WHARTON

CONSULTING CLUB
CASEBOOK
December 2008, © Wharton
Consulting Club
2

Content

s
Sectio
n
Page
#
□ Introduction &

Acknowledgements

3 □ Consulting Industry

Guide

6 □ Industry

Overview

□ Firm Overview (11

Firms)

□ Interview

Preparation 19

□ Interview Overview – Fit +

Case

□ Sample

frameworks

□ Other
References
□
Practice
Cases 41

□ 18 Practice

cases

□ Links to other

cases 123

□ Cases from firm

websites

□ Suggested cases from other

casebooks

3
Note to the

reader
Dear Consulting Club member, The 2008-09 leadership of
the Wharton Consulting Club has put in significant effort
into overhauling the Wharton Casebook! This casebook is
meant to provide you with a brief overview of consulting
recruiting and interview preparation as well as a number
of practice cases. Please note that this is meant to
supplement the excellent work done by our and other
schools in earlier casebooks, so we strongly encourage
you to not make this your sole reference. We have
indicated which other casebooks we found particularly
useful at different points in this casebook. Lastly, please
note that this is just our first version of the casebook and
there are changes we plan on making, and hope to issue
an updated version of the casebook after the winter break
(with more tips and cases). Till then, have fun reading this
and good luck as prepare to „Crack the consulting
interviews‟! - 2008 Wharton Consulting Casebook
Editorial Team

4 We are really grateful

to...
Ishan Chatterjee Brian Chu Charlene Chu
Zarja Cibej Diego Jimenez Rajesh Krishnan
Hemanth Sampath Michael Sion Fouzan Ali
Aryea Aranoff Parisa Habibi Anu Hariharan
Nihar Malik Bernice Ma Suma Reddy ... &
many others!!! For
their contributions
to this casebook!
5THE BIG PICTURE: CONSULTING
RECRUITING INVOLVES LOTS OF
LITTLE THINGS... NO SINGLE SILVER
BULLET
Apply Your objective What resources you will
need to use
Gather Info, Network &
Decide
• Is consulting what you want to
do?

• Which firm do you want to

join?

• Why do you want to join a certain

firm?
• Connect the dots (pre-MBA to MBA to
consulting)

• Get invited to interview (prepare good resume and cover

letter)

• MBACM industry
chats

• Firm websites / Vault /

WetFeet

• Coffee
chats

•
EISes

• Second Years / First Years from

firms

• Speakers on
campus
Interview:
Cases
• MBACM resume
review

•
Resumania

• Second Years (at least 2

reviews)

• Demonstrate „fit‟ - Leadership - Team-player - Well-rounded

personality Interview: Fit

• Prep „Fit‟ questions

thoroughly
• MBACM mock interviews
• Interviews with Second
Years

• Read WSJ, Economist...

something

• Ace Cases • Case books & Industry Primer

Series!

• Core
courses

• Practice extensively with First

Years

• MBACM mock interviews

• Interviews with Second

Years

• Reach out to consulting firm

buddies
6

Content

s
Sectio
n
Page
#
□ Introduction &

Acknowledgements

3 □ Consulting Industry

Guide

6 □ Industry

Overview

□ Firm Overview (11

Firms)

□ Interview

Preparation 19

□ Interview Overview – Fit +

Case
□ Sample

frameworks

□ Other

References
□
Practice
Cases 41

□ 18 Practice

cases

□ Links to other

cases 123

□ Cases from firm

websites

□ Suggested cases from other

casebooks

7 Industry overview –
Management Consulting
Management consulting involves solving complex
business problems and offering recommendations to
companies Overview of management consulting
• Problem-solve complex and unstructured business
problems
• Work closely with senior management on the
client side
• Intellectually stimulating work and ability to build a
strong set of skills
• Constant travel (depending on office location and
consulting firm) can pose significant challenges
• Industry (prior to economic downturn) was expected to
grow at
8.8% in
2009
• Most firms have a global presence and offer
international project opportunities Interview Process
• Case interview – involves solving a business case;
candidate expected to drive towards a solution and ask
for relevant data; focus on structure;
 • Fit interview – numerous behavioral questions
focusing on
prior
experiences Typical Career Path
•
Consultant/Associat
e
• Senior
Consultant/Associate
• Manager/Project
Leader
• Associate
Partner
•
Partner

