Getting started Flashcards
Football analogy
You need to learn the building blocks / fundamentals in order to be able to play well
- E.g. receive, pass, shot, tackle, positioning
- Things you can train in isolation
-> Same thing for consulting
The 6 Building Blocks of Case Interviews
Structure-related building blocks
- Brainstorming
- Frameworks
- Hypothesis Testing
Analysis-related building blocks
- Estimations
- Quantitative Analyses
- Chart Interpretation
What is brainstorming?
What is it not?
- Brainstorming is using issue trees to build a structured list of hypotheses and ideas
- It is NOT throwing out a random list of ideas/hypothesis without structure and priority
Examples of brainstorming
- An iron-ore mining company has seen its revenue drop 30% in the last year despite heavy investments, what are plausible hypotheses that could explain that?
- A large university wants more applicants for their undergrad program next year. What are some ideas of what they could do to get that?
- Apple wants to launch a cheaper version of iPhone - what are the risks?
What is frameworks?
- Frameworks are decision-making plans - a list of the questions you need answered to make a decision and a systemic way to make sense of them
- The skill being tested here is how you create this plan, not if you know a pre-made one
Examples of frameworks?
- How can Nestle create a long term growth strategy?
- Help a Health Minister combat childhood obesity.
- How would you help a soft drinks company increase its profits?
What is hypothesis testing?
- Hypothesis Testing serves to test the hypotheses you organized and prioritized when brainstorming or building your frameworks
- These test need to be rigorous, but also practical
Examples of hypothesis testing
- Is passing a law to increase physical activity in schools a good idea to reduce childhood obesity?
- Would it be worth for Nestle to start a super premium line of baby food products in order to grow sales in Europe?
- Will the building of nicer dorms increase the number of applicants of a university’s undergrad program?
What is estimations?
- Estimations are used to quantify when you have no data (or insufficient data) by using logic and assumptions
- It is also used to see if you have what it takes to model scenarios in consulting
Examples of estimations
- What is the market size of road maintenance in the US?
- What are the revenue of a local Starbucks store?
- How much do pharma companies spend on R&D every year?
What is quantitative analyses?
- When you have the data to calculate, we call it a Quantitative Analysis
- Getting to the right number is the minimum - how you do this and what you do after you find it is as important
Examples of quantitative analyses
- Calculate revenue synergies from introducing your competitor’s products into Starbucks stores after an acquisition
- Calculate cost savings in R&D after implementing this new process
- Given this table of data, how much will it cost to improve the quality of this university’s dorm rooms?
What is chart interpretation?
- Chart interpretation questions happen when interviewed give you an already done analysis in the form of a chart to see how you understand it and find the implications
- Great candidates finds more insights, communicate them better and develop next steps
Examples of chart interpretation
- Table comparing different countries Nestle could invest on expansion
- Graph charting effectiveness, addressable population and cost of different public policies to reduce childhood obesity
- Chart showing the iron and ore supply and demand curves with prices and volumes of all main global supplier and buyers
Your Preparation Toolbox, Three key tools:
Theory
- Step-by-step method
- Apply principles to real cases
- Consultants follow certain patterns
Drills
- Video drills, targeted practice
- Specific questions, not a whole case
- Give yourself more time than in a real case, e.g. take 10-15 min to develop your framework
- Use the drills to learn in your own pace
- The bridge between the theory and mock interviews
- Safe playing ground
Mock interviews
- Simulations of the real thing
- Complement to theory and drills
- What is the specific issue I’m trying to solve, and what tool do I need to solve it?
