CASEBOOK E - Management Consulted
{ECASEBOOKby}THE ESADE MBA CONSULTING CLUBESADE MBA Consulting Club casebook1
ACKNOWLEDGEMENTSThe inaugural edition of the ESADE MBA To the ESADE MBA Consulting Club Members and Alumni Consulting Club Casebook is only possibleSpecial thanks to Gaurav Gupta, Lina Perez, Luciathrough the tremendous effort, commitmentPiazzesi and Jofre Casas for their case testing.and determination of the following bright stars:We also would like to thank our other Alumni contributors:Dieter Kohler (ESADE MBA Class of 2010 and member of ourTo the Boston Consulting Group Alumni Advisory Board) and Marc Andre Lein.We are hugely grateful to Joan Sol for his meticulous reviewAnd finally, thank you to Thomas Gut, Paul Fattinger, andand valuable feedback to our cases. Many thanks also to María the Consulting Club Board from the ESADE MBA Class ofÁngeles Bosch and Santiago Fernandez for representing BCG 2011. You set an unequivocal standard that our Board stilland helping us throughout the development of our casebook. strives to follow. For the inspiration to create this Casebook andyour continued influence in driving the ESADE MBA forward,Thank you to all the BCG consultants who contributed theirwe thank you.insights into the life of a consultant: Hans Clement, PaulFattinger, Joan Sol, Marc André Lein and Diego Aguilar.To the ESADE MBA Career Services To Helga Kirchner, our ESADE MBA Career Services Directorand to whom the casebook owes its existence, thank you foryour tireless efforts in supporting the ESADE MBA students intheir career quests.We would also like to extend our thanks to Carmen Gonzalez,who has become a welcome partner to the ESADE MBAConsulting Club.2casebook ESADE MBA Consulting Club
view PreparationBCG InterviewsCasesHeathrow AirportMobile Usage in SpainUS Househould DebtWindows SupplierRestaurant in Buenos AiresDuke’s Meadow Golf ClubGracia Football ClubNICE MobilePharma SalesRascal BeerPrivate HighwayItalian Food ExpansionBank’s WeddingCar ManufacturerMarket Entry into ChinaThe Cost of HealthMuseum OpeningGreen AirlineUS Submarine SaleIT Cost-CuttingFinal 99ESADE MBA Consulting Club casebook1021063
INTRODUCTIONThe ESADE MBA Consulting Club is proud to present theinaugural edition of our Casebook in collaboration with TheBoston Consulting Group.We created this Casebook to prepare MBA students for caseinterviews, specifically through: Sharing perspectives from BCG consultants about theirpersonal experience in consulting Presenting solid insight into the case interview process andpreparation techniques Providing access to a broad range of BCG-approved cases forpractice4casebook ESADE MBA Consulting ClubWe placed special effort on creating a user-centric design forthis Casebook – we strongly believe that design is and will bea key differentiator not just in tools such as this one, but in thefuture of business. By streamlining the information so cases aremore intuitive and easier to give when practicing in pairs, weaim to facilitate a smoother and more efficient case practiceexperience.We hope you find this Casebook useful and relevant in yourinterview preparations for consultancy firms.
