Case Workbook

Copyright © 2005 Accenture All Rights Reserved.

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Table of Contents

What is a Case Interview? 3

The Case Interview Process 5

“Soft” Evaluative Criteria 11

Types of Case Interviews 12

Sample Frameworks and Applications 21

Practice Cases 22
What is a Case Interview?

A case interview is a type of job experience. Case interviews typically

interview, used most frequently by last from thirty to forty-five minutes
strategy consulting firms, that allows and an applicant can expect to have
an applicant to demonstrate his/her several in the interview process at any
ability to solve a given business given firm.
problem. During a case interview, an
interviewer presents a situation or Your success in a case interview will
case and then asks the applicant to not depend on identifying the “correct”
explore the underlying causes of the answer, but rather on how clearly you
problem and suggest recommenda- define the problem, how logically you
tions to remedy the problem. The structure your analysis, and how well
cases given tend to be real business you communicate your thoughts to the
situations, often drawn from the interviewer.
interviewer’s actual project

Strategic consulting firms are looking The purpose of this guide is to

for intelligent people who can familiarize you with the process of a
approach business situations in an case interview, introduce you to some
analytical fashion, think under potential methodologies, and provide
pressure and maintain a professional you with sample cases to practice.
presence with clients. A case Learning about case interviews is also a
interview provides excellent insight helpful means to determine if strategic
into how well you would perform in consulting is right for you, as these
a strategy consulting situation. cases reflect the types of business
situations and structured thinking
strategy consultants encounter on a
daily basis.

3
 Common Misconceptions About Case Interviews

There are many misconceptions about the case interview and what
the interviewer is looking for.

Myth Fact
• There is one right answer or • Usually there are several
approach to the case credible approaches and
• The interviewer expects you to solutions
get the right answer • The interviewer expects a
• Industry knowledge is required to thoughtful, structured response
do well on the case • The interviewer expects you to
be effective with the
knowledge you have and make
hypotheses based on sound
common sense

Case Interview Success Factors

Case interview success depends on providing a thoughtful and
structured response to the case problem.

• Understand the case situation and • Listen for suggestions and hints
what is being asked from the interviewer
• Analyze the case issues and potential • Engage the interviewer - it is
solutions in a structured manner okay to ask for direction and
• Make certain your thought processes clarification
are transparent to the interviewer • Manage time effectively -
• Be creative, yet practical - use your maintain your momentum, don’t
business judgment and give specifics get bogged down on one point

4
The Case Interview Process: Structured Problem Solving

Listen to Clarify Decompose State Test Summarize

Case Problem Problem Hypotheses Hypothesis Findings

The process of a case interview After you lay out the framework for
parallels that of a consulting the interviewer, you should discuss
engagement. First, you will be given the analyses you would perform to
a description of a case problem by determine potential solutions to the
the interviewer. This description business problem. The interviewer
may be as short as one sentence or may ask you to perform simple
as long as a page of detailed analyses to test your hypotheses.
information. Once given the case Finally, you should summarize your
description, you will need to methodology with any
understand the problem by asking recommendations you may have.
well-thought out questions of the
interviewer. The answers to these
questions should allow you to
develop an approach (framework)
that you can use to analyze the
situation.

5
Clarify the Problem

Listen to Clarify Decompose State Test Summarize

Case Problem Problem Hypotheses Hypothesis Findings

Goal: Articulate Key Case Problem

Activities:
• Ask clarifying questions
• Probe for additional information
• Assess case facts
• Pause to structure your thinking
• Summarize issues for discussion

In consulting, understanding the Based on your questions, the

client situation is fundamental to interviewer will often provide you
developing solutions to important with more details about the case. By
problems as well as recommenda- structuring your questions, you will
tions for how a business could be run cue the interviewer to how you plan
more effectively. A case interview to work through the problem. It is
models this by presenting you with important to be flexible in your
information, asking you to make approach and open to multiple
sense of it, and develop potential solutions. If the questions you are
solutions. Clarifying the nature of asking do not yield useful answers,
the business issue (e.g., declining try switching to an alternate
profitability, loss of market share, or approach. Remember, you are being
new competitive threats) is an partially evaluated on your ability to
important step. ask insightful questions.

