MBA Cases For Corporates and Consulting 2020 - 18sep2020 - Canvas
MBA Cases For Corporates and Consulting 2020 - 18sep2020 - Canvas
MBA Cases For Corporates and Consulting 2020 - 18sep2020 - Canvas
Corporates and
Consulting
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What we will cover today
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What’s a case
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How interviewers ask case questions
• Simpler questions
• Internal strategy groups – similar to consulting More formal case prompt
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Types of cases
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Components of a case
Consulting Firms
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Sample case
Situation
“Vitamin Store” sells health and nutrition products
e.g. vitamins, dietary supplements, herbals.
Profits have been declining.
CEO wants to know why and what to do about it.
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Components of a case
Consulting Firms
~1-3 mins
Clarify Structure Analyse Brainstorm Recommend
• Confirm the scope
• Understand the
business model
• Clear unfamiliar
terminology
• Repeat
anything
you may
have missed
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Components of a case
Consulting Firms
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Situation
“Vitamin Store” sells health and
nutrition products e.g. vitamins,
Presenting your structure,
dietary supplements, herbals.
Profits have been declining.
i.e. plan of action
CEO wants to know why and
what to do about it.
Internal External
Revenues Costs Industry
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A note on frameworks
• Corporates want to see how you work and use resources to come up with
a fit-for-purpose solution
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Components of a case
Consulting Firms
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What it means to be hypothesis-driven (1)
Standard answer
“I’d like to look at industry growth first.
Is there any data on this?”
Interviewer:
Your structure makes sense. Hypothesis-driven Answer
Where would you like to start? “Given the vitamins industry, there are more and more
people who are focused on their health and are looking
for products to supplement various needs and diets. At
the same time, there are more players in the market
and many big chain grocery stores like Walmart have
their supplement products. This could be squeezing
Vitamin Store’s profits. Therefore, I’d like to confirm if
this is really the case.”
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What it means to be hypothesis-driven
(continued)
Answer
“Okay, so new competitors are affecting Vitamin
Interviewer: Store’s profits. Unless there is anything else that
Your assumption is right. needs to be discussed about the industry, I’d like to
There are more competitors now move on to analysing the company’s profitability.
that are hurting Vitamin Store As new competition probably hurts revenues,
let’s look at that first.”
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What it means to be hypothesis driven
(Example 2)
Example 2
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What it means to be hypothesis driven
(Example 3)
Candidate:
Since we know volume is the problem, this could be because the market size has
contracted or that the client's market share has been reduced. Do we know how
each of these have changed?
Interviewer:
The market size has remained the same, but our market share has reduced.
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Components of a case
Consulting Firms
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Analyse, interpret and compare data
Interviewer:
Here are some industry revenues
data. What do you observe?
Answer
“From 2016-2018, industry revenues increased by 30% ($13bn / $10bn)
But, Vitamin Store’s share of revenues decreased ~2% to ~20% due to new players like Whole Foods
In 2016, revenues for Vitamin Store were 25% of $10bn or $2.5bn.
In 2018, revenues were ~20% of $13bn, or $2.6bn.
So revenues increased only $0.1bn or $100m in 2 years ($2.6bn - $2.5bn).
If revenues grew in line with industry (30% as above), it would have been ~$3.25bn in 2018 ($2.5bn x 1.3)
This mean that if profits declined, then margins also must have declined”
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Always describe the “So What?”
What can you infer?
Interviewer:
Vitamin Store provided this
regarding store profits.
What do you make of it?
