Case Study Prep (Case In Point Ivy Case Framework) Case Scenarios 1) 2) 3) 4) Summarize the Questions Verify the

Objectives Ask Clarifying Questions Lay out your structure

Think broadly and then break down the problem into manageable components. And, think about how people, process and technology are part of the problem and can be part of the solution. Strategy Scenarios 1) Entering a New Market a. Determine the state of current market i. Size ii. Growth Rate iii. Customers iv. Barriers to entry v. Competition vi. Life Cycle (Emerging, Mature, Declining) vii. Profitability/Margins viii. Drivers (Brand, Size, Technology) b. Entering i. Yes (Cost Benefit Analysis of Each) 1. Start from Scratch 2. Acquisition 3. Joint Venture ii. No 2) Industry Analysis a. Current Market i. See Above b. Suppliers i. How many ii. Product availability iii. Supplier market c. Future i. Are firms entering or leaving the market ii. Mergers and Acquisitions iii. Barriers to Entry iv. Substitutes

Case Scenarios 1) 2) 3) 4) Summarize the Questions Verify the Objectives Ask Clarifying Questions Lay out your structure

Think broadly and then break down the problem into manageable components. And, think about how people, process and technology are part of the problem and can be part of the solution.

3) Mergers and Acquisitions a. Objectives (Why buy) i. Market Access (Boost Brand, Increase Market Share) ii. Diversify Holdings iii. Pre-Empt Competition iv. Taxes v. Synergies (Cost Savings, Cultural Integration, Distribution Channels) vi. Shareholder Values b. Acquisition Cost i. Value ii. Fair Price iii. Can we afford to pay it iv. Integration Costs c. Due Diligence Risks i. Economy ii. Market Leader iii. How secure are markets, their customers and suppliers iv. Industry overall/technology risks v. Margins vi. Competitive response d. Exit Strategy i. Hold ii. Sell 4) Developing a New Product a. Think about the product i. Special properties ii. Patent iii. Similar products iv. Product Line Fit v. Distribution Channels b. Marketing Strategy i. Existing Product Line ii. Cannibalizing Product Line iii. Will this expand the customer base

Case Scenarios 1) 2) 3) 4) Summarize the Questions Verify the Objectives Ask Clarifying Questions Lay out your structure

Think broadly and then break down the problem into manageable components. And, think about how people, process and technology are part of the problem and can be part of the solution.

5) Pricing Strategies a. Company Objectives i. Market Share ii. Profits b. Competitive Analysis i. Competitors Prices ii. Competitors Prices Compared to ours iii. Substations iv. Consumer buying habits c. Cost Based Pricing i. What does it cost to make ii. Breakeven Point iii. How much Profit Margin can we add d. Price Based Costing i. What are consumers willing to pay ii. What is it worth to them compared to other substations iii. Supply and demand

6) Growth Strategies a. Current Market (See Above) b. Growth Strategies i. Increase Distribution Channels ii. Increase Product Line iii. Increase Major Marketing Campaign iv. Diversify products and Services v. Acquire Competitors

Case Scenarios 1) 2) 3) 4) Summarize the Questions Verify the Objectives Ask Clarifying Questions Lay out your structure

Think broadly and then break down the problem into manageable components. And, think about how people, process and technology are part of the problem and can be part of the solution.

7) Stating a New Business a. Current Market (See Above) b. Cost Benefit Analysis i. Management 1. What is the management team like, experience etc 2. Core competencies ii. Marketing and Strategic Plan 1. Barriers to entry 2. Major Players iii. Distribution Channels iv. Product 1. Product or technology? 2. Competitive Advantage 3. Disadvantages v. Customers 1. Whoa re the customers? 2. How best to reach them? 3. Retain them? vi. Finance

8) Competitive Reponses a. Competitive Analysis i. Competitors New Products ii. Whats Changed iii. Have they picked up Market Share b. Responses i. Acquire Competitor ii. Merge with Competitor iii. Copy Competitor iv. Hire the competitors management v. Marketing

Case Scenarios 1) 2) 3) 4) Summarize the Questions Verify the Objectives Ask Clarifying Questions Lay out your structure

Think broadly and then break down the problem into manageable components. And, think about how people, process and technology are part of the problem and can be part of the solution. 1) Increasing Sales a. Why?? i. Profits or Market Share ii. How are we growing relative to the industry iii. Are prices in line with competition iv. What has our competition done b. Approaches i. Increase Volume ii. Increase Amount of Each Sale iii. Increase Prices iv. Season Balance 2) Reducing Costs a. Ask for a breakdown of costs b. If any costs seam out of line investigate why c. Benchmark Competitors d. Determine mix of labor, technology and strategy saving that would help reduce costs

Case Scenarios 1) 2) 3) 4) Summarize the Questions Verify the Objectives Ask Clarifying Questions Lay out your structure

Think broadly and then break down the problem into manageable components. And, think about how people, process and technology are part of the problem and can be part of the solution.

