* Some useful consulting case frameworks * Own adaptations

1. ACING THE CASE
1
Listen carefully the problem
2
Understand the problem
3
Set your framework
4
Evaluate the problem using the
framework
5
Reach to a conclusion
* Take notes on important things
* Express the problem in your own words
* Take your time but think aloud so the interviewer can hear you
* Use schemes and graphics to express your case approach
* Stay organized!
* Adress issues one at time
* Adress all important issues
* Request x additional information, explaining why
* Perform important analysis
* Test your hypotheses
* Step back periodically
* Use common sense
* Watch cues for the interviewer
* Don´t lose eye contact
* Stay calm - confident

2. THREE TYPES OF CASES
BUSINESS
PROBLEMS &
STRATEGY
A
MARKET
SIZING ESTIMATIONS
LOGIC PROBLEMS
AND
BRAIN TEASERS
B
C

3. A
BUSINESS PROBLEMS & STRATEGY FRAMEWORKS
INCREASE PROFITS
INCREASE SALES
GROWTH STRATEGY
New Products (3)
* Develop
* Buy (M&A)
* Ally (Joint Venture)
New Territories (4)
* Export
* Franchise
* Joint Venture
* Subsidiary (dvlp)
* Increase Volume
* Increase Prices
* Increase Distribution
* Increase Mrktg Spend
* Increase Volume
* Increase Prices
* Increase Distribution
* Increase Mrktg Spend
AND / OR
* Pricing Strategy
4
* Cut Costs
5
* M&A Analysis
* Develop New Product
* Start New Business
1
COMPETITIVE STRATEGY
2
CORPORATE STRATEGY
3

4. Category & Competition
- CAGR Vol / Val – (maturity level)
- MS Vol / Val – (concentrtn - fragmntt)
- Profit % / Substitutes / New entrant
Current Business
Framework
Competitive
Strategy
1
PROFIT
COST
REVENUE
VARIABLE
Q = Pnt*AC
AC =Frq*CxO
P*Q
4Ps
* Product
* Price
* Promo (*)
* Place (*)
3Cs
* Customer
* Company
(Rsrc & Cpblt)
* Competition
C*Q (C = COGS)
Fully Allocated (**)
Awareness
Consideration
Trial
Repurchase
Loyalty
Advocacy
* Materials
* Manufacturing (Wages)
* Distribution / Delivery
* Marketing
* Overhead / SG&A
Suppliers bargaining power
COMPETITIVE
PERFOMANCE
FIXED
(**) Industrial company example
INTERNAL
PERFOMANCE

5. Actual product x new clients / markets
or
New product x current clients / market
New Business
Framework
2
New Product x current
clients / market
Actual product x new
clients / markets
Assess Distance
* Cultural
* Administrativ
* Geographical
* Economic
Corporate
Strategy
Market Atractivity
* Trends on…
* Size
* Growth (ML)
* Margins
* Regulation
* Supplr brgn pwr
Entry Methods (2)
Transaction
Direct Investment
Exporting
Joint Venture
Franchise
Subsidiary
Probab 2 Win
* # Compttrs - MS
* Fragmenttn
* Maturity
* Entry barriers
* Substitutes
* Customer power
Comptr Atractivity
* MS (vol – $)
* Profitability
* Rsrc & Cpblt
* Tangible
* Intangible
* Human
Buy, build or JV?
* Cost - Benefit
M&A Fit
* Sinergy (1+1=3)
* Products
* Customers
* Competition
* Rsrcs & cpblt
* Suppliers

6. Corporate
Strategy
M&A Process (in More Detail)
3
Objectives
Why buy?
Due Diligence
Analysis
Acquisition
Cost
Exit
Strategy
* Market Access
* Diversify Holding
* Preempt Compttn
* Taxes
* ↑ Shrhldr Value
* Synergies
* Market Atractivity
* Company Atractvt
* Probab 2 Win
* Compttrs reaction
* Regulation barriers
* Fair Price
* Affordability
* Integration costs
* Economic prspctvs
* Hold time
* Possible buyers
* Expctd exit ratio
* Sell whole vs parts
M&A Fit
* Sinergy (1+1=3)
* Products
* Customers
* Competition
* Rsrcs & cpblt
* Suppliers
Market Atractivity
* Trends on…
* Size
* Growth (ML)
* Margins
* Regulation
* Supplr brgn pwr
Company Atractivity
* MS (vol – $)
* Profitability
* Rsrc & Cpblt
* Tangible
* Intangible
* Human
Probab 2 Win
* # Compttrs - MS
* Fragmenttn
* Maturity
* Entry barriers
* Substitutes
* Customer power

7. Competitive
Strategy
4
Pricing Strategies
Company
Objectives
* Market Share
* Profits
Competitive
Analysis
* Market maturity
* P/S atribtts - bnfts
* Core / potential
target price sensitvity
* Compttrs prices
* Substitutes prices
Cost based
Pricing
* COGs
* Break-even point
* Profitability
Will based
Pricing
* Added value
* Willingness 2 pay

