Performance ImprovementMBA Case Study

October 18, 2012

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Agenda

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►Case study interviews►Purpose of case study►Breaking apart a case►Role of Interviewer►Evaluating candidate’s response

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Case study interviews

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Case Study Interview - Overview

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► 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

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Breaking apart a case study interview

Case Introduction

• Case Background• Problem Description

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Case Development

• Candidate should follow framework

• Identify Key Issues• May ask additional

questions 3

Case Closure

• Key Issues

• Risks

• Recommendations

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Profits declined in the past

5 years

VOLUME

CONTRIBUTIONMARGIN

FIXEDCOST

Market Size

Market Share

Growth

Price

Variable Cost Mater ials

Labor

Production

Utilities

Equipment

Competitors

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Candidate establishes Framework

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Step 1: Case Introduction

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► 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)

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Step 2: Candidate establishes framework

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► 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

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Step 3: Case Development

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► 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

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Step 4: Case Closure

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► 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.)

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What should the candidate demonstrate during the case interview?Ability to summarize the business issueØ Candidate should take notesØ Candidate should utilize an analytical framework

Ø Candidate should walk the interviewer through the thought process

Think through the issues & assess potential solutionsØ Follow the analytical framework or adjust as new facts are uncovered

Ø Provide a structured responseØ Ask insightful, probing questions

Ø Actively listen to hints providedØ Walk through the logic when evaluating issues and possible solutions

Recommend strategy and implementation activitiesØ Gather enough information to formulate recommendationsØ Summarize key points Ø Respond within scope

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Common mistakes candidates make during a case study interview

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► 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

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Case Study Evaluation:Example of a “5” rated case interview ► Candidate: Ø Asks thoughtful, insightful questionsØ Successfully synthesizes information from the case that is relevant Ø Presents ideas utilizing a framework or methodology (i.e. People,

Process, Technology)Ø Uses quantitative and qualitative data to support recommendationsØ Appears comfortable in the case interview setting Ø Demonstrates excellent interpersonal skills Ø Responds to the questions in the time frame allottedØ Utilizes the interviewer as a “Manager” on the jobØ Demonstrates professional presence throughout the interview

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Case Study Evaluation: Example of a “2” rated case interview ► Candidate: Ø Does not ask clarification questionsØ Simply repeats the information in the caseØ Cannot sort through the relevant and irrelevant dataØ Does not utilize a framework for identifying issues and making

recommendations Ø Does not support recommendation with additional data or

assumptionsØ Exhibits lack of professional presenceØ Does not exhibit structured thinking or logical thought process

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Questions?

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Contact Information

Trebor Wright – Senior Manager Ernst & Young Advisory (Performance Improvement – Finance)

Ø Trebor.Wright @EY.com