Consulting Interview Multipack
Consulting Interview Multipack
MULTIPACK
Incl. Cases, Brainteasers
& Market Sizing Exercices
A small energy company operating in the UK (1 million customers) currently has an
1 operating profit of 2%. They want to double that margin to 4%. What would you
recommend?
A large Middle Eastern airline is looking to upgrade some of its fleet to larger planes.
2 Firstly, estimate how many passengers come through Dubai airport each year and
secondly, what should the CEO consider before they upgrade the fleet?
The Crown Prince of Dubai is looking to sell Dubai. Whilst he is happy to sell, he does
4 not want to be remembered for selling too cheap. What price should he sell Dubai
for?
There has recently been a merger between three tap manufacturers, one based in
5 the US, one based in the UK and one based in Japan. A new Chief Revenue Officer has
just been appointed and wants to double revenues. What would you recommend?
Solve 180+ cases in our
online case library
A small energy company operating in the UK (1 million customers) currently has an operating
profit of 2%. They want to double that margin to 4%.
Clarify 1) What is the nature of this energy company? Utilities such as gas & electric?
2) Operating profit includes all revenue and costs but no interest or taxes, is that correct?
3) Am I right to assume we are only interested in the UK market?
Example synthesis
Repeat
“So, we are looking at a UK energy supplier with 1 million customers and are looking to
double their operating profit margin, have I understood the question correctly?”
After confirming you have understood the question, excuse yourself for a couple of minutes
to collect your thoughts and structure your answer.
Framework
Tip: try and draw this out in less than 2 minutes to maintain momentum in the dialogue
Once you have drawn your framework turn your page round and explain your thought
Present process and reason for structuring your answer as you have. Finish your explanation with a
comment such as “does that sound like a reasonable approach to you?”
Example hypothesis
Hypothesis
“Given that I believe the energy market is highly price sensitive I think I will begin my analysis
on the cost component of the profit equation.”
Once the interviewer has confirmed your approach is reasonable and you have stated your
hypothesis you may begin working through your answer.
All maths should be done confidently and quickly without a calculator. Where possible,
always remember to make the maths as simple as you can.
Price is extremely
Currently have 1
competitive and See figure 1. See figure 1.
million customers
cannot be increased
Working
Possible recommendations
‣ Can confirm that the hypothesis of price being highly sensitive and cost reduction
being a more realistic way of increasing profits was true.
Recommendations
‣ The main concentration area for achieving the profit margin target of 4% appears
to be reducing the cost of acquiring customers and so further investigation into
channels such as price comparison websites should be pursued.
Figure 1.
Labor
2.000 £ 3.200 £ Energy/unit 1£ 1£
Marketing/cus
Rent 100 £ 92 £ 62 £ 34 £
tomer
Customer
Utilities 15 £ 20 £ 20 £ 21 £
service
Figure 2.
Figures
2012 2018
1%
29%
18%
21%
22%
28%
21%
Ee-n T-power BG Anf energy Others Ee-n T-power BG Anf energy Others
Question
A large Middle Eastern airline is looking to upgrade some of its fleet to larger planes.
Firstly, estimate how many passengers come through Dubai airport each year and secondly,
what should the CEO consider before they upgrade the fleet?
1) Just to make sure, the airline does not want to upgrade its entire fleet, just a proportion?
Clarify 2) If a tourist arrives and departs in the same week how is that counted in passenger
numbers?
3) So firstly we need to determine the required capacity and then secondly the additional
considerations with the fleet upgrade?
Example synthesis
“So, the client is a mature Middle Eastern airline that wants to know how many passengers
Repeat
come through Dubai airport each year and with this in mind, they have asked for us to point
out factors they need to consider if they upgrade some of its fleet to larger planes, is that
correct?”
After confirming you have understood the question, excuse yourself for a couple of minutes
to collect your thoughts and structure your answer.
Runways
= ____
x seats
x
= _____
Time per mans.
Framework manoeuvre every 5
= ___ = ___
mins
mans. mans. a
per hour year
÷
Minutes per = 60
Days per year = 365 % seats filled
hour
Tip: try to draw this out in less than 2 minutes to maintain momentum in the dialogue.
Tailoring it to the question will ensure full marks for structure from the interviewer.
