## How Answer A Case Study

## Case Study Interview Examples: Questions and Answers

You will need to prepare for an interview where case study questions will be asked. While preparation is required for every job interview, extra time is required to adequately prepare for case study interviews.Providing an answer to a case study question involves much more than simply recounting the issues and problems set forth, it includes identifying the most important issues, employing sound and logical analysis, developing an action plan for addressing the problem(s) and making recommendations. Depending on the firms you're interviewing with, and the industry you work in, case study questions can be presented in verbal or written format, and address a number of topics.

In case interviews, it's not uncommon for interviewers to exclude important details when asking candidates to resolve hypothetical business problems presented. It's okay to ask interviewers for more information, and it's expected. They want to see if you can identify what information is important, and what is not.

Occasionally, interviewers provide no detail at all to test your analytical skills when adequate resources are unavailable. In these situations, it's okay to make assumptions, but they must be based on sound logic and analysis of information that is provided.

Interviewers asking case study questions are primarily concerned with how effectively you can analyze a problem, determine key factors, brainstorm ideas, and propose workable, pragmatic solutions that are supported by your analysis.

**Answering Case Interview Questions**

Where a specific framework for analysis isn't readily available or applicable, a general framework or analytical approach can be applied. The most important thing is that your approach to answering the case interiew question is structured and logical.

Regardless of the type of case you're presented, there will likely be a few main parameters and several factors that influence those parameters. The first thing you want to do is identify the parameters and factors, the then determine which are key to the case output.

For example, assume the case involves a company's declining profitability. From your initial review of the case information you determine the main parameters to consider are total revenues and total costs.

After defining the two main parameters, you'd then drill down further to the factors influencing each of the parameters you've identified. You determine the factors influencing total revenues are average price of goods sold and volume of goods sold. And for total costs, fixed costs and variable costs.

With both the case parameters and factors clearly identified you give yourself the ability to steer the conversation and begin to identify possible solutions. To identify areas of concern, you'll want to explore the history of the four influencing factors. At the end of your discussion with the interviewer you may determine that it's rising variable costs that are having the biggest impact on profitability. You'll then drill down even further to determine what is causing variable costs to rise and come up with more specific recommendations.

Building a graphic representation (tree, decision diagram, etc.) of parameters, factors and other influencing elements will help you structure your thought process, keep from missing key aspects of the case, and make a strong argument for the recommendations you'll make.

Using a framework or structured approach to developing a recommendation for a case study interview question provides the added benefit of giving the interviewer something to take back and present to his or her superiors to make the case that you're the right person for the job.

Whatever you do, don't force-fit frameworks. If a particular framework doesn't apply to the case, don't use it. Most frameworks incorporate universal concepts that can be applied to various business issues. Use the concepts you've learned in school or through prior work experience to support your analysis of the case. Show your interviewer that you understand these business concepts well enough that you can apply them to the specifics fo the business issue being presented in the case.

Below we're going to present several case interview questions organized by question type. To perfect your ability to perform well in case interviews, we recommend reviewing each question and then developing a logical framework or approach for answering each one.

**Standard Case Interview Questions**

- What would be your approach for introducing a product into a foreign market? What are the risks and benefits to consider i.e. producing in your own country vs producing in the new country, etc?
- Company ABC is struggling, should it be restructured? Identify the three main problems it's facing. What is the most important problem the company is facing? How would you recommend the company address this problem? How would you turn this company around? Provide your reasoning for your recommendation(s).
- A toy company has been experiencing decline sales for the last two seasons. Research suggests that introducing several new product lines is the solution. Develop a marketing strategy for the company's largest product line, including pricing, product packing, etc.
- A large chain of retail clothing stores is struggling with profitability. Bases on your review fo the company's financial statements, what problems can you identify? Can this company be turned arounds? How would you go about deciding?
- A new Eddie Bauer Store is being opened up in London. Discuss all the marketing issues regarding the opening of this new location.

- Take in information quickly and remember what you hear.
- Identify key issues, prioritize and logically solve problems.
- Make quick, yet accurate, decisions.
- Manage time efficiently.
- Perform under pressure.
- Be aware of resource constraints.
- Identify customer needs.
- Be original and creative.

