McKinsey_LBS_crack_a_case_1

1、CASE INTERVIEW WORKSHOPNovember 19th, 19991.Introduction2.A good approach to case interviews3.Preparation tips and hints4.Breakout sessions5.DrinksTODAYS AGENDA1.Introduction2.A good approach to case interviews3.Preparation tips and hints4.Breakout sessions5.DrinksTODAYS AGENDATo clarify what we are

2、 looking for in candidatesTo share with you what McKinsey considersa good approach to case interviewsTo help you assess and improve your level of preparation for the upcoming interviewsTo give you the opportunity to meet (more) McKinsey consultantsTo kick off the weekend with some drinks!WHY ARE WE

3、HERE TODAY?PresenceCommunicationEmpathyPersonal impactPersonal initiativeTeamworkEntrepreneurshipLeadershipHigh standards of excellenceEnergy levelPersistenceDrive & aspirationProblem solvingIntellectual capacityPractical orientationQuantitative comfortWHAT WE LOOK FOR IN INTERVIEWSDesigned to measu

4、reProblem solvingTolerance for ambiguityCommunication skillsDescription of business situationOpen-endedUsually taken from a real situationWHAT IS A CASE?Not unlike a consulting situation for new AssociateUnfamiliar territoryReal-time thinking on your feetNever enough facts or timeNo right background

5、 for consultingWHY DO WE USE CASES?PurposeBroad functional skillsBig-picture perspectiveComfort with details, analysisClassic casesWhy 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 competito

6、r?Should Company X enter/exit a new/old market?DIFFERENT TYPES OF CASES1.Introduction2.A good approach to case interviews3.Preparation tips and hints4.Breakout sessions5.DrinksTODAYS AGENDASynthesise findings into recommenda-tionsConcludeRequest information to test hypothesisAnalyseDevelop approach

7、to solve problemStructureClarifyEnsure complete understanding of business issueA GOOD APPROACH TO CASE INTERVIEWSA 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

8、 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 subjectThe engagement manager will arrive only tomorrow and you did not get a chance to talk to the pa

9、rtner to find out what his hypothesis isCAR MANUFACTURER EXAMPLEConcludeAnalyseStructureClarifyListen closely to problem definitionA GOOD APPROACH TO CASE INTERVIEWSParaphrase to confirm problem statementAsk questions to improve understandingPause to thinkSummarise understanding“If I understand you

10、correctly, the problem is the followingCustomers wait up to 8 months for their new car to be deliveredThe manufacturer has 8 months inventoryWhy?Ask clarifying questions (you may make yourself notes)“Is inventory finished products, parts before assembly or raw material?“Is inventory sitting at the p

11、lant or at the car dealers?“Are car dealers independent?“Is 8 months customer waiting time calculated from car order to delivery?Pause: Think!CASE EXAMPLE - CLARIFYConcludeAnalyseStructureClarifyDescribe your overall approachA GOOD APPROACH TO CASE INTERVIEWS* Mutually exclusive, comprehensively exh

12、austiveBreak the problem into discrete pieces (MECE*)State clear hypothesisUse framework if appropriateCustomer ordersCar inventoryHypothesisPart of the 8 months customer maximum waiting time is due to logistics constraints and order processing inefficienciesInventory is inevitable given current pro

13、cesses because production pattern of different car models is not related to demandUSE HYPOTHESIS AND STRUCTURETHE PROBLEMStructure the problemFollow one car from manufacturing to deliveryManufac-turingInventory/transportDeliveryComposition of inventoryFollow one customer order from sale agreement to

14、 deliveryInventory/transportDeliveryAgreesaleLocatecarManufac-turingInternalCost structureValue chainProcessesOrganisationPerformance over timeExternalCustomer demandCustomer segmentsIndustry structureRegulatory environmentSTRUCTURING - EXTERNAL vs. INTERNALWhat are the competitive advantages of the

15、 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?CompanyCompetitionCustomersWhat segments exist?How do they make purchase decisions?What s

16、pecific features do they look for?STRUCTURING - 3CsCostChannelPricingProductPlacePromotionCostQualitySpeedSupplyDistributionMarketingManufacturingR&DProduct developmentInnovationResponsivenessSTRUCTURING THE BUSINESS SYSTEMPayablesLong-term debtOther liabilities reservesShareholders stock equityComm

17、onRetained earningsLiabilitiesIncome statementProfitsRevenuesCostsPriceVolumeFixedSG&AVariableLabourMaterialsSTRUCTURING - FINANCIAL STATEMENTBalance sheetAssetsCashInvestmentReceivablesInventoriesProperty, plant, equipmentIndustry structureCompetitive positionUsThemBarriers to exitBarriersto entryS

18、ubstitution threatsSuppliersCustomer buying factorsExternal environmentChange in government regulationsMajor economic shiftsChanging social concernsSTRUCTURING PORTER FIVE FORCESConcludeAnalyseStructureClarifyA GOOD APPROACH TO CASE INTERVIEWSWalk the interviewer through your thinkingPrioritise issu

19、esAsk relevant questionsState findings for each analysisDeliveryDealer checkArrange appointmentDeliverUNDERSTAND ORDER PROCESSINGFurther analysis5 options (2 possibilitiesper option)One combina-tion of options per batch3 weeks transportation time32 possibilitiesTakes 7 month to complete one cycleTra

20、nsport/inventoryTransport by shipCars shipped once a weekManufac-turingCentralised in the U.S.Done in batches(1 week)Dealeridentify carLocal inventoryFactory inventoryNew build requiredAgree saleProcessPriceCar modelOptionsConcludeAnalyseStructureClarifyA GOOD APPROACH TO CASE INTERVIEWSSummarise th

21、e discussionDiscuss trade-offsDevelop overall recommendationsRelate back to problem statementPropose actionable recommendationsManufacture cars in smaller batchesPropose fewer optionsMove to dealer-fitted options (whenever possible)Introduce flexible manufacturing systemSynthesise(The 30 second elev

22、ator 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 demand5 options implies 32 modelsBatches of 1 week implies 7 month cycleAdd 3 weeks transportation and it makes 8 month maximum waiting time”CONCLUDE1.Introduction2.A good approach to case interviews3.Preparation tips and hints4.Breakout sessions5.DrinksTODAYS AGENDAHINTS . . . WHAT TO DORelax!Practice case problem solving before the interviewListen (take notes if you wi