6
Decompose the Problem

Listen to Clarify Decompose State Test Summarize

Case Problem Problem Hypotheses Hypothesis Findings

Goal: Identify Root Causes of Problem

Activities:
• Break the problem into its component parts in
a structured manner

Once you have stated and clarified the To develop a good issue tree, you
problem, you need to decompose it in should ensure that the sub-
an exhaustive, logical manner. By components are linked in a logical
using an issue tree, you can break the manner, that it prioritizes the issues,
problem into smaller pieces and and that it reveals possible solutions.
illustrate logical relationships among Also, each branch of the tree must not
the component parts. overlap with another (mutually
exclusive), and the branches should
Basic issue trees are structured as thoroughly represent contributing
follows: elements (collectively exhaustive).
...
Issues/Causes .
(e.g., declining
Problem revenues) ...
(e.g., declining .
...
profitability) Issues/Causes .
(e.g., increasing
costs) ...
.

7
State Hypotheses and Develop Framework

Listen to Clarify Decompose State Test Summarize

Case Problem Problem Hypotheses Hypothesis Findings

Goal: State Hypotheses/Potential Solutions

Activities:
• Review problem decomposition
• Identify potential hypotheses/solutions
• State your assumptions
• Choose appropriate framework to test hypotheses (See
“Sample Frameworks and Applications” section) for example:
− Porter’s Five Forces
−Profitability Analysis
− 4 P’s of Marketing
−Three “C’s”
• Use sketches - Graphics can be a powerful tool

Once you are confident you

understand the problem, you should
list out potential hypotheses that may
resolve the core problem. You will
then need to choose a framework (or
analysis tool) to structure your
hypotheses (see “Sample Frameworks
and Applications” section), but do not
feel constrained by these since many
cases will not fit neatly into one of
those frameworks. The framework is
a key to structured thinking - it
allows you to approach a problem in a
holistic manner, while directing your
analysis to each of the components
within the framework.

8
Test Hypotheses

Listen to Clarify Decompose State Test Summarize

Case Problem Problem Hypotheses Hypothesis Findings

Goal: Apply framework to Test Hypotheses

Activities:
• Describe analyses to be applied
• Break problem into its component parts in a
structured manner
• Apply framework and discuss findings/implications
to solution definition
• Probe for concurrence/additional information
• Present hypotheses for future testing/discussion

Once a framework is selected, you If you find that your analyses are not
must analyze each component of the confirming your initial hypotheses,
framework in a logical manner. develop new ones. If your analyses
Discuss the analyses you would do not appear to be enlightening, the
perform to determine if your initial interviewer may direct you towards
hypotheses are true. You may have another path. Take advantage of
to ask additional questions of the these hints if they are offered.
interviewer to get the information
needed to develop these analyses.
Often times, you may be asked to
perform an analysis with simple data
supplied by the interviewer.

9
Summarize Findings

Listen to Clarify Decompose State Test Summarize

Case Problem Problem Hypotheses Hypothesis Findings

Goals: Summarize Findings/Implications

Activities:
• Succinctly remind interviewer of issues
covered
• Present solutions
• Present alternative scenarios

Finally, summarize the framework

and analyses you utilized in the case.
Suggest recommendations for the
client and potential next steps the
client should take. The interviewer
may tell you what happened with
the real project situation on which
the case was based. However, don’t
worry if your methodology or answer
did not match the real project
situation because you are being
evaluated on your thought processes
and not against some predetermined
answer.

10
 “Soft” Evaluative Criteria

In addition to your ability to ask probing questions, create frameworks,

and develop analyses in the case, you will also be evaluated on many
intangible qualities. While interviewers look at these criteria in non-case
interviews as well, you will need to be extra-conscious of them in a case
interview, since often times your concentration will be on solving the case.