8 Industry overview –

Accenture
Accenture is a leading global management consulting firm
which is known for offering comprehensive solutions,
including technology services, to its clients. Accenture
Overview
• 2000
consultants
• Global brand recognition due to solutions
outside management consulting
• 3 broad services areas (management consulting,
systems integration consulting and technology
consulting)
• Regional staffing
model
• Comprehensive solutions, beyond strategy, offered
to clients Interview Format
• 2 rounds of
interviews
• Round 1: 2 45-minute
interviews
• Round 2: 3 45-minute
interviews Career
progression
•
Consultant
•
Manager
•
Partner

9 Industry overview – AT

Kearney
AT Kearney is a leading global management
consulting firm which is known for the implementation
focus of its projects/results. AT Kearney Overview
• 1700
consultants
• 51 offices
worldwide
• 34
countries
•12 industry
groups
• 7 broad services
areas
• Global staffing
model
• Partners actively involved in
cases
• Recently went private when company was bought
back from EDS Interview Format
• 2 rounds of
interviews
• Round 1: 2 45-minute
interviews
• Round 2: Regular case + fit interviews Case
presentation (60 minute prep, 20 minute presentation &
10 minutes for Q&A) Career progression
•
Associate
•
Manager
•
Principal
• Partner (Vice-
President)

10 Industry overview – Bain &

Co.
Bain is a global management consulting firm. It is
considered one of the top firms in this industry and is
known for its focus on delivering results and office-centric
work model. Bain Overview
• 3100
consultants
• 39 offices
worldwide
• 26
countries
• Office-specific staffing
model
• 14 industry
groups
• 11 functional practice
areas
• Office-centric work
model
• Culture considered to be
collegial Interview Format
• 2 rounds of
interviews
• Round 1: 2 45-minute
interviews
• Round 2: 3 45-minute interviews (2 case +
1 fit)
• Office-specific
interviews
• “Answer-first”
approach
• Career Focus on
progression creativity and
structure
•
Consultant
• Case Team
Leader
•
Manager
•
Partner

11 Industry overview – Booz &

Co.
Booz is a global management consulting firm. It is
considered one of the top firms in this industry and was
recently bought out from Booz Allen Hamilton, which is
govt. focused. Booz Overview
• 3300
consultants
• 57 offices
worldwide
• 30
countries
• Regional staffing
model
• 16 industry
groups
• 8 functional practice
areas Interview Format
• 2 rounds of
interviews
• Rounds 1 & 2: 2 45-minute
interviews Career progression
•
Consultant
•
Manager
•
Partner

12 Industry overview –

Boston Consulting Group

BCG is a global management consulting firm. It is
considered one of the top firms in this industry and is
known for its intellectual approach and diverse
workforce. BCG Overview
• 4500
consultants
• 66 offices
worldwide
• 40
countries
• Regional staffing
model
• 15 industry
groups
• 14 functional practice
areas
• People considered to be
friendly Typical Interview
Format
• 2 rounds of
interviews
• Round 1: 2 45-minute interviews
(cases)
• Round 2: 3 45-minute interviews
(cases)
• General 1st round and office-specific 2nd round
interviews Career progression
•
Consultant
• Project
Leader
•
Principal
•
Partner
13 Industry overview –

Deloitte
Deloitte is a leading global management consulting firm
which is known for offering comprehensive solutions,
including technology and tax services, to its clients.
Deloitte Overview
• Global brand recognition due to solutions
outside management consulting
•18 industry
groups
• 5 broad services areas (enterprise, human capital,
outsourcing, strategy & operations and technology
integration)
• 7 functional areas within strategy &
operations
• Regional staffing
model
• Comprehensive solutions, beyond strategy and
operations, offered to clients Interview Format
• 2 rounds of
interviews
• Round 1: 2 30-minute
interviews
• Round 2: 1 60-minute interview
with 2 partners Career progression
• Senior
Consultant
•
Manager
• Senior
Manager
•
Partner

14 Industry overview –

L.E.K Consulting
L.E.K is a global management consulting firm. It is
considered one of the top small firms in this industry and
is known for its analytical rigor. L.E.K Overview
• 900
consultants
• 20 offices
worldwide
• Strong presence outside
US
• 19 industry
groups
• 6 functional practice
areas
• Known for its analytical
rigor
• Cases usually shorter (6 to 8
weeks)
• Provides immediate managerial responsibilities to
its MBA hires
• Partners actively involved in
cases Interview Format
• 2 rounds of
interviews
• Round 1: 2 30-minute interviews (little fit, some cases
were brainstorming type questions)
• Round 2: 3 30-minute
interviews
• Potential case on NPV
analysis Career
progression
• Associate
Consultant
•
Consultant
•
Manager
•
Partner

