HEC MBA Case Book

Spring 2019

HEC MBA Consulting Club

 A letter from the team:
Hi everyone,

Welcome to the latest edition to the HEC MBA Case Book. Initially created by our S17 colleagues, the Case Book is a key piece in our club
mission, and specifically the final pillar:

“…to build a long-term hub for HEC MBA students to drive broad awareness of consulting opportunities, engage with the firms of their interest
and prepare to achieve their professional goals across the world.”

Its purpose is to give HEC MBAs the tools and information they need to start their journey towards becoming the strongest possible candidates
for the careers they want. Far from exhaustive, this book should serve as merely a foundation on which practice, discussion and reflection should
build. The information is also reflective of necessarily limited sources, and does not purport to be demonstrative of every consulting firm, their
recruiting process, or their values.

Lastly, the insights within are the collective contributions of many dozens of HEC MBA students, whose diverse experiences have truly shaped
this book. We are extremely grateful for their participation and proud to call them our classmates.

Happy reading!

Best,

Luca Pasotti
Case Book Editor-in-Chief, S18
Jon Wiedeman
MBA Consulting Club President, S18

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 TABLE OF CONTENTS
8 sections to help you hone case interviews skills

1 How to use HEC Case Book 7

Overview of the Management Consulting industry 8
Introduction
Matrix: Big Companies vs Boutique Consulting 9
The Different Consulting Segments 10

2 Overview of the Consulting Interview 12

The FIT Interview 13
The Interview
The CASE Interview 14
Q&A 19

3 Aeronautical 21
Automotive 22
Banking 23
Fast Moving Consumer Goods 24
Industry
Impact Investing 25
Overviews Manufacturing 26
Pharmaceuticals 27
Private Equity 28
Technology 29
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 TABLE OF CONTENTS
8 sections to help you hone case interviews skills

4 Case Preparation 31
Trainer Case Facilitation 32
Structured Feedback 33

5 Soft vs Hard Skills 36

Trainee Case Preparation 37
Structured Learning 38

6 Making Connections 40
Networking Asking the Right Questions 41

7 Fit Interviews 43
Case Openings 46
Practice
Market Sizing 50
Mental Math 51

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 TABLE OF CONTENTS
8 sections to help you hone case interviews skills

Case Name Case Type Industry Difficulty

8 Downstream Oil Growth Oil & Gas 57

Consultancy M&A Consulting 63
Clothing Retailer Market Entry Retail 68
Printing Co. Pricing CPG 73
School Go / No Go Education 76
Pescador Group – NEW Investment Case Impact Investing 81
Cases Ultra Running Ltd. – NEW Growth Sport 86
Motor Sport – NEW Market Entry Sport 93
Mall Scooters – NEW Go / No Go Retail 112
Technology Takedown – NEW Competitive Strategy Technology 118
Neue Art Gallery – NEW Growth Arts 126
Sub Product Disposal – NEW Growth Mining 132

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`1
INTRODUCTION

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 1 INTRODUCTION: HOW TO USE CASE BOOK
Reading a case book is not a substitute to practice and structured learning

A case book designed to …however, reading it is not enough

support your preparation… ✔ to ensure interview readiness. !
How to use case book Activities that can help you master case interview
skills (Non-exhaustive)
❑ Read The Interview, Trainer and Trainee sections to get
familiar with the case interview format and expectations Mock
interviews
❑ Inform yourself on high level insights with the Industry Performance with
Mock consultants
Overviews
interviews
with former
❑ Observe a case offered by a friend to another friend consultants
Case
(shadowing) drills
(incl. fit)
❑ Perform case drills using the Practice section to Structured
hone skills on specific parts of case interviews feedback &
Cases learning
❑ Receive cases and ensure structured learning and with
performance improvement tracking friends
Reading
case
❑ Master one case as a trainer and offer it a diversity of books
trainees

❑ Actively track performance of trainees and provide

structured feedback

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 1 INTRODUCTION: MANAGEMENT CONSULTING INDUSTRY
Management consulting firms provide solutions to complex business problems

Industry Overview
Clients value objective perspectives, proprietary knowledge, and highly talented, productive consultants to solve their problems. Consulting firms
improve company performance through objective, expert advice and structured implementation of business solutions. 1

The management consulting industry is estimated at ~$250B and is closely tied to the performance of the overall economy 2. Yet through
specialized offerings, successful firms continue to be hired in good and bad economic times, whether to grow, cut costs, or turn things around.

Industry Breakdown
Generalist Specialist (Industry/Function/Service) Internal
Offer broad spectrum of business advisory needs, Focus on particular industry, function, or service Division of a larger, non-consulting firm which
and often rely on global/regional staffing models to area to differentiate on a narrow set of strengths. serves to tackle strategic problems for its own
source experts. Differentiate on capability, Targeted advisory services include M&A, company. Projects are similarly short, strategic and
experience, scope and lasting C-suite relationships turnarounds, market entry etc. Typically small (10- complex, but culture aligns more closely to
with the world’s largest corporations. 500FTEs) and more horizonal/flexible in culture3 corporate. Often called Corporate Strategy.

Key Trends
Digital & Design – Firms build out new competencies in digital strategy, analytics and design, largely through acquisitions as clients see technology
transforming every industry. The line between the business and its technology is blurring. Digital consulting expected to increase +13.5 percent in
2019 vs global consulting market (+4.1%)3

Expanding down the value chain – Clients demand deeper capabilities to test, implement and manage solutions instead of just conceptualizing
them. Previously pure strategy firms (McKinsey, BCG) have started to implement their own advice.

Outcome-based contracts – Clients who traditionally paid for time and materials demand outcomes instead. Contracts are increasingly paid upon
success of certain milestones, meaning consultants have more skin in the game (but also flexibility on how to deliver).

1Management Consultancies Association (MCA); [Link]; 3Vault, 2018

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 1 INTRODUCTION: MANAGEMENT CONSULTING INDUSTRY
Firms across the industry vary widely by size and specialization

Highly specialized More diversified Highly diversified

Global Firms

Mid-Size

Boutique

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 1 INTRODUCTION: MANAGEMENT CONSULTING INDUSTRY
Specializations typically center around an industry or functional expertise**

Healthcare Technology* Financial Public Retail & Energy & Automotive

Services* Sector Luxury Utilities

**Firms shown are

differentiated based on a
particular specialization. This
does not necessarily mean
that they don’t offer other
services.

*The Tech (Google, Microsoft, Strategy Technology* Marketing Operations HR Finance Risk Design & Sustainability
SAP) and Financial Services (JP Innovation
Morgan, Blackstone) industries
differ from the Tech and Finance
functions within other companies
(who may be of any industry)

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`2
THE CONSULTING INTERVIEW

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 2 THE CONSULTING INTERVIEW: OVERVIEW
Consulting interviews are typically composed of three sections

Intro & Fit Case Wrap up / Q&A

10-15 min 30-40 min 5 min

Case Interviews can be further segmented into four parts:

Clarify and recap Structure

Deep dive analysis Recommendations
the problem approach

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 2 THE CONSULTING INTERVIEW: INTRO & FIT
Fit questions at the start of an interview determine the tone for the rest of the session

Be very well prepared for the most obvious Demonstrate what makes you great, and connect:
questions:

Tell me about yourself: Make a good first impression!

❑ Practice a short, 30-60 second elevator pitch to address this request, ❑ Smile! Be polite and respectful, yet also firm, concise and clever.
identifying your key differentiators which make you both valuable and
memorable. Have an opinion

❑ Be sincere. Firms will respect maturity, thoughtfulness and conviction. ❑ As an MBA, you should have thoughtful opinions on the industry, the firm
and leadership. Remain humble and open, but demonstrate your judgment.
Walk me through your CV:
Try to create a genuine connection with the interviewer
❑ Link your professional steps in a way that shows that your career was a
planned and rational journey, but be truthful about surprises. ❑ If she or he allows, ask a couple of questions about their background and
previous experiences in addition to what you may already know.
❑ Explain your thinking with each decision to demonstrate logic. Highlight
what you learned at each stage which eventually led you to the amazing ❑ Recognize that only sincerity creates genuine connections. Consultants are
firm that you are interviewing for. human, they are fallible and they are interested in you. Be yourself.

❑ Be concise, yet informative. Don’t dive into details or bullets, just explain PRO-TIP
the journey.
48h to 24h before the interview, call the HR to confirm your appointment
Why this firm? and ask who your interviewer(s) will be

❑ Do your homework! Do comprehensive and honest research of the ❑ Shows professionalism and allow you to research who is interviewing you.
company. Your reasons should be unique to this firm and not others. Interviewers – especially partners – will likely give you a case related to
his/her previous experience.
❑ Find common ground to show a good fit. The firm’s work and culture should
align to your interests, style or experience. If your answer feels contrived, ❑ Helps you find common ground and tailor your questions.
you either don’t know enough about the firm or you shouldn’t be there.

Note: See Practice section for a list of common fit questions 13

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 2 THE CONSULTING INTERVIEW: CASE
Keeping in mind why case interviews are performed will put you in the right mindset

⮚ To assess candidates’ skills used every day on the job in

Why case management consulting:
interviews are used ⮚ Logical structure of complex problems
in consulting? ⮚ Communication and engagement
⮚ Analytical thinking under pressure

✔ Empathy ✔ Structure
Which skills are ✔ Problem solving ✔ Executive speak
being assessed? ✔ Enthusiasm ✔ Business acumen
✔ Ownership ✔ Creativity

🗶 A math exam
What case 🗶 Memory test on frameworks
interviews are not? 🗶 A speed run
🗶 A knowledge test

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 2 THE CONSULTING INTERVIEW: CASE
Cases involve difficult business questions which require clarification and a structured approach

1. Clarify and recap the problem 2. Structure approach

❑ Understand the client’s business: the business model of the ❑ Request a moment to collect your thoughts
company, its economic and competitive environment
❑ Breakdown relevant issues into component parts, or
❑ Understand the client’s objective: clarify the success questions that will collectively answer the client’s
criteria, relevant KPIs for the client problem once answered individually

❑ Possibly clarify critical time-related or geographic ❑ Organise everything into a MECE* issue tree tailored to
information. Does the firm operate regionally or globally? the case, typically with 2 or 3 layers. This is your
Does it need to exit this investment in X years? structure

❑ Recap: summarize the situation in your own words, including ❑ Present your structure in an organized and clear way,
success criteria and relevant context you’ve clarified from left to right and top to bottom similar to the
pyramid method
PRO-TIP
PRO-TIP
BOTG
Use right angles and avoid lists
If it helps, you can remember this acronym for each of the
common areas to clarify. Consider B and O to be always Structures which use right angles rather than diagonal ones
necessary. Use your judgment to decide if T or G are relevant are the most organized. Subsections should be placed in
boxes rather than a vertical list. This will allow you to
remain organized if adding to your structure later.**

*MECE stands for Mutually Exclusive Collectively Exhaustive. There is no overlap between concepts, yet when put together there are no
gaps to solve the overall question
**Examples of these structures can be seen in our Cases section
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 2 THE CONSULTING INTERVIEW: CASE
Your analysis must find the balance between driving to the answer and engaging the interviewer

3. Deep dive analysis A note on exhibits…

Consider a few initial steps to take upon receiving any exhibit:

1. Take a brief moment to understand what you received. Don’t

❑ Ask questions and collect information from your structure, following it in a methodical
dive into the data or details, but level set what you’re looking at.
way.

❑ Analyse the information provided, making comments about insights you can generate 2. Communicate to the interviewer what you just received. It
from them and about what could be relevant for the solution may sound simple, but interviewers appreciate it. Ex. “Interesting,
it looks like we have the largest markets for the clothing industry
❑ Make quick calculations mentally, out loud. Approximations may be allowed if asked. and growth from those markets.”
Use paper and pen to keep track of your calculations, but not to calculate if possible
3. Find and read any footnotes. Many exhibits will include critical
❑ Drive to the answer by proactively suggesting next steps or identifying where new information hidden in footnotes to test attention to detail. Don’t
insights may help you solve other questions. If you don’t know where to go next, return get caught off guard by one.
to your structure. A good one will lead you in the right direction.
4. Articulate the key findings from the exhibit. Consider all
❑ Engage the interviewer as a true consultant. Turn your structure towards them when exhibits relative to each other. What an exhibit says is far less
sharing. Continuously ensure they are on the same page as you. Confirm that they important than what it means to the overall case problem.
understand and listen to their (often subtle) directions. Never keep your analysis or
thinking to yourself. World’s largest markets – Clothing Industry
In terms of market growth (in %), 2018 data

PRO-TIP

Structure your brainstorming

If asked to brainstorm or provide numerous examples of something, bucket your ideas. This <5%

5-10%

will show the interviewer you are always a structured thinker, you will communicate more
+10%

clearly, and most important you will know when to stop ideating.

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 2 THE CONSULTING INTERVIEW: CASE
Market sizing is a common skill required as a component of your overall analysis

Top-Down Method Bottom-Up Method

❑ Starting from the largest relevant figure and reducing it ❑ Starting from the building blocks of your business (one
using information which more specifically targets our unit of product, one client served) and scaling those units
market up for the addressable market
Both methods adhere to
Ex. “What is the market size for bike rentals in Ex. “What is the market size for bike rentals in
a simple 5-step method: Amsterdam?” Amsterdam?”

1. State the 1. I’d like to take a top-down approach to sizing this market 1. I’d like to take a bottom-up approach to sizing this market
approach
2. We could start with the population of Amsterdam 2. We could start with the price of a typical bike rental.
2. Start with the
relevant metric 3. Given different frequency of bike rentals by age, it makes 3. Given that some people are likely to rent by the hour and
sense to segment our market into age groups others for longer periods, we should segment our clients
3. Define buckets for
relevant nuance 4. If X bikes are rented each day at Y price, that gives us a 4. If X bikes are rented each day at Y price, that gives us a
total addressable market* of Z total addressable market* of Z
4. Calculate based
5. Hm, let me just confirm that my assumptions make sense 5. Hm, let me just confirm that my assumptions make sense
on assumptions
PRO-TIP PRO-TIP
5. Sanity check
Sensitivity Check Not all methods are equal

Keep track of your most questionable and impactful While it may be possible to size a market both ways, one of
assumptions, and communicate to the interviewer where any the two is typically more reasonable for a given problem.
possible weak spots may exist. If your final market size isn’t Consider which ways force you to make the fewest wild
sufficient, target these assumptions first to fix the problem. assumptions, or which fit best given the data at hand.

*A firm’s ‘total addressable market’ (TAM) is equivalent to

100% of the market demand, or the market size 17
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 2 THE CONSULTING INTERVIEW: CASE
Recommendations are often articulated best using the pyramid principle

Pyramid Principle is a concept to clearly and concisely

4. Recommendations
deliver information to executives within a recommendation:

1. Problem Statement
❑ Take a brief moment to collect everything you have learned
during the analysis and prepare to present your conclusion.

❑ Recap the key question being asked by the client in a single

sentence through a problem statement 2. Solution
Pyramid Principle
❑ Deliver the best solution for your case among the analysed 3. Key Points
alternatives, and highlight the key points why you chose
this solution.
4. Supporting Evidence
❑ Provide thoughtful supporting evidence to each key point:
be creative, practical and consistent. 5. Risks and Next Steps

❑ Pressure test your solution by highlighting risks for Example recommendation:

implementing each of your recommendations 1. We are here to determine whether your firm should enter into the retail clothing market in
China.
❑ Suggest next steps if relevant. This is particularly helpful if 2. We recommend that you do enter the market because
3. …it offers A) significant financial benefits and B) brand opportunities
there are key aspects of your structure that were not
4. A) Financial benefits come from the market size of $105B, up from $31B just ten years ago,
addressed throughout the case. Suggest tackling those as well as the prevalence of low cost production and efficient supplier ecosystems. B) Brand
questions in a further analysis. After all, a good consultant opportunities are clear in your vision to become a global clothing retailer and the access to
wants to keep the relationship ongoing! key client segments which strengthen your firm’s shift towards premium branding.
5. We do want to consider some risks involved with the market entry, including regulatory
approval from authorities and the competitive response of premium retailers who could drop
prices upon our entry. We recommend further analyzing customer willingness-to-pay given
various competitive price points as a next step.

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 2 THE CONSULTING INTERVIEW: WRAP UP / Q&A
Opportunities for questions at the end of an interview cannot be overlooked

The Q&A should be both for them… …and for you. Our bank of BAD fit
questions

Too ambiguous
❑ Use the Q&A to show strong points that you ❑ Use this opportunity to test what you have
felt you didn’t have opportunities to show learned about the firm by asking for specific • What is a day in the life of a
during the interview. It is, again, an examples from your interviewer’s experience: consultant?
opportunity to sell yourself!
• The firm has a vision – sure. But how does this • What makes you different
❑ Ask relevant and smart questions that will partner actively carry out that vision? How can from XYZ firm
show your interviewer that you have thought you as an associate contribute to it?
hard about the firm, its future and most • How do you like working
importantly how you can contribute • You’ve heard about skills development at all here?
levels. But how has that specifically helped this
No research
❑ DON’T waste time asking questions that you interviewer advance in their career? How do
can be found online or are likely to get they personally develop younger consultants? • What industries do you
ambiguous answers. You should have been work with?
able to find answers for many of these in your • All firms have difficult problems to solve. But
pre-interview research what keeps your interviewer up at night? What • What is the current strategy
will be the toughest challenge in the firm’s for the firm?
immediate future?
• Are there many people
❑ Understand more about the firm’s culture. Is it from [my school] working
really a good fit for you? Or do you just like the here?
name on the door?

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`3
INDUSTRY OVERVIEWS

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 3 INDUSTRY OVERVIEW: (1/9)
Aeronautical
Airlines Engine Manufacturing Airframe Manufacturing
Product and services Products and services Products and services
Overview • Passenger transportation (tourist, corporate, ethnic • Turbojet, Turboprop, Turbofan for mainly military • Civil, military and private aircraft
and charter) aircraft, small civil aircraft and large civil aircraft • So called C and D (advanced) maintenance checks.
• Cargo transportation respectively Competitive landscape
Competitive landscape • Commonly also participate in the energy generation • Boeing and Airbus dominate the short to long-haul
• Strong competition among carriers (high fixed costs turbines market segment.
and low marginal costs generate an incentive to Competitive landscape • Smaller players have an important market share of
pursue growth • Consolidated players in a high entry barrier industry the regional and express segment (fewer than 130
• Low cost carriers putting pressure in overall • Airline chooses engine provider but engine seats). E.g.: Embraer, Bombardier.
competition in short and medium-haul markets developer has to work closely with airframe • Airbus acquired Bombardier in 2018 following US
• Long-Haul markets dominated by legacy carriers manufacturer. restrictions to Bombardier sales in the US.

