common case study frameworks

Top 10 Case Interview Frameworks: Beginner Mistakes

“Which framework to use?” is probably among the most common questions popping up in a candidate’s mind when confronting a case.

This definitive guide will not only answer that question by introducing a few common frameworks, but also tell you HOW to use those frameworks more effectively during case interviews , and what pitfalls you should be aware of.

Table of Contents

Case interview frameworks – Overview

What are case interview frameworks.

Case interview frameworks are templates used to break down and solve business problems in case interviews. A framework can be off-the-shelf or highly customized for specific cases; it can also be tailored for certain functions/industries, or versatile enough for general problem-solving.

Common case interview frameworks include:

• Profitability Framework
• Business Situation Framework
• McKinsey M&A Framework
• 4P and 7P Frameworks
• Porter Five Forces Model

External vs Internal

Qualitative vs quantitative.

• Cost vs Benefits
• 2×2 Matrix (e.g.: BCG Growth-Share Matrix)

SWOT Analysis

All of these frameworks will be discussed later in this article.

During a case interview, you use consulting frameworks to break down the problem into smaller pieces through an issue tree and test each branch to see if the root-cause is in there. If a branch indeed contains the root-cause, you break it down further. Rinse and repeat until the root-cause is identified.

The big part of problem solving is about breaking down the problem in almost every step of the case.

What should I keep in mind when using consulting frameworks?

Templates should be treated as guidelines, and not strict rules . The same applies to case interview frameworks.

In the past, case interviews were much more predictable, and frameworks were more applicable. However, nowadays, case interviews are more similar to real business problems, where frameworks need a lot of customizations (you’ll see this word repeated a lot in this article) to be useful.

In fact, the whole consulting industry exists on the basis that consultants can customize theory to real, difficult business situations and produce positive results; nobody pays hundreds of thousands of dollars for them to recite a textbook – any college freshman can do as much.

That’s why in my Case Interview End-to-End Secrets Program , I don’t teach candidates to use frameworks – instead, the focus in on the fundamentals of case interview (problem-solving and business intuition) as well as the tips and techniques for instant performance improvement.

How can I use consulting frameworks effectively?

Here’s a problem with case interview beginners – they tend to go straight for the frameworks, before even knowing the basic mechanisms and principles of case interviews.

If you are one of those beginners, you must first grasp the basics of case interviews – the fundamentals of case interview problem-solving, the issue tree, and the MECE principle. I have written extensive, separate guides on these topics, but for starters, I advice you to read this Case Interview 101 comprehensive guide. 

Busting case interview framework myths

Myth 1: “the more frameworks i know, the better”.

Before we proceed with the popular frameworks in consulting and case interviews, here are four huge myths about frameworks you should steer clear of.

Spend your time learning to draw customized frameworks/ issue trees instead. Case interviews are getting progressively more realistic and less conforming to specific frameworks, so trying to memorize dozens of frameworks is of no use.

Additionally, you should attend to the qualitative side of things, to deeply absorb each framework and its use; skimming the surface will come back to bite you later.

Myth 2: “There must be a framework out there that fits this case”

Ready-made frameworks CANNOT cover all kinds of situations. Even regarding the ones covered, existing frameworks are often “okay-fit”, but not perfectly fit.

Just create a framework/issue tree yourself. Nobody deducts your points for not using a ready-made tool, they even give you points if you can customize it.

Myth 3: “The fancier the framework, the more impressed the interviewer”

You are definitely not wooing anyone by being fancy-schmancy here. Nobody cares about your shiny frame if it does not fit with the picture.

Consultants are very practical and result-oriented people ; what impresses them are candidates who really know what they are talking about, and actually produce good results.

What’s worse is that you also run the risk of appearing superficial; it’s not difficult for consultants with years of experience in the field to fully expose your bluffing. If that happens you may as well say goodbye to your chance of getting hired.

Myth 4: “Knowledge of frameworks is irrelevant in interviewer-led cases”

The assumption underlying this myth is that in interviewer-led cases , the candidate is not the driver of the case, so he or she does not need to actively break down the problem.

This cannot be further from the truth. Many questions in interviewer-led cases are about frameworks/issue trees (“What factors would you consider to solve this problem?”).

Even with other question types you still need to structure answers like a mini-case. Appropriate knowledge of frameworks, as such, is still a MUST.

Five common case interview frameworks

Profitability framework.

Profitability is the most common problem type in case interviews – that means the Profitability Framework is the first one to master for every prospective consultant. You have to absolutely nail it every time, there’s no way around it.

In case interviews, the Profitability Framework is used to mathematically break down the problem, before switching to more qualitative frameworks to devise solutions.

Most of the time, the framework looks like this:

What’s so good about it?

• Firstly, the Profitability Framework is a surefire way to draw a structured issue tree , as the framework is fundamentally MECE.
• Secondly, this framework is grounded in a simple mathematical basis – there’s no confusing qualitative concept to get lost in; heck, “revenues minus costs equal profits” is common sense. That’s why the Profitability Framework may as well be the easiest framework ever devised by humankind (or consultant-kind).

Are there any shortcomings I should be aware of?

• The Profitability Framework is generic; it may not reflect the nuances within the business enough to draw insightful conclusions. In businesses with wide price ranges, for example, just the total sales volume and average unit price do not tell you much.
• To extract more insightful information, either drill down quantitatively by introducing revenue/cost components not expressed in the basic framework (e.g.: revenue by product), or combine it with a qualitative framework.

Business situation framework

This is an extremely versatile template you can use in nearly every case, so make sure to learn it well. It’s not even a “should”, but a “must”.

In my video , I referred to the Business Situation Framework by the more tell-tale “3C & P”, based on it being derived from the famous 3C Framework. These four letters stand for “Company, Customers, Competitors, Products” – areas that the framework analyzes to yield solutions.

• The one big advantage of the Business Situation Framework is its comprehensiveness – covering four crucial internal and external factors in business strategy.
• This framework is quite flexible – you can use it as a template to draw customized issue trees for all kinds of cases. In our video, I demonstrated this by applying it to solve an HR problem.
• The very same comprehensiveness making the Business Situation Framework flexible, also makes it generic, hence the need for extensive modifications; in many cases (the one in our video, for example), not all four components are relevant.
• It is not a beginner-friendly framework – it does not explicitly state which factors to consider under each main branch; newbies often end up in awkward situations, not knowing what to do next and thinking in a bottom-up manner.

How do you avoid that situation then? I’m inclined to say “practice”, but that much is obvious. A less obvious solution is to equip yourself with some “ninja tips” by learning how each C and P is usually segmented, although again I have to emphasize that it’s vital to maintain a flexible mindset.

McKinsey M&A framework

I absolutely love this one because it works in almost every single M&A case.

There isn’t an official name for this framework, but since it is used by McKinsey consultants when confronting an M&A issue, I’d just call it the “McKinsey M&A Framework”.

The framework assesses a proposed M&A on three dimensions: the stand-alone value of each involving companies (values, strengths, weaknesses, etc.); their synergy, i.e. will the two companies combined be greater than the sum of its parts; and other factors, such as feasibility, culture, legal issues, etc.

• Firstly, the segmentation of stand-alone values and synergy is intrinsically MECE , helping the candidate cover all possibilities – every value of each company must fall into one of these categories.
• Secondly, the framework prompts the user to actively look for “Other factors”, increasing its suitability in unique circumstances.

Are there any shortcomings I should be aware of? 

• The framework does not tell you what to look for in each branch, especially in the “Other factors” branch; this ambiguity shouldn’t be too much of an issue for experienced consultants, but might prove troublesome for candidates.
• Again, as with the previous Business Situation Framework, having a few ninja tricks up your sleeves should help you avoid getting stuck, just don’t rely on them too much.

4P / 7P Marketing Mix

This one is perhaps the single most popular framework in marketing. In case interviews , the 4P/7P Framework is used to formulate and implement marketing strategies for the supposed client, such as in competitive situation or market entry cases.

The original Marketing Mix covers four aspects – Product, Price, Place, and Promotion – thus, “4P”; note that “Place” does not pertain to any physical location, but the channel used by the company to deliver its products to its customers.

When services are involved, the mix becomes 7P; the new additions are: People – those performing the services; Process – how those services are delivered to the customers; and Physical Evidence – the visible, physical clues about the services (think of decorations inside a restaurant).

• The best thing about this framework is its sole focus on marketing, making it very efficient for situations where marketing is the primary/only concern.
• Both the 4P and 7P variants are inherently narrow in scope; candidates must always be mindful that they are not covering the big picture with this framework. Only use them to develop marketing solutions.
• The 4P Marketing Mix, specifically, is not even comprehensive enough for some tangible products, such as high-end fashion, where People, Process and Physical Evidence make huge differences.

Porter’s five forces model

Porter’s Five Forces Model is best used when candidates ask for the case context surrounding the client company; this framework helps them know what to ask.

Michael Porter’s model analyzes how a company’s Competitors, Suppliers, Customers interact with it, as well as how New Entrants and Substitute Products might threaten its place in the industry; it produces a snapshot of the relative power the business holds over its industry environment.

• The model’s coverage of the industry landscape is extensive, giving the candidate a vivid picture of the industry surrounding and interacting with the client in the case.
• This framework doesn’t give a clear answer as to what to do – that is its primary drawback; Porter’s model is not “deep” enough to answer such questions.
• The framework is not comprehensive enough for certain industries where political and legal issues, as well as complementary products, are major factors.
• Another thing to keep in mind: Don’t ever analyze a company with the Five Forces Model – the Five Forces Model describes the industry around that business, not the business itself.

Five mini-frameworks – All-purpose tools

These powerful mini-frameworks are probably the most under-appreciated problem-solving tools ever existed.

Mini-frameworks, like the larger frameworks, are also templates to break down information in a top-down, organized fashion.

Unlike their big cousins, however, these are almost never a primary or upper-most component of an issue tree. Furthermore, while common case interview frameworks are, to varying degrees, business-oriented, mini-frameworks are universal.

In this section, I’ll introduce you to five mini-frameworks I find most helpful in consulting case interviews. They feature prominently as supplements for larger frameworks in candidate-led cases , or stand-alone templates to answer questions in interviewer-led cases.

This is a quick and easy method to segment information about a particular entity. The internal branch concerns the inside of the said entity, such as functions within a company; the external branch describes anything outside that entity.

Here’s an example of this mini-framework as an adjunct to the Profitability Framework:

South Sea – a company specializing in bottled sauces – has found its profits going down badly for the past few years. They want you to find out what’s causing the problem.

You split their profits into revenues and costs; from the data provided, it seems like a revenue problem so you’re going into that branch first. How do you proceed?

Here, a quick check can be performed by splitting the factors causing the decline into two groups – external and internal, then ask the interview if the declining profits are also experienced by other American airlines; “yes” suggests an external root cause while “no” suggests an internal one.

This method of segmentation is primarily used in evaluations. By dividing items into two MECE groups, it reduces confusion and minimizes the risk of missing an important item.

For illustration, we again look at the packaged food company in the previous example:

Turns out, South Sea has quite a few internal problems, in both their production and sales functions. Coincidentally, Wilhelm International is looking to acquire South Sea. Wilhelm controls an extensive distribution network, so the South Sea management is quite interested in the deal.

It’s your task to assess whether South Sea should accept Wilhelm’s offer of acquisition or not.

For this task, I recommend using the McKinsey M&A Framework to break down the analysis into three branches: (1) South Sea’s stand-alone value, (2) its possible synergy with Wilhelm International, and of course (3) there must be an “Other factors” branch as well.

Within each branch, it’s possible to group items into quantitative (profits, growth rates) and qualitative (brand name, capabilities). This combination makes the analysis more MECE , and easier to work with.

Costs vs Benefits

This decision-making tool is pretty straightforward – if the benefits outweigh the costs, you go with that option. Otherwise, you’d be better off keeping your money under the mattress.

The Costs-and-Benefits analysis is a somewhat-business-centric twist of the omnipotent Pros-and-Cons. Both of these approaches work even better with weights attached to each evaluating criterion to reflect its impact.

Now, let’s check up on South Sea:

The acquisition is proven to be beneficial for both sides. With the sales problem solved, South Sea turns its attention to the production issue. The management considers replacing some technologies to improve product quality, but they are not sure if the investment will pay off.

How do you know if the investment is worthwhile?

A simple Costs-and-Benefits breakdown would suffice.

For benefits you have the financial gains to consider, as well as non-financial benefits such as improved brand image (because surprisingly, people love good food!).

2×2 Matrix

The 2×2 Matrix is a decision-making tool where options are examined using two criteria, each of which forms an axis of the matrix.

How do you apply this matrix in South Sea’s case, then?

Wilhelm International, after acquiring South Sea, is looking to push the sales of South Sea’s products using its distribution chain. However, South Sea’s product portfolio is quite large, and each product line differs greatly in terms of sales, branding, and market growth rate.

You must select which product lines to focus on.

The 2×2 matrix most famous in the business world, and also suitable for this case, is BCG’s Growth-Share Matrix, which uses market growth rate and market share as decision-making criteria. The position of a business on this matrix suggests whether to invest in, maintain, or discard that business.

SWOT stands for Strengths, Weaknesses, Opportunities, Threats.

This mini-framework is seldom used in case interviews and consulting work because it’s very generic; however, for a quick and easy evaluation of a company’s positioning within the industry context, the SWOT analysis works just fine.

In most case interviews, this is where you usually turn to the Marketing Mix or the Business Situation frameworks, but even a SWOT analysis may yield some insights.

Other case interview frameworks

Besides the ones we have covered, there are some other case interview frameworks and mini-frameworks worth looking into:

• Six Forces Model: a variant of Porter’s Five Forces, introducing “Complementary Products” into the analysis.
• Lauterborn’s 4C Framework: a more consumer-oriented variant of the 4Ps, designed for niche marketing.
• McKinsey 7S Framework: a framework used in McKinsey for analyzing organizational effectiveness.
• Ansoff Matrix (Product-Market Grid): a 2×2 matrix, designed for product-market strategizing.

Applying frameworks in case interviews

Here are my five rules to effectively implement frameworks in case interviews; if you follow these rules closely, you will absolutely nail the case.

Of these five rules, the first three are about getting the right framework, while the last two are about looking smart during interviews.

• Getting to know the case: “If you know your case and know your frameworks, you need not fear the result of a hundred case interviews” – always gather as much information as possible before and when you draw your issue tree .
• Bending the frameworks: don’t ever bend reality to your frameworks; bend your frameworks to reality; remove, add, or modify elements if necessary.
• Allying with the interviewer: ask the interviewer to help you break down the problem if you get stuck . How do you get him on your side then? By displaying overwhelming consulting traits .
• 13 Reasons why: “Why do you break down the problem that way?”, “Why do you want this piece of data?” – explain all your questions and decisions as if you stand before the US Congress, and before the interviewer asks you; consultants love accountable people.
• Frameworks-which-must-not-be-named: don’t ever explicitly say the names of the frameworks (“I’m going to use the McKinsey M&A Framework”); you would sound very rigid, bookish, or worse, arrogant; consultants don’t like big words without substance.

I’ll give you a brief case sample to see how these rules work in practice:

Interviewer: Our client today is a restaurant called BurgerQueen, located on US Highway 66. The restaurant has found its profits going down last year, your task is to find out the problem and give them a solution.

Candidate: Thank you for the very interesting case, I’m quite excited to solve it. Now, before we dive in,, I would like to playback the case to make sure that we perceive it the same way, ask a few questions for clarification, then announce my approach. Does that sound good to you?

Interviewer: Okay, carry on.

Candidate: Well, let’s see… Our client is a restaurant, on a highway, specifically, Route 66. Their profits have been going bad. I am to find the cause, and solve the problem. Am I getting it right?

Interviewer: Yes, you’re right.

Candidate: Thank you. Now I’d like to clarify the case, so I have 3 questions:

(1) I assume from the name that our client focuses on burgers, and probably other kinds of fast food. Am I right? (2) Does this restaurant have a specific target customer, like truck drivers? And (3) Is it part of a rest stop?

Interviewer: I’ll answer your questions: they sell burgers, but there are many other dishes as well – although mainly fast food; the restaurant does not have a specific target customer, their customers are drivers and travelers on the highway in general; they are part of a rest stop, but they do not own other facilities in the stop, just the restaurant.

Candidate: Great, thanks for the information. Now that we’re all on the same page, and the case has been clarified, I’d like to inform you of my approach. To eliminate this problem in the long run, I think it’s best to break down the problem using an issue tree, isolate the root cause in one of the branches, and gather information until we can draw an actionable solution. Is that approach okay to you?

Interviewer: That sounds good. Continue.

Candidate: To analyze this problem, I’m breaking it down into two sides: Revenues and Costs. Unless we have information pointing in the other direction, I’ll first hypothesize that the problem comes from the revenue side. May I have some data on the restaurant’s revenue during the past year, to prove this hypothesis?

Interviewer: Well, this year their revenue went down by about 40%, but the monthly revenues followed the same pattern as the previous year.

Candidate: Thank you for the data. It’s quite a sudden decrease. I think we can confirm that at least part of this problem comes from the revenue side; I’ll come back to check on the cost side later, now I’d like to go deeper into this revenue branch. Is that okay to you?

Interviewer: Okay, go on.

Candidate: Usually, revenue is divided into sales volume and unit price, but it wouldn’t make much sense for a restaurant with many different items on the menu. My limited knowledge of the food service industry is not exactly helpful, so to draw a more spot-on issue tree, may I ask how they segment the revenue in this restaurant?

Interviewer: Okay, here’s the answer: another way they segment the revenue in a restaurant is into “number of customers” and “average ticket size”, the latter being the purchase value per customer.

What are the key takeaways here?

You can see the candidate tried to gather information on the case through the playback and clarification steps; as a result, he correctly decided that the Profitability Framework is suitable for this case.

However, he quickly found out that the conventional “revenue = volume x price” isn’t too insightful, so he knew he needed to bend the framework.

Unable to find a good way to segment, he asked for help from the interviewer – note how he showed a relevant purpose for the request, and demonstrated that he at least made an effort – these are what we call “consulting traits”.

You should also notice that throughout this brief opening part, the candidate never explicitly mentioned the name of the Profitability Framework, and he always explained his choices before being asked.

Let's practice!

EXERCISE: Develop a 2-level issue tree for this case

The Megapolis City Council is looking to solve a major problem in the city’s traffic – for the last decade, the number of traffic accidents has been rising steadily.

Which factors would you look at, to tackle this problem?

This question apparently can not be answered using any aforementioned framework. In real life, consultants rarely use pre-defined frameworks to solve their client’s issues. Rather, they create unique frameworks based on the MECE principle specific to their problems.

There are few things you should bear in mind to shortcut the way to your own framework:

• Be as MECE or structural as possible.
• Use the issue tree to sketch your framework.
• Break down your problem in a top-down style.

Practice this step-by-step with any real-life issues.

Want to learn more? Join millions of others on our Case Interview End-to-end Secret Program .

Then, to receive personalized practice, you can book a coaching session with our experienced coaches from McKinsey, BCG, or Bain. They will quickly identify your areas of improvement and help you ace your interview.

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Profitability is the most common interview case types in MBB & you will most likely face one. Thus profitability framework is a method to solve profit problems

A case interview is where candidates is asked to solve a business problem. They are used by consulting firms to evaluate problem-solving skill & soft skills

An issue tree is a breakdown method of problems into multiple levels of subsets. It will isolates the root causes and ensures impactful solutions to the problem

Top 7 case interview frameworks (and how to create your own)

Today we're going to cover the top case interview frameworks, as well as how you can create your own custom frameworks. 

Understanding frameworks has always been critical for the 8,000+ candidates who we've helped with consulting interview preparation. 

And one of the first things you'll want to know is that you should AVOID using pre-made frameworks, like those recommended in Case in Point and in Victor Cheng's LOMS programme. But more on that later. 

Let's start with the list of top frameworks.

Top 7 frameworks for case interviews

• 1. Profitability
• 3. Porter's 5-forces
• 5. Market entry
• 7. Merger and acquisition

Don't reuse pre-existing frameworks

How to create custom frameworks, click here to practise 1-on-1 with mbb ex-interviewers, 1. profitability framework.

The   profitability framework   is the most basic framework in business analysis. It simply breaks down profit into its basic revenue and cost components and is commonly used to identify the root cause of profitability issues.

• Revenue   can simply be broken down into the Number of Units Sold x Price Per Unit.
• Costs   can be broken down into Variable and Fixed Costs. And Variable Costs can be further broken down into the Number of Units Produced x Cost Per Unit.

2. The 4Ps framework

The   4Ps framework   is widely used by company executives to design their marketing strategy. There are different variations of this framework, which is also sometimes referred to as the “Marketing mix” framework, but the 4Ps is the most common one.

This framework is commonly used when launching a new product or when reviewing the positioning of an existing product.

• Product : What are the key characteristics of the product sold? Key elements of the product definition could include: customer need fulfilled by product, product usage (E.g. who, where, how, etc.), good vs. service, product lifecycle (new vs. established), competing products and substitutes, etc.
• Price : At what price should the product be sold? Different considerations need to be taken into account here: the customer perceived value of the product, the price of competitive products, the customer price sensitivity, the cost of producing the product, etc.
• Promotion : Which promotion strategies should be used to sell the product? Key elements to consider include: promotion messages, media type (E.g. TV, social media, radio, etc.), best time to promote, competitors’ strategies, etc.
• Place : Through which channels should the product be distributed? Key elements to consider include: possible channels to distribute the product (E.g. in store, web, mail-to-order, etc.), customer expectations in terms of channel, requirement of a sales team or not, competitors’ strategies, etc.

3. Porter's 5 forces

Porter’s 5 forces  is a framework commonly used by CEOs to explore the competitive dynamics of industries. Indeed not all industries are structured the same way.

Some industries are really hard to get into (E.g. banking) while others have very low barriers to entry (E.g. newspapers).

Suppliers have strong bargaining power in some industries (E.g. high-end medical equipment) but little power in others (E.g. small milk producer), etc.

Understanding these dynamics is extremely important when you're considering entering a new industry or when assessing the competitive dynamics of the industry a company is already in.

• Bargaining power of customers : How much bargaining power do customers have? If there is only one buyer but multiple suppliers, then that buyer will be at a strong advantage. Key elements to consider here include: customer concentration (percentage of industry revenues from Top 3 buyers), customer price sensitivity, customer information availability, etc.
• Bargaining power of suppliers : How much bargaining power do suppliers have? Similarly to the previous point, if there is only one supplier but multiple buyers, then that supplier will be at a strong advantage. Key elements to consider include: concentration of suppliers (percentage of industry revenues to Top 3 suppliers), difficulty of switching from one supplier to another, differentiation between suppliers, etc.
• Threat of substitutes : What are the substitutes for the product and are they increasingly popular? As a reminder, water is a substitute for Coke while Pepsi is a competitive product for Coke. Key elements to consider here include: potential new substitutes, ease of substitution, evolution of customer propensity to substitute, etc.
• Threat of new entrants : How difficult is it to enter the industry for potential new players? Key elements to consider here include: regulation authorisations, capital requirements, economies of scale, network effects, etc.
• Existing rivals : How competitive are existing rivals in the industry? Key elements to consider include: number of competitors and their market shares, similarity between their products and products of the firm analysed, financial health of competitors, etc.

4. 3Cs framework

The   3Cs framework   is also commonly used to put together strategies for companies. As you will notice below, a lot of its components overlap with the Porter’s 5 forces.

• Customers : Who is the customer? Key elements to consider include: customer demographics (E.g. age, sex, income, etc.), customer needs, customer segments' size and growth rates, customer willingness to pay and price sensitivity, etc.
• Competition : What are the competitive dynamics? Key elements to consider include: competitors’ value proposition and brand, competitors’ market share and growth, competitors’ financial health, etc.
• Company : What defines the company? Key elements to consider include: product offering, profitability, core competencies, unique selling point, financial performance and resources, etc.

5. Market entry framework

The   market entry framework   is commonly used to make decisions on whether a company should enter a new market or not.

For instance, you could use it to decide if Starbucks should enter the Chinese market, or if Nike should enter the sports broadcasting business.

• Market : What are the characteristics of the market we are trying to enter? Key elements to consider include:   market size  and profitability, products already available in the market, intensity of the competition, heaviness of the regulation, etc.
• Client capabilities : Does the client have the right capabilities to enter that new market? Key elements to consider include: differences between the client's current market and the new one they are now targeting, number of times client has entered new markets and achieved success, other companies already in the new market, etc.
• Financials : Does it make financial sense to enter the new market? Key elements to consider include: current financial situation of the client, cost to enter the new market, ongoing costs once the market is entered, expected revenues and return on investment, etc.
• Entry strategy : How should the client go about entering the new market? Key elements to consider include: timing of market entry (now vs. delay), speed of market entry (test region vs. whole country), opportunity to buy competitor or do a JV, management approach (control from HQ vs. decentralise), etc.

6. Pricing case framework

Companies always face a difficult issue when launching a new product or service. What should its price be? The   pricing framework   is extremely helpful for answering that question.

• Cost-based : What price do we need to set to cover all our costs? Key elements to consider include: fixed costs and their allocation across products, variable costs and number of units produced / sold, profitability targeted, etc.
• Value-based : How much are customers willing to pay for our product? Key elements to consider include: price of the next best alternative to our product, features that make our product better than the next best alternative, value of these features, etc.
• Competitor-based : What is the competition charging for similar products? Key elements to consider include: available substitute products from the competition, price of these substitute products, value of our product vs. substitutes, etc.
• Overall strategy : Given the elements above, what should our pricing strategy be? Key elements to consider include: objective of the pricing strategy (E.g. high profitability or high market share), opportunities for upsell / cross-sell that should be taken into account (E.g. Kindle and ebooks), possibility to sell different versions of the same product (E.g. iPhone 13 and iPhone 13 Pro), etc.

7. Merger and acquisition framework

Finally, the   merger and acquisition framework   is used when companies are looking to acquire or merge with competitors.

These situations are not very frequent in a CEO's life, but they are highly stressful, which is one reason why consultants are often asked to support such initiatives.

• The market : What are the characteristics of the target company's market? Key elements to consider include:   market size  and growth, market profitability and intensity of the competition, market regulation, etc.
• The target : How attractive is the target to be acquired? Key elements to consider include: current and future financial position of the target, important assets or capabilities owned by the target, quality of the target's management team, target / buyer culture fit, etc.
• The buyer : What's driving the buyer to make the acquisition? Key elements to consider include: acquisition rationale (E.g. target undervalued, etc.), acquisition financing, buyer's acquisition experience, acquisition timing, etc.
• Synergies and risks : What are the acquisition synergies and risks? Key elements to consider include: value of individual and combined entities, cost synergies, revenue synergies, biggest risks of failure, etc.