Once you have drawn your framework turn your page round and explain your thought
process and reason for structuring your answer as you have. In this case, draw the issue tree
Present without numbers first and then after you have hypothesised you can request data in order to
complete your answer. Finish your explanation with a comment such as “does that sound
like a reasonable approach to you?”
Example hypothesis
Hypothesis
“Given that I understand Dubai is a busy airport I think that it may transpire that upgrading
part of its fleet is appropriate but only on certain routes.”
Once the interviewer has confirmed your approach is reasonable and you have stated your
hypothesis you may begin working through your answer.
It is important to keep numbers and data at the forefront of your questioning. In this
example it is easy to work through your issue tree asking for the data required to fill the
gaps. All maths should be done confidently and quickly without a calculator. Where possible,
always remember to make the maths as simple as you can.
Minutes per = 60
Days per year = 365 % seats filled = 80%
hour
In this case you are required to use an additional data table to work out the average capacity
per plane in order to get to the final answer.
‣ Due to the small number of plane types and high number of flights everyday it is
worthwhile investigating further into the demand trends of flight routes. This
Recommendations investigation should highlight where larger planes would be beneficial such as
times of day and seasonality.
‣ It may be beneficial to look at other options such as leasing planes instead of
purchasing them outright.
Question
An African bank is looking to enter the UK market, aiming to capture a proportion of the
migrant community. The board have asked your advice on an entry strategy.
Example synthesis
Repeat
“So, we are looking at an African bank that wants to enter the UK market and specifically
target the migrant community, is that correct?”
After confirming you have understood the question, excuse yourself for a couple of minutes
to collect your thoughts and structure your answer.
Framework
Tip: try and draw this out in less than 2 minutes to maintain momentum in the dialogue
Once you have drawn your framework turn your page round and explain your thought process and
Present reason for structuring your answer as you have. Finish your explanation with a comment such as
“does that sound like a reasonable approach to you?”
Example hypothesis
Hypothesis “Given that I know the UK banking market is highly competitive I would hypothesis that for the
client to achieve a successful market entry they will have to develop a bespoke product offering
for the migrant community.”
Once the interviewer has confirmed your approach is reasonable and you have stated your
hypothesis you may begin working through your answer.
All maths should be done confidently and quickly without a calculator. Where possible, always
remember to make the maths as simple as you can.
Working See figure 1. first two years to launch any of the banks than ever
Possible recommendations
Figure 1.
Figures
Figure 2.
Investment
Product Type required (over 2 Forecast ROI
years)
The Crown Prince of Dubai is looking to sell Dubai. Whilst he is happy to sell, he does not
want to be remembered for selling too cheap.
Example synthesis
Repeat
“So, we are looking to find a sale price for the city of Dubai but the Crown Prince does not
want to be remembered for selling too cheaply?”
Not applicable for this question, it is such a unique type of question and is a test of how well
you can apply structure to a completely unstructured problem.
Framework
As always the best place to start is to segment where possible. The answer here segments
Dubai into industries.
Explain your thought process and reason for structuring your answer as you have. Finish
Present your explanation with a comment such as “does that sound like a reasonable approach to
you?”
Example hypothesis
Hypothesis
“I think that many valuations are made by multiplying revenue or EBITDA by an industry
specific multiple. I think that a sale price could be determined this way.”
GDP of Dubai = $380bn
Industry breakdown
Tourism 10 % 1,5
Construction 10 % 1,5
Retail 1% 1,5
Finance 8% 2
Education 1% 1,5
Real estate 5% 3
Aerospace/defence 5% 2
Working
Weighted calculation
Industry
Industry % of total GDP Valuation ($bn)
multiple
Natural resources 60 % 3 $684
Finance 8% 2 $60.8
Aerospace/defence 5% 2 $38
*The calculations during the interview will need to be done without a calculator.
Via industry segmentation and using their respective multiples it has been possible to
Summary
find a sale price for Dubai.
There has recently been a merger between three tap manufacturers, one based in the US,
one based in the UK and one based in Japan. A new Chief Revenue Officer has just been
appointed and wants to double revenues.
Example synthesis
Repeat
“So, we are looking at a tap manufacturer that has a soul aim of doubling revenues. It has
operations in the US, UK and Japan. Have I understood that correctly?”
After confirming you have understood the question, excuse yourself for a couple of minutes
to collect your thoughts and structure your answer.