• According to IATA, Airline Industry became profitable • Closer relationship to airframe manufacturer as • Chinese technologic capabilities in aerospace
Trends in 2015 with ROC surpassing the Cost of Capital efficiency gains become harder to achieve developing at a rapid pace
• Cost of jet fuel plays an important role in determining • Development of cleaner fuel engines • Increasing demand for more diverse aircraft as
overall industry profitability • Development of quieter engines with each iteration airlines develop air taxis, personal transport
• Best ROIC are seen in North America and Europe • Renewed interest in supersonic engine for future • Rapid growth of the regional/express segment
• Overall, the industry remains highly leveraged civil applications • Decreased demand for very large long-haul aircraft
• Airline market evolving into the point-to-point (rather • Industry moving towards electric propulsion systems • Becoming more vertically integrated to include
than hub and spoke) model for long-haul routes • International regulations are driving fuel efficiency interiors, engines etc
• Further dissection of classes (Basic Economy, and noise reduction efforts • Offering more maintenance and warranty products
Premium Economy etc) • Development of large civil aircraft from China,
• Asia largest growth market with rising middle class Russia

Revenue drivers (customers and channels) Revenue drivers (customers and channels) Revenue drivers (customers and channels)
Drivers • Passengers revenue (business travelers provide • Sales of equipment to airlines (pax demand growth) • Sales of planes and parts to airlines
highest margins; economy no significant profit) • Sales to governments (military aircraft engines) • Sales to governments
• Cargo revenue • Maintenance of said equipment (growing fleet) • Maintenance checks
• Credit card and hospitality partnerships Cost drivers Cost drivers
Cost drivers • R+D (very high paid workforce) • R+D (very high paid workforce)
• Fleet (buy, lease, maintain), fuel, crew • High tech manufacturing • High tech manufacturing
• Technology continues to cut costs dramatically • Testing • Highly diversified part sourcing
• Airport fees • National and international certifications • Testing
• Cost of carbon credits • National and international certifications
For more information, please refer to: [Link]
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 3 INDUSTRY OVERVIEW: (2/9)
Automotive

Product and services: Automotive industry traditionally deals in design, manufacturing, marketing & selling vehicles (Commercial, Passenger, Off the road, etc.). Post-sales
Overview it provides the necessary maintenance & components support to the customers. Many car manufacturer also have a financial service (usually to propose leasing services).
Nowadays it has invented itself as a service provider wherein it provides not only the product but also the mobility services such as Car2Go to the consumers etc.

Competitive landscape: Owing to high infrastructure and fixed cost, the automotive industry is very competitive and price sensitive. In order to exploit the scale of economies
and marginal revenue, OEMs often go in a price war to sell the maximum products. At the same time, barring few cases such as Tesla, most of the organizations sell their
product through dealers which make them strong stakeholder and ended up taking a substantial chunk of profit margins. To lower their operating leverage (sensitivity to
market fluctuation), they normally outsource the operations. Due to thin margins, a few automobile majors have to wrap up their operations from price-sensitive markets such
as India etc. Still, automotive is an industry where many alliances are formed: many manufacturers build cars for competitors (modification of existing model or full
development).

In recent times, the automotive industry has completely transformed. It is no longer an industry selling only traditional products i.e. Automobiles. There are 4 recent trends
Trends “CASE” which are going to take over the entire value chain and business models of the automotive Industry.
Connected Vehicles: Device in an automobile which connects to another device within the car/home/data center etc. It includes features such as safety calls, GPS, remote
diagnostic, predictive maintenance etc.
Autonomous Vehicles: Self-driving cars. Coupled with shared mobility, autonomous car be an answer to many constraints such as high costs, parking space (Remotely
operated vehicle can be parked to a location where there is no space constraint and can be summoned anywhere when needed)
Shared Mobility: Due to complex technologies & regulations and hence cost associated with them, automobile organizations are now looking beyond the product. They are
now transforming into service providers with offerings such as vehicle sharing or ride sharing etc.
Electric Vehicles: Though very old in existence (1900s), EVs are the center of discussion in automobile organizations post-Paris Climate change summit. Increased cost, lack
of technology & charging infrastructure are a few among many challenges for full electrification. Different business models such as battery ownership, vehicle ownership,
charging infrastructure ownership, etc are emerging among OEMs from an EV perspective.

Revenue drivers (customers and channels): Traditionally revenues for the automotive sector are driven by features, safety, styling, quality, reliability, fuel efficiency &
Drivers aftersales services. Nowadays customers are more inclined towards new & green technologies such as connected vehicles, EV, etc. Increased fuel prices and government
regulations often disrupt the regular flow of the stream to which OEMs answer the constraints by giving discounts, heavy promotion, financing options, etc.

Cost drivers: Automotive industry is the industry where both fixed costs and variable costs are high. As a general rule of thumb, components cost constitutes 80% of the
vehicle cost which in turn gets heavily influenced by steel prices, economic downturn, labor cost. To get immune from labor cost, organizations move towards either low-cost
countries or high automation. To keep infrastructure cost low, organizations outsource the operations and to curtail the cost of outsourced operations, they create SRM
(supplier relationship management) and deploy different tools such as kaizens, lean, 6-sigma, VSM, etc to increase operational efficiencies. Still outsourcing of final product
can only be done in a limited distance as customization is a strong demand, which requires reactivity (hence, small distances).

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 3 INDUSTRY OVERVIEW: (1/10)
Banking

Retail banking: [aka consumer banking] is the typical mass-market banking which manages deposit accounts, such as checking, savings and loan offerings for individuals
Corporate banking: [aka commercial banking] is the equivalent of retail banking for businesses. Includes Transaction Banking, which involves transfer of money for domestic
Overview and cross-border payments, professional risk mitigation for international trade and the provision of trust, agency, depository, custody and related services.
Investment banking: First, act as intermediaries between entities that demand capital (e.g. corporations) and those that supply (e.g. investors), facilitated through debt and
equity offerings for companies as well as securities underwriting. Second, advise corporations on mergers, acquisitions, restructurings, and other major corporate actions. US
banks dominate the industry with a ~60% market share.
Competitive landscape is categorized by the depth and breadth of each firm’s products and services [aka “League Tables”]
• Tier 1: JPMorgan, Goldman Sachs, Citi, Morgan Stanley, Bank of America Merrill Lynch
• Tier 2: Deutsche Bank, Barclays, Credit Suisse, HSBC, UBS
• Tier 3: BNP Paribas, SocGen, Nomura

Retail banking: Digital transformation of processes and customer experience. Investing heavily in mobile centric customer experience. Banks to become more active in
blockchain and fintech developments. Real-Time-Payments (RTP) become faster and in high demand. Working to strengthen core new-age defenses (risk function), to improve
Trends data management and creating new client engagement models etc
Corporate banking: Global lending to see an upward trajectory, though banks have been adjusting their risk appetite on threats of slowdown and non performing assets
Transaction banking remains a stable source of topline for banks, but trends are moving towards more customized and tailored services for each clients. Increasing competition
from Fintech companies, in spaces like funds transfer, custody services and foreign exchange have created causes of concern for the incumbents. Increased use of blockchain,
AI and automation is to be expected
Investment banking: After the financial crisis, the recovery of the industry has been steady, with yearly increases in global M&A and capital raising. Regulatory changes
around Asset Management from MIFID II in Europe. Geo-political uncertainty with protectionist regimes may weigh on the business. Increasing focus on client customer
experience with customized focus products and services. Increased specialization as IBs see large experience gains and relationship capital made from engagements in a given
industry. Automation and artificial intelligence for IPO preparation, from scanning client emails to executing post-trade allocation requests
All: There has been a growing trend of regulatory divergence across the globe. Countries and companies deviate on approaches to create growth opportunities

Revenue drivers- “Front Office”, or revenue generating divisions

Drivers Corporate Finance/Investment Banking (IB): Fees for raising capital for clients through debt and equity capital markets, and for advisory services.
Sales and Trading: Buy and sell securities and other financial instruments as an intermediary on behalf of its clients. Revenue generated through fees or positions.
Asset Management: Provide equity, fixed income, money market, and alternative investment products and services to individual and institutional clients.

Cost drivers- “Middle” and “Back Office”, or control functions of the bank to support its core businesses, address regulations and manage risk
Research: Provide detailed company and industry research reports and make recommendations on whether to buy, sell, or hold public securities.
R&D: process improvement, outsourcing to low-cost centres, selling off non-core businesses i.e Restructuring, Infrastructure (IT, office buildings) etc
Support: Finance (accounting function), Risk, Legal, Technology, Audit etc
Pay and bonuses to revenue generating employees

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 3 INDUSTRY OVERVIEW: (4/9)
Fast-Moving Consumer Goods

FMCG firms produce and distribute consumer items which need to be replaced often, as opposed to more permanent items like a car, a piece of furniture or a
Overview computer. Common examples are food, cigarettes, beverages, cleaning products, clothing, personal care, makeup and other household products. They are
mostly purchased through retailers: grocery stores, drug stores and mass merchandisers.
4 Types of Products:
Convenience (routine buy and very little thought into the buying process – ex. toothpaste or laundry detergent); Shopping (require a bit more thought and
consideration, are bought less often – ex. clothing); Specialty (unique qualities and brand specific, meaning there are few substitutes); Unsought (those the
consumer doesn’t know they exist or that they’re needed – ex. fire extinguishers or innovative products new on the market).
Competitive landscape –
Highly competitive

Premiumization: Retailers continue to enter the low-end side of the market. In this industry, distribution is the name of the game.
Trends Data for consumer understanding: While the industry has always been driven by data and analytics, AI continues to become more prevalent. The pursuit of
consumer centricity becomes technological
Slow growth leads to M&A, corporate raiders: Large players have begun consolidating in search of new innovation, acquiring new upstart brands who have
captured much of the market growth (ex. Unilever acquired Dollar Shave Club after seeing its performances vs. Gillette). Activist investors become more vocal
(ex. P&G with Nelson Peltz; Nestlé being forced to split into 3 companies and close their L’Oréal holdings) in search of renewed growth and cost cutting.
Manufacturer-retailer collaborations: Manufacturers to partner on key steps in the distribution chain to fend off pressure from e-commerce, loss of brand-
loyalty and small brands gaining terrain. Ex. Vendor Managed Inventory initiative by P&G, which led the way for similar initiatives across the sector
Automation: Talent demand further exceeds supply for manufacturing jobs while wages keep increasing and robot prices are falling.
Online and omnichannel: Growing rapidly in an otherwise slow growing industry. Direct-to-consumer and multi-channel sales have also increased and seen
success.
Authenticity, experiences and brand values: Consumers are more socially/environmentally/sustainability aware and using access to information and
platforms to voice their perspectives. Betting on wellness seems to be a good strategy (ex. AB InBev investing heavily on non-alcoholic beverages and
sustainability).

Revenue drivers:
Drivers Distribution, market share, overall brand perception, share of shelf, POS presence, trade promotions, penetration and trial.
Including smart capabilities on the packaging might be an avenue for innovation and more engagement and presence (and value added) within the
home of consumers (Pernod Ricard created an Internet of Things glass that would collect data on the beverages they use and suggest cocktails, P&G
has invested in smart packaging that would order replacement once it’s done).
Cost drivers:
Trade promotions are (usually) the second largest item in the P&L of CPG companies. Optimizing this spending might increase profits and
competitiveness in the future.
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 3 INDUSTRY OVERVIEW: (5/9)
Impact Investing

Impact Investing in the context of Responsible and Sustainable Investing1

Overview ● Impact Investing is the most intentional way of utilizing capital of pursuing social and/or environmental measurable returns alongside financial returns.
Other strategies under the spectrum of capital include mitigating (Responsible Investing) or pursuing (Sustainable Investing) Environmental, Social, and
Governance (ESG) opportunities2.
Collaborative landscape
● Over 1,340 organizations currently manage $502 billion USD in impact investing assets worldwide, according to the Sizing of the Market Report from
the Global Impact Investing Network (GIIN)3.

Products:
Trends4 ● Some financing structures that you should be aware of are Mission Related Investments (MRI), Program Related Investments (PRI), Blended Finance,
Pay-for-Success Models (eg Social Impact Bonds), and Catalytic Capital.
Tools:
● With regards to impact measurement, you should know about the work of the Impact Management Project and BLab.
Policy:
● Governments are trying to clarify fiduciary duties and establish tax incentives for impact investors and social enterprises.

Catalysts
Drivers4 ● Investors and consumers around the world are driving momentum for positive changes in our financial and economic systems. Large corporations face
pressures to act responsibly towards multiple sets of stakeholders, consumers demand increasing transparency in business practices, and
environmentally or socially minded innovators excite investors and consumers alike about a more sustainable future.
Blockages
● Challenges facing the industry include: persistent misperceptions about the nature of investment opportunities, fragmentation in approaches to
measuring impact, and limited market infrastructure.

Sources and highly recommended reads:

1. [Link]
2. [Link]
3. [Link]
4. [Link]
5. [Link]
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 3 INDUSTRY OVERVIEW: (6/9)
Manufacturing

Product and services

Overview Large and diverse industry that provides product and services primarily used to produce other goods.
Main subsectors include: industrial automation and machinery, metals, construction and engineering, electrical equipment and
components, textile, chemical.
Traditionally B2B business which is capital intensive. highly competitive, and provides low margins.

Competitive landscape
Successful players are those that are able to constantly develop innovative products and processes, that provide a technological improvement or
lower cost.

Industry 4.0: The increased use of IoT (Internet of Things), using sensors and software to connect, monitor and control the production process as
Trends well as the introduction of robotic automation in conjunction.

Investments in R&D for new processes, machinery, products are increasingly high, therefore the size of the companies is increasing in order to be
able to afford them.

Specialisation is increasing as separation between companies that are focused on process innovation and manufacturing capabilities, as TSMC
(semiconductor producer) or Foxconn (electronics assembler), and companies that design the product, like Apple, is increasingly common.

Revenue drivers
Drivers Product quality and reliability, service to the customer in terms of co-engineering, delivery and after-sales.
Develop long term relationships with key customers though specialisation.
Geographical position of production plants, close to key markets and key customers.

Cost drivers
High volume and capacity saturation are key due to high fixed cost
Raw materials supply and brokerage at competitive cost and supply chain management
OEE (overall equipment efficiency) of production processes to key variable cost (including labour) low

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 3 INDUSTRY OVERVIEW: (7/9)
Pharmaceuticals
Industry Customers Internal look
Numbers: Generated 1.1 trillion dollars in Physicians: Generate prescriptions Marketing: Targets physicians to generate
Overview revenues in 2017. 48.1% was generated in the US Payers: Health insurance companies who manage prescriptions. Increasingly targets patients in
and 18% in Europe. Pharmaceutical sales in the clinical and financial risk of patients. legally possible ways (education or awareness
oncologic generated USD 81 bn. Government: Public payer, manages the fund of campaigns about diseases, as well as solutions
Competitive landscape: Top global players are public health systems. Policy maker. “around the pill” which facilitate drug application)
Pfizer, Merck and J&J from the US, Novartis, Health Agencies: grants or rejects market Market Access: Looks for reimbursement of
Roche, Sanofi, Bayer among others in Europe. authorization of new drugs in a specific country or medicines so that patients receive timely treatment
High threat of generics mostly in developing region. Sometimes they also set the drug’s price through pricing, health policy, value proposition
countries. together with Government and health economic strategies.
Regulation: One of the most regulated industries, Advocacy Groups: patient organizations that Medical: scientific liaison with physicians, can
from clinical trials to pricing and commercial ensure patient rights are respected. inform about «off-label» treatments (R&D plan)
activities. Patients Regulatory: works to get new drug market
authorization in the local country/region
• The US industry is the largest revenue • Patient-centricity. New therapies taking into • Increasing relevance of IT given cyber
Trends generator, however the Chinese sector has account patient preferences measured through security, data usage and applications focused
shown the highest growth rates over the quality of life questionnaires. on improving healthcare outcomes.
previous years. • Health Agencies are taking into account new • Market Access: Growing rapidly amid
• Look for alliance with tech companies to do frameworks based on patient preferences sharpening regulations
research in precision health, AI and machine (multicriteria analysis) to approve reimbursement • Digital: Advancing with the demand for more
learning in order to improve clinical of new drugs. personalized medicine, but lagging other
outcomes, reduce resources consumption • “Shift in power in physician-patient relationship” industries, due in part to duty to monitor and
and avoid under or late diagnosis. through digital age (emancipated patient) screen all activities for adverse events related
• Companies focus on becoming a partner and to their drugs.
therefore develop solutions “around the pill”
Revenue: Patented drugs (approximately 10 Revenue drivers: improve clinical outcomes in Attractive industry in terms of salary. Very specific
Drivers years) are usually premium priced. order to avoid patient complications and adverse industry, most companies look for people with a
Cost drivers: developing a succesful drug can events, which are costly for the payers. robust experience behind. However, every time
exceed sometimes USD 2.6 bn. The total R&D Cost drivers: Payers and governents usually more companies are promoting Leadership
cost in the US in 2014 was around USD 53 bn. adopt cost containment policies which aim to Development Programs aiming to attract new eyes
Time: it takes 10 to 15 years to take a drug into derease drug prices or to go for generic or the to the industry.
the market. least innovative alternatives first.

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 3 INDUSTRY OVERVIEW: (8/9)
Private Equity

• Composed of funds and investors that directly invest in private companies, funds of funds or engage in buyouts of public companies, resulting in
Overview the delisting of public entities.
• Finances companies in all stages of development, from seed to maturity, from traditional economy to infrastructure and real estate. PEs finance
their investments with a combination of debt and equity, have an average holding period of 5-7 years to ensure improvements in business and
financial health of target companies via restructuring/ turnarounds so that PEs could resell the companies for a profit.
• Leveraged Buyouts (LBOs) – most active segment (approximately 35%); Management Buyouts (MBOs); Distressed Investments; Funds of
Funds; Growth Capital

Trends • Buyouts valuations are at unprecedented high levels and PEs are experiencing lower returns in recent years.
• PE drypowder (uncalled capital) is at record high of $2 trillion in 2018 which raises concerns with some industry experts suggest a crisis, similar to
the one in 2007, is looming.
• Best-positioned firms are adjusting their approach in several ways; win more auctions without overpaying, focus in sectors that are fragmented with
growth opportunities and better quantify the opportunity to maximise cash flows.