Once you are generally familiar with frameworks, the question becomes: how do you actually use frameworks in case interviews?

There are a lot of opinions about how you should do this on the Internet. But the two main schools of thought are   Marc Cosentino’s Case In Point   and   Victor Cheng’s LOMS .

But both of these methods share the same flaw: they try to force pre-defined frameworks onto cases. In our experience, this is bound to produce average results because all cases are unique.

Not convinced? Let's cover each of these two popular methods in more detail. 

Why NOT to use the Case In Point frameworks

In Case In Point, Marc Cosentino attempts to classify case interviews into 10+ categories and then suggests that candidates should memorise a specific framework for each of them.

This is an interesting exercise as it exposes you to a range of business problems and helps you think about them in different ways. However, in our experience, learning 10+ frameworks is difficult and time consuming.

More importantly, in live case interviews, trying to recognise one of the 10+ case categories and then remembering the associated framework is a real nightmare!

Instead of focusing on solving the problem at hand, you end up trying to remember a framework that will not even perfectly fit the case you are solving. In our experience, the best candidates avoid this strategy.

Why NOT to use Victor Cheng's LOMS frameworks

In his LOMS programme, Victor Cheng advocates for a much simpler method and suggests you should only learn two frameworks: the profit framework for profitability cases, and a general framework for all other cases (Product, Consumer, Company, Competition).

The benefit of this approach is its simplicity. It gives you a starting point that’s easy to remember when you are putting a framework together.

However, in our experience, this approach has a fatal drawback. In practice, there aren’t that many profitability cases, and you basically always end up using the general framework.

Even if you adapt this general framework, it won't be perfectly tailored to the case you are trying to solve. More importantly, your interviewer will quickly realise that you are using a pre-made framework and that will reflect negatively on you.

Why to create custom frameworks instead

A good framework is a bit like a tailor-made suit: it is adapted to the problem you are trying to solve, the company, the industry, and it is also as   MECE   as possible.

If you use pre-existing frameworks, you run the risk of missing important elements of the specific problem you are trying to solve. In real life, consultants rarely use pre-defined frameworks. They are familiar with them, but they do not directly re-use them as-is on projects.

Instead, they create a customised framework or   issue tree  that addresses the specific details of each case.  To do so, they rely on conversations with their client as well as past experiences.

This might sound intimidating, but the good news is that creating custom frameworks is actually much simpler than you might think. 

Now, let's turn our attention to HOW you can create your own custom frameworks during case interviews. 

Here's a brief summary of the steps you'll need to take:

Summary - IGotAnOffer method (framework development questions)

• Step 1: Ask for time to gather your thoughts
• Step 2: Create the framework
• Extract the main elements from the case question
• Break down the main elements into components
• Step 3: Communicate the framework

Spin your paper around

• Begin with an overview

Highlight 3-5 considerations for each branch

Summarise your points, prioritise next steps.

Now let's cover these steps in more detail. We'll also be digging into a real case example below, in order to illustrate the framework creation process.

1. Ask for time to gather your thoughts

Regardless of the case you get, you should always ask your interviewer for some time to gather your thoughts, before you begin to develop the framework. 

This is a normal part of the interview process. Your interviewers will expect you to ask, and they'll almost always give you this time. 

But don't get carried away! 

For reference, you should only take 30-60 seconds to quietly think-through your framework. We recommend that you also sketch out your framework on a piece of paper during this time, as that will help you to organise your thoughts more clearly. 

Without practise, it's really difficult to estimate how long 30-60 seconds actually is, so we highly recommend that you practice this process with a stopwatch. This exercise will help you get a clear idea of how much time you're actually using. 

2. Create the framework

During that 30-60 second time window, you'll need to do the real work of crafting your framework. 

The essence of framework creation is actually quite simple. A framework takes the business situation presented in the case, and breaks it into smaller "bite size" pieces. 

By isolating the various components of a case, you'll be able to better identify the root cause of an issue, or find the best opportunities for improving the underlying business. 

And the best way to develop your framework creation skills is with practice on realistic case problems, so let's walk through an example together. 

Star Production case example

In this case we need to analyse the short-term profitability of a movie production company. So, you would begin crafting your framework by thinking about the different factors that would contribute to the company's overall profits.

The first two components of this framework are fairly straightforward: revenues and costs. That's because the profitability of any company is determined by a combination of their revenues and costs.

Then, we can further deconstruct both revenues and costs based on our knowledge (or perhaps some assumptions) of the movie production business. And as you break down the components further, it's important to consider the concept of MECE, which stands for Mutually Exclusive Collectively Exhaustive.

In simple terms, MECE means that you should aim to have a framework where the branches do NOT overlap with each other, and where the framework is comprehensive (i.e. no branches are missing). You can learn more about this in our separate   MECE guide . 

Now here's an example of what your draft framework might look like for the Star Production case: 

As you can see in the example above, we've broken down the revenues and costs into specific components that would make sense for a movie production business.

And we've used bullet points to highlight the information we would need in order to determine how each individual item contributes to the overall revenues or costs of the business.

For example, we would need to know the expected ticket sales, the average ticket price, and the share of the ticket revenue that Star Production would be entitled to, in order to calculate the total ticket revenue. 

Once you've drawn out a rough framework like the above example, your next task will be to explain your framework to your interviewer. 

3. Communicate the framework

Even if you created the world's best framework, it won't get you an offer if you're not able to explain it in a clear and structured way. 

Here's how we'd recommend you communicate your framework during your interviews:

Start by showing your interviewer the framework that you've drawn on paper. Having this visual structure will make it much easier to explain (and understand). 

Start with an overview

Before jumping into the details of your framework, you should start with an overview of the framework.

In our example above, you could simply explain that the profitability of Star Production will be determined by the expected revenues and costs of the business, which can be broken down into more specific categories. 

You should also tell your interviewer the order in which you plan to walk through each individual branch, so they'll know what to expect.  

Next, go through each branch of your framework and mention several considerations that came to mind while you were drafting the framework. 

For example, for the "upfront costs" branch of the Star Production case, you could explain that you'd want to find out what costs the company would incur before it can start releasing movies, like filming equipment, studio space, and post production expenses. 

And throughout your explanation of the framework, you should pause periodically to summarise your key points, and to check in with your interviewer. 

You're likely going to be covering a lot of ground in your framework, and you want to make sure that your logic doesn't get foggy in the details. 

For example, you could summarise the most important considerations that impact the revenues of Star Production, after you've walked through each individual sub-branch under revenues. 

Finally, after walking through your full framework, you should tell your interviewer the 2-3 next steps you would recommend, in priority order. 

There's a variety of ways you could rank next steps, but three good options would be based on importance, ease, or speed. 

Returning to the Star Production example, you could recommend the following next steps in priority order:

• Identify the biggest cost drivers.   Star Production's business model is focused on producing a high volume of low cost movies, so controlling costs will be essential to the profitability of the company. 
• Develop a production process that minimises costs.  Once the primary cost drivers are identified, we should develop a production process that keeps those costs as low as possible. 
• Look for opportunities to increase the hit rate.   Star Production is counting on a few box office hits to drive revenues. As a result, increasing the percentage of movies that succeed could be a big win.

Get MBB offers by mastering frameworks

To succeed in case interviews, you MUST be able to create and apply frameworks effectively. And i f you really want the best possible preparation for your case interview, you'll want to practise doing this in an interview situation, ideally with an expert consultant giving you feedback.

The IGotAnOffer team

Photo: Roberto Taddeo / IM

Hacking the Case Interview

Looking for a case interview cheat sheet or study guide to help you prepare for your upcoming consulting interviews?

Download our Case Interview Cheat Sheet and Study Guide , which covers all of the most important things you need to know. If you are looking to read the case interview cheat sheet in plain text, we’ve included all of the text below.

This case interview cheat sheet covers:  

What is a case interview?

What do case interviews assess?

What is the structure of a case interview?

What are the common types of cases?

What formulas do you need to know for case interviews?

What numbers do you need to know for case interviews?

What are some case interview tips?

If you’re looking for a step-by-step shortcut to learn case interviews quickly, enroll in our case interview course . These insider strategies from a former Bain interviewer helped 30,000+ land consulting offers while saving hundreds of hours of prep time.

A case interview is a 30- to 45-minute exercise that places you in a hypothetical business situation in which you and the interviewer work together to develop a recommendation or answer to a business problem.

• How can Walmart increase its profitability?
• How can Nike increase customer retention?
• How should Apple price its new smartphone?

A case interview assesses five criteria:

1.   Logical, structured thinking : Can you structure complex problems and ideas in a clear and organized way?

2.  Analytical problem solving: Can you analyze and interpret data to draw the right conclusions?

3.  Business acumen : Do you have a strong understanding of business fundamentals and good business judgment?

4.  Communication skills : Can you communicate clearly, concisely, and articulately?

5.  Personality and cultural fit : Are you a good fit for the work culture of the firm you are interviewing with?

All case interviews follow seven major steps:

1.  Understand the case background : Take notes while the interviewer reads you the case information. Pay particularly close attention to the context, company, and objective.

2.  Ask  clarifying questions : If necessary, ask 1 – 3 questions to clarify the objective of the case, understand the company better, or understand an unfamiliar term.

3.  Structure a framework : Structure a framework to break down the complex business problem into simpler, smaller components. A framework is a tool that organizes different ideas into major categories. Present your framework to the interviewer. Make sure that your framework is MECE .

M utually E xclusive: None of the parts of your framework overlap with each other

C ollectively E xhaustive: All of the parts of the framework account for everything you need to know to solve the case with no major areas missing.

4.  Start the case : How the case will start depends on whether the case is an interviewer-led case or a candidate-led case .

Interviewer-led case : The interviewer will be steering and controlling the direction of the case. They will explicitly point you to which questions to answer.

Candidate-led case : You will be driving the direction of the case. You will propose what area of your framework to start in, what questions you want to answer, what analyses you want to do, and what the next step of the case is.

5.  Solve quantitative problems : There are three major types of quantitative problems you could be asked in case interviews.

Market sizing or estimation questions : You will be asked to calculate the size of a particular market or estimate a particular figure. You may need to make your own assumptions on what number to use or the interviewer may provide you with the data.

Profitability or breakeven questions : You will be asked to calculate the expected profitability of a company or investment decision. You could also be asked to calculate the conditions necessary for a company to break even .

Charts and graphs questions : You will be asked to interpret data from various charts or graphs . These can include bar charts, pie charts, line graphs, scatterplots, bubble charts, and waterfall charts.

6.  Answer qualitative questions : There are two major types of qualitative questions you could be asked in case interviews.

Brainstorming questions : You will be asked to brainstorm a list of ideas for a particular problem or question.

Business judgment questions : You will be asked for your opinion on a business issue or a strategic decision.

7. Deliver a recommendation : Present your recommendation and provide the major reasons that support it. Then, propose potential next steps that you would take if you had more time.

Profitability case : A company is experiencing a decline in profits or profitability and is trying to identify what is causing the decline and what they should do about it.

How to solve:  

• Identify the driver behind the decline in profitability, whether it is from a decline in revenue, increase in costs, or both
• Understand what is causing this by looking at customer needs, competitor moves, and market trends
• Identify ways to improve profitability

Growth strategy case : A company is trying to decide how to best grow its business.

• Determine whether the company is looking to grow organically or inorganically
• For organic growth, consider growth through existing revenue sources and new revenue sources
• For inorganic growth, consider potential acquisitions and partnerships

Market entry case : A company is trying to decide whether they should enter a particular new market.

• Determine whether the market is attractive
• Assess the competitive landscape
• Determine if the company has the capabilities to enter
• Estimate the expected profitability from entering

Merger & acquisition case : A company is trying to decide whether or not they should acquire or merge with a particular company.

• Determine whether the company is attractive
• Assess potential synergies and risks
• Estimate the financial implications

New product case : A company is trying to decide whether or not they should develop and launch a particular new product.

How to solve:

• Determine whether the market that the product targets is attractive
• Assess whether the product meets customer needs and is superior to competitor products
• Determine whether the company has the capabilities to successfully develop and launch the product
• Estimate the expected profitability from launching the product

Pricing case : A company is trying to decide the best way to price a particular product or service.

• Determine the cost to produce the product. This is your minimum price.
• Estimate the customer’s maximum willingness to pay by quantifying the value the product provides. This is your maximum price.
• Investigate the price that competitors are setting for similar products. This will help you determine the optimal price between your minimum and maximum price.

Profit Formulas

• Profit = Revenue – Costs
• Revenue = Quantity * Price
• Costs = Total Variable Costs + Total Fixed Costs
• Total Variable Costs = Quantity * Variable Costs
• Profit = (Price – Variable Costs) * Quantity – Total Fixed Costs

Investment Formulas

• Return on Investment = Profit / Investment Cost
• Payback Period = Investment Cost / Profit per Year

Operations Formulas

• Output = Rate * Time
• Utilization = Output / Maximum Output

Market Share Formulas

• Market Share = Company Revenue in the Market / Total Market Revenue
• Relative Market Share = Company Market Share / Largest Competitor’s Market Share

General Statistics

• Global population: 8 billion
• Average household size: 2.5 people per household
• Average life expectancy: 80 years

Country Population Statistics  

• United States: 320 million
• Canada: 40 million
• Mexico: 125 million
• Brazil: 200 million
• United Kingdom: 60 million
• Germany: 80 million
• France: 60 million
• China: 1.4 billion
• India: 1.4 billion
• Russia: 150 million
• Japan: 125 million
• Australia: 25 million

Tip #1 - Make sure you understand the business problem and objective : Answering or addressing the wrong business problem is the quickest way to fail a case interview.

Tip #2 - Don’t rely on using memorized frameworks : Interviewers can tell when you are regurgitating memorized information and not thinking critically.

Tip #3 - Structure your approach before doing any math calculations : This helps you avoid making unnecessary calculations or reaching a dead-end.

Tip #4 - Talk through your calculations out loud : This decreases the likelihood of making a mistake and helps the interviewer follow what you are doing

Tip #5 - Structure your answer to qualitative questions : Use a simple two-part framework such as internal/external, short-term/long-term, or economic/non-economic.

Tip #6 - Answer “so what?” after every question : Throughout the case, connect each of your answers back to the case objective. What implications does your answer have on the overall business problem?

Tip #7 - Have a firm recommendation : Do not have a flimsy recommendation that switches back and forth between two different recommendations. Pick one and provide support.

Tip #8 - Be 80/20 : You will not have time to answer every single question. Focus on the most important questions that have the greatest impact on your answer. This is the 80/20 principle which states that 80% of the outcome comes from 20% of your effort.

Tip #9 - Be coachable and easy to work with : Interviewers look for people that they would personally want to have on their team. Demonstrate that you would be a great teammate.

Tip #10 - Be enthusiastic : Interviewers want to hire candidates that love their job and will work hard. Displaying enthusiasm shows you are passionate about consulting and working at the firm.

Check out our complete list of case interview tips .

Learn Case Interviews 10x Faster

Here are the resources we recommend to learn the most robust, effective case interview strategies in the least time-consuming way:

• Comprehensive Case Interview Course (our #1 recommendation): The only resource you need. Whether you have no business background, rusty math skills, or are short on time, this step-by-step course will transform you into a top 1% caser that lands multiple consulting offers.
• Hacking the Case Interview Book   (available on Amazon): Perfect for beginners that are short on time. Transform yourself from a stressed-out case interview newbie to a confident intermediate in under a week. Some readers finish this book in a day and can already tackle tough cases.
• The Ultimate Case Interview Workbook (available on Amazon): Perfect for intermediates struggling with frameworks, case math, or generating business insights. No need to find a case partner – these drills, practice problems, and full-length cases can all be done by yourself.
• Case Interview Coaching : Personalized, one-on-one coaching with former consulting interviewers
• Behavioral & Fit Interview Course : Be prepared for 98% of behavioral and fit questions in just a few hours. We'll teach you exactly how to draft answers that will impress your interviewer
• Resume Review & Editing : Transform your resume into one that will get you multiple interviews

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Case Interview Prep – Useful Tips and Frameworks

Without case interview prep, you have no chance of getting a job offer from a consulting firm . And since preparing for case interviews is very different from preparing for a normal job interview, we've put together a detailed guide that takes you step-by-step through your case interview preparation. You can find the 9 ultimate case interview prep tips , different frameworks you can apply to the most common cases, and helpful expert tips from our case coaches. We have also provided a pdf with 5 case studies for you to download for free .

If you have not read the case interview guide and firstly need some more general information on case interviews, make sure to read it first and then come back here to get more detailed tips on how to prepare for the actual case interview and solve it with confidence in front of your interviewer !

• 1. Case Interview Preparation: 9 Tips for a Successful Case Prep
• 1.1 Learn the Theory

By reading this article, you have already taken the  first step  of getting to know what case interviews are all about. Well done! You can now proceed by learning the theory you need to know to solve them.  In general, you should learn how to:

• Identify your case type (e.g.  Market sizing ,  Market entry ,  Profitability ,  Growth )
• Structure your thoughts (e.g.  Issue tree ,  MECE ,  Pyramid principle )
• Use business analysis tools (e.g.  ABC analysis ,  Breakeven ,  Benchmarking )
• Define common terms of business (e.g.  NPV ,  CAGR ,  Fixed and variable cost )

In our  Case Interview Basics , you can find all the necessary basics.

• 1.2 Gradually Develop your Business Intuition

As you need to have  good business sense  to successfully pass your case interview, you should dedicate some time before gradually building up your business intuition. The earlier you start doing this, the easier it will come to you. All you have to do is make it a  habit of regularly reading business publications  or magazines. You can choose new insights from  McKinsey ,  Bain , and  BCG  or find other sources that appeal to you. While you do that, try to develop a  basic knowledge of business, strategy, and industries , such as retail, airlines, telecom, banking, natural resources, and tech.

• 1.3 Bring your Mental Math up to Speed

All case interviews involve doing math without a calculator which is why brushing up your math skills should be a constant part of your  daily prep plan . Practice until you are a  hundred percent comfortable  doing basic additions, subtractions, divisions, multiplications, and growth rate calculations in your head. Read our article on  Fast Math  and make use of our  mental math tool  in order to practice your efficiency. This will greatly  ease the pressure  if confronted with a math problem in your interview.

Knowing the shortcuts for a wide range of calculations will help you simplify math problems. For example,  break down complex math problems  into multiple smaller operations:

= (100 - 3) x (50 + 3)

= 5000 + 300 - 150 - 9

• 1.4 Practice Makes Perfect 

Take a look at our vast  Case Library  with which you’ll be prepared for all possible case types. Our  case collection  includes cases that have been used in case interviews in the past. Solving cases on your own can give you a first feeling for them, but the only way to  improve the skills you need to pass your interview  is to put yourself in a case interview situation. Find a few outstanding candidates you can practice with and  practice cases on a regular basis . The more perspectives you can get, the better. Feedback will help you improve. 

On PrepLounge, the world’s largest case interview community awaits you. Simply schedule or accept a  mock interview  with another candidate on our  Meeting Board ! Here is how it works:

• Schedule:  After you and your case partner have confirmed the mock interview on the Meeting Board, your meeting is set and should be visible on your dashboard.
• Communication:  We recommend you directly get in touch with your case partner to confirm your method of communication during the interview (e.g. Skype) and case preferences.
• Interview:  During the back-to-back meeting you will take turns with your case partner in order to play both interviewer and interviewee roles.  Don’t neglect the part of the session where you play the interviewer role . It will help you notice points of importance and adapt your approach accordingly.
• Case:  There will be two PrepLounge cases randomly selected by default, but you can also change them and pick one of our other 190+ cases or use your own case.
• Feedback:  This is the most important part of your mock interview as it helps you to improve your case performance. Please give valuable feedback to your case partner. You would want them to do the same!
• 1.5 Get Support from Experts 

To make your case interview preparation as effective as possible, we recommend you also  invest in coaching sessions  with experienced top consultants. Our experience shows that this will be worth it, as it significantly increases your chance of getting your dream job offer (by four to be exact). Our experts know exactly what interviewers want and can  work with you on every aspect of your case performance , whether it is structure, personal fit, confidence, or communication. They can even give you  valuable networking tips  and help you get a referral.

We offer you a  transparent  list of coaches , including their professional and educational backgrounds, top skills, individual approaches, reviews, and recommendation rates. This allows you to individually choose the  perfect experts for your coaching sessions . You may also benefit from our  C oachingPlus Package  that comes with an overall discount.

• 1.6 Learn and Keep Track of your Progress 

You can do as many cases as you like, but if you do not learn from them, you will not going to  improve your case performance . This is why you should do the following: At the end of each case that you solve, whether it is on your own, with a case partner or expert,  write down in your own words what mistakes you have made and what you learned.  After a few days, redo the case and apply your learnings to ensure that you are making progress. Keeping track of your improvements will  keep you motivated and make sure that you don’t repeat the same mistakes .

• 1.7 Don’t Forget About the Personal Fit

It doesn’t matter how much you ace the case, but if you are not a  personal fit  for the company, you will not get the job offer. After all,  consulting is a people’s business , that includes teamwork and spending a lot of time with your colleagues. In order to ace the personal fit part of the interview, it is important that you understand  what   an interviewer is looking for in a candidate  to decide that he or she is a personal fit. Typically, the interviewer has  three key questions  in mind.

Then, you have to learn how to convey to the interviewer that you comply with what he or she is looking for.  Practice your answers  to personal fit questions with other candidates or experts:

• Why management consulting ?
• Why company x?
• Why should we hire you?
• Tell me about yourself!
• Give me an example of a time that you have led a group to achieve a difficult goal!
• Find more Stress Questions
• 1.8 Practice Confidence

The more you practice, the more confident you will automatically feel. However, feeling confident is not equal to seeming confident. Sometimes you can  come across as insecure without even noticing  and this can be due to minor communication style habits. Therefore, you should ask your PrepLounge case partner or expert to take your verbal and non-verbal communication into account and to give you  feedback on your level of confidence or insecurity . Try to focus on the following aspects during your practice:

• Sound of your voice.  A monotone voice or speaking too fast gives an impression of insecurity and a poor communication style. To avoid that, you can listen to podcasts with great speakers for about 30 minutes to one hour per day. After a couple of days, you will start to speak in a similar manner, as you will absorb their communication style.
• Smile.  Smiling can be a powerful element to show that you enjoy the interview (and interviewer) and are not afraid. You can force smiles (obviously not too much) in case you get feedback that you seem too serious.
• Eye contact.  You should do not need to constantly look the interviewer in the eyes, but you should not look away when he or she asks you something and you should not stare, either.
• Ability to break the ice.  Confident people are not afraid to start small talks with interviewers from the beginning. Keeping silent creates less connection and may be considered a sign of lack of confidence.
• Posture.  You should try to keep straight in the chair most of the time. Leaning too much towards the interviewer can be seen as a lack of confidence.
• 1.9 Take Breaks

In total you should prepare for  well over 50 hours  in up to a  6-week time period , practicing on a daily basis. This can be exhausting, and we know that a lot of candidates struggle with a  lack of motivation and focus , especially after an intense period of case prep. This is usually because they  forgot to implement regular breaks  in their prep plan. Professional athletes will always take time to rest to give their muscles time to regenerate, and so should you for your brain muscle. A good strategy is to  develop an evening and morning routine  that gives you time to relax and maximizes your energy level for the prep during the day. Here are some  examples  of what you can do:

• 15-20 minutes of  exercise  in the morning or evening
• A cold  shower  in the morning
• Meditation  or writing a journal
• Define  three important things to do  for the next day and allocate the time for all activities while doing the most important ones first
• No social media  one hour after you wake up and before you go to sleep
• Get enough sleep  (at least 7 hours)
• Take breaks between each case  or intense case practice session and do something totally different (e.g. workout, play video games)
• 2. Case Interview Frameworks

There is no magic formula that can be applied to every case but there are frameworks and methods that can be learned; with practice, you can ensure you are able to answer any case that you come up against.​

Anyone that has started delving into case interviews will likely have come across the frameworks designed by Victor Cheng. These are effective frameworks that have been adapted from widely published frameworks such as porters five forces . These can generally be applied to most case studies and learning them should definitely feature in your preparation. ​

Most firms are wise to these frameworks now and will even mark you down for applying one blindly . They want to see you think on your feet rather than apply a learned response. Using these frameworks is a great foundation that you can build upon, sometimes just changing the headings is enough to show you are able to create a bespoke solution.​

• 2.1 Types of Frameworks ​

There are three key framework types that can help tackle the toughest of case interviews . Whilst it is possible to learn particular frameworks prior to interviews, using frameworks from memory can result in being penalized by the interviewer. Deploying one of the following framework types with bespoke parameters is all that is required to develop an exceptional answer.​

The three framework types are; bucket, issue tree, and matrix. All three allow for a methodical approach but are more effective when used to answer different types of questions.​

Issue tree: Great for profitability questions and any market sizing elements. Each ‘root’ of the tree allows for the isolation of the problem and clear analysis. Often this is used in conjunction with a bucket framework.​

Matrix: Usually taking the form of a table but sometimes a pair of the axis (BCG matrix). This framework is great when having to draw comparisons such as in competitor analysis or M&A suitability. The key is to use only the minimum necessary parameters in order to make a clean and simple comparison.​

Bucket: The most commonly used framework, it is very good for finding the root cause and developing a good idea of the bigger picture. Laying this framework out at the start also provides a checklist to work through which should prevent any unexpected mental blocks.​​

• 2.2 Five Key Frameworks ​
• 2.2.1 Profitability Framework​

This framework takes the form of an issue tree (sometimes referred to as a logic tree), it isolates the clients' profitability problem into its key components. Following its branches, it is easy to identify where the issue lies and visualize where it fits into the bigger picture. The branches of this issue tree satisfy the MECE principle and therefore if followed correctly, it should lead you to the cause.​

Often a case will require you to identify the root cause of an issue and then subsequently recommend solutions. In this scenario, it is likely that a bucket framework will be required for the solution section.​

A profitability question will normally contain a sentence such as “PepsiCo has experienced declining profits” and therefore should be easily recognizable. Any case involving profits or one of its components (revenues and costs) will require a profitability framework.

