Cracking the Case

A Rough Guide to Case Interviews

We want applicants to come into case interviews knowing what to expect –
this makes for a much better debate and exchange of ideas
Purpose of This Document

 Case interviews are used by OC&C as a way of separating the really great candidates from the
very many high-calibre applicants that we get each year

 We think that coming into these interviews with an understanding of what is expected of you
makes for a much more engaging debate, and allows you to better show us what you can do

 To help with this, we’ve pulled together a short guide to case interviews, including:
– A few reasons why OC&C use case interviews
– A short outline of the steps to solving a case
– Top tips for candidates, collated from some of our interviewers and from successful candidates
– Some worked examples of questions you might come across in interviews

 We’ve also included some background on OC&C to help you understand about us and how we
are different

 We hope you find this helpful, and especially hope to see you across an interview table soon!

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Agenda

 Introduction to OC&C

 How to Approach Case Studies

 Frameworks and An Example Case

 How to Apply to OC&C

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OC&C is a leading strategy consultancy, founded in London 28 years ago

London Paris Rotterdam Hamburg Warsaw Düsseldorf Istanbul

Background
OC&C’s success has translated into
consistent growth for our business
 Founded in 1987
 Currently, 14 offices worldwide and more
than 75 partners
 Global coverage through our hubs
 Our client roster includes some of the
Boston Belo Horizonte São Paulo Mumbai New Delhi Hong Kong Shanghai
largest corporations and most innovative
challengers in the world

OC&C’s Global Reach

Presentation1
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We work with senior management teams on a range of strategically
critical issues

Strategy Business Transformation Transactions / M&A

 Top UK and international  Long term client relationships  Corporate clients and private
companies equity
 The biggest UK and international
 Senior management companies  Big and small deals across sectors

 Typically 4 – 8 weeks  Typically 8 – 16 weeks  Typically 3 – 6 weeks

Answering the big questions: Making companies lean and fit: Advising on:
 How to grow?  Realising Change  Whether to buy

 How to develop?  Reducing Complexity  Potential for growth

 How to compete?  Building new capabilities  Post acquisition strategy

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Why OC&C

Strategy and  Strategy specialists: we don’t do long IT implementations and never will
Sector  More, shorter projects giving exposure to a huge variety of issues, industries and clients
Specialists  Focus on a subset of industries: the ones that we find most interesting

 Still growing rapidly, with plenty of opportunity for you to contribute to that growth eg by
Entrepreneurial spending time helping establish a new office or getting involved in running the firm
Culture  Friendly and informal across all levels of the firm – around the office, at the Xbox, and
after work in the local bar

 Contributing to solving our client’s toughest problems from day one

Rapid Progress  Continuous feedback and formal 6-monthly appraisals
 An unrivalled development environment: you will be continuously stretched

 Top-quartile remuneration and training

Market-leading
Rewards  Extra curricular benefits including Personal Development Banks, sponsored MBAs, our
annual away weekend, International Training Week, team dinners, and much more

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Agenda

 Introduction to OC&C

 How to Approach Case Studies

 Frameworks and An Example Case

 How to Apply to OC&C

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Case interviews are a microcosm of a real project, so are a great way for us
and for you to evaluate your fit with strategy consulting

Benefits of case interviews for us... Benefits of case interviews for you...

 Opportunity to see how a candidate thinks  Gives an insight into the type of work we do,
about business problems and test a the sectors we operate in and the kind of
candidate’s problem solving ability and skills problems we solve
in:
 Case interviews are a great way to
– Structured, logical thinking
understand what consulting projects look and
– Issue Identification feel like
– Analysis – Can be a good, early-indicator of whether
consulting is right for you
– Creativity
– If you don’t enjoy solving problems during a
– Business Judgement
case interview, it may be an indication that
– Numerical Ability you will not enjoy the type of work that we
do
– Communication
 Case interviews make for a much more
interesting conversation than the alternatives

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There are four basic steps you should go through when tackling any case

Listen and Clarify Structure Analyse Conclude

Make sure you Think about how you are Gather the information Wrap-up your findings
understand the going to solve the you need to solve the into clear
question: problem before diving in: case: recommendations:

 Listen carefully  Structure problem  Ask questions and  Summarise your findings
collect information and draw out key facts
 Take notes if it helps  Identify key issues and
you prioritise  Develop, test and refine  Don’t just repeat the
hypothesis answers to your analysis
 Ask clarifying questions  Formulate an initial – ask yourself “so
as needed hypothesis / hypotheses  Hone in on the solution what?”

