CIP

Question 1

What is partners biggest fear?

Answer 1

That you speak your opinion on behalf of the company.

Choose your words carefully and say;

• The company should do X but I do not have the facts to be 100 %
• Tell the client confidently that you do not know the answer if that is the case
• “in most cases the client should do X”.

Question 2

What is a KEY (many plus points) way to end your synthesis?

Answer 2

Restating your initial conclusion from the beginning of the synthesis AND following up with “If I had more time, we could also look into X, X and X in order to …….”

(sell more consultant hours)

Question 3

Why do you use a framework?

Answer 3

To test your hypothesis.

Nothing else. Hence, STATE YOUR HYPOTHESIS

Question 4

Why do we use hypothesis’?

Answer 4

It is the scientific metho.d

Nothing is left to intuition and guesses.

All about structured problem-solving which always gets the answer

Question 5

When should you state your hypothesis?

Answer 5

within 5 minutes.

But it is fine to first ask a few background questions before you state your hypothesis based on the objective and company information.

Question 6

what should you ask yourself every time you make a sub-conclusion?

Answer 6

“The reasons that can change the outcome of the conclusion AND any potential reasons we have forgotten to take into account?”

Question 7

What are 5 great tips for your drill-down analysis?

Answer 7

1. Start with the branch that eliminates the most uncertainty first
2. Use both qualitative (30 %) and quantiative (70 %) quesitons
3. Don’t stop drilling down a branch until you reach a conclusion
4. Stop analyzing when you have found the MININALLY NECESSARY (80/20)
5. Use diagrams to take notes
   
   1. Have one set of papers for hypothesis and issue tree
   2. And one for other thoughts and computations

Question 8

What is a great synthesis?

Answer 8

1. Conclusion
2. Supporting statements
   
   1. Supporting 1
   2. supporting 2
   3. (supporting 3)
3. Restatement of conclusion + “if i had more time…..” (sell more time)

Question 9

How does a potential profitability analysis look?

Answer 9

Question 10

what are TWO alternatives to this setup of the profitability framework?

Answer 10

Alternative 1:

• Costs
  
  • Fixed costs
  • Variable costs
    
    • # of units sold
    • Variable cost per unit

Alternative 2: (useful for PROFIT objectives with multiple business units)

• Profitability
• Profitability of Business unit 1
  
  • Revenue
    
    • Price
    • # of units sold
  • Cost
    
    • Fixed cost
    • Variable cost
      
      • # of units produced
      • variable cost per unit
• Profitbability of business unit 2
• (same thing)

Question 11

What are the two main questions to ask regarding numerical data?

Answer 11

1. Compare to historical data
2. Compare to competitors / rest of the industry

Question 12

What are some of the classic questions to ask within “customer”?

Answer 12

1. Who is the customer
   
   1. Identify segments (segment size, growth rate, percentage of market)
   2. Compare current-year metrics to historical metrics (look for trends)
2. What does each customer segment want? (identify key needs)
3. Price sensitivity of each segment
4. Distribution channel preference by segement
5. Customer concentration and power

Question 13

What are some of the main questions to ask regarding product?

Answer 13

1. Nature of product (what it does, how it’s used, why it is useful)
2. Commodity or differentiable good?
3. Any complementary goods?
4. Any substitutes? (indirect competitors? don’t buy anything?)
5. Product’s life cycle
6. Packaging

Question 14

What are some of the main questions to ask within “Company”?

Answer 14

1. Capabilities and expertise + competitive advantage
2. Distribution channels
3. Cost structure (fixed vs. variable)
4. Investment cost (only if case involves investment decision)
5. Intangibles
6. financial situation
7. Organizational structure

Question 15

what are some of the main questions to ask within “competitor”?

Answer 15

1. # of competitors and market share (so concentration)
2. Competitor behavior (target segment, products, pricing, distribution)
3. Best practice (are they doing things we’re not?)
4. Barriers to entry (do we need to worry about new entrants?)
5. Supplier concentration
6. Regulatory environment

Question 16

what should you do for M&A cases?

Answer 16

Do the business situation framework 3 times.

1) Company A
2) Company B
3) Company (A+B) combined as one company

Question 17

What is a great way to start your analysis?

Answer 17

Explain the first 2-3 layers of your issue tree in the opening regardless of case type.

Shows that you are on top of the game and is easy for the interviewer to follow.

Question 18

How should you deal with numbers/calculations?

Answer 18

Write out the formulas in words first.

then calculate one number at a time.

Take the interviewer with you in your thought process.

It is better to math a little slower than doing it wrong.

Besides, clients won’t understand your quick head-math anyway so it is best to show them.

Question 19

What does it mean when the interviewer says “The client think that X is the right decision”

Answer 19

It is essentially the interviewer giving you a hypothesis to begin with.

USE IT

Question 20

What does a good consulting slide include?

Answer 20

• A title that in itself explains the entire slide and takes part in a bigger story of slide-headlines ==> Should explain the “so what”
• A chart label explaining the chart
• A chart or data table

Question 21

What is the most important phrase to remember when asking questions?

Answer 21

“I’d like to look at “X” and break it down to its component parts. Do we have any more detailed data available on “X” and the way “x” is broken down?

ask generally so you don’t use a wrong/less efficient breakdown of component parts

Question 22

what are some of the most important questions for “entering new market” cases?

