Case Interviews, Killer Frameworks - Nevin Kamath and Ivy Exec

Case Interviews, Killer Frameworks
Nevin Kamath
Founder, TheCaseCoach.com

Want more info? Go to IvyExec.com

The goal for today

• Learn three powerful frameworks to help you crack case interviews
and solve business problems

• Business situations framework (3 C’s and a P)

• Strategic pricing framework

• Ansoff Matrix (Growth 2x2)


My background

• McKinsey & Company (2009-2011)
• Interviewed new & experienced hires
• Founder of TheCaseCoach (www.thecasecoach.com)
• Conduct mock interviews with elite global professionals
• Offer career coaching and perspective to clients who are interested in
entering the consulting industry
• Adjunct Professor @ USC Marshall School of Business
• Teach career development & business communication
• Independent consultant/partner to small businesses
• Currently partnering with an LA restaurant to improve top-line sales


Some questions for you

(Audience Poll)


Why should you learn strategy frameworks?

• Crack case interviews

• Solve business problems at work

• Start or expand your own business

• Build your skillset as an independent strategy consultant


= Applicability
of frameworks

What case interviewers are looking for

Types of Questions

• Quantitative ability & judgment (Market sizing, exhibits)

• Problem solving creativity (MacGyver)

• Analytical rigor (“MECE”)


Today’s
Focus

A list of frameworks
Gather Information Make Decisions Implement Solutions/
Mitigate Risks

Business Situation Profit Tree 4 P’s

Five Forces Growth 2x2 PEST Analysis

Value Chain Strategic Pricing

McKinsey 7S

Industry Analysis

M&A


Business Situation (3 C’s and a P)
• Customers
• What are the customer segments? What does each segment want? What
price does each segment want to pay? What is the distribution channel
preference for each? What is the relative customer power?
• Company
• What are the company’s capabilities and expertise? What is the cost
structure of the company? What are the distribution channels of the
company?
• Competition
• What are the market shares of the leading players? What are some unique
competitor behaviors (ie target customer segment, differentiated product,
difference in capabilities and expertise)? What are the existing barriers to
entry and who holds them (ie government licenses, intellectual property)?
Where is this industry in its overall lifecycle?
• Product
• What is the basic value proposition of the product? What is the product
lifecycle? How differentiated is the good versus other good?


Example: Should we outsource to an LCC?
The client is a national manufacturer of plastic consumer products that
are sold in a variety of retail formats, including supermarkets,
discounters, club stores, and dollar stores. The company has three main
product lines – 1) freezer bags, 2) plastic plates and utensils, and 3)
specialty plates and utensils.
The CEO has been reading for some time about American companies
outsourcing their production overseas to low-cost countries such as
China. She wonders whether this makes sense for her company as well.
It worries her that none of her main competitors have established
foreign production capabilities; on the other hand, this could be a
tremendous opportunity to gain a competitive advantage.
We have been asked to help the client understand the benefits
and risks of moving its production capabilities to China and to
provide a recommendation.

Source: Boston Consulting Group, Candidate Preparation Workshop Materials


Example: Should we outsource to an LCC?
Products Customers Competition
Freezer Bags Top purchase criteria is Client is #3 in its category. It
• Plastic bags that are quality is known versus competitors
mainly used to store food as having a strong brand &
items in freezers innovation
Plastic Plates and Utensils Top purchase criteria is price Client is the #2 in its
• Disposable plates and category. It is at cost parity
utensils; intended for with the category leader but
single/limited use has a weaker brand.
Specialty Plates and Utensils Top purchase criteria is Client is the #1 in its
• Plastic plates and utensils style/design. Demand is category. It has no strong
produced for specific highly variable competitors
retailers, customized to
their design specs


Profit Tree

Price
Revenue
Quantity
Profit

Costs


Strategic Pricing Framework

• Cost-plus pricing

• Competitive benchmarking

• Value-based pricing

• Skimming

• Bundling


Example: How to price a hybrid car?

The client is a multinational automaker. It wants to launch a hybrid
electric vehicle (HEV) in Australia. Hybrid electric cars combine a
conventional internal combustion engine (ICE) propulsion system
with an electric propulsion system. The presence of the electric
powertrain is intended to achieve either better fuel economy than a
conventional vehicle, or better performance.
The client wants to know how to price its mid-size sedan.
Your consulting team has been hired to help them
formulate a pricing strategy. How would you go about it?

Source: ConsultingCase101


Strategic Pricing Framework
• Calculate the total cost of each step in the value chain (manufacturing,
distribution, sales and marketing). Then add your desired margin.

• Compare the price of the Nissan Hybrid to other hybrid cars on the market

• Calculate the fuel economy savings over a 5 year period from a hybrid
versus a non-hybrid version of the car

• Skimming
• Use limited release windows to win special business from cost-conscious
customers, collectors, etc.

• Bundling
• Once the basic price is attained, add features the user wants that the client
can attain at a low price


Questions?


Ansoff Matrix (Growth 2x2)

Increase Diversify
New market share / into new
Customers penetration markets

Increase Serve
Existing share of additional
Customers customer customer
spend needs

Existing New
Products Products


Example: How can the client grow revenues?

Our client, Dark Sky, is a small manufacturer of unmanned (i.e. remotely
piloted) data collection aircraft. Dark Sky produces the Assessor, an aircraft
originally designed for unmanned weather exploration. In 2003, the United
States military began purchasing Assessors for use in Intelligence,
Surveillance and Reconnaissance (ISR) missions. The Assessor is profitable,
but sales have stagnated and the client wishes to grow.

What are some steps the client can take to grow revenues?

Source: Kellogg Consulting Club 2011 Casebook


Ansoff Matrix (Growth 2x2)

New
Customers

Existing
Customers

Existing New
Products Products


Summary
Growth 2x2 / Ansoff Matrix Strategic Pricing

New
Customers
• Skimming
• Bundling
Existing
Customers
Business Situations

Existing New • Customers
Products Products • Company
• Competitors
• Products


Where to find me

www.thecasecoach.com

nevkam@thecasecoach.com

Skype-based Case Interview Training & Career Coaching


Case Interviews, Killer Frameworks - Nevin Kamath and Ivy Exec

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