Answer
1) Need to figure out what’s the market size first Profit Impact
Price Volume 2) Current market share for Vitamin Store for
$10/month Target Population: this segment of 18-34 year old men is 30%;
$120/year “US population is 300m, men is 50% so 150m people 30% of $1.2bn is $360m in revenues
Assume average life expectancy is 75 years, 3) Increasing market share to 35% with
18-34 years is 16 years, or ≈15 years the new marketing strategy:
that’s ~1/5 or ~20% of 75 years 5% of $1.2bn = $60m
20% of 150m men is 30m men age 18-34 Revenues increase by $60m
1 in 3 men buy supplements: 1/3 of 30m men age 18-34 = 10m
Improved total revenues = $420m
($360m + $60m = $420m)
Market size for this segment, men age 18-34: Profit margin is 40%
10m x $120/year = 40% of $60m
$1,200m or $1.2bn per year Profit impact: Increase of $24m
So What: “Given Vitamin Store’s revenues increase by $100m in the last two year,
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a $60m revenue increase will be significant booster”
Components of a case
Consulting Firms
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Structured brainstorming
Thinking in buckets will help you generate more ideas;
you need ~10 concrete ideas
Interviewer:
How do you think we can
improve profits?
Structured Answer
Revenues Costs
Unstructured answer Increase product range and mix to suit more Fixed costs
diverse customer segments
“We can increase profits • Shut down stores with low
through marketing, reducing • Vegetarians, gluten-free, diabetics, profits
costs, increasing product range different life stages
• Relocate stagnating stores to
and selling through more up-and-coming locations
channels” Establish distribution partnerships to widen
• Improve staff allocations and
customer reach
contracts
• Pharmacies, retailers, online grocers
Variable costs
• Local supermarkets, independents
• Better inventory forecasting
• Reduce transportation and
• Marketing in doctors’ offices, schools, storage costs
garden centres
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Components of a case
Consulting Firms
~1-3 mins ~2-3 mins ~15-20 mins ~2-3 mins ~2-3 mins
Clarify Structure Analyse Brainstorm Recommend
• Summarise findings
• Highlight potential
issues or risks
• Suggest next steps
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Be structured in your summary,
~1-2 minutes
Interviewer:
The CEO just walked into the room.
What would you tell her?
Answer
“Profits are declining due to new competitors such as Whole Foods. At the same
time, a significant number of stores are facing negative profits. We need to focus
on either shutting these stores down or increasing their profits as well as those of
other stores. We also considered a marketing strategy which can increase profits
by $24m.
If we shut down stores, this could be sending mixed messages to the market and
weaken staff morale.
In terms of next steps, we could look at drivers of differences in store profits and
which customer segments to focus on. We should also monitor the competition
and consider how we can prevent more loss to the new players.”
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Components of a case
~1-3 mins ~2-3 mins ~15-20 mins ~2-3 mins ~2-3 mins
Clarify Structure Analyse Brainstorm Recommend
• Confirm the scope • Lay out the buckets you want to • Examine data, interpret • Generate ideas typically • Summarise findings
analyse charts, connect to grow profits, increase
• Understand the information from exhibits market share, expand • Highlight potential issues
business model • Prioritise buckets in order of company or risks
importance, be hypothesis-driven • Calculate e.g. revenues,
• Clear unfamiliar profits, margins, market • Present ideas in buckets • Suggest next steps
terminology • Make sure buckets are MECE size, pricing, ROI, break- not a laundry list;
• Repeat • Use specific industry terminology to evens, NPV, IRR, etc. need ~10 ideas
anything demonstrate you understand the • Lay out your
you may client’s business methodology; present
have missed E.g. Fitness centres: calculations in a
membership fees (not price), structured way
number of members (not volume),
gym equipment (not assets).