15 Industry overview – McKinsey

& Co.
McKinsey & Co. is a global management consulting firm.
It is considered one of the top firms in this industry and is
known for developing leaders and strong culture.
McKinsey Overview
• 8500
consultants
• 92 offices
worldwide
• 52
countries
• National/global staffing
model
• 18 industry
groups
• 7 functional practice
areas Interview Format
•2 or 3 rounds of
interviews
• Command and Control case
interviews
• Office-specific interviews in all rounds (though
Northeast offices piloted common initiative)
• Fit interviews focus on structure, specific
actions and headlines for stories Career
progression
•
Associate
• Engagement
Manager
• Associate
Principal
•
Partner
•
Director

16 Industry overview – Monitor

Group
Monitor is a leading global management consulting firm
which is known for its thought leadership and focus on
knowledge transfer to its clients. Monitor Overview
• 1500
consultants
• 30 offices
worldwide
• 18
countries
• 15 industry
groups
 • 3 broad services areas (advisory, capital-building &
capital)
• Global staffing
model
• Founded in 1983 by the likes of Michael
Porter Interview Format
• 2 rounds of
interviews
• Round 1: 2 interviews (case +
fit)
• Round 2: Group business case exercise Role play
interview Feedback interview Career progression
• Case Team
Member
• Module
Leader
• Case Team
Leader
• Global Account
Manager

17 Industry overview – Oliver

Wyman
Oliver Wyman is a global management consulting firm. It
is considered one of the top firms in this industry with a
significant presence outside the US. Oliver Wyman
Overview
• 2900
consultants
• 40 offices
worldwide
• 16
countries
• 9 industry
groups
• 7 functional practice
areas
• Global staffing
model
• Formed from a combination of Mercer Oliver
Wyman & Mercer Consulting Interview Format
• 2 or 3 rounds of
interviews
 • Round 1: 2 30-60 minute with case
and fit
• Round 2: 1 Fit interview with two case + fit
interviews Career progression
• Junior
Consultant
• Senior
Consultant
• Junior
Manager
• Senior
Manager
•
Partner

18 Industry overview –

Parthenon Group
Parthenon is a management consulting firm that is well
known for its work in private equity, education and non-
profit consulting. It is one of the top small consulting
firm. Parthenon Overview
• 200
consultants
• 4 offices
worldwide
• 4 broad practice
areas
• 6 functional practice
areas
• Equity as fees in some
cases
• Known for its analytical
rigor
• Entrepreneurial
culture Interview
Format
•2 rounds of
interviews
•1st round: Typically 1 case with Associate and 1
fit with partner
•2nd Round : A pure fit, pure case and one interview
where you read a case and work with a manager to define
work- streams with detailed work-items Career
progression
•
Principal
• Partner (Multiple stages from principal to partner
take about 5 to 7 years)
19

Content

s
Sectio
n
Page
#
□ Introduction &

Acknowledgements

3 □ Consulting Industry
Guide

6 □ Industry

Overview

□ Firm Overview (11

Firms)

□ Interview

Preparation 19

□ Interview Overview – Fit +

Case

□ Sample

frameworks

□ Other

References
□
Practice
Cases 41
□ 17 Practice

cases

□ Links to other

cases 119

□ Cases from firm

websites

□ Suggested cases from other

casebooks

20
Contents:

Interview
Preparation
□ A typical consulting
interview

□ General

Tips

□ Fit interview preparation with sample

questions

□ Case interview

preparation

□ What is a case? Case Types and interview

methods

□ Problem solving – what is

it?
□ Overall flow of a

case

□ Tips to stand

out
□
Sample
Frameworks

□ Tips for giving

cases

□ Other resources (must

read)

21 A typical
consulting
interview
Meet & Greet The Fit The Case
Wrap-up Process
• Wait in hospitality suite with other candidates /
recruiters

• Interviewer asks for you by

name

• Handshake /
greeting

• Walk to interview suite / small

talk You should
• Interviewer may give personal
background

• Questions about resume /

experience

• Your chance to ask

questions

• Walk back to hospitality suite with

interviewer

• Appear warm, confident,

professional

• Interviewer will start

case

• Keep track of time so that you by when you are expected to reach a
conclusion

•
Convince

• Maintain
confident,

• Not ask stock

questions interviewer that you

controlled, upbeat are fit for the

firm

demean
or

• A good chance to get to learn about

the
• Pass the
“airport

interviewer‟s
personal test”

experiences at the
firm

22 General

Tips
□ Make a great first

impression

□ Professional

appearance
□

Preparatio

□ Have needed

supplies

□ Plenty of

pens/pencils

□ Graph/plain

paper
□ Serviceable

portfolio

□ Project confidence from start to

finish

□ Relax (hard to appear confident if

not)