• Attractiveness of industry; past and expected growth (Porter’s 5)

Drivers • Target company’s position in market, past and expected financials.
• Value creation opportunity for company to improve margins and to differentiate itself from competitors?
• Optimal transaction structure, valuation, exit strategy and expected return to make this investment worthwhile?
• Opportunity cost of investment (is there a better investment where money should be spent?)
• Risks of investment e.g Antitrust issues as seen in recent failures including Alstom-Siemens, Deutsche Bank-Commerzbank

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 3 INDUSTRY OVERVIEW: (9/9)
Technology

Software Services Hardware

Product and services – Analyse, develop, test, Applications (AO) – Managing clients’ software Storage – Servers to store company data;
Overview market and sell software solutions for in-house for them. Includes Software Implementation, increasingly cloud storage, accessible online
tech needs or as standalone products with wide putting ERP onto clients’ systems or the cloud and managed by the provider (note: cloud may
industry usage [see Services: AO] Business Process Outsourcing (BPO) – Taking be private, public or hybrid). Players: Amazon,
Software – Work done for clients that are not the over non-core processes like HR, Finance etc Microsoft, Google, IBM
intellectual property of the vendor. Infrastructure (IO) – Taking over clients’ Mainframes – Massively powerful computing
Products – Patented by the vendor and sold in technology needs such as IT support, datacenters systems to power critical applications such as
terms of licenses to the users. ERP or large transaction requirements. Players:
Competitive landscape – IBM, CA Technologies
Competitive landscape – End to End players: IBM, TCS, Infosys, HP etc Personal Computing – Supplying desktops and
Product firms: SAP, Oracle, Hewlett-Packard,etc Consulting/SI players: Accenture, CapGemini laptops for personal or professional use.
Software Development: Azure, Salesforce, etc Infra/Cloud players: AWS, Microsoft, Oracle Players: Lenovo, HP, Dell, Apple, Acer, Asus

Artificial Intelligence - Providing machines AO – “Platforms” to automate implementation Cloud platforms now being embedded with
Trends the ability to simulate, learn and enact human and management of applications AI to improve service, security, efficiency
intelligence. BPO – Now redefining processes instead of just Cyber security and privacy are top priorities,
Machine Learning - Powerful machine overtaking them. Robotic Process Automation particularly in EU following GDPR in 2018
learning algorithms allows tremendous now able to automate repeatable processes Software-designed storage (SDS), or
savings in cost and high business growth. IO – AI to “blueprint” client systems, build storage with software between the storage
Microservices Architecture - The break up models of them, and analyze how/when outages unit and application held on it, is growing
of monolithic applications into smaller, may occur to fix flaws automatically rapidly
independently manageable components that
can be deployed independently

Revenue drivers: Revenue drivers: Revenue drivers:

Drivers Clients: enterprises of all sizes across industries Clients: large enterprises, developed mkts Clients: enterprises of all sizes
Channels: Short-term/long-term contracts, Channels: Direct B2B selling, long sales process Channels: Partnerships with software/svcs
purchases, Subscription models Commercial model: 1-10yr renewable contracts providers who bring clients to storage providers
Cost drivers: Cost drivers: Cost drivers:
Process automation, development and R&D, project managers, large outsourcing Data protection, security, storage, R&D, CapEx
maintenance costs, technologists centers in low-cost countries

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`4
TRAINER

Image:
MBA Study
Rooms 30
 4 TRAINER: CASE PREPARATION
Case trainers should dedicate ~1hr/case for preparation

How to prepare a case as a trainer?

Trainer’s preparation checklist
❑ Choose the right case – one with strong logic, a unique
problem and a topic that interests you

❑ Read case thoroughly

Dedicate at least ~1hr
❑ Identify any possible flaws or errors in the case to prepare the case to
ensure great session
❑ Get comfortable with case flow with trainee

❑ Learn main questions and areas to assess

❑ Know where to find main figures and stats of the case

❑ Try to answer the case yourself, predict difficulties or questions

likely to arise

❑ Ideally, provide printouts of exhibits to simulate a real interview

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 4 TRAINER: CASE FACILITATION
A trainer has the flexibility to calibrate case difficulty

Advice: As a trainer you have

the flexibility to adapt the flow
of the case session

How to facilitate case How to calibrate case difficulty

▪ Arrive before meeting time to prepare case and feedback ▪ Ask candidate ‘why do you think this data would be
sheet useful’ when he/she asks for data

▪ Explain meeting format to trainee before starting ▪ Ask trainee to explain her/his rationale when
making an assumption
▪ Start with at least one fit question to best simulate a real
interview experience. ▪ Decide whether to provide data or wait for candidate
to request it
▪ Give case prompt
▪ Request more ideas on how to solve problem
▪ Cover major parts of case based on suggested case flow (creativity questions)

▪ Actively listen to candidate answers and make it

interactive
Note: we recommend not telling your candidate before
hand what type of case will be covered (ex. Profit, M&A).
▪ Challenge the candidate as per their level
However it may be helpful to provide a case that is more
▪ Take detailed notes on both analysis and communication to in the style of a firm the candidate is about to interview
provide valuable feedback on performance with (ex. A shorter 20-25min case for Bain, an industry-
specific case for an industry-specific boutique)
▪ Keep track of time – a case should last between 20-45 min.
followed by 10-15 min. feedback

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 4 TRAINER: STRUCTURED FEEDBACK (1/2)
Structured feedback is key to learning and performance enhancement of trainees

To embrace ✔ To avoid 🗶
How to provide feedback as a trainer What not to do when providing feedback
✔ Ask the candidate how he/she thought the case went 🗶 Let a case end without providing feedback
before providing your feedback
🗶 Speak over the trainee
✔ Dedicate at least 10 min. to feedback
🗶 Focus solely on the case book answers rather than
✔ Make it a discussion with the trainee transferable skills

✔ Highlight areas where the candidate did well 🗶 Lecture the trainee or assume your way is the
only way to solve the case
✔ Provide feedback on areas that present room
for improvement 🗶 Be too nice, trying to please trainee by
providing only positive feedback
✔ Focus discussion and feedback on skills that can
apply in other cases, rather than those specific to 🗶 Be ambiguous about overall performance
this case (i.e. transferable skills)
🗶 Forget to give feedback to all trainees (group
✔ Suggest ways for the trainee to practice and sessions)
improve skills

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 4 TRAINER: STRUCTURED FEEDBACK (2/2)
An evaluation template can help trainers offer structured feedback

Evaluation Criteria Score

Area Did the candidate… 1 (worst) to 10 (best)
Structure ▪ Tailor structure to the client’s question?
▪ Has at least 2 sublayers in structure? Advice: This evaluation grid is not
▪ Develop a structure in 30-45 sec.? meant to be exhaustive; be flexible
▪ Frame structure as questions? and offer tailored feedback based
▪ Develop a MECE structure?
▪ Executive summarize structure before deep diving?
on the case
▪ Present structure in ~2 min.?

Maths ▪ Walk the trainer through calculations’ rationale?

▪ Do calculations properly?
▪ Ask before rounding figures?
▪ Do calculations fast enough?
▪ Stay engaging?
▪ Sanity check results?

Market Sizing ▪ Present approach before asking for figures?

▪ Identify all key factors to size the market?
▪ Present ‘reasonable’ assumptions?

Creativity ▪ Show creative judgement?

▪ Embrace client’s point of view?
▪ Develop solutions in a structured way?

Soft Skills ▪ Present enthusiasm to solve business problem?

▪ Show empathy?
▪ ‘Carry the monkey’ throughout the case?
▪ Show assertiveness, yet no over-confidence?

Conclusion ▪ Use a pyramid structure?

▪ Present his/her recommendation in less than a minute?
Note: Cases will also not present
▪ Executive summarize recommendation?
▪ Present future work and potential risks? all evaluation criteria. Trainer’s
▪ Show some ‘selling’ skills? judgement is advised

Comments
Average
Score:
(out of 10)

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`5
TRAINEE

Image:
HEC Paris
Lake 35
 5 TRAINEE: SOFT VS. HARD SKILLS
Both soft and hard skills are being assessed during case interviews

What interviewers might be …and what candidates can do to shine during

reflecting upon… interviews (not exhaustive)

▪ Has the candidate the right profile for the job? ⮚ Listen

▪ Would she/he embarrass me in front a client? ⮚ Engage with interviewer

▪ How well can the candidate handle pressure? ⮚ Focus on end goal, not on mechanisms of cases
⮚ Be genuinely interest in the client’s problem
▪ How clear the candidate can communicate?
⮚ Show empathy
▪ Is the candidate ‘carrying the monkey’ and assuming
ownership of the problem? ⮚ Own the problem; don’t try to it pass it on to the
Soft Skills interviewer
▪ Is the candidate genuinely interested in the problem?
⮚ Don’t ‘disappear’; make it conversational
▪ Is the candidate listening?
▪ How would the candidate face an executive?
▪ Would I spend 6hrs in an airport with this
person?

▪ How structured is the candidate? ⮚ Use a Mutually Exclusive, Collectively Exhaustive (MECE)
structure to solve business question. Structure brainstorming.
▪ Can the candidate find ‘so whats’ (i.e., an insight
relevant to the case) when presented a chart? ⮚ State insights/‘so whats’ when receiving data

▪ How comfortable is the candidate dealing with ⮚ Benchmark data to identify insights
numbers? ⮚ Be comfortable with basic math problems (no calculator
Hard Skills ▪ Can she/he show good business acumen? allowed)
▪ How does the candidate react to new ⮚ Lose preconceived assumptions; validate
information? assumptions with interviewers
▪ How creative and structured is the candidate when ⮚ Present structure, yet creative thinking
problem solving?

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 5
3 TRAINEE: CASE PREPARATION
Practice is key for successful interviews Advice: Use [Link],
[Link] and other online
resources to hone your skills

To embrace ✔ To avoid 🗶
How to prepare for consulting interviews
What to avoid in case preparation
✔ Case! Just do it. Start early and practice regularly.
🗶 Spending too much time in passive training
✔ Practice case drills to gain confidence and skill
🗶 Not allocating enough time to fit questions and practice
✔ Prepare & rehearse answers to fit questions – key for
successful interviews in consulting¹ 🗶 Casing only with the same people, the same MBA program
or the same firm
✔ Train in environments close to a real interview setting
🗶 Attending only group case sessions, and failing to quickly
✔ Train with consultants and former consultants shift to 1:1 cases

✔ Do cases with multiple partners from multiple backgrounds to 🗶 Using buzzwords (e.g., frameworks, clarifying questions, “this is
learn different interviewing styles a market sizing question”)

✔ Develop pre-performance routine for a clear mind (e.g., 🗶 Getting attached to canned frameworks (e.g., 4Ps,
taking a deep breathe, repeating a cue words, rehearsing a Porter’s 5 forces, 3Cs, etc.)
sequence of movement²) to reduce stress
🗶 Focusing too much on case solutions instead of developing
✔ Read FT, The Economist and other business publications to case skills
develop basic business knowledge
🗶 Being too rigid and not tailoring approach to interviewer
✔ Ask yourself business questions about the world around you
(e.g., I wonder how this coffee shop makes money?)

¹[Link] Note: Access case partners from across HEC and other programs through the
Spring 2019 HEC MBA Consulting Club – All Rights Reserved 1:1 Case Platform found on the Consulting Club Drive 37
 5 TRAINEE: STRUCTURED LEARNING
Creating a case practice log will help you identify and address areas for improvement

Receive Reflect Do drills on Improve

Getting better at Log
Do a case structured upon areas for & do new
Case Interviews Feedback
feedback feedback improvement cases

A suggested template to log and track your progress

Case Practice log

Tracking Your Progress
Feedback
Performance What did I Do What Do I Have To Improve For
# Date Case Case type Source Trainer (out of 10) Great? Next Cases?
1 October 4th SunFurry Market Entry / Haas John 8 - Used a MECE - Make sure I understand the
2018 Value Sizing Casebook Smith structure prompt before structuring my
- Shown interest thoughts on how to tackle the
for solving case
business - Engage with the trainer while
problem performing math calculations
2
3
4
5
…

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`6
NETWORKING

Image:
HEC Paris
Chateau 39
 6 NETWORKING: PREPARATION
Networking interviews are an essential steps towards breaking into consulting

• Use LinkedIn to assess your own network, identify valuable connections and note gaps
Finding the Right • Identify alumni or key industry contacts whom an HEC student/alum could connect you to
• Leverage the HEC alumni network by getting involved in clubs and events related to consulting
People • Meet consultants by attending career fairs, treks and company organized events
• Keep a detailed list of contacts, where you met them, when you last spoke and any memorable information

• Clearly indicate to your contact where you met the person or where you got their contact information
• Keep written communications short and to the point. Consider ~1 week before following up on non-responses
• Avoid using jargon or passive language in written communication. Pay attention to avoid written mistakes, such
Getting in Touch as misspelling the contact’s name or retaining information from a separate form note
• Connect first for information, particularly to new contacts. Be patient before asking for any favors.
• Take notes of any initial conversations which could be useful for future discussions
• Be bold, yet professional. You never know who will respond.

• Conduct proper background research on the company and the person with whom you will be speaking
• Prepare a list of questions to ask beforehand
• Be prepared to explain in one sentence what you plan to cover on the call. It is likely you will be asked.
Preparing • Consider how the unique experience of this person can be informative to you, rather than the fact they work at
XYZ firm or in ABC industry.
• Consider how you plan to maintain a professional relationship following the discussion

• Be punctual during the interview and follow the time frame agreed in advance
• Dress appropriately if it is face to face or skype interview
• Speak clearly and articulately, from a location that is quiet and with strong reception (if on the phone)
Connecting • Take notes and listen. The key here is to learn new information rather than showcase yourself
• Keep the questions structured and organized. Don’t jump all over the place
• Indicate how/why you would like to maintain a professional relationship following the discussion
• Send a thank you note within 24 hours. Keep it short and to the point.

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 6 NETWORKING: PREPARATION
Gathering information by asking the right questions is a core skill for a consultant

• What are some types of projects you have been on while at this firm?
• Why did you decide to choose this firm/industry/geography?
• What have you liked about the job and what has been difficult for you?
• What skills have you needed to learn on your job?
• What do employees look for in a newly joining team member?
• How accessible are different opportunities to grow personally and professionally at the firm?
Useful Questions • How does the recruitment and the interview process differ from other firms you interviewed with?
• How would you describe the culture at your firm and in your specific office?
• Which firms are your competition in the local market and is there specific preferences that clients have?
• How does your firm maintain strong bond with clients over long time?
• How do you stay current in rapidly changing environment?
• How has AI and digital transformation affected client demands?
• What is the biggest challenge facing the firm today? What do you think about the way the firm is addressing this
challenge?

• How is the work-life balance in consulting? Very common question, however it is not a secret that consulting job
(especially at the beginning) require long hours and travel
Questions to • What is the typical compensation/benefits structure? This may give an impression that you are more self-interested
than interested in the job. Consider Vault, Glassdoor or Management Consulted for compensation information.
Avoid* • How many people work at your firm? What locations does your firm operate in? Super simple questions that can easily
be answered by visiting a company website.
• Asking for a referral at the start of the conversation, without building a rapport, or by providing inaccurate information

*Naturally, consider your audience. If you are able to speak with a close peer in consulting, you may be able to
ask far more intimate questions
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`7
PRACTICE

Image:
MBA
Lounge 42
 7 PRACTICE: FIT (1/3)
Reflect upon, prepare and rehearse fit questions

KEY IN CONSULTING
Category # Question INTERVIEWS

(A) General 1 Tell me about yourself / Discuss your resume

2 What are your strengths?

3 What are your weaknesses? What are three things you former manager would like you to improve upon?

4 Where do you see yourself in five years? Ten years?

5 Why are you interested in working for us?

6 4 words to describe yourself

7 What are you salary requirements? Advice: Come up with 4-5

(B) Consulting 8 Why do you want to work in consulting? good, detailed stories
about your professional
9 Tell me about a time you had to convince someone successes and learning
10 Provide an example of a time that you shown leadership skills? experiences. Pieces of these
11 What would you like the most and least about working in the consulting industry?
stories may be applicable
across hundreds of fit
12 Tell me more about the kind of consulting you would like to do (e.g., Strategy, Ops, etc.) questions!
13 Tell me about a personal challenge you overcame

14 Tell me about the accomplishment you are most proud of

15 Who are our competitors? How are we different?

16 Why would you be a good strategist?

17 What are some of your leadership experiences?

18 Provide example of work that you done in strategy consulting (or close to)

(C) Preferences 19 Are you willing to travel?

20 What's your availability?

21 Would you work holidays/weekends?

22 Would you work 60+ hours a week?

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 7 PRACTICE: FIT (2/3) Advice: Practice answering fit
questions in less than 2 minutes
Reflect upon, prepare and rehearse fit questions and before every case for greater
impact!
KEY IN CONSULTING
Category # Question INTERVIEWS

(D) Situations 23 Describe a time when you had to analyze data to create a solution to a problem
Give me an example of a time when you had to build a relationship with someone. How was the person related to your goals
24
and expected outcomes? What did you do to initiate the relationship building?
25 Tell me an example of where you have used analysis to deliver project improvements

26 Tell me how you handled a difficult situation

Tell me about a time when you received a piece of developmental feedback. How did you react and what did you do with this
27
feedback?
28 How would you deal with an angry client?

29 Give me an example of a situation when you had to cope with great pressure or deliver something on a very tight deadline

30 Tell me about a time when you have been faced with dishonest behaviour? What was the situation and what did you do?

31 Describe a time where you had to confront a difficult interpersonal situation at work. How did you handle it?

32 Tell me about a time when your communication skills made a difference to a situation

33 Give me a time when you went above and beyond the requirements for a project

34 Can you give me an example of where you collaborated across teams on a project?

35 Describe a time where you had to depend on others to complete a task

36 Tell me about a time when you worked with a difficult team member. What was the situation and how did you handle it?

37 Give a specific example of when you had to handle priorities. How did you meet all of you responsibilities?

38 Tell me about a time you delivered exceptional customer service

39 Give me an example of where you delivered a change that improved the client experience?

(E) Last job 40 Why did you leave your past job?
41 Why was there a gap in you employment between 2015 and 2016?

42 If I called your boss right now and asked him what you could improve on?
43 Explain clearly role at your last job

44 Why are you looking for a new job?

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 7 PRACTICE: FIT (3/3)
Reflect upon, prepare and rehearse fit questions

Category # Question A note on what MBB are looking for…

(F) Personal 45 What motivates you?

46 Why should we hire you?

47 What is you dream job?

48 What is your biggest failure? Leadership Motivation Motivation

49 What makes you uncomfortable? How you have led teams to To work at BCG, location, in To work at Bain, location, in
overcome difficult situations. strategy consulting strategy consulting
50 What are your co-worker pet peeves? Your perspective on
51 What are your hobbies? leadership. Knowledge Consultant Skills
Understanding of the Do you have natural
52 What is your favorite website? Personal Impact consulting market tendencies to think like a
53 What are your career goals? Ability to influence others and consultant?
drive value. How can you Personality
54 What gets you up in the morning? convince people with whom Thoughtful and driven Drive & Achievement
55 What was the last book you read for fun? you disagree with? personality Demonstrated success and a
goal-oriented attitude
56 What questions to you have for me? Entrepreneurial Drive Teamwork
57 Why do you want to work in this office? Self starter and natural ten Able to work in teams, be Passions & Interests
dency towards taking collaborative What makes you human?
initiative. Able to set and What do you care about
achieve goals. Openness outside of work and school?
To feedback, new experiences

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 7 PRACTICE: DRILLS – OPENING (1/4)
Create structures which show how to approach these business situations.
Advice: Upon reading each opening, try to note down a
few clarifying questions and then create 2-3 structures
Opening Drills
To prompt to trainee you could use to address each opening

1. You are mandated by the Saudi government. They would like to diversify their economy
by moving away from the oil industry and be fully diversified by 2030. How should they
approach this issue? Trainer’s corner
2. Apple has hired your team to define a strategy going forward with the iPad. Sales are
plummeting and Apple’s market share is shrinking. Should they continue developing hardware Did the candidate…
updates for the iPad?

3. The French government wants to foster entrepreneurship among its population. What are ❑ Tailor structure to the
the options it can explore and how to choose among them?
client’s question?
4. A large newspaper, the LA Times, has hired you to clarify how AI could threaten its
business model and if it should embrace the technology to help journalists in article writing. ❑ Has at least 2 sublayers in structure?
How would you approach this issue?

