Cracking the Case Interview

One of the most critical part of the entire interview process is the case interviews, firms such as McKinsey, Bain and BCG extensively rely on case interviews, whereas reliance on the case interview method is relatively less for the big four audit firms (Ernst & Young, Deloitte, KPMG and PwC)

Case interviews can give the interviewer great insight into the student’s ability to organize his or her thoughts, pursue a well reasoned line of inquiry, and assemble theories on possible solutions to the problems presented in the case. It is to be noted that the method is as important as the “answer.” In many cases, especially the short type, (“How many bottles of Coca Cola were sold in India last year?”), the method is all that matters. 

Bain & Company’s “How to ace an Case Interview guide” offers the following advise

To effectively crack a case, the interviewee must have the ability to:

- Break a complex problem into its component parts
 
- Apply business judgment to identify value

- Generate a creative range of solutions to a problem’s component parts

- Identify the most likely/attractive solutions through logical reasoning

- Generate thoughtful questions and ask for clarification of case data, as necessary

- Translate analysis into actionable recommendations

- Effectively communicate solutions in a concise and persuasive manner

Bain’s guide further clarifies the concept of a case interview:

A case study consists of a business problem taken from a real life business situation, or an example drawn from your resume. It focuses on your analytic approach to the problem, rather than specific business knowledge.

First and foremost, you can succeed in a case interview without specific industry experience. Don’t panic if the case you are given is based on an industry with which you are unfamiliar. Remember, we are interested in how you analyze the problem, not how much you know about the industry.
Practicing for the case interview is helpful. Practice by constructing examples from your resume and walking through steps 1-5. Finally, the answers mentioned demonstrate only one way to respond to the case; there is no single standard, best answer.

A sample case:

A leading designer apparel retailer XYZ having 30 percent market share in the US market is contemplating entering the Indian Market. XYZ competitor ABC in the US designer apparel market having a market share of 25 percent in the US designer apparel market is already present in India, ABC’s current market share in the Indian market is 50 percent, should XYZ venture into Indian Markets?

While every case is different and no one approach will work for all cases, it is critical to have a well-structured analysis. . The Kellogg Consulting Club Case Workbook offers the following five-step process to achieve a desired level of structure.

1. Stop and think: After the interviewer has presented the case, take a moment to think about the relevant issues, the way in which you will structure your approach, and what thought models (e.g. Five Forces, Cost/revenue) might apply.

2. Ask Questions: If you missed any information or if you are unclear about a term or technology, ask for clarification. It is imperative to start your analysis with a clear understanding of the problem.

3. Outline Your Analysis: Decide the way in which you are going to structure your analysis and communicate this to the interviewer. It will help the interviewer to understand the way in which you are approaching the problem.

4. Deep Drill: Based on your assessment of the relevant issues and your approach, pick the appropriate avenue for in-depth analysis (e.g. if the problem is declining profitability, you should thoroughly examine potential cost drivers and understand how they might have changed over time). Proceed to deep drill each appropriate area, paying attention to the time provided and seeking additional information along the way.

5. Summarize: Where possible, draw preliminary conclusions based on facts or stated assumptions. Summarize your analysis and the approach you used. If appropriate, indicate the likely next steps in further assessing the situation.
Some of the other tips offered by the Kellogg Consulting Club Case Workbook include