□ Be yourself (extremely hard to be confident if

not)

23
What is

“fit”?
□ Opportunity to project “consultant” during the

interview

□ Inquisitive, logical, confident, friendly, driven,

happy

□ When you describe

yourself:

□ Focus on a set of skills that the company

wants
∎

Communicatio

n
∎

Leadership/Manageme

nt

∎ Work under pressure / ability to deal with conflict and

ambiguity
□ When you describe your

fit:

□ Don‟t repeat slogans; most firms do the same

things

□ Focus on what the firms consider to be their unique factors

(e.g. McKinsey‟s international reach, BCG‟s thought

leadership, Bain‟s office culture etc.)
□
For in-depth probing on leadership questions
(typical of McKinsey)

□ Prepare a 5-10 word „newspaper headline‟ that

encapsulates the story

□ Prepare beforehand a 1-2 minute description that quickly

lays out the context, the actors and the complication

□ Focus on your actions and thought process and the impact

of your actions that led to the solution / eventual success

24 Tips on the Fit

Interview

□ Almost every single interview involves at

least some fit- interview type questions

□ Applicants have been turned down from

the top consulting firms for not having

cleared the fit portions of interviews

□ Very basic steps go a long

way
□

Smil
e

□ Maintain eye

contact

□ Be honest and

heartfelt

□ Have a succinct

story

□ Practice can make

perfect
□

InterviewStrea

□ Mock fit
interviews

25 Tips on the Fit

Interview (cont.)
□

□ Establish common ground (geography, family,

interests, sports, etc.)

□ Ask the interviewer friendly

questions

□ Be confident in your
answers

□ Talk about something other than your

qualifications (you‟re interesting, so talk about

it)
□

Don‟

□ Discuss something

controversial

□ Complain about

anything

□ Make up elaborate questions you know the

answer to
□ Repeat company slogans, mottos, tag-

lines, etc.

□ Focus only on your business qualifications and

experience

26
Sample fit

questions
□ Take me through your

resume

□ Tell me about a time when you exhibited

leadership

□ Tell me about a time when you had to solve a

problem
□ Tell me about a time when you

failed

□ Tell me about a time you had

impact

□ What kind of leader are

you?

□ Why Firm

X?

□ Why City

Y?

□ Why

consulting?

□ What is your greatest

accomplishment?

□ What would you say your biggest

weakness is?
□ What are your long-term

goals?
□

How do you like

school?

□ What is your favorite class at

school?

□ What did you do last

summer?

□ What do you do for

fun?

27 Case types and

case interview
methods
□ What is a

case?

□A business issue/problem company is facing in a few

sentences

□ Takes about 25 minutes; has limited data which is usually

provided if asked for

□ Approach to solution is more important than the final

solution

□ There are two common case interview

methods:

□ „Go with the flow‟ cases (typical of most firms) – You

will determine which areas to explore and lead the

discussion, i.e. drive the case

□ Command and control (typical of McKinsey) –

Interviewer guides the discussion and case has

heavy brainstorming components and quantitative
work

□ Common case types* (not a comprehensive

list):
□

Profitability
□

Industry Analysis
(incl. non-profit) Market Entry
□

Market Sizing
Acquisition
□

Capacity Expansion
(incl. outsourcing) Organization
□

Investment
s
*Note: one case could span multiple case
types

Firms are trying to gauge your

28

problem-solving abilities, not

whether you are an industry
expert
Background
Important
Warning!
• Case interviews span a broad range of industries. You may encounter
everything from Financial Services to Mining to Education to Formula 1

• Those of you who have not worked as consultants before will likely not
have any background in most of these industries

• This document can give you a very high level view of some „typical‟
industries that cases focus on

• You MUST attend the industry primer series led by partners from various
firms as they will capture key insights and latest trends in those industries that
tend to be popular in cases Our belief

• We believe that having a very basic overview of an industry helps

to more effectively tackle a case

• At the very least it helps you construct a framework that is most applicable
to that particular problem context. Examples:

- Consumer goods: branding is an important driver of success -

Pharma: generics manufacturers pose a major competitive threat

• Do not attempt to master industry specifics or memorize industry

data

• You primary objective over the next few weeks/months is to

master case- based problem solving... not to become an industry
expert

• Spending a little time informing yourself about the basics of a few key
industries should improve your problem-solving ability

29 „Problem Solving‟ refers to wide

variety of decisions that consultants

help clients make by analyzing
issues/drivers
Examples Some
solution drivers
• Should client enter new market? What is
NPV?