{EDUCATION}ESADE MBA Consulting Club casebook5
EDUCATIONThe consulting interviewApplicants to consultancy firms can expect to undergo severalThe business case is a key feature of the interview. Masteringinterviews (typically four to five), each lasting in the region of 45 the case interview is essential to succeed in the consultingminutes to one hour.interview.15 - 20 minStartBehavioral InterviewBetter understand candidate’s backgroundand goalsDetermine mutual requirements20 - 25 minBusiness CaseProve competence and thinking abilityDraw clearer idea of candidate’scapabilities and potential5 minQ&ADemonstrateinterest &preparationWrap upKey focus of this book!6casebook ESADE MBA Consulting ClubEnd
EDUCATIONIntroduction to the ESADE education sectionThe ESADE MBA casebook will introducethe concepts of:WhyHowWhatWhy companies are increasingly usingcases in their interviewsWhat is a case and what types of casesare frequently usedMethods and frameworks for how youcan successfully complete an interviewcaseThis casebook will provide a basic overview of concepts and frameworks as a guide foryour interview preparation, but your study should be augmented by other materialsESADE MBA Consulting Club casebook7
EDUCATIONWhy do companies use case interviews?WhyCases go beyond behavioral and background questions to assess theactual abilities of a candidateCases can test quantitative aptitude, creative thinking, generalbusiness acumen, soft skills, presence, poise and reaction topressure through a business simulationCompanies use cases to analyze your client-readiness and determinewhether you could interact with clients in a professional manner if hiredCase interviews have historically been used by consulting firms and finance companies toevaluate potential candidates and are increasingly being used by industry8casebook ESADE MBA Consulting Club
EDUCATIONWhat are cases?Cases are a tool used by interviewers based on a business scenario; thecandidate is expected to replicate the steps of a consulting projectThey are a means of evaluating potential candidates when facing areal-life business challengeWhatThe interviewer typically selects his or her own cases, either based on areal-life project or on a fictitious business scenario, however both servethe same purposeInterview cases are meant to show your structured thinking and how you would approacha hypothetical business problem – there is not necessarily one right answerESADE MBA Consulting Club casebook9
EDUCATIONWhat types of cases are there?Several types of cases are commonly used:Market SizingHowOperationsStrategyHow much gum is chewed each day in the US?How many text messages are sent each year in Spain?What is the financial gain of hosting the Olympics?How can a manufacturer increase falling profits?How can a factory decrease throughput time?One branch of a retail chain is failing. Why?Market entry- how should company X enter country Y?What are growth strategies and options for company X?How should a company bring their new product to market?Although less common, you may also encounter:Brain teasersFinance10casebook ESADE MBA Consulting ClubWith eight marbles and one balance, what is the minimumnumber of moves you could make to figure out which islighter than the others?What is the NPV of a prospective project?Determine which is more profitable, option X or option Y?
EDUCATIONHow to approach your case1. ListenSource: Darek Tasek - Crack the Case 20112. AssimilateBe sure to understand thebusiness questionPlan and structure an approachMake note of all key informationDetermine which frameworks willbe usefulIdentify what information ismissing and what questions toask interviewerHow3. DeliverDeliver a solution that answersthe main business questionBe sure to interact with yourinterviewer at every step ofyour analyses and solutionsAddress ideas and issues thatyou identifyThe case interview is an interactive exercise between candidate andinterviewer - be sure to communicate with interviewer at every step of yourcaseESADE MBA Consulting Club casebook11
EDUCATIONProfit treexVolumeRentProperty taxInsuranceDepreciationInterestFixed OHCommon FCRevenues ( )MaterialsPackagingDeliveryCommissionDirect laborDepletionCommon VCPriceProfitsVariableCosts (-) FixedThe profit tree is a useful framework in the evaluation of the causes andimpacts of changes to a company’s profitability.12casebook ESADE MBA Consulting Club
EDUCATIONThree Cs model (or strategic triangle)CustomersCompanyCompetitive advantageMake or buyResources availableCost effectivenessCurrent customersCurrent marketplaceSegmenting optionsCompetitionCompetitive responseBrands / imageCapitalize on differences in cost structureIndustry dynamicsThe strategic triangle, or 3 Cs framework, is useful in understanding the source or cause of broadbusiness problems including marketing or internal performance issues.ESADE MBA Consulting Club casebook13
EDUCATIONPorter’s five forcesThreat of entryNewEntrantsBargaining PowerSuppliersRivalryBuyersBargaining PowerPorter’s five forces are used to assessthe attractiveness of an industry andcan be used to evaluate market entryand M&A opportunities.14casebook ESADE MBA Consulting ClubSubstitutes Threat of substitution
EDUCATIONBCG growth matrixRelative Market ShareHighStarsLowMarket Growth RateHighCash CowsLowQuestionMarksDogsInvest profits generated bycash cows in question marks totransform them into stars.The BCG growth matrix is used toevaluate a company’s portfolio ofproducts or product lines in orderto determine in which to furtherinvest or to divest.ESADE MBA Consulting Club casebook15
EDUCATIONSWOT nternalFactorsExternalFactorsWhen evaluating a market entry (geography, new product lines, etc.) or businessopportunity, a SWOT analysis is used to assess the business environment.16casebook ESADE MBA Consulting Club
EDUCATIONAnsoff growth ketDevelopmentDiversificationThe Ansoff matrix is used toevaluate strategies for launchingnew products or entering newmarkets when a company wishesto grow.MarketsExistingNewNewExistingESADE MBA Consulting Club casebook17
EDUCATIONFour Ps modelProductPriceWhat is the product, what customer needs does it fulfill?How is the product differentiated?Does the product interact with other products (complements) or product lines (internal)?What is the absolute / relative price of the product?How will sales staff be compensated (commission, etc.)?Will discounts or incentives be offered, at what interval?PlacementWhat types of stores will offer the product?How will the product reach the stores (supply chain, distribution channels)?For new products, will test markets be used for roll-out?PromotionWhat marketing strategy will be used?How will the brand message be communicated to different stakeholders?Based on segmentation, how will the product be positioned?The four Ps are useful when evaluating a product or marketing strategy and can be usedto determine the cause of an increase or decrease in sales; it can also help in identifyingnew opportunities to market new or existing products.18casebook ESADE MBA Consulting Club
EDUCATIONValue chainR&DInputsProductionDistributionMarketing& SalesServiceUsing an example of the pharmaceutical industry.New drugresearch &approvalSourcing ofmaterialsneeded forproductionProduction andpackaging of drugsOutbound logistics to Marketing efforts,pharmacies, hospitals, PR, sales efforts tocare facilitiesdoctors / hospitalsKeeping publicup to date aboutpotential sideeffectsValue chain analysis is used to look at activities throughout organizations, supply chains anddistribution networks. The value chain is a useful framework to understand the workings of anorganization, to determine where value is added and to identify weaknesses or bottlenecks withinan organization.ESADE MBA Consulting Club casebook19
EDUCATIONFinancial statement analysisIncome Statement / Profit & LossBalance SheetRevenuesSales (volume * price)Financial income (ie interest)Total RevenuesCost of Goods Sold (materials, direct labor, OH)Gross MarginsExpensesSG&AInsuranceSalariesUtilitiesTotal ExpensesEBITDADepreciation & AmortizationEBITInterest ExpensesIncome before taxTax (income * tax rate) Net IncomeProfit--casebook ESADE MBA Consulting ClubLiabilities & EquityShort Term Liabilitiesaccounts payableloans payabletaxes payablelong-term liabilitieslong-term debtTotal LiabilitiesEquitycommon stock (book value)retained earningsTotal EquityTotal AssetsTotal Liabilities SHE-Income statement and balance sheet analysis are usedto assess the financial health of a company.20AssetsCurrent Assetscash / cash-like assetsaccounts receivableinventoriesprepaymentsdividends payableTotal Current AssetsLong Term AssetsPP&E (minus depreciation)investmentsTotal Long Term AssetsRatio ExamplesROEROAInventory TurnoverAP TurnoverAsset TurnoverCurrent RatioCash RatioOperating MarginProfit MarginDebt to CapitalCFO to DebtROIGross MarginPrice to Earnings
EDUCATIONProject and company valuationProject Valuation MethodNPV*IRRPayback(Break Even)sum of present value of cash flows for entire project durationdiscount rate where NPV equals zero, indicates the profitabilityof a projectlength of time to regain cash from an investment (years ormonths)*NPV will be most commonly usedto evaluate projects for casesFree Cash FlowCompany Valuation MethodsDiscounted Cash yearly expected free cash flows discounted based onFlowsthe weighted average cost of capital, can include aterminal valueDividends-based sum of infinite dividends payments using perpetuityestimation (terminal value)Multiplesvaluation based on comparison to similar companies(price-earnings ratio, EV/sales, book-to-market, etc.) -TimeTV C (n 1)R-gTerminal ValueCalcuationA J-curve can be used toshow cash outflow andinflow for a project andillustrate the breakevenpointSales COGSEBITDAD&AEBITTaxesEBIATD&A Operating Cash FlowCAPEXWorking CapitalFree Cash FlowESADE MBA Consulting Club casebook21
