Interviewers will often give you sufficient information to assess the impact on volume with a price adjustment and expect you to make the calculation.
Break-Even Analysis can get more complex, as there are microeconomic and macroeconomic considerations that can change both the Fixed and Variable Expenses, but the basic concept is an important one; therefore you will likely come across some form of Break-Even Analysis in Consulting Case Study interviews.
Use this information to determine growth rates. Break-Even Analysis is often applied when deciding whether to develop a new product or make a capital equipment investment, as well as helping in making decisions around how to price products and service and the number of units to produce.
When you Consulting case study frameworks instant structure or when you are not sure which approach to use, breaking down factors into external and internal groups is a good place to start.
How do you value a company? We also recommend this training guide in general to anyone who is interested in advancing their Finance and Accounting skills—particularly when it comes to Corporate Valuation.
The CEO would like you to assess the industry landscape of the infant foods business in Western Europe. That being said, a basic-to-moderate understanding of the Income Statement, Balance Sheet and Statement of Cash Flows, and how they work together, is very relevant to many interviews.
You always want to end the case interview with a recommendation and discussion of alternatives to your recommendation, therefore being efficient with your time is critical. Likewise, the lower the absolute value of Demand Elasticity i.
The ability to draw frameworks is only relevant to the candidate-led format. What is Case Interview Frameworks? Core Concepts and Structure Scenario: Profitability Optimization In both good and bad economies, companies continually seek to optimize their Revenue model and their Cost structure.
The steps to calculate the LCV are as follows: Profitability has remained steady but the CEO has noticed from reading industry annual reports that two publicly-listed competing ski equipment manufacturers have meaningfully higher profit margins and have also been increasing their top line Revenue.
Collectively, is the whole more than the sum of each individual company? It works both for physical products as well as services. The bottom-left corner is consider closing. Promotion is about how the product is marketed, e. It is also worth knowing the four steps in the Product Life Cycle Curve, as the concept could come up in a hypothetical product case.
The more frameworks I know, the better! The client has determined that profitability margins have been or are projected to be declining and has requested that you analyze the causes of this decline and put forth recommendations to reverse it.
Here is our ultimate guide to the business case frameworks for consulting case interviews. The CEO would like you to determine what is causing the profitability decline and suggest a strategy to reverse this trend. Elasticity Supply or Demand Elasticity is a concept from microeconomics that describes the tradeoff between Quantity and Price.
Along with its applicability is its unfortunate generic nature.
Comprehensive frameworks Comprehensive framework No.Before we look at individual Cases, it is important to begin by looking at analysis frameworks that commonly can be used to address Case Study questions.
In this chapter, we will outline some of the core frameworks and some additional Consulting concepts that are important to grasp and will form. Here’s the download link to a pdf file of the case interview frameworks that I used to get my 7 consulting job offers – including McKinsey.
If you’ve done any research on case interview frameworks, you’ll find that my approach is a bit different than what you might see in books as guides written about.
“Case Interview Frameworks” is one of the most searched phrases in consulting prep. Indeed, it’s one of the core concepts in case interviews that every candidate should understand really well. Simply put, case interview frameworks are like standard templates, used to structure and break down common business problems.