Three equations to learn:​

1.     Profits = revenue – costs

2.     Revenue = units x price

3.     Costs = Variable costs + Fixed costs​

Profits = revenue – costs ​

This is the overarching equation that you are looking at but as always you must dig deeper into each component of the equation to find the crux of the issue.​

Revenue = units x price ​

Units can be increased by increasing the number of customers buying the current products (usually sales & marketing) or by increasing the number of products purchased by the current customer base (upselling).​

Increasing the price of a product is usually the quickest way to increase profits but this will affect the number of units that can be sold at that price, the magnitude of the effect will depend on the elasticity of demand and alternatives available to the consumer. ​

Costs = variable costs + fixed costs ​

To increase profits variable costs can be reduced by reducing the costs of inputs per unit. Increasing buying power or increasing efficiency on a per unit basis, such as automating steps of the manufacturing process, are ways of achieving this.​

Fixed costs can be reduced by removing unnecessary costs or by maximizing the efficiency of current resources. Relocating the office to a cheaper location is an example of reducing fixed costs directly and increasing manufacturing production to 100% from 80% capacity would reduce the fixed cost per unit.​

• 2.2.2 General Framework​

Developed on a framework made popular by Victor Cheng, this general-purpose framework is capable of being adapted to the majority of case interview questions. This framework can be an alternative to the growth and market entry frameworks below if you are short of preparation time and cannot learn all the suggested frameworks.​

This case interview framework primarily serves as a checklist to ensure you cover all the relevant elements in the case. It is still important to remain disciplined and methodical by exhausting each point before moving on to the next.

a) Consumer:​

Useful mnemonic: Whales Wave With Police Constables​

Who – the demographic of the customer base e.g age, gender, individuals, businesses, etc.

What – the products they are buying and reason for buying this product e.g stapler to help organize paperwork

Where – the location of the customer base e.g UK, Europe, global

Price – the prices that customers have been paying

Consumer risk – how concentrated are these customers, what effect will lose certain customers have on total revenues? (Usually fewer customers = higher risk)​

b) Client:​

Useful mnemonic: Every Dog Is Four​

Expertise – What the client is capable of and where their limitations are e.g great at manufacturing clothes cheaply but bad at luxury design?

Distribution channels – How is the client getting their product in front of customers? e.g wholesale, retail, direct to consumer, e-commerce, etc.

Intangibles – does the client possess anything intangible that may affect the strategic decision? such as strong brand recognition or intellectual property.

Financial Situation – what financial resources does the client have to make the necessary investments or absorb the cost if the project fails?

c) Product:​

Useful mnemonic: Why Eight Children Started Laughing​

What – the details of the product the client sells

The elasticity of demand – how much of a necessity is the product to consumers? For example, petrol has a high elasticity of demand for those with petrol cars it’s a necessity.

Compliments – are there any existing compliments to the product? e.g a phone case compliments a phone

Substitutes – are there any indirect competitors (especially emerging ones) such as tablets were to the laptop market (different products competing for the same consumers).

Lifecycle – how long does the product last? When will consumers be purchasing again? E.g a sandwich may have a lifecycle of 24 hours but a car is more like 5 years.

d) Market:​

Useful mnemonic: My Children Tried Saying Rebellious​

Market share – the breakdown of competitors and their respective market shares of the target market.

Competitor observations – the competitor's response to the same situation or anything notable in how they differ from the client.

The threat of new entrants – what is going to prevent another entrant to the market and what effect would this have?

Supplier risk – how concentrated are the suppliers, what effect would lose the current supplier have? (usually few suppliers = higher risk)

Regulations – are there any regulations that have or will have an effect on the client?​​

• 2.2.3 Pricing Framework​

Whilst pricing cases are less common it's sensible to know at least the basics of pricing strategies. Without the basics, it would be easy to flunk the case unnecessarily. The three common pricing strategies are cost-based, value-based, and competitor-based.​

Cost-based pricing: The addition of a target profit margin to the full unit cost.

Value-based pricing: The value that the product provides to the consumer. Usually worked out via a cost-saving, additional benefits over and above existing products or similar.

Competitor-based pricing: Taken from what competitors are charging and what this product offers in comparison.

• 2.2.4 Market Entry Framework​

This market entry case interview framework is a development of the general framework, it places more emphasis on the strategy of understanding the target market and market capture. It is still possible to answer these questions with the general framework but it is likely to convey a lack of originality to the interviewer.​

Market entry questions usually explicitly state the intentions to enter a new market such as “Bosch is looking to enter the South American market”, making them easily recognizable.

a) Market:​

Useful mnemonic: Small Childish People Prefer Marrying Red-heads​

Size – what is the size of the target market?

Customers - who are the customers and what are their needs and preferences?

Product types – what products is the market receptive to? Do changes need to be made to existing products?

Profitability – are the current players in the market profitable and by how much?

Market share – what is the current market structure of its participants?

Regulations – are there any regulations that could affect the client from successfully entering?

b) Financials:​

Useful mnemonic: Fighting Is Overly Exuberant​

Financial situation – what financial resources does the client have to make the necessary investments or absorb the cost if the project fails.

Investment required – to enter the market what initial costs are there? E.g building manufacturing facilities.

Ongoing costs – what costs will be incurred following the initial investment of entering?

Expected revenue & ROI – what is the expected return from entering the market?

c) Client capabilities:​

Useful mnemonic: Children Eat Children Maltesers​

Expertise – what the client is capable of and where are their limitations? e.g great at manufacturing clothes cheaply but bad at luxury design.

Entry experience – has the client entered a market before?

Market entrants – has anyone entered the market before? If so, does the client have the same capabilities? ​

d) Entry strategy:​

Useful mnemonic: Tall People Try Oranges​

Timing – when is the best time to enter?

Pilot – will a pilot be used (99% yes) and what size will it be? Who will participate?

Type – how will the expansion be executed? Self-built, M&A, Joint venture?

Operation location – will the new operation be run from head office or the new location?

• 2.2.5 Growth Strategy Framework​

This growth framework is an alternative to using a combination of profitability and general frameworks. It simplifies the question of growth nicely by segmenting the problem into internal and external factors.​

During a growth strategy case, it is important to remain pragmatic. It is easy to get carried away with elaborate ideas such as ‘build an app’ but hard to offer sensible ideas with real potential for the client and their current operations. This isn’t to say you should not offer all of the ideas in the beginning but then choose which ones you would recommend they explore further based on the situation in front of you. This is a good chance to show good business acumen.

a) Internal​​

Current situation - what is the financial health, growth and profitability of the company today?

Drivers of financial performance - for this particular company what impacts profitability the most?

b) External​

Industry - what is going on in the industry? (market share, growth rates, new entrants)

Customers - who are the customers and what have their historical buying trends been?

Competitors - who are they and what have they been doing? How have they grown themselves

• 2.3 The Best Frameworks When Solving Cases

A framework may help you to solve the business problem  in your case interview in a more structured and concise way. You should know the most common types of cases in order to determine which might be a suitable framework you can apply. Our coaches Guennael and Vlad explain their approaches:

What does a framework really have to do? Basically, 3 things :

First, be MECE (Mutually Exclusive, Collectively Exhaustive); Second, help you go through the case in a structured and methodical way to not only allow you find the best answer; Third, convince your interviewer that your success is repeatable and that you will crack this case and the next and the next.

Back when I was prepping for my BCG interview, I ended up falling back on just two frameworks, which I'd then tweak to fit the actual case: First, a version of the profitability model (Profit = Revenue - Cost, and Revenue = Price x Quantity); Second, a basic version of (Product, Price, Client, Competition, Company). Are these 2 frameworks optimal in every instance? No, they are not. Did they do the trick? I have used them in the 10+ practice cases with former BCGers, as well as in my 5 BCG cases... and I got in, so there's that :) I would even argue that every case can be solved by using either or both of these frameworks. Learn them, keep them in your back pocket, and be ready to use them. If you find a better one, great! But I'd rather you started with an "ok" framework and focused on solving the problem than spending 30 seconds at the beginning of the case to find the "perfect" framework , failed, and found yourself having to think on the fly as your start the solving process.

There is no one-fits-all structure.  You should have some patterns in mind for specific case types, however, you should change them depending on the:

• Additional details of the case

Below you can find a list of the  most common case types  and some high-level recommendations on structuring:

• Market sizing  - structuring from the supply or demand side. Structuring using a formula or using an issue tree
• Profitability  - basic profitability framework. Remember about different revenue streams and product mix
• Market context  cases (Market Entry, New product, Acquisition, etc). Always start with the big picture "market". Finish with something the specific strategy to answer the objective of the case (e.g. "Entry strategy" - for market entry. "Exit Strategy" for PE case. "Go-to-market strategy" for a new product case). Structure it as if you are defining the work streams for the real project.
• Operational math problem  (e.g. Should we increase the speed of an elevator or just buy a second one? How should we reduce the queues? Etc.) - Structuring as a process/value chain, with inflows, operations, and outflows
• Cost-cutting  - I provided the recommendations on structuring it:

Structuring:

• What is the cost composition and what are the biggest costs
• Benchmarking of the biggest costs to find the improvement potential
• Process improvements to meet the benchmarks
• Costs and benefits of the proposed initiatives

The key concepts  that you have to learn:

• Internal / external benchmarking
• Core processes (usually are optimized) and the supporting processes (usually are cut)
• Math structures (Frequency of operations * time per operation)
• Other useful structures (e.g. people - process - technology)
• Valuation  - Purely financial structure with cash flows, growth rate, WACC / hurdle rate, etc.
• Synergies  - revenue synergies (price, qty, mix) and cost synergies (value chain).
• Social/economics cases  (e.g. How to improve the quality of life in the city? How to increase the revenues of the museum?) - huge variability. Practice 3-5 social cases before the interview

Besides that, there is a bunch of  useful frameworks that you can apply in the middle of the case to find the root cause of a problem . E.g.

• People - Process - Technologies
• Capacity - Utilization - Output rate
• Product - Distribution - Marketing - Price
• Value-based pricing - competitive pricing - cost-based pricing

You will learn these frameworks while solving the cases.  It's useful to have a bunch of them in mind to be able to identify the root cause quickly .

• 2.4 How You Should (Not) Use a Framework

With frameworks, you are structured in every case . They give you a helping hand and guide you like a red thread through your case.  However, you should not be too fixated on specific frameworks. A framework should always be adapted to the respective situation. Our coach Sidi explains why:

You can (and should) get acquainted with all of these frameworks. But you should NOT use them as blueprints to structure your approach towards ANY given case! One big misconception that I, unfortunately, see with many many candidates needs to be called out again and again:

Structure DOES NOT equal frameworks!

The different frameworks that you can find in pertinent case literature provide a very good basic toolbox in terms of which areas to look into for certain types of problems. However,  they are very poor regarding HOW TO APPROACH a case and HOW TO DRAFT A ROADMAP for solving the case.  This approach and roadmap need to be rooted in a  rigorous and specific logic.  Unfortunately, the "framework learning philosophy" brought forward by, e.g., Case in Point, is the very reason why an overwhelming majority of candidates will not get an offer.

By and large, most (or probably all) casebooks on the market are teaching a fundamentally flawed way how to think about business/strategy / organizational problems!  A framework as such is worth nothing  if it is not  embedded into the specific context of the situation!  This means each element that you want to scrutinize ("building blocks" of the framework so to speak) needs to clearly  relate to the question that you want to address! This principle should form the basis of any structure.

This is why you  ALWAYS start from the specific question that you want to answer!  From there, you define the  criterion or criteria  that need to be met to answer this core question in one way or another.

In 95% of cases,  value creation  will be the central element. Ultimately, this is nothing else than profit generation over a specific time frame. You then draw a  driver tree  for profitability to isolate the  numerical drivers  for your solution. And then, only after you have drawn out the driver tree, you can map out the relevant qualitative "framework elements" to the sub-branches.  This approach, visualized by means of a rigorous driver tree, is much much clearer than any framework you will find in any case book.  And, contrary to such frameworks, which are hanging in the air and do not logically relate back to the specific question, this is a bulletproof approach when done rigorously.

The caveat is: this requires time and qualified coaching to internalize. But ultimately, this is how consultants think about problems -  how can we optimize for value creation?

• 2.5 How to Develop Your Own Framework in 4 Steps

In order to address unique issues in case interviews, it is important to develop your own frameworks . Our expert Benjamin gives you tips on how to do it:

1. (almost)  Never use a standard framework taken from the books.  Strategy consulting is about helping clients facing unique issues with a tailored answer. Forcing your approach in a standard framework is unlikely to be relevant

2.  Project yourself in your client's shoes and show empathy for its problems.  By doing so it will be much easier for you to understand what are the key topics to cover to formulate a recommendation and make sure you don't forget anything. I always ask myself "what would I do if this was my business and my own problem? What do I need to know/understand to make a decision ?"

3.  Make sure every topic you want to cover is relevant for the final recommendation.  A simple check is to ask yourself "If I spend time on this specific topic, and get some answers to my questions (ex. market sizing, competition, etc.), will this bring useful element for the final recommendation given my client's problematics"? If the answer is no, then you should drop this sub-issue.

4.  Practice a lot, with any daily case you can set up on your own.  The above tips are taken from my own experience doing my best to build MECE structures, but keep in mind that it takes a lot of practice to achieve a satisfying performance here. I have developed an exercise called structuring drills, that focus your effort on learning to build a structure. This is usually very appreciated by candidates.

• 3. How to Solve a Case Study in 10 Steps [Infographic]

Step 1: Listen actively and take notes. Write down every piece of information, especially numerical data.

Step 2: Restate the question. Pause, paraphrase and make sure you understand the problem statement by confirming with the interviewer.

Step 3: Clarify the objectives and identify the problem. Ask specific questions and double-check on objectives. Make sure you completely understand the problem.

Step 4: Write out your structure. Ask your interviewer for a minute to prepare your structure and organize your notes. Identify your case type and use an issue tree to customize your structure. The branches of your issue tree should be MECE.

Step 5: State your hypothesis. Now that you have set up the issue tree, your task is to test each branch to see if it is the root cause of the problem. Where to begin? A hypothesis based on an educated guess helps here.  (e.g. "Since you have mentioned that revenues are more or less flat, my hypothesis is that the problem is mostly driven by the cost side of the business. If it is okay with you, I will start by […]")

Step 6: Think out loud. Sharing your thoughts allows the interviewer to interact. Refine or rebuild your hypothesis as you find out more.

Step 7: Gather more data in order to test your hypothesis. Proactively ask for relevant data and always segment it (e.g. using the ABC analysis ). Try to evaluate whether trends have been company-specific or industry-wide.

Step 8: Dig deeper while staying structured ( MECE !) throughout the case. Always refer to the structure you have set up at the beginning of the case but be flexible as the case evolves. If you conclude that your hypothesis is false, eliminate that branch and go to the next one. Summarize findings when switching major branches. If your test confirms your hypothesis, go deeper into that branch, and drill down to the lower levels until you identify all proven root causes.

Step 9: Choose a recommendation and use the Pyramid Principle to structure your conclusion. Ask for a minute to gather your thoughts and then state your recommendation. You need to deliver a one-minute, top-down, concise, structured, clear, and fact-based summary of your findings.

Step 10: Stand by your conclusion. Your interviewer will likely challenge your recommendation (either to see if you can handle pressure or to assess if you really believe in what you are saying).

• 4. PrepLounge: The Key to Your Success

To become the best, you must learn from the best. That is exactly what PrepLounge can offer you. The vast  PrepLounge community  makes it easy to find case partners with the same ambitions and goals as you. Whether you are looking for a professional case coach or other aspiring consultants, you will have no problem finding case partners in the build-up to your interview. Our  PrepLounge coaches  – from Bain to  McKinsey  – are uniquely qualified to provide you with insights into the mastery of a case interview.

Apart from case partners from every imaginable background, PrepLounge provides a colossal collection of  online resources  to give you the best preparation leading up to your case interview. We will provide you with questions and answers to the most important consulting case types and share in-depth knowledge for the best possible case interview preparation. You will be able to find case partners to practice online and always be on top of the  latest insights and news  regarding consulting jobs and  top consulting firms .

As a PrepLounge member, you will receive access to all these perks. PrepLounge will accompany you all the way from your  application through to your contract negotiation . You strongly diminish your chance of success without sufficient preparation. Invest in your future and give yourself the best chance at  acing your case interview ! Exchange your experience with peers from all around the world in our  Consulting Q&A . Join our case interview community today and embark on your journey into consulting!

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Mastering Case Interview Frameworks in 2024: A Comprehensive Guide

Last Updated on March 26, 2024

In the competitive world of consulting recruiting , mastering case interviews is a crucial step towards landing a job at top firms like McKinsey , BCG , and Bain . Discovering how to structure case interviews in consulting is fundamental, as the foundation of successful performance lies in effectively tackling complex business problems. In 2024, with more challenging and creative cases, understanding how to craft a compelling case interview framework is more important than ever.

This article serves as a comprehensive case structure guide, diving deep into the art and science of structuring your analysis and providing you with essential insights into what a case interview framework entails, why it’s critical for your success, and the different strategies you can employ to impress your interviewers from the get-go.

Starting with an overview of what case interview frameworks are and their significance, we explore the nuances and provide essential case structuring tips that set apart winning strategies from the rest. We offer tips for acing consulting firm case interview frameworks. Whether you’re wondering about the types of frameworks that exist, what constitutes a robust case interview structure, or if memorizing frameworks is beneficial, we’ve got you covered.

This guide is based on our experience as McKinsey interviewers and cas coaches with more than 1600 case interview sessions conducted at the time of writing. It is designed to give you a head start in your case interview preparation, ensuring you’re well-equipped to structure your thoughts like a seasoned consultant.

By integrating key concepts with practical advice, this article is your ultimate guide to consulting case structure and acing case interviews in 2024. Stay tuned as we guide you on answering consulting structuring questions with confidence and tackle some of the most pressing consulting framework questions, helping you structure your approach in case interviews more effectively. We want to give you a head start by answering the following questions in this article:

• What is a case interview framework?
• Why do you need to structure your approach?
• Are there different types of frameworks?
• What makes a good case interview structure?
• Should you learn case interview frameworks by heart?
• How can you create frameworks from scratch using a first-principles approach?
• What is the best way to practice framework creation?
• How do you structure a McKinsey case interview? Is it different from candidate-led interviews?

This article is part of our consulting case interview series. For the other articles, please click below:

• Overview of case interviews: what is a consulting case interview?
• How to create a case interview framework (this article)
• How to ace case interview exhibit and chart interpretation
• How to ace case interview math questions

What is a Case Interview Framework?

A case interview structure is used to break the problem you are trying to solve for the client down into smaller problems or components. It is the roadmap you establish at the beginning of the interview that will guide your problem-solving approach throughout the case.

You are defining areas to analyze that help you understand where the problem is coming from or how to answer the question of a client.

In that sense, structuring your approach is the first important step in every case interview. Initially, the interviewer will tell you about the client’s situation and the problem they are asking you to solve. After playing back the prompt and asking clarification questions, you need to structure your approach and create a case interview framework.

Let’s look at one traditional example:

Our client is a beverage manufacturer and has seen declining profits over the last year. They have called us to investigate the issue and propose ways out of it. A typical case interview prompt (simplified)

For you as a candidate, getting the framework right is the first step to successfully acing the case. If you fail to propose a proper analytical structure, you will not be able to investigate the situation and find the root cause of the issue.

A case interview framework usually consists of a top layer and several sub-levels, where the top-level buckets cover the issue broadly, whereas the sub-level buckets identify more concrete areas to look at.

To illustrate, the most common and basic structure that would allow us to analyze the situation on top would be looking at:

Profit = Revenue – Cost

This high-level structure is used for profitability cases when you are tasked to solve an issue with the client’s profit development. The two buckets revenue and cost represent the top level. To analyze the problem properly, you would need to go deeper and figure out what sub-levels influence the variables you are looking at.

For instance, for our beverage manufacturer, you could look at cost and break it down into fixed cost and variable cost with a 3rd level of concrete areas to investigate:

It is important to tailor the structure and associated sub-levels to the case questions. Framework templates were en vogue 5-10 years ago and consulting firms have moved away from asking generic cases that would fit the frameworks taught by Case in Point or Victor Cheng (more on that below).

In terms of format, the best-practice approach to structuring a case is to build an issue tree with branches, which are split into several sub-branches (see the example below).

As with most other aspects of the case interview, mastering effective consulting interview frameworks and deconstructing problems is a skill that needs to be learned, internalized, and practiced to perform best during the interviews.

We’ll cover this in much more detail later in this article.

Why Do You Need a Framework to Structure Your Approach?

The initial structure you need to come up with serves three important purposes in a case interview.

Investigative roadmap

First, it is the roadmap you establish initially that guides your problem-solving throughout the case. Once you lay out your planned approach, you should go through each bucket or branch of your issue tree to find the issue(s) the client is facing or to evaluate the ideas you came up with to fit the needs of the client and then work on your recommendation(s). The case framework serves as the anchor you should stick to as you move through your analysis.

Communication device

Second, it is used as a communication device to guide the interviewer through your thought process and approach. Additionally, moving through the structure allows you to ask targeted questions to the interviewer about additional data or information on each point.

Analytical test

Third, coming up with a proper structure and communicating it well is a test in itself. The interviewer tries to understand how well you can tackle unfamiliar problems. They will evaluate your thinking, logic, analytical capabilities, and problem-solving prowess as well as communication skills.

Case Structuring Course and Drills

Learn how to structure any case, regardless of the problem, industry, or context with our first-principles approach to problem deconstruction and brainstorming. We use our McKinsey interviewer experience to teach you how to structure cases like a real consultant.

Includes 25 lessons on structuring and brainstorming and 100 practice drills.

Different Types of Frameworks with Examples

Generally, two types of case frameworks exist, depending on the nature of the question.

Either you are asked to break a problem down into its parts and understand where an issue comes from to provide a recommendation (e.g. ”Our client is trying to understand why…?” ) or you are asked to answer a specific question ( ”Should our client engage in…?” ).

Figuring out a problem

A structure here is the starting point and anchor of your problem diagnostic.

First, you need to think about all potential problem areas, then drill down into each branch to figure out what is wrong exactly by collecting more information from the interviewer and exhibits; based on your probing you will receive information from the interviewer that you have to analyze qualitatively and quantitatively, then provide a recommendation in the end.

Answer a question

For these types of questions, a structure is a systematic analysis of a situation or comparison of options that you want to investigate on behalf of the client to help them with a specific goal or question.

For both types of structures, you should follow a hypothesis-driven approach, i.e. already having a clear vision of where the problem could be buried most likely or what approach or idea would best support the client’s goal.

Apart from knowing what frameworks are used for, what characteristics make a strong case interview structure?

Criteria of Strong Case Interview Frameworks

A good case interview framework follows several rules.

Let’s break them down into content requirements and principles.

Content requirements

An excellent structure is broad at the top level, goes into greater depth on the sub-levels, and consists of meaningful and insightful ideas.

• Breadth: How many buckets does your structure consist of at the top level? While in a profitability case, the top level is given, for many other cases you can expand your top level by several buckets ( Real MBB case question: ”What could be the reason our machines break down at different rates in different locations?” ).
• Depth: How deep do you go into each top-level idea and come up with levers/areas to look at below? How well can you support your top-level with the actual ideas that influence it?
• Innovation: How meaningful and insightful are your ideas? Create a mix of common components as well as more out-of-the-box answers. Tell the interviewer something they have not heard before.

Principles of success

Make sure that your structure adheres to the principles below.

• MECE-ness: Refers to a grouping principle for separating a set of ideas into subsets that are mutually exclusive (no overlaps between the different branches of the issue tree) and collectively exhaustive (covering all important aspects). It is used to break down problems into logical and clean buckets of analysis.
• Actionable: Your answer should only consist of ideas that you can exert influence on within the given time frame (e.g. if you are asked to come up with measures over the next year, everything beyond that should not be touched in your structure).
• Logically coherent: Top levels and sub-levels should be consistent within their level and across levels. They should stick to the same hierarchy of importance and logic (e.g. if you are comparing revenue and cost, they should be at the same level, and everything that influences the two should be below).
• Relevant: The content should be relevant to the case at hand, tailored to the client, and easy to follow and communicate. Avoid over-structuring your case. Find a few broad categories at the top and then break them down further.
• Hypothesis-driven: You should have a clear idea of where the problem is buried or what solution is best for the client from the start, and while moving through the structure and gathering additional information, that hypothesis should become clearer.

Memorizing Frameworks is the Worst Thing You Can Do

Upon beginning work with new clients, it becomes immediately evident when they’ve memorized standard frameworks, as this practice typically affects their early performance noticeably. It’s hard to fault them, given that prevalent case interview guidance and literature still advocate memorizing frameworks to apply or tweak across various cases.

Be aware that framework templates were applicable 15 years ago, in the era of Victor Cheng and Case in Point. McKinsey and other top-tier firms have long caught up on this and the cases you will get during the interviews are tailored in a way to test your creativity and ability to generate insights, not remember specific frameworks.

In fact, it will hurt you when you try to use a framework on a case that calls for a completely different approach. Also, it gives a false sense of security that will translate to stress once you figure out how your approach won’t work during the real interview – We have seen this so many times…

Your goal should be to master various framework creation methods, allowing you to build custom issue trees and frameworks, interpret charts , and perform math no matter the case’s context, industry, or function. Our approach teaches you this and trains your ability to come up with deep, broad, and insightful structures for each case individually.

Now, if you come from a non-business background, it certainly does not hurt to glance over the classic frameworks once (e.g., market entry, product development) to become familiar with the terms and phrases as long as you are aware that their usefulness ends there.

Also, be aware that there is no typical McKinsey case interview framework, BCG case interview framework, or Bain case interview framework. All firms use a diverse set of cases, which are usually developed by each interviewer individually based on a real consulting project they have completed.

If you are looking for case interview examples, check out this article , where we have compiled a link list of all publicly available MBB and tier-2 consultancy cases.

Back to the frameworks: Memorizing frameworks for a case interview may seem like an effective strategy, but in reality, this practice is detrimental to your performance. McKinsey, BCG, Bain, and other top consulting firms want to see candidates come up with their own solutions and innovative approaches.

I want to show you why memorized frameworks like the ones from Case In Point or Victor Cheng do not work and supplement these with plenty of examples to bring the point across. In the end, I want to introduce you to my Structuring Drills course as well as my Case Interview Preparation book, The 1%: Conquer Your Consulting Case Interview . Both resources are aimed at developing you into a world-class case interviewee.

Below are the top reasons why memorized frameworks and cookie-cutter approaches do not work.

No points for problem-solving

First, case interviews are designed to test your problem-solving and critical-thinking skills, not your ability to regurgitate memorized information. Frameworks are meant to be a guide, not a script. Using a memorized framework in an interview can make it obvious that you are not thinking critically about the problem at hand, which can make it difficult for you to impress the interviewer. Interviewers want to see insightful analytical constructs, which means that they need to be tailored, relevant, and concrete.

If you just use memorized buckets, you will score badly in terms of problem-solving. To see a real scoring sheet, go here .

Cases have become much more creative

Second, case interviews often involve unique and unpredictable scenarios. No two cases are the same, so a memorized framework may not apply to the specific problem you are presented with. Attempting to force a framework onto an unrelated problem can make it clear that you lack flexibility and the ability to adapt to new situations.

For instance, let’s look at a real McKinsey case example from a couple of years ago.

