Case Interviews - Readiness and Preparation

Giridharan Raghunathan

1 Case Interviews - Giridharan R

Agenda
} Introduction to case interviews
} What?
} Why?
} Types

} Guesstimates

2 Case Interviews - Giridharan R

What is a Case Interview?

Guesstimates: Sizing up an activity or opportunity

(How many cars are sold in Delhi in a year?)

Case is a situation or a
simple problem statement Business cases: Revenue or profitability impact
that needs to be (Should IKEA set-up a store in the Delhi-NCR region?)
estimated or solved

Ø Cases were first used by consulting firms for hiring

Ø Companies across sectors are increasingly preferring the case methodology during interviews

3 Case Interviews - Giridharan R

Why do companies increasingly prefer case interviews?

An MBA grad is usually MBA grads end up facing A robust first principles Case interviews check
new to the interviewer’s similar situations at work thinking approach is for this aptitude and
sector / function and cannot always rely hence expected in such attitude in the candidate
on experience to solve situations
problems

4 Case Interviews - Giridharan R

What are they testing for in a case interview?
First principles-based problem-solving Analytical and logical reasoning
1 2
ability capabilities

3 Approach over solution Fundamentals of business – Finance,

4
sales, marketing, operations, HR etc.

5 Case Interviews - Giridharan R

What kind of problems are typically asked in a case interview?

Guesstimates Business cases

1. Quantitative estimate / sizing up 1. Revenue enhancement

2. Bottom-up vs Top down 2. Profitability / efficiency improvement

3. Supply or demand problem 3. New business entry / Go-To-Market

6 Case Interviews - Giridharan R

Why are case interviews important? How are they related to real life
situations?

Assume you are a Swiggy charges its Your boss asks you to How do you go ahead?
logistics manager in customers Rs. 50 per find ways to reduce this
Swiggy. order. to make it cheaper for
the customers.

1. Guesstimate: Why does Swiggy charge Rs. 50 as delivery charge? Is this how much they incur as costs to
deliver food?

2. Business Case – Profitability improvement: Can routes be optimized to reduce cost of delivery to Rs. 45
or Rs. 40?

3. Business Case – Strategy: Is Swiggy better off outsourcing delivery to 3PL service providerslike Shiprocket or
XpressBees to reduce costs?
7 Case Interviews - Giridharan R
Agenda
} Introduction to case interviews

} Guesstimates
} Demand: Population led estimation
} Demand: Household led estimation
} Supply led estimation

8 Case Interviews - Giridharan R

Guesstimate – What is it?

Portmanteau of Guess and Estimate

Objective is to arrive at a quantitative value for a given

scenario

Arrive at an approximation not an accurate answer

Approach more important than actual solution

Information is limited yet candidates can reasonably estimate

the value in a logical and step-by-step manner
9 Case Interviews - Giridharan R
3 types of guesstimates
Guesstimate is an exercise to arrive at Approximate Quantitative Value
for a given question (or) situation

Demand: Population led Demand: Household Supply led estimation

estimation led estimation

Eg: How many soaps are Eg: How many televisions Eg: How much does a fine
sold in Delhi in a year? are sold in India in a year? dining restaurant in
Koramangala, Bangalore
make in a month?

10 Case Interviews - Giridharan R

Guesstimate Type 1
Demand: Population led estimation

Demand: Population led Demand: Household Supply led estimation

estimation led estimation

Eg: How many soaps are Eg: How many televisions Eg: How much does a fine
sold in Delhi in a year? are sold in India in a year? dining restaurant in
Koramangala, Bangalore
make in a month?

11 Case Interviews - Giridharan R

Demand: Population led estimation

Suppose you are You compete against You wish to enter You wish to evaluate How would you go
OCCO, a famous iPhone and the top- the Indian market your hypothesis about identifying the
South East Asian end mobiles of other which you believe is market by first sizing Total Addressable
manufacturer of leading brands such very lucrative. the market for Top- Market?
premium mobile as Samsung, OPPO End phones in India.
phones. and Huawei in China,
Japan and Korea.