Answer 22

1. Market dynamics

• Competition
• Market share
• Comparative products and services
• Barriers to entry

2. Way of entry:

• Start from scratch
• Joint venture with existing player
• Acquisition / Merger

Question 23

what are some of the most important questions for “industry analysis” cases?

Answer 23

Current industry structure

• Life cycle
• Performance, margins
• Major players and market share
• Industry changes (new players, new technologies)
• Drivers; brand, size, technology

Suppliers

• How many?
• Product availability
• What’s going on in the market

Future

• Expanding or shrinking?
• M&As
• Barrier to entry or exit

Question 24

what are some of the most important questions for “M&A” cases?

Answer 24

Objectives

• Increase market access
• Diversify holdings
• Pre-empt the competition
• Enjoy tax advantages
• Incorporate synergies
• Increase shareholder value

Price

• Fair? Affordable?
• How to pay?
• If the economy sours…?

Due diligence

• What shape is the company in? the industry?
• how secure are its markets and customers?
• What are the margins?
• What is the best competitive response to acquistion?
• What are the legal issues

Exit strategies

• How long to keep it
• Divest parts of the organization?

Question 25

what are some of the most important questions for "new product" cases?

Answer 25

**Product** * Special or proprietary? * Financing * patented? * Substitutions and complementary products * Advantages and disadvantages * Place in product line * Cannibalizing own products? * Replacing existing product? **Market strategy** * Expansion of customer base * Prompts to competitive response * Barriers to entry * Major players and market share **Customers** * Who? how to reach them? * Retention **Financing** * Funding how? * Best allocation of funds? * Debt viable?

Question 26

what are some of the most important questions for "pricing strategy" cases?

Answer 26

Pricing * Company objective? * Pricing * Competitive pricing * Cost-based pricing * Price-based costing

Question 27

what are some of the most important questions for "growth stategy" cases?

Answer 27

**Assessment** * Is the industry growing? * How are we growing compared to the industry * Our prices relative to competitiors * What are our competitors marketing and development strategies * Which segments have the most potential? * funding for higher growth **Strategies** * Increase distribution channels * increase product line * invest in major marketing campaigns * diversify products or services offered

Question 28

what are some of the most important questions for "new business" cases?

Answer 28

Market * Who is the competition * What is their market share * product comparison * barriers to entry Cost/benefit analysis * Management * Marketing and strategic plan * distribution channels * product * customers * finance

Question 29

what are some of the most important questions for "competitive response" cases? and what are some potential answers/competitive responses strategically?

Answer 29

**Why?** * New product? * Competitior's strategy changed? * Other competitors' increased market share? **Stategy** * Acquire a competitor * Merge with competitors * Copy competitor * Hire the comptitor's management * Increase profile with marketing campaigns

Question 30

what are some of the most important questions for "increasing sales" cases?

Answer 30

**Assessment (increasing sales doesn't necessarily mean increasing profits)** * Growth relative to market * changes in makret share * Customer polls * Prices competitive? * Competitor's strategies (marketing and product development) **How?** * Increase volume * Increase amount of each sale * Increase prices * Create seasonal balance

Question 31

what are some of the most important questions for "reducing cost" cases?

Answer 31

**Asessment** * Get cost breakdown * Investigate for irregularities * Benchmark competitors * Consider labor-saving technologies **Cost analysis - internal** * Union wages * suppliers * materials * economies of scale * increased support systems **Cost analysis - external** * Economy * interest rates * government regulations * transportation/shupping strikes

Question 32

what are some of the most important questions for "profitability" cases?

Answer 32

**Always look at external factors first (****E(P = R - C) M)** **Revenue** * Identify revenue streams * Percentage of total revenue to each segment * Unusual balance? * Have percentages changed over time? * Any comparison to competitors? **Cost** * Fixed costs * Variable costs * shifts in costs * unusual costs * Benchmark competitors * Reduce costs without damaging revenue streams **Volume** * Expand into new areas * Increase sales (volume and force) * Increase marketing * Reduce prices * Improve customer service

Question 33

what are some of the most important questions for "turnaround" cases?

Answer 33

**Strategy** * Learn about company * Review-services, products, finances * Secure funding * Review talent and culture * Determine short-term/long-term goals * Write a business plan * Reassure clients, suppliers, distributors * Prioritize goals and develop some small successes for momentum

Question 34

What are the first three scenarios to analyze when faced with a "decline in sales" case?

Answer 34

1. Overall decline in market demand? 2. The possibility that the current marketplace is mature or your product obsolete (/outcompeted by newer innovations) 3. Loss of market share due to substitions?

Question 35

**what should you focus on in cases where the drop in profit is caused by revenue drop?**

Answer 35

- Marketing - Distribution

Question 36

What are the three reasons you should ask plenty of questions?

Answer 36

1. To get additional information that will help you identify and label the question 2. To demonstrate to the interviewer that you are not shy about asking probing questions under difficult circumstance (something you’ll be doing on a regular basis as a consultant) 3. To turn the question into a conversation (nothing turns off an interviewer more quickly than a five-minute monologue)

Question 37

Why should you pay close attention to the interviewer’s tone of voice and body language?

Answer 37

* Tone of voice and sentences ==\> sometimes you end up asking things that are irrelevant and that they are not supposed to talk about in the case. They might not even have the information. If they seem bored or look at your weirdly, you are questioning the wrong things * Body language ==\> If they look bored, it is likely that you are focusing on the wrong part of the case