You are working with an operator of a specific type of machines. They break down at different rates at different locations. What factors can you think of why that would happen? Example of a McKinsey Case Interview Structure Questions

Which Victor Cheng framework or Cosentino ideas would you present here to the interviewer? There is not a single bucket that would work.

Let us look at an example answer for this prompt.

You limit your creativity

Third, using a memorized framework can limit your ability to think creatively. When you are focused on trying to fit the problem into a pre-existing framework, you may miss opportunities to come up with innovative solutions.

1% of candidates make it through the filter of MBB . You want to provide insights the interviewer has not heard before and not be just like the other 99% that fail to impress.

You have no rationale

Fourth, case interviews also test your ability to communicate and present your thought process effectively. When you are relying on a memorized framework, you may not be able to explain the reasoning behind your solutions and ideas. This can make it difficult for the interviewer to understand your thought process and evaluate your problem-solving skills.

Interviewers want to understand why you think a certain way, not just what you think. Memorizing frameworks completely kills your ability to support and defend your choices.

In conclusion, memorized frameworks can be detrimental to your performance in a case interview. Instead, it’s better to focus on developing your problem-solving, critical thinking, flexibility, creativity, and communication skills. These are the skills that are truly valued in case interviews and a business setting later on.

Let’s have a brief look at how you can become a better problem solver and create frameworks like an actual consultant.

Apply a First-Principles Approach to Frameworks

Consultants approach problems from a first-principles perspective. If you learn how to do the same, not only will you come across as an equal to them, not just another case interviewee, but your analytical lens and case performance will skyrocket. Adopt these innovative framework creation methods for case interviews.

First-principles thinking

At the core of your idea generation should be first principles thinking, which refers to the process of systematically deconstructing a problem or situation into its constituent parts in a MECE way. Only by following this approach can you identify where the issue in a case comes from and how big it is (the what), then dive deeper to understand the reason (the why) to eventually work on a solution (the how). First principles allow you to break a situation down into its core pieces and then put it back together.

For instance:

“What do we need to build an aircraft?”

• A factory (infrastructure)
• Tools and equipment
• Financial means

From there, you go into second and third-order considerations; for instance, for staff:

• Formal education and training
• Work experience
• # of people in total
• # of people for different areas (e.g., engines vs. wings)
• Supply of and demand for labor in the area
• Job advertisement
• Working conditions
• Remuneration and benefits

There are several ways you can employ this type of thinking for creating case interview frameworks. First, we look at the top level of your issue tree, the foundation of your problem-solving, and then explore in more depth the branches, all with a first principles perspective in mind.

Framework creation techniques

For most cases, you can focus on problem deconstruction from two angles: examining the components involved and understanding the process.

To illustrate, we’ll explore the example of improving customer satisfaction for an airline.

The component approach

When we dissect a problem through the lens of its components, we look at the static elements that make up the situation. For an airline, this could include the tangible and intangible assets that affect a customer’s experience. These components might encompass the aircraft itself (comfort, cleanliness, amenities), the staff (friendliness, efficiency), the booking system (ease of use, flexibility), and ancillary services (lounge access, on-board meals).

By examining each component individually, you can identify potential areas for improvement. For example, an analysis might reveal that enhancing the on-board meal quality could significantly boost overall customer satisfaction. This approach requires a deep dive into each element, assessing its current state, impact on the customer journey, and potential for optimization.

The process approach

Alternatively, examining the problem through a process lens involves mapping out the sequence of steps a customer takes, from booking a flight to reaching their destination. This perspective allows you to identify pain points and opportunities for enhancement at each stage of the customer journey.

For instance, you might discover that the check-in process is a significant bottleneck, causing frustration and setting a negative tone for the journey. By streamlining this process, perhaps through more efficient use of technology or additional staff training, you could improve the overall customer experience, thereby increasing satisfaction.

Once you have generated your top-level buckets, expand those ideas into more concrete ideas on the levels below. For instance, from a component perspective, you might have identified staff as an area to investigate.

Next, think about what type of staff a typical passenger encounters like booking agents, check-in staff, lounge personnel, cabin crew, etc. Voila, you have created the most concrete and final level of your analytical framework structure.

Try it out yourself when you encounter the next case problem and think about it either from a process or component perspective, then dive deeper.

While it might be harder initially to use this approach of creating frameworks from scratch, the outcome over time always beats memorization. Hence, we do not recommend any other way to learn and practice frameworks.

Practicing Case Interview Framework Creation and Problem Deconstruction

Developing a strong foundation in creating case interview frameworks is essential for success in consulting interviews. This skill is not about memorizing a set of frameworks but understanding how to construct them from scratch based on the problem at hand. Here’s how you can hone this ability:

1. Master content creation techniques for problem deconstruction : Our course is designed to equip you with the right techniques for breaking down complex problems into manageable parts. We focus on first principles thinking and an intuitive way of breaking down problems, enabling you to understand the core elements of any issue you’re presented with, which is crucial for custom framework creation.

2. Practice with a variety of cases : Exposure to a wide range of case scenarios is key. Our library includes over 100 practice cases, complete with detailed answer keys and explanations. This diverse set of examples will not only improve your ability to adapt your framework to different problems but also enhance your problem-solving speed and efficiency.

3. Regularly read business publications and magazines : Keeping up-to-date with the latest in the business world is invaluable. This habit sharpens your business acumen, enriches your understanding of current market trends, and deepens your industry knowledge, all of which are critical when you need to tailor your frameworks to specific contexts.

4. Understand basic business concepts and terminology : A solid grasp of fundamental business concepts and jargon is non-negotiable. This foundational knowledge ensures you can speak the language of business fluently, making it easier to structure your thoughts and communicate effectively during the case interview.

Remember, the goal is not to memorize frameworks but to learn how to construct them dynamically as per the needs of the case. This approach ensures that your frameworks are always tailored, insightful, and directly relevant to the problem you’re solving.

Also, do not forget that creating the structure at the beginning of the case is just the first step. There are also other elements to consider in a consulting interview preparation plan .

Case Interview Framework in McKinsey Interviews

Since the McKinsey interview is interviewer-led, there is an extra emphasis on the structuring part.

At the core, McKinsey wants to see creative ideas communicated in a structured manner, the more exhaustive the better. Your goal should be to come up with a tailored and creative answer that fits the question.

In a McKinsey interview, you can take up to 2 minutes to draft your structure, IF the structure you come up with is strong and

• hits all the key points that the firm wants to see and
• is communicated in the right way.

A big issue I see with coaching candidates is that they take too little time to structure their thoughts because they feel pressured to be quick rather than exhaustive and creative.

An additional 30 seconds can often make the difference between a bad structure and a good one or a good one and an excellent one. So my battle-tested advice is to get rid of this time-pressure mindset, especially in a McKinsey interview.

Now for the content of the structure, there is no right or wrong answer. Some answers are better than others because they are

• hypothesis-driven
• follow a strong communication (MECE, top-down, signposted)

That being said, there is no 100% that you can reach or a one-and-only solution/ answer. It is important that your answers display the characteristics specified above and are supported well with arguments.

Also different from other firms, you can take up to roughly 5-6 minutes to present your structure, your qualifications, and hypotheses. This is due to the interviewer-led format that McK employs. The firm wants to see exhaustive and creative approaches to specific problems.

Again, this only applies if everything you say

• adds value to the problem analysis
• is well qualified
• includes a detailed discussion of your hypotheses at the end

The difference in format and way of answering a question is the reason why I recommend preparing differently for McKinsey interviews vs. other consultancies’ interviews.

Read more about the McKinsey interview process and the McKinsey case interview specifically.

We Help You Draft Frameworks and Communicate Them Well

I have seen memorized and cookie-cutter frameworks destroy many candidates’ performance and chances to get an offer for many years now. The only issue that is bigger than that is the typical candidate’s ability to handle case math ( but that is for another time ).

To conquer that and many other things that I think are wrong with today’s standard literature on case interviews, I wrote The 1%: Conquer Your Consulting Case Interview . The book is available on Amazon and covers frameworks, case structuring, and brainstorming in great depth. It teaches you how to think and not to memorize faulty frameworks (among 340+ pages of other valuable case interview content).

Once you have understood how to tackle a case structure, you can practice with the Case Structuring Course and Drills here on StrategyCase.com.

We have specialized in placing people from all walks of life with different backgrounds into top consulting firms, both as generalist hires as well as specialized hires and experts. As former McKinsey consultants and interview experts, we focus on teaching the best habits and strategies to ace every case interview, including idea generation, problem-solving, and brainstorming, all from a first-principles perspective.

We can help you by

• tailoring your resume and cover letter to meet consulting firms’ highest standards
• showing you how to pass the different online assessments and tests for McKinsey , BCG , and Bain
• showing you how to ace McKinsey interviews and the PEI with our video academy
• coaching you in our 1-on-1 sessions to become an excellent case solver and impress with your fit answers (90% success rate after 5 sessions)
• preparing your math to be bulletproof for every case interview
• helping you structure creative and complex frameworks for case interviews
• teaching you how to interpret charts and exhibits like a consultant
• providing you with cheat sheets and overviews for 27 industries .

Reach out to us if you have any questions! We are happy to help and offer a tailored program to help you break into consulting.

To improve your skills in all areas of the interview, check out some of our targeted offers below.

Frequently Asked Questions about Case Interview Frameworks

In more than 1600 case interview sessions at the time of editing this article, several questions have come up frequently from my clients. To assist you in this critical phase of your case interview preparation, I’ve compiled a list of frequently asked questions about case interview frameworks.

These questions aim to shed light on the nuances of preparing for and excelling in case interviews, providing you with insights to enhance your understanding and skills.

How do specific industries impact the creation of case interview frameworks? Industries play a crucial role in shaping the choice of case interview framework components, specifically at the lower levels. At the top level, most companies are built in the same way, regardless if they are offering a product or a service. The main difference to tailor it to the industry usually happens on the lower levels of the framework. For instance, while both an airline and a bookstore generate revenue, which is comprised of price times quantity, the pricing for an airline works very differently (e.g., ticket price, booking fee, seat allocation fee, baggage allowance fee, etc).

Can you provide real-life examples of case interview questions from top consulting firms and how to apply frameworks to them? While specific real-life examples are proprietary, many consulting firms publish practice cases on their websites. These can serve as a valuable resource for understanding how to apply frameworks to solve common business problems, with each case typically demonstrating the application of different analytical frameworks. We have collected many free practice cases from different firms here .

What are the common mistakes candidates make when structuring their approach in case interviews, and how can they avoid them? Common mistakes include overly relying on memorized frameworks without creating new ones for the specific case, failing to listen actively to the interviewer’s hints, and neglecting to structure answers in a MECE (mutually exclusive, collectively exhaustive) manner. Avoid these by practicing flexibility, active listening, and ensuring your approach is tailored and comprehensive.

How has the approach to case interviews and the use of frameworks changed over the past decade? The approach has shifted towards evaluating candidates’ ability to think creatively and adapt frameworks dynamically rather than relying solely on memorized structures. This change reflects the consulting industry’s need for innovative problem solvers who can navigate complex and evolving business landscapes.

Are there any differences in how frameworks should be applied in virtual versus in-person case interviews? The core principles remain the same, but virtual interviews require candidates to be even more clear and structured in their communication , given the lack of physical presence. Ensuring technical setup is optimal and practicing verbalizing your thought process can help bridge the gap.

What role does creativity play in structuring case interviews, and how can candidates balance it with the use of standard frameworks? Creativity is crucial for developing tailored and insightful frameworks that go beyond standard responses. Candidates should not use standard frameworks but explore creative angles and solutions to demonstrate their unique problem-solving abilities.

How can non-business background candidates quickly grasp the concept of case interview frameworks? Non-business candidates should start with foundational problem-solving practices and business concepts and practice applying them to diverse case scenarios. Leveraging resources like business publications, online courses , and practice cases can accelerate their understanding and application of case frameworks.

What are the interviewers’ perspectives on the use of frameworks, and what do they look for in a candidate’s approach? Interviewers seek candidates who can create their own frameworks flexibly and creatively, showing an understanding of the underlying business principles. They value clarity, logical structuring, and the ability to derive actionable insights tailored to the specific case. Interviewers usually do not pass candidates who use memorized frameworks that do not fit the case.

How can candidates effectively practice and improve their framework structuring skills? Practice is key. Engaging in mock interviews, analyzing case studies, and receiving feedback from peers or mentors can greatly improve your ability to structure effective frameworks. Additionally, regularly challenging yourself with new and diverse case scenarios can build adaptability and depth in problem-solving. If frameworks are one of your key development areas, do not waste time going through full cases. Rather, work on individual drills back to back to create a habit of deconstructing problems accurately and swiftly.

What are some advanced techniques for customizing frameworks to fit unique case interview scenarios? To customize frameworks for unique case interview scenarios, focus on deconstructing the problem using first principles thinking. Break down the issue into its fundamental components or underlying steps to understand its structure. This approach enables you to create a tailored framework that directly addresses the specificities of the scenario. Apply relevant industry insights and business sense to enhance your analysis. Begin with a clear, strong hypothesis to steer your investigation and framework construction, ensuring that every part of your framework is directly relevant to unraveling the core problem at hand.

Do you have a framework-related question or struggle? Reach out to us in the comments below and we are happy to help!

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Florian spent 5 years with McKinsey as a senior consultant. He is an experienced consulting interviewer and problem-solving coach, having interviewed 100s of candidates in real and mock interviews. He started StrategyCase.com to make top-tier consulting firms more accessible for top talent, using tailored and up-to-date know-how about their recruiting. He ranks as the most successful consulting case and fit interview coach, generating more than 500 offers with MBB, tier-2 firms, Big 4 consulting divisions, in-house consultancies, and boutique firms through direct coaching of his clients over the last 3.5 years. His books “The 1%: Conquer Your Consulting Case Interview” and “Consulting Career Secrets” are available via Amazon.

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Career in Consulting

11 must-know case interview frameworks

This is a complete guide to case interview frameworks.

In this in-depth guide, you’ll learn:

• 11 must-know consulting frameworks to ace your case interviews
• How to use these frameworks in your case interviews
• And how to create custom frameworks

So, if you want to land an offer from a top consulting firm, this guide is for you.

Let’s dive right in.

Table of Contents

Get the latest data about salaries in consulting, what are case interview frameworks.

A case interview framework is a structured way to approach how to solve a problem .

In other words:

Case interview frameworks help Consultants (and aspiring Consultants) brainstorm and organize their ideas to solve complex problems.

For example, a case interview framework is the profitability framework.

Let’s imagine this business problem:

Your client is manufacturing cars. And, for the past 2 years, they have been experiencing declining profits. They hire us to determine the root causes of this business problem.

And to help this company, you should explore the two main profit drivers: revenues and costs.

And explore if revenues decreased (one cause of declining profits).

Or explore if costs increased (another cause of declining profits).

Well… this (simple) example is a business framework.

Related articles

Check also these articles to ace your case interviews:

16 case interview tips

16 case interview mistakes

Ace market sizing questions (incl. 3 market sizing frameworks) 

Case interview preparation

280 case interview examples

Let’s detail the 11 common case interview frameworks you must know to ace your case interviews .

And let’s start with Porter’s five forces.

Case interview framework 1: Porter’s Five Forces

Let’s start with an analysis of external factors.

And one of the most well-known business frameworks is Michael Porter’s Five Forces model.

And it can be found in the book Competitive Strategy: Techniques for Analyzing Industries and Competitors .

Michael Porter’s Five Forces model says the following:

Competitive advantage in an industry is dependent on five primary forces :

• The threat of new entrants
• How much bargaining power do buyers have
• The bargaining power of suppliers
• Threat of substitute products
• Rivalry with competitors

The degree of these threats determines the attractiveness of the market:

• An intense competition allows minimal profit margins.
• Mild competition allows wider profit margins.

Therefore, the goal is to assess whether a company should enter/exit the industry or find a position to defend itself against these forces best or influence them in its favor .

For instance, your market entry framework should include the components of Porter’s Five Forces. 

The threat of new entrants (barriers to entry)

Several factors determine the degree of difficulty in entering an industry:

• Economies of scale

Product differentiation

• Capital requirements vs. switching costs
• Access to distribution channels
• Cost advantages independent of scale
• Proprietary product technology
• Favorable access to raw materials
• Favorable location
• Government subsidies
• Learning curve
• Government policy

Relationship with buyers (buyer power)

• It is concentrated or large purchases volumes relative to the seller’s sales
• The products it purchases front the industry are standard or undifferentiated
• It faces few switching costs
• Buyers pose a credible threat of backward integration
• The industry’s product is unimportant to the quality of the buyer’s products or services
• The buyer has full information
• Purchasing potential
• Growth potential
• Structural position: intrinsic bargaining power and propensity to use it
• Cost of servicing

Relationship with suppliers (supplier power)

A supplier group is powerful if:

• It is not obliged to contend with other substitute products for sales in the industry
• The industry is not an important customer of the supplier group
• The supplier group is an important input to the buyer’s business
• The supplier group’s products are differentiated, or it has built up switching costs
• The supplier group poses a credible threat to forward integration

Key issues in purchasing strategy from a structural standpoint are as follows:

• Stability and competitiveness of the supplier pool
• An optimal degree of vertical integration
• Allocation of purchases among qualified suppliers
• The threat of backward integration

Substitute products

Substitute products that deserve the most attention are those that:

• Compete in price with the industry’s products
• Are produced by industries earning high profits

Rivalry among competitors (competitive analysis)

Now, let’s analyze the competitive landscape.

Rivalry among existing competitors increases if:

• Numerous or equally balanced competitors exist
• Industry growth is slow
• Fixed costs are high
• There is a lack of differentiation (commodity market)
• There are low switching costs
• Production capacity is augmented in large increments

To end this first section about Porter’s Five Forces, you can watch this video made by the channel Business To You.

Case interview framework 2: the 4 P’s

The 4Ps are:

And it’s often seen as a Marketing framework.

The 4Ps framework can help you in your case interviews in one of the following situations :

• A market entry strategy or a product launch strategy
• To understand why sales (or market shares) have decreased

Now, let’s look at the different elements of the 4P framework.

In examining the competitiveness of a company’s product, whether it is a new product being introduced on the market or an existing product manufactured by the company, one must examine the product itself.

The following are some of the questions you might find helpful in assessing a product’s competitiveness :

• Does the product serve a particular market segment? Is it a mass market or a niche product
• Is it differentiated enough to stand out against the competition? If yes, how? If not, what can be done to improve its value perception?
• What features can be added to the product that would add to the perception of value to the consumer?
• What are some of the packaging issues that might present an opportunity or impediment to increased sales?
• Does my packaging reflect the positioning of the product?
• Does the product have patent protection?
• What financial role is the product playing (i.e., cash cow, long-term profit potential, etc.)?
• Are there any other products that can act as substitutes?

Getting the right price for a product is extremely important for the company’s success.

Unfortunately, sometimes the right price is not easy to determine.

Depending on the price elasticity of the product, a 1% increase in price has anywhere from a -20% reduction to a 25% increase in net income.

The most important factor that drives price is the customer’s perceived “value” of the product .

This is also known as the customer’s willingness to pay.

For example, if a company produces shirts with a unit cost of $10, but the market perceives the product as fashionable or has the right brand name, the shirt can be priced to capture any consumer surplus at $50 or even $80 per shirt.

The same manufacturer introduces another shirt at the same cost the following season.

This time, however, the shirt is no longer considered in vogue and thus has little “value.”

This time, the shirt would be priced at $25.

Other factors determining a product’s price are:

• The Cost to Produce COGS : maintain low costs to capture a bigger profit margin.
• The price paid previously – the expected price: if consumers are used to paying a certain price for a product, it is challenging to convince them to pay a $20 premium for the same product. However, if their perceived product value is higher than what they paid in the past, there’s room to capture some consumer surplus.
• The price of substitutes : the price of a product is driven down if the product can be easily substituted by another that serves the same function.

After assessing the product positioning and understanding who your customers are, you need to develop a strategy around which distribution channel to use and where to sell your product .

The distribution channel can be through a third party or an in-house sales force.

And the distribution channel is responsible for transmitting the company’s product to the customer (wholesaler, retailer, end-user).

The selected distribution channel and the outlets at which the product is sold MUST be aligned with the product’s positioning and focused customer segment.

There are many issues to consider when examining the place/channel distribution.

Below are some thoughts to formulate a strategy for delivering the product to market :

• What are the customer preferences regarding distribution?
• Which channels most closely align with the company’s strategy?
• Does the company need to build new channels or eliminate existing ones?
• Does it make more sense to go direct to the end-user or deliver the product through intermediaries?
• What are the economics of the channel?
• What would be the relationship of the company’s sales force in this arrangement?
• How would the company address any potential shifts in power to the channel?
• How do competitors distribute their products?

Promoting and developing a specific brand for the product has many benefits :

It develops a certain perception of the product in consumers’ eyes.

The product’s success will depend on the message conveyed to the consumer and what that consumer ultimately believes about the product.

To maintain a certain perception of exclusivity, traditional advertising (mass or niche), refraining from advertising, word-of-mouth marketing, direct mail, etc., can all be included in promotion and branding.

Here is a list of issues worth analyzing in case interviews:

• How is the marketing strategy different from the competition?
• What message are we trying to communicate? What is the objective?
• Where are we advertising our product (newspapers, TV, radio, Internet, etc.)?
• Pull strategy: (direct at end-user) use of advertising, direct mail, telemarketing, word of mouth, and consumer promotions.
• Push strategy: trade promotions, sales aids, and sales training programs
• How much money is allocated to marketing?
• How are competitors marketing their products?

Ace market sizing questions

Case interview framework 3: the 3 C’s

Knowing the 3C framework and the details upon which the framework is based is crucial to cracking the case .

For instance, the 3C framework is often used to assess the business landscape.

Or by simply defining a growth strategy.

For instance, your market entry framework should include the 3C’s. 

By analyzing the three elements, Consultants can identify the key success factors and create a viable marketing strategy.

DO NOT attempt to tackle a case during the interview by saying, “I would like to use the 3Cs framework…”

Before you even finish your sentence, the interviewer will have decided to reject you.

This point will be emphasized many times during this guide.

A good first step in assessing the business landscape is to examine the customer, the people whose problems the industry is trying to solve.

Below are eight factors to consider when examining the customer.

#1: Customer Identification

Who is the customer?

In trying to identify the customer, remember that the person who makes the purchase decision, the person who pays (the customer), and the end user (the consumer) may all be different people.

For example, a doctor may prescribe medicine that will be paid for by an insurance company (the customer) and ultimately used by a patient (the consumer).

#2: Customer Segmentation

Is it possible to group customers into distinct segments?

Customer segmentation can make it easier to understand customer needs and preferences, the size and growth rate of different revenue streams, and to identify trends.

It may make sense to segment customers by: 1. Age group 2. Gender 3. Income level 4. Employment status 5. Distribution channel 6. Region 7. Product preference 8. Willingness to pay 9. New versus existing customers 10. Large versus small customers.

How big is the market?

How big is each customer segment?

How many customers are there in each segment, and what is the dollar value of those customers?

How fast is the market growing?

What is the growth rate of each customer segment?

#5: Customer Preferences

What do customers want?

Do different customer segments want different things?

Are the needs and preferences of customers changing over time?

#6: Willingness to Pay

How much is each customer segment willing to pay?

How price sensitive is each customer segment?

For example, students will normally be very price sensitive, which means that offering student discounts can increase units sold by enough to increase total revenue.

#7: Bargaining Power

What is the concentration of customers in the market relative to the concentration of firms?

If there is a small number of powerful customers who control the market?

Then it may be necessary to either play by their rules or search for a more favorable market.

Do customers face high switching costs?

If customers face high switching costs, this will reduce their bargaining power and allow firms to charge higher prices than would otherwise be possible.

#8: Distribution

What is the best way to reach customers?

Does each customer segment have a preferred distribution channel?

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Competitors

It is also important to understand the business landscape to understand the competition .

Competition can come from firms within an industry offering similar solutions to the same group of customers (for example, Pepsi and Coca-Cola).

But, competition can also come from firms in other industries who produce substitutes .

Substitutes may have quite different characteristics (for example, petroleum and natural gas).

Still, they represent a form of indirect competition because consumers can use them in place of one another (at least in some circumstances).

For example, petroleum and natural gas might produce heat and energy.

Below are ten factors to consider when examining the competition.

#1: Competitor Identification

Who are the company’s major competitors?

Taking Cadbury as an example, some of its major competitors might include Lindt, Ferrero, Nestlé, Hershey’s, and Mars.

What products and services does the competition offer?

#2: Substitutes

Who are the company’s indirect competitors? That is, which firms are producing substitutes?

Identifying indirect competitors helps to take a broader view of what the company offers.

For example, Cadbury sells chocolate.

But it might be considered a snack food company.

So indirect competitors might include companies like Lays, Cheetos, and Doritos.

#3: Competitor Segmentation

Is it possible to segment competitors in a meaningful way?

The competition might be grouped by distribution channel, region, product line, or customer segment.

#4: Size and Concentration

What are the revenues and market shares of major competitors?

What is the concentration of competitors in the industry?

Are there many small competitors (a low-concentration industry) or a few dominant players (a high-concentration industry)?

Examples of high-concentration industries include oil, tobacco, and soft drinks.

Examples of low-concentration industries include wheat and corn.

#5: Performance

What is the historical performance of the competition?

Relevant performance can be profit margins, net income, and return on investment.

#6: Industry Lifecycle

Where is the industry’s lifecycle (early stage, growth, maturity, or decline)?

#7: Industry Drivers

What drives the industry: brand, product quality, the scale of operations, or technology?

#8: Competitive Advantages

What is the competition good at?

How sustainable are these advantages?

What are the competition’s weaknesses? How easily can these weaknesses be exploited?

#9: Competitive Strategy

What strategy is the competition pursuing?

Is the competition producing products that are low-cost or differentiated?

What customer segments is the competition targeting?

What are the competition’s pricing and distribution strategies?

What is the competition’s growth strategy?

Are they seeking growth by focusing on customer retention, increased sales volume, entering new markets, or launching new products?

#10: Barriers to entry

Key barriers to entry include capital requirements, economies of scale, network effects, product differentiation, proprietary product, technology, government policy, access to suppliers, access to distribution channels, and switching costs. (see Porter’s five forces model).

In assessing the business landscape, it is not enough to understand the customer and the competition.

Understanding the firm from whose perspective you are analyzing the industry is also important .

Below are ten factors to consider when examining the company.

#1: Performance

What is the historical performance of the company?

What is its market share?

If profits are falling, what is the cause of the issue?

#2: Competitive Advantage

What resources and capabilities does the company possess?

Consider tangible assets (property, plant, equipment, inventory, and employees) and intangible assets (brand, patents, copyrights, and specialized knowledge).