1. A mobile phone is an individually owned product. Almost

everyone owns one.
How is this a Population
led estimation?
2. Arriving at the TAM will mean estimating the number of
individuals buying top-end phones in a year
12 Case Interviews - Giridharan R
 Approach to solving the problem (1/2)
Step 1: Restate the problem. Ensure you understand it thoroughly. Ensure the interviewer is
convinced you understand it thoroughly. Write it down in a piece of paper.

Let us now Restate the Problem

1 2 3 4
What is the product Where are you selling Who is the target What should you
in question? the product? population? estimate?

A mobile phone Everywhere in India Gender: Both male & Number of buyers of a
female top-end phone in 1 year
Not just any phone – A Not specific states /
top-end model cities Age: Probably between Not users
10 - 50
Not Value of the market
So it is priced at Rs. Economic status: High in Rs. but individual units
50,000 or more – Income / Mid to High
Confirm with interviewer if income
it is safe to assume so?
13 Case Interviews - Giridharan R
Demand: Population led estimation - Solution
Step 2: Solution

Use a top-down approach and start with the overall Indian market

Ask Confirm Analyze

Can I consider the Should I assume Okay. So let me

entire Indian the total drill down from
Market to start? population as 140 this overall number
Cr.? of 140 Cr.

14 Case Interviews - Giridharan R

Demand: Population led estimation - Solution
Step 2: Solution

Product relevant to only Upper & Upper Middle-class sections.

Ask Confirm Analyze

Is it fair to assume that As per PEW research, Okay. So now the

the product will be this section constitutes addressable market
relevant only to Upper 1.2% of the population. falls to 1.2% * 140 Cr.
& Upper Middle class? Can I assume this % to or 1.68 cr.
drill down the target
market further?
15 Case Interviews - Giridharan R
Income classification as per PEW research

Projected Daily Projected Annual

Income ($) Income (Rs.)

> $50 > Rs. 15 Lac

$20 - $50 Rs. 5 – Rs. 15 Lacs

$10 - $20 Rs. 2.5 – Rs. 5 Lacs

$2 - $10 Rs. 50,000 – Rs. 2.5 Lacs

< $2 < Rs. 50,000

Source: Pew Research Center SEC Classification

https://www.mrsi.co.in/pdf/Launch-of-ISEC-by-MRSI.pdf
16 Case Interviews - Giridharan R
Demand: Population led estimation - Solution
Step 2: Solution
However, Not everyone in these income groups maybe relevant. Eg: Children below 10 years of
age or Seniors @ 60+

Ask Confirm Analyze

Is it fair to assume that As per Census 2011, Okay. So now the

the product is relevant this section constitutes addressable market
only to those of age 10 65% of the population. falls to 65% * 1.68 Cr.
– 60? Can I assume this % to or 1.1 cr.
drill down the target
market further?
17 Case Interviews - Giridharan R
Age group wise population split basis Census 2011
Age Group Male Female Total %
0–4 62 872 000 56 038 000 118 910 000 9.21
5–9 61 499 000 56 969 000 118 468 000 9.18
10–14 65 142 000 59 682 000 124 824 000 9.67
15–19 67 223 000 60 871 000 128 094 000 9.92
20–24 63 521 000 57 356 000 120 877 000 9.36
25–29 57 272 000 53 357 000 110 629 000 8.57
30–34 50 782 000 49 250 000 100 032 000 7.75
35–39 45 318 000 44 787 000 90 105 000 6.98
40–44 41 280 000 40 497 000 81 777 000 6.33
45–49 36 602 000 35 107 000 71 709 000 5.55
50–54 30 738 000 29 016 000 59 754 000 4.63
55–59 24 403 000 23 307 000 47 710 000 3.70
60–64 19 133 000 19 288 000 38 421 000 2.98
65–69 15 198 000 16 114 000 31 312 000 2.43
70–74 11 002 000 11 723 000 22 725 000 1.76
75–79 7 703 000 8 367 000 16 070 000 1.24
80+ 4 496 000 5 161 000 9 657 000 0.75
Total 664 184 000 626 890 000 1 291 074 000 100

18 Source: Census 2011 Case Interviews - Giridharan R

Demand: Population led estimation - Solution
Step 2: Solution
However, Not everyone will purchase a phone every year. There will be a replacement cycle.