5. The family owners of housing rental business in North Carolina are worried about the ❑ Develop a structure in 30-45 sec.?
increasing number of hurricanes in the region. Facing this threat, should they close business
and move it elsewhere? ❑ Frame structure as questions?
6. FIFA is wondering how to approach the future of World Cups to ensure these events be
❑ Develop a MECE structure?
profitable ventures for hosting countries. How would you study this issue?

7. Your client is a large distribution company that would like to know if they should invest in ❑ Executive summarize
manufacturing capability to reduce time to market. What should be analyzed in order to take structure before deep diving?
this decision?

8. Airbnb is facing higher and higher regulations in most of their market and would like to ❑ Present structure in ~2 min.?
understand why this is happening and how to tackle this issue best?

9. The partners of a major consultancy wonder if they should raise the partnership buy-in.
What should they consider if order to take a decision?

10. Should Nike acquire Adidas?

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 7 PRACTICE: DRILLS – OPENING (2/4)
Create structures which show how to approach these business situations.
Advice: Don’t focus on answering
Opening Drills the question. Rather, define how to
To prompt to trainee approach the situation best.

11. Perrier, a mineral water producer, is witnessing new competition from smaller players on
its market. It is now wondering if it should acquire its largest competitor to consolidate its
position in the industry. Should they do it? Trainer’s corner
12. A major publishing house is contemplating crowdsourcing text reviews (instead of
performing the activity in-house). How would you analyze this issue? Did the candidate…

13. A business school is the US is wondering how it could attract more international students ❑ Tailor structure to the
to its MBA program. How should the board of directors approach this business situation?
client’s question?
14. Patagonia, a outdoors clothing manufacturer, is thinking about going public (IPO) to ❑ Has at least 2 sublayers in structure?
raise fund for a new sustainable initiative. How would you address this question?
❑ Develop a structure in 30-45 sec.?
15. TO, a large PE firm, is pondering how to best select its next investment. Its partners
have hired you to help them solve the issue. ❑ Frame structure as questions?
16. Hawaii, a US state consisting of 8 islands in the Pacific ocean, is considering ❑ Develop a MECE structure?
privatizing its beaches and would like to know if they should do it.

❑ Executive summarize
17. A large manufacturer of pools is seeing its sales declined. Its management would like
to pump-up the sales team. What would you analyze in order to solve the issue? structure before deep diving?

18. Your client is a bar operator in the beautiful city of Paris and is wondering if they should ❑ Present structure in ~2 min.?
open a new spot in the small city of Jouy-en-Josas. How should they address this question?

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 7 PRACTICE: DRILLS – OPENING (3/4)
How would you approach these business situations? Advice: There are multiple ways to
solve any problem. See how many
unique structures you can craft
Opening Drills instead of relying on frameworks
To prompt to trainee

19. Your client is a traditional company in [XYZ] industry. They want to go digital. Which are
your suggestions?
Trainer’s corner
20. Your friend's company is about to enter into Chapter 11, what is your advice to him?

21. Do we list on Amazon? Or do we create or enhance our own e-commerce channel?

Did the candidate…

22. An industrial company has diversified into the growing market for mobile robotics in ❑ Tailor structure to the
industries. They would like to understand which industries to target and how to deploy a client’s question?
successful go-to-market strategy

23. A National Oil Co. spends billions on its material and machinery sourcing every year ❑ Has at least 2 sublayers in structure?
from a global supply chain. They approach you to advise them on how best to optimize
this expenditure. ❑ Develop a structure in 30-45 sec.?
24. A Japanese Industrial sensors company, known for its high quality products, seeks to
❑ Frame structure as questions?
enter the highly price-sensitive Indian market and achieve rapid growth within a short time
(perhaps inorganically). They approach you for advice on how best to go about it.
❑ Develop a MECE structure?
25. A leading manufacturer of pumps seeks to enter a neighboring country by setting up a
local manufacturing facility. How would you help them evaluate the viability of this move? ❑ Executive summarize
structure before deep diving?
26. Adidas, the global athletic apparel company, is considering to acquire Strava, a
popular fitness app which uses GPS and social networking to offer users a way to track
and share their workouts on their smartphones. Should it move forward with the
❑ Present structure in ~2 min.?
acquisition?

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 7 PRACTICE: DRILLS – OPENING (4/4)
How would you approach these business situations?
Advice: Don’t focus on answering the
question. Rather, define how to
Opening Drills
To prompt to trainee

27. You have decided to quit your high paying consulting job and open your own business.
You're now meeting with two partners at a fund investing in start ups and have to convince them
to fund your company. How do you go about preparing your pitch? Trainer’s corner
28. After seeing the success of brands like Keurig and Nespresso, Starbucks is considering
offering coffee pods and a proprietary Starbucks brewing system for home use. How should it Did the candidate…
decide whether or not to do so?

29. Your client offers on-call residential cleaner services throughout the New York Metropolitan ❑ Tailor structure to the
area and has decided to enter into Paris, France. Customers set up appointments at least 24- client’s question?
hours in advance for a set amount of time, and the client dispatches a professional cleaner to
their home to address whatever needs are specified by the customer. The client has asked you
to understand how many cleaners should be hired to commence operations in Paris.
❑ Has at least 2 sublayers in structure?

30. Loo-to-You is a recent impact-focused start up with the goal of providing low cost sanitary ❑ Develop a structure in 30-45 sec.?
toilets and weekly cleaning/maintenance services throughout rural India. The company is
expected to provide an in-depth report on its profit and social impact to its investors in 1 year ❑ Frame structure as questions?
from today and needs to impress to receive further funding. How should it prioritize its activities
going forward?
❑ Develop a MECE structure?
31. A worldwide producer and retailer of desktops and laptops is considering purchasing its
largest supplier of polarized glass, used to make LCD screens available in each of its computer ❑ Executive summarize
products. Should it move forward with the acquisition? structure before deep diving?
32. HECiné is a mid-sized movie theater located in the beautiful locale of Jouy-Sur-Seine near
Paris, France. In 2018 it posted a net income of 22M euros, down from last year (25M euros in ❑ Present structure in ~2 min.?
2017). Yet, the theater's market share within the Paris Metro area increased by 5%. Please help
us understand what is likely happening and consider options to return profit to growth.

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 7 PRACTICE: DRILLS – MARKET SIZING
Can you define an approach to find a ‘good enough’ estimate of the market?
Advice: Don’t focus on answering the
question. Rather, focus on approach
Market Sizing Drills to defining a ‘good enough’ estimate
To prompt to trainee

Try to define an approach to reach ‘good enough’ estimates of these

markets Trainer’s corner
1. Total value of the chewing gum market in the US

2. Number of smartphones sold in Europe last year Did the candidate…

3. Demand for commercial flights from Singapore to Delhi per year ❑ Present approach before asking
for figures?
4. Number of commercial printers sold in the US last year

5. Total yearly revenue of management consulting services in Europe ❑ Identify all key factors to size
the market?
6. Number of PlayStation gaming consoles sold in Europe last year
❑ Present ‘reasonable’
7. Number of Bloomberg terminals sold in London last year
assumptions?
8. Total demand in terms of revenues for Paris-Rome flights

9. Number of credit card transactions made in Thailand last year

10. Total market value of dog grooming industry in the US

Note: ‘Pure’ sizing like these don’t
11. How much does a ski lift weigh?
assess business judgment and so
should be practiced sparingly.
12. How many ghosts are there in Paris?
However, consider what clarifying
questions must be asked to address
13. How many steps are taken in the Marathon?
these questions.

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 7 PRACTICE: DRILLS – MATHS
How efficiently can you solve math questions?

Lesson 1: NO zeros Lesson 2: STILL no zeros

One of the most common mistakes is to gain or drop zeros when calculating big Another method for multiplying large numbers without getting lost in a sea of
numbers, like calculating revenue if you have 12,000,000 products sold at $5,000 zeros is to rely on the “Base 10” method. Rather than writing letters, you can
each. One Bain consultant says "if I see you writing and counting zeros, I know represent the number 1,000 as 1x10^3, where the power to which you raise 10 is
you're 1) wasting time and 2) going to mess up." equivalent to the number of zeros originally found in the figure.

Instead, remember these simple rules: Similarly:

K*K=M 500 = 5x102
K*M=B 200,000 = 2x105
M*M=T 9 billion = 9x109
K*B=T
It is therefore helpful to remember the following squares when using Base 10:
1,000 should be written as 1K Thousands = 3
1,000,000 should be written as 1M Hundred thousands = 5
1,000,000,000 should be written as 1B Millions = 6
Billions = 9
Therefore, 12,000,000 products sold at 5,000/each is really...
• 12M * 5K When multiplying two figures in Base 10, simply multiply the base numbers and
• 12*5 = 60 add the squares. For example 4,000 * 12,000,000 can be calculated as:
• M*K = B
• Answer: 60B (4x103) * (12x106) = 48x10(3+6) = 48x109
9 = billion, so the answer is 48 billion.

You try: You try:

150,000 * 10,000 = (5x103) * (3x103) =

20M * 20K = 3M * 11K

5M * 4M = 14K * 200

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 7 PRACTICE: DRILLS – MATHS
How efficiently can you solve math questions?

Lesson 3: Multiplying Lesson 4: Dividing

Two key items to cover on multiplication: …and two key items to cover on multiplication:
1. Know your multiplication tables (at least up to 12) 1. Consider memorizing some common, single digit fractions (ex. 1/6 = .17, 1/9 =
2. Break up every problem into pieces .11)
2. Find your range and break up every problem into pieces
We’ll assume you can cover Step 1 on your own. For Step 2, break down
problems into their component parts. For example: Again we’ll leave you to Step 1. For Step 2, what we mean by “find your range” is
this:
56 * 9
becomes… The problem 219 / 8 is asking us “what number, multiplied by 8, equals 119?” To
50 * 9 + 6 * 9 set our range, we can start by recognizing that since 8 * 10 = 80 and 8 * 100 =
which equals… 800, the correct answer is between 10 and 100.
450 + 54 = 504
Then we can narrow our range knowing that 8 * 20 is 160 (too small) and 8 * 30 is
360 * 12 = 360 * 10 + 360 * 2 = 3,600 + 720 = 4,320 240 (too large). Therefore the answer is between 20 and 30.

The longer the problem, the more pieces to break it into. The only real mental If we take 8 * 20 = 160 and subtract this from 219, we get 59. Therefore our
strain becomes remembering each of the pieces, the math is never harder than answer is simply 20 + (59 / 8).
your multiplication tables. For example:
Since 8 * 7 = 56, we can safely say the answer is 20 + 7 + the remainder 3/8. In
117 * 12 = [ 100*12 + 10*12 + 7 * 12 ] = [ 1,200 + 120 + 84 ] = 1,404 this case, rounding to 27 is a safe bet.

You try: You try:

88 * 3 87 / 3
46 * 14 320 / 30
281 * 64 590 / 11
410 * 20 4,380 / 19

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 7 PRACTICE: DRILLS – MATHS
How efficiently can you solve math questions?

Lesson 5: Taking percentages of large numbers Lesson 6: Taking percentages of small numbers

Similarly, you'll often need to find an absolute number using a %. Here, the easy Two basic tricks here:
percentages are your friends: 1%, 10%, 25% etc
First, remember that X% of Y will always be the same as Y% of X. Therefore,
Use 10% to find answers which are divisible by 5. For example: 10% of 50 is the same as 50% of 10.
• 5% of 2M: 5% is really 10% divided by two. So, 5% of 2M is .2M/2 = .1M = 100K
• 20% of 15M: 20% is really 10% multiplied by two. So, 20% of 15M is 1.5M * 2 = 3M Second, if you can easily divide the base number into 100, simply divide the
% by the number of times the base goes into 100. For example:
Use 1% for any numbers in between. For example, • 30% of 50: 50 goes into 100 2 times, and 30/2 = 15. Therefore, 30% of 50
• 2% of 500: 2% is 1% * 2. So, 2% of 500 is 5 * 2 = 10 is 15.
• 26% of 900M: 26% is 25% + 1%. So 26% of 900M is 900 / 4 = 225, plus 9 = 234M
• 52% of 40K: 52% is 50% plus 2*1%. So 52% of 40,000 is 20,000 + 2*(1% * 40,000)
This is even easier for numbers >100, simply multiplying the % by the
= 20,000 + 2*400 = 20,000 + 800 = 20,800
amount that your base is larger than 100. For example,
• 24% of 250: 250 is 2.5x of 100. Therefore, 24% of 250 is 24*2.5 = 48 + 12
Usually, you'll have to rely on both. For example,
= 60
• 11% is 10% + 1%. So, 11% of 300M is 30M + 3M = 33M
• 6% is (10% / 2) + 1%. So, 6% of 20K is 2K / 2 = 1K + 1%*20K = 1K + .2K = 1.2K =
Try out the two methods discussed above for numbers <100, and then try it
1,200
with numbers >100:

You try: You try:

Sales Profit Margin Profit 36% of 25 (method 1)

4,900,000,000 5% 36% of 25 (method 2)
2.7B 10% 15% of 200
6.1B 6% 30% of 500
3.3B 11% 10% of 250
3B 4%
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 7 PRACTICE: DRILLS – MATHS
How efficiently can you solve math questions?

A Note on Mental Math:

Mental math may be the most intimidating and frustrating parts of your case training. In reality, interviewers
are not testing your math skills as much as your ability to think analytically when put on the spot. You
already have the skills to succeed. Just practice to gain the confidence needed to succeed at any moment.
Advice: Change figures to adjust
difficulty of math drills
Math Drills
To prompt to trainee

1. If $2M of revenue represents 30% market share, what is the total

market value?
Trainer’s corner
2. Our marginal cost is $30 and we are earning a revenue of $70 per Did the candidate…
product sold. If our fixed cost is $700 000, how many units do we
have to sell in order to break even? ❑ Walk the trainer through
calculations’ rationale?
3. Today, our market share is 85%. If it decreases by 15% next
year, what will be our new share of the total market? ❑ Do calculations properly?
4. I earn a total revenue of $7 600 by selling 13 units. What’s my ❑ Ask before rounding figures?
revenue per unit?
❑ Do calculations fast enough?
5. I sell 15 units at a price of $14.78/unit. What’s my total revenue?
❑ Stay engaging?
6. My total profits is $876B and will be divided by 20 000 next
year. What’s my expected revenue for next year? ❑ Sanity check results?

7. If my car has a tank capacity of 40 liters and offers a performance

of 65km/liter, how many kilometers can I expect to do with a full
tank?

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`8
CASES

Image:
HEC Paris
Lake 55
 4 PRACTICE: CASES
Case difficulty
Case solutions are indicative; flexibility & creativity are advised Found on 1st page of cases

EASY
MEDIUM
HARD

Before starting…

▪ A case is first and foremost a situation

where you’re being asked to help someone
with a business problem
▪ Your enthusiasm and creativity are
welcomed as business solutions can be
solved by embracing multiple solutions
▪ Therefore, case solutions found in this
case book are presented as indicative
▪ Data is fictional and should not be
considered as representative of reality

Happy
training!

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 4 PRACTICE: CASE 1 (1/6)
Trainer’s guide
Downstream Oil TO PROMPT
TO PROVIDE IF REQUESTED
SUGGESTED SOLUTIONS

Your client is in the business of oil distribution. The company, MQ, operates in multiple locations across the
United States, from Vermont to Hawaii. MQ has been profitable for many decades which allowed it to offer
generous employee compensation and benefits. However, tide is now shifting: the company has seen its revenue
Opening stumble for the first time last year, a situation that its managers have never experienced before. Hence, the Sales
statement SVP has reached out to you and your team to address the issue. The client is preparing her next steering
committee where the situation will be discussed and would like your help to tackle two questions: Why revenues
from their core business are decreasing? How can they improve the situation?

▪ MQ’s core business: Gas stations ▪ Only operates gas stations (i.e., value chain not integrated)
▪ 1500 locations ▪ Located across the US but mainly in cities and metropolitan
Further ▪ Products: gas, car wash, snacks and areas
soft drinks (i.e., through convenience ▪ Typical gas station: gas pumps and convenience stores
information store attached to gas stations) ▪ No specific target regarding revenue increase
▪ Sells directly to consumer ▪ Employees are all permanent (i.e., no contractors)

Why MQ’s This is an open question case: candidate

revenues are should think of factors that drive ‘revenues’
decreasing?

What changed in What changed in the How has competition

revenue streams of way customers use changed in gas
gas stations? gas stations? distribution industry?

Transpor-
Suggested Revenues from
Car wash?
Convenience Consumer Disposable
tation Price change? Offer change?
gas pumps? store? taste? income?
habits?
structure
# of
$/liter? liters
sold?

Candidate could also explore if the

number of gas stations has changed – not
the case here
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 4 PRACTICE: CASE 1 (2/6)
Trainer’s guide
Downstream Oil TO PROMPT
TO PROVIDE IF REQUESTED
SUGGESTED SOLUTIONS

The client agrees with your structured approach on how to tackle the issue, but would like a better idea on how big is the
Market sizing current market for gas stations in the US, excluding revenues from snacks, drinks and car wash. How would you help
question her address this question?

▪ US population: 330M ▪ Efficiency

▪ Average household: 3 people ▪ Compact: 1 000km/tank
▪ Average # of cars: 1/household ▪ SUV: 500km/tank
▪ Average tank capacity/car ▪ Type of gas used + Price
▪ Compact: 50 liters ▪ Compact: Octane 87 sold at $0.5/liter
Further ▪ SUV: 100 liters ▪ SUV: Supreme sold at $1/liter Bonus points if
information ▪ For simplicity, no other ▪ No difference in efficiency between cars riding in metropolitan candidate ask
type of cars on market areas and countryside about these
▪ SUVs: 50% of market ▪ Demand from trucks/boats is excluded variables to refine
▪ On average a car does ▪ Our client has a market share of 30% her/his estimates
1000Km/2 weeks

Top-down approach
▪ US pop: 330M
▪ Avg. HH: 3 people
▪ # of HH: 110M
▪ Avg. # of cars/HH: 1 Most important is
▪ # of cars in US: 110M $309B/yr. not the final
answer but
▪ Divided in 2 segments: Compacts (50%) and SUVs (50%) ($34 375M - Compacts
▪ 55M Compacts & 55M SUVs candidate’s
$275 000M - SUV) approach to define
▪ Compacts:
size of market
Suggested ▪ Price/liter: $0.5
approach ▪ Avg. tank small car: 50 liters
▪ Avg. consumption: 1000Km/2 weeks (50 weeks/yr.
is OK)
What’s the total revenue of our
▪ Efficiency: 1000km/tank Bonus client if it has a 30% market
▪ SUV: question share?
▪ Price/liter: $1
▪ Avg. tank: 100 liters
▪ Avg. consumption: 1000Km/2 weeks (50 weeks/yr.
is OK) Answer $92.7B
▪ Efficiency: 500km/tank
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 4 PRACTICE: CASE 1 (3/6)
Trainer’s guide
Downstream Oil TO PROMPT
TO PROVIDE IF REQUESTED
SUGGESTED SOLUTIONS

The size of the market of gas in the US is indeed impressive. Your client knows that gas stations have also
Chart other ways to generate revenues and has just received some historical data and projections on their different
question revenue streams. She provided you with the following chart (present next page’s chart to trainee). Based on
what you see here, what can you conclude?

