Performance Improvement MBA Case Study October 18, 2012
Agenda Case study interviews Purpose of case study Breaking apart a case Role of Interviewer Evaluating candidate s response Page 2 2
Case study interviews Page 3
Case Study Interview - Overview A case interview presents a candidate with a business problem and asks him/her to: Analyze key issues Identify and evaluate possible solutions Provide interviewer with a logical hypothesis and recommendation Case study interviews allow Interviewer to assess candidate s: Analytical skills Problem solving skills Communication skills (listening, verbal communication) Understanding of the business Ability to think creatively Case interviews also give candidates a feel for the type of work we perform for our clients There is not necessarily a right answer Candidate should be evaluated on their thought process and analytical skills Page 4 4
Market Size Market Share Growth Competitors Price Variable Cost Equipment Utilities Labor Materials Production Breaking apart a case study interview Case Introduction Case Background Candidate establishes Framework Problem Description VOLUME Profits declined in the past 5 years CONTRIBUTION MARGIN FIXED COST 1 2 Case Development Candidate should follow framework Identify Key Issues May ask additional questions 3 Case Closure Key Issues Risks Recommendations 4 Page 5 5
Step 1: Case Introduction Interviewer sets context and expectations Interviewer gives candidate a hypothetical business situation and asks for recommendation Give candidate time to evaluate the information provided in the case Candidate asks clarifying questions Interviewer can give additional information to candidate (included in Interviewer Copy) Page 6 6
Step 2: Candidate establishes framework Candidate should utilize a framework to address the issue and come up with a hypothesis There are many frameworks and tools candidates may use in their analysis: Decision Trees Supply/Demand Cost/Benefit Marginal Cost/Marginal Revenue Fixed vs. Variable Cost 4C s (Competition, Cost, Capabilities, Customers) 4P s (Price, Place, Promotion, Product) 5C s (Character, Capacity, Capital, Condition, Competitive Advantage) SWOT Analysis Market Segmentation and SPSG (Size, Profitability, Share, Growth) Financial Analysis: Income Statement/Balance Sheet, Fixed/Variable Cost, Breakeven, CAPM, WACC, NPV, Cost Drivers, Payback, IRR, ROI, etc Graphs Page 7 7
Step 3: Case Development Candidate should follow their framework to ask questions or make assumptions Identify Key Issues Some cases may include handouts and attachments to provide candidates with additional details about the case and help interviewers assess the candidate s ability to quickly hone in on relevant data Page 8 8
Step 4: Case Closure Candidate identifies key issues and provides recommendation Interviewer should use probing questions to evaluate candidates choices (i.e. Why did you choose that method, What considerations did you take into account, etc.) Interviewer asks wrap-up questions (why did you go with this approach, etc.) Page 9 9
What should the candidate demonstrate during the case interview? Ability to summarize the business issue Candidate should take notes Candidate should utilize an analytical framework Candidate should walk the interviewer through the thought process Think through the issues & assess potential solutions Follow the analytical framework or adjust as new facts are uncovered Provide a structured response Ask insightful, probing questions Actively listen to hints provided Walk through the logic when evaluating issues and possible solutions Recommend strategy and implementation activities Gather enough information to formulate recommendations Summarize key points Respond within scope Page 10
Common mistakes candidates make during a case study interview Jumping to recommendations w/o a thoughtful analysis Throwing out marketing tactics w/o grounding them in the situation/strategy Weak analysis/understanding of the situation Not taking the interviewer through their thought process Page 11 11
Case Study Evaluation: Example of a 5 rated case interview Candidate: Asks thoughtful, insightful questions Successfully synthesizes information from the case that is relevant Presents ideas utilizing a framework or methodology (i.e. People, Process, Technology) Uses quantitative and qualitative data to support recommendations Appears comfortable in the case interview setting Demonstrates excellent interpersonal skills Responds to the questions in the time frame allotted Utilizes the interviewer as a Manager on the job Demonstrates professional presence throughout the interview Page 12
Case Study Evaluation: Example of a 2 rated case interview Candidate: Does not ask clarification questions Simply repeats the information in the case Cannot sort through the relevant and irrelevant data Does not utilize a framework for identifying issues and making recommendations Does not support recommendation with additional data or assumptions Exhibits lack of professional presence Does not exhibit structured thinking or logical thought process Page 13
Questions? Page 14
Contact Information Trebor Wright Senior Manager Ernst & Young Advisory (Performance Improvement Finance) Trebor.Wright@EY.com Page 15