• Should client do M&A? Post-merger integration

risk?

• How can client increase profits? Quantify

increase.

• How can client reduce costs? By how

much?

• Should client make new investment? What is

NPV?

• How can client increase share? Quantify

increase.

• How can client grow revenues? Quantify

increase.

• Should client outsource? Compare/value

alternatives.

Strategic
analysis

Economic
analysis

Customers /
channels

Catch-all /
Other

➢Wide variety of
decisions

businesses
face

➢Where possible, you will

be

guided to quantify improvement (i.e. to do some basic applied

math)

• What are industry

trends?

• Info on competitors/market
shares?

• Strategic rationale underlying

decision?
• What products? Prices?
Volume?

• What‟s the cost

structure?

• Profit impact for

client?

• Which customer
segments?

• What are customer needs /

wants?

• What channels? Sales

force?

• Any regional/geographic
concerns?

• What are the

risks?

• Any regulatory
issues?

• Any organizational behavior

issues?

➢Not all issues/drivers will be relevant but list should let you quickly zone in
on key to problem ➢ For these drivers, think

about: a. Changes over time? b. Compare client

with

competition etc. ➢This is meant to

 be a

thought starter – not a comprehensive

list

Overall flow of a
case
~3 min. ~1-2 min. ~12-15 min. ~3 min. Understand the
question Plan your
Probe for
approach information
Assert a
conclusion
• Listen
actively

• Ask clarifying
questions

• Take judicious
notes

• Organize notes as
slides

• Formulate an initial hypothesis about possible

solutions

• Write down key

question
• Mention you will take a minute to plan your
approach

• Draw out a framework as checklist of topics to

explore

• Select 3 to 5 major topic

areas

• Identify relevant sub-

topics

• Present plan of attack to interviewer – start with the most

important

• Follow your
plan!

• Ask specific questions to test

hypothesis

• Adjust hypothesis and plan as data

emerges

• Organize notes as
slides

• Highlight insights from any numerical

calculations

• Note
conclusions

• Drive the case to a conclusion before time

expires

• Answer the
question
• Take a definite
stand

• Make best conclusion with data on

hand

• Make recommendations and follow them with supporting

evidence

• Address “risks” and “next

steps”

31 Tips: Communication,

Notes & Math

□

Communicatio

□ Explain your thought-process when presenting your

plan

□ Make hypotheses when asking

questions/requesting information
□ Go beyond verbal

communication

∎ Be engaging! Enjoy the case problem and work together to

solve it!

∎ Body language (eye contact, gestures, posture); smile often

but do not overdo it

∎ Facial expressions (Maintain composure at all

times)
□

Note

□ Write legibly, angle it such that the case-giver can

see your
work

□ Use a new page for each theme you are

exploring

□ Circle/box insights for use in

recommendations
□

Mat

□ Draw math out clearly (especially for market

sizing)

□ Explain any assumptions (be reasonable with

assumptions)

□ Walk through your logic aloud and tie the result to the

case

32 7 Tips to help you stand

out in the case interview
□ Ask questions that help clarify the scope of the case

and the exact question to be answered

□ Draw out as “MECE” (Mutually exclusive,

collectively exhaustive) a framework / tree as

possible

□ Talk about the most important branches first and explain

why they may be the key drivers; don‟t just follow the
sequence in which you wrote them

□ When asking questions or for more data, preface them

with contextual analysis, or even a hypothesis as to what

you expect the data show

□ When doing math, relate the numbers qualitatively to the

case, and identify/verbalize the takeaways from your

analysis
□ „Brainstorm in buckets‟: If asked to brainstorm, take a

minute, identify the broad levers that can answer the

question, and run- riot with ideas. Structure and a logical
approach is always
appreciate
d.

□ When presenting recommendation – take a position! Be

concise and top-down in your recommendation (i.e.

recommendation first with supporting arguments, tie in
numbers if possible). Then, mention the risks that
invalidate your reasoning

33 A note about

frameworks
□ There are an unlimited number of frameworks that

can be successfully applied in case interviews...

□ ...but knowledge of a few solid frameworks will go a long

way (profitability, market entry, go/no go investment,

etc.)

□ Sample frameworks can be found in the following

places:

□ Wharton, Ross, Stern, Tuck, Kellogg, and other school

casebooks available on webcafe

□ David Ohrvall “Crack the Case” and Mark Cosentino “Case in

Point”

□ Your knowledge from management, marketing classes and prior

work experience – read the CORE CONNECTOR published by

the Wharton Consulting Club too

□ Your own logical problem-solving

abilities

□ Cosentino and Ohrvall both offer “systems,” but these

systems are essentially combinations of individual case-

type frameworks
□ Use what(1) You are comfortable with, and, (2) works for

you.
Be as original as possible: DEVELOP A FRAMEWORK
THAT IS RELEVANT TO THE CASE PROBLEM
QUESTION AND INDUSTRY!

