Cracking Consulting Interviews:

Case & Fit

Based on the 2004 Kellogg Consulting Case Book

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Agenda

Interview Overview
Case
Frameworks
Fit
Resources & Next Steps
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The Interview
Consulting interviews consist of two parts:
1. Case(s) - usually 2+ of them per interview
2. Fit

Positive attitude is important

Dont give up if you get stuck

Listen carefully to all questions case & fit and

give an appropriate answer
You will need to nail both to receive an offer
Its not just about the case!

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Agenda

Interview Overview
Case
Frameworks
Fit
Resources & Next Steps
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CC Frameworks 10-04

The Case Interview

Firms want to see HOW you think
Show your work
-Your paper is your friend

You need a framework

-Know the main types of cases!
-Demonstrate that you can apply consistency
-But dont be too rigid use the framework loosely

Practice makes perfect!

-Most people need to practice many, many cases
before they have it down But it is possible for
everyone!
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The beginning
Expect a fast & furious start
Interviewers will present the business situation by
providing initial information
-Given info varies from very little to a lot
8 Listen carefully, and take notes
8 Repeat the key info that you have recorded back to the
interviewer
8 Ask clarifying questions if you do not understand something

Take a brief pause to organize your thoughts

-Its as simple as asking permission to take a moment to
prepare
8 Keep it to ~1 min or less
8 If you dont need it, dont take it
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Select a Framework
With proper preparation, this can become simple
Frameworks are essential to cracking the case
-There are seven main types
8 But dont apply them to rigidly
8 Firms want to see that you can think, not memorize
8 Some cases require a combination of frameworks

Prioritize your thoughts by forming a hypothesis

-Use the info provided and any clues from the interviewer
-Use your framework and info to form your initial hypothesis
8 Use info on the firm to determine when to share
- Some firms prefer hypotheses early, some later
8 Sometimes the answer is less obvious
- You may have to dig a bit first
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Take notes to organize your thoughts

Organize your investigation per your framework
-Use the notes you have taken as a guide
8 Organizing notes as slides may be beneficial
8 Gives consultants a chance to help you if you go astray

Divide your paper into multiple sections

-e.g. Three sections to capture overview, analysis, summary
-Add points to your summary as you go
-Your paper might look like this (for example):
Overview
One
Two
Three

Analysis

First level bullet

Summary
First point

- Second level dash

8
Third level arrow

Second point
Third point

north
east

west
south

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Articulating your case

It is important to demonstrate a structured,
logical, and thorough thought process
Use your notes as you work through your case
-Layout quantitative data Excel-style when possible
-Show your calculations!

Sample from 2004 Kellogg Consulting Case Book:

Given that Firm X has experienced a decline in profitability, I am
going to begin my evaluation by investigating the various elements
that make up profit, namely revenues and cost. Since you
mentioned that Firm X has seen its product mix change over the
past year, I will begin by analyzing the firms revenues, focusing
first on pricing. It could be that a decline in Firm Xs average price
is causing its profits to suffer
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Summarize and recommend

Always end your case with a succinct
recommendation
-Utilize your analysis to make a powerful statement
8 Include any assumptions necessary to come to your
conclusion
-Consider qualifying your recommendation: Based upon
the analysis that I was able to do this far
-If there is no clear answer to the case when you finish,
indicate as part of your recommendation that before
settling on this resolution, you would recommend doing
X, Y, and Z

Take a moment to prepare your thoughts

-Again, ask permission to do so and keep it brief

Be prepared for the elevator test

-Have your main points ready and keep it concise
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Agenda

Interview Overview
Case
Frameworks
Fit
Resources & Next Steps
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Seven main frameworks

To be successful, you need to know these frameworks
These are not MECE
The main frameworks are:
1.
2.
3.
4.
5.
6.
7.

Industry Analysis
Profit Improvement
Capacity Expansion
Market Entry
Acquisition
Investment
Market Sizing

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Framework 1 - Industry Analysis

Easily recognized by cases that ask whether firms
should be in an industry, or by cases that lead to the
entire industry doing poorly
Use Porters 5 forces (without saying so)
-

In general, do not name specific frameworks (e.g. BCG Growth

Matrix, Porters 5)

Generally, point will be to determine if this industry

has desirable economics
-

If a conglomerate, point might be to suggest an exit from an

undesirable business to focus on other business

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Framework 2 Profit Improvement

Another easily recognized case listen for indication
on profit decline
= [(P VC) * Q] FC
-

Use this expanded formula so that you do not miss distinction

between VC & FC
Breakeven quantity = FC/(P VC)

Focus on factors that impact each of these variables,

listening carefully for clues
-

e.g. Firm X experienced difficulty in labor relations last year.

