What is a Case Interview? How Can I Prepare?

What is a Case Interview? How Can I Prepare?

Written By: David Grier

The case interview is often regarded as the most difficult type of interview, and for good reason. Successfully navigating a case interview requires quick thinking, efficient and accurate mathematics skills, and the ability to draw an innovative, meaningful conclusion from given information in a relatively short period. Case interviews are a tool often used by private equity firms and management consulting firms to test a candidate’s ability to investigate, interpret, and propose a solution to a business problem in a logical and structured fashion while under significant pressure. This gives the interviewer a good idea of the job candidate’s potential fit for their company.

Case studies may be presented to the interviewee in three different forms. The first form is the Brainteaser, and is not very widely used. Some tech companies, such as Google, have been known to include this type of case study in their interviews to gauge critical thinking skills, but this is rare. The second type of case study is the Estimation Case. This type of case requires the interviewee to break a case up into different parts, and is often presented as part of a Business Case. The Estimation Case requires both confidence and top-notch mathematical and problem-solving skills to answer successfully. The third type of case study is the Business Case. This is the most common type of case study, and often requires a combination of the skills required for the first two types of case studies. When solving a Business Case, the interviewee is expected to break the problem down into separate components, analyze the information given to them in the problem, collect additional data from the interviewer, and draw a hypothesis from the information they’ve gathered. The Business Case culminates in a strategic recommendation, which must be supported by facts from the case and the conclusions the interviewee has drawn.

Business Case interviews can be broken down into a four-part structure. The interviewer is looking for the following aptitudes in the candidate:

1.       Identify the scope of the problem.

2.       Break the problem down and identify business drivers and potential problem areas.

3.       Analyze information and develop insights.

4.       Summarize and communicate all information and insights gathered effectively.

One technique used to crack the case interview focuses on three separate analyses:

1.       Analyze the Market:

a.       Why should we enter the new market?

b.       What is the size of the market?

c.       What is our revenue potential in this new market?

d.       What trends can be found in this market?

e.       What distribution channels are predominant in this market? Could an innovation in distribution channels increase our market share in this market?

f.        What constitutes success in this market?

g.       What customer segments are present in this market?

h.       What are the barriers to entry and exit?

2.       Analyze the Client:

a.       How large is the company?

b.       How fast is it growing? How fast is it growing compared to other companies in the market?

c.       What differentiates their products from the rest of the market?

d.       What types of marketing has the company employed previously? How well have they worked?

e.       What is the company’s market share?

3.       Determine the Optimal Market Entry Strategy:

a.       Should we start a product line/company from scratch?

b.       Should we acquire a company that already has a share of the market/brand recognition in that market?

c.       Should we embark upon a joint venture?

d.       Should we outsource this segment of our business to another company?

If the interviewee can answer all or most of these questions, they should then be able to propose a strategy that will help the company enter the new market in an optimal position. This proposal may involve multiple calculations depending on the information given in the case, and must be supported by both quantitative and qualitative evidence.

                Successful performances in case interviews are the result of intensive practice. A variety of resources exists to help interviewees prepare for case interviews, including comprehensive solutions to a wide range of practice case material. Please stay tuned to the Zarb Graduate Business Career Services Blog (zarbgbcs.blogspot.com) for upcoming case studies and detailed solutions to real cases!