• Poise • Flexibility
- Are you confident in your - As situations change and new
answer? How do you handle information becomes available,
yourself when you make a are you able to adapt your
mistake? Do you perform well thinking to new data or an
under pressure? emerging environment?
• Communication • Friendliness/Attitude
- Are you articulate in - Will clients and coworkers
communicating your thought enjoy spending long hours with
processes and conclusions with you?
others? • Other Intangibles
- To be a successful consultant, - Do you display energy and
you must be able to clearly drive? Do you show initiative?
communicate your
recommendations and - Do you manage time
articulate how you were able effectively? Do you
to arrive at your conclusions demonstrate decisiveness? Do
you convey a genuine interest
in the career and the firm?

11
Types of Case Interviews

There are three general types of cases:

“The Great “The Parade “The Back

Unknown” of Facts” of the Envelope”

• Provides very little • Provides a significant • Provides little

information amount of detail - some information, but asks
unnecessary a key question
• Tests candidate’s
ability to probe for • Tests candidate’s ability • Tests a candidate’s
additional details to distill key issues analytic abilities
• Requires structuring • Requires depth of • Requires logical
framework based on analysis based on thought process and
new facts relevant facts ease with numbers

The “Great Unknown” and “Back of

the Envelope” cases are the most
common types of cases. However,
regardless of the type, be sure you
have a solid understanding of the
facts and what is being asked of you
before you begin to “crack” the case.

12
“The Great Unknown” Cases

One of the most common types of case Problem Decomposition:

interviews poses the situation in one or Identify and prioritize root causes of
two sentences, leaving you with little the problem by breaking the problem
information or structure on which to down into its component parts. An
build. These cases are used often issue tree is a valuable tool to ensure
because they test your ability to that decomposition is exhaustive and
discover necessary facts by posing the that the sub-components are linked
right questions and being able to together in a logical manner.
develop analytical frameworks to solve
Problem Understanding:
the problem.
Consider the central problem. What
Potential Methodology: additional facts do you need to fully
clarify this problem? What are the
Case Description: crucial pieces of information that
Listen carefully and determine the will allow you to develop a
central business problem being asked. framework around this problem?

Write those questions out and ask out. Describe the factors in each
the interviewer. Be prepared to go section of the framework that are
several layers deeper into the issue relevant to the central problem. Also
as the interviewer’s answers may list out analyses to test the
lead you to additional questions. hypotheses in each section of the
framework. By asking additional
Hypothesis and Framework questions, you may still yield more
Development: information about the case from the
Describe to the interviewer what interviewer.
some of the potential issues/
hypotheses could be. Then choose a Case Summary:
framework that will structure your Review your initial issues/hypotheses
thinking and guide you through in light of your structured analyses
testing the issues/hypotheses. and suggest possible recommenda-
tions for the client.
Hypothesis Testing:
Using the framework selected, explore
the issues/hypotheses initially laid
13
 “The Great Unknown” Case Example

Interview Example: Potential Methodology:

• The client, a leading manufacturer of • Problem Understanding:
prefabricated kitchen furnishings, has - Has the size of the market
been steadily losing market share over changed in the last two years?
the last two years. - Has the competitive structure
• The senior executive team would like of the industry changed?
you to help them understand why and Mergers and Acquisitions?
what they can do to improve their New Entrants?
market standing. - Are there any new products or
new technologies that are
gaining market share?
- How are we currently
positioned (low cost, high
quality, etc.)? What is our
competitive advantage?

• Structure Analysis: • Develop Recommendations:

- Determine the framework that - Discuss how the company could
is best suited for this case (see reverse the loss of market share
sample frameworks, page 20.) (e.g., new market positioning,
- Based on information received cost reduction programs, vertical
from asking questions, explore integration strategy, etc.)
the different possibilities of
why the company may be losing
market share (e.g., high cost
structure relative to
competition, substitute
products threaten our market,
etc.)
14
“The Parade of Facts” Cases

These cases are relatively rare Consultants are often faced with a
because of the amount of time deluge of details, and the ability to
sort out the crux of a problem is a
necessary to present the case
key skill for which firms are looking.
description, but can also be one of
the more challenging types of While most of our process steps are
questions. You will be given more similar to “The Great Unknown,” how
information than you need in the we understand the central issue and
case description, and one of your key probe for insight differs:
tasks is determining which facts are
relevant to the client’s business
problem.

