Before we look at individual Cases, it is important to begin by looking at analysis frameworks that commonly can be used to address Case Study questions.In this chapter, we will outline some of the core frameworks and some additional Consulting concepts that are important to grasp and will form part of many interviews.Tags: Olmec Civilization EssayHow To Write A Application Essay For CollegeBasics Of Writing A Persuasive EssayUnit 3 Marketing CourseworkSocial Work Continuing Education CoursesEssay On Role Model My Father
That being said, a basic-to-moderate understanding of the Income Statement, Balance Sheet and Statement of Cash Flows, and how they work together, is very relevant to many interviews.
(You might even be provided with a basic Income Statement or Balance Sheet of a company as part of a Case Study interview question.) Rather than reinventing the wheel and writing content on Finance and Accounting in this guide, we recommend you review any standard, basic Financial Accounting textbook to familiarize yourself with the components of basic Financial Statements: We also recommend that you familiarize yourself with some basic core Finance concepts (Net Income, EBIT (Operating Profit), EBITDA, Free Cash Flow, Internal Rate of Return, Net Present Value, and Enterprise Value are good places to start) and core Valuation techniques (Cost of Capital, Comparable Company Analysis, Precedent Transaction Analysis, Discounted Cash Flow analysis, and Leverage Buyout analysis).
In addition to introductory Finance and Accounting textbooks, we highly recommend that these candidates read the Street of Walls Investment Banking Technical Training guide, which addresses complex details around Financial Statements, Accounting and Valuation at a very detailed level.
The questions in this chapter are representative examples of Guesstimate Cases.
For example, a classic SWOT analysis might entail benchmarking Delta Airlines with the airline industry as a whole; an extension could entail benchmarking the entire airline industry against the broad transportation sector.
You should be very familiar with the well-known frameworks already discussed in this chapter, although it is unlikely that an interviewer would ask you to use a particular framework in your analysis.The “3 Cs” approach is to address any Case situation by assessing the: involved in a case (for example: how to increase sales resulting from any profitability optimization case, deciding on an approach to enter a market, etc.).When combined with the 3 Cs, this framework can cover many topics and as you practice more Case Study questions, you’ll develop a better sense of when and how to draw from these frameworks.For example, a Company bringing a new product to market would require a market size analysis, competitor analysis, as well as understanding the key customer segments.The more you practice, the easier the cases will become and the more articulate and structured you’ll be in your answers.These techniques tend to be numerical, and occur frequently, although none are comprehensive or broad enough to fall into the category of a “Framework”: Unlike Investment Banking interviews, which can be detailed and highly technical in terms of Finance and Accounting, Consulting interviews and the Consulting job itself revolve much more around estimation and exercising business judgment and “what-if” analysis.Rarely would a Consultant be called upon to develop and maintain a detailed, precise financial model for Discounted Cash Flow valuation, for example.You are therefore getting expert case interview advice from those who have walked in your shoes.(2015 edition) contains many chapters covering everything from Case Interview Skills, Market Sizing & Estimation Cases, Business Problem & Logic Problem Cases, through to Data & Chart Cases as well as Case Interview Narratives transcribed to give you a unique fly on the wall perspective of the case interview process.However an interviewer could potentially ask you for a SWOT analysis, and you should be prepared to apply it in that case.SWOT is effectively a quick, high-level market landscape/competitive dynamics analysis arranged using the following terminology: to other, related industries or sub-industries within the economy.