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171199LNZXL315FRAH-C1
TODAYS AGENDA
1. Introduction
2. A good approach to case interviews 3. Preparation tips and hints
171199LNZXL315FRAH-C1
TODAYS AGENDA
1.
Introduction
171199LNZXL315FRAH-C1
To clarify what we are looking for in candidates To share with you what McKinsey considers a good approach to case interviews To help you assess and improve your level of preparation for the upcoming interviews
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Intellectual capacity Practical orientation Quantitative comfort Problem solving Personal impact
Leadership
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WHAT IS A CASE?
Designed to measure
Problem solving Tolerance for ambiguity Communication skills
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Not unlike a consulting situation for new Associate Unfamiliar territory Real-time thinking on your feet Never enough facts or time
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Classic cases
Why is the profitability of Company X declining?
Impact on company of a consolidating industry? Should Company X add capacity? How should Company X react to a new competitor? Should Company X enter/exit a new/old market?
Purpose
Broad functional skills
Big-picture perspective Comfort with details, analysis
171199LNZXL315FRAH-C1
TODAYS AGENDA
1. Introduction
2. A good approach to case interviews 3. Preparation tips and hints
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Clarify
Ensure complete understanding of business issue
Structure
Develop approach to solve problem
Analyse
Request information to test hypothesis
Conclude
Synthesise findings into recommendations
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A car manufacturer has approached McKinsey with the following question: Our customers wait up to 8 months to receive their new car. On the other hand we have 8 months inventory. Something must be wrong with our processes, but we dont know what. Can you help us find out why? You are alone at the client site with the clients project leader; he is keen to get your early thoughts on the subject The engagement manager will arrive only tomorrow and you did not get a chance to talk to the partner to find out what his hypothesis is
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Clarify
Structure
Analyse
Conclude
Listen closely to problem definition Paraphrase to confirm problem statement Ask questions to improve understanding Pause to think
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Summarise understanding
If I understand you correctly, the problem is the following Customers wait up to 8 months for their new car to be delivered The manufacturer has 8 months inventory Why?
Pause: Think!
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Clarify
Structure
Analyse
Conclude
Describe your overall approach Break the problem into discrete pieces (MECE*)
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Customer orders
Locate car
Delivery
Manufacturing
Car inventory
Inventory is inevitable given current processes because production pattern of different car models is not related to demand
Composition of inventory
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External
Customer demand
Customer segments Industry structure Regulatory environment
Internal
Cost structure
Value chain Processes Organisation Performance over time
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STRUCTURING - 3Cs
Company
What are the competitive advantages of the company? What are costs compared to competitors? What is the split between fixed and variable? What is the level of competitive intensity in the industry? How are the products differentiated? What substitutes exist? What segments exist? How do they make purchase decisions? What specific features do they look for?
Competition
Customers
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R&D
Product development Innovation
Manufacturing
Cost Quality Speed
Marketing
Pricing Product Place
Distribution
Cost Channel
Responsiveness
Supply
Promotion
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Income statement
Price
Balance sheet
Assets Cash Volume Investment Receivables Fixed SG&A Inventories Liabilities Payables Long-term debt Other liabilities reserves
Retained earnings
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Competitive position
Suppliers Us Them Barriers to exit Barriers to entry Customer buying factors
External environment Change in government regulations Major economic shifts Changing social concerns
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Clarify
Structure
Analyse
Conclude
Walk the interviewer through your thinking Prioritise issues Ask relevant questions State findings for each analysis
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Manufacturing
Transport/ inventory
Delivery
Centralised in Transport by the U.S. ship Done in Cars shipped batches once a week (1 week)
Further analysis
5 options (2 possibilities per option) 32 possibilities One combina- 3 weeks tion of options transportation per batch time Takes >7 month to complete one cycle
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Clarify
Structure
Analyse
Conclude
Summarise the discussion Discuss trade-offs Develop overall recommendations Relate back to problem statement
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CONCLUDE
Synthesise
(The 30 second elevator summary) Your customers wait up to 8 month for their new car while you carry 8 month inventory because manufacturing of batches of car models is not related to demand 5 options implies 32 models Batches of 1 week implies 7 month cycle Add 3 weeks transportation and it makes 8 month maximum waiting time
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171199LNZXL315FRAH-C1
TODAYS AGENDA
1. Introduction
2. A good approach to case interviews 3. Preparation tips and hints
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HINTS . . . WHAT TO DO
Relax!! Practice case problem solving before the interview Listen (take notes if you wish) Ask a few questions Structure, structure, structure Explain your thought process Work from hypotheses (guess a little) Gather and analyse key facts (80/20 rule) Push for a conclusion
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Force a framework that does not fit Jump to a conclusion without explaining your thought process Be sure you have the answer and ignore signals/hints from the interviewer (the answer is obvious . . . ) Wild horses ( . . . and I refuse to change my mind) Hide from the details (or the numbers) Get frustrated Do a post-mortem (in or after interview)
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ENJOY!
Show enthusiasm, interest Go beyond the obvious Do not get stuck in cookie cutter analysis Build your skills/confidence to cover the basics competently (qualifiers) Real order winner is insight and originality
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