□ Some sample frameworks are provided in the next few

slides. But these are just meant to get you started – do

develop your own frameworks for each case!

34 Sample framework

1: Increase Profits
Overview Sample
Framework
• Client‟s earnings / profits (or „bottom-line‟ in Income Statement) has
declined or stopped growing

• You need to recommend ways to increase

profits

• Industry - Growth (g) - Revenues (R) - Profits

(Π)
 • Competition - C1 market share (s1) - C2 market share (s2)
- Etc. Market Revenues Costs Customer /
Channel
• Product mix - Points of Parity
/

difference our products and competition

prod.

• Pricing (P) - Competitive parity

in

prices - Can we ↑
prices?

• Volume (Q) - What‟s our

market

share? - Enough capacity

to

meet
demand?

• Client cost structure (Fixed / Variable) - PP&E

(Property,

Plant & Equipment) - Overhead - SG&A - Labour - Materials - IT /

Systems

• Benchmarks - How do our

costs

stack up vs.
others?

• Supplier
power

• Customer Segment - Which segment

do

we serve? - Are they most

profitable?
• Channels - Current sales mix? - Are they low-
cost

channels? - Do these
channels

attract high margin customers? - Incentive

structures /

performanc
e

35 Sample framework 2:

M&A Deal
Overview Sample
Framework
• Client is considering an M&A
transaction

• Your goal is to recommend whether or not to do the

deal Strategic Fit Deal Economics Risk
Assessment
• Basic deal
rationale
 •
Has the company done - Cost synergy-focus?

acquisi
t ions before? - Revenue-synergy

-
Capability test - focus?

•
Organizational cultures - Early-stage co. being

-
Compatible (high % of acquired for technology?

M&A
deals destroy value - Response to competitor

a
s cultures are not move?

compatible
)
• Type of
deal

•
Need to manage PMI (Post - Vertical integration

merge
r integration process) - Horizontal

•
Can investors not diversify - New market entry via deal

b
y themselves - Diversification move

• Valuation (Know basic DCF!) - Revenue &Costs - CAPEX & Working

Capital - PBT (profit before tax) - Taxes - PAT (profit after tax) - Cost of capital
(R) - Value = (PAT / r)
• Deal
Price

• Synergies - Cost and Revenue - New Firm

value

• New Value > Deal

Price

36 Sample framework

3: Outsourcing
Overview Sample
Framework
• Client is considering outsourcing an
operation

• Your goal is to recommend whether or not to do the

outsourcing

• Do NOT make a recommendation on cost savings alone – explore

areas like customer service impact, premium customer segment impact
etc Strategic logic Decision Economics Risks / Others

• Why are they thinking

of

• Current costs (in-

house

•
Risks outsourcing?

operation
)

-
Implementation risk? Political risks? - Cost savings?

• Outsourced
costs

-
Currency risk? - Market entry into BRIC/other

• Initial
investment

•
Partner capabilities markets?
require
d

- Quality of
service - Early-stage co. being

- Outsourcing
consultants

- Lead
time acquired for technology?

- IT/System
investments

-
Technology - Response to competitor

• Net cost
savings

-
Customer service move?
• Stakeholder
mgmt.

• Customers
affected

-
Stakeholders – job loss issues etc. - Which segments?

-
Manage media & community - What are their needs?
IMPORTANT: Sometimes interviews might make a difference between Outsourcing
and Off- shoring: former refers to functions that are done outside firm‟s boundaries.
Latter refers to outsourced functions done in a distant location such as India or
Ireland.

Sample framework 4:
37

Market entry &

Investment and new
technology
Overview Sample
Framework
• Client is considering entering a new market. Your goal is to recommend whether
or not they should enter it

• For these types of cases what is common is that the company is considering
spending money to get some kind of economic return. In addition to seeing whether the
decision is financially sound, you have to test: - Likelihood of implementation success
based on industry conditions and firm capabilities - Do a risk assessment

• Why are they thinking of market entry? - Growth? - Mature current

market? - Response to competitor move?

• Resources and capabilities - What does the firm have that makes them
think they can be successful?