How sustainable are the company’s advantages? What are the company’s weaknesses, and can they be remedied?

#3: Competitive Strategy

What is the company’s competitive strategy?

Is the company producing products that are low-cost or differentiated?

Which customer segments does the company target? What are the company’s pricing, distribution, and growth strategies?

#4: Products

What does the company offer, and how does it benefit consumers?

Does the product have any downsides or side effects?

Is the product differentiated?

How does the company’s product offering compare with the competition?

Are there substitutes available?

#5: Finances

If the company is considering a particular course of action, does it have sufficient funds available?

Financing may be secured from various sources, including internal cash reserves, bank loans, shareholder loans, bond issues, or the sale of shares.

How many units will the company need to sell to cover the cost of the project?

Is there sufficient market demand?

#6: Cost Structure

To understand a company’s cost structure, it helps to break each business unit down into the collection of activities performed to produce value for customers.

How each activity is performed, and its economics will determine a firm’s relative cost structure within its industry.

Are costs predominantly fixed or variable?

How does this compare with the competition?

#7: Organisational Cohesiveness

Understanding a firm’s inner workings is important since competitive strategies can fail if they conflict with its culture, systems, and general business.

The organizational aspects of a firm can be examined using the McKinsey 7 S Model.

#8: Marketing

How do customers perceive the company and its products?

How does the company communicate with customers?

#9: Distribution Channels

What distribution channels does the company use to reach customers?

Are there other channels that are more cost-effective or preferred by customers?

#10: Customer Service

Does the company have a customer loyalty program?

How does the company interact with customers and support its customers post-sale?

Are employees empowered to solve problems and delight customers?

Case interview framework 4: PESTEL (or PESTLE)

PESTEL is an acronym for five factors – Political, Economic, Social, Technological, Legal, and Environmental – that can influence a company’s performance or strategic decisions.

A PESTEL analysis examines these external forces that can have strategic implications for the company .

And conducting a PESTEL analysis can be helpful for three reasons:

Understanding the facts : Understanding the big picture can help a business make informed decisions and avoid incorrect assumptions based on past experience.

Anticipating change : Understanding the macro environment can help a business identify trends and anticipate change, allowing it to take advantage of opportunities and manage potential threats.

Avoiding failure : Understanding the macro environment can help a business (and its investors) to identify projects that are likely to fail due to unfavorable conditions.

Below is a list of some of the general issues the interviewee should consider:

Political forces

• Are there any legal or political restrictions, such as new legislation, that would impede the product’s sale?
• What regulations must be addressed before introducing the product (health regulations/antitrust, etc.)?

Economic factors

• Has the economy’s overall performance impacted the sale of my product? Interest rate? Unemployment figures? Exchange rates? Balance of Payments? Free-Trade Agreements?

Socio-cultural forces

• What norms/cultural practices should be considered when entering a new market?
• Are there any trends in religious practices/traditions/rituals that should be considered?

Technological factors

• What are some of the technological trends in the market that could help/diminish the sale of the product (e.g., paper-based media vs. internet)?
• What R&D advancements were made by the market that would have a long-term impact on the very survival of the company (e.g., pay-per-view video vs. video stores)?

Environmental factors

• How does the business affect the environment?

Legal factors

Finally, the folks from the YT channel Business To You have made a great video about the PESTLE model:

Case interview framework 5: Profitability framework

There’s a good chance that the cases discussed during the interview will often touch on issues of declining profitability .

This framework is very helpful in organizing your thoughts and methodically approaching profitability problems.

According to the Profitability Framework’s opening statement, profit is a function of revenue and costs.

A company’s profitability declines when revenue has dropped, costs have risen, or both.

The goal is to identify the component of the equation that is reducing profitability and determine the best course of action for fixing it.

A quick note:

Variable costs are costs that vary with the units sold.

Fixed costs are costs that do not vary with the units sold.

Case interview framework 6: Unit contribution

The following is a framework you can use to help you understand the economics of the product’s contribution.

This framework is critical when forecasting the overall success of the product .

Case interview framework 7: Break Even

A break-even analysis tells you how many units of a product must be sold to cover the fixed and variable production costs.

For instance, this is important when deciding whether to launch a new product.

Also, a break-even analysis concerns a product’s contribution margin (selling price minus variable costs per unit; see the previous section).

So, the contribution margin is the excess between the selling price of the product and the total variable costs .

For example, if an item sells for $100, the total fixed costs are $25 per unit, and the total variable costs are $60 per unit, the product’s contribution margin is $40 ($100 – $60).

This $40 reflects the revenue collected to cover the remaining fixed costs, which are excluded when figuring the contribution margin.

Case interview framework 8: ROI

ROI is an acronym for Return On Investment.

The ROI is a performance measure that a company can use to evaluate the return from an investment or to compare the returns of several different investments .

For example, if you spent $10,000 and made $15,000, your ROI would be 50%.

[ ( $15,000 – $10,000 ) / $10,000 ] x 100% = 50%

Case interview framework 9: Payback

A payback period is the time needed to recover the cost of an investment.

Simply put, it is the time an investment reaches a breakeven point .

For example, if a company invests $300,000 in a new production line, and the production line then produces a positive cash flow of $100,000 per year, then the payback period is 3 years.

Another example:

You are offered to invest in the project $120K.

The project will bring on average $30K a year in net profit.

Using the payback formula, we get a payback period for capital invested of four years (we divided 120,000 by 30,000).

Case interview framework 10: Value Chain

A Value Chain Analysis is a concept first described and popularised by Michael Porter in his 1985 book, Competitive Advantage .

Value Chain Analysis involves identifying all the important business activities and determining which ones give the company a competitive advantage .

Also, a value chain analysis can be performed to identify potential root causes of a business problem.

For instance, a Value Chain Analysis can be undertaken by following three steps:

• Break down a company into its key activities under each heading in the model.
• Identify activities that contribute to the firm’s competitive advantage by giving it a cost advantage or creating product differentiation.
• Develop strategies around the activities that provide a sustainable competitive advantage.

Cost advantage

A business can achieve a cost advantage over its competitors by understanding the costs associated with each activity.

And then organizing each activity so that it is as efficient as possible.

Porter identified ten cost drivers related to each activity in the value chain : 1. Economies of Scale 2. Learning 3. Capacity utilization 4. Linkages among activities 5. Interrelationships among business units 6. Degree of vertical integration 7. Timing of market entry 8. Firm’s policy on targeting cost or product differentiation 9. Geographic location 10. Institutional factors (regulation, union activity, taxes, etc.)

A firm can develop a cost advantage by controlling these ten cost drivers better than its competitors.

A firm can achieve product differentiation by focusing on its core competencies to perform them better than its competitors .

Product differentiation can be achieved through any part of the value chain.

For example, procurement of unique inputs and not widely available to competitors, providing high levels of product support services, or designing innovative and aesthetically attractive products.

Case interview framework 11: Ansoff Matrix

The Product/Market Expansion Matrix (or “Ansoff Matrix” as it is sometimes called) was developed by a Russian-American mathematician named Igor Ansoff.

And it was first explained in his 1957 Harvard Business Review article entitled Strategies for Diversification.

The Product/Market Expansion Matrix can help a firm define a product-market growth strategy by focusing on four growth alternatives :

1. Market Penetration; 2. Market Development; 3. Product Development; and 4. Diversification.

The four alternative growth strategies are:

Market Penetration : A strategy to increase sales without departing from the original product-market strategy. This involves increasing sales to existing customers and finding new customers for existing products.

Market Development : A strategy to sell existing products to new markets (normally with some modifications). Ansoff described this as a strategy “to adapt [the] present product line … to new missions.” For example, Boeing might adapt a passenger aircraft model for cargo transportation.

Product Development : A strategy to sell new products, with new or altered features, to existing markets. Ansoff described this as a strategy to develop products with “new and different characteristics such as will improve the performance of the [existing] mission.” For example, Boeing might develop a new aircraft design with improved fuel economy.

Diversification : A strategy to develop new products for new markets, which can be related to the current business (e.g., vertical integration or horizontal diversification) or unrelated (e.g., conglomerate diversification).

Learn how to create custom case interview frameworks

The question then becomes, “How do you use business frameworks in consulting interviews?”.

On the Internet, numerous suggestions exist for how you ought to proceed.

However, the two main schools of thought are Victor Cheng’s frameworks and Marc Cosentino’s Case In Point.

However, these two approaches have one thing in common: they both attempt to impose pre defined frameworks on cases .

For instance:

For a market entry case, those resources tell you the market entry framework you should use.

And for an M&A case, those resources tell you exactly the merger and acquisition framework you should use.

They push you to adapt the problem to your tools .

Since every case is different, this will inevitably result in average outcomes and rejections.

For instance, 10 different M&A cases should have 10 different merger and acquisition frameworks. 

Another example: 10 different market entry cases should have 10 different market entry frameworks. 

So, you have to learn how to create custom case interview frameworks.

You must create your own unique frameworks using First Principle Thinking .

Those case interview frameworks must be MECE .

To do so, I’ve created free training to help you in that journey .

You can sign up for free with the link below.

Case interview frameworks: Final words

I hope you enjoyed this updated guide to business frameworks.

Those consulting frameworks will help you join a top consulting firm.

Now, I’d like to hear from you:

Which frameworks from today’s guide do you use the most?

Or which frameworks are new to you?

Has this guide helped you develop your business acumen?

Let me know by leaving a quick comment below right now.

To your success,

P.S. Need help with your case interview preparation?

Check whether our coaching program is a good fit. 

Do you know?

We have a unique coaching model and deliver amazing results .

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Mastering Consulting Case Frameworks: A Comprehensive Guide

Looking to excel in consulting case interviews? Our comprehensive guide to mastering consulting case frameworks is here to help! Learn the essential skills and strategies needed to ace your next case interview and land your dream consulting job.

Posted July 31, 2023

Featuring Ben L.

Mastering the Case: Frameworks & Structuring

Wednesday, april 17.

6:00 PM UTC · 60 minutes

Table of Contents

Aspiring and current consultants alike are often presented with a wide range of complex business problems that require critical thinking, flawless logic, and a structured approach to solve. This is where consulting case frameworks come in handy. In this comprehensive guide, we will explore the different types of consulting case frameworks, tips for analyzing data, and how to prioritize key issues to make a compelling recommendation at the end of your analysis.

What are Consulting Case Frameworks and Why are they Important?

Consulting case frameworks are structured approaches to analyzing and solving a complex business problem. Consulting firms use case interviews to evaluate a candidate's ability to break down a problem into its essential parts, identify key issues, develop hypotheses, and recommend solutions. Mastering consulting case frameworks is crucial to succeeding in these interviews and, ultimately, becoming a successful consultant.

There are several types of consulting case frameworks, including profitability, market entry, and mergers and acquisitions. Each framework provides a structured approach to analyzing a specific type of business problem. For example, the profitability framework helps consultants identify the key drivers of a company's profitability and develop recommendations to improve it. Similarly, the market entry framework helps consultants evaluate the feasibility of entering a new market and develop a strategy for doing so. By mastering these frameworks, consultants can quickly and effectively analyze complex business problems and provide valuable insights to their clients.

The Benefits of Mastering Consulting Case Frameworks

When you master consulting case frameworks, you will not only be successful in consulting case interviews but also in your job as a consultant. You will be able to approach client problems with a structured approach, baseline knowledge, and deliver more accurate and effective recommendations. Your approach will also lead to better communication and collaboration with your team and your clients

Additionally, mastering consulting case frameworks can also lead to increased confidence in your problem-solving abilities. By having a clear and structured approach, you will feel more equipped to tackle complex problems and provide valuable insights to your clients. This confidence can also translate to other areas of your work and personal life, as you develop a strong problem-solving mindset.

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How to Approach a Consulting Case Framework

The first step in approaching a consulting case framework is to identify the problem or objective. Understanding the issue at hand will help you determine which framework to apply and where to focus your attention. You need to break down the problem into its essential parts and brainstorm with the interviewer to identify the key issues, limitations, and underlying factors.

Once you have identified the key issues, it is important to prioritize them based on their impact on the problem. This will help you determine which issues to tackle first and which ones can be addressed later. It is also important to consider the resources available to you and the timeline for solving the problem.

After prioritizing the issues, you can start applying the appropriate framework to analyze the problem. There are several frameworks that can be used, such as SWOT analysis, Porter's Five Forces, and the BCG matrix. It is important to choose the framework that best fits the problem at hand and to adapt it as needed throughout the analysis.

Breaking Down the Different Types of Consulting Case Frameworks

Consulting case frameworks can be broken down into three categories: business situation frameworks, market analysis frameworks, and profitability frameworks.

Business situation frameworks are used to identify the root cause of a business problem or opportunity. It includes frameworks such as the 4 Cs (Company, Customer, Competition, and Collaborators), McKinsey 7S, and SWOT (Strengths, Weaknesses, Opportunities, Threats).

Market analysis frameworks are used to analyze external factors that might impact the business. It includes frameworks such as PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) and Porter's Five Forces.

Profitability frameworks are used to analyze revenue, costs, profits, and margins. It includes frameworks such as profit and loss statements, break-even analysis, and price elasticity.

It is important to note that while these frameworks are useful in analyzing different aspects of a business, they should not be used in isolation. A comprehensive approach that combines multiple frameworks and takes into account the unique context of the business is necessary for effective problem-solving and decision-making.

The Most Common Consulting Case Frameworks and How to Use Them

One of the most common consulting case frameworks is the 4 Cs. It is a business situation framework that helps analyze customers, competitors, collaborators, and company capabilities. Another popular framework is the McKinsey 7S framework, which focuses on seven critical elements: strategy, structure, systems, staff, style, skills, and shared values. The PESTLE framework is a market analysis framework that helps identify macroeconomic factors that impact the business.

Profitability frameworks such as the profit and loss statement or break-even analysis are also common frameworks used in practice. These frameworks help analyze revenues, costs, profits, margins, and break-even point.

Another commonly used framework is the SWOT analysis, which stands for strengths, weaknesses, opportunities, and threats. This framework helps identify internal and external factors that affect the business and can be used to develop strategies to address them. The value chain framework is another popular framework that helps identify the activities that add value to the business and those that do not.

It is important to note that while these frameworks are useful tools for analyzing business situations, they should not be used in isolation. It is important to consider the specific context of the business and tailor the framework to fit the situation. Additionally, it is important to use critical thinking skills and not rely solely on the framework to make decisions.

Building a Strong Foundation: Key Concepts to Understand Before Tackling Consulting Case Frameworks

Before digging into consulting case frameworks, there are key concepts that one needs to understand. These concepts include value creation, Porter's five forces, industry analysis, and market segmentation. Understanding these concepts is crucial to your ability to analyze business problems systematically and apply frameworks effectively.

Another important concept to understand is the SWOT analysis, which stands for strengths, weaknesses, opportunities, and threats. This analysis helps you identify the internal and external factors that affect a company's performance. It is a useful tool for developing strategies and making informed decisions.

Additionally, it is essential to have a good understanding of financial statements, such as the income statement, balance sheet, and cash flow statement. These statements provide valuable information about a company's financial health and performance. Being able to analyze financial statements is crucial for identifying areas of improvement and making recommendations to clients.

Tips for Analyzing Data in Consulting Case Frameworks

During the case interview, you will be provided with data, which you need to analyze effectively. The first step is to understand the context and data you are provided. You then need to organize the data into a structured Excel or PowerPoint model that allows you to present your analysis smoothly. Finally, synthesizing the data and focusing on the most critical information will contribute significantly to your success in the case interview.

One important tip for analyzing data in consulting case frameworks is to pay attention to the details. Often, the data provided in the case interview will contain subtle nuances that can significantly impact your analysis. Therefore, it is crucial to carefully review the data and identify any potential inconsistencies or outliers that may affect your conclusions.

Another useful strategy is to leverage your knowledge of industry trends and best practices. By staying up-to-date on the latest developments in your field, you can bring a unique perspective to your analysis and identify opportunities for innovation and growth. Additionally, by demonstrating your expertise in the industry, you can build credibility with your interviewer and showcase your potential as a consultant.

How to Identify and Prioritize Key Issues in a Consulting Case Framework

The process of identifying and prioritizing key issues involves mapping the different problems to the relevant frameworks, breaking down each problem to sub-issues, and using a prioritization matrix to identify which issues to focus on first. Effective problem-solving prioritizes analysis by highest impact, significance, and feasibility.

One important factor to consider when identifying and prioritizing key issues is the client's goals and objectives. Understanding what the client hopes to achieve through the consulting engagement can help consultants determine which issues are most critical to address. Additionally, it is important to consider any constraints or limitations that may impact the feasibility of addressing certain issues.

Another key aspect of identifying and prioritizing key issues is gathering and analyzing data. Consultants must gather relevant data to fully understand the scope and impact of each issue. This data can then be used to prioritize issues based on their potential impact on the client's business and the feasibility of addressing them within the given timeframe and budget.

Developing and Presenting Recommendations Based on Your Analysis

Based on your analysis, you will need to develop and present recommendations. Your recommendations should be anchored in your analysis and provide clear-cut guidance for the client. Providing a clear and structured presentation of your recommendations helps convey your thought process and provides context for your recommendation.

When developing your recommendations, it is important to consider the client's goals and objectives. Your recommendations should align with these goals and provide a clear path forward for the client to achieve them. Additionally, it is important to consider any potential challenges or obstacles that may arise during implementation and provide strategies for overcoming them.

When presenting your recommendations, it is important to tailor your communication style to the client's preferences. Some clients may prefer a more visual presentation, while others may prefer a more detailed written report. It is also important to be prepared to answer any questions or concerns the client may have and to provide additional support as needed to ensure successful implementation of your recommendations.

If you want to be successful in consulting case interviews and become a successful consultant, mastering consulting case frameworks is essential. Understanding the different types of consulting case frameworks, tips for analyzing data, and prioritizing key issues when producing recommendations are all necessary skills you need to develop to become the next premier consultant.

Additionally, it is important to develop strong communication skills to effectively convey your recommendations to clients and team members. This includes being able to clearly articulate your thought process, actively listening to feedback, and adapting your communication style to different audiences.

Furthermore, staying up-to-date with industry trends and news is crucial for success in consulting. This involves regularly reading industry publications, attending conferences and networking events, and seeking out opportunities to learn from experienced consultants in your field.

Equip yourself with specialized knowledge and acquire the skills that top firms demand with these extra articles:

• Mastering Case Interview Math: Essential Formulas
• How to Master BCG Pymetrics: A Comprehensive Guide
• What are the Key Skills Required for a Consultant in Management Consulting?
• How to Network for Management Consulting
• People Management Consulting: The Key to Organizational Success

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• Case Interview: A comprehensive guide
• Pyramid Principle
• Hypothesis driven structure
• Fit Interview
• Consulting math
• The key to landing your consulting job
• What is a case interview?
• What do I need to learn to solve cases?
• How do I practice for case interviews?
• Fit interviews
• Interview day - what to expect, with tips
• How we can help

1. The key to landing your consulting job.

Case interviews - where you are asked to solve a business case study under scrutiny - are the core of the selection process right across McKinsey, Bain and BCG (the “MBB” firms). This interview format is also used pretty much universally across other high-end consultancies; including LEK, Kearney, Oliver Wyman and the consulting wings of the “Big Four”.

If you want to land a job at any of these firms, you will have to ace multiple case interviews.

It is increasingly likely that you will also have to solve online cases given by chatbots etc. You might need to pass these before making it to interview or be asked to sit them alongside first round interviews.

Importantly, case studies aren’t something you can just wing . Firms explicitly expect you to have thoroughly prepared and many of your competitors on interview day will have been prepping for months.

Don’t worry though - MCC is here to help!

This article will take you through a full overview of everything you’ll need to know to do well, linking to more detailed articles and resources at each stage to let you really drill down into the details.

As well as traditional case interviews, we’ll also attend to the new formats in which cases are being delivered and otherwise make sure you’re up to speed with recent trends in this overall part of consulting recruitment.

Before we can figure out how to prepare for a case interview, though, we will first have to properly understand in detail what exactly you are up against. What format does a standard consulting case interview take? What is expected of you? How will you be assessed?

Let's dive right in and find out!

Professional help

Before going further, if this sounds like a lot to get your head around on your own, don't worry - help is available!

Our Case Academy course gives you everything you need to know to crack cases like a pro:

Case Academy Course

To put what you learn into practice (and secure some savings in the process) you can add mock interview coaching sessions with expereinced MBB consultants:

Coaching options

And, if you just want an experienced consultant to take charge of the whole selection process for you, you can check out our comprehensive mentoring programmes:

Explore mentoring

Now, back to the article!

2. What is a case interview?

Before we can hope to tackle a case interview, we have to understand what one is.

In short, a case interview simulates real consulting work by having you solve a business case study in conversation with your interviewer.

This case study will be a business problem where you have to advise a client - that is, an imaginary business or similar organisation in need of guidance.

You must help this client solve a problem and/or make a decision. This requires you to analyse the information you are given about that client organisation and figure out a final recommendation for what they should do next.

Business problems in general obviously vary in difficulty. Some are quite straightforward and can be addressed with fairly standard solutions. However, consulting firms exist precisely to solve the tough issues that businesses have failed to deal with internally - and so consultants will typically work on complex, idiosyncratic problems requiring novel solutions.

Some examples of case study questions might be:

• How much would you pay for a banking licence in Ghana?
• Estimate the potential value of the electric vehicle market in Germany
• How much gas storage capacity should a UK domestic energy supplier build?

Consulting firms need the brightest minds they can find to put to work on these important, difficult projects. You can expect the case studies you have to solve in interview, then, to echo the unique, complicated problems consultancies deal with every day. As we’ll explain here, this means that you need to be ready to think outside the box to figure out genuinely novel solutions.

2.1. What skills do case interviews assess?

Reliably impressing your interviewers means knowing what they are looking for. This means understanding the skills you are being assessed against in some detail.

Overall, it’s important always to remember that, with case studies, there are no strict right or wrong answers. What really matters is how you think problems through, how confident you are with your conclusions and how quick you are with the back of the envelope arithmetic.

The objective of this kind of interview isn’t to get to one particular solution, but to assess your skillset. This is even true of modern online cases, where sophisticated AI algorithms score how you work as well as the solutions you generate.

If you visit McKinsey , Bain and BCG web pages on case interviews, you will find that the three firms look for very similar traits, and the same will be true of other top consultancies.

Broadly speaking, your interviewer will be evaluating you across five key areas:

2.1.1.One: Probing mind

Showing intellectual curiosity by asking relevant and insightful questions that demonstrate critical thinking and a proactive nature. For instance, if we are told that revenues for a leading supermarket chain have been declining over the last ten years, a successful candidate would ask:

“ We know revenues have declined. This could be due to price or volume. Do we know how they changed over the same period? ”

This is as opposed to a laundry list of questions like:

• Did customers change their preferences?
• Which segment has shown the decline in volume?
• Is there a price war in the industry?

2.1.2. Two: Structure

Structure in this context means structuring a problem. This, in turn, means creating a framework - that is, a series of clear, sequential steps in order to get to a solution.

As with the case interview in general, the focus with case study structures isn’t on reaching a solution, but on how you get there.

This is the trickiest part of the case interview and the single most common reason candidates fail.

We discuss how to properly structure a case in more detail in section three. In terms of what your interviewer is looking for at high level, though, key pieces of your structure should be:

• Proper understanding of the objective of the case - Ask yourself: "What is the single crucial piece of advice that the client absolutely needs?"
• Identification of the drivers - Ask yourself: "What are the key forces that play a role in defining the outcome?"

Our Problem Driven Structure method, discussed in section three, bakes this approach in at a fundamental level. This is as opposed to the framework-based approach you will find in older case-solving

Focus on going through memorised sequences of steps too-often means failing to develop a full understanding of the case and the real key drivers.

At this link, we run through a case to illustrate the difference between a standard framework-based approach and our Problem Driven Structure method.

2.1.3. Three: Problem Solving

You’ll be tested on your ability to identify problems and drivers, isolate causes and effects, demonstrate creativity and prioritise issues. In particular, the interviewer will look for the following skills:

• Prioritisation - Can you distinguish relevant and irrelevant facts?
• Connecting the dots - Can you connect new facts and evidence to the big picture?
• Establishing conclusions - Can you establish correct conclusions without rushing to inferences not supported by evidence?

2.1.4. Four: Numerical Agility

In case interviews, you are expected to be quick and confident with both precise and approximated numbers. This translates to:

• Performing simple calculations quickly - Essential to solve cases quickly and impress clients with quick estimates and preliminary conclusions.
• Analysing data - Extract data from graphs and charts, elaborate and draw insightful conclusions.
• Solving business problems - Translate a real world case to a mathematical problem and solve it.

Our article on consulting math is a great resource here, though the extensive math content in our MCC Academy is the best and most comprehensive material available.

2.1.5. Five: Communication

Real consulting work isn’t just about the raw analysis to come up with a recommendation - this then needs to be sold to the client as the right course of action.

Similarly, in a case interview, you must be able to turn your answer into a compelling recommendation. This is just as essential to impressing your interviewer as your structure and analysis.

Consultants already comment on how difficult it is to find candidates with the right communication skills. Add to this the current direction of travel, where AI will be able to automate more and more of the routine analytic side of consulting, and communication becomes a bigger and bigger part of what consultants are being paid for.

So, how do you make sure that your recommendations are relevant, smart, and engaging? The answer is to master what is known as CEO-level communication .

This art of speaking like a CEO can be quite challenging, as it often involves presenting information in effectively the opposite way to how you might normally.

To get it right, there are three key areas to focus on in your communications:

• Top down : A CEO wants to hear the key message first. They will only ask for more details if they think that will actually be useful. Always consider what is absolutely critical for the CEO to know, and start with that. You can read more in our article on the Pyramid Principle .
• Concise : This is not the time for "boiling the ocean" or listing an endless number possible solutions. CEOs, and thus consultants, want a structured, quick and concise recommendation for their business problem, that they can implement immediately.
• Fact-based : Consultants share CEOs' hatred of opinions based on gut feel rather than facts. They want recommendations based on facts to make sure they are actually in control. Always go on to back up your conclusions with the relevant facts.

For more detail on all this, check out our full article on delivering recommendations .

Prep the right way

2.2. where are case interviews in the consulting selection process.

Not everyone who applies to a consulting firm will have a case interview - far from it!

In fact, case interviews are pretty expensive and inconvenient for firms to host, requiring them to take consultants off active projects and even fly them back to the office from location for in-person interviews. Ideally, firms want to cut costs and save time by narrowing down the candidate pool as much as possible before any live interviews.

As such, there are some hoops to jump through before you make it to interview rounds.

