GSB_Chicago_2005-06.doc

Casebook
2005 – 2006

The Reference Guide to
Practicing Consulting Case Interviews

Ó1995 – 2005 by the University of Chicago Graduate School of Business Management Consulting Group, Chicago, IL. All rights reserved. No part of this book may be reproduced in any form or by any means, without permission in writing from the publisher.
From the University of Chicago Casebook Editor:

The cases in this Case Book seek to address the multiple skills needed to succeed in the case interview.

I do not believe that there are any easy or difficult cases, i.e. I do not believe that success in a case interview depends on “the level of difficulty” of the case. Rather each individual case should be viewed as equally important and as its own individual lesson.

The basic elements that will be evaluated in a case interview are:
§ Ability to structure a problem
§ Analytical, quantitative and problem solving skills
§ Ability to effectively communicate the analysis
§ Ability to synthesize and summarize the analysis to arrive at recommendations

However, these are necessary but not sufficient to “crack” the case interview. In addition to getting the case right, an important goal of the case practice sessions is for both the interviewer and candidate to develop and refine relationship building skills within the time constraints of the case interview. In an ideal interview, the interviewer should enjoy the case discussion. This is only possible if you are relaxed and have fun during the case. Make sure you do that!

The first step towards case preparation is to get comfortable with different frameworks (3Cs, 4Ps, Profitability analysis, Porter’s 5 Forces, Value Chain, etc). Rather than looking for a quick-fix approach of getting all these frameworks at one place, I would encourage you to explore and build your own tool-kit of frameworks. Apart from frameworks, it is also useful to develop a business sense in terms of identifying key success factors and value drivers for companies in different industries and with different market positions. Reading Standard & Poor industry reports (available on the school website) is helpful for this.

At the second stage, it is then important to get comfortable with the case interview process and the different types of cases. Discussing the mini-cases in the case book with other students will facilitate this.

At the final stage, it is important to role-play and practice cases with one student playing the role of the interviewer and the other student solving the case as an interviewee. You should form a core study group of 4-5 students with complementary backgrounds and strengths. It is not easy to give cases – the person playing the role of the interviewer needs to be very comfortable with the case prior to the case practice. The cases in this Case Book are not supposed to demonstrate the only right way of doing the particular case and the sequence of discussion during the actual case practice sessions may vary – the case giver needs to have this flexibility while knowing when to guide a candidate who is going down the wrong path. Finally the case giver also needs to be very aware of the dimensions on which to evaluate the candidate, and be able to give actionable and precise feedback. The “Case Giver Feedback Sheet” in the Case Book helps do this in a structured manner. Study groups may find it relatively effective to divide the cases and have interviewers specialize in giving three or four of the cases.

Lastly, please take a moment to appreciate all the significant time and energy that students from the class of 2006 put into writing the cases for a new University of Chicago Casebook.

Remember, have fun with the process. If you do not enjoy solving cases, you may not enjoy being a consultant!

Good luck!

Sukeert Shanker

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Table Of Contents

1. COMMON “FIT” QUESTIONS (Erin)
2. MINI CASES (Dror)
3. RICHARD’S SCANDINAVIAN HEADBANGERS (Rajesh)
4. OLEG’S HEALTHCARE (Erin)
5. STEVEN’S MIRRORING DIVISION (Dror)
6. JAIRAJ & KUMAR’S MEDICAL DEVICES CO. (MT)
7. OHAD’S TOMATO SALES (Erin)
8. PAL’S TECHNOWIZ SEMI (Rajesh)
9. THE VAN FOSSEN MOUNTAINTOP SKI RESORT (Eddy)
10. KAPIL’S UPSCALE DEPOT (MT)
11. HOLZMAN’S ONLINE TRAVEL (Dror)
12. PATRICE’S NATIONAL LOTTERY (Erin)
13. SUKEERT’S HOURGLASS CO. (MT)
14. COULEMBIER CAR REPAIR (Rajesh)
15. JESS CAPITAL PARTNERS (Dror)
16. ANDREW’S METROPOLIS ART INSTITUTE (Erin)
17. EDDY’S OIL COMPANY (Eddy)
18. ROBERT’S TAXI CAB (Dror)
19. SAUMIL BIOTECH INC. (Rajesh)
20. BERRY SCANTECH LASER (Sukeert)
21. MR.CHOPRA’S GOLF APPAREL (Sukeert)
22. ELECTRIC SHVETA (Sukeert)
23. AJ VONG’S CHINESE RESTAURANT (Sukeert)
24. VIVIAN’S VIDEO RENTAL
25. KUNAL’S AUTO PARTS
26. HAUFMANN’S PAPER
27. S&S CLOTHES MANUFACTURING
28. SUBRAMANYAN-SANOFI PHARMACEUTICALS