The reason why we suggest general rather than profitability is that we know revenue = price
x volume and to increase volume we need to take a thorough look at the customer, market
and product offerings.
Framework
Tip: try and draw this out in less than 2 minutes to maintain momentum in the dialogue
Once you have drawn your framework turn your page round and explain your thought
Present process and reason for structuring your answer as you have. Finish your explanation with a
comment such as “does that sound like a reasonable approach to you?”
Example hypothesis
Hypothesis “I would hypothesize that as the client is a merger of manufacturers there may be an
opportunity to diversify its distribution channels rather than diversify its product offering. I
will now work through my framework to attempt to test this hypothesis.”
Once the interviewer has confirmed your approach is reasonable and you have stated your
hypothesis you may begin working through your answer.
All maths should be done confidently and quickly without a calculator. Where possible,
always remember to make the maths as simple as you can.
2 3,000,000 ÷ 175,000 =
3 12,394 + 798 =
4 100,892 - 98,765 =
5 5678 x 17 =
6 4328 ÷ 19 =
7 5,761 + 19,872 =
8 67,891 - 34,878 =
9 77,000 x 31 =
10 80,000 ÷ 15 =
11 25,560 + 5,680 =
12 987 - 831 =
13 76,875 x 7 =
14 77,777 ÷ 11 =
15 6,040,500 + 45,750 =
16 19,500,000 - 1,650,780 =
17 34,560 x 4 =
18 5,000,000 ÷ 24,000 =
19 697,751 ÷ 153,596 =
20 998,933 + 20,269 =
21 93,607 - 632,012 =
23 97,990 ÷ 5,675 =
24 8,854,001 + 124,780 =
25 7,027,329 - 207,364 =
26 1,000,000 x 42 =
27 1,410,000,000 ÷ 47 =
28 218,777 + 178,514 =
29 436,074 - 205,873 =
30 7,000,000 x 30 =
31 4,097,673 ÷ 589 =
32 9,626 + 249,053 =
33 855,348 - 815,283 =
34 469 x 3,050 =
35 4,471,110 ÷ 705 =
36 85,134 + 284,404 =
37 612,897 - 284,035 =
38 149,072 x 7981 =
39 80,327 ÷ 13 =
40 657,845 + 767,016 =
41 696,664 - 16,456 =
42 106 x 9,360 =
43 2,811,125 ÷ 5375 =
44 3,003,348 + 749,945 =
45 2,001,985 - 623,754 =
46 149 x 871 =
47 992,160 ÷ 106 =
48 7,524,958 + 370,600 =
49 19,343,404 - 328,848 =
50 60,000,000 x 29 =
1 6.072
2 17,14
3 13.192
4 2.127
5 96.526
6 227,79
7 25.633
8 33.013
9 2.387.000
10 5.333,33
11 31.240
12 156
13 538.125
14 7070,64
15 6.086.250
16 17.849.220
17 138.240
18 208,33
19 544.155
20 1.019.202
21 -538.405
22 1.977.552
23 17,27
24 8.978.781
25 6.819.965
26 42.000.000
27 30.000.000
28 397.291
29 230.201
30 210.000.000
31 6957
32 258.679
33 40.065
34 1.430.450
35 4.471
36 369.538
37 328.862
38 1.189.743.632
39 6179
40 1.424.861
41 680.208
42 992.160
43 523
44 3.753.293
45 1.378.231
46 129.779
47 9360
48 7.895.558
49 19.014.556
50 1.740.000.000
Your mother’s brother’s only brother-in-law is asleep on your couch. Who is
1
asleep on your couch?
2 I have three apples, you take two from me. How many do you have?
The day before yesterday Sam was 17. Next year she will be 20. What day is
3
her birthday?
It’s dark. You have ten grey socks and ten blue socks you want to put into
4 pairs. All socks are exactly the same except for their colour. How many socks
would you need to take to ensure you had at least one pair?
A merchant can place 8 large boxes or 10 small boxes into a carton for
7 shipping. In one shipment, he sent a total of 96 boxes. If there are more large
boxes than small boxes, how many cartons did he ship?
8 How many times can you subtract the number 5 from 25?
Two mothers and two daughters were fishing. They managed to catch one big
9 fish, one small fish, one fat fish. Since only three fish were caught, how is it
that they each took home a fish?