Firms will typically eliminate as much as 80% of the applicant pool before interviews start. For most firms, 50%+ of applicants might be cut based on resumes, before a similar cut is made on those remaining based on aptitude tests. McKinsey currently gives their Solve assessment to most applicants, but will use their resulting test scores alongside resumes to cut 70%+ of the candidate pool before interviews.

You'll need to be on top of your game to get as far as an interview with a top firm. Getting through the resume screen and any aptitude tests is an achievement in itself!

For readers not yet embroiled in the selection process themselves, let’s put case interviews in context and take a quick look at each stage in turn. Importantly, note that you might also be asked to solve case studies outside interviews as well…

2.2.1. Application screen

It’s sometimes easy to forget that such a large cut is made at the application stage. At larger firms, this will mean your resume and cover letter is looked at by some combination of AI tools, recruitment staff and junior consulting staff (often someone from your own university).

Only the best applications will be passed to later stages, so make sure to check out our free resume and cover letter guides, and potentially get help with editing , to give yourself the best chance possible.

2.2.2. Aptitude tests and online cases

This part of the selection process has been changing quickly in recent years and is increasingly beginning to blur into the traditionally separate case interview rounds.

In the past, GMAT or PST style tests were the norm. Firms then used increasingly sophisticated and often gamified aptitude tests, like the Pymetrics test currently used by several firms, including BCG and Bain, and the original version of McKinsey’s Solve assessment (then branded as the Problem Solving Game).

Now, though, there is a move towards delivering relatively sophisticated case studies online. For example, McKinsey has replaced half the old Solve assessment with an online case. BCG’s Casey chatbot case now directly replaces a live first round case interview, and in the new era of AI chatbots, we expect these online cases to quickly become more realistic and increasingly start to relieve firms of some of the costs of live interviews.

Our consultants collectively reckon that, over time, 50% of case interviews are likely to be replaced with these kinds of cases. We give some specific advice for online cases in section four. However, the important thing to note is that these are still just simulations of traditional case interviews - you still need to learn how to solve cases in precisely the same way, and your prep will largely remain the same.

2.2.3. Rounds of Interviews

Now, let’s not go overboard with talk of AI. Even in the long term, the client facing nature of consulting means that firms will have live case interviews for as long as they are hiring anyone. And in the immediate term, case interviews are still absolutely the core of consulting selection.

Before landing an offer at McKinsey, Bain, BCG or any similar firm, you won’t just have one case interview, but will have to complete four to six case interviews, usually divided into two rounds, with each interview lasting approximately 50-60 minutes .

Being invited to first round usually means two or three case interviews. As noted above, you might also be asked to complete an online case or similar alongside your first round interviews.

If you ace first round, you will be invited to second round to face the same again, but more gruelling. Only then - after up to six case interviews in total, can you hope to receive an offer.

2.3. Typical case interview format

Before we dive in to the nuts and bolts of case cracking, we should give you a bit more detail on what exactly you’ll be up against on interview day.

Case interviews come in very similar formats across the various consultancies where they are used.

The standard case interview can be thought of as splitting into two standalone sub-interviews. Thus “case interviews” can be divided into the case study itself and a “fit interview” section, where culture fit questions are asked.

This can lead to a bit of confusion, as the actual case interview component might take up as little as half of your scheduled “case interview”. You need to make sure you are ready for both aspects.

To illustrate, here is the typical case interview timeline:

• First 15-30 minutes: Fit Interview - with questions assessing your motivation to be a consultant in that specific firm and your traits around leadership and teamwork. Learn more about the fit interview in our in-depth article here .
• Next 30-40 minutes: Case Interview - solving a case study
• Last 5 minutes: Fit Interview again - this time focussing on your questions for your interviewer.

Both the Case and Fit interviews play crucial roles in the finial hiring decision. There is no “average” taken between case and fit interviews: if your performance is not up to scratch in either of the two, you will not be able to move on to the next interview round or get an offer.

NB: No case without fit

Note that, even if you have only been told you are having a case interview or otherwise are just doing a case study, always be prepared to answer fit questions. At most firms, it is standard practice to include some fit questions in all case interviews, even if there are also separate explicit fit interviews, and interviewers will almost invariably include some of these questions around your case. This is perfectly natural - imagine how odd and artificial it would be to show up to an interview, simply do a case and leave again, without talking about anything else with the interviewer before or after.

2.4. Differences between first and second round interviews

Despite interviews in the first and second round following the same format, second/final round interviews will be significantly more intense. The seniority of the interviewer, time pressure (with up to three interviews back-to-back), and the sheer value of the job at stake will likely make a second round consulting case interview one of the most challenging moments of your professional life.

There are three key differences between the two rounds:

• Time Pressure : Final round case interviews test your ability to perform under pressure, with as many as three interviews in a row and often only very small breaks between them.
• Focus : Since second round interviewers tend to be more senior (usually partners with 12+ years experience) and will be more interested in your personality and ability to handle challenges independently. Some partners will drill down into your experiences and achievements to the extreme. They want to understand how you react to challenges and your ability to identify and learn from past mistakes.
• Psychological Pressure: While case interviews in the first round are usually more focused on you simply cracking the case, second round interviewers often employ a "bad cop" strategy to test the way you react to challenges and uncertainty.

2.5. Differences between firms

For the most part, a case interview is a case interview. However, firms will have some differences in the particular ways they like to do things in terms of both the case study and the fit component.

As we’ll see, these differences aren’t hugely impactful in terms of how you prepare. That said, it's always good to know as much as possible about what you will be going up against.

2.5.1. Candidate led vs interviewer led case formats

Most consulting case interview questions test your ability to crack a broad problem, with a case prompt often going something like:

" How much would you pay to secure the rights to run a restaurant in the British Museum? "

You, as a candidate, are then expected to identify your path to solve the case (that is, provide a structure), leveraging your interviewer to collect the data and test your assumptions.

This is known as a “candidate-led” case interview and is used by Bain, BCG and other firms.

However, a McKinsey case interview - especially in the first round - is slightly different, with the interviewer controlling the pace and direction of the conversation much more than with other case interviews.

At McKinsey, your interviewer will ask you a set of pre-determined questions, regardless of your initial structure. For each question, you will have to understand the problem, come up with a mini structure, ask for additional data (if necessary) and come to the conclusion that answers the question.

McKinsey’s cases are thus referred to as “interviewer-led”. This more structured format of case also shows up in online cases by other firms - notably including BCG’s Casey chatbot (with the amusing result that practising McKinsey-style cases can be a great addition when prepping for BCG).

Essentially, these interviewer-led case studies are large cases made up of lots of mini-cases. You still use basically the same method as you would for standard (or candidate-led) cases - the main difference is simply that, instead of using that method to solve one big case, you are solving several mini-cases sequentially.

2.5.2. The McKinsey PEI

McKinsey brands its fit aspect of interviews as the Personal Experience Interview or PEI. Despite the different name, this is really much the same interview you will be going up against in Bain, BCG and any similar firms.

McKinsey does have a reputation for pushing candidates a little harder with fit or PEI questions, focusing on one story per interview and drilling down further into the specific details each time. We discuss this tendency more in our fit interview article. However, no top end firm is going to go easy on you and you should absolutely be ready for the same level of grilling at Bain, BCG and others. Thus any difference isn’t hugely salient in terms of prep.

2.6. How are things changing in 2023?

For the foreseeable future, you are going to have to go through multiple live case interviews to secure any decent consulting job. These might increasingly happen via Zoom rather than in person, but they should remain largely the same otherwise.

However, things are changing and the rise of AI in recent months seems pretty much guaranteed to accelerate existing trends.

Even before the explosive development of AI chatbots like ChatGPT we have seen in recent months, automation was already starting to change the recruitment process.

As we mentioned, case interviews are expensive and inconvenient for firms to run. Ideally, then, firms will try to reduce the number of interviews required for recruitment as far as possible. For many years, tests of various kinds served to cut down the applicant pool and thus the number of interviews. However, these tests had a limited capacity to assess candidates against the full consulting skillset in the way that case interviews do so well.

More recently, though, the development of online testing has allowed for more and more advanced assessments. Top consulting firms have been leveraging screening tests that better and better capture the same skillset as case interviews. Eventually this is converging on automated case studies. We see this very clearly with the addition of the Redrock case to McKinsey’s Solve assessment.

As these digital cases become closer to the real thing, the line between test and interview blurs. Online cases don’t just reduce the number of candidates to interview, but start directly replacing interviews.

Case in point here is BCG’s Casey chatbot . Previously, BCG had deployed less advanced online cases and similar tests to weed out some candidates before live case interviews began. Now, though, Casey actually replaces one first round case interview.

Casey, at time of writing, is still a relatively “dumb” chatbot, basically running through a pre-set script. The Whatsapp-like interface does a lot of work to make it feel like one is chatting to a “real person” - the chatbot itself, though, cannot provide feedback or nudges to candidates as would a human interviewer.

We fully expect that, as soon as BCG and other firms can train a truer AI, these online cases will become more widespread and start replacing more live interviews.

We discuss the likely impacts of advanced AI on consulting recruitment and the industry more broadly in our blog.

Here, though, the real message is that you should expect to run into digital cases as well as traditional case interviews.

Luckily, despite any changes in specific format, you will still need to master the same fundamental skills and prepare in much the same way.

We’ll cover a few ways to help prepare for chatbot cases in section four. Ultimately, though, firms are looking for the same problem solving ability and mindset as a real interviewer. Especially as chatbots get better at mimicking a real interviewer, candidates who are well prepared for case cracking in general should have no problem with AI administered cases.

2.6.1. Automated fit interviews

Analogous to online cases, in recent years there has been a trend towards automated, “one way” fit interviews, with these typically being administered for consultancies by specialist contractors like HireVue or SparkHire.

These are kind of like Zoom interviews, but if the interviewer didn’t show up. Instead you will be given fit questions to answer and must record your answer in your computer webcam. Your response will then go on to be assessed by an algorithm, scoring both what you say and how you say it.

Again, with advances in AI, it is easy to imagine these automated interviews going from fully scripted interactions, where all candidates are asked the same list of questions, to a more interactive experience. Thus, we might soon arrive at a point where you are being grilled on the details of your stories - McKinsey PEI style - but by a bot rather than a human.

We include some tips on this kind of “one way” fit interview in section six here.

3. What do I need to learn to solve cases?

If you’re new to case cracking. You might feel a bit hopeless when you see a difficult case question, not having any idea where to start.

In fact though, cracking cases is much like playing chess. The rules you need to know to get started are actually pretty simple. What will make you really proficient is time and practice.

In this section, we’ll run through a high level overview of everything you need to know, linking to more detailed resources at every step.

3.1. Business fundamentals

Obviously, you are going to need to be familiar with basic business concepts in order to understand the case studies you are given in the first instance.

If you are coming from a business undergrad, an MBA or are an experienced hire, you might well have this covered already.

However, many consultants will be entering from engineering or similar backgrounds and the major consulting firms are hiring more and more PhDs and non-MBA master's graduates from all subjects. These individuals will need to get up to speed on business fundamentals.

Luckily, you don’t need a degree-level understanding of business to crack interview cases, and a lot of the information you will pick up by osmosis as you read through articles like this and go through cases.

However, some things you will just need to sit down and learn. We cover everything you need to know in some detail in our Case Academy course. However, some examples here of things you need to learn are:

• Basic accounting (particularly how to understand all the elements of a balance sheet)
• Basic economics
• Basic marketing
• Basic strategy

Note, though, that learning the very basics of business is the beginning rather than the end of your journey.

Once you are able to “speak business” at a rudimentary level, you should try to “become fluent” and immerse yourself in reading/viewing/listening to as wide a variety of business material as possible, getting a feel for all kinds of companies and industries - and especially the kinds of problems that can come up in each context and how they are solved.

The material put out by the consulting firms themselves is a great place to start, but you should also follow the business news and find out about different companies and sectors as much as possible between now and interviews. Remember, if you’re going to be a consultant, this should be fun rather than a chore!

3.2. How to solve cases like a real consultant

This is the really important bit.

If you look around online for material on how to solve case studies, a lot of what you find will set out framework-based approaches. However, as we have mentioned, these frameworks tend to break down with more complex, unique cases - with these being exactly the kind of tough case studies you can expect to be given in your interviews.

To address this problem, the MyConsultingCoach team has developed a new, proprietary approach to case cracking that replicates how top management consultants approach actual engagements.

MyConsultingCoach’s Problem Driven Structure approach is a universal problem solving method that can be applied to any business problem , irrespective of its nature.

As opposed to just selecting a generic framework for each case, the Problem Driven Structure approach works by generating a bespoke structure for each individual question and is a simplified version of the roadmap McKinsey consultants use when working on engagements.

The canonical seven steps from McKinsey on real projects are simplified to four for case interview questions, as the analysis required for a six-month engagement is somewhat less than that needed for a 45-minute case study. However, the underlying flow is the same.

This video has more information on how frameworks can be unreliable and how we address this problem:

Otherwise, let's zoom in to see how our method actually works in more detail:

3.2.1. Identify the problem

Identifying the problem means properly understanding the prompt/question you are given, so you get to the actual point of the case.

This might sound simple, but cases are often very tricky, and many candidates irretrievably mess things up within the first few minutes of starting. Often, they won’t notice this has happened until they are getting to the end of their analysis. Then, they suddenly realise that they have misunderstood the case prompt - and have effectively been answering the wrong question all along!

With no time to go back and start again, there is nothing to do. Even if there were time, making such a silly mistake early on will make a terrible impression on their interviewer, who might well have written them off already. The interview is scuppered and all the candidate’s preparation has been for nothing.

This error is so galling as it is so readily avoidable.

Our method prevents this problem by placing huge emphasis on a full understanding of the case prompt. This lays the foundations for success as, once we have identified the fundamental, underlying problem our client is facing, we focus our whole analysis around finding solutions to this specific issue.

Now, some case interview prompts are easy to digest. For example, “Our client, a supermarket, has seen a decline in profits. How can we bring them up?”. However, many of the prompts given in interviews for top firms are much more difficult and might refer to unfamiliar business areas or industries. For example, “How much would you pay for a banking license in Ghana?” or “What would be your key areas of concern be when setting up an NGO?”

Don’t worry if you have no idea how you might go about tackling some of these prompts!

In our article on identifying the problem and in our full lesson on the subject in our MCC Academy course, we teach a systematic, four step approach to identifying the problem , as well as running through common errors to ensure you start off on the right foot every time!

This is summarised here:

Following this method lets you excel where your competitors mess up and get off to a great start in impressing your interviewer!

3.2.2. Build your problem driven structure

After you have properly understood the problem, the next step is to successfully crack a case is to draw up a bespoke structure that captures all the unique features of the case.

This is what will guide your analysis through the rest of the case study and is precisely the same method used by real consultants working on real engagements.

Of course, it might be easier here to simply roll out one an old-fashioned framework, and a lot of candidates will do so. This is likely to be faster at this stage and requires a lot less thought than our problem-driven structure approach.

However, whilst our problem driven structure approach requires more work from you, our method has the advantage of actually working in the kind of complex case studies where generic frameworks fail - that is exactly the kind of cases you can expect at an MBB interview .

Since we effectively start from first principles every time, we can tackle any case with the same overarching method. Simple or complex, every case is the same to you and you don’t have to gamble a job on whether a framework will actually work

In practice, structuring a problem with our method means drawing up either an issue tree or an hypothesis tree , depending on how you are trying to address the problem.

These trees break down the overall problem into a set of smaller problems that you can then solve individually. Representing this on a diagram also makes it easy for both you and your interviewer to keep track of your analysis.

To see how this is done, let’s look at the issue tree below breaking down the revenues of an airline:

These revenues can be segmented as the number of customers multiplied by the average ticket price. The number of customers can be further broken down into a number of flights multiplied by the number of seats, times average occupancy rate. The node corresponding to the average ticket price can then be segmented further.

It is worth noting that the same problem can be structured in multiple valid ways by choosing different means to segment the key issues.

That said, not all valid structures are equally useful in solving the underlying problem. A good structure fulfils several requirements - including MECE-ness , level consistency, materiality, simplicity, and actionability. It’s important to put in the time to master segmentation, so you can choose a scheme isn’t only valid, but actually useful in addressing the problem.

After taking the effort to identify the problem properly, an advantage of our method is that it will help ensure you stay focused on that same fundamental problem throughout. This might not sound like much, but many candidates end up getting lost in their own analysis, veering off on huge tangents and returning with an answer to a question they weren’t asked.

Another frequent issue - particularly with certain frameworks - is that candidates finish their analysis and, even if they have successfully stuck to the initial question, they have not actually reached a definite solution. Instead, they might simply have generated a laundry list of pros and cons, with no clear single recommendation for action.

Clients employ consultants for actionable answers, and this is what is expected in the case interview. The problem driven structure excels in ensuring that everything you do is clearly related back to the key question in a way that will generate a definitive answer. Thus, the problem driven structure builds in the hypothesis driven approach so characteristic of real consulting practice.

You can learn how to set out your own problem driven structures in our article here and in our full lesson in the MCC Academy course.

Join thousands of other candidates cracking cases like pros

3.2.3. lead the analysis.

A problem driven structure might ensure we reach a proper solution eventually, but how do we actually get there?

We call this step " leading the analysis ", and it is the process whereby you systematically navigate through your structure, identifying the key factors driving the issue you are addressing.

Generally, this will mean continuing to grow your tree diagram, further segmenting what you identify as the most salient end nodes and thus drilling down into the most crucial factors causing the client’s central problem.

Once you have gotten right down into the detail of what is actually causing the company’s issues, solutions can then be generated quite straightforwardly.

To see this process in action, we can return to our airline revenue example:

Let’s say we discover the average ticket price to be a key issue in the airline’s problems. Looking closer at the drivers of average ticket price, we find that the problem lies with economy class ticket prices. We can then further segment that price into the base fare and additional items such as food.

Having broken down the issue to such a fine-grained level, solutions occur quite naturally. In this case, we can suggest incentivising the crew to increase onboard sales, improving assortment in the plane, or offering discounts for online purchases.

Our article on leading the analysis is a great primer on the subject, with our video lesson in the MCC Academy providing the most comprehensive guide available.

3.2.4. Provide recommendations

So you have a solution - but you aren’t finished yet!

Now, you need to deliver your solution as a final recommendation.

This should be done as if you are briefing a busy CEO and thus should be a one minute, top-down, concise, structured, clear, and fact-based account of your findings.

The brevity of the final recommendation belies its importance. In real life consulting, the recommendation is what the client has potentially paid millions for - from their point of view, it is the only thing that matters.

In an interview, your performance in this final summing up of your case is going to significantly colour your interviewer’s parting impression of you - and thus your chances of getting hired!

So, how do we do it right?

Barbara Minto's Pyramid Principle elegantly sums up almost everything required for a perfect recommendation. The answer comes first , as this is what is most important. This is then supported by a few key arguments , which are in turn buttressed by supporting facts .

Across the whole recommendation, the goal isn’t to just summarise what you have done. Instead, you are aiming to synthesize your findings to extract the key "so what?" insight that is useful to the client going forward.

All this might seem like common sense, but it is actually the opposite of how we relay results in academia and other fields. There, we typically move from data, through arguments and eventually to conclusions. As such, making good recommendations is a skill that takes practice to master.

We can see the Pyramid Principle illustrated in the diagram below:

To supplement the basic Pyramid Principle scheme, we suggest candidates add a few brief remarks on potential risks and suggested next steps . This helps demonstrate the ability for critical self-reflection and lets your interviewer see you going the extra mile.

The combination of logical rigour and communication skills that is so definitive of consulting is particularly on display in the final recommendation.

Despite it only lasting 60 seconds, you will need to leverage a full set of key consulting skills to deliver a really excellent recommendation and leave your interviewer with a good final impression of your case solving abilities.

Our specific article on final recommendations and the specific video lesson on the same topic within our MCC Academy are great, comprehensive resources. Beyond those, our lesson on consulting thinking and our articles on MECE and the Pyramid Principle are also very useful.

3.3. Common case types and the building blocks to solve them

You should tackle each new case on its own merits. However, that’s not to say there aren’t recurring themes that come up fairly reliably in cases - there absolutely are. Business is business and case studies will often feature issues like profitability, competition etc.

Old fashioned framework approaches would have you simply select a defined framework for each kind of case and, in effect, just run the algorithm and wait for a solution to fall out.

We’ve already explained how frameworks can let you down. In this context, too many candidates will fall into the trap of selecting a framework for that case type that simply won’t work for their specific case.

The counterpoint in favour of frameworks, though, is that they are at least fast and prevent you having to start from the ground up with a common kind of case.

Ideally, you should have the best of both worlds - and this is why, in our articles on this site and in our MCC Academy course, we have developed a set of “building bocks” for common case themes.

As they name suggests, building blocks give you modular components for different kinds of case to help build out your own custom structures faster. These then allow you to leverage the symmetries between cases without inheriting the inflexibility of frameworks.

Let’s take a look at five different case types and get a brief idea of how our building block approach helps you with each. You can find more detail on each in the full length articles linked, as well as in the full-length video lessons in our MCC Academy course.

3.3.1. Estimation

Consultants need to push forward to provide definitive recommendations to clients in a timely manner despite typically not having access to full information on a problem. Estimation of important quantities is therefore at the heart of real life consulting work.

Estimation is thus just as fundamental to case cracking.

A case interview might centre on an estimation question, and this might be quite common for a first round interview. However, estimation is also very likely to be a crucial part of pretty well any other kind of case question you receive is likely to include estimation as a crucial component of your analysis.

The kinds of estimation you might be asked to make in a case interview can be very daunting:

• How many bank branches are there in Italy?
• How many cars are sold in Berlin in one year?
• How many people will buy the latest high-tech smartphone on the market?

You might have no idea where to begin with these examples. However, tempting as it might be, your answer cannot ever be a simple guess .

A decent estimation does have a guessed element - though this should really be an educated guess based on some pre-existing knowledge. However, this guessed element is always then combined with a rigorous quantitative method to arrive at a reasonable estimation.

In context of a case interview, it’s important to realise that your interviewer doesn’t really care about the right answer (they don’t need to ask you to find out, after all). What’s important is showing the rational process by which you get to your answer.

A guess that was somehow exactly correct is no good compared to a “wrong” answer that was reached by a very sensible, intelligent process of estimation. In cases, this method will often be a matter of segmentation.

So, where would we start in working out how many cars are sold in Berlin, for example?

The key to estimation case questions is the ability to logically break down the problem into more manageable pieces. In consulting case studies, this will generally mean segmenting a wider population to find a particular target group. For example, starting from the total population of Berlin and narrowing down to the cohort of individuals who will buy a car that year.

There are usually many ways to segment the same starting population, and several different segmentation schemes might be equally valid. However, it is crucial to choose the specific method best suited to the goal in answering the question and allowing you to best leverage the data you have available.

Segmentation must be allied with assumptions in order to arrive at an estimation. These assumptions are the “guessed” element of estimations we mentioned above. Assumptions cannot just be plucked from thin air, but must always be reasonable .

The example below showcases both the segmentation and assumptions made in an estimation of the size of the wedding planning market in London:

Our articles on estimation and the MECE concept are great starting points in getting to grips with consulting estimation. However, the best place to learn how to make estimations is with the dedicated building block video lesson in our MCC Academy course.

Those of you from physics or engineering backgrounds will probably see a lot in common with Fermi questions . We have plenty of estimation cases for you to work through in our free case library. However, Fermi questions are a great way of getting a little extra practice and you can find a lifetime’s supply online.

3.3.2. Profitability

The fundamental goal of any normal business is to maximise profits - nobody is getting up and going to work to lose money. Even Silicon Valley tech start-ups are supposed to be profitable some day!

Profitability problems are thus bread and butter issues for management consultants.

Clients often tell consultants broadly the same story. The business was doing in well in recent years, with strong profits. However, some recent turn of events has upset the status quo and led to concerns around profit levels. Consultants are brought in as businesses are often sufficiently complex that it can be difficult to figure out precisely where and why the company is losing money - let alone how to then reverse the situation and restore healthy profits.

Despite steady growth in customer flow, the Walfort supermarket chain has seen falling profits in the past year. What is the reason for this decline?

Understanding profitability ultimately means understanding the various components that determine a company’s profit. You will need to learn to decompose profit first into revenues and costs (profit being the synthesis of these two factors). Crucially, you then need to segment further, distinguishing different specific revenue streams and separating various fixed and variable costs.

To take an example, just examining the revenue side of profit, the incoming revenues for an insurance firm might be broken down as follows:

Improving profitability will inherently mean increasing revenues and/or decreasing costs. To solve profitability problems, we thus have to understand the ways we can minimise different costs, as well as ways to drive sales and/or optimise pricing to increase revenue. Importantly, you must be able to judge which of these options is best suited to address specific scenarios.

The key to tackling the complex kind of profitability questions given by MBB-level consultancies lies in this proper segmentation.

By contrast, old-fashioned case interview frameworks will simply have you look at aggregate cost and revenue data before recommending generic cost-cutting or revenue-driving measures. However, this will often lead to negative outcomes in more involved cases, making matters worse for the client.

For example, it might well be that a company actually makes a loss when it serves a certain cohort of customers. An airline, for instance, might lose money on economy class customers but make a healthy profit on each business class customer. Attempts to boost revenue by increasing sales across the board might actually reduce profit further by increasing the number of economy class customers. What is required is targeted measures to increase focus on business class and/or mitigate economy class losses.

You can start learning to segment these kinds of cases properly in our article on profitability , whilst the best way to really master profitability questions is our full lesson on the subject in the Building Blocks section of our MCC Academy course.

3.3.3. Pricing

For a company to be profitable at all, it is a pre-requisite that it charges the right price for whatever it sells. However, establishing what price to charge for any one product - or indeed a whole suite of related products - can be a highly complex business.

Consultants are often engaged to negotiate the many variables, with all their complex interdependencies, at play in pricing. Correspondingly, then, pricing is a common theme in case interviews.

• A company launches a new smartphone with a significantly improved camera. How much should they charge?
• A doughnut chain wants to start selling coffee in their shops. How much should they charge per cup?

Clearly, lot of different factors can influence the answers to these questions, and it can be difficult to know where to start. To get a handle on all this complexity, you will need to take a methodical, structured approach.

To really understand pricing, you must begin from fundamentals like the customer’s willingness to pay, the value captured by the company, and the value created for the customer. These basics are shown in the diagram below:

This might seem simple enough, but the exact level at which prices are ultimately set is determined by a whole host of factors, including product availability, market trends, and the need to maintain a competitive position within the market. In particular, if we are changing the price of an existing product, we must consider how the price elasticity of demand might cause sales to fluctuate.

Our four-step method for pricing starts from establishing the customer’s next best alternative, calculating the value added by our own product, and working from there. A summary of this method is given, along with an overview of pricing in general, in our article on the subject . However, the most complete resource is our pricing lesson in the MCC Academy .