▪Strategic Logic
Economics of
decision Risks /
Others
• New market
conditions

• Execution/entry barriers? -
Total Revenues (R)

- Channel access? - Total Profits

(Π)

- Regulatory barriers? - Growth

(g)
- Does firm have $ to
make

• Competition in a new
market

investment? - C1 market share

(s1)

• Risks - C2 market share

(s2)

- Implementation risk -
Etc.

- Political
risks?

•
Economics

-
Currency risk? Brand

- Investment
required

- Macroeconomic
risk?
▪

Patent

- Expected share of
revenues

▪ Local

expertise/partners

- Expected share of profits - Profitable? Payback

period?

38 Sample framework 5:

Non- profit organizations

Overview Sample
Framework
• Client is a non-profit
organization

• Your goal is to solve the specific problem for the

organization

• Important to display that you understand that non-profits have

fundamentally different drivers beside just the economics of a particular
decision Strategic Rationale Deal Economics Other

• Mission of non-
profit

•
Required capabilities - Health

-
Does non-profit have what it - Education

t
akes to do this well? - Poverty alleviation - Etc.

•
Risks - Response to competitor move?

- How will media perceive

this

• Stakeholder opinions and

likely

d
ecision? reaction
-
Critical to factor in - Donors

s
t akeholder reactions – will - “Customers” – those who benefit
 thi
s alienate donors, volunteers from the non-profit‟s services

e
tc? - Volunteers - Paid staff

• Planned investment - What will it cost? - Do we have the

money?

• Returns, if any - Will we be getting

back

money? - Will organization make /

lose

money on
this?

39 Tips for giving

cases
One should broadly follow the following steps giving
cases to fellow students
Prepare
yourself

Make it
real

Step wise
approach
✓Read the case
thoroughly

✓Make the experience as

close to

✓Introduce the problem statement real as

possible ✓Don‟t give a case that you have not studied yourself

✓Be serious during the case even if you give the case to your
best friend

✓Have any exhibits ready for use during the

case

✓Be ready to take

notes

✓Allow 3~5 mins for candidate to gather her

thoughts

✓Be tough – test candidate‟s

ability

✓Answer any questions that to deal with a

negative vibes from

candidate may have

interviewer

✓ Control the time. Do not exceed 30-35 minutes for the case
portion!

✓Guide the candidate accordingly if she is digressing from

key issue

Ask questions Guide only when necessary Provide honest feed

back

✓Best way to make cases interesting to provide necessary hints indirectly - for ex
by asking related questions

✓Follow the case flow as provided in the original format – It helps in objective
assessment
✓Give out information only when right question is
asked

✓Idea is to let candidate stretch herself and get a feel for real
situation
✓Go back to your notes and think of both strengths and weaknesses ✓Be specific –
What was the mistake and what‟s the right approach ✓Be Honest – its in candidate‟s
best interest to make mistake with you and learn from them

Remember that there is no one answer to any case! A candidate can be creative
enough to take a new approach towards the problem.

40
Other

resources

□ There are a number of other

resources to learn about case

prep. We found the following
particularly useful:

□ Kellogg 2004 Casebook – Pages 5

to 44

□ Ross 2007 Casebook – Pages 3

to 25

□ Older Wharton

Casebooks
41

Content

s
Sectio
n
Page
#
□ Introduction &

Acknowledgements

3 □ Consulting Industry

Guide

6 □ Industry

Overview

□ Firm Overview (11

Firms)

□ Interview

Preparation 19

□ Interview Overview – Fit +

Case

□ Sample
frameworks

□ Other

References
□
Practice
Cases 41

□ 18 Practice

cases

□ Links to other

cases 123

□ Cases from firm

websites

□ Suggested cases from other

casebooks

42
List of Practice
Cases
Case
Description
Page #

□ Case 1: Microfinance in

India

43 □ Case 2: BCG – China

Outsourcing

49 □ Case 3: LEK -

Caskets

54 □ Case 4: Deloitte – Bottled Water

Market

58 □ Case 5: Bain – DeBeers Retail

Venture

62 □ Case 6: Booz – Hospital Administrative

Software

68 □ Case 7: BCG – Jamaican Land

Investment
70 □ Case 8: McKinsey – Academic Performance of Students

in Schools

74 □ Case 9: Bain – Mobile Phone

Insurance

78 □ Case 10: Bain – Organic

Pizza Crust

83 □ Case 11: Oliver Wyman – Traffic Signal

Company

87 □ Case 12: Booz – Travel

Channel

92 □ Case 13: LEK –

Best Buy

95 □ Case 14: McKinsey -

All-Mart

98 □ Case 15: McKinsey -

Loonilever PLC

10
3

□ Case 16: McKinsey –

BevCo

11
1
□ Case 17: Accenture – Mosquito

Repellant

11
5

□ Case 18: BCG – Cash Rich Energy

Company

11
9

43 Establishing the case

Case1: Microfinance In
India
Our client is a large microfinance institution in India that has seen its client base
(largely rural women earning less than $3 a day) growing at over 150% a year. This is
not unusual for private for-profit microfinance institutions in India.