Ask Confirm Analyze

Is it fair to assume all Hence, can I assume Okay. So now the

of 1.1 Cr. already have that they replace their addressable market
a phone? phones once every 2 – falls to 1.1 / 2.5 or
3 years or 2.5 on 0.44 cr.
average?

19 Case Interviews - Giridharan R

Other similar examples of “Demand: Population led estimation”
1. How many iPhone users are there in India?

2. How many people wear glasses in India?

3. How many bottles of water are sold in India?

4. How many wrist watches are sold in Delhi every month?

5. How many soaps are sold by HUL to female population in Bangalore in

1 month?

20 Case Interviews - Giridharan R

Guesstimate Type 2
Demand: Household led estimation

Demand: Population led Demand: Household Supply led estimation

estimation led estimation

Eg: How many soaps are Eg: How many televisions Eg: How much does a fine
sold in Delhi in a year? are sold in India in a year? dining restaurant in
Koramangala, Bangalore
make in a month?

27 Case Interviews - Giridharan R

Demand: Household led estimation

Suppose you are You manufacture You wish to enter To decide the How would you go
Koyoka, an excellent Washing India and set up a capacity of this plant about identifying the
established Washing Machines and are manufacturing plant you want to size up Total Addressable
machine market leaders in to capture 10% the Indian market. Market?
manufacturer in Japan, USA and market
Japan. Europe.

1. A Washing machine is usually a household product. Most

households have only 1.
How is this a Household
led estimation?
2. Arriving at the TAM will mean estimating the number of
households buying washing machines in a year
28 Case Interviews - Giridharan R
 Approach to solving the problem (1/2)
Step 1: Restate the problem. Ensure you understand it thoroughly. Ensure the interviewer is
convinced you understand it thoroughly. Write it down in a piece of paper.

Let us now Restate the Problem

1 2 3 4
What is the product Where are you selling Who is the target What should you
in question? the product? population? estimate?

A washing machine Everywhere in India Households: Both rural Number of buyers of a

and urban Washing Machine in 1
Price point isn’t Not specific states / year
mentioned. So, it can be cities Economic status:
any type – Confirm with Middle to high incomes Not users
interviewer if it is safe to Not Rural / Urban
Not Value of the market
assume so?
in Rs. but individual units

29 Case Interviews - Giridharan R

Demand: Household led estimation - Solution
Step 2: Solution
Use a top-down approach and start with the overall Indian market but at household level

Ask Confirm Analyze

Shall I start with the If I assume it to be 140 Okay. So total households in

entire population of the Cr. and average India are 140 Cr. / 5
entire Indian Market? household size as 5, Total = 28 Cr.
would I be going in the
right direction?

30 Case Interviews - Giridharan R

Demand: Household led estimation - Solution
Step 2: Solution
Product relevant to only Mid to High income groups

Ask Confirm Analyze

Is it fair to assume that As per PEW research, Okay. So our target

the product will be this section constitutes Households will drop to
relevant only to mid to 6% residents. Shall I 6% * 28 Cr. or 1.7 cr.
high income groups? assume this source?

31 Case Interviews - Giridharan R

Income classification as per PEW research

Projected Daily Projected Annual

Income ($) Income (Rs.)