 Take time to evaluate  Articulate approach and  Verbalise your thought  Make clear
the information given hypothesis process recommendations

 Add next steps

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However, cracking a case isn’t about following a process: you will need
intelligence, creativity, common sense ... and some elementary business
knowledge

 The key to solving any case is to apply intelligence, creativity and common sense in a structured
way

 We do not expect you to know anything about business beyond what an observant and well-read
undergraduate will have picked up in their normal lives

 However, if you want to hone your business sense, we would encourage you to read and think
about some businesses you are interested in and look at some sample case interviews (see later
for an example and some recommended sources)

 Another way to practise is to understand some of the common business “frameworks” eg,
– Profit = Revenue - Cost = Price x Volume - Cost
– Market drivers analysis
You can see worked examples of some of
– Segmentation these later in this document, or read about
them online
– Value/activity chain analysis
– Porter’s 5 Forces

 However, interviewees can fixate on a framework – often the first one which pops into their head

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which isn’t necessarily appropriate to the case in question: frameworks are no substitute for
thinking!

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Finally, some top tips from our interviewers...
Do
 Ask clarifying questions if you are unsure about
something or need additional information about a
unfamiliar market or industry – there’s nothing more
frustrating than someone racing off in completely the
wrong direction
 Figure out how you are going to approach the
problem before you dive in to the analysis
 Think out loud so that the interviewer can follow your
thoughts
 Write down information that you may need later
 Use paper to draw out your structure and calculations
 State your assumptions clearly as you go along
 Focus on the important 20% that solves 80% of the
problem
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Don't
 Worry about getting the ‘right answer’; it’s much more
about your thought process and logical reasoning
 Panic if you are stuck or make a mistake – we all do.
The important thing is that you recover and move on
 Get bogged down in the details or stuck at one topic
(watch out for the interviewer’s hints to move on)
 Take an overly complex approach to the problem –
keep it simple
 Ask for information that you do not need
 Worry if you did not finish the case; this happens
often and does not mean you performed badly
 Forget to check your numbers (do a sanity check!)
 Force a framework onto a problem
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... and some words of advice from recent successful candidates

 “When solving a case, think about the business as if it were your own – What would I do if this
were my business?”

 “Take the time to think, and have confidence in your ideas. Defend your logic if questioned!”

 “... but if you’re actually told that you are going in the wrong direction, then drop it and move on”

 “Talk your thoughts during the interview”

 “Practice cases with your friends or – even better – a friend who works in consulting”

 “Don’t just dive for an answer, structure your thinking and use the discussion to be creative and
explore ideas with your interviewer”

 “Listen carefully, and take a hint”

 “Practice doing simple math on paper and mentally, and don’t forget to round to simpler
numbers”

 “When market sizing, use your own experiences and frame of reference”

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Agenda

 Introduction to OC&C

 How to Approach Case Studies

 Frameworks and An Example Case

 How to Apply to OC&C

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Example Framework #1
How to apply ‘profit = revenue - cost’ ... to Swedish furniture

The problem: Swedish Furniture Co’s profitability has been declining over the
past two years. Please use the facts provided to identify where the problem lies

The approach: use the profit = revenue – costs framework ... and to translate the facts provided (in
to structure your thoughts... italics) into their implications for profit

“The Krona has strengthened”

 ... hurting our export
Sales volumes have competitiveness
fallen

“Competitors have discounted”

Revenues have been
falling  ... causing market share loss
No evidence of change
in prices
Profit has fallen

Fixed costs don’t

Costs have been appear to have moved “New logging restrictions”
rising
 ... have increased wood prices

Variable costs have

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risen
“Trade union action”
 ... has increased wages

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Example Framework #2
How to apply ‘market sizing’ ... to golf balls

The problem: As part of our study of the UK golf market, estimate the market size for golf balls

The approach: use a market sizing ... and make sensible ... then multiply through to
framework to structure your thoughts... assumptions ... get the answer
Determine the
estimated number of # of Customers  Golf is played by 10% of the UK population 60m population x 10% = 6m players
customers in your Targeted
market

# Usage
 Golf is played from April to October. Regular player
Think about their Occasions per
Year
 There are ‘regular players’ and ‘infrequent 6m players x 30% = 2.4 m regular players
usage / purchase
players’ 5 months x 4 rounds = 20 rounds per year
behaviour, and
– Regular players play 4 rounds per month => approx 48m golf balls to replace
whether there are any
and represent 30% of players
distinct segments of
# Purchases per – Infrequent players play 1 round per month Infrequent player
customers
Usage Occasion and represent 70% of players 6m players x 70% = 5.6m seldom players
 On average, a player loses one ball per round 5 months x 1 round = 5 rounds per year
they play => approx 28m golf balls to replace

Estimate the price the

customer might may Price per Unit  An average golf ball costs 50p (we will assume NB: a real case study would
per unit here that regular and infrequent players buy the probably involve a more
same balls complex market sizing

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Total Sales in
Market (28m + 48m) x 50p = £38m per year

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Example Full Case: Imported Whiskey in an Emerging Market
Introduction you would get from the interviewer

This case involves a real life consulting assignment with a manufacturer and distributor of whiskey.
Introduction This is a typical “conceptual” case; i.e. there will be no numbers, only problem identification and idea
generation will be tested.