▪ Car wash revenues peaked in 2016 as a national study ▪ Footnote: other revenue source = electric
showed that good maintenance of car could increase its charging service (provide 2nd chart if
resale value requested)
Further ▪ Convenience store revenues in absolute terms are not ▪ Few players are acting on the electric
information growing - they are quite stable charging market
▪ The retail price of gas is decreasing from 2012 and on. ▪ Gas stations are operating in a highly
However, the demand for gas in volume is stable fragmented and commoditized market

1st chart
▪ Convenience store: largest part of revenues (2/3rds)
▪ Gas: smallest part of revenues. However, this product is acting as a loss leader and is important for the
business (i.e., customers coming for gas but also buying candies, soft drinks, etc.)
Insights from ▪ Footnote: other revenues are not to neglect
chart ▪ Revenues are in relative figures and not in absolute terms; be careful when interpreting
2nd chart
▪ Electric charging is a new revenue stream potential
▪ However, implementing electric charges in current gas stations might require new capabilities

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 4 PRACTICE: CASE 1 (4/6)
Downstream Oil

Gas stations revenue streams

Actual and expected¹, in % - Total stack = 100% Projections

61 60 60 60 63
65 65 68 70
70 75 78 80

10 12 15
8 20
10 13 17
14 13
12
29 28 12 12
27 25
20 22 20 20 18 17 13 10 8

2010 11 12 13 14 15 16 17 18 19 20 21 22

¹Total revenue is expected to grow from other revenue sources not represented

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 4 PRACTICE: CASE 1 (5/6)
Downstream Oil

Gas stations revenue streams – Including other revenue sources

Actual and expected, in % - Total stack = 100% Projections

61 60 60 60 61
65 65 66 68 71
73 70
70

10 12 15
8 20 17
10 13 14 11
12 10
10
29 28 13 7 7
27 25 17 14 7
20 22 20
8 10 11 12
5 6
2010 11 12 13 14 15 16 17 18 19 20 21 22

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 4 PRACTICE: CASE 1 (6/6)
Trainer’s guide
Downstream Oil TO PROMPT
TO PROVIDE IF REQUESTED
SUGGESTED SOLUTIONS

Creativity Additionally, your client has learned from a recent survey that customer satisfaction towards gas
question stations is shrinking rapidly. How would you improve customer satisfaction in this business?

▪ Lower prices
▪ Faster service
Creativity is expected here. In
▪ Reduction of bottlenecks and wait
order to get points here,
lines at gas stations trainee has to provide
Suggested ▪ Full-service: no need to get out of car answers that are creative and
answered ▪ ‘Uber-like’ service for gas embracing customer’s point
▪ At home gas delivery of view
▪ Etc.

The SVP of Sales is meeting with the SteerCo in 3 minutes and would like your brief on what to do
Conclusion to tackle the issue. It light of what you have learnt, what do you recommend?

▪ This case is open ended (no precise answer suggested)

Suggested ▪ Candidate’s recommendation has to be structured and based on Bonus points for
answered creative solutions
factual data provided in the case

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 4 PRACTICE: CASE 2 (1/5)
Trainer’s guide
Consultancy TO PROMPT
TO PROVIDE IF REQUESTED
SUGGESTED SOLUTIONS

Elizabeth & Co, generally known as “Eli & Co”, is a major consultancy operating worldwide. Recently,
the company has been facing increasing competition from players such as Accenture, the Big 4 and
Opening Roland Berger going directly after its core business. In order to preserve its dominant position in the
statement consulting industry, partners of Elizabeth & Co are wondering if they should acquire another firm. More
precisely, the company is contemplating the takeover of PSG Consulting. Therefore, your team has
been called in to address this pressing issue: should Eli & Co acquire PSG consulting?

Eli & Co PSG Consulting

▪ Core business: Strategy consulting (100% of its revenues) ▪ Core business: Implementation of business transformations –
▪ Weighted Average Cost of Capital (WACC): 15% representing 66% of topline
▪ Specialized in non-IT consulting ▪ Growing business
Further ▪ Rely mostly on 2 major clients in the banking sector (90% of ▪ Specialized in non-IT consulting, but has IT capabilities
revenues come from these clients) ▪ 300 employees
information ▪ 1 000 employees ▪ Multiple clients
▪ Culture: Achievement oriented ▪ Culture: focused on client satisfaction
▪ Operating worldwide ▪ Operating in Germany only
▪ Limited partnership ownership structure ▪ Publicly traded company

Closed question case: What key variables

Acquire PSG?
are to consider to take this decision?

What value Eli & Co. Can Eli & co

Does PSG have
would generate with manage the
strategic fit?
acquisition? acquisition risks?

Suggested Expected How strong is What’s the Tangible Intangible assets

Regulatory
profits from target’s target’s industry Branding? Culture? Technology? assets integration (e.g.,
structure acquisition? competition? outlook? integration? employees)?
constraints?

Target’s IRR/
market? ROI Bonus points for identification of
qualitative aspects of acquisition

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4 PRACTICE: CASE 2 (2/5)
Trainer’s guide
Consultancy TO PROMPT
TO PROVIDE IF REQUESTED
SUGGESTED SOLUTIONS

Valuation Interesting, now let’s take a look at PSG’s financial position. Solely based on a financial perspective,
question what would be the value of the company?

▪ B/S ▪ Value of PSG Consulting: $260-280M

▪ Company is highly leveraged ▪ 10% growth rate – can be assumed to growth at this rate for
▪ High accounts receivables (current the foreseeable future
payment terms for clients are extremely ▪ WACC: 15%
generous) ▪ Eli & Co wants to use a ‘football field valuation’ (i.e., defining a
▪ Has a patent pending on a innovative valuation range by combining methods) to value PSG:
transformation implementation approach ▪ (1) Actualized FCF method
▪ P&L ▪ Current FCF: $14M
Suggested ▪ Profitable business ▪ Consider the company will last and grow forever
▪ High cost of services sold - 70% of (perpetuity)
insights revenues (i.e., high salaries of ▪ 14M/(15%-10%) = $280M
consultants) ▪ (2) Comparables method (comps)
▪ Topline is growing 10%/yr. ▪ Comps trading at 14.4x EBITDA
▪ CFS ▪ Value = 18M * 14.4 = ~$260M
▪ Company is generating good free cash ▪ PSG is trading at a discount
flows ▪ Alternative (and acceptable) solution:
▪ Debt is weighting high in cash outflows ▪ EV = Market value of Equity + Net Debt
(180M+74M-16M= $238M)

Chart The client has just shared with us some insights on PSG (prompt staked column chart to trainee).
question What can you conclude from this chart?

▪ Target company offers a potential

for diversification
Suggested ▪ Multi-sectors Bonus points if trainee identifies
insights ▪ Not concentrated in financial potential integration risks related
to diversification
services as Eli & Co
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Consultancy

PSG Consulting Financial Statements

2018A 2018A 2019E

2018A

Note 1: Other assets include patents pending on proprietary implementation approach

Note 2: Current market value of equity = $180M

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Consultancy

PSG Consulting’s revenues detailed

In % of revenues

100% 100%
8 Others

34 Strategy 14 Health

15 Technology

27 Industrial

66 Implementation

36 Banks

Project types Types of clients

Note 1: No further information on ‘Strategy’ projects

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 4 PRACTICE: CASE 2 (5/5)
Trainer’s guide
Consultancy TO PROMPT
TO PROVIDE IF REQUESTED
SUGGESTED SOLUTIONS

Conclusion So, what do you think Eli & Co should do?

▪ “I addressed the following question: Should Elizabeth & Co buy PSG Consulting?
▪ My recommendation is: buy the company
▪ For 3 reasons Indicative answer.
Bonus points if
▪ Financial: Revenues are growing at a 10% rate and present profitability trainee combines
both quantitative
▪ Diversification: Acquiring PSG would allow your company to diversify your and qualitative
client base and unlock cross-selling opportunities (e.g., selling strategy and rationale for or
transformation implementation projects to the same client) against the
acquisition
▪ Fit: PSG’s culture is ‘client centered’ and Eli & Co defines itself as
Suggested ‘achievement oriented’. Both cultures are compatible
answered ▪ However, there are some risks to mitigate if the client proceeds with the acquisition
▪ Target company is publicly traded and Eli & Co might have to pay a high
premium to acquire PSG
▪ PSG is highly leveraged and financing might be an issue
▪ Company is trading at a high multiple of EBITDA, be careful of
overvaluation
▪ Integration might be difficult as the PSG’s activities are much more
diversified than Eli’s”

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 4 PRACTICE: CASE 3 (1/5)
Trainer’s guide
Clothing retailer TO PROMPT
TO PROVIDE IF REQUESTED
SUGGESTED SOLUTIONS

Benedict, a thriving clothing retailer in Canada is pondering international expansion. “Where to go next?” is
often heard in executive talks. However, these discussions usually comes with tactical concerns on how
Opening would to go about the expansion. More precisely, Benedict’s management team is puzzled about distribution
statement questions such as if a new market entry should be realized through online, brick and mortar stores or both
distribution networks. You just have been mandated by Benedict’s managers to bring clarity to these
questions.

Benedict’s situation
▪ Strong brand equity locally but not internationally ▪ Currently 60% of sales come from retail and
▪ Focused on long term growth 40% online
Further ▪ Privately owned (i.e., not a publicly traded company) ▪ Company offers clothes for men and women
information ▪ Management is typically risk averse to large ▪ Revenue distribution: 66% women, 34% men
investments ▪ Women spend 3x as much on clothes than
▪ Has a network of stores and an online shop men do in Canada

Suggested
structure

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 4 PRACTICE: CASE 3 (2/5)
Trainer’s guide
Clothing retailer TO PROMPT
TO PROVIDE IF REQUESTED
SUGGESTED SOLUTIONS

Prompt 1st chart to trainee. Based on this chart, what can you conclude?
Chart analysis If trainee has interest in learning more about ‘high growth’ markets, prompt 2nd chart.

▪ Australian market is highly fragmented with high ▪ In Chile, mostly men shop for clothes
number of low-cost retail players in the clothing industry (66% of sales)
Further ▪ US presents slow growth even if a large market ▪ In Australia, about 75% of revenues of
information ▪ American, Chinese & Russian governments are clothing companies come from women
contemplating imposing tariff to foreign companies ▪ Brazilian market presents high degree of
operating in their market political uncertainty

Chart 1 Chart 2
▪ Market is divided in 4 types of countries: ▪ Chileans prefer to shop in stores, as
▪ Booming (+10% growth): Chinese
▪ Russia, China, Brazil, Chile and ▪ Brazilian market is ‘stuck in the middle’
Australia with about half of the population
▪ Solid growth (5-10% growth): preferring to shop online (slight
Suggested ▪ Canada, France, preference for online)
insights Germany, Sweden and
▪ Australian and Russians are keen on
Norway
online shopping with more than 70% of
▪ Slow growth:
their population embracing this way of
▪ Saudi Arabia,, India, US and
buying clothes
Finland
▪ Undocumented:
▪ All other countries

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Clothing retailer

World’s largest markets – Clothing Industry

In terms of market growth (in %), 2018 data

<5%
5-10%
+10%

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Clothing retailer

Customer preference in ways of shopping for clothes

% of customer preferring to shop in retail stores, 2018 data

24%

69%

48%
18%

92%

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 4 PRACTICE: CASE 3 (5/5)
Trainer’s guide
Clothing retailer TO PROMPT
TO PROVIDE IF REQUESTED
SUGGESTED SOLUTIONS

Your client is leaning towards Australia for expansion as this market is growing, resembles the Canadian
market and would require less upfront investment (based on management’s first analysis). Before
Market sizing expanding, management would an assessment on the size of Australian’s market. Could you size the
market for clothes in Australia?

Top-down approach
▪ Aussie population: 24M
▪ Life expectancy: 80y Most important is
▪
▪
Age distributed evenly (in 4 groups – 6M/group)
Men 50% vs. women 50% of population
$~29B/yr. not the final
Spent in answer but
▪ Average spent on clothes candidate’s
Clothing in
▪ Men (12M): approach to find
Australian market answer
Suggested ▪ 0-20: $25/mo. * 12 mo. * 3M people
▪ 20-40: $50/mo. * 12 mo. * 3M people
approach
▪ 40-60: $100/mo. * 12 mo. * 3M people
Recent study shows that they
▪ 60-80: $50/mo. * 12 mo. * 3M people Bonus could capture a 15% market
▪ Women (12M) Spending 3x as much as men question share. What would be their total
▪ 0-20: $75/mo. * 12 mo. * 3M people revenue under this scenario?
▪ 20-40: $150/mo. * 12 mo. * 3M people
▪ 40-60: $300/mo. * 12 mo. * 3M people $~4.35B
▪ 60-80: $50/mo. * 12 mo. * 3M people
Answer

Benedict’s management team would like to know if they should move ahead with their international venture.
Conclusion The managers are meeting next week to go define what to do next. Based on your analysis, what is the
best move for the company in terms of international expansion?

▪ Enter Australian market through an online store

▪ 3 reasons
▪ Similarity with Canadian market in terms of size and demand
Suggested ▪ Thriving market with a +10% annual growth
Answer ▪ Low capital required in order to enter market through online store
▪ Nevertheless, the company has to be mindful of risks associated with entering a new market. For example:
▪ High competition from low-cost brands already present on the market
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 4 PRACTICE: CASE 4 (1/3)
Trainer’s guide
Printing Co TO PROMPT
TO PROVIDE IF REQUESTED
SUGGESTED SOLUTIONS

Your team has been mandated to advise a printing company called A4. A4 is specialized in printing
encyclopedias. The market for encyclopedias is pretty standardized and mature. Three types of printers are
Opening used to print the end product: custom, standard and industrial. Printers’ output is similar regardless of type,
statement but ‘custom’ printers allow for greater flexibility on end product. A4’s sole owner has seen an incalculable
number of pages being printed in his lifetime and now retirement is looming. In this context, he would like
to sell his 2 standard printers and has asked for the help of your team to value these assets.

▪ Only 1 kind product printed by the company: encyclopedias ▪ A month has 4 weeks
▪ Value chain not integrated (i.e., not part of a publishing house) ▪ Number of printers on market
▪ Encyclopedias are standardized on this market and there is no ▪ Custom: 100
difference between offering from printing companies ▪ Standard: 200
▪ Clients’ printers are fully depreciated ▪ Industrial: 400
▪ The 3 kinds of printers can only print 1 type of encyclopedia ▪ 1 encyclopedia has 1 200 pages
▪ Printers only differ on capacity and cost (see below) ▪ Costs of operations: paper, ink and electricity to run
Further ▪ Printing capacity: machines
information ▪ Custom: 200 pages/week ▪ Demand: 1 000 encyclopedias/month
▪ Standard: 400 pages/week ▪ No information on price charged to clients
▪ Industrial: 600 pages/week ▪ Market is decreasing 10% a yr. because of paperless
▪ Cost to operate trend
▪ Custom: $1 000/encyclopedia ▪ Client would like to use discounted cash flows
▪ Standard: $500/encyclopedia method to value his assets
▪ Industrial: $250/encyclopedia ▪ WACC of company (Weighted Average Cost of
Capital) = 5%

How much A4’s Open question case: How do would you find
2 printers are the value of these assets?
worth?

Discounted cash Comparable printers Sum of the parts of

Suggested flows of printers? sold on market? printers?
structure
Cost to Growth WACC
Revenues of
operate of Face value Depreciation Multiple
from printing company
printers demand

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 4 PRACTICE: CASE 4 (2/3)
Trainer’s guide
Printing Co TO PROMPT
TO PROVIDE IF REQUESTED
SUGGESTED SOLUTIONS

Valuation Calculate the value of the printers according to the method privileged by the client.

▪ No information is available in terms of price/encyclopedia charge to clients

Further ▪ The product offered by the company is a commodity
information ▪ Most efficient players will win on this market (i.e., players with the lowest marginal cost will produce first until capacity
is reached, then 2nd most efficient will operate, and so on and so forth)

▪ To solve this question, trainee has to use economics theories about competitive market. See below for a graphical
representation of the answer.
▪ Trainee has to understand that most efficient
suppliers will produce first (i.e., industrial
DEMAND
Price printers)
/Cost SUPPLY
INTERSECT
▪ Only part of ‘standard’ printers will produce on
this market (demand < capacity)
▪ Custom printers are not operating in this market
since not efficient enough
Suggested
▪ Since the market is competitive, there is
Answer uncertainty about which ‘standard’ printers will
produce
Custom ▪ Therefore, which ‘standard’ printers is
producing will be defined by lowest offered
price (i.e., because of competitive dynamics
Standard marginal cost will be = price)
Industrial ▪ Hence, Marginal Revenue - Marginal cost /
(WACC – Growth) = 500-500 / 5%-(10%) = 0
Quantity ▪ Both printers have no value when using DCF
method

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 4 PRACTICE: CASE 4 (3/3)
Trainer’s guide
Printing Co TO PROMPT
TO PROVIDE IF REQUESTED
SUGGESTED SOLUTIONS

Creativity Interesting analysis. Do you think our client could find a way to differentiate his offer and
question generate other revenue streams from printers? If so, how?

▪ Offer better financing solutions to clients

Most important is to define
▪ Print on new type of paper (e.g., high creative solutions to the
Suggested quality paper) clients situations.
▪ Reduce time to deliver by placing facilities Additionally, the trainee has
answer to try to answer this question
closer to end-client in a structured way
▪ Reduce shipping costs

Conclusion To conclude, based on what you know, what is the value of the 2
printers?

▪ The printers valued is 0 for 3 reasons

▪ Discounted cash flow = 0
Suggested ▪ Declining market at a rate of -10%/year in terms of revenues
answer ▪ Low potential to differentiate from competitors with current assets
▪ However, there might be residual value of assets by selling parts of printers part by part
▪ If I had more time, I would have analyzed how to value parts of printers

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 4 PRACTICE: CASE 5 (1/5)
Trainer’s guide
School TO PROMPT
TO PROVIDE IF REQUESTED
SUGGESTED SOLUTIONS

Gretzky State University, GSU, is a graduate school operating in sunny New Mexico. Its beautiful campus attracts
students from all over the United States. Today, the school’s revenues are growing but at a slower pace than it
did before. In the eyes of GSU’s board, this can be explained by the saturation of the American market in terms of
grad school offering.
Opening Consequently, Gretzky State is looking to diversify its activities and would like to capture new income
opportunities. International expansion is the favored option by the board. In this context, the Dean of the
statement
institution has just approached Chinese University, CU, a school that is in the process of creating a new campus
in China and that is actively looking for a business partner for this project. In this context, CU has offered a joint
venture deal to the Dean of GSU where both players would have equal equity in the project. Do you think GSU
should enter this partnership?