**Market Sizing Case Interview Questions**

- Please provide the total weight of a fully loaded Jumbo Jet at the time of take off.
- How many light bulbs are there in the United States?
- How many photocopies are taken in the United Kingdom each year?
- How much beer is consumed in the city of New York on Fridays?
- How many people sell AMWAY products in the United States?
- If there are 7,492 people participating in a tournament, how many games must be played to find a winner?
- How many golf balls will fit in the Empire State Building?
- How many car tire are sold in Canada each year?
- Given thhe numbers 5 and 2000, what is the minimum number of guesses required to find a specific number if the only hint you're given is "higher" and "lower" for each guess made?
- How do you determine the weight of a blue whale without using a scale?

- Take time to think before you answer the question.
- If given a pen and paper, take notes and write down key information. Use the paper to make calculations, write down ideas and structure your answer.
- Ask additional questions if you feel you are missing information. The interviewer is often expecting you to ask to find missing information.
- Use lateral thinking and be creative. There isn't always just one right answer. Just make sure your answer is backed up by sound logic and numbers that make sense.
- Make sure you know your math. At minimum you'll need to perform some basic arithmetic or mathematical calculations.
- These quesitons are often used to test your ability to structure, as well as your ability to think laterallly, make logical links and communicate clearly.
- Make mental calculations quickly by making sensible estimates and rounding numbers up or down.
- Does your answer make sense? If you're answer doesn't make sense, chances are you've made a bad assumpation, estimate or calculation. Go back and carefully check your work and provide a new answer.
- You can use business frameworks (SWOT, Porter's Five forces, etc.) or mind mapping to support your analysis and answers, as long as it makes sense.
- Many market sizing questions revolve around issues being faced by an organization or industry. Commercial awareness can be very important to answering market sizing questions.

**Logic Problems**

1. At 3:15, how many degrees there between the two hands of a clock? (J.P. Morgan interview question).

2. A fire fighter has to get to a burning building as quickly as he can. There are three paths that he can take. He can take his fire engine over a large hill (5 miles) at 10 miles per hour. He can take his fire engine through a windy road (7 miles) at 9 miles per hour. Or he can drive his fire engine along a dirt road which is 8 miles at 12 miles per hour. Which way should he choose?

3. You spend 21 dollars on vegetables at the store. You buy carrots, onions and celery. The celery cost half the cost of the onions. The onions cost have the cost of the carrots. How much did the onions cost?

4. You spend a third of all the money you have on a piano. Half of your remaining money you use to buy a piano chair. A quarter of the rest of your money you use to buy piano books. What porportion of you original money is remaining?

5. Why are manhole cover always round, instead of square?

6. In the Chicago subway system there are two escalators for going up but only one for going down to the subway. Why is that?

7. You find three boxes at the store. One contains onions. Another contains potatoes. The third contains both onions and potatoes. However, all three of the boxes are labeled incorrectly so it's impossible to tell which box contains what. By opening just one box (but without looking in) and removing either a potatoe or onion, how can you immediate label the contents of all the boxes?

8. There are 8 bags of wheat, 7 of which weigh the same amount. However, there is one that weighs less than the others. You are given a balance scale used for weighing. In less than three steps, figure out which bag weighs less than the rest.

9. There are 23 rugby teams playing in a tournament. What is the least number of games that must be played to find a tournament winner?

The following are the answers to the 9 logic problems above:

**Clock**

If you thought the answer was zero degrees, you'd be incorrect. At 3:15, the clock's minute hand will be pointing at 15 minutes, exactly 90 degrees clockwise from vertical. At 3:15, the clock's hour hand will exactly one quarter of the distance between 3 O'clock and 4 O'clock. Each of the 12 hours on the clock represents 30 degrees (360 degrees divided by the 12 hours on the clock). Consequently, one quarter of an hour is exactly 7.5 degrees, so at 3:15 the minute hand will be at 97.5 degrees. So there is a difference of

**7.5 degrees**between the hour hand and minute hand at 3:15.

**Fire Fighter**

Driving his fire engine 5 miles at 8 miles per hour takes 37.5 minutes. Driving his fire engine 7 miles at 9 miles per hour takes about 47 minutes. Driving his fire engine 8 milles at 12 miles per hour takes 40 minutes. So he should choose to drive his fire engine

**over the hill**.

**Store**

Answering this problem just requires some simple algebra. If we assume the cost of celery = x, then the cost of onions = 2x, and cost of the carrots is 4x, such that the total cost of all vegetables = x + 2x + 4x = 7x = 21 dollars. Consequently, x = 3 dollars. Hence, the onions cost 6 dollars.