The client was a first mover in promoting imported whiskey in bars, discos and karaoke clubs, which
was a fast growing business in an emerging market about 10 years ago and had experienced
tremendous success – an annual growth of over 30%.

The client penetrated the channel with whiskey through aggressive marketing and partnering with
top / key outlets in cities, offering sponsorships on events and volume rebates in return for exclusive
Background
or preferential sales on-premise. The growth has slowed down in the past few years to about 10%
per year and profit margin is also declining.

The key task is to describe and understand the reasons for the recent slow down and fall in
profitability. Once that has been completed, the next objective is to explore a range of strategic
options for the company to rebuild its growth platform.

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Example Full Case: Imported Whiskey in an Emerging Market
Interview Questions and Good Answers (1/2)

First Question:  What information would you require to help explain the slowing down of growth?

 One needs to understand what has been driving the slow down of the business. You would need to consider the market and competitive
environment for whisky.
– The tremendous growth the client experienced was driven by the growth of the bar/disco channel, which is peaking as the number of bars
Good Answer: and discos are no longer increasing
 The category has reached a high share of throat in the channel and is unlikely to grow by increasing penetration
– Competitors saw the opportunity and started to invest following the client’s success
 Competition has eroded some share from our client

 All of the above, but considering also the life cycle and upgrade path for consumers as well as the aging of brand image
– The client has been using the same advertising campaign for 5 years and has not been able to come up with new concepts
 Aging brand image impairs ability to recruit new consumers as well as keeping existing consumers
Excellent Answer:
 Lack of aspiration for consumers to up-trade to more premium SKUs
– Category life cycle is short as consumers tend to go less to bars/discos as they age and the first batch of recruits are leaving the market at
this moment

Second Question:  What is driving profitability down?

 One needs to understand the forces in the market that affects the bottom line of luxury consumer goods
– Competition has driven prices down (or limited room for price increase) and has limited the margin growth
Good Answer: – Competition has driven up costs in trade marketing costs as outlet owners have more bargaining power to choose which manufacturers to
partner with and demand more sponsorships and rebates
– Imported goods are subject to currency fluctuations

 All of the above, but considering also the profit per outlet aspect
Excellent Answer: – As the business expanded, smaller and weaker outlets (with lower return on investment) began to partner with the client as competitors
were also aggressively seeking outlets, driving down the overall return

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Example Full Case: Imported Whiskey in an Emerging Market
Interview Questions and Good Answers (2/2)

Third Question:  What are the potential strategic options?

 Revitalize brand with new campaign to improve competitiveness
 Premiumize the market (given revitalized image) and encourage consumers to up-trade to higher value products (better margin
and higher turnover without increasing volume consumption); making price competition irrelevant
Potential Areas to  Seek opportunities in rural areas and invest strategically to capture less competitive markets
Explore:
 Explore new channels such as in-home or restaurant consumption to catch consumers who leave the bar/disco channel
 Innovate to improve on delivery and create competitive advantage
 Improvements in outlet selection

 Creative / resourceful candidates may discuss one or two:

Additional
Discussion:
– Counterfeit eroding sales and hurting brand equity in emerging markets
– The company can invent Innovative ways like new drinking rituals to increase consumption (drink more per occasion)

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Many more example cases can be found on our website, and further guides to
case interviews can be found online
Suggested Further Reading

 For more case examples and information visit our website at: www.occstrategy.com

 Any of a multitude of free or commercial consulting books and material may be useful in preparing
for the interview
– Wharton Consulting Club
– University of Chicago Booth Management Consulting Group
– Caseinterview.com
– Wetfeet
– Ace the Case

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Agenda

 Introduction to OC&C

 How to Approach Case Studies

 Frameworks and An Example Case

 How to Apply to OC&C

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You can find out more about OC&C and how to apply on our website –
applications open in October
Recruitment Information
 The recruitment deadlines for the 2015/16 season are:
– Associate Consultant (Entry Level)
 Vacancy opens: Tuesday 1 September 2015

 Application deadline: Sunday 8 November 2015

– International Strategy Workshop, 18 – 22 November, France

 “4 days in the life of a consultant”

 Vacancy opens: Tuesday 1 September 2015

 Application deadline: Sunday 25 October 2015

– Undergraduate Summer Internship, 8 weeks in July and August

 Vacancy opens: Thursday 1 October 2015

 Application deadline: Sunday 17 January 2016

 To apply for a position, please visit our website and submit your details online:
http://www.occstrategy.com/careers

 Like OC&C London on facebook and keep up to date with the latest events and publications

 Follow us on twitter @OCCcareersuk

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 If you have any other questions, please visit our website, come to an event or email us on:
recruitment@occstrategy.com
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