GSU’s Profile CU’s Profile

▪ Entering a joint venture (JV) is new for GSU ▪ Currently operates in 10 different markets (10
▪ The board supports the joint venture but most of school’s staff don’t campuses) and has experience in opening new
▪ Strong brand equity as GSU was founded in 1850 and is always highly locations
ranked in national rankings ▪ Offers Law and Business degrees
Further ▪ Offers only Masters of Art degrees (1 campus) ▪ Brand image of school is still to develop
▪ GSU has increasing concerns about the homogeneity of its student body ▪ Average tuition: $83K/yr.
information and staff; would like to increase diversity to improve ranking internationally ▪ 9 000 students
▪ Average tuition: $100K/yr. ▪ The current school staff is sceptic about the JV
▪ 2 000 students ▪ Goal of JV: Gain brand equity by capitalizing on
▪ Goal of JV: Diversify student body/staff + generate new revenue streams GSU’s branding
(no concerns about costs)

Closed question case: What key variables

Enter JV?
should be considered to take this decision?

What is the strategic How can this JV Would the major

Suggested benefit of a JV for generate new stakeholders
GSU? revenues for GSU? accept?
structure
How much How many
How can it help How can it help Can a JV affect Could it earn revenues
can it students from other sources in JV GSU CU Chinese & US
diversify student diversify school positively GSU’s could it (e.g., restaurant, school staff/board? staff/board? governments?
charge for
body? staff? brand equity? merchandise, etc.)?
tuition? attract?

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Trainer’s guide
School TO PROMPT
TO PROVIDE IF REQUESTED
SUGGESTED SOLUTIONS

In the due diligence process, GSU has managed to obtain information on CU’s current revenues and
Charts student body profile. What can you conclude for analyzing these charts? Prompt 2 charts to
questions trainee.

▪ 9 000 students spread across 10 campuses; the school is larger in terms of number of students
than GSU
▪ Low income students have an incentive to graduate ($10K check upon graduation)
▪ CU has also an incentive to graduate low income students ($17K upon graduation)
▪ No correlation between financial background and probability of graduating - could be related to the
government’s program
▪ The candidate should be able to identify 3 markets:
Suggested ▪ 1 concentrated in Business school with little Law school revenues (campuses 8, 9 and 10)
Insights ▪ 1 concentrated in Law school with little business revenues (campuses 1, 2 and 3)
▪ 1 equally diversified generating the most revenues (Campuses 5, 6 and 7)
▪ The diversified market offers the highest revenues since it attracts mostly people from low income
background (one potential explanation)
▪ Offering Business and Law degrees in China would increase diversity of student body for GSU
▪ Offering an equal mix of Business and Law degrees would be a way to maximize revenues from
joint venture

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School

Financial background of
Revenues generated by CU CU’s graduate students
$M by campus, 2018 data In thousands, 2018 data

Campus 1

Campus 2
0.5 Wealthy

Campus 3 1.5 High income

Campus 4

Campus 5
3 Mid income
Campus 6

Campus 7

Campus 8

Campus 9 4 Low income

Campus 10

0 20 40 60 80 100 120
Business school Law School

Note 1: Chinese government has established a ‘bonus upon completion’ program in 2018. Every student from a low income
background that completes a masters degree receives a $10K check from the government while the graduate school
receives $17K.

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School

Financial background vs. probability of completing degree in CU’s grad school

Correlation, 2018 data

Financial
background
Wealthy

Low income

0 10 20 30 40 50 60 70 80 90 100
Probability of completing degree

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 4 PRACTICE: CASE 5 (5/5)
Trainer’s guide
School TO PROMPT
TO PROVIDE IF REQUESTED
SUGGESTED SOLUTIONS

Creativity If we put the joint venture idea aside for a minute, what could be other revenue uplift
question opportunities for GSU?

▪ Higher tuition fees

▪ New programs, same campus Most important is candidate’s creativity to
▪ New campus, same program address revenue issue of Gretzky State
Suggested ▪ New campus, new programs Bonus points for answers that would also
answers ▪ Online courses tackle/consider need for diversity among student
▪ Summer school body
▪ Leadership seminars for professionals

Conclusion What do you think GSU should do?

▪ Enter JV
▪ New revenue streams: $83K/student and $100K/low income graduating student (83K + 17K of
gov. program)
▪ Diversity of student body: Enlarged student body in terms of financial background and nationality
(no information available on school staff)

Suggested ▪ New programs offering: Business & Law

answered ▪ Risks
▪ Would staff of both schools accept?
▪ Would CU’s brand image affect negatively GSU’s brand equity?
▪ Are US and Chinese governments onboard with this collaboration?
▪ Operating model might be complex with two schools managing this new campus

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 Case #06 - Pescador Group Written by Eduardo Ortiz Reynaga, HEC MBA 2020

Context Case Overview

Situation: Marine fisheries provide 80 million metric tons of seafood annually, supporting a USD $900 billion Format: Interviewer-driven
seafood industry. As the global population rises to 9 billion in 2050 and economic development expands, the
demand for seafood is expected to increase considerably. Difficulty Level:

Problem: Unfortunately, more than a third of wild fisheries are already overexploited or depleted. Thus, the Topic: Impact Investing
rising demand for seafood may be met by dramatic declines in seafood supplies if current levels of Industry: Sustainable Fisheries
overfishing and habitat destruction continues.
Concept(s) Tested: Social & environmental impact,
Solution: Sustainable management of fish stocks has the potential to restore ecosystems and increase
global fish catch, expanding total protein supply and supporting global food security. profitability.

Case Question Interviewer Guide

Intro: Your client is Pescador Group, a hybrid social enterprise composed of two partner organizations. Their • Interviewer should take the time to set the stage,
mission is to foster the restoration of ecosystems and the development of collaborative fishing economies. this context in which the company is operating
Pescador is composed of two partner organizations: might lead to interesting insights form the
• Row Boat Org – a community development NGO with expertise in marine environments and social candidate.
transformation. • This is not a quantitative case. The candidate
• Fly Rod Inc – a seafood distribution company in charge of the transport, processing, and distribution of the might feel inclined to write down every number
products sourced from sustainable fishing communities. that they hear. Encourage them to focus on the
big picture and the overarching strategy.
The group is looking to raise a Series A funding round from Encourage Capital, an impact investment firm • Throughout the case, keep in mind that this case
that seeks to deploy private capital into solutions to the world’s most pressing challenges, in order to reach is about securing funding, not fixing or improving
more communities. You have been asked to advise Pescador on how to demonstrate to the fund an the operations of the company.
attractive investment opportunity both from a financial and impact perspective.

Consulting
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 Case #06 - Pescador Group Written by Eduardo Ortiz Reynaga, HEC MBA 2020

Clarifications Interviewer Guide

Encourage Capital (investor): Encourage Capital
Encourage believes they can generate both compelling investments returns and social and environmental It is very important to note that Encourage would be
impacts. Their investment strategies are designed with impact as the fundamental value of their decision- interested in investing if the deal is aligned with their
making. mission for financial and impact returns.

Pescador Pescador
It was founded three years ago and is currently working towards the restoration of a single seafood species Pescador is an impact-first company. That means that
(Scallops) in one community in Baja California, Mexico. the group is in business for the impact - profit follows.
It is important that the candidate keeps this in mind
Business Model throughout the case.
The intervention of the firm works in three steps:
1. Identify a fishing community and species that has the potential to develop a commercially-attractive Business Model
enterprise. At this point in time, Pescador (as a business) is
2. Design, implement, and invest in sustainable fishing strategies that improve the quality and yield of EBITDA negative. It will continue to be so until they
the species. can fish sustainably from a fully-recovered ecosystem.
3. Commercialize the resulting product to serve customer preferences for sustainability, quality, and
food safety. • The candidate should take time to clarify why
Pescador would be interested in raising funds
For environmental restoration to work, fishermen engage in other types of activities while they wait for their • Candidate should clarify the objective of the case
resource to recover. Such activities include sea-bottom cleaning, surveillance for poachers, and monitoring and keep in mind that this is a case for raising
and censing. funds, not fixing the operations of the company.

Consulting
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 Case #06 - Pescador Group Written by Eduardo Ortiz Reynaga, HEC MBA 2020

Clarifications Interviewer Guide

Financing Financing
During the fishing moratorium, the fishermen’s salaries, as well as the groups overhead expenses are What is relevant about this financing strategy is that
entirely financed by Row Boat Org, whose resources come from private donations and grants from large this money is “free”. Since the money comes from
Foundations. donations and grants, there is no need to repay.

Revenue Revenue
If asked, have the candidate brainstorm likely revenue streams of Fly Rod. Confirm that, due to the firm’s Pescador has intentionally decided to not sell
fishing capacity and strategy, Fly Rod pursues only the following revenue streams: aggressively since the sea bottom is not fully
• Few high-end restaurants in Mexico recovered.
• Mexican consumers through a third-party online gourmet store

Inventory Inventory
Three years ago, the census showed 400,000 scallops in the sea bottom of the fishing community. Today, If asked, you should tell the candidate that Pescador
that number is 4 Million. There is an estimated capacity of 60 Million. is censing for other species that could be restored.

Other Other
• Due to best fishing practices, Pescador holds an exclusive fishing license in the community where they Fishing license: this means that only Pescador can
work. fish and distribute the product coming from this
• Pescador currently works with 109 fishermen. portion of the sea.
• We have no information on competitors but it is safe to assume that competitors are trying to extract as
much product as possible due to the increasing global demand.
• There is no information on how much money Pescador is looking to raise but it is safe to assume that the
funds will be used to increase their impact, reach, and profitability.

Consulting
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 Case #06 - Pescador Group Written by Eduardo Ortiz Reynaga, HEC MBA 2020

Sample Framework Interviewer Guide

Good
Making a case for investing in Pescador The candidate should understand that this is a case
for a go/no go investment decision and (s)he creates
a framework that highlights the financial opportunities
Impact Profitability Risks and or attractiveness of the company.
E (P = R - C) M Mitigation
Better
Restoring for
The candidate integrates impact KPIs into the
R = More species (clams,
Environmental Social SDGs oysters, etc.) competitors -> structure such as # of species protected, # of
fishing exclusivity
license communities/people reached, enhanced livelihoods
through increased income, etc. Alternatively, the
# of lives impacted
SDG1 No Poverty
R = Additional revenue streams candidate frames the impact of the company under
# of species (families and and markets (eg. USA) Investment ->
protected fishers) combining the UN SDGs.
philanthropic
capital through the
SDG2 Zero C = More fishing communities
NGO Best
Δ in income Hunger (economies of scale) They highlight the impact of the economy (expected
shortage of seafood supply) in the price of the
products, the consequence of the sustainability mega-
SDG12
# of communities Responsible
E (Economy) = Increasing prices
due to shortage of supply
trend in shaping consumer expectations (price
Consumption
premium for sustainable brands), and/or the barriers
of entry for competitors (sustainability certifications or
SDG14 Life Below M (Market) = Price premium due fishing licenses).
Water to sustainability mega-trend

Consulting
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 Case #06 - Pescador Group Written by Eduardo Ortiz Reynaga, HEC MBA 2020

Recommendation Interviewer Guide

If not done already, ask the candidate to come back to the why of the case and to keep in Good
mind that the parties are in this for the social and environmental impact alongside the Candidate should take a brief moment to collect their
thoughts and articulate a structured recommendation,
financial returns. Then ask the candidate to come to a conclusion and present the strategy of using insights taken from the case analysis.
what to highlight about the firm to the client.
Better
Candidate should provide a recommendation that: Candidate should offer specific ideas as to how
profitability could be increased and its relationship to
the potential use of funds.
• Restates the problem of raising capital
• Highlights the mission alignment between the impact investor and the company Best
• Showcases mainly two aspects of the potential deal: The candidate offers a compelling and creative
• The opportunity for combined social and environmental impact (with a few KPIs) strategy that sums up the impact and financial
opportunities of the investment. The candidate also
• The opportunity for increased profitability through the use of funds. The candidate
identifies a few risks and offers interesting mitigation
should at least identify 1) the opportunity for restoring, fishing, and distributing more strategies.
species; and 2) the possibility to reach more communities.
• Offers insights as to why the industry and the economy favor this deal
• Ex. Shortage of supply and conscious consumers translating into price premiums
• Names a few risks associated with the investment and has initial ideas on how to mitigate
these risks.

Consulting
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 Case #07 – Ultra Running Ltd. Written by Jon Wiedeman, HEC MBA 2020

Case Question Case Overview

Situation: Your client is Ultra Running Ltd., an athletic events operator who specializes in hosting large Format: Interviewee-driven
international running competitions of varying distances all in excess of 42.2KM, called Ultra Marathons. The
firm is under new leadership and is looking for growth opportunities using ₤250,000 that was allocated. Difficulty Level:
You’ve been asked to advise them on how to improve revenue using these funds, and how to do so Topic: Growth
profitably.
Industry: Sports
Concept(s) Tested: Logistics, basic financial
Clarification
statement knowledge, creativity
Business Model:
• Races take place across the world and can be 50KM, 100KM or 200KM in length. Money is typically tight as
ultra races are still relatively uncommon compared to shorter distances, and local volunteers are used for the
vast majority of roles to staff each race. Ultra Ltd. is headquartered in London, UK.
INTERVIEWER GUIDE
• Revenue streams: • Interviewee should take time to clarify what ultra
• Tickets (charged to runners of events). Ticket prices are the same across all races. marathons are and the business model of Ultra Ltd.
• Merchandise (re-selling merchandise from partner athletic brands like Nike, Adidas and Saucony) • If asked for revenue sources, have the candidate
• Sponsorships (advertising revenue for brands placing marketing material at events) brainstorm and then confirm the three sources.
Objective: Ideal candidates will use this information to
• Ultra is looking to increase revenue as significantly and as quickly as possible, ensuring that all revenue growth personalize a structure to this firm.
is also profitable and supports the overall mission of being the leading global ultra-marathon operator. • Candidate should clarify the objective and
Other: constraints involved (namely, ₤250,000), and
• We only have ₤250,000 to spend on a new race, unless we decide to divest in other aspects of our business ideally show understanding or request it of likely
• We feel we can get similar amounts of volunteers at all locations clients and channels.
• We have the expertise and partnerships to access all materials and race direction etc

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 Case #07 – Ultra Running Ltd. Written by Jon Wiedeman, HEC MBA 2020

Sample Framework INTERVIEWER GUIDE

Good
Candidate should create a structure that considers the
financial implications to grow, and to do so profitably,
Achieve Growth Enable Growth as a priority. Revenue streams should make use of
identified business segments (tickets, merch,
sponsorships).
Feasibility
Market
Company
Better
Strategic Candidate should consider the ability to grow given
Revenue Cost State Competitors Customers Capital Capacity Expertise
Fit
explicit and implicit constraints (₤250k as well as
talent, capacity etc)
Tickets Fixed
Size
Best
Merchandise Variable Ideal structure should also show consideration for how
Growth
the market may impact revenues (whether ultra
Sponsors marathons are growing or not), as well as questions
like risks and strategy (qualitative aspects of a
decision given objective of “being the leading global
ultra-marathon operator”). But these should second-
order considerations, and not priority. Great
candidates should drive the case by suggesting a dive
into the company financials and request information
on the revenue streams.

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 Case #07 – Ultra Running Ltd. Written by Jon Wiedeman, HEC MBA 2020

Exhibit 1 - Analysis INTERVIEWER GUIDE

Distribute to candidate the financial statement by race location (London, Switzerland, Good
Candidate should clear the slide by introducing it and
France, Tasmania) along with projections for three new possible races. If candidate does not
confirming understanding of it. Candidate should realize
calculate estimated profit margins for each race, ask them to do so. the opportunity to compare profit across current and
proposed races and identify which are the most and
least profitable.

Better
Candidate should identify why races show different
levels of profitability: 1) London delivers the greatest
overall profit due to its ticket sales and merchandise. 2)
Tasmania see heavy Travel and Logistics costs, likely
due to its distant and remote location, are exceedingly
high for such a small race. If asked, confirm that this is
not something the company is likely to be able to
change. Vancouver is the most profitable.

Best
Candidate recognizes Vancouver is the only proposed
race which would increase the profit margin of the total
Note: Allow for estimates to simplify math, so long as the candidate identifies that profits
company but that it exceeds 250k budget. Candidate
of current races are around 25-40%, except Tasmania which is much lower.
should therefore consider three remaining options: 1)
cancel Tasmania and use funds to launch Vancouver 2)
grow revenue through another stream 3) both

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 Case #07 – Ultra Running Ltd. Written by Jon Wiedeman, HEC MBA 2020

Exhibit 2 - Analysis INTERVIEWER GUIDE

Distribute to candidate the three sponsorship options along with this information: Good
Three different sponsorship / merchandise deal offers have been provided to Ultra. Ultra doesn’t currently Candidate should clear the slide by introducing it and
work with any of these firms. Each firm is willing to pay an amount to sponsor a race (current or new) in confirming understanding of key information, namely
exchange for permission to sell their sneakers at the race. revenue and location (inside the footnote) for each
company. While Nike provides the greatest revenue, it
is only plausible for races within the United States.
Saucony has the 2nd greatest revenue and is possible
in a greater area, specifically in Vancouver as well.

Better
Candidate should recognize that sponsorships could
offer potential for both current and new races, but that
sponsor revenue is earned in each current race
already, and that this revenue could be compromised
by the introduction of a new sponsor.

Best
Candidate offers insight into any brand connections,
like how Hoka maximum cushion shoes might be a
particular fit for ultra marathons, or that “Time to fly”
could offer some connotation of traveling the world or
expanding horizons with international races.

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 Case #07 – Ultra Running Ltd. Written by Jon Wiedeman, HEC MBA 2020

Recommendation INTERVIEWER GUIDE

If not done already, ask the candidate to calculate the profit margin of Ultra Ltd. Following Good
Candidate should take a brief moment to collect their
implementation of recommendations. Then ask candidate to come to a conclusion and thoughts and articulate a structured recommendation,
present recommendations to the client using insights taken from the case analysis

Candidate should provide a recommendation that: Better

Candidate should offer specific quantitative evidence
• Restates the problem of growth given limited resources of what could be gained if recommendations are
followed
• Specifies clear solutions
• hosting Vancouver using a mix of the 250,000 available and Best
funds previously allocated for the Tasmania race Candidate offers a compelling and creative argument
• moving forward with the Saucony sponsorship for the Vancouver that sums up items discussed as well as risks and
next steps not yet identified, as a means of continuing
race the conversation at a future date.
• Offers support for these solutions that include financial, brand and
company mission as evidence
• Ex. quantitative support for the value of Vancouver, the lack of
value in Tasmania and the potential to be achieved
• Names a few risks associated with recommendations or next steps that
haven’t been discussed in detail already

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 Case #07 – Ultra Running Ltd. Exhibit 1

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 Case #07 – Ultra Running Ltd. Exhibit 2

Company: Nike Company: Saucony Company: Hoka

Shoe: Zoom Vaporfly(1) Shoe: Kinvara 10(2) Shoe: Bondi 6(3)

“Innovative products, “High-performance running “Fitness, trail, hiking, and road running
experiences and services to shoes & clothes” shoes of maximum cushion and
inspire athletes” minimal weight”

Revenue: ₤200,000 Revenue: ₤150,000 Revenue : ₤100,000

“Just do it.” “Loyal to the sport.” “Time to fly.”

