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Business Case Studies
A 'case' is a scenario modelled after a real business or
management problem. The idea is to test a candidate's abilities
in some or all of the following areas:
- listening skills
- analytical and reasoning skills
- ability to organise and present information and hypotheses
- quantitative skills
- ability to manage ambiguity
- professional poise and ability to perform under pressure
- understanding of basic business and economic principles
If that all sounds a little daunting, take heart from some
advice once offered by Deloitte Consulting: "The
case study can be viewed as either an ordeal to be endured,
or as a golden opportunity to shine."
Who uses this style of assessment?
Typically, management consulting firms specialising in strategy
work use case-style interviewing. This has the benefit of offering
candidates a sense of the type of work that their consultants do,
while allowing the employer to assess the competency levels of
candidates.
However, case style interviewing or assessment activities can
be used by any employer who is looking for strong problem-solving
competence. As a result, you may also experience similar
assessments when applying to graduate positions with finance,
banking, manufacturing or engineering companies, for example.
In what selection environments are they used?
It is possible that you may encounter case questions individually,
during an interview that you have been invited to.
Alternatively, case questions may form one activity at an
assessment centre,
where they can help to evaluate how well candidates exhibit
the skills and qualities desired by the employer, while working
as part of a group or team.
What types of case questions are there?
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Classic business situation questions are used to see
how much general business knowledge candidates have and how
logically they can apply this knowledge to a common business
problem. There are several types of business questions which
could be posed, for example profit/loss, organisational
structure, or marketing scenarios. This style of question will
usually be answered verbally by the candidate and will often
be structured in stages. Your interviewer will probably draw
on his or her own real, client experience to steer you through
the scenario. An example of a business situation might be:
"An airline finds that, while its revenues are at an all
time high, the company is still operating at a loss. What is
going on?"
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Brain teasers are logic questions that may be used to
gauge creativity and problem-solving skills. Examples of this
type of question might be: "Why are manhole covers round?"
or "What will be different if, in the future, consumers
have to pay for every drop of drinkable water piped to their
residence or business?"
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Guess-the-numbers are questions for which a candidate
needs to use both logical deduction as well as quantitative
skills. An example of such a question might be: "How big
is the market for golf bags in Australia?" or "How
many divorces take place nationally in any given year?"
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Graphic interpretation questions are favoured by
certain strategy firms, as this mirrors a method of
presenting business data that is preferred within their
organisation. Typically, your task will be to review and
interpret data presented as a bubble chart, or using
another form of graph.
What should I consider when answering a case question?
Your goal in answering this kind of question is to demonstrate
your ability to solve a problem. It is not important to reach
a correct answer. Indeed, in many cases, there may not even be a
single, right answer.
As a result, there are several things you can do to approach a
case style question:
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listen carefully.
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summarise periodically, making sure you have fully understood
the problem(s) posed.
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ask a few questions to show your comprehension of the problem
and to obtain additional, useful information or to clarify
any points you do not understand.
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don't leap in with quick solutions.
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work through your answer out-loud, remembering to include
information that may appear obvious, as if you are creating
a road-map for the assessor to follow.
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don't just 'brain-dump' - take some time to think and don't
be afraid of silence!
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if you're genuinely stuck, work with the assessor to review
your progress to date.
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don't simply try to force-fit a business analysis framework
that you may have learned during your course.
And finally, be guided by this tip offered by Deloitte
Consulting: "What separates an outstanding performance
from simply a good one is not so much what you say, but how
you say it."
Answering business case study questions: our step-by-step approach.
1) Preparation
Bring a pen and pad of paper for rough note-taking. A confident
approach is paramount. Never show that you are
flustered - even if you feel that you are!
2) Analysing the case
(regardless of how structured your interviewers choose to make the
case question process, conduct this phase out-loud to demonstrate
fully your thoughts and analysis)
Understand the case:
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What is the broader context of the business problem?
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What are the facts? Which are key ones? Which are secondary?
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Given the facts, what are the unknowns? What assumptions
are you making about the case? Are these assumptions
consistent with the facts of the case? Are they
reasonable?
Diagnose the problem – establish a framework to test your hypotheses:
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What are the problems in the case? Of these, which is the
main problem? How do you know it is the main problem?
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What are the issues and factors which affect the problem?
Are they internal or external to the organisation? How do
they affect the problem?
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What course resources can you use? (analytical models,
material from your course etc.)
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Clarify for your interviewers whenever you are making
assumptions of your own, rather than re-stating facts.
Elicit additional information:
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Demonstrate initiative by posing intelligent, probing
questions to your interviewers - just as you would with a
corporate client.
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Listen and think carefully before formulating possible
solutions.
Develop and analyse alternative solutions:
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What are some possible solutions to the problem? What are
the theoretical groundings of each?
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What are the strengths and weaknesses of each solution?
How do they compare? Do they offer long-term or short-term
solutions?
3) Organising your analysis of alternatives so that it
is clear and systematic
Make recommendations:
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Based on your analysis, which is the best solution? Why?
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What is the theoretical grounding of your recommendation? Is
it justified by your previous analysis?
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Is your recommendation feasible? How can it be implemented?
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If you need to make more than one recommendation to
address separate issues, are your recommendations
complementary? Prioritise them with a view to implementation.
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Are your recommendations presented from the client’s perspective?
4) Presenting the analysis
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In order to test your ability to communicate, you may need
to summarise your conclusion as if you were recommending
it to a client.
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You may additionally be required to make a formal (stand-up)
presentation of your recommendations.
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Ensure that you are able to express clearly to your audience
the central ideas of your conclusions and have clear supporting
arguments.
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Similarly, ensure clear presentation and logical structure
for any written recommendations.
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Be prepared to admit possible flaws in your reasoning.
Further Information, Links and Samples
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