Potential Methodology:
Problem Understanding:
Pause for a moment and consider
the central problem.

Which of these facts are totally

irrelevant? Eliminate
them for now. Which facts are
definitely related to the problem?
Ask questions about facts that
appear relevant. Probe for additional
facts that the interviewer may have.

15
 “The Parade of Facts” Case Example

Interview Example:
• Client is a leading food company that • Nitrogen gas flushing is used to extend
wants to develop a fresh prepared meal shelf life
business
• Product is currently in limited consumer
• Trend among consumers is toward test at $5.50 to $8.50 per meal
fresher food with no artificial
• Shelf life of product is 14 days - product
preservatives or coloring
will spoil in 21 days potentially causing
• Consumers are currently purchasing food poisoning
$5.0 billion of frozen meals - trend is
• Client wants to know if they can make
toward more upscale products
money in this business
• A fresh meal plate combining a protein,
• Client wants to know if the market is big
vegetable and starch is delicately
- how will they keep competition out
arranged in a sealed plastic dome
package • Client wants a consultant to assist in
building business case

16
 “The Parade of Facts” Case Example

Potential Methodology:
• Key Problem: Profitability of Business 1. Determine Gross Margin
and Size of Market per Unit
• Problem Understanding: 2. Determine fixed costs
− Ask about consumer test. What 3. Divide to find break-
prices are consumers responding even
to? Are there any items spoiling − Estimate the size of the market
on the shelf? (a case within a case.)
− What is the competitive − Determine the market share
structure of this market they will need to break-even.
currently?
• Develop Recommendations:
− What are the components of the
company’s cost structure? − Discuss the competitive
structure of the market. Can
• Structure Analysis: the firm realistically achieve
− What is the break-even point for the break-even market share?
the firm?

17
“The Back of the Envelope” Cases

“The Back of the Envelope” questions There are often several different
are very different from other types of ways to approach these problems,
cases in that they are primarily and all of them are correct as long as
numerically driven. You will be asked they are internally consistent and
to estimate the number of some holistically structured to arrive at a
everyday item in society. The logical answer.
interviewer is not looking for a
random guess, but rather a Problem Understanding:
structured thought process to get to Rather than asking probing
a numerical answer. These types of questions, take a moment to think
about the steps you would need to
questions not only test your comfort
take to get to an answer. What
level with numbers, but also force assumptions will you have to make
you to create your own framework to along the way?
develop a numerical answer.

Framework Development Don’t be afraid to make too many

and Numerical Analysis: assumptions, but be certain that
they are needed and that you can
Walk the interviewer step-by-step explain why you are making that
through your framework, calculating assumption. Often, you will hit a
the numbers for him as you go. You “dead end” in your thinking. If you
will need to begin with some find yourself in a situation where
assumption about the population (of you don’t know how to proceed, you
people, objects, etc.) and will need to should back up several steps in your
make other assumptions at certain analysis (make sure you
points throughout the case. communicate this to the interviewer)
and pursue an alternative path.

18
 “The Back of the Envelope” Case Example

Interview Example: − Estimate the average number

of “units” of clothing each man
• Estimate the total number of dry and woman brings weekly to
cleaners in Philadelphia the cleaners. For this case,
assume that 3 shirts/blouses
Potential Methodology: and 1 suit are brought to the
• Assume there are two million people cleaners each week
in Philadelphia − Thus the total size of the
market (per week) is one
• Estimate the size of market by
million units of clothing
segmenting the population
(1 million people x 25% x 4
− Assume the population consists units per person)
of 25% adult men, 25% adult
women, and 50% children
− Assume children have no dry
cleaning and only 25% of
adults use dry cleaning