**Piano**

You spend a third of all the money you have on a piano, so you're left with two thirds (2/3). You spend half (1/2) of the remaining two thirds on a piano chair, which leaves you with just one third of what you started with (1/2x2/3=1/3). You spend a quarter (1/4) of what you have remaining (1/3) on piano books, which leaves you with one twelth of the original (1/4x1/3=1/12).

**Manhole Cover**

A square manhole cover can be dropped down the hole if turned diagonally to the hole, where round covers can't be dropped down manholes.

**Chicago Subway**

People coming into the subway tend to arrive at different times, so the flow of people down the escalators is a more even stream. Conversely, when people get off the subway they typically all arrive at the escalators at about the same time. Consequently, two escalators are need to handle people leaving the subway, where only one is required for people arriving.

**Three Boxes**

Just open the box that is labeled "Onions and Potatoes". Since none of the boxes are labeled correctly, this box must contain only onions, or only poatatoes. If you remove a potatoe from this box, the box must be the "Potatoes Only" box.

One of the remaining two box has to be the "Onions Only" box. However, the only you currently have it labeled "Potatoes Only", and the other is label "Onions Only". So the box labled "Potatoes Only" must be the box that contains only onions, and the box labeld "Onlions Only" must be the box that has both potatoes and onions.

**Bags of Wheat**

Immediately, take any 2 of the bags and place them to the side. Weigh 3 of the remaining six bags against the other 3 bags. If these bags weigh the same, that means the bag that weighs less must be one of the two that you immediately placed to one side. If this is the case, weigh the 2 bags you placed to one side against each other to find out which one weighs less. You've now found in your bag.

However, upon weighing the sets of 3 bags against one another you find that one set weighs more than the other set, place one of the bags from the set of heavier bags aside and weigh the remaining two bags to find out which one is heavier. If they are of equal weight, the you know that the bag you place to one side is the bag you're looking for.

**Rugby Tournament**

In a tournament, every rugby team except the winner is eliminated from the tournament after being defeated just once. Hence, the number of games required to find a tournament winner is going to be one less than the number of teams, or 22 in this case.

**Business Case Interview Questions**

- How would you work with a subordinate who is underperforming?
- You're consulting with a large pharmacy with stores in multiple states. This company has improved sales but experienced a decrease in revenue. As a result, it is contemplating store closings. Explain how you'd advise this client?
- You are working directly with a company's management team. It is organizing a project designed to significantly increase revenue. If you were provided with data and asked to supervise the project, what steps would you take to ensure it's successful?
- You have been assigned to work with a small company that manufactures a popular product. However, a competitor begins selling a very similar product which incorporates state of the art technology. What would you advise your client to do?
- You have been assigned to advise a company with a large Western European market. Company management wants to open the Chinese market. What advice do you have for this company?
- The firm has assigned you to consult a company intending to drop a product or expand into new markets in order to increase revenue. What steps would you take to help this company achieve its objective?
- You have been assigned to consult a shoe retailer with stores throughout the nation. Since its revenue is dropping, the company has proposed to sell food at its stores. How would you advise this client?

**Case Interview Resources**

**Books**

*Vault Guide to the Case Interview**Vault Career Guide to Consulting**Case in Point: Complete Case Interview Preparation**Mastering the Case Interview**Ace Your Case! Consulting Interviews*(series 1-5)

**Interactive Online Resources**

## This approach will allow you to crack any type of case study

Solving a case in a case interview is not very different from the approach a consultant uses in real life to solve clients' problems. You will need to:

- Develop an exhaustive structure that will guide you throughout the case interview efficiently. The structure ideally will tell you
**where to look**for the solution of the problem - Develop a
**hypothesis**early on and**prioritize**the information you need to gather. Apply the 80/20 rule to figure out which answer to what question will have the biggest impact on the case solution (80/20 rule or Pareto Principle); - Gather data and know why you need the information and what
**conclusions**can you draw which would ultimately help you get to the solution

In a case interview, your only source for data is the Interviewer. Hence, it is important that you establish an open** bi-directional communication** and obviously your rapport with the interviewer is very important.