(1) United States races only; (2) North American races only; (3) European races only

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 Case #08 – Entering Motorsport Written by Matteo Loiacono, HEC MBA 2020

Case Question Case Overview

Situation: It is 2017. A Japanese automotive company (4th largest n the world) is planning to launch a new product line of
Format: Interviewer-driven
full electric vehicles in by 2021. To promote this product in the medium and long term the marketing department has come
up with the idea of entering a motorsport championship to increase the brand reputation and perception from potential Difficulty Level:
clients. The target custumer for this EV car are young people (25-35) living in large metropolitan areas. The vehicle will be
launched in the local market first, and then in Europe and North America the following years, 2022 and 2023. Topic: Market entry

Two options are being considered to drive demand prior to the product launch: either setting up a new team in Formula 1 Industry: Sports
(hybrid technology) or in the Formulae Electric Championship. 1) Performance target for Formula 1 is to be in the top 8 the Concept(s) Tested: Time management, prioritization,
first tear, top 5 the second and top three or higher the third year (when the new product line will be launched). 2) Due to
smaller competition, Formula E target is to be within top three from the first year and win the championship at the third year. data synthesis
The board has approved this proposal as long as this activity can break even (i.e. non negative EBIT in P&L) at the third
year (2020), and reaches the highest number of potential future customers. How would you proceed and decide which
championship to enter?
INTERVIEWER GUIDE
Clarification • Candidate should clarify the objective (noted in bold
in the intro) and constraints involved (investments
Business Model: and P&L performance), and ideally show
• Revenue streams: understanding of the reasoning behind the market
• TV rights and prize money coming from FIA (Federation international de l’automobile). entry into motorsport.
• Merchandise (t-shirts, shoes, hats)
• Sponsorships (advertising revenue for brands placing logos on the car)
Costs: Upfront investments for the formula 1 car would be 150 million $, whereas for the Formula E would be 12
• Candidate should understand that target of the
million $. (can be disclosed when introducing the case if candidate doesn’t clarify). These investments take in activity is not profitability but marketing future OEM
account all the initial costs associated with setting up the team and designing/manufacturing the cars, but not the products, therefore maximizing brand exposure to
operational costs such as logistics, travel expenses, personnel. future customers.
Time: Case timeframe is 2018

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 Case #08 – Entering Motorsport Written by Matteo Loiacono, HEC MBA 2020

Sample Framework INTERVIEWER GUIDE

Good
Candidate creates a structured, MECE framework that
Achieve maximum targeted customers base by 2020 addresses the problem statement of achieving the
necessary customer base by the given timeline.

Better
Candidate considers both internal and external factors
Company Market analysis Risks involved in reaching the goal, as well as reasonable
risks involved in pursuing it.

Revenue Costs Formula 1 Health & Bad Best

Formula E performance
Safety Candidate presents all of the above in an organized,
well-articulated way with specific examples to the
Fixed (initial
FIA -Rights
investment) client and situation.
Trends Trends Driver
Merchandise Variable/operational

Customers
Customers Mechanics
Sponsors

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 Case #08 – Entering Motorsport Written by Matteo Loiacono, HEC MBA 2020

Exhibit 1 – Customer segments F1 vs FE INTERVIEWER GUIDE

Good
Candidate should understand the specific interest in an age segment and ask for data Candidate should notice that FE has more viewers in
regarding customer segmentation amongst the viewers of the two championships. percentage belonging to the customers’ target
segment.

Better

Candidate should also understand that this is a

percentage table and some absolute numbers are
needed to understand the overall penetration of the
two championship

Best

Candidate should also understand that this is a time

snapshot and doesn’t show any trends in the growth
or decrease of viewers, should therefore ask for more
info on the trends.

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 Case #08 – Entering Motorsport Written by Matteo Loiacono, HEC MBA 2020

Exhibit 2 – Number of viewers by region INTERVIEWER GUIDE

Good
Candidate should brainstorm about best ways to collect data about the two championships
Asking for generic data regarding number of people
viewers, and ideally ask about TV channel viewers data or a proxy of this. Specify that this interested in the two championships
is the data collected for 2017.
Better
Providing specific request or method afor researching
and finding this data, e.g. TV viewers which is a public
available information and a good proxy for total
number of viewers

Best
Reflecting on the information provided beforehand,
understand that geography itself is not a major factor
in choosing between the two championships since
commercialization of the product will happen
worldwide.

Moreover the candidate should realize that this data is

for year 2017 and that a trend forecast is needed
since the new product will be launched only in 2021.

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 Case #08 – Entering Motorsport Written by Matteo Loiacono, HEC MBA 2020

Exhibit 3 – Viewers trend INTERVIEWER GUIDE

Good
Candidate should brainstorm about best ways to collect data about the two championships
Examine the trend of the two curves, observe that
viewers, and ideally ask about TV channel viewers data or a proxy of this. Formula 1 viewers is almost stagnating, whereas FE
is growing very fast.

Exhibit 3: Avg event TV viewers (millions) Better

Historical data and forecast Remember previous data shared and consider also
the percentage of viewers in the targeted segment of
age, start drawing conclusion and reasonable
assumption as why Formula E should be more
appealing in the long term in terms of marketing

Best
A further reflection should also take in consideration
that viewers of the two different championship might
have a different level of interest towards the electric
vehicle that will be commercialized in the future:
candidate is free to assume that Formula 1 viewers
are more “traditionalist” and could therefore apply a
“discount factor” on the number of F1 viewers to take
in account this different “appeal”.

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 Case #08 – Entering Motorsport Written by Matteo Loiacono, HEC MBA 2020

Exhibit 4 – Formula E Revenues INTERVIEWER GUIDE

Once the candidate has targeted Formula E has the potential best option, he has to move into the profit and Good
loss analysis to make sure that the marketing activity is financially sustainable from the 3 year onwards (i.e. Remember to utilize performance target for the first
positive EBIT). Initial investments given in the case has to be considered depreciated linearly in three years three seasons to estimate potential revenues
(race car technology ages very very quickly). Brainstorm with candidate about possible source of revenue in
the motorsport business. Better
Read the notes carefully and understands or at least
ask to clarify the changes in revenues for year 2 and 3

Best
Start to build a P&L statement for the next three year
using the data from the table

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 Case #08 – Entering Motorsport Written by Matteo Loiacono, HEC MBA 2020

Exhibit 5 – Formula E Costs INTERVIEWER GUIDE

Once the candidate has targeted Formula E has the potential best option, he/she has to move into the profit Candidate should start to build a P&L statement (cost
and loss analysis to make sure that the marketing activity is financially sustainable from the 3 year onwards side) for the next three year using the data from the
(i.e. positive EBIT). Initial investments given in the case has to be considered depreciated linearly in three table.
years (race car technology ages very very quickly). Brainstorm with candidate about possible costs
associated to motorsport business. Provide the table info when prompted. Guide candidate through the idea Once completed, candidate should notice that EBIT
of building a YoY income statement to check the Board requirement. becomes positive at year three for the Formula E
team.

The condition required by the board about the

sustainability of the marketing investment is met.

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 Case #08 – Entering Motorsport Written by Matteo Loiacono, HEC MBA 2020

Exhibit 6 – Formula 1 Revenues INTERVIEWER GUIDE

Some candidates might decide to proceed to the P&L analysis before evaluating the marketing potential: if Good
so they might decide to evaluate profitability for both championship (consuming some extra time). Provide Remember to utilize performance target for the first
the following table when prompted about F1 revenue streams. three seasons to estimate potential revenues

Better
Read the notes carefully and understands or at least
ask to clarify the changes in revenues for year 2 and 3

Best
Start to build a P&L statement for the next three year
using the data from the table

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 Case #08 – Entering Motorsport Written by Matteo Loiacono, HEC MBA 2020

Exhibit 7 – Formula 1 Costs INTERVIEWER GUIDE

Once the candidate has targeted Formula E has the potential best option, he has to move into the profit and Candidate should start to build a P&L statement (cost
loss analysis to make sure that the marketing activity is financially sustainable from the 3 year onwards (i.e. side) for the next three year using the data from the
positive EBIT). Initial investments given in the case has to be considered depreciated linearly in three years table. Once completed, candidate should notice that
(race car technology ages very very quickly). Brainstorm with candidate about possible costs associated to EBIT is still not positive at year three for the Formula
motorsport business. Provide the table info when prompted. 1 team.

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 Case #08 – Entering Motorsport Written by Matteo Loiacono, HEC MBA 2020

Recommendation INTERVIEWER GUIDE

Then ask candidate to come to a conclusion and present recommendations to the client Good
Candidate should take a brief moment to collect their
thoughts and articulate a structured recommendation,
Candidate should provide a recommendation that: using insights taken from the case analysis

Better
• Explain why Formula E has more potential in terms of future customers outreach Candidate should offer specific quantitative evidence
• Show the financial viability of the investment as required by the board of what could be gained if recommendations are
• Suggest complementary activity or analysis to confirm the potential of Formula E followed

Best
• Names a few risks associated with recommendations (e.g. the risk of bad Candidate offers a compelling and creative argument
publicity if performance on track is bad, over expenditure) or next steps that that sums up items discussed as well as risks and
haven’t been discussed in detail already next steps not yet identified, as a means of continuing
the conversation at a future date.

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 Case #08 – Entering Motorsport
Appendix for P&L calculations – Formula E
REVENUES FORECAST
Year 1 Year 2 Year 3 Year 4
Prize money Sponsorship Prize money Spons Prize money Spons Prize money Spons
0.9 2 2 4 4 8 4 16
2.9 6 12 20
top 3 top2 first 1 place

COST FORECAST EBIT Projection

Year 1 Year 2 Year 3
Depreciation [Link] Dep Op cost Dep Op cost
Logistics 2 2 2 Year 1 Year 2 Year 3 Year 4
Staff 3 3 2.5 -11 -7 0.00 8
Spare parts 1 1 1
Car dev. 4 3 2.5
Fees 0 0 0
R&D 4 10 4 9 4 8
14 13 12

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 Case #08 – Entering Motorsport
Appendix for P&L calculations – Formula 1

REVENUES FORECAST
Year 1 Year 2 Year 3 Year 4
FIA Sponsorship FIA Spons FIA Spons FIA Spons
0 10 55 20 69 30 76 40
10 75 99 116
top 8 top 5 top 3

COST STRUCTURE EBIT forecast

Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year 4
Depreciation [Link] Dep Op cost Dep Op cost -120 -51 -23 -6
Logistics 14 15 13
Staff 20 20 18
Spare parts 20 20 20
Car dev. 25 20 20
Fees 1 1 1
R&D 50 80 50 76 50 72
130 126 122

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 Case #08 – Entering Motorsport Exhibit 1

Exhibit 1: Customer Segments by Age

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 Case #08 – Entering Motorsport Exhibit 2

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 Case #08 – Entering Motorsport Exhibit 3

Exhibit 3: Avg event TV viewers (millions)

Historical data and forecast

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 Case #08 – Entering Motorsport Exhibit 4

Exhibit 4: Revenue Summary for 2017 Formula E season ($m)

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 Case #08 – Entering Motorsport Exhibit 5

Exhibit 5: Avg Operating Costs ($m) for 2018 Formula E

(current and future seasons)

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 Case #08 – Entering Motorsport Exhibit 6

Exhibit 6: Revenue Summary for 2017 F1 Season ($m)

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 Case #08 – Entering Motorsport Exhibit 7

Exhibit 7: Avg Operating Costs ($m) for 2018 Formula 1

(current and future seasons)

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 Case #09 – Electric Mall Scooters Written by Nico Vougas, HEC MBA 2020

Case Question Case Overview

Situation: Out client is the owner of a large scale shopping mall. They have been recently considering Format: Interviewee-driven
forming a partnership with an electrical scooter company to deploy electric scooters inside the mall. They
would like to know if this is a good idea. Difficulty Level:
Topic: Cost / Benefit Analysis
Industry: Retail
Concept(s) Tested: Math, creativity, business sense,
Clarification
curiosity

• Business model, 2 types of income:

• Leasing space for shops INTERVIEWER GUIDE
• Percentage of sales from the shops
• Location: Dubai • Clarification Questions – the candidate should
• E-scooters: the scooters would allow customers to reach their destinations faster (convenience) clarify most of the following.
and would be placed throughout the mall. Think of Lime, Bird, etc. • Structure:
• KPI: Maximize revenues, short term DO: the candidate should include current
• Number of shops: 520 shops revenue calculations, compare to future
• Partnership would allow the E-Scooter company to operate in the mall, no costs associated. revenues with scooters, and talk about risks.
DONTS: the candidate should not speak about
costs, nor get too much into details of the
business model of the E-scooters (off topic)

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 Case #09 – Electric Mall Scooters Written by Nico Vougas, HEC MBA 2020

Sample Framework INTERVIEWER GUIDE

If the candidate hasn’t done so yet, ask if they think this revenue stream will be impacted Good
Identify the opportunity to earn revenue from the
by E-scooters prior to creating a structure.
scooter company for mall access, as well as possible
increase mall revenue by getting more people to more
Example 1: Example 2: stores faster. Consider some risks, namely safety and
driving people away from the mall.

Cost/Benefit Cost/Benefit Better

A creative candidate can come up with ideas to
monetize the space required for charging stations or
Current Future pickup locations, or make a case for whether
Financial accessing more stores more quickly will lead to an
Impact Feasibility Risks Revenue Revenue Risks
Model Model increase in revenue.

More New Perc- Greater New Perc- Best

Safety Safety
revenue revenue eption Volume Income eption Considering the capabilities of the mall and its
feasibility to implement these scooters, as well as
presenting all of the above in a succinct, articulate
way with details relevant to the client’s business
model.

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 Case #09 – Electric Mall Scooters Written by Nico Vougas, HEC MBA 2020

Calculations 1 INTERVIEWER GUIDE

Ask the candidate to calculate the current income received by the mall for leasing out
space to stores.

Current revenues for lease, provide if the candidate mentions all the following data needed:

• Size of mall: 300,000 square meters

• Percentage for lease: 57%

• Average price per square meter: $12/day

• Mall is open every day except for 5 holiday days per year

Solution: 300,000 x 0.57 x 12 x 360 = $738,720,000 annually

(the candidate is allowed to round according to the interviewer)

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 Case #09 – Electric Mall Scooters Written by Nico Vougas, HEC MBA 2020

Calculations 2 INTERVIEWER GUIDE

Ask candidate to calculate the income received by the mall in fees to stores, as a % of
total sales.

Revenues for percentage of sales:

• 1.5% of sales are mall fees generated

• Average mall time per customer: 2 hours

• 95,000 shoppers per day

• Average spent: $40/shopper/hour

Solution: 95,000 x 40 x 2 x 360 x 1.5% = $41,040,000 / year

(round as necessary)

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 Case #09 – Electric Mall Scooters Written by Nico Vougas, HEC MBA 2020

Calculations 3 INTERVIEWER GUIDE

Ask candidate to brainstorm how these figures are likely to be affected by E-scooters. After a Good
Will identify that leasing revenue is unlikely to change,
brief brainstorming session. but fees will, given increased access to stores.
Calculates impact by re-running all numbers from
Additional revenue sources
• More money spent at stores leading to more mall fees
scratch
• Charging scooter company to lease space
• Using/selling GPS data tracked by E-scooters to optimize shop positions and value proposition Better
• Commissions from E-scooter rental or advertisements on scooters/app Also recognizes that scooters will leave to a decrease
in time spent at the mall for the average person, and
Additional risks: considers this in the calculation. Candidate will also
• Injuries create buckets for their brainstorming to provide
• Shoplifting, theft structure.
• Vandalism
• Focus on popular stores (less time spent window shopping) Best
Candidate is highly creative in their brainstorming. For
Following the brainstorming session, provide the candidate with the following: calculation, notices that new time of 1h20mins is 4/6
of 2 hours, therefore the breakeven for spending
• Average time spent at the mall would decrease to 1 hour 20 minutes would be 6/4 of $40 = 60$. Since $63 is higher, store
• Average amount spent would increase by $63/shopper/hour revenues will increase overall. An excellent candidate
will specify: by 5%.

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 Case #09 – Electric Mall Scooters Written by Nico Vougas, HEC MBA 2020

Recommendation INTERVIEWER GUIDE

Good
The candidate should be able to conclude that the client should proceed with the partnership and mention Candidate should take a brief moment to collect their
some of the risks specified earlier. thoughts and articulate a structured recommendation,
using insights taken from the case analysis
Good next steps could include:
Better
Candidate should offer specific quantitative evidence
• Finding the optimal charging locations of what could be gained if recommendations are
followed
• Estimating dispatch quantity
Best
• Optimizing the layout of the mall stores map based on consumer preferences Candidate offers a compelling and creative argument
that sums up items discussed as well as risks and
• Finding creative new ways to monetize this new partnership next steps not yet identified, as a means of continuing
the conversation at a future date.

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 Case #10 – Technology Takedown Written by Jon Wiedeman, HEC MBA 2020

Case Question Case Overview

Situation: Client is a professional services firm offering strategic consulting, software implementation, and business
Format: Interviewee-driven
process outsourcing services across a variety of industries. Recently the firm has been experiencing significant
pressure on its key segments from its largest competitor. Funds have been allocated towards a competitive take-down Difficulty Level:
strategy, and the CEO has approached you to understand which segments should be targeted and how.
Topic: Competitive Strategy
Industry: Technology Services
Clarification Concept(s) Tested: Information synthesis, driving to

Business: the solution, industry knowledge

• Consulting: Providing strategic advice on business issues. Assume all clients pay on a “time and materials” basis
(aka hours per consultant).
• Software Implementation (SI): Implementing enterprise software like SAP, Oracle onto the systems of clients.
Assume all clients pay on a “time and materials” basis (aka hours per consultant).
INTERVIEWER GUIDE
• Business Process Outsourcing (BPO): Taking over back-office or non-core business functions, like accounting, • Interviewee should take time to clarify key objective.
IT, procurement etc and managing these processes for clients in low cost centers overseas. Assume all clients pay Revenue gained is good, revenue taken from this key
on a “time and materials” basis (aka hours per consultant). competitor is better.
Industries: Financial Services, Healthcare/Life Sciences, Telecommunications, High-Tech. Assume all services • Interviewee should take time to clarify what “segments”
provided are within these industries. means. Confirm both service (consulting, SI and BPO)
Objective: Client is interested in revenue generation, and taking revenue away from its key competitor. and industry are relevant.
Time: Fast as possible • Service types should be clarified. These may be
Geography: Europe unnatural concepts to the interviewee, but a basic
Other: Competition is highly fragmented except for our client and this key competitor, who each have ~1/3 of the total understanding will suffice.
market. We can assume all professional services firms in this market provide each of the three services. • Some sense of the market could be clarified, such as
geography or competition, though only a broad sense.
Detail should come in the analysis phase.

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 Case #10 – Technology Takedown Written by Jon Wiedeman, HEC MBA 2020

Sample Framework INTERVIEWER GUIDE

Good
Candidate should create a structure that is able to
Grow revenue through key competitive segments target each segment combination. Service and
industry cannot be targeted in isolation.

Better
Consulting SI BPO
Candidate should consider that both revenue
FS Health Telco Tech FS Health Telco Tech FS Health Telco Tech opportunity and ability to access that revenue are
relevant to deciding each segment.