• Estimate the average number of • Divide the total market size by the
units a dry cleaner can handle per average units handled per dry cleaner
week to find the total number of dry
− Assume that the average dry cleaners
cleaner has two workers who − There are between 208 and 312
typically handle 20 - 30 dry cleaners in Philadelphia
customers (or 80 - 120 units of
clothing) per hour
− If the average dry cleaner is
open eight hours a day, 5
days/week, they typically
handle 3200 - 4800 units per
week (80 - 120 units x 8 hours
x 5 days)

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Sample Frameworks and Applications

In the preceding section we outlined issues or problems that can be presented

several types of case “formats” you are within a case interview and oftentimes
likely to encounter throughout the numerous business problems will be
interviewing process. However, this combined within one case situation. The
doesn’t describe the actual content of following frameworks are not exhaustive
cases or the problems and issues you but are provided as a guide to get you
will be asked to consider. There are started thinking about how to solve
many different categories of business different types of case problems.

Business Issue Potential Framework

Volume
Profitability
Revenue
Price
Profitability
Fixed
Cost
Variable

Products

Market Expansion Current New

New Market Product

Penetration Expansion
Markets
Market
Diversification
Current Development

Competitive Analysis • 3 C’s • SWOT

− Customer − Strengths
− Company − Weaknesses
− Competition − Opportunities
− Threats

• Opportunity Assessment Porter’s

Potential Entrants
Five
− Product (e.g. new product launch) Forces
− Business unit
− Overall market
− Asset valuation/maximization Suppliers Industry Competition Buyers

Substitutes

Marketing Strategy • 4 P’s

− Product − Promotion
− Price − Place
20
Putting it Together

The interview process we have Remember, there will always be

outlined will help you structure your multiple methodologies and
thinking and the “types” of cases we frameworks that can be used
have suggested will help you orient successfully to approach a solution
yourself to the different way in and you will work more effectively if
which information may be presented. you choose a framework you are
comfortable with.
In addition, the types of business
issues and corresponding solution
frameworks provided on the
preceding page will help you
determine how to analyze the
situations given.

Building and Refining Skills

One of the best ways to prepare for
case interviews is by practicing them.
Some suggestions for sharpening skills
include:
• Rehearse before your first
interview
• Think through potential types of
business problems and applicable
frameworks
• Practice cases with friends
alternating between various
styles and cases
• Refine your skills throughout the
recruiting process

21
 Practice Cases

“The Great Unknown” Sample Cases

• A major furniture retailer has • A car company is interested in
experienced declining profits for four developing a new car. What
quarters, yet over that same time marketing related issues should it
period, it has experienced a 25% consider before doing so?
growth in sales and has opened many • What factors influence the revenue
new stores. Why are profits declining? potential of a new pharmaceutical
• A fast food company is thinking about product?
putting a franchise in an airport. They • Citibank is considering purchasing
hire you to see if they should do so. another credit card company. If the
• A bread division of a large food acquisition is made, Citibank will
company is facing increasing gain access to 100,000 new card
competition in its market and wants to holders. What is the estimated
know if it should exit the market. value of this acquisition?

• A commercial bank is re-evaluating

the number of branches it operates,
and whether they should increase
the number of branches or close
some down. How would you suggest
they go about it?
• A large conglomerate company is
facing declining profits in its railroad
company division and is considering
shutting it down. You have been
hired to determine if this is the right
course of action and identify
potential alternatives.
• New York City has hired you to
determine what optimal route or
what destination taxi drivers should
go to when they do not have a
customer.

22
 Practice Cases

“The Back of the Envelope” Sample Cases

• How much money could Continental • Estimate the change in the price of
Airlines save by giving customers 1/2 a oil in the year 2010 from today’s
can instead of a whole can of Sprite? price. Will it increase or will it
decrease?
• What is the estimated value of a taxi
medallion in New York City? • Estimate the number of attendees for
a free concert for U2 in Central Park
• Discuss what is wrong with the in New York City.
following statistic: the Volvo is the
safest car on the road because a recent
study has shown that Volvos have the
fewest number of accident deaths per
mile driven.

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All rights reserved.
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23
Copyright © 2005 Accenture All Rights Reserved.