0 d(a)/dt <= 0

• SolutionSolution- a(t) = constant = A = V^2/2X which a(t) = constant = A = V^2/2X which implies T = 2X/V. implies T = 2X/V.

• Proof: Proof: -Consider assumptions as they apply Consider assumptions as they apply to f(t) = A * t - v(t): 1. integral from 0 to f(t) = A * t - v(t): 1. integral from 0 to T of f = 0 2. f(0) = f(T) = 0 3. to T of f = 0 2. f(0) = f(T) = 0 3. d^2(f)/dt^2 <= 0 From the mean d^2(f)/dt^2 <= 0 From the mean value theorem, f(t) = 0. value theorem, f(t) = 0.

• 1 for n=21 for n=2• 3 for n=3 3 for n=3 • 2n-4 for n>=4 2n-4 for n>=4 • This can be achieved as follows: choose This can be achieved as follows: choose

four people (A, B, C, and D) as the "core four people (A, B, C, and D) as the "core group".group".

• Each person outside the core group Each person outside the core group phones a member of the core group (it phones a member of the core group (it doesn't matter which); this takes n-4 calls. doesn't matter which); this takes n-4 calls.

• Now the core group makes 4 calls: A-B, C-Now the core group makes 4 calls: A-B, C-D, A-C, and B-D. At this point, each D, A-C, and B-D. At this point, each member of the core group knows member of the core group knows everything. everything.

• Now, each person outside the core group Now, each person outside the core group calls anybody who knows everything; this calls anybody who knows everything; this again requires n-4 calls, for a total of 2n-4. again requires n-4 calls, for a total of 2n-4.

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