Tips and Tricks to Ace the Case
Thank you to everyone from the UMass community who applied to join IUCG for the Spring semester. For those of you interviewing this weekend, we have some quick tips for the case interview. Below you will find a selection of popular frameworks used to solve an array of cases, as well as links to some helpful resources. Study up, and good luck!
Profitability Framework
The profitability framework is considered one of the most popular frameworks, and is used when addressing a company that has issues with their bottom line.
Remember: Profit = Revenue – Costs
In a more holistic view: E(P=R-C)M, where E=economic conditions, P=profit, R=revenue, C=costs, M=market conditions
Revenue includes price per unit and number of units sold. Types of costs includes Fixed Costs (overhead and insurance) and Variable Costs (new machinery, packaging, raw materials, cost per unit, number of units, etc.)
Economic Conditions to keep in mind:
• Unemployment
• Strength of the Dollar
• Interest Rates
• Consumer Spending
Market Trends
• What are three year trends for this industry?
Note: Revenue can be further broken down by demographic, location, product line, etc.
Porter’s Five Forces
Are you trying to figure out where a company has room for growth? Are you looking into the company’s overall strategy regarding the creation of a new product? These are just two potential situations where Porter’s Five Forces will come in handy. Use this framework for a high level view of what your company’s strategy should be.
Supplier Power
• Number of suppliers
• Size of supplies
• Differentiation of inputs
• Your ability to substitute
• Switching costs
Threat of New Entry
• Time and cost of entry
• Specialist knowledge
• Economies of scale
• Cost advantages
• Technology protection
• Barriers to entry
Competitive Rivalry
• Number of competitors
• Quality difference
• Switching costs
• Customer loyalty
Buyer Power
• Number of customers
• Price sensitivity
• Size of each order
• Differences between competitors
• Bargaining leverage
Threat of Substitute
• Substitute performance
• Cost of change
IUCG’s 8 Case Commandments
- Pay attention to what the question asks
- Take notes
- Verify and ask clarifying questions
- Think before you speak
- Work the numbers
- Be coachable
- Close and summarize
- Don’t forget the original question
Below you will find some useful links relating to case interviews and how to prepare for them.
• McKinsey Interview Advice: http://www.mckinsey.com/careers/join_us/interview_prep
• Case Interview Prep from a former McKinsey Interviewer: http://www.caseinterview.com/case-interview-preparation
• BCG Interview Advice: http://careers.bcg.com/join/practice_cases.aspx
Feel free to do your own research, and good luck!
- Published in Publication
An Inside Look at Business Advisory Services
In honor of recruiting season, IUCG hosted information session with Ernst & Young and Grant Thornton to learn the ins and outs of Business Advisory Services (BAS). Both companies recruit at UMass and offer an array of internships and entry-level opportunities ranging from risk advisory services to business consulting ventures. The resounding theme in both presentations was that at whichever firm you choose to join, the work will be relatively the same; what separates them is their culture and the way that impacts their processes.
EY Advisory is a 6.5 billion dollar global practice with 34,000 professionals worldwide. With a large international network already, EY has an initiative to double the size of its advisory practice by 2020. Throughout the talk, the Governance Risk and Compliance (GRC) practice at EY was highly emphasized, touching on their Financial Services Risk Management practice as well. Senior Manager John Wilbur reiterated EY’s passion for homegrown talent and their dedication to work-life balance. He highlighted a low utilization rate, their flexible work week, and frequent social outings. A major proponent of EY’s business advisory services is their accelerated management track, with advisors becoming managers after just 8 years with the firm. Wilbur remarked, “EY pushes you to hit the ground running. At the end of your first year, they want you to be able run client meetings, and at the end of your second year they want you to be able to go to client meetings on your own.” Another benefit of choosing an international firm like EY is an expansive network of alumni, many of whom maintain their ties to the firm and offer exit opportunities to EY employees.
Similar to EY, Grant Thornton emphasized the importance of their culture, which helps to determine the way they do business. Kaila Kennedy and Anna Kamenetsky, Senior Associates at Grant Thornton, shared their experiences in the business advisory practice during their visit with IUCG. Like EY, Grant Thornton’s talk highlighted their GRC practice, but the differentiating factor at GT is the cross-disciplinary work brought by their merging of GRC and business consulting. GT also primarily focuses on mid-sized businesses, which present completely different challenges than large corporations. Kaila and Anna spoke a lot about their opportunities to see the world while on the job—traveling to places like India, Ireland, Germany, Hong Kong, and Prague, as well as the hands-on learning their projects offered. Perhaps the most important take-away from their talk was a broader understanding of the culture of mentorship and the tight knit community that exists at GT.
After meeting with GT and EY’s Business Advisory Services representatives, IUCG held an intragroup case competition to foster team and community development within the organization. It was a great way to acclimate the new members to what IUCG is all about, and give them hands-on experience related to BAS. After getting an inside look at business advisory services and practicing their problem solving skills, IUCG student analysts are ready to begin their projects next week!
- Published in Publication
Chapter Two of IUCG
Welcome back UMass! After a summer hiatus, IUCG is back in its fourth operational semester. With a fresh group of analysts and three new faces on the E-Team, we’re ready to take on Fall 2015. This semester marks the beginning of a new chapter for IUCG. The founding members have graduated, and the mentees have become the mentors. We are moving with a purpose into unchartered territory and it is invigorating to continue the growth and impact of IUCG.
Even though the people who first created our culture of mentorship and professional development have moved on to bigger and better things, the values they instilled in us all remain. This legacy starts with foundational learning about consulting in our development workshops. This semester the student analysts will learn valuable skills from case math and financial modeling, to LinkedIn tricks and the right way to network. We pride ourselves on the variety of perspectives and skillsets within our group, with individuals from every major within Isenberg, as well as some majors outside of the business field. We each bring something unique to the table, and it allows us to build dynamic relationships and grow even more as individuals, as students, and as young professionals. Our slogan, “Collaborate. Solve. Accelerate.” is brought to life in the classroom through our development workshops and consistently throughout our client engagements.
Out of our twenty-seven members this semester, nine individuals comprise the new analyst class, making it through the pool of applicants with a 10% acceptance rate. Along with the new analyst class entered new E-Team members, specifically three individuals: Joe Winston, Director of Case Materials; Sara Clemente, Director of Finance; Bill Sennott, Director of Development. While our membership has changed, the same culture that prizes intellectual curiosity and the desire to give back to our community and our university remains.
We are excited to push forward and to continue to develop both the Consulting Group as a whole and our members individually. There are big things happening in the upcoming weeks so stay tuned! As the projects commence and recruiting season continues in full swing, IUCG will be busy prepping project teams and clients alike. We are meeting with recruiters from EY and Grant Thornton this week, so check back in for the low down on all things Business Advisory Services.
- Published in Publication