8. Competitive
Strategy
5
Ways to Cut Costs
Labor
* Cross train workers
* Cut overtime
* 4d x 10h instead 5d x 8h
* Pay decreases x levels
* Convert workers in owners
* Downsizing
Production
Finance
* Invest in tecnology
* Consolidate production space
to gain scale
* Flexible production lines
* Reduce inventories (JIT)
* Outsource 2nd activities
* Renegotiate with suppliers
* Consolidate suppliers
* Importation
* Make customers pay sooner
* Refinance your debt
* Sell nonessential assets
* Hedge currency rates

9. MARKET SHARE – REVENUE – PROFITS EVOLUTIONS
(TRICKY RELATIONSHIPS)
Revuene M share
Up
Up
Up
Up
Up
Up
=
Up
=
Up
=
Up
Down
Up
Down
Up
Down
Up
Up
=
Up
=
Up
=
=
=
=
=
=
=
Down
=
Down
=
Down
=
Up
Down
Up
Down
Up
Down
=
Down
=
Down
=
Down
Down
Down
Down
Down
Down
Down
Profit
Up
=
Down
Up
=
Down
Up
=
Down
Up
=
Down
Up
=
Down
Up
=
Down
Up
=
Down
Up
=
Down
Up
=
Down
Reason
Good performance / Ideal situation
Sales increase = market growth AND cost increases higher level than sales
Sales increase = market growth BUT cost increases signf. higher level than sales
Sales flat AND market contraction AND cost decreases
Sales flat AND market contraction AND cost stay flat
Sales flat AND market contraction BUT cost increases
Sales decrease < market contraction AND cost decreases signf. higher level than sales contraction
Sales decrease < market contraction AND cost decreases higher level than sales contraction
Sales decrease < market contraction BUT costs increases >= level than sales contraction
Sales increase < market growth AND cost decreases; stay flat or grow proportionally sales
Sales increase < market growth AND cost increases higher level than sales
Sales increase < market growth BUT cost increases signf. higher level than sales
Sales flat AND market flat AND cost decreases
Sales flat AND market flat AND cost stay flat
Sales flat AND market flat BUT cost increases
Sales contraction < market contraction AND cost decreases signf. higher level than sales contraction
Sales contraction < market contraction AND cost decreases higher level than sales contraction
Sales contraction < market contraction AND cost increases >= level than sales contraction
Sales increase sign < market growth AND cost decreases; stay flat or grow proportionally sales
Sales increase sign < market growth AND cost increases higher level than sales
Sales increase sign < market growth BUT cost increases signf. higher level than sales
Sales flat AND market growth AND cost decreases
Sales flat AND market growth AND cost stay flat
Sales flat AND market growth BUT cost increases
Sales decrease = market contraction BUT cost decreases signf. higher level than sales contraction
Sales decrease = market contraction BUT cost decreases higher level than sales contraction
Really bad performance / Bad situation
Profit expresed in absolute terms, value, not margin rates

10. B
MARKET SIZING & ESTIMATION FRAMEWORKS
Find the driver(s) related to the sizing
* Population (gas stations, newspapers, chewing gum, golf balls, etc)
* Households (piano tuners, light bulbs, garden hoses, dvv rental, etc)
* Other market (fast food market => burger machines, online fashion china
=> offline fashion china).
Break the problem into smaller pieces
Use estimations based on common sense…
* For the rates you don´t know (penetration, average spend – average
comsumption)
* [AS/ AC = frequency* (spend or consumption) x ocassion)]
Reach to a conclusion
Watch Out! Some times advice cases are market sizing cases
undercovered

11. C
LOGIC PROBLEMS AND BRAIN TEASERS
* Main goal = look how you handle an unstructured problem.
* Don´t panic, get frustrated, streesed or upset.
* Break the problem logically.
* Some formulas to remember…
Perimeters
* Square: 4a
* Triangle: a+b+c
* Circle: 2*Pi*r
* Rectangle: 2*(a+b)
Areas
* Square: a2
* Cube: 6a2
* Sphere: 4*Pi*r2
* Rectangle: a*b
* Parallelogram: b*h
* Trapezoid: h/2*(b1+b2)
* Circle: Pi*r2
* Elipse: Pi*r1*r2
* Triangle: (b*h)/2
Volumes
* Cube: a3
* Rectangle prism: a*b*c
* Cylindre: Pi*r2*h
* Pyramid: (b*h)/3
* Sphere: (4/3)*Pi*r3
* Ellipsoid: (4/3)*Pi*r1*r2*r3

12. Sources
Own adaptation of frameworks from…
http://www.casequestions.com/about.cfm
http://www.caseinterview.com/