{}INTERVIEWPREPARATION22casebook ESADE MBA Consulting Club
Grow Further.InterviewPreparationESADE MBA Consulting Club casebook23
INTERVIEW PREPARATIONOur interview process is aimed at getting to know youpersonally, learning more about your analytic capabilities, andalso introducing you to our people and our work. We assess yourability to listen, communicate effectively, and present yourselfwith tact, energy, and persuasiveness. We look for intellectualcuriosity and creative thinking. And sometimes, we just want tofind out what it would be like to spend a week on the road withyou, working together on a client project. Interviewers value asense of humor and a bit of “sparkle” in your personality.Typically, we divide interviews into three parts: personalbackground, consideration of a case study, and an opportunityfor the applicant to ask questions about us.Your Personal BackgroundDuring the interview, we want to find out more about you andhow you would fit in at BCG. For example, you might be asked todescribe ways you have been able to make an impact in a teamenvironment in the past. Or you could tell us of a time when youwere able to overcome obstacles, persuading others to go alongwith a decision that they had initially resisted. The interviewermay also simply be curious to hear your motivation for choosingto pursue a career with BCG.24casebook ESADE MBA Consulting ClubCase StudyWe use a case study to give you an opportunity to demonstrateyour problem-solving skills. Because the case is likely based on areal client project your interviewer has worked on, you will gain aunique insight into what strategy consulting at BCG is like.
MOST IMPORTANT: BE YOURSELFThe case study will feature a business problem that you and avoid rushing to a solution without making sure youthe interviewer will seek to solve together. It will not requireunderstand the problemextensive knowledge of specific industries or processes, and ask questions to get all the relevant information you need andoften our cases have no right or wrong answers. Your questionsrely on your interviewer to help you get on the right trackand thought processes are more important to us than coming make assumptions, but be transparent about the assumptionsup with an actual solution.you are makingWe hope that you will find the discussion of the case studyintellectually stimulating. There is no better way to simulate what perform a sanity check when doing calculations— you willscore extra points for thiswe do than to work through one of our cases.Questions and Answers take hints from the interviewer; we want you to succeed, andwe don’t play gamesThe interview is your chance to ask questions about workingat BCG or your interviewer’s personal experience. It is an be flexible: if your approach is not leading to a solution, pause,rethink the key issues, and adjust your approachopportunity for you to get to know our people and our culture.Come prepared with the questions that matter to you, and we explore what is important and what is not; focus on the formerwill make every effort to answer them.and don’t let yourself be held up by the latterPreparation for the Case Study resist the urge to rely on a textbook approach or conventionalwisdomTo prepare for the case study discussion, you can review some seek creative and innovative approaches to solving the casepractice cases at www.bcg.com/careers. The Web site exampleswill give you an idea of what to expect in the case study portionof the interview.One last piece of advice: be yourself and have fun discussingWhile there are no set rules on how to solve a case, we have the case. If you find this an exciting and entertaining experience,you’ll likely enjoy being a consultant at BCG.found that some advice can help you succeed. You shouldESADE MBA Consulting Club casebook25