3.3.4. Valuation

Valuation is fundamental to any kind of investment. Before allocating capital towards a particular opportunity, an investor must understand precisely what value it holds and how this compares to the other available options.

In short, valuation tells us how much we should be willing to pay to acquire a company or an asset.

There are many ways to value an asset - indeed the finer points are still subject to research in both the academic and private sectors.

Standard ways to assign value include asset-based valuations (notably the Net Asset Value or NAV) and the various multiples so widely used by market traders.

However, in consulting case interviews, you will only usually need to be familiar with Net Present Value (NPV) . This means you need to learn and master the NPV equation:

CF = Cash Flow r = Discount Rate

Whilst this is a pretty simple equation on the face of it, in order to make proper use of it, you will also need to develop a feel for interest/discount rates appropriate to different cases. This will be essential, as you will often have to estimate rational values for these rates for different investments before plugging those values into the NPV equation. Our Case Academy course has more detail here.

Note, though, that NPV is only really half the story.

NPV provides a kind of “absolute” value for an asset. However, the fact is that the worth of any asset will be different for different buyers , depending largely upon what the buyer already owns. In just the same way a spare clutch for a 1975 Ford will be a lot less valuable to a cyclist than to someone restoring the relevant classic car, so a courier business will be more valuable to an online retailer than to an airline.

As such, what we call the Total Enterprise Value (TEV) of an asset is calculated as a function of that asset’s NPV and of the potential cost and revenue synergies resulting from an acquisition. This is shown in the useful structure below:

You can learn more about all aspects of valuation in our article here , as well as in our dedicated video lesson in MCC Academy . These include guides to the kind of interest rates typically required to finance different kinds of investment.

3.3.5. Competitive Interactions

Most of what we’ve discussed so far in terms of case themes and our building block approach to them will all depend upon the prevailing competitive landscape our client exists within. Product prices, profit levels and ultimately valuations can all change over time in response to competition.

What is more, the zero sum dynamics of competitive interactions mean that these things can change quickly .

Companies enjoying near monopolies for years or even decades can quickly see their values go to zero, or near enough, in the face of some innovation by a competitor coming onto the market.

Nokia and Kodak thoroughly dominated the mobile phone and photography markets respectively - until new companies with new products pulled the rug out from under them and led to precipitous collapses.

New market entrants or old competitors with new ideas can throw a company’s whole business model up in the air overnight . Complex decisions about profound changes need to be made yesterday. Firms trying to save themselves will often slash prices in attempts to maintain sales - though this can actually make things worse and result in a corporate death-spiral. Consultants are then frequently called in to help companies survive - with this type of engagement carrying over to inform case interview questions.

You are running an airline and a low-cost competitor, like Ryanair, decides to start operating on your routes. You are rapidly losing customers to their lower fares. How do you respond?

Your eventual solutions to competitive interaction problems will likely need to be novel and unique to the situation. However, the process by which we understand competitive interactions and move towards those solutions is usually very methodical, moving through the limited dimensions in which a company can take action.

The following structure neatly encodes the general options open to responding to new sources of competition:

Of course, we would never suggest that you blanket-apply any strict, inflexible methodology to a whole swathe of case questions – this is precisely the approach that causes so much trouble for candidates using old-fashioned frameworks.

This structure is only a starting point - a shortcut to a bespoke framework specific to the case question in hand. You might well have to alter the details of the structure shown and you will almost certainly have to expand it as you lead the analysis . How you build out your structure and the solutions you provide are necessarily going to depend upon the specific details of the case question.

Thus, in order to deal with competitive interactions, you will need to put in the time to understand how the different strategies available function - as well as how competitors might then react to implementing such strategies. With enough practice, though, soon you won’t be fazed by even the most complex cases of competition between firms.

You can learn more in our article here and in our dedicated video lesson on competitive interaction in the MCC Academy case interview course.

3.4. Mental mathematics

Almost every interview case study will feature some mental mathematics and this is an area where many many candidates let themselves down.

As such, it makes sense to out in the time and make sure you are fully proficient.

Nothing beyond high school level is required, but you probably don’t do much mental arithmetic day to day and will likely need to practice quite a lot to get good enough to reliably perform at pace, under pressure.

We give a high-level overview of what you need to know in our consulting math article , but devote a whole section of our MCC Academy course to a deep dive on consulting math, with plenty of practice material to get you up to scratch.

4. How do I practice for case interviews?

As we said above - case interviews are much like chess. The rules are relatively quick to learn, but you need to practice a lot to get good.

If you’re working through our MCC Academy course, we recommend getting through the core Problem Driven Structure section. After that, you should be practising alongside working through the remainder of the course and beyond. However you do things, you need to get up to speed with the fundamentals before practice is going to do much more than confuse you.

Of course, if you’re enrolled in one of our mentoring programmes , your mentor will let you know precisely when and how you should be scheduling practice, as well as tracking your progress throughout.

4.1. Solo Practice

For solitary preparation, one of the best uses of your time is to work on your mental mathematics . This skill is neglected by many applicants - much to their immediate regret in the case interview. Find our mental math tool here or in our course, and practice at least ten minutes per day, from day one until the day before the interview.

Once you've covered our Building Blocks section, you should then start working through the cases in My Consulting Coach's case bank alongside your work on the course. This is a large library of case interview questions and answers in different formats and difficulties.

To build your confidence, start out on easier case questions, work through with the solutions, and don't worry about time. As you get better, you can move on to more difficult cases and try to get through them more quickly. You should practice around eight case studies on your own to build your confidence.

4.2. Peer practice

One you have worked through eight cases solo, you should be ready to simulate the interview more closely and start working with another person.

Here, many candidates turn to peer practice - that is, doing mock case interviews with friends, classmates or others also applying to consulting.

If you’re in university, and especially in business school, there will very likely be a consulting club for you to join and do lots of case practice with. If you don’t have anyone to practice, though, or if you just want to get a bit more volume in with others, our free meeting board lets you find fellow applicants from around the world with whom to practice.

4.3. Professional practice

You can do a lot practising by yourself and with peers. However, nothing will bring up your skills so quickly and profoundly as working with a real consultant.

Perhaps think about it like boxing. You can practice drills and work on punch bags all you want, but at some point you need to get into the ring and do some actual sparring if you ever want to be ready to fight.

Of course, it isn’t possible to secure the time of experienced top-tier consultants for free. However, when considering whether you should invest to boost your chances of success, it is worth considering the difference in your salary over even a just few years between getting into a top-tier firm versus a second-tier one. In the light of thousands in increased annual earnings (easily accumulating into millions over multiple years), it becomes clear that getting expert interview help really is one of the best investments you can make in your own future.

Should you decide to make this step, MyConsultingCoach can help, offering the highest quality case interview coaching service available . Each MCC case coach is selected as an MBB consultant with two or more years of experience and strong coaching expertise.

Case interview coaching is hugely beneficial in itself. However, for those who want to genuinely maximise their chances of securing a job offer - and especially for time-poor, busy professionals or hard-pressed students who want to take the guesswork and wasted time out of their case interview prep - we also offer a much more comprehensive service .

With one of our bespoke mentoring programmes , you are paired with a 5+ year experienced, ex-MBB mentor of your choosing, who will then oversee your whole case interview preparation from start to finish - giving you your best possible chance of landing a job!

4.4. Practice for online cases

Standard preparation for interview case studies will carry directly over to online cases.

However, if you want to do some more specific prep, you can work through cases solo to a timer and using a calculator and/or Excel (online cases generally allow calculators and second computers to help you, whilst these are banned in live case interviews).

Older PST-style questions also make great prep, but a particularly good simulation is the self-assessment tests included in our Case Academy course . These multiple choice business questions conducted with a strict time limit are great preparation for the current crop of online cases.

5. Fit interviews

As we’ve noted, even something billed as a case interview is very likely to contain a fit interview as a subset.

We have an article on fit interviews and also include a full set of lessons on how to answer fit questions properly as a subset of our comprehensive Case Academy course .

Here though, the important thing to convey is that you take preparing for fit questions every bit as seriously as you do case prep.

Since they sound the same as you might encounter when interviewing for other industries, the temptation is to regard these as “just normal interview questions”.

However, consulting firms take your answers to these questions a good deal more seriously than elsewhere.

This isn’t just for fluffy “corporate culture” reasons. The long hours and close teamwork, as well as the client-facing nature of management consulting, mean that your personality and ability to get on with others is going to be a big part of making you a tolerable and effective co-worker.

If you know you’ll have to spend 14+ hour working days with someone you hire and that your annual bonus depends on them not alienating clients, you better believe you’ll pay attention to their character in interview.

There are also hard-nosed financial reasons for the likes of McKinsey, Bain and BCG to drill down so hard on your answers.

In particular, top consultancies have huge issues with staff retention. The average management consultant only stays with these firms for around two years before they have moved on to a new industry.

In some cases, consultants bail out because they can’t keep up with the arduous consulting lifestyle of long hours and endless travel. In many instances, though, departing consultants are lured away by exit opportunities - such as the well trodden paths towards internal strategy roles, private equity or becoming a start-up founder.

Indeed, many individuals will intentionally use a two year stint in consulting as something like an MBA they are getting paid for - giving them accelerated exposure to the business world and letting them pivot into something new.

Consulting firms want to get a decent return on investment for training new recruits. Thus, they want hires who not only intend to stick with consulting longer-term, but also have a temperament that makes this feasible and an overall career trajectory where it just makes sense for them to stay put.

This should hammer home the point that, if you want to get an offer, you need to be fully prepared to answer fit questions - and to do so excellently - any time you have a case interview.

6. Interview day - what to expect, with tips

Of course, all this theory is well and good, but a lot of readers might be concerned about what exactly to expect in real life . It’s perfectly reasonable to want to get as clear a picture as possible here - we all want to know what we are going up against when we face a new challenge!

Indeed, it is important to think about your interview in more holistic terms, rather than just focusing on small aspects of analysis. Getting everything exactly correct is less important than the overall approach you take to reasoning and how you communicate - and candidates often lose sight of this fact.

In this section, then, we’ll run through the case interview experience from start to finish, directing you to resources with more details where appropriate. As a supplement to this, the following video from Bain is excellent. It portrays an abridged version of a case interview, but is very useful as a guide to what to expect - not just from Bain, but from McKinsey, BCG and any other high-level consulting firm.

6.1. Getting started

Though you might be shown through to the office by a staff member, usually your interviewer will come and collect you from a waiting area. Either way, when you first encounter them, you should greet your interviewer with a warm smile and a handshake (unless they do not offer their hand). Be confident without verging into arrogance. You will be asked to take a seat in the interviewer’s office, where the interview can then begin.

6.1.1. First impressions

In reality, your assessment begins before you even sit down at your interviewer’s desk. Whether at a conscious level or not, the impression you make within the first few seconds of meeting your interviewer is likely to significantly inform the final hiring decision (again, whether consciously or not).

Your presentation and how you hold yourself and behave are all important. If this seems strange, consider that, if hired, you will be personally responsible for many clients’ impressions of the firm. These things are part of the job! Much of material on the fit interview is useful here, whilst we also cover first impressions and presentation generally in our article on what to wear to interview .

As we have noted above, your interview might start with a fit segment - that is, with the interviewer asking questions about your experiences, your soft skills, and motivation to want to join consulting generally and that firm in particular. In short, the kinds of things a case study can’t tell them about you. We have a fit interview article and course to get you up to speed here.

6.1.2. Down to business

Following an initial conversation, your interviewer will introduce your case study , providing a prompt for the question you have to answer. You will have a pen and paper in front of you and should (neatly) note down the salient pieces of information (keep this up throughout the interview).

It is crucial here that you don’t delve into analysis or calculations straight away . Case prompts can be tricky and easy to misunderstand, especially when you are under pressure. Rather, ask any questions you need to fully understand the case question and then validate that understanding with the interviewer before you kick off any analysis. Better to eliminate mistakes now than experience that sinking feeling of realising you have gotten the whole thing wrong halfway through your case!

This process is covered in our article on identifying the problem and in greater detail in our Case Academy lesson on that subject.

6.1.3. Analysis

Once you understand the problem, you should take a few seconds to set your thoughts in order and draw up an initial structure for how you want to proceed. You might benefit from utilising one or more of our building blocks here to make a strong start. Present this to your interviewer and get their approval before you get into the nuts and bolts of analysis.

We cover the mechanics of how to structure your problem and lead the analysis in our articles here and here and more thoroughly in the MCC Case Academy . What it is important to convey here, though, is that your case interview is supposed to be a conversation rather than a written exam . Your interviewer takes a role closer to a co-worker than an invigilator and you should be conversing with them throughout.

Indeed, how you communicate with your interviewer and explain your rationale is a crucial element of how you will be assessed. Case questions in general, are not posed to see if you can produce the correct answer, but rather to see how you think . Your interviewer wants to see you approach the case in a structured, rational fashion. The only way they are going to know your thought processes, though, is if you tell them!

To demonstrate this point, here is another excellent video from Bain, where candidates are compared.

Note that multiple different answers to each question are considered acceptable and that Bain is primarily concerned with the thought processes of the candidate’s exhibit .

Another reason why communication is absolutely essential to case interview success is the simple reason that you will not have all the facts you need to complete your analysis at the outset. Rather, you will usually have to ask the interviewer for additional data throughout the case to allow you to proceed .

NB: Don't be let down by your math!

Your ability to quickly and accurately interpret these charts and other figures under pressure is one of the skills that is being assessed. You will also need to make any calculations with the same speed and accuracy (without a calculator!). As such, be sure that you are up to speed on your consulting math .

6.1.4. Recommendation

Finally, you will be asked to present a recommendation. This should be delivered in a brief, top-down "elevator pitch" format , as if you are speaking to a time-pressured CEO. Again here, how you communicate will be just as important as the details of what you say, and you should aim to speak clearly and with confidence.

For more detail on how to give the perfect recommendation, take a look at our articles on the Pyramid Principle and providing recommendations , as well the relevant lesson within MCC Academy .

6.1.5. Wrapping up

After your case is complete, there might be a few more fit questions - including a chance for you to ask some questions of the interviewer . This is your opportunity to make a good parting impression.

We deal with the details in our fit interview resources. However, it is always worth bearing in mind just how many candidates your interviewers are going to see giving similar answers to the same questions in the same office. A pretty obvious pre-requisite to being considered for a job is that your interviewer remembers you in the first place. Whilst you shouldn't do something stupid just to be noticed, asking interesting parting questions is a good way to be remembered.

Now, with the interview wrapped up, it’s time to shake hands, thank the interviewer for their time and leave the room .

You might have other interviews or tests that day or you might be heading home. Either way, if know that you did all you could to prepare, you can leave content in the knowledge that you have the best possible chance of receiving an email with a job offer. This is our mission at MCC - to provide all the resources you need to realise your full potential and land your dream consulting job!

6.2. Remote and one-way interview tips

Zoom case interviews and “one-way” automated fit interviews are becoming more common as selection processes are increasingly remote, with these new formats being accompanied by their own unique challenges.

Obviously you won’t have to worry about lobbies and shaking hands for a video interview. However, a lot remains the same. You still need to do the same prep in terms of getting good at case cracking and expressing your fit answers. The specific considerations around remote interviews are, in effect, around making sure you come across as effectively as you would in person.

6.2.1. Connection

It sounds trivial, but a successful video interview of any kind presupposes a functioning computer with a stable and sufficient internet connection.

Absolutely don’t forget to have your laptop plugged in, as your battery will definitely let you down mid-interview. Similarly, make sure any housemates or family know not to use the microwave, vacuum cleaner or anything else that makes wifi cut out (or makes a lot of noise, obviously)

If you have to connect on a platform you don’t use much (for example, if it’s on Teams and you’re used to Zoom), make sure you have the up to date version of the app in advance, rather than having to wait for an obligatory download and end up late to join. Whilst you’re at it, make sure you’re familiar with the controls etc. At the risk of being made fun of, don’t be afraid to have a practice call with a friend.

6.2.2. Dress

You might get guidance on a slightly more relaxed dress code for a Zoom interview. However, if in doubt, dress as you would for the real thing (see our article here ).

Either way, always remember that presentation is part of what you are being assessed on - the firm needs to know you can be presentable for clients. Taking this stuff seriously also shows respect for your interviewer and their time in interviewing you.

6.2.3. Lighting

An aspect of presentation that you have to devote some thought to for a Zoom interview is your lighting.

Hopefully, you long ago nailed a lighting set-up during the Covid lockdowns. However, make sure to check your lighting in advance with your webcam - bearing in mind what time if day your interview actually is. If your interview is late afternoon, don’t just check in the morning. Make sure you aren’t going to be blinded from light coming in a window behind your screen, or that you end up with the weird shadow stripes from blinds all over your face.

Natural light is always best, but if there won’t be much of that during your interview, you’ll likely want to experiment with moving some lamps around.

6.2.4. Clarity

The actual stories you tell in an automated “one-way” fit interview will be the same as for a live equivalent. If anything, things should be easier, as you can rattle off a practised monologue without an interviewer interrupting you to ask for clarifications.

You can probably also assume that the algorithm assessing your performance is sufficiently capable that it will be observing you at much the same level as a human interviewer. However, it is probably still worth speaking as clearly as possible with these kinds of interviews and paying extra attention to your lighting to ensure that your face is clearly visible.

No doubt the AIs scoring these interviews are improving all the time, but you still want to make their job as easy as possible. Just think about the same things as you would with a live Zoom interview, but more so.

7. How we can help

There are lots of great free resources on this site to get you started with preparation, from all our articles on case solving and consulting skills to our free case library and peer practice meeting board .

To step your preparation up a notch, though, our Case Academy course will give you everything you need to know to solve the most complex of cases - whether those are in live interviews, with chatbots, written tests or any other format.

Whatever kind of case you end up facing, nothing will bring up your skillset faster than the kind of acute, actionable feedback you can get from a mock case interview a real, MBB consultant. Whilst it's possible to get by without this kind of coaching, it does tend to be the biggest single difference maker for successful candidates.

You can find out more on our coaching page:

Explore Coaching

Of course, for those looking for a truly comprehensive programme, with a 5+ year experienced MBB consultant overseeing their entire prep personally, from networking and applications right through to your offer, we have our mentoring programmes.

You can read more here:

Comprehensive Mentoring

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Case Interview Types: Master Common Ones Before Your Interview

• Last Updated January, 2024

Rebecca Smith-Allen

Former McKinsey Engagement Manager

On Case Study Preparation , we described what a case interview question is and how you should approach answering one. You can think about that page as your Consulting Case Interview 101 course.

But if we could tell you how to ace your consulting case interview in just one page, Bain, BCG, McKinsey, and other top consulting firms would give out a lot more offers than they do every year.

On this page, we discuss the most common types of case study interview questions . We’ll take your understanding of how to answer these to the next level by outlining the key issues to consider when structuring your answer.

Let’s get started!

Here are the types of cases you might come across during your case interview :

• Profitability Cases 1.1 Profit Optimization 1.2 Revenue Growth 1.3 Pricing Optimization 1.4 Market Entry 1.5 M&A 1.6 Cost Optimization 1.7 Startup / Early-Stage Venture
• Non-Profitability Cases 2.1   Lives Affected 2.2 Retention 2.3 Industry Landscape and Competitive Dynamics
• Market Sizing Questions (also called dinner conversation cases)
• Case Interview Math (also known as consulting math) 4.1 Consulting Math Example 4.2 Summary of Key Things to Remember on Consulting Math Questions

How To Make the Most of Case Interview Practice Time

Help with case study interview preparation.

Nail the case & fit interview with strategies from former MBB Interviewers that have helped 89.6% of our clients pass the case interview.

Profitability Cases

On this page , we discussed case interview  frameworks   that can help you structure your answers to case study interview questions, we introduced the profitability equation. It’s 1 of 2 basic business frameworks you can use to answer any type of case question. 

This formula can help ensure you address all the key aspects of straightforward profitability cases like the following:

A sports apparel retailer has experienced declining sales in its stores over the past year and declining profits. How would you recommend they address their profitability problem?

A cell phone manufacturer is experiencing declining profitability despite strong sales. What should they do to improve their bottom line?

For more detail on the components in this formula and an example of how to use it to solve a case interview question, see our  Case Interview Frameworks  page . Below, we’ll discuss types of profitability problems that go beyond the basics.out

Profit Optimization

Perhaps a company is profitable… just not profitable enough . 

Maybe its margins are lower than those of an industry rival. 

Maybe they’ve dipped below its own prior-year performance. 

Perhaps management sees an opportunity to launch a new product, leapfrogging the competition, but needs to generate more cash to invest in development. 

Any of these can be reasons to improve the performance of an already profitable company. 

Sample questions:

A nationwide fast-food chain failed to meet Wall Street expectations on its latest investor call and as a result, its stock price fell significantly. Management wants help identifying opportunities to improve the bottom line.

The CEO of a regional hospital chain is concerned that his company’s profitability is half that of the market leader. How can the company grow its net income?

Use the Profitability Equation

In structuring your analysis of a profit optimization case, you should touch on all 4 components of the profitability equation to understand what the company is doing well and where things have taken a turn for the worse. 

But the underlying problem in this type of case may be more subtle than in a basic profitability question. 

Instead of a big jump in costs or the loss of a large customer wiping out a significant chunk of revenue, the company may be experiencing a couple of small problems that add up to bad news for the bottom line. 

Benchmark Relative to Competition of Past Performance

For example, if our client is a TV manufacturer and we find out that our cost of producing a TV has increased overtime while our prices have remained the same, we can see that rising costs is the reason for our profits declining. 

To turn around the situation, we could look into what the competition is doing to reduce costs. For example, if a competitor is sourcing the same materials as us but from a cheaper supplier, we want to see if we can lower our cost by sourcing from the same supplier.

Benchmark One Business Segment to Another

Another way consultants benchmark performance on revenue and cost levers is by comparing the performance in one business segment or type of end-customer to another . 

Continuing with our TV manufacturing example, we might find that the client has seen costs rise on components in its high-end models but remain constant for its low-end models. 

We can look into what is being done differently in the low-end product group: low-cost sourcing, process improvement, etc. to find opportunities to improve the cost position in the high-end segment.

Use Key Performance Indicators (KPIs)

The company may also need more disciplined business processes and a system for measuring key performance indicators . 

Our TV manufacturer might institute a system for measuring cost per unit on a weekly or monthly basis in order to ensure they have an early warning system to monitor if costs are getting out of line.

To go with these KPIs, a regular process for reviewing the costs and taking necessary action could be instituted. Disciplined processes and performance indicators will help to fine-tune operations over time, taking them from good to best-in-class.

Key concepts to consider when addressing a profit optimization case:

The profitability equation including all its components,

• Benchmarks of cost and/or revenue relative to best-in-class competition and prior year performance.  
• Benchmark the company’s performance segmented by product or type of customer .
• Opportunities for business process improvement and key performance indicators that will allow management to monitor profitability more closely. 

Revenue Growth

Revenue growth case questions focus on companies that, while already profitable, still want to grow. 

They can do this by increasing market share, by selling their existing products to new markets, by selling new products to their existing customers, or by pursuing a combination of these opportunities. 

They can also capture more revenue by increasing prices.

A national chain of fitness centers wants to leverage its brand equity by selling additional products and services to its client base. What incremental products and services can profitably grow revenue?

The president of a printer and ink manufacturer thinks there is an opportunity to provide after-sale service to its customer base. What might be the impact on revenue from entering this market?

Capture Additional Market Share

As its name suggests, this type of case study focuses on the first half of the profitability equation — revenue = price x quantity of units sold. in examining units sold, you should consider the company’s ability to capture additional market share for existing products in the markets it already serves. , what is the company’s current share of the market that of its largest competitor what would it take to capture additional share product improvements a shift in marketing and promotion.

If a chain of fitness centers was our client, for example, we’d look at whether the primary competition was 1 or 2 large chains or a number of small, single-location gyms and tailor our strategy to increase market share accordingly. 

If the competition was single-location gyms, we could promote flexibility for members to use our facilities in multiple locations to bring in new customers. We could also leverage the client’s greater size to outspend the small gyms on advertising.

Branch into New Products or Markets

Also, consider the new products and/or markets the company could branch into . What products do competitors sell that the company doesn’t? Does the company have capabilities that would help them  succeed in other markets?

Our fitness center client could consider selling new products like fitness apparel or vitamins. They could expand into new markets, such as towns and cities adjacent to ones currently served.

Offer Services to Existing Customers

In addition, consider  services that can be sold to existing customers . Post-sales support for equipment, for example. Or consumables used with their products, like ink for a printer manufacturer. Our fitness center client could look into providing personal fitness coaching services to members.

Review Pricing

Lastly, consider the company’s  flexibility to raise prices . Where do their prices stand relative to competitive products or services? Do their products or services have higher quality or value-added capabilities that would command a higher price?

For more examples of revenue growth case interviews, see our  Revenue Growth Case article. 

Pricing Optimization

A company must have a solid product or service offering to be able to take a price increase without seeing a significant loss of sales to competitors. 

If their products or services are strong, then optimizing price can be an important lever to grow revenue.

A manufacturer of kitchen knives sells a range of products, from low-end to professional, to customers at different price points. They’ve developed a new line of knives in collaboration with a celebrity chef and would like help setting the prices for these products.

The airline industry has experienced significant changes in its pricing model over the past few years, with some airlines charging separately for checked baggage, meals, and beverages. A global carrier has asked us to help optimize the pricing of the additional services it provides to customers who fly with them.

Elasticity of Demand

When prices rise, demand for a product goes down and when prices fall, demand rises. You’ll remember this from Economics 101, or perhaps just from common sense. Pricing optimization is all about how much . 

If you can raise prices with demand going down just a little, you can improve a company’s revenues by raising price. If a change in price has a big impact on demand, then raising price could be a big mistake.

The term for this is Price Elasticity of Demand . If demand for a product or service changes a lot in response to a change in price, it’s said to have price elasticity. Products with many substitutes or ones that consumers can easily do without are the most sensitive to price changes. 

For example, if McDonald’s raised the price of the Big Mac, more customers might go to Burger King, Taco Bell, or just eat lunch at home. McDonald’s hamburger sales would fall dramatically.

Substitutes

For some products, demand is relatively insensitive to changes in price. This can be the case for luxury goods, for products that have few substitutes , or for when there are large switching costs. When the cost of home heating oil rises, some customers consider switching to natural gas to heat their homes. But if doing so will require buying a new furnace to run on gas or paying for pipes from their house to the gas distribution network, they won’t make the change unless the change in price is dramatic and/or expected to persist for a number of years. 

3 Methods for Setting Prices

Competitive-based pricing — Setting prices based on the prices of other similar products in the market. This is the simplest method for setting prices. Companies who use competitive-based pricing are price takers.