1) Improve the Bottom Line a. E(P=R-C)M Economy (Profits=Revenue-Costs) Market b. Look at Market (See above) and Economy first c. Analyze Revenues (Trends are important) i. What are the Revenue Streams ii. What % of total revenue does each stream represent iii. Anything unusual d. Examine Costs (Trends are important) i. Id Major Costs ii. Any cost shifts iii. Do costs seem out of line (overall, in competition to competition) e. Volume i. Expand into new areas ii. Increase sales force iii. Increase marketing iv. Reduce Prices v. Improve Customer Service 2) Turnarounds a. Learn about the company b. Review services, products and finances c. Secure funding d. Review talent and culture e. Determine short term and long term goals f. Business Plan g. Reassure clients, suppliers, distributors h. Prioritize goals and develop some small success for momentum

Case Study Prep (6 Hours of Videos on CaseInterview.com + Case Interview Secrets Book) Video 1: Introduction 1) Asking the Right Questions and Determining the Right Information. 2) Introduction and conclusion are formulaic; the middle is where you talents are allowed to shine. Video 2: Mindset 1) Two Types of Cases a. Business Situation Case b. Estimation Cases 2) Interviews are looking to see if they could drop you off with a fortune 500 company and will you be able to solve the problem and handle the client 3) Boiling the Ocean: Look for the right information, dont collect all the information. (Dont Boil the Ocean to Get a Cup of Water). (This was were my questioning went wrong with Deloitte Federal Practice). 4) Being Precise vs. Good Enough to Make a Decision: Do we have enough information to make an actionable precision. 5) Victor Chengs 3 Rules of Consulting a. Often right but never with out a data driven justification (thus always hedge and use words carefully, if you say something and you cant back it up you qualify, if you dont have the answer stated it with confidence) b. Always speak in a client friendly way (interviews look for a client friendly presentation). i. Drawing conclusions without showing your work is not client friendly ii. Scatter Brained is not client friendlypresent in a linear fashion, do not jump around. c. If you have an answer that cant be explained visually its not a good answer 6) Interviews Mindset a. Process Excellence vs. Specific Answer i. Wrong Answer right approach is fine, right answer wrong approach is problematic. b. Logical Data Driven Analysis that is sequential and linear to a fault sometimes c. Synthesis: Pulling things up to the big picture. (This test is always at the end, this is your conclusion, your presentation based on the introduction and middle of the interview) Video 3: Open, Analyze & Close a Case 1) Clients says _________ a. Respond, Hmmm that is an interesting problem. b. The stall gains you a few seconds to think 2) Verify your understanding of the problem and ask clarifying questions (Can I ask some background questions for clarification purposes?) 3) Structure the case for analysis To understand this customers problem we need to understand a few key issues.

4) Introduction process is: Stall, Verify, Structure. Example: ABCs profits are down by 20% what do they do. a) Hmm that is an interesting problem b) As I understand it our client ABCs profit are down by 20% and they would like to know how they can address that issue. Are their any other objectives? c) To fully understand and solve this clients problems we need to examine to key issues Revenue and Costs. (Then Draw it out) Profits=Revenue-Costs Client skill: pull in closer and present in a collaborative manner. Following the Introduction we analyze the case.which means we pull apart the problem into its pieces. PULL APART THE PIECES 1) Hmm thats an interesting problem, let me ask some clarifying questions and then brake it apart. 2) Based on these key issues and the information collected I would hypothesis that _________. (Returning to Example: ABCs profits are down by 20% we have already established that revenue and costs are two key issues we need to look, I am going to hypothesis that it is probably a revenue problem, do we have any further information about the companies revenuesHas it declined, increased or stayed the same? If so is it a trend that we have seen over the last couple of year?....Interviewer: Revenues are up.analysis or Profits are down but revenue is up, the data suggests that my initial hypothesis was incorrect, it sounds as if it is a cost problem. Do we have any information about costs? What are their fixed and variable costs etc? DO NOT JUST DIVE IN STATE ALL ISSUES WITH THE PROBLEM>>>>In the case above this would be profits breaks down into costs and revenue, revenue breaks down into up down or stayed the same. Each statement you make is a tree. Video 4: Open, Analyze & Close a Case 1) If your hypothesis is correct keep drilling down (Example: ABC Revenues have gone down, my hypothesis has been confirmed, I will go deeper. All about levels.First Level Profit Problem, 2nd level Costs and Revenue, Hypothesis (Revenue Problem), Revenue Questions that demonstrate it is a revenue problem, dig deeper into revenue) Remember to link back to central objective and continue to refine hypothesis. THINK OUTLOUD!!!!!!!!! Process Thus Far A) Ask for information where to start within the framework B) State a hypothesispick a branch within the framework C) Pursue that branch D) Continue to restate hypothesis E) DO NOT ASK OPEN ENDED QUESTIONS, ASK QUESTIONS THAT LINK TO

THE HYPOTHEISI believe this is a revenue problemrevenues up, down or stable? Down. RESTATE HYPOTHESIS: I believe that a downturn in the revenue has created the profitability problem. In order to address this problem we will need to understand the Revenue Streams, What are the revenue streams: A, B, C. Answer: A and B have remained stable but C is down dramatically. RESTATE HYPOTHESIS: Company ABC has a revenue problem, that is likely related to the downturn in C 2) Tips for Analyzing Cases a. Think Out Loud b. Use Hypothesis a lot (I think it is this, let see if I cant get some data to verify) c. Critical Components i. Company vs. Competitors (Company Specific or Industry) ii. Current Year vs. Previous Year (Find the Trend Line) iii. Segment Numbers: Break Down the Numbers (Do we have anymore details on what comprises X) iv. ASK FOR DATA: You get credit for asking the right question only if you explain why you want it Conclusion 1) Figure out whats important about what you have discovered 2) Provide Big Picture Point and Conclusion and possible COAs 3) ALWAYS STATE CONCLUSION FIRST (NOT DATA) Video 5: Matching Case Questions to Case Frameworks 1) Business Problem Categories a. Profit Lose Problems b. Business Situation c. Mergers and Acquisitions d. Supply & Demand Framework (Industry Capacity Issues, likely with high fixed industries problems) Video 6: Profit Lose STICK TO YOUR FRAMEWORK AND REMAIN CLIENT FRIENDLY ALWAYS BE CLEAR AND LOGICAL ALWAYS THINK ABOUT COPARING TO HISTORY AND INDUSTRY