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McKineyOnlinecasestudyTostepthroughthiscaseexample,wewillgiveyousomeinformation,askaquestion,andthen,whenyouareready,giveyouasampleanswer.Wehopethattheexercisewillgiveyouasenseoftheflowofacaseinterview.(Pleasenote,youcanstopthisexerciseandpickupwhereyouleftofflater.Yourcookiesmustbeontousethisfeature).Inthisexercise,youwillansweraseriesofquestionsasthecaseunfolds.Weprovideourrecommendedanswersaftereachquestion,withwhichyoucancompareyourownanswers.Wewanttoemphasizethatmostquestionsinacasestudydonothaveasinglerightanswer.Inalivecaseinterview,wearemoreinterestedinyourexplanationofhowyouarrivedatyouranswer,notjusttheansweritself.Aninterviewercanalwaysassessdifferentbutequallyvalidwaysofapproachinganissue,andthenbringyoubacktotheparticularlineofinquirythatheorshewantstopursue.Youshouldalsokeepinmindthatinalivecase,therewillbefarmoreinteractionwiththeinterviewerthanthisexerciseallows.Forexample,youwillhavetheopportunitytoaskclarifyingquestions.Finally,alivecaseinterviewwouldtypicallybecompletedin30-45minutes,dependingonhowthecaseevolves.Inthison-lineexercise,thereisnotimelimit.Thereareeightquestionsinthison-linecasestudy.Thiscasestudyisdesignedtoroughlysimulateoneduringyourinterview,soyouwillnotbeabletoskipaheadtothenextquestionuntilyouhaveansweredtheoneyouareon.YoucanrefreshyourmemoryofpreviousanswersbyclickingthehighlightedQ&Alinkstotheleft.Toprinttheanswer,clickontheprinticonthatappearsintheTOPRIGHTcorner.Attheend,youcanprinttheentireon-linecasestudyatonce.ThecaseQuestion1ClientGoal:DoublethenumberofrecruitswhilemaintainingtheirqualitywithminimalincreaseinresourcesexpendedOurclientrecruitsgraduatingcollegeseniorsforentry-levelpositionsinlocationsaroundtheworld.Itcurrentlyhiresandplaces500graduatesperyearbutwouldliketotripleinsizeoverthenexttenyearswhilemaintainingquality.Assumethattheincreasemustallcomefromhiringgraduatingseniors.(Inanactualcase,youmaynotbegiventhisandotherassumptionsunlessyouask.)Theclient'scurrentrecruitingbudgetis$2millionannually,andwhileitisinastrongfinancialposition,itwouldliketospendasfewadditionalresourcesaspossibleonrecruiting.McKinseyisadvisingtheclientonwhatstepsitwillneedtotakeinordertomeetitsgrowthtargets,whilestayingwithinitsbudgetconstraints.Q1:WhatleversdoestheorganizationhaveatitsdisposaltoachieveitsgrowthgoalA:Somepossibleleversaregivenbelow.It'sterrificifyouidentifiedseveraloftheseandperhapssomeothers.AttractmoreapplicantsatthesamecostReviewthelistofcampusestargeted.,optimizeresourceallocationacrossschools).Thereviewmayresultinaddingcertainhigherpotentialcampusesandeliminatingotheronesthatappeartohavemorelimitedpotential.Reviewrecruitingapproachateachcampus.,optimizecost-effectivenessofmessagesandapproachesateachschool).Extendofferstoahigherpercentageofapplicantswhilemaintainingquality.,reducethenumberofpeoplewhoareturneddownwhowouldhaveperformedequallywellinthejob)Improveacceptanceratesamongofferees.,bettercommunicatethebenefitsofthejobrelativetoalternativesorimprovetheattractivenessofthejobrelativetoalternatives)Question2Fortheremainderofthediscussionwe'dliketofocusonthetwospecificleversinvolvingattractingmoreapplicantsatthesamecost.Reviewthelistofcampusestargeted.,optimizeresourceallocationacrossschools).Thereviewmayresultinaddingcertainhigherpotentialcampusesandeliminatingotheronesthatappeartohavemorelimitedpotential.Reviewrecruitingapproachateachcampus.,optimizecost-effectivenessofmessagesandapproachesateachschool).Pleasenotethatifyouidentifieddifferentbutequallyvalidlevers,theinterviewerwouldbeabletoassessthem.Butforthepurposeofthiscasestudy,wearegoingtofocusonthesetwolevers.Q2:HowwouldyouinitiallyapproachdeterminingwhethertheclientcanincreasehiringbyadjustingthelistofcampusestargetedWhatsortofanalysiswouldyouwanttoconductandwhyA:Youmighttakethefollowingapproach,wherewe'veoutlinedtwoavenuesofanalysis:EstimatethehiringpotentialacrossschoolsAnalyzethenumberofhiresbyschooloverthelastseveralyearsDevelopacomprehensivelistofschoolsthatmeetourrequirementsandaminimumsetofstandardsforrecruitsSurveyseniorsattheseschoolstodetermineinterestinanentry-levelpositionwiththeclientConsiderthesizeofthegraduatingclassateachschool,determinehowthatclassmightbesegmented.,eachclasscouldbesegmentedbydisciplineorsegmentedbasedoncareerinterestsinresponsetothesurvey),thencalculatethesizeofeachsegmentEstimatetheoptimalcost-per-hireacrossschoolsComparethecurrentcost-perhireacrossschoolsIdentifyopportunitiestodecreasethecost-per-hireateachschoolHelpfulTipYoumayhaveaslightlydifferentlist.Whateveryourapproach,welovetoseecandidatescomeataprobleminmorethanoneway,butstilladdresstheissueasdirectlyandpracticallyaspossible.Ingivingtheanswer,it'susefulifyouareclearabouthowtheresultsoftheanalysiswouldhelptoanswertheoriginalquestionposed.Question3Twenty-fivepercentoftheannualrecruitingbudgetisspentoncandidates.,attracting,assessing,andgettingthemtoaccept).Twentypercentofhiresarecategorizedas"mostexpensive"andhaveanaveragecost-per-hireof$2,000.Q3:Whatistheaveragecost-per-hireofallothercandidatesRememberthattheclienthires500studentsperyearanditsannualrecruitingbudgetis$2million(informationthatwehopeyounotedearlier).A:Theansweris$750perhire(orlessthanhalfthecost-per-hireofthe"mostexpensive"candidates).Amountspentonthelessexpensivecandidates:25%of$2millionbudget=$500,000spentoncandidates20%of500student=100studentscategorizedas"mostexpensive"100x$2,000cost-per-hire=$200,000spenton"mostexpensive"hires$500,000recruitingbudget-$200,000=$300,000remainingforallotherhiresThenumberoflessexpensivecandidates:500hires-100=400"otherhires"Cost-per-hireofthelessexpensivecandidates:$300,000/400=$750perhireHelpfulTipWhileyoumayfindthatdoingastraightforwardmathprobleminthecontextofaninterviewisabittougher,youcanseethatitisjustamatterofbreakingtheproblemdown.Wearelookingforbothyourabilitytosettheanalysisupproperlyandthentodothemathinrealtime.Question4Q:Inordertodecidewhethertoreducecostsattheleastefficientschools.,thosewithanaveragecostperhireof$2,000),whatelsewouldyouwanttoknowA:Someofthepossibleanswersaregivenbelow.Basicquestions:Whatarethecomponentsofcostsattheseschools(whyisitsoexpensivetorecruitthere)WhatopportunitiesexisttoreducecostsHowmuchcostsavingswouldresultfromimplementingeachoftheopportunitiesWhatconsequenceswouldimplementingeachoftheseopportunitieshaveonrecruitingattheleastefficientschoolsQuestionsdemonstratingfurtherinsight:Whyisthecostloweratmoreefficientschools,andaretherebestpracticesinresourcemanagementthatcanbeappliedtotheleastefficientschoolsIfwereducecostsattheleastefficientschools,whatwillwedowiththecostsavings.,whatwouldbethebenefitofspendingthemoneyelsewherevs.whereitiscurrentlybeingspent)HelpfulTipWewouldnotexpectanyonetocomeupwithalloftheseanswers,butwehopesomeofyouranswersheadinthesamedirectionasours.Yoursmaybringsomeadditionalinsights.Ineithercase,besurethatyoucanclearlyexplainhowyourquestionwillbringyouclosertotherightdecision.Question5TheMcKinseyteamconductssomeanalysisthatindicatesthatincreasingspendingonblanketadvertising.,advertisements/flyersoncampus)doesnotyieldanysignificantincreaseinhires.Q5:Giventhatincreasedblanketadvertisingspendingseemstoberelativelyineffective,andtheclientdoesn'twanttoincreaseoverallcosts,whatmightbesomeotherideasforincreasingthecandidatepoolonaspecificcampusA:Wearelookingforatleastacoupleofanswersliketheonesgivenbelow:Improve/enhancerecruitingmessages.,understandtargetcandidategroup,refocusmessageonthisgroup,understandcompetitivedynamiconcampus)Utilizereferrals.,faculty,alumni)Comeupwithcreativewaystotargetspecificdepartments/clubsoftheschoolRethinkadvertisingspending-whileincreasingblanketadspendingdoesn'tseemtowork,advertisingmightstillbethemostefficientandeffectivewaytoincreasethenumberofcandidatesifitisdeployedinamoresystematic,targetedwayHelpfulTipThisquestionisagoodonefordemonstratingcreativitybecausethere'salonglistofpossibleideas.Additionalinsightsintohowagivenideawouldbeapproachedandhowmuchitwouldcostarehelpful.Question6Forsimplicity'ssake,let'ssaywe'veconductedmarketresearchandfoundthattherearetwotypesofpeopleoneachcampus,AandB.Historically,ourclienthasalsousedtwotypesofrecruitingmessagesinitsadvertising.Thefirst,called"SeetheWorld,"getsonepercentoftypeAstudentstoapply,butthreepercentoftypeBstudents.Thesecond,called"PathwaytoLeadership,"getsfivepercentofTypeAstudentstoapply,butonlytwopercentoftypeBstudents.ThechartbelowliststhebreakdownoftypesAandBstudentsatsomeofourmajorcampuses,andthemessageourclientisusingoncampus.School%ofTypeA%ofTypeBRecruitingMessageUsedStudents80%Students20%onCampusUniversity1University2University3University4PathwaytoLeadershipSeetheWorld48%52%70%30%PathwaytoLeadershipSeetheWorld60%40%Q6:Assumingthere'snodifferencebetweenthecostsofeachmessage,whatcanyoutellmefromthisinformationSchool%ofTypeA%ofTypeBRecruitingMessageUsedStudents80%Students20%onCampusUniversity1University2University3University4PathwaytoLeadershipSeetheWorld48%52%70%30%PathwaytoLeadershipSeetheWorld60%40%A:Accordingtothesenumbers,theclientshouldusethe"PathwaytoLeadership"messageacrossallfouruniversities.The"SeetheWorld"messageispreferableonlyifmorethan80%ofthestudentsatagivenuniversityareoftypeB.HelpfulTipAnevenmoreinsightfulresponsewouldmentionthattheultimateanswerdependsonthecostofeachmessage,whetherthecostincreasesdependingonthenumberofstudentsatthecampus,andhowinterestedweareinstudentsofTypeAvs.TypeB.,willonetypebemorelikelythantheothertogetanofferandtobesuccessfulonthejob).Onecouldimagineusingbothmessagesonsomecampusesiftheadditionalcostwerejustifiedbytheresultingincreaseinhires.Question7University4graduates1,000seniorseachyear.Q7:HowmanynewcandidatesmightbegeneratedbychangingtherecruitingmessageatUniversity4toPathwaytoLeadershipA:Theansweris20candidates.,anincreaseofover100%).NumberofeachtypeofstudentatUniversity4:1,000seniorsx60%=600TypeAstudents1,000seniorsx40%=400TypeBstudentsCandidatesattractedbeSeetheWorldmessage:(1%x600)+(3%x400)=18candidatesCandidatesattractedbyPathwaytoLeadershipmessage:(5%x600)+(2%x400)=38candidatesIncreaseincandidatesresultingfromchangeinmessage:38-18=20morecandidates(anincreaseofover100%)Question8Q8:Whatsortofnextstepsshouldwetellourclientwe'dliketotakebasedonwhatwehavediscussedtodayA:Theabilitytocometoalogical,defensiblesynthesisbasedontheinformationavailableatanypointinanengagementiscriticaltotheworkwedo.Eventhoughwe'dconsiderourselvestobeveryearlyintheove
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