Make sure you ask for only relevant information and ideally let the interviewer know why you need a particular piece of data, be as open and transparent in your thought process as possible, and think out loud to let the interviewer know your thinking process including your current hypothesis.

The Interviewer will likely provide verbal information or charts based on your questions.

## The foundation for a successful case is set at the beginning so follow these steps religiously during your interview practice

**1. Restate the question and make sure you understand the problem statement by confirming with the interviewer**

Understand the problem really well before structuring or asking for data. Do not simply repeat the question but rephrase it in such way that it would avoid misunderstandings. This is important because in consulting, it is crucial to understand the needs of the customers.

**2. Clarify the goals**

Ask specific questions to clarify goals. “So our objective is to increase the bottom line. Are there any other objectives I should know of?” If there is more than one objective, do not try to solve them all at once, instead, break the problem into pieces and solve one piece at a time. This will allow you to stay focused.

**3. Write out your structure**

First, **ask your interviewer for a minute** to prepare your structure since this part is extremely important and determines whether you will succeed in solving the case. **Don’t be afraid of the silence!**Practice structuring the case! If you have a good structure that is Mutually Exclusive Collectively Exhaustive (MECE), you do not have to worry about running into dead ends because even if you do, you can dig down an alternative branch that will ultimately help you solve the case. Use an issue tree to help in customizing your structure.

**4. Ask questions to understand the trends of the company, industry and product**

Ask questions about the firm’s business model, the state of the competition and its substitutes, the firm’s position within the industry, and the product. Make sure to ask about changes (or deltas) [how/if things have changed]. Example categories

- What is the current situation of the client
- What has
**changed**from previous years - What are the financial (& non-financial) predictions given the current situation

**Client:**

Don’t be afraid to ask questions about the business model. Even if you have graduated with a business degree, it is impossible to know a company's business model without investigating details. Thus, solving a case based on false assumptions is worse than asking a question you think you should know beforehand. Typically, you'd want to know:

- The size of the company
- Whether it is profitable and growing
- How a business transaction works within the company
- How is the product being produced and what are some crucial production steps?

**Industry:**

For cases where external factors are decisive (e.g. market entry), you may want to know:

- At which point of the
**lifecycle**is the industry? - What is its configuration?
- Who are the
**key players**? - Who are the
**suppliers**? - What is the
**client’s position relative**to other firms? - What has
**changed**? Who has left the industry? Who has recently entered the market? Why? Have any of the competitors changed their pricing? What about buying behavior? - Was there a change in
**regulations**? - What are the major
**substitute products**? - What are the future
**predictions**about the market?

(For a systematic view, see Porter’s Five Forces)

**Product:**

In some cases, the crux of the matter is the product. In these cases, you want to know:

**What**exactly**is the product**? What does it do? What are its strengths/weaknesses? What is it mainly used for? Has there been a change in the way it is being used?- What is the lifecycle of the product? Is it still in the development phase or about to become outdated?
- How is the
**brand/reputation**? - How do
**competitors**’ products perform in**comparison**? What are their strengths/weaknesses? - Who are the
**customers**? How are they**segmented**? What do they need? Has the need changed recently (e.g. connectivity, “eco”, social)? - What is the
**price of the product**? How is the price compared to competitors? - How is the
**product**being**promoted**? Has a competitor recently changed its promotion activities? - What are the
**distribution channels**? Is the sales place where the customers are? Have new distribution channels emerged recently? - What is the
**service**(e.g. after sales) like? How does it compare to competitors? Has there been a change? - Closely related to the industry part: Are there any new
**technologies or products**on the market? - What does the product consist of? What are the parts and where are they sourced?

(For a systematic view, see 4 Ps Framework)

## A key evaluation criterion is your ability to structure a case and being able to adapt the structure throughout the case

A good case structure is the most important part of the case. Based on your structure, you will need to interpret the new information and draw conclusions from it. Try to segment your information until you have isolated the problem. If the problem is not captured by your structure, you will likely not be able to solve the case. Remember to practice setting up a case structure during your interview preparation.

Visit the issue tree lesson to learn how to set up a good structure

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