> $50 > Rs. 15 Lac

$20 - $50 Rs. 5 – Rs. 15 Lacs

$10 - $20 Rs. 2.5 – Rs. 5 Lacs

$2 - $10 Rs. 50,000 – Rs. 2.5 Lacs

< $2 < Rs. 50,000

Source: Pew Research Center SEC Classification

https://www.mrsi.co.in/pdf/Launch-of-ISEC-by-MRSI.pdf
32 Case Interviews - Giridharan R
Demand: Household led estimation - Solution
Step 2: Solution
However, Not everyone in these income groups maybe relevant.

Ask Confirm Analyze

Is it fair to assume that Is it fair to assume that Okay. So our target

not everyone uses a only 80% use a Households will drop to
washing machine? washing machine? 80% * 1.7 Cr. or 1.36 cr.
Maybe the others use
maids or wash clothes
themselves
33 Case Interviews - Giridharan R
Demand: Household led estimation - Solution
Step 2: Solution
However, Not everyone in this set is going to buy a washing machine every year

Ask Confirm Analyze

Washing Machines are So shall I assume the useful Okay. So our market size
typically purchased life to be 10 years? i.e. once is 1.36 Cr. / 10 or 13.6
once in a few years in 10 years these 1.36 Cr. lacs.
basis their life. Correct? Households replace their
machines.

34 Case Interviews - Giridharan R

Demand: Household led estimation - Solution
Step 2: Solution
We want to target 10% Market Share and hence build appropriate capacity.

Ask Confirm Analyze

For now we need to For simplicity sakes, let me Okay. So capacity required
target 10% of the assume that the market size is 13.6 lacs / 10 or 1.36
market. Correct? is stagnant i.e. no new lacs.
customers are getting added
every year. Okay

35 Case Interviews - Giridharan R

Other similar examples of “Demand: Household led estimation”
1. How many Sofas are sold in the city of Jaipur in 1 year ?

2. How many dogs are adopted in Chennai in 1 year?

3. How much water is consumed in Kolkata in a day?

4. How many cars are sold by Maruti Suzuki in Mumbai in 1 month?

5. How many toothpastes are purchased by Indians in a year?

36 Case Interviews - Giridharan R

Guesstimate Type 3
Demand: Supply led estimation

Demand: Population led Demand: Household Supply led estimation

estimation led estimation

Eg: How many soaps are Eg: How many televisions Eg: How much does a fine
sold in Delhi in a year? are sold in India in a year? dining restaurant in
Koramangala, Bangalore
make in a month?

37 Case Interviews - Giridharan R

Demand: Supply led estimation

Suppose you are a You wish to set-up You are evaluating if One of your friends How would you go
young entrepreneur an excellent fine it is a good suggests you first about determining
who wishes to set- dining restaurant in a investment or not. determine how the monthly
up his own happening location in much can you earn revenues?
restaurant business. Mumbai. in a month.

1. A restaurant’s earning ability is limited by the number of guests it

can serve in a day / month.
How is this a Supply led
estimation?
2. Number of guests that be served is determined by the restaurant’s
seating capacity and how long they are open for?
38 Case Interviews - Giridharan R
 Approach to solving the problem (1/3)
Step 1: Restate the problem. Ensure you understand it thoroughly. Ensure the interviewer is
convinced you understand it thoroughly. Write it down in a piece of paper.

Let us now Restate the Problem

1 2 3 4
What is the product/ What are the supply Is there a frequency Will supply vary due
business in question? constraints? element? to other factors?

A restaurant Seats Yes: Time taken by Yes

customers to complete
Fine dining restaurant. Timings – Open & close meal Weekdays vs Weekends
So, it will be priced at a
premium to its Other modes of
Time of day – Mealtimes
customers. customer service –
vs non-mealtimes
Home delivery, Online
ordering

39 Case Interviews - Giridharan R

Demand: Supply led estimation - Solution
Step 2: Solution

Start by determining seats in the restaurant, open and close timings

Ask Confirm Analyze

Restaurant’s ability to How many seats does the Okay. So 12 hours of

generate revenues is restaurant have and what operation and a
dependent on specific are its operating timings? maximum seating
operating parameters. capacity of 100
Ask the interviewer for Interviewer says – 100 seats customers at a time.
them. & 11AM to 11PM
40 Case Interviews - Giridharan R
Demand: Supply led estimation - Solution
Step 2: Solution