This is probably indicating a recent increase in VC due to wage
increases

Watch out for cost allocation in firms with multiple

products/divisions
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Framework 3 Capacity Expansion

Usually recognized by questions about firms increasing
their output potential
Consider all alternatives: build, expand, outsource, etc.
Estimate the potential benefit for expansion
-

Dont forget the risks: what is demand dries up?

Considerations associated with new capacity: proximity

to suppliers/customers, transportation, labor cost &
availability, technology, etc.
-

Determine which of these are important and focus on them

Summary should be a Cost/Benefit analysis of options

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Framework 4 Market Entry

Recognizable by cases with firms seeking to expand
into a new region, business, or customer segment
Recommended Approach:
1.
2.
3.
4.
5.
6.

Consider the industry & size the market

Understand the competition
Analyze customer needs to identify potential gaps
Determine if the company can meet these gaps
Evaluate methods of entry and barriers (if exist)
Size opportunity against firms goals (if possible)
- Positive NPV does not necessarily imply a go
- Consider risks

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Framework 5 Acquisitions
Probably the easiest to identify: Firm X is thinking of
acquiring Firm Y
Start looking for synergies
Approach
-

Understand potential acquirers business: does this fit?

Assess rationale
8 Increase resources: capacity, distribution reach, broaden
product line, etc
8 Decrease costs: economies of scope, economies of scale,
learning curve
- Consider competitors response and possible org issues
- NPV analysis compare costs vs. benefits
- Alternatives to this acquisition
8 Have they considered other targets, organic growth?
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Framework 6 Investment
Listen for indications of companies considering
purchasing new assets (e.g. Firm X is considering
adding capacity to increase its output of Product A)
Approach
-

Understand the firms business

Why is it considering the investment?
8 Need to be industry leader?
8 Required to stay/become competitive?
- NPV analysis
8 Including option value
- Consider competitors response
- Summarize with position on making investment or not

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Framework 7 Market Sizing

Recognizable as requests to determine the size of an
opportunity
Market sizings are often a part of a broader issue
-

e.g. Company X, the worlds leading light bulb manufacturer,

obtained a patent for a light bulb that will never burn out.
Should they develop this product?

Approach
-

Share clear assumptions and estimations with the interviewer

In many cases, you will have to guess
8 No one who interviews knows how many light bulbs are sold
in the world
- Rounding is usually okay just be sure to indicate this to the
interviewer
- Remember to vocalize your calculations as well
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Agenda

Interview Overview
Case
Frameworks
Fit
Resources & Next Steps
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Fit
Dont overlook the Fit portion of the interview
In first rounds, is usually 0-10 mins
-

Some firms do not rely heavily on Fit interviews in Round 1

In decision rounds, is more heavily stressed

-

Often is one of the three interviews

Be prepared to talk about:

-

Your initiative & accomplishments

Difficult situations/learning experiences
Why you want to be a consultant (work and lifestyle)
Your long-term goals, consulting and otherwise
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Agenda

Interview Overview
Case
Frameworks
Fit
Resources & Next Steps
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Resources
For more information on case interviews, please use
these sources:
1. www.vault.com for general information on consulting and
consulting firms
2. Kellogg Consulting Club Website http://www.kellogg.northwestern.edu/student/club/consulting/

3. Kellogg Consulting Case Book available on the consulting

website
Other case books are available as well
4. Peers & Case Groups
You will need to spend a lot of time with friends

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Next Steps
Learn the frameworks inside & out
Practice cases with your peers
-

Not uncommon to take 30+ cases to get in the swing of it

Know your story for your fit interviews

Get to know the firms
-

Styles vary: do they want hypotheses up-front? Will they

conduct a fit interview in Round 1?

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Avoid the Common Pitfalls

When setting up your framework view the case from the perspective of a
manager scoping out the modules for the consultants on her team.
- What buckets of information do you need Your framework comes
from this
- Which are most critical Tells you where to start
- What information can I fill in from my past experience Leads you to
smart questions

Dont ask the interviewer where they want to start the case. Pick a place
and give a brief explanation why you are starting there.

Dont rapid fire questions. Lead each question with a transition from the
data you just got or a rationale for why you are asking the question.

Before making a calculation walk the interviewer through the steps you
are going to take (Revenue = Market Share * Total Market Size). Then
take a minute to do the calculations on your paper and gut check your
answers.

Use the results of your calculations to make a conclusion and transition to

your next question.

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