Airlines: ticket prices (not sales),
passengers (not volume),
fixed costs = labour, planes, airport
rent, variable costs = fuel
• Take ~1 minute to do plan, then
~2 mins to present
Corporates
• Simpler analysis stage i.e. less data and calculations
• Internal strategy groups – similar to consulting
Ultimately depends on the interviewer
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Interviewer’s case style
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What interviewers are looking for
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Case Evaluation Form
Score
Core Skills Interviewer Comments
(1-5)
STRUCTURE
- Structured and logical approach throughout the case
- Structured methodology to solve issues and present analyses
- Organised brainstorming
- Prioritised issues
PROBLEM SOLVING
-
-
Drew insights, connected dots from data and charts
Showed business acumen, considered second order impact
EXAMPLE
- Identified relevant info, justified rationale
- Understood the big picture, did not lose focus
-
-
Comfortably adapt direction based on new information
Make actionable recommendations Consulting case
QUANTITATIVE
-
-
Analysed and calculated efficiently with clear methodology
Used shortcuts and rounding appropriately
evaluation form
- Calculated accurately with clean results in desired formats
COMMUNICATION
- Concise, to the point
- Take ownership through the case with hypothesis driven approach
- Used relevant terminology for company/sector
- Good energy and body language, enthusiastic
- Conversational, engaged
1 2 3 4 5
Lacked basic Occasional evidence of skills, Inconsistent demonstration Demonstrated skills Consistent performance,
understanding
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28 of skills
case fundamentals through case help to progress with case development areas with clear spike(s)
What’s more important, fit or case?
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Types of fit questions
Relevant for both corporates and consulting
• What are…
− Your strengths and weaknesses
(commonly disguised as: “What
would your manager/colleague say
about you?”)
− Your medium term plans
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Preparing your fit answers
Relevant for both corporates and consulting
• Be concise
− About 2-3 minutes per answer.
− Be sure you spend about 50-60% of airtime on the ‘action’ part of your answer.
− Some corporate interviewers may deep dive into a particular experience, which is similar to
McKinsey’s personal experience interviews (PEI). The answer for each sub-question should also
be about 2 min, even if you spend 10-15 min in total on that experience.
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Corporate case preparation guide
Focus on:
Common Corporate Cases
Laying out your • Market Sizing
1 Structure
methodology
• Pricing
• New Market/Customers
Knowing the company
3 Industry
and industry • Reaction to
Competitor/Trends/Risks
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Case Evaluation Form
Score
Core Skills Interviewer Comments
(1-5)
STRUCTURE
- Structured and logical approach throughout the case
- Structured methodology to solve issues and present analyses
- Organised brainstorming
- Prioritised issues
PROBLEM SOLVING
- Drew insights, connected dots from data and charts
- Showed business acumen, considered second order impact
- Identified relevant info, justified rationale
- Understood the big picture, did not lose focus
- Comfortably adapt direction based on new information
- Make actionable recommendations
QUANTITATIVE
- Analysed and calculated efficiently with clear methodology
- Used shortcuts and rounding appropriately
- Calculated accurately with clean results in desired formats
COMMUNICATION
- Concise, to the point
- Take ownership through the case with hypothesis driven approach
- Used relevant terminology for company/sector
- Good energy and body language, enthusiastic
- Conversational, engaged
1 2 3 4 5
Lacked basic Occasional evidence of skills, Inconsistent demonstration Demonstrated skills Consistent performance,
understanding
london.eduand needed a lot of help to go of skills; needed some majority of the time, minor strong evidence
34 of skills
case fundamentals through case help to progress with case development areas with clear spike(s)
Consulting case preparation guide
Stage Action
Familiarise Read LBS Case Book, Consulting Club Preparation Guide, firms’ websites on interview process and case examples.
1 This should take no more than half a day.
From 1st Oct 1:1 sessions with sector advisors and coaches start
From 4th Jan – mid Feb Consulting applications due; interviews commence
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Resources for corporate interviews
*Rocketblocks access:
• Go to: https://www.rocketblocks.me/schools/LBS
• Enter school code: lbscareercentre
• Sign-up w/ $40 USD co-pay for unlimited 1-year access
• Issues: [email protected]
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In summary
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What should I do now?
• Motivation:
− What do I like about consulting, tech, etc.?
− How would this role/career help me grow?
Reflect − Will I enjoy the lifestyle? How will it affect me and my family? Where will I/we thrive?
• Skills:
− What do I already have, what do I need to develop in the short and medium term?
− How can I differentiate myself for internships and ultimately, for full time recruitment next year?
• When and how you will develop your strongest application documents and case/fit
interview skills?
Plan • What are the application timelines?
• Should I pursue a consulting internship or hold off until full-time applications?
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Questions?
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