CASE GIVER EVALUATION SHEET

Key:

√ : Needs significant improvement
√√ : Good base to improve on

√√ √ : Excellent

√√√ √ : OUTSTANDING!

Structure & Framework
­ Mutually Exclusive, Collectively Exhaustive
­ Customized (and not entirely generic)
­ Easy to understand and implement
­ Used throughout by candidate

Communication & Body Language
­ Confident & relaxed
­ Crisp & concise
­ Drove the case / discussion (active rather than passive)
­ Overall built good rapport

Problem Solving
­ Good analytics: interpreted & used data well (drew strategic insights & conclusions)
­ Comfortable with numbers and graphs
­ Creative in drawing conclusions, analyzing reasons

Summarizing & Recommending
­ Concise and to-the-point
­ Structured (went back to the framework & question)
­ Comprehensive (did not miss any relevant point discussed)
­ Compelling

Others
­ Organized: used paper well
­ Verbalized & communicated his / her thinking at every stage
­ Maturity
­ Enthusiasm

BEHAVIORAL / FIT QUESTIONS

The “Fit” part of the interview is often underestimated in importance. While its proportionate importance varies significantly among firms, in every firm there would be a “Fit” element in the interview. In some firms like McKinsey, it is a formal evaluative component and can have a weightage up to 50%. However, in every firm the “Fit” component to the interview is at the least an opportunity to convey to the interviewer that you are a well-rounded, likeable and accomplished candidate (in a modest, unassuming and believable way, of course) and essentially “set-up” the rest of your interview.

We would advise you to mull over and take your time for the “Fit” preparations, and not leave it till last. In fact you should start working on it as soon as you can. The best way to prepare is to actually write it down, and then practice it verbally with your group mates and, finally when it is more polished, with 2nd Year students.

When possible, try to apply the STAR method to behavioral/fit questions:
Situation – in a sentence or two, describe the situation/context/environment
Task – briefly describe what the task was that needed to be accomplished
Action – describe what action you, specifically, took
Result – discuss the outcome as a result of that action

Applying the STAR method will help to ensure that your answer is well structured, concise and to the point. Remember, even when asked fit or behavioral questions, you are being tested on your ability to think and communicate in a logical/structured manner.

Common fit questions include…..

§ Tell me about yourself (a.k.a. Walk me through your resume).
§ Tell me about at time that you had to compromise.
§ Tell me about a leadership experience that you have had.
§ Tell me about a time when you worked in an ineffective team.
§ Tell me about a time that you lead a team.
§ Tell me about a time that you failed.
§ Tell me about a time that you took initiative.
§ Tell me about the best team you have ever worked in.
§ Tell me about the worst team you have ever worked in.
§ Tell me about a time that you overcame a major obstacle.
§ Tell me about a time you influenced people.
§ Tell me more about what you did in X position.
§ Tell me about a time when you had the most impact.
§ Tell me more about X (usually from your additional information section).
§ Why do you want to work at Company X?
§ Why are you a good fit for Company X?
§ Where do you see yourself in 5 years? 10 years?
§ What is your greatest accomplishment?
§ What is the greatest challenge you have ever faced?
§ What are Company X’s strengths & weaknesses?
§ What do you think makes a strong leader?
§ What do you think makes a weak leader?
§ What made you decide to go back to school?
§ Why did you choose the GSB?
§ What are you passionate about?

MINI CASES

PROFITABILITY / PROFIT IMPROVEMENT
Profitability cases often require you to analyze a situation and determine potential reasons for the client’s drop in profits. This will test your understanding of product portfolio mix and several other factors.