Best
Ideal structure includes consideration for the
competitive impact on any particular growth in
revenue, and offers valid insights on possible
Opportunity Feasibility feasibility questions. “Likelihood to Win” could be used
as a concept rather than feasibility. Risks may play a
role if presented well.
Segment Competitor Strategic
Capital Capacity Expertise
Size Share Fit

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 Case #10 – Technology Takedown Written by Jon Wiedeman, HEC MBA 2020

Exhibit 1 – Industry Data INTERVIEWER GUIDE

Distribute Exhibit 1 to the candidate if/when asked about industries. Good
• If candidate asks for growth in High-Tech, assume all industries are currently growing the same. Candidate should clear the slide by introducing it and
Candidate should then disregard High-Tech given its significance as a market and to the players. confirming understanding of it. Candidate should point
out difference in market size by industry, and
recognize that the competitor may be stronger in the
largest industry, FS.

Better
Candidate mentions that winning in FS could cause a
hit to competitor, as was asked in the objective. Also
recognizes opportunity to calculate firm revenue and
therefore industry revenue for both Client and
Competitor (given reported share of 1/3 total market
which consists of these four industries).

Best
Candidate suggests a mismatch of strength in two
largest industries, FS and Healthcare, and considers a
hypothesis of taking action to 1) play to the strength of
Health and 2) address weakness in Financial
Firm revenue: $90B each (1/3 of $270B total market size) Services. Drives to the answer by asking how Service
Client segment revenue: ~30B in FS, ~27B in Health, ~32B in Telco type might be represented within each of these
Competitor segment revenue: ~40B in FS, ~18B in Health, ~31B in Telco industries or by asking for further information on
performance within these industries.

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 Case #10 – Technology Takedown Written by Jon Wiedeman, HEC MBA 2020

Exhibit 2 – Competitive Performance INTERVIEWER GUIDE

Distribute to candidate Exhibit 2 when asked about performance against the competitor, or Good
asking about Services/Industry performance following Industry exhibit. Candidate should clear the slide by introducing it and
• If candidate does not draw the connection between SI and FS [see Best], ask “What do you make of the confirming understanding of key information, namely
fact that our win rates are lowest in both SI and FS?” that this is data just for deals in which client and
competitor went head to head. Recognizes the
different win rates by segment and highlights SI and
FS losses as an issue to address.

Better
Candidate is able to draw key learning that Client is
performing best in smallest segments and worse in
largest segments.

Best
Candidate draws a connection between the previous
exhibit and this one, suggesting that FS is likely to be
heavily SI based work and Healthcare is likely to be
heavy on BPO. Adds to previous concept of playing to
strengths (Healthcare, BPO) and addressing
weaknesses (FS, SI).

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 Case #10 – Technology Takedown Written by Jon Wiedeman, HEC MBA 2020

Brainstorm Solutions INTERVIEWER GUIDE

Request candidate to brainstorm possible ways to improve offerings in FS/SI and in Good
HealthCare/BPO Candidate offers logical solutions which show some
differentiation across service line (not exactly the
• It may be necessary to reaffirm for the candidate aspects of SI and BPO. If necessary, consult Industry same solutions for each
Overviews – Technology from the HEC Case Book to be able to guide the candidate.
• Ask candidate to provide solutions from a Services lens, with consideration or examples for the relevant industry. Better
Candidate buckets their brainstorming into relevant
Examples: categories which showcase structured thought and
• SI organization. Quality and Price are two possible
o Quality buckets. Product and Marketing may be another
▪ Better software partnerships (more software to cater to FS-specific needs) option. Candidate provides creative and sensible
▪ Better implementers (experienced in FS-specific implementations) solutions.
▪ Add-on services / software (integrating with risk models required by new regulations)
▪ Customer service (available in the odd hours bankers might need them) Best
o Price Candidate provides a depth of creative solutions
▪ Faster service which are creative, sensible, and show the ability to
▪ Cheaper implementers understand key drivers of SI and BPO based on
• BPO provided information. For instance, suggesting that
o Quality the client create platforms or frameworks to speed up
▪ Better support for admin tasks (to free up more patient time) and improve the quality of software implementations.
▪ Coverage of more processes (to eliminate errors and increase patient safety) Automating processes to improve BPO (with industry
▪ Customer service (better address complexity of payer/provider system) specific examples, like patient forms).
o Price

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 Case #10 – Technology Takedown Written by Jon Wiedeman, HEC MBA 2020

Recommendation INTERVIEWER GUIDE

Ask the candidate to come to a conclusion and present recommendations to the client Good
Candidate should take a brief moment to collect their
thoughts and articulate a structured recommendation,
Candidate should provide a recommendation that: using insights taken from the case analysis

Better
• Restates the objective of increasing revenue and taking share from the Candidate should offer specific quantitative evidence
competitor as to why segments were selected and what possible
• Highlights the key segment groups to address benefits could be gained by addressing them.
• Play to our strengths by improving BPO for Healthcare industry
Best
• Address weaknesses by improving SI offerings in Financial Services Candidate offers a concise and well articulated
industry conclusion that efficiently boils down the many
• Offers specific solutions for each segment: insights that could be taken from this case into a
• For BPO/Health do X, Y powerful, compelling story. Ample evidence should be
shared, and suggestions for next steps are critical,
• For SI/FS do A, B, C given the scope of the discussion.
• Names a few risks associated with recommendations or next steps that haven’t
been discussed in detail already

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 Case #10 – Technology Takedown Exhibit 1

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 Case #10 – Technology Takedown Exhibit 2

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 Case #11 – Neue Gallery Written by Otàvio Suriani, HEC MBA 2020

Case Question Case Overview

Situation: Neue Gallery New York is a small art museum located in the William Starr Miller House at 86th Format: Interviewee-driven
Street and Fifth Avenue in New York City. Neue Gallery specializes in 17th and 18th century European art,
especially German and Austrian art and design. The Gallery usually puts every year $1,500,000 into a fund. Difficulty Level:
This money goes towards various future expenses. Last year, however, revenues decreased, and the client Topic: Revenue growth
could only put 50% of what they normally put into the fund.
Industry: Arts
They have asked you to figure out how to address the lack of funding. What would you suggest? Concept(s) Tested: Product mix, pricing

Clarification
What is the Business Model of Neue Gallery and its revenue sources? What its Product Mix? INTERVIEWER GUIDE
• Product Mix/ Rev Sources: Tickets, Membership, Donations.
• Interviewee should take time to clarify how the fund
• Business Model: Tickets – box office at the Gallery; Membership – Annual plans; Donations – Corporate
typically receives its capital and therefore
and Benefactors Annual Donations.
understand that 750,000 in profit is the missing link
What's the fund for? How it is constituted?
• Interviewee should clarify how the museum makes
• The fund is constituted from 100% of the profits of the preceding year. It is used as the total budget for the
revenue, who it caters to
next year.
• Interviewee should clarify the objective and the
What is the Main Objective and the KPI? In which time span?
specific timeline to achieve
• Reinstate the lost revenues and, at least, in the next year, achieve $ 1,500,000 of investment in its fund.
What public is targeted?
• American and Foreign tourists and local New Yorkers.

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 Case #11 – Neue Gallery Written by Otàvio Suriani, HEC MBA 2020

Sample Framework INTERVIEWER GUIDE

Good
Turnaround current revenue losses and find new Candidate should create a structure which is able to
revenue sources analyze each of the revenue drivers to understand
which has been lacking. For those revenue drivers,
candidate should comment on price, volume and mix
as areas to address.
Current Revenues Root Causes Options
Better
Tickets, Membership, Donations Demand Current Revenues Candidate should consider external/market factors for
What is the market size? What is Tickets: Decrease Price; increase why revenue drivers may be suffering if product
What is the revenues mix? What is offering hasn’t changed. Customers, competitors and
the market growth? Who are the promotion.
the total volume of sales
key players in this market? market health are all viable.
(quantity)? Membership: Increase
What are Neue’s current market
attractiveness; Create new options.
What are the prices? shares? What are the prices of the Best
competitors? What are the Donations: Increase share of wallet Candidate identifies the opportunity to create new
What is the share in the total
Channels from the competitors? of donors; Improve Donor’s revenue streams in addition to fixing current ones, and
revenues from each product?
benefits.
Supply presents their structure in a succinct and clear way.
How are these factors evolving
Opening Hours? New Exhibitions? New Revenues
over time?
Appeal of the Current Collection? New revenues options: Museum
Customer Preferences store; Restaurant; Merchandise;
Rent spaces for events.
Price; Costumer Experience;
Distribution; Promotion; Brand.

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 Case #11 – Neue Gallery Written by Otàvio Suriani, HEC MBA 2020

Exhibit 1 - Analysis INTERVIEWER GUIDE

Good
Distribute Exhibit 1 to the candidate when asked about each revenue stream Candidate should clear the slide by introducing it and
confirming understanding of it. Candidate should realize
Year 1 Tickets Membership Donations Total that revenues have declined across the board for an
Revenues ($) 666.667 666.667 666.667 2.000.000 overall drop of 50%, thus amounting to the lost $750k in
profit. Candidate should point out that prices haven’t
Quantity 100.000 333 5 changed, however fewer people are buying tickets, fewer
Price ($) 6,7 2.002 are buying memberships. Additionally donations have
Profit (75%) 1.500.000 remained the same in quantity but have decreased in size
significantly.

Better
Candidate should highlight that profits are quite high, and
Year 2 Tickets Membership Donations Total
have remained so, suggesting that costs are not a
Revenues ($) 333.333 532.800 133.867 1.000.000 significant problem. Candidate might suggest the
Quantity 50.000 266 5 donations have a higher profit due to preferred tax
treatment.
Price ($) 6,7 2.000
Profit (75%) 750.000 Best
Candidate drives to the answer by offering possible ideas
for what may have caused this drop. Recognizing that
each revenue driver was hit, identify that market conditions
Possible takeaways: are likely to have played a role.
• Quantity is a problem. Price may still be addressed.
• Market sizing for tickets and market share would help size opportunity to fix revenue drivers
• Supply issues may be relevant: ex. opening hours

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 Case #11 – Neue Gallery Written by Otàvio Suriani, HEC MBA 2020

Market Sizing - Analysis INTERVIEWER GUIDE

Good
Ask candidate to size the market for museum-goers to identify what % of the market the Candidate should set out a reasonable process for sizing
museum is capturing. the market. Top down is preferred given the broad
Provide the candidate with specific numbers found below only as asked spectrum of people who may be clients.

Better
Mkt Size People % of Museum goers [Link] Times per year Museum Tickets Avg $ Total Mkt Size ($) Candidate should consider the opportunity to go multiple
times to the museum, as well as the likelihood to go as a
NYC 9.000.000 25% 2.250.000 6 13.500.000 4 54.000.000,00 member for frequent attendees versus individual tickets.
Tourist 60.000.000 40% 24.000.000 1 24.000.000 4 96.000.000,00 Math is strong with fair assumptions/estimates
Mkt Size 150.000.000,00
Mkt. Share year 1 1,3% Best
Candidate identifies the insight that the museum has
Mkt. Share year 2 0,67%
captured a very small portion of the market and recognizes
the connection to this based on the niche content offered
there. Ideally the candidate considers other logical reasons
Following the market sizing, ask the candidate how many additional tickets would have to for why share is so low. Comes to correct answer of how
be sold to achieve the client’s objective. many tickets must be sold, given 75% profit, to fill in gap of
$750k.

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 Case #11 – Neue Gallery Written by Otàvio Suriani, HEC MBA 2020

Recommendation INTERVIEWER GUIDE

Good
Candidate should take a brief moment to collect their
thoughts and articulate a structured recommendation,
Candidate should provide a recommendation that: using insights taken from the case analysis

• Restates the specific goal of creating $750K in profit by addressing revenue opportunities Better
Candidate should offer specific quantitative evidence
for the museum
of what could be gained if recommendations are
• Provides growth solutions which are backed by case analysis including ways to followed
• Increase attendees/members with the same supply of content/hours
• Increase supply of quality content or open hours Best
Candidate offers a compelling and creative argument
• Increase price
that sums up items discussed as well as risks and
• Increase new revenue drivers (merchandise, renting space for events etc) next steps not yet identified, as a means of continuing
• Names a few risks associated with any provided solutions the conversation at a future date.

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 Case #11 – Neue Gallery Exhibit 1

Year 1 Tickets Membership Donations Total

Revenues ($) 666.667 666.667 666.667 2.000.000
Quantity 100.000 333 5
Price ($) 6,7 2.002
Profit (75%) 1.500.000

Year 2 Tickets Membership Donations Total

Revenues ($) 333.333 532.800 133.867 1.000.000
Quantity 50.000 266 5
Price ($) 6,7 2.000
Profit (75%) 750.000

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 Case #12 – Sub Product Disposal Written by Ishan Vashistha, HEC MBA 2019

Case Question Case Overview

Situation: Your client is a mining giant with plants in remote locations. To power these plants, your client has relied on
Format: Interviewer-driven
thermal power plants for the past 10 years. These plants use coal as fuel and the burning of fuel leaves behind fly ash.
Your client requires your help in finding a cost optimum solution for fly ash disposal. Difficulty Level:

Questions to be answered: Topic: Revenue growth

• How will you find the market price? Industry: Mining
• What are the viable options for disposal?
• State a strategy including compliance to the regulation. Concept(s) Tested: Pricing, market entry

Clarification
Business: Client produces gypsum, majorly catering to cement industry. Current ROI of the group is 6%. There are INTERVIEWER GUIDE
two types of Fly Ash produced:
• 1) PCC: Can be sold as it is used in the production of other products such as bricks, cement, roads, etc. • Interviewee should take time to clarify what fly ash
• 2) Pond-Ash: Must be paid for as no one wants to buy it and there only one way of disposal: land fill, which has to is and possible ways it can be disposed.
be paid for • As a raw or waste material, it would be fair to ask if
it is a commodity priced by the market
Market: The area surrounding has enough demand for PCC. No one in the company knows current market price for • Given the prompt about regulation, further
these items. Poor market conditions till last year, however growth expected in next years due to new import clarification is needed to understand what that
regulations. regulation is and how it impacts the client.
Regulations: As per the recent notification from environment protection:
• 40% of the PCC fly ash has to be distributed free of cost & 60% can be sold at market price
• 20% of production has to be given free of cost in case of open market operations being conducted for fly ash
disposal

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 Case #12 – Sub Product Disposal Written by Ishan Vashistha, HEC MBA 2019

Sample Framework INTERVIEWER GUIDE

Good
Candidate should create a structure that offers at
least two sensible methods of disposing fly ash.
Dispose Fly Ash
Better
Candidate recognizes the opportunity to re-use fly ash
for cement creation, given the firms connection to the
cement industry.
Auction / Tender Direct Selling Re-invest
Best
Candidate offers a depth of insights into the specific
Financial Viability Risk Financial Viability Risk implications (income, viability, risks etc) for each
Financial Viability Risk
option. Structure may not include as much detail as
sample structure, but the candidate is able to
• Price • Cost • Price • Cost • succinctly articulate points similar to those noted.
• Price Cost
• Access • Access • Talent
• Volume • Volume • Volume • Capacity
• Customer
• Competition

Note:
Auction refers to Releasing tender, where parties can bid/pledge online for a specific quantity
Direct Selling refers to company reaching out to parties who use fly ash to negotiate bulk deal
Re-invest refers to the client diversifying into cement production, as it is already a producer of gypsum which
serves for cement creation

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 Case #12 – Sub Product Disposal Written by Ishan Vashistha, HEC MBA 2019

Exhibit 1 - Analysis INTERVIEWER GUIDE

Good
Distribute Exhibit 1 to the candidate when asked about financial implications, data or Candidate should clear the slide by introducing it and
feasibility confirming understanding of it. Candidate should grasp that
If asked about access to capital or a discount rate, tell the candidate the bank will provide a loan at 5% APR and the Auction and Direct are no initial investment and why that is,
whole amount has to be paid at the end of 5 years. Till repayment the cement plant will be used as collateral to bank. compared to re-invest, as well as why re-invest provides
greater benefit in the future. Candidate should take the
initiative to recognize and act on the opportunity to analyze
options with solid math and estimations.

Better
Candidate should calculate quickly, with reasonable
estimations and keeping track of key prior information (like
what % can be used/sold. Should come to correct answers
using 5% discount rate (with simplified calculation) and
realize the long term benefit of the re-invest option.

Best
Candidate should take into consideration the current
To be calculated economy trend and how that could impact the ability to
by candidate. raise the initial investment required.
Allow estimations
and for candidate
to simplify
dicounting

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 Case #12 – Sub Product Disposal Written by Ishan Vashistha, HEC MBA 2019

Recommendation INTERVIEWER GUIDE

Good
Ask the candidate to come to a conclusion and present recommendations to the client
Candidate should take a brief moment to collect their
thoughts and articulate a structured recommendation,
using insights taken from the case analysis
Candidate should provide a recommendation that:
Better
• Restates the three main objectives of identifying the optimal method of disposing fly ash, Candidate should offer specific quantitative evidence
of what could be gained if recommendations are
pricing the ash, and acting within new regulations. followed
• Provides solution backed by evidence to support the re-invest option to best achieve all
three objectives Best
• Greatest profit over the 5 year period Candidate offers a compelling and creative argument
that sums up items discussed as well as risks and
• Best solution for long term next steps not yet identified, as a means of continuing
• No pricing ambiguity the conversation at a future date.
• Avoids issue of having to distribute portion of ash for free
• Names a few risks associated, including the set up and execution of product
diversification given market conditions

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 Case #12 – Sub Product Disposal Exhibit 1

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`8
THANK YOU

Image:
HEC Paris
Career
Center 137
 9 ACKNOWLEDGEMENTS
THANK YOU

Thank you to everybody that collaborated and made this new version of HEC Case Book possible.

Specifically we would like to mention the extraordinary collaboration of our Case Creators: Eduardo Ortiz,
Matteo Loiacono, Nico Vougas, Otávio Suriani and Ishan Vashistha.

Also a massive thank you to Edgar Ochoa, Evan Helmeid, Dominique Christiansen, Mauricio Mastroprieto,
Noémie Escaith, Abhinav Garg, Janika Naust, Joaquin Marcano, Stefanos Sinis, Nefé Etomi, Oliver
Montas, Apurv Chaturvedi, Deepa Srinivasan, Gustavo Agreda, Michael Paolillo, Priscilla Loh, and Lorenzo
Matteo for sharing their expertise in the Industry Overviews. Your experience and insight has blown us
away.

To Harsha Singhraj, Matthieu Viel and Pierre Njeim for sharing their case openings and insights. To Nico
Vougas and Sumeet Pai for providing us with the best tips and tricks to improve our Networking skills. To
Willie Zhou for her design talents, and to Maria Les and Antoine Conan for contributing however and
whenever needed. Without their effort and dedication this would not have been possible.

We would also like to thank our S17 former classmates for creating the first HEC Consulting Club Case
Book which stood as a firm foundation on which we created this new version: Benoit Savignac, Yanji Wang,
Ankit Agarwal, Ana Janine & Mahendra Suradkar.
138
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 Disclaimer
HEC MBA Case Book is built for educational purposes only and is not for resale.
Figures and business situations found in the book are fictional and are not designed
to represent reality.

This Case Book is meant to supplement and help structure candidates’ thinking and
training about the consulting recruiting process. Its contents reflect the authors’ best
thinking but do not claim to be universal truths held by all firms and all interviewers in
the consulting industry.

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