DOS AND DON’TS FOR THE CASE STUDYDoListen to the Interviewer and Ask QuestionsGenerate a Hypothesis and Explore Options CreativelyThe interviewer will begin by laying out the problem. Youshould take time to align your thinking, ask clarifying questions,and communicate your line of reasoning to your interviewer. Theinterviewer will also give you hints and help along the way, sodon’t be afraid to take notes.Make suggestions on how to solve the key issues you haveidentified. The interviewer will be looking for the same thingsa BCG client would expect when working with us—innovativeapproaches that can change the rules of the game and creationof lasting competitive advantage.Structure the Problem and Develop a Framework to Solve itSynthesize Thoughts and Draw Conclusions from yourAnalysisTake a moment to think about the case to gain perspective.Putting together a structure and a framework will help you clarifyAt the end of the interview, you should summarize the keyeach step and enable you to identify the analysis you may want hypotheses and options you have developed. Then, concludeto perform to reach a solution.with your recommended solution to the client’s problem.Focus on High-Impact IssuesConcentrate on the issues that will really make a difference andcreate value for your “client,” but make sure that you explain thereasons behind your choices.26casebook ESADE MBA Consulting Club
DOS AND DON’TS FOR THE CASE STUDYDon’tDon’t Rush into the Analysis without Developing an Don’t Internalize your Thought ProcessUnderstanding of the ProblemThe interview should be a dialogue between you and theDuring the discussion, the interviewer will work with you to interviewer, so make sure you communicate your logic andorganize your thoughts and steer you toward a solution. Don’t underlying assumptions.be afraid to ask questions that check your understanding.Don’t Stick to an Artificial FrameworkDon’t Panic if the Answer is not ApparentStandard frameworks you have learned in school may appearThere is no right or wrong answer in our interviews, and you are relevant, but they may not hold up after closer consideration.not expected to know everything about business. The objectiveof the interview is for us to learn about your approach to solvingbusiness problems, so remember to discuss your line of thoughtwith the interviewer.Don’t Defend your Solution at all CostsIf the interviewer challenges the solution you propose, don’tgo on the defensive. Acknowledge the possibility that theinterviewer has brought up a relevant perspective that you hadnot considered and reexamine your thinking accordingly.ESADE MBA Consulting Club casebook27
The Boston Consulting has more than 70 offices in
casebook . 19. EDUCATION. Value chain R&D Inputs Production Distribution Marketing & Sales Service. New drug research & approval Sourcing of materials needed for production Production and packaging of drugs Outbound logistics to pharmacies, hospitals, care facilities Marketing efforts, PR
Carver’s “Cathedral” Wolff’s “Hunters in the Snow” Tues. 8/2 Dirty Realism Introduction Carver and Wolff Discussion Homework: Langston Hughes Casebook Wed. 8/3 Raymond Carver Documentary Langston Hughes Casebook Homework: Postmodernism Casebook Thurs. 8/4 Postmodernism Casebook Homework: Postmodernism Continued Week Five: Mon. 8/8
your road to the Consulting Case Interview. Attending case workshops and other events sponsored by the Management Consulting Group are intended to supplement the information in the Casebook. To best utilize this casebook, we recommend that you use these cases in prac
UNIVERSITY CASEBOOK SERIES ADVANCED CORPORATION LAW A PRACTICAL APPROACH TO CORPORATE GOVERNANCE STEPHEN M. BAINBRIDGE William D. Warren Distinguished Professor of Law UCLA School of Law Commented [AR1]: Author: please update titles or affiliations, if desired.
Policies and Persons: A Casebook in Business Ethics, with John B. Matthews and Laura L. Nash, (McGraw-Hill, 1991). Revised 2nd Edition. Policies and Persons: A Casebook in Business Ethics, with Laura L. Nash, (McGraw-Hill, 1998). Revised 3rd Edition. Managerial Decision Making and Ethical Values, Course Module (2313) and
Although this casebook is far from complete in covering the breadth and depth of our current knowledge in the diagnosis and treatment of substance use and other addictive disorders, we hope that it will provide the fundamenta
Lt. Sonia did not have the investigation casebook,3 then in the possession of the case’s lead 3 The investigation casebook is the record keeping tool utilized by the MCU and is f
The recommendations contained in this casebook are intended to provide general guidance only. As with any diagnosis or treatment, you should use clinical discretion with each patient, including evaluation of history, physical presentation and complete laboratory data. With respect to
The present resource book is designed as a supplement to Peter Roach’s (2010) textbook English Phonetics and Phonology: A Practical Course and may be used to accompany lecture courses on English Phonetics at university level. It is equally suitable for self‐study and for in‐class situation