Examples:
29. How can a mid-size domestic airline regain profitability?
30. How would you evaluate the profitability of a Big Five accounting firm? What are the best measures?
31. You are contracted by a CEO of a supermarket chain, whose profit margin is declining. Why? Assess the situation.
32. Your client is the National Beef Board. The board wants to know if its advertising campaign has been successful. How would you evaluate the campaign's performance?
33. Over the past few years, the client, a retail bank has gone from one bank in one state to eight banks in eight states. All of the banks are operated autonomously and the company as a whole is losing money. Specifically, four individual banks are losing money. The parent bank has tried to mandate cost reductions and has formed committees with representatives from each bank to address these problems. How can the client solve the problem?
34. You are working for a firm whose bottom line is declining and senior management thinks it is because of transportation problems. What would you do?
35. Your client is a manufacturer of large jet engines in the U.S. with 40 percent of the market. There is one major U.S. competitor and one potential Japanese competitor, who will not be able to enter the industry for 10 years. The U.S. competitor's prices are below those of your client, and the major purchasers of jet engines are the commercial airlines. What strategy would you advise for your client?
36. Profits are declining in a firm in the trucking industry. Why? How would you fix the problem?
37. A national retailer has low profits. Its competitors are small, regional, specialty stores. What would you review to improve the situation?
38. A manufacturer makes "flooring" for sports courts; i.e., basketball courts, gyms, etc. The floors are made of maple wood. The company has four national competitors and has a 15 percent market share, but it remains profitable with 16-18 percent ROE after taxes. How can the company increase profits?
39. A company is in the railroad freight business and they own the railroads. Profits are declining. What are the key areas you would examine to understand why?
40. A company makes rubber grips for golf clubs and has stagnant sales. The company is profitable, but wants to know how profits can be increased.
41. A manufacturer of communications equipment is losing share and its profitability is declining. The cost side of the business has been analyzed and there are no cost savings. What about the revenue side?

INDUSTRY ANALYSIS / MARKET SIZING
These types of cases often require you to analyze your client and recommend how they should respond to changes made by their competitors or in the marketplace. Industry analysis / market sizing tests your analytical ability to understand internal and external market factors and microeconomic concepts of supply and demand.

Examples:
1. An insurance company, which used to be profitable, has been losing money for the last couple of years. Assess the situation. What could be the cause?
2. What are the potential problems you should consider if a Japanese millionaire asks you about the viability of franchising an NFL football team in Japan?
3. A company with 1200 sales representatives throughout the U.S. and superior merchandise offerings is experiencing a decline in sales. What can you do to recover sales?
4. Your client is a motor boat engine manufacturer. A competing engine manufacturer has just purchased a pleasure boat maker to begin selling a complete product. What should the client do?
5. Your client is a cash register maker, a U.S. subsidiary of a Japanese firm. The registers are made in Japan. U.S. profits are plummeting. Why?
6. Your client is a cellular phone network company. The industry is a regulated duopoly. There is high churn in the market, 2-3 percent per month. The market is projected to have a net growth of 40 percent. The client wants to better understand the dynamics of its customers and the market. What would you examine to address these questions?
7. I am a manufacturer of railroad cars in a declining market. I am losing market share and money, but I think that the industry may rebound in the near future. What should I do?
8. A regional Bell operating company is considering entering the phone book publishing business. Growth had been 15 percent for five years following the divestiture and deregulation, but it has now stalled. The client wants to know how you would evaluate the situation.
9. Your client is a manufacturer/distributor of disposable hospital gowns. Industry sales grew quickly until two years ago, then leveled off. Half of the hospitals say that cloth gowns are more economical, while the other half believes that disposable gowns are the better choice. What should the client do? Part II: Given that the cost advantage for cloth is 3.75 to 1 in favor of cloth for non-customers, what are the strategic alternatives available to the firm?
10. What are the concerns of the Dean of the Business School?
11. Your client is Domino’s Pizza. You've just heard that Pizza Hut is entering the home delivery business. How big a threat is this for Domino’s?
12. What are the differences between beer distributors and groceries distributors?
13. A beer company has asked you to review the beer industry, taking into account all the changes in drinking habits & new product introductions. Assess the future market and discuss what strategy the company should pursue.
14. What is your understanding of the organizational structure of the consulting industry?
15. A large glove manufacturer with one major competitor sells product to department stores and wholesalers. How would you assess the competitors' revenues and costs?

GROWTH STRATEGY / MARKET EXPANSION / NEW PRODUCT INTRODUCTION
This type of case involves your ability to recommend a strategy