However, the rapid growth has started to generate criticism over perceived high interest
rates and harsh collection tactics of loan officers. This came to a head when the media
and (local & state) started to blame farmer suicides on microfinance-induced over-
indebtedness and harsh collection practices.

What should our client do in-

response? Problem statement
narrative
Guidance for interviewer and information to be provided on request - Microfinance is a
huge untapped market in India. Demand met is $5Bn of $55Bn - Microfinance
Institutions (MFIs) cropped up in the early-late 1990s as non-profit institutions (NGOs) -
In the early-to-mid 2000s, these NGOs began to convert to for-profit institutions in order
to access commercial capital that would help them scale - The average MFI interest
rate is between 25-30% - Because many MFIs are now for-profit , critics contend that
MFIs are making money off the poor through their „high‟ interest rates - At that time, our
client provided financial services to around 1mm women clients in 5 states in India -
Loan officers are all from villages themselves, and are often incentivized according to
number of collections and drop-out rate

44 Sample solution element – issue

tree & qualitative analysis

Candidate may propose analysis /
action in:
Market
Analysis/Environment

External
Response

Internal
Response
• Is this an industry-wide
perception

• Explore competitive
environment

•
Training programs problem ?

• Who are players?

Private vs

• for loan officers to

ensure

• Explore criticisms from

government

governme
nt
 n
o harsh collection practices and media (what are motivations?

• Do they use harsh

collection

a
re used Are they purely altruistic or

practices? Do
we?

•
for area managers to deal something more nuanced?)

• What interest rates do

they

with press and criticism

charge?

• Explore possibility of
reducing

• Opportunities to strengthen
brand

interest rate and

image? Possible follow-up and guidance to interviewer
Possible follow-up and guidance to
interviewer

Possible follow-up and guidance to

interviewer
• Main critiques are : “high” interest rates and harsh collection
tactics

• Important note: Our client (and other private MFIs) compete with government
providers of microfinance – majority of government voter base is rural poor, so private
MFIs are stepping on purview of gvnt (govnt view)

• Other private MFIs are allies, though two have engaged in harsh collection
practices. Our client has disassociated from them.

• Government programs are highly subsidized (world bank), so can charge much
lower interest rates. Still, their default rates are much higher. Show cost of borrowing
slide.

• For interest rate exploration, wait for them to ask about cost structure, and then
show cost structure slide. Ask them to analyze

45 Handouts &

Math
There is a lot of controversy over interest rates – should our client cut interest rates?
Responder should Math Question

ask about 1. cost structure of MFI/ 2. competitor interest rates and 3. ability of clients
to repay loans. For #3, ask responder to calculate returns on investment.... Overall
approach, good shortcuts & solution
Math question 1. A typical investment by a woman MFI client is to
buy a - For cost structure of the MFI – show chart. Shows that admin costs and cost of
lending are extremely high, and profits are less than 2%. Thus, interest rates seem ok.

buffalo. What is her return on investment in this decision? Supporting numbers (provide
if asked): Cost of buffalo: 10,000 Rs (Rupees) - For competitor interest rates - show bar
graph. This shows that compared to government programs (state bank programs
mainly), our client has a lower cost of borrowing because we have no travel costs (our
loan officers go to our clients each week to collect interest payment or deliver loans)
and client does not take bribes. However, Govt banks

Useful life of a buffalo: 1 year (300 days per year) Cost to maintain buffalo: Rs 2 per
day Milk per buffalo per day: 8 litres Market price for litre of milk: Rs 8 per litre Ignore
time value of money, buffalo siring progeny and other uses of buffalo heavily subsidize
their loans and charge lower interest rates that do not reflect the true cost of of
borrowing

Answer: ROI =
(Revenue – Cost - Investment) / Investment - For ability to repay, resopnder should
answer in two parts: 1. what is default rate = (less than 2%) 2. Calculate returns on
investment Answers
= Milk in litres per day * # of days buffalo can provide milk * price of milk * of useful
years – investment – cost per day) / Investment = ((8*300*8*1) – (10000) –
(300*1*2))/(10000) = 86% over 1 year investment period (Note: this is actually much
higher than the reqd. int. rate of 23- 25%)