Check if the restaurant earns revenues outside of dine-in – eg: say food delivery

Ask Confirm Analyze

Does the restaurant Assume interviewer says only Analysis will only be for
offer the dine in, pick- dine in. dine-in case – i.e.
up and delivery So to calculate restaurant’s restaurant serving its
services? revenues we only need to guests in its premises.
calculate dine-in revenues.
Correct?
41 Case Interviews - Giridharan R
Demand: Supply led estimation - Solution
Step 2: Solution

Customer footfall varies due to Meal timings, day of week, duration of meal

Ask Confirm Analyze

Shall we now calculate To calculate total, we would So ideally total customers

number of customers visiting need table occupancy in a day = Average
in a day? statistics. Customers served customers per hour *
at any point in time and operating hours
duration of their stay.
Correct?
42 Case Interviews - Giridharan R
Demand: Supply led estimation - Solution
Step 2: Solution

Weekday customers served.

Ask Confirm Analyze

Make some assumptions for Peak timings – Lunch (12 to 3PM), Weekday customers = Lunch
occupancy and confirm with Dinner (7 to 10 PM) (3 hrs * 1 per hour * 100
interviewer. Make modifications seats * 50%) + Dinner (3 *
Occupancy at 100% for peak and 20% 1 * 100 * 100%) + Non-Key
basis suggestions. for non-peak
(6 * 1 * 100 * 20%) = 570
Weekdays lunch at 50% only
Assume customers eat for 1 hour
43 Case Interviews - Giridharan R
Demand: Supply led estimation - Solution
Step 2: Solution

Weekend customers served.

Ask Confirm Analyze

Make some assumptions for Peak timings – Lunch (12 to 3PM), Weekend customers = Lunch +
occupancy and confirm with Dinner (7 to 10 PM) Dinner (6 hrs * 1 per hour * 100
interviewer. Make modifications seats * 100%) + Non-Key (6 * 1 *
Occupancy at 100% for peak and 20% 100 * 20%) = 720
basis suggestions. for non-peak
Weekdays lunch at 50% only Total weekly customers =
Assume customers eat for 1 hour 570 * 5 + 720 * 2 = 4,290
44 Case Interviews - Giridharan R
Demand: Supply led estimation - Solution
Step 2: Solution

Extend weekly customer footfall to month

Ask Confirm Analyze

Can we consider if the same Assume the interviewer says yes. So a Total monthly customers = # of
average footfall numbers will month has 4.33 weeks (30.5 days). weeks / month * weekly
extend throughout the year. i.e. Confirm if this is good to go. customers = 4.33 * 4,290 =
seasonalities due to festivals / ~18,600
holidays do not make an impact.

45 Case Interviews - Giridharan R

Demand: Supply led estimation - Solution
Step 2: Solution

Convert volume to value. Average price per meal per customer

Ask Confirm Analyze

Average bill value in a fine dining Assume the price per meal is Rs. 1,000. Total monthly revenue = Monthly
restaurant is higher as it is a Check with the interviewer if this is customers * Price per meal =
premium experience. reasonable. 18,600 * 1,000 = ~Rs. 1.86 Cr.

46 Case Interviews - Giridharan R

Other similar examples of “Supply led estimation”

1. How much does the local barber make in a month?

2. How many orders does a Zepto delivery boy deliver in a day?

3. How many shirts does Amitabh Bachchan have in his wardrobe at home?

4. How much money does Indigo make in Delhi-Bangalore flights in a year?

5. England cricket team visits India for a 3 match T20 series. All matches are
played at the cricket stadium in Kochi, Kerala. How much money would India
make in selling tickets for the match?
47 Case Interviews - Giridharan R