If you were to put a coin into an empty bottle and then insert the cork into the
10 neck. How would you remove the coin without removing the cork or breaking
the bottle?
Your dad.
1
Your mother’s brother is your uncle (assuming your mother and father are married).
Two.
2
The two apples that you took from me. I am left with one.
3 The day before yesterday is 30th December when she was 17, yesterday was the 31st
December when she turned 18, today is the 1st of January and she will be 19 this year
but next year she will be 20.
Three.
4
The first will be grey or blue, the second will either give you a match or one of each
colour, if so, then the third sock will give you at least one pair.
72.
This makes the grandson 6 and the daughter 42. It can be solved by creating the
following system of equations:
Let m be my age in years. If s is my son's age in years, then my son is 52s weeks old. If
g is my grandson's age in years, then my grandson is 365g days old. Thus,
365g = 52s.
Since my grandson is 12g months old,
5 12g = m.
Since my grandson, my son and I together are 120 years,
g + s + m = 120.
The above system of 3 equations in 3 unknowns (g, s and m) can be solved as follows.
m / 12 + 365 m / (52 x 12) + m = 120 or
52 m + 365 m + 624 m = 624 x 120 or
m = 624 x 120 / 1041 = 72.
Once.
8
After you subtract 5 from 25 you are left with 20.
10 Push the cork into the bottle and then remove the coin.
1 What is the size of the European Shoe market?
2 How many fast food meals are served in London each year?
4 How many phones are lost at music festivals in the UK each year?
7 What number of pretzels would you need to build a tower as tall as Big Ben?
9 Estimate the revenue generated by ticket sales from all US sports stadiums each year.
10 How many people wear a tie on a Monday in the state of New York?
15 Estimate how many emails are sent from Dubai each week.
18 Estimate how many pints of beers are consumed in France each week.
0-15 10m 60 % 50 % 3m
x = 2bn x
Considerations
UK population = 60m Population growth
= 20m
÷
household
6 Average #people per s
=3
household
÷
Average lifetime of a
house = 10 years
Considerations
The interviewer may ask
Population of = 20m how you have arrived at
your commercial customer
commercial sofa household figure
customers s = 40m
potential
+ customer
8 UK population
= 60m s
÷
÷ = 20m
Average #people per
household =3 Average
= 20
lifecycle of a
years
sofa
Considerations
Average #games per
= 15 Non-sporting ticket
stadium per year sales
#US states = 50
= 1.875bn
x = 5000 x attendees per
Average stadia year
9 #stadiums with
= 100
paying spectators
per state = 125m
÷
Probability
= 5%
tie is red
Population of New
= 20m
York
x = 18m x
10 % that leave the = 90%
house on a Monday x = 180,000
ties
% that are wearing
= 1%
a tie
% that are
% of total % that own Phone
Age group Population smartphone Total
population a phone owners
s
0-15 25 % 250m 2% 5m 20 % 2m
65+ 10 % 100m 5% 5m 20 % 2m
Total #
*Taking population
of Africa as 1 billion
smartphones in
Africa
Commercial = 450m
organisations
= 900m
Average #fridges per
=2
organisation
Considerations
Objects with a high lightbulb
count such as Christmas lights
Population of Dubai = 3m
x = 2.4m
% with a personal
email account = 80% x = 2.4m
x = 1.2m
% with a business
email account = 40% x = 12m
Considerations
Av. capacity = 250 You may start with the issue tree
Hours per day = 24 per plane and then ask for the necessary
numbers.
Runways =2
= 1152 = 2.1m
x x mans. per seats a
= 4 mans.
day (approx. week
every 5
Time per = 2.5 1200)
16 mins = 48
manoeuvre minutes = 8400
mans.
mans. a
÷ per
week
hour
Minutes per
= 60 Days per week =7 % seats filled = 80%
hour
*mans. = manoeuvres
Considerations
Average miles driven
= 100 Potential to segment by age or
per car each week vehicle type e.g motorcycles,
cars, vans, lorries
UK population = 60m
= 20m x = 4bn miles
÷ household
Average #people s
17 =3
per household = 40m
cars
÷
Considerations
Average #pints per
=3 Could segment by age and use
week the table format.
FR population = 70m
- x
= 50m
18
Population aged
= 20m
<18
x = 40m
0-16 10m 0 0 7 0
Total # cigarettes
Population =
smoked each week
80m in Germany
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