Cost-based pricing —Setting prices as a function of the cost to provide a good or service plus a profit margin. Cost alone can’t be used to set pricing because if a company’s costs are out of line with its competitors, it may price itself out of the market.

Value-based pricing — Setting prices based on the value provided to customers. Luxury goods are priced well above the cost of their production because customers of these products value association with the prestigious image the product conveys. Products that provide significant value to customers in terms of saving time or providing features not found in other products can be priced higher because they are worth more to customers.

Value-based pricing the best pricing method but it can only be used for products and services that are sufficiently differentiated in the eyes of the customer that they will not change their buying behavior in response to higher prices.

Market Entry

Significant start-up costs will be incurred to develop and manufacture a new product, to launch the marketing campaign, or to build the sales force needed to find customers. 

To ensure that spending money on start-up costs are worthwhile, due diligence needs to be done to estimate the size of the market being considered and the cost of successfully entering it.

A teen fashion retailer has seen its sales boom in the North American market for the past 5 years. They’re considering expansion into international markets. They’d like help identifying which markets provide the best opportunities for their line of clothing.

A not-for-profit organization has been successful at hiring the long-term unemployed to manufacturer furniture made from pallets and other recycled items. They’ve not only designed and created beautiful pieces of indoor and outdoor furniture, but also helped to improve the lives of individuals in one city. They’d like to expand to other products and potentially to other cities and have asked for our help in assessing their options.

There are  4 parts to any market entry case : market size, market attractiveness, costs of entry and capabilities required. Let’s look at each.

Market size

Market sizing is sometimes used as a case interview question on its own. See below for more details . It’s also usually the first part of a market entry case. It addresses how large a market is in terms of annual revenue, number of units sold, or both. The underlying issue is whether there is enough opportunity in a market to make it worth the up-front cost.

To determine whether the amount of sales revenue or unit volume is “enough,” estimate the size of the market based on the information provided by your interviewer or by using factors you can reasonably estimate about the market. You can then consider profit margins and what portion of the market the company must capture to break even.

Market attractiveness

The market a company is thinking about entering may be huge, but it can still be unattractive. Key questions include: What is the profit margin for companies already in the market?  What does the competition in the market look like? Large firms with huge marketing budgets or small companies? 

Costs of entry

Will new technology, equipment, sales staff, or something else be required to succeed in the new market? If so, what will it cost? The greater the investment required to enter a market, the more difficult it will be to recoup the initial investment.

Capabilities

Does the firm being discussed have what it takes to succeed in the new market? In some markets, the key to success is marketing expertise and distribution. In others, it’s low costs and disciplined business processes. Identify the key attributes of success in the market and whether the company possesses those attributes.

To learn how you can structure and break down a case such as these, visit the  Case Interview Frameworks  page can help you think through important factors in this type of consulting case interview question.

Above, we looked at how to analyze a market entry case. 

If a market is attractive but the client does not have all the capabilities required to succeed in it, it may decide to buy the right capabilities through a merger or acquisition (M&A). 

They could also consider M&A opportunities if they need to enter the market fast rather than build capabilities over time.

The number 3 competitor in the cellular phone services market is at a disadvantage relative to its larger competitors. Providing cellular phone service has high fixed costs—for the equipment that transmits calls, the retail stores that sell phones and provide in-person customer support, and the marketing spend that is key to customer attraction and retention. The CEO is considering acquiring a smaller competitor in order to gain market share. He would like our help thinking through this decision.

The president of a national drug-store chain is considering acquiring a large, national health insurance provider. The merger would combine one company’s network of pharmacies and pharmacy management business with the health insurance operations of the other, vertically integrating the companies. He would like our help analyzing the potential benefits to customers and shareholders.

When you get this type of case, ask your interviewer why the company is considering the merger or acquisition. They may provide key information on the size and attractiveness of the market the target company is in. Assuming the target company is in a large, attractive market and has the critical capabilities required to succeed in that market, then you should consider whether it is better to build the new business internally or undertake a merger or acquisition. 

If two companies are considering a merger, they still have to persuade their shareholders that the 2 companies would be more valuable working together than on their own. The value the companies can create by working together is called  synergy .

Synergies from a merger or acquisition can be on the cost side, the revenue side, or both. Cost synergies include leveraging fixed costs across more business or cutting costs duplicated in both firms’ operations. Revenue side synergies include selling a broader range of products through the existing sales force or distribution channel. 

The synergies created by the merger or acquisition must be greater than the premium that must be paid to secure the deal in order for the transaction to make sense.

Integration

Mergers and acquisitions are large and complicated transactions. They require  integrating  the talent, systems, policies, and processes of the 2 organizations. Synergies that look good on PowerPoint slides do not always accrue in real life. In addition, key employees may quit during the disruption and uncertainty the M&A activity causes. Even if substantial synergies are identified, a company should consider whether it can successfully undertake the integration.

Regulatory Approval

Lastly, mergers of large companies in regulated markets (financial services, telecommunications) and concentrated markets (ones with only a few large competitors) can require government approval . The possibility of the government blocking the merger or acquisition should be considered in this type of case.

Cost Optimization

A top-3 home improvement retailer has seen price increases from several of its vendors, squeezing its bottom line. The company wants to know how it can cut costs to restore its margins to their previous levels.

The head of an automobile manufacturer has seen its production costs rise over the last several years. She wants your help in turning around this trend.

The most important thing to understand when addressing this type of case is what is going on with fixed costs and variable costs . The costs can be broken down and compared to competitors’ costs or costs in prior years to identify opportunities for improvement.

As a reminder, here are the definitions of fixed and variable costs:

Fixed Costs

Costs that you incur just because you are in business regardless of how many units you sell. Examples: factory rent, equipment depreciation, compensation for salaried employees, and property taxes. A way to think about fixed costs is that a cost that does not change over the short-term, even if a business experiences increases or decreases in its sales volume.

Variable Costs

Costs that only incur when you begin to produce units (if you sell nothing you have no variable costs). Examples: sales commissions, credit card transaction costs, and sales taxes. A way to think about variable costs is that a cost that does change over the short-term. More sales volume will mean more variable costs.

Startup / Early-Stage Venture

Startup and early-stage venture cases have some similarities to market entry cases. 

Ensuring that the market the company is going after is big enough and has high enough margins to be attractive is important, as is understanding their competition. 

Startups are small, nimble companies with only a handful of key employees and limited access to cash. These factors need to be taken into account.

A student from Iceland studying in the U.S. has determined there’s a big opportunity to bring Icelandic-style yogurt to this market. How would you recommend he proceed?

A software company has developed video technology that can be used to quickly and easily create short videos that can be sent to a colleague in place of typing a long email. This disruptive technology will take advantage of the cameras built into cell phones and laptops as well as consumers’ preference for watching a video rather than reading text. The company has a small number of beta customers and is looking for advice on how to ramp up their product to attract a wider audience.

When answering this type of case, focus on the key things that help these small, fast-growth ventures move with agility as they search for the product and business model that will attract customers and investors. 

The Right People

They need the right people —ones with product savvy, marketing savvy and investor savvy to make it. 

A Minimum Viable Product

They need a minimum viable product . This is an initial version of their product offering that will attract paying customers, allowing them earn money and to collect feedback that can be used to improve the product. It will also serve as a proof-of-concept to investors. 

A Business Plan

Start-up and early stage venture also need an initial business plan addressing how they will bring their product to market.

Non-Profitability Cases

Some might focus on charitable organization. Others might focus on businesses issues that don’t relate directly to profits, such as employee retention or understanding the competitive dynamics in an industry. 

An overview of how to approach non-profitability cases is found on this page .

This section focuses on key concepts to address in a few common types of non-profitability cases.

Lives Affected

Government agencies and charitable organizations don’t aim to maximize profits. Nonetheless, they do important work that affects many lives. 

They might hire a consulting company to help them improve their effectiveness, or a consulting firm might take on an important project for a charitable organization on a pro-bono basis. 

The state agency that administers the free summer lunch program for children of families under a certain income threshold wants to increase the reach of its program. How would you advise they approach this? 

Malaria is a devastating disease, affecting hundreds of millions of individuals each year. It’s transferred to humans by mosquitoes, with most of the cases occurring in South Asia and Sub-Saharan Africa. Though drugs to treat the disease exist, many in the affected regions don’t have access to or can’t afford these drugs. The disease is a strain on the economies of several nations, perpetuating the cycle of poverty. What can be done to alleviate this disease and its adverse economic effects?

Key Performance Indicators (KPIs)

A detailed example of how to approach a lives affected case is provided  here .  As discussed in that case, the key to answering this type of question is to find the key performance indicator (KPI) the organization is trying to improve. In the case of the first sample question above, this is the number of free lunches served to needy children. 

Benchmarking

Once you’ve established the KPI, the case can be answered in the same way you’d answer any case question on business improvement. You can benchmark the organization’s performance by looking at trends in the KPI over time or comparing the growth of the organization’s KPI to that of other organizations serving the same target population to assess whether the agency is doing a good job meeting their mandate or falling behind. If they are falling behind, drill down into the factors that might be causing them to do so.

Cases focused on employee retention are not directly about profits, though the loss of key skills when employees depart and the cost of training new hires require hurts the profitability of organizations with high turnover. 

A fast-food chain is experiencing an increase in the already-high rate of employee turnover typical in its industry. It’s also experiencing trouble attracting qualified new employees. What would you suggest?

The school system in a middle-class suburban town is experiencing higher-than-normal rates of teacher attrition. With a tight budget, they are unable to simply raise salaries to hold onto experienced teachers. What options does the school system have for increasing teacher retention?

Conducting retention interviews —interviews with departing employees to find out why they’re leaving the organization—is a standard practice in most organizations. Because of this, there should be data available on what employees like about their jobs, don’t like about their jobs, why they looked for new opportunities and what new job they’re taking. Ask your interviewer for this information, as well as survey data on the job satisfaction of all employees. It can be used to develop a multi-pronged approach to improving employee retention.

• Look for opportunities to enhance aspects of the job that appeal to employees and change the negative aspects of working for the organization. For instance: What about the job is appealing? 
• Do employees see the work of the organization positively impacting the broader community? 
• Do employees like their colleagues, recognition they receive from management, the financial package provided? 

Industry Landscape and Competitive Dynamics

Cases focused on the landscape of an industry and its competitive dynamics are about the big-picture strategic issues that must be taken into account to compete effectively in that industry.

The traditional newspaper industry is facing heavy pressure from free online news organizations that don’t face the cost of printing a traditional newspaper and are able to leverage Internet ads as a source of revenue. The publisher of an award-winning regional paper would like your help in assessing and responding to this new threat.

The food and beverage industry faces disruption to their traditional brands as organic and small-batch products gain favor with consumers. How should companies in this industry respond to this new of competitive threat?

When analyzing this kind of case, first look for what is changing in the industry —consumer preferences, brand loyalty, barriers to entering the market, regulation, the industry’s cost structure, etc. Ensure you know what the source of change is before you begin to look for a strategy to help the client succeed in the new marketplace. 

For tips on structuring a case like these, visit the  Business Frameworks page . SWOT analysis and other frameworks include some factors to consider in this type of consulting case interview question.

Market Sizing Questions (Also Called Dinner Conversation Cases)

Market sizing cases are focused on establishing the size of a market in terms of annual revenue or the number of units sold rather than determining how to compete successfully in the market. 

Consulting firms often ask market sizing questions early in the consulting interview process or in interviews of undergraduate students who may not have a deep business background. 

They can also be one component of complicated, multi-step cases in later-round interviews. Market sizing questions focus on making logical estimates, showing creativity, and doing basic math.  

What is the size of the market for organic toothpaste in the United States?

How many golf balls would fit inside the Empire State building?

What Are Consulting Interviewers Looking for on Market Sizing Cases?

With case interview questions of this type, you’re not expected to know the answer, but instead to show a logical way of deducing it. Committing a few key facts to memory would serve you well. For example, knowing the population of the United States (or the country you live in) would give you a good place to start as you think through the size of the market for various retail goods. Gross domestic product can help with sizing industrial markets.

Key Statistics to Know for Market Sizing Case Questions:

The Population of the United States 2019 – 329 million according to the US Census Bureau .

World population in 2015 – 7.4 billion according to the United Nations DESA / Populations Division .

2018 Gross Domestic Product of the United States – $20.5 trillion according to the Bureau of Economic Analysis of the U.S. Department of Commerce .

Statistics like these give you a good foundation to start your market size analysis. For instance, you could begin estimating the size of the U.S. market for organic toothpaste with the US population. From there, make logical assumptions:

• How many times a day does the average American brushes their teeth?
• How many toothpaste applications are in the average tube of toothpaste?
• How much does the average tube of toothpaste cost?

These assumptions will allow you to calculate the size of the overall toothpaste market in terms of annual revenue. To get to the annual revenue of organic toothpaste you’ll also need to estimate:

• What portion of toothpaste consumers prefers organic toothpaste?

You can (and should) bring paper and a pen into consulting interviews. Use these to keep track of your assumptions as you work through them and to do the basic math required to come to a conclusion.

 Our Market Sizing Questions article has a list of the 7 steps to answering this type of question.

Key Things to Remember When Answering a Market Sizing Question:

• Ask clarifying questions. Does the interviewer want the market size in terms of dollars or units? For the United States, North America, the world?
• Use round numbers for simplicity. For instance, using $20 trillion for U.S. GDP rather than $20.5 would be fine.
• Creativity in your approach to approximating the market is important, but so is good sense. Don’t be so creative that your answer lacks credibility.
• Practice case math so you can do it quickly and correctly even under the stress of an interview.
• Give your answer a sniff-test at the end. Does it make sense? This will both show that you are careful in your analysis and give you the chance to fix an arithmetic mistake if you find you’re way off. 

Case Interview Math (also known as consulting math)

Management consulting interviewers screen candidates to ensure that they can do basic math. 

Don’t worry if you didn’t ace multivariate calculus, the math is usually basic arithmetic—addition, subtraction, multiplication, division and fractions/percentages. You may also be asked to extract data from charts and convert from one unit of measure to another.

As mentioned in the discussion of market-sizing case questions above, you can and should bring a paper and pen into the interview. It’s fine to write out your calculations.

Consulting Math Example

In each step, we’ll provide a sense of how we are making the estimate so that the interviewer knows we’re not just grabbing a number out of the air. We want our answer to be as grounded in fact as possible. 

The population of the United States: 329 million. We’ll round to 330 million for simplicity.

The number of times the average American brushes their teeth – 2 times per day. Some people brush at lunchtime too, but that’s probably offset by people who only brush once a day.

330 million people brushing 2x’s per day gives us 660 million toothpaste applications/day.

To get to an annual number of toothpaste applications, we need to multiply by 365. That’s 241 billion toothpaste applications. We’ll round to 240 billion for simplicity.

A tube of toothpaste usually lasts me about 2 months. That means we need to divide by 120 toothpaste applications per tube to come up with the number of tubes sold annually (2 months x 30 days/month x 2 applications/day). 240 billion toothpaste applications / 120 applications per tube = 2 billion tubes of toothpaste sold in the U.S. every year.

The cost of toothpaste ranges from $1 for inexpensive brands to $4 for expensive brands, but the average cost is probably about $2. This means the total revenue for toothpaste sold in the U.S. is 2 billion tubes x $2 or $4 billion.

The percent of the toothpaste market that’s organic is a little tricky to estimate. In the grocery store I shop in, there’s 1 aisle of organic goods in a store that has 20 aisles – that means organic products make up 5% of shelf space (and presumably also of sales). 

I think that people would be less likely to buy organic toothpaste than organic food, because you eat organic food, but you spit organic toothpaste out into the sink. Organic products always cost more and organic toothpaste doesn’t seem quite as important to your health. 

Conclusion: Based on that, I’ll say that 1% of the market for toothpaste is organic, so if $4 billion in toothpaste is sold in the U.S. every year, $40 million of it is organic toothpaste.

Is our answer right? 

Probably not exactly. There are different sizes of toothpaste tubes, a complication that we did not consider in this analysis. There might be some people who don’t brush their teeth every day. That would mean that we overestimated consumption. 

But our estimate of the market size for organic toothpaste is reasonable and grounded in logical assumptions. We could sniff-test our answer by comparing it to a market size we know, or to GDP, one of the facts we suggested having in your back pocket for market sizing case questions. 

U.S. GDP was about $20 trillion in 2018. Our estimations suggest that the overall toothpaste market is $4 billion. That means toothpaste is 1/5,000 of the U.S. economy, and the market for organic toothpaste is 1% of that. 

That sounds plausible. If your answer showed that the market for organic toothpaste was larger than U.S. GDP, it would be a clear indication that you made a mistake somewhere along the way.

For the 4 types of math problems you’ll be asked to compute as part of case studies, read Case Interview Math.

Above, we’ve provided you with 11 different types of case interview questions you might be asked during your consulting interviews. We’ve also told you that you need to get great at doing case math. 

Overwhelming? It can be.

But it doesn’t have to be.

The best way to prepare for your consulting case interviews is NOT to spend hundreds of hours reading every case study question and answer you can get your hands on. Instead, see our page on Case Interview Practice  to find out how to make the most of your interview prep time. In addition, check out this video where Davis Nguyen, Founder of My Consulting Offer, talks about how mastering the case interview is made easier when you focus on the most common types of cases. 

Here in an online workshop he conducted for  Columbia University, NYU, and Cornell students, you can see why this approach is so effective:

After studying the information on this page, you have an in-depth understanding of the types of cases you could be asked to analyze in consulting interviews. From Davis’s video, you know why this is so important to focus on the main types of cases. You’re well prepared to find a case study practice partner and begin practicing.

As you prepare for case interviews, you should use this page in conjunction with  Case Interview Examples , where you’ll find links to sample case study questions and their answers. Remember that while it is important to discuss all the appropriate aspects of a business case, it’s important to structure your analysis and your answer. Refer back to our page on  Case Interview Frameworks   to ensure that you’re not just practicing more cases, but doing them better.

If you still have questions, leave them in the comments below. We’ll ask our My Consulting Offer coaches and get back to you with answers.

• Market Sizing Questions ,
• Case Interview Workshop Video , and
• Written Case Interviews ,

Thanks for turning to My Consulting Offer for advice on case study interview prep. My Consulting Offer has helped almost 89.6% of the people we’ve worked with get a job in management consulting.  For example, here is how Thomas was able to get a BCG offer with just a short time to prepare..

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Consulting Case Interview Frameworks: The Ultimate Guide (Updated 2024)

Published on January 8, 2024 | by - High Bridge Academy

Are you looking to pursue a career in consulting with a top-tier firm? Then you must be well-prepared for their consulting case interviews. 

Consulting case interviews can be daunting, but don’t worry, we’ve got you covered. In this comprehensive guide, you will learn all about consulting case interview frameworks and how to master them. 

These frameworks are essential tools used by consultants to navigate and solve complex business problems. By understanding and applying these frameworks, you can impress top consulting firms and excel in your case interviews.

In this guide, we’ll cover everything you need to know about consulting case interview frameworks, starting from the basics to advanced concepts. 

You’ll learn about different types of frameworks, such as profitability, market entry, M&A, 4Ps and 3Cs. Additionally, we’ll provide you with practical tips and strategies for navigating case interviews successfully. 

Whether you’re a seasoned consultant or new to the field, this guide will help you hone your skills and take your consulting career to the next level.

Understanding Case Interviews

Prior to diving into the specific case interview frameworks, it’s crucial to have a solid grasp of the interview process. 

The Ultimate Guide to Case Interviews:

• Start by understanding the different types of consulting cases you may face . These include market sizing, profitability, market entry, mergers and acquisitions, and business situation.
• Develop your problem-solving skills, including the ability to think critically, identify patterns, and draw conclusions from incomplete information.
• Sharpen your analytical abilities, including the ability to comprehend and interpret data and financial statements.
• Learn how to structure your responses in a clear, concise, and effective manner.

By studying from this comprehensive guide, you can enter your case interviews with confidence and preparedness. Armed with these skills, you’ll be able to impress even the most challenging interviewers and secure your dream consulting job.

Common Case Interview Frameworks

When it comes to case interviews, there are several commonly used frameworks  that you should be prepared to use. 

The profitability framework is one of the most versatile tools and is used to analyze revenue and costs. It’s also useful to know about other common frameworks that are applied to various business situations. 

By being familiar with these common frameworks, you’ll have a solid foundation for approaching different types of cases and crafting effective solutions.

Further reading: How do you create a consulting framework?

Some of the other case interview frameworks include market entry, M&A, 4Ps and 3Cs. While they may not be used as frequently as profitability frameworks, it’s still valuable to know how to apply them.

By being familiar with these frameworks in case interviews, you’ll be better equipped to solve the problem and impress your interviewers. Keep in mind that it’s also important to tailor your approach to the specific case you are given and practice extensively to enhance your problem-solving abilities.

Market Entry Frameworks

When a company considers entering a new market, market entry cases become one of the most common types of cases to tackle. 

To evaluate the feasibility and potential success of entering a new market, market entry frameworks play a crucial role. In this section, we will dive into the following market entry frameworks:

• Market sizing: analyzing the market size and segments
• Competitive analysis: evaluating the competitive landscape
• Market entry: determining the best entry strategies

Market sizing frameworks will help you evaluate the size and segments of the target market. You will learn how to analyze data to estimate the expected market size, including the number of customers, average spend, and market share.

Competitive analysis frameworks will demonstrate how to assess the competitive landscape. With this framework, you can evaluate the barriers to entry, competitors’ strengths and weaknesses, and the impact of substitutes and complements on the market.

Market entry frameworks will help you determine the best entry strategies for a new market. You will learn various frameworks to evaluate the pros and cons of launching a new product, acquiring an existing company, or partnering with a local firm.

To better understand market entry frameworks:

• Analyze the market size and segments to understand the target market better.
• Evaluate the competitive landscape of the market by analyzing the strengths and weaknesses of competitors, barriers to entry, and substitutes.
• Consider several market entry strategies, such as acquiring or partnering with local firms, launching a new product, or entering the market yourself.
• Use data and insights to recommend the best strategy for your business situation.

In summary, market entry frameworks are necessary when evaluating the feasibility and potential success of entering a new market. 

Gaining a profound understanding of the market size, competitive landscape, and market entry strategies is essential to address market entry cases that come up during your case interview prep.

Merger and Acquisition Frameworks

If you’re preparing for a case interview that involves mergers or acquisitions, having a strong framework is key. 

In this section, we’ll dive into specific frameworks tailored to M&A cases that will help you analyze the strategic fit, financial implications, and potential synergies of a merger or acquisition.

The merger and acquisition framework will guide you through the entire process and help you identify areas of concern. 

The framework consists of three main components:

Armed with an understanding of this framework, you can approach M&A cases with confidence and structure your analysis in a clear and comprehensive way. 

Additionally, we’ll cover how to develop custom frameworks to fit the unique requirements of each M&A case.

To further enhance your M&A case interview skills, you may consider taking a specialized case interview course that covers M&A frameworks in depth. These courses offer the chance to practice different types of M&A cases and learn from experienced consultants.

4Ps Framework

The 4Ps Framework stands out as a fundamental model. This framework is pivotal when tackling cases that involve marketing strategy and product positioning. Let’s delve into the key components of the 4Ps Framework:

• Product: Analyzing the product involves understanding its features, quality, branding, and how it meets customer needs. You will learn to evaluate how the product fits into the existing market and how it differentiates from competitors.
• Price: Price strategy is about determining the optimal pricing point. It involves understanding cost structures, perceived value, and pricing strategies of competitors. This component teaches you to balance profitability with customer appeal.
• Place: This aspect focuses on distribution channels. You will explore different methods of getting the product to the customer, assessing the efficacy of various distribution strategies, and understanding the logistics and supply chain implications.
• Promotion: Promotion entails the strategies used to communicate with target customers. You’ll learn to analyze advertising, public relations, sales promotions, and digital marketing strategies to maximize reach and impact.

In practice, the 4Ps Framework helps you to:

• Develop a comprehensive marketing strategy by balancing all four Ps.
• Understand how changes in one P can impact the others.
• Make informed decisions about product development, pricing, distribution, and promotion.

3Cs Framework

The 3Cs Framework is a powerful tool in business strategy, particularly useful for cases involving market analysis and strategic positioning. 

This framework focuses on three critical components:

• Company: Here, the focus is on the internal capabilities and resources of the company. You will learn to analyze the company’s strengths and weaknesses, including its unique selling propositions, resources, and capabilities.
• Customers: Understanding the customer is crucial. This component involves analyzing customer needs, behaviors, and preferences. You’ll learn to segment the market, understand customer demographics, and decipher buying patterns.
• Competitors: Competitor analysis is about understanding the competitive landscape. This includes analyzing competitors’ strategies, strengths, weaknesses, and market positioning.

Applying the 3Cs Framework allows you to:

• Develop a strategy that aligns the company’s strengths with customer needs while considering the competitive landscape.
• Identify opportunities for differentiation or competitive advantage.
• Make strategic decisions that are informed by a comprehensive understanding of the company, customers, and competitors.

Analyzing Profitability

A profitability case is a classic consulting case study interview question that you’ll likely encounter. It requires identifying the factors influencing a company’s profitability. 

You need to find out why the company is not making enough profit and come up with solutions to improve it.

To solve the problem, you need to analyze a company’s fixed and variable costs, growth rate, and revenue. 

Understanding these variables and how they affect profitability is key to pinpointing the root causes of the problem and developing recommendations.

Several frameworks can help you approach profitability cases. For instance, you can use various financial analysis tools, such as ratio analysis, break-even analysis, and cost-volume-profit analysis. 

Additionally, frameworks like the four Ps of marketing or the three C’s of pricing can help you develop strategies to boost revenue.

Understanding the balance between fixed and variable costs is essential to developing solutions to profitability issues. 

If variable costs are too high, you may need to reduce production volume or renegotiate supplier contracts. On the other hand, if fixed costs are too high, you may need to implement cost-cutting measures or consider restructuring.

Through analyzing profitability using different frameworks and financial analysis tools, you can identify the best solutions to improve a company’s profitability. 

With strategic thinking and a solid approach to profitability cases, you’ll ace your consulting case study interviews and impress potential employers.

Customized Frameworks for Different Cases

While common frameworks are useful, they may not always fit every case you encounter during a case study interview. 

Developing unique frameworks can help you stand out and better solve complex business problems. Here are some steps to create customized frameworks:

• Identify the key issues: Start by identifying the core problem the case is trying to solve. What insights can you gather from the case context and the information presented so far?
• Brainstorm ideas: Based on the key issues you have identified, brainstorm potential approaches and frameworks to tackle the case.
• Select the best approach: Analyze the pros and cons of each potential approach and select the best one for the case at hand.
• Structure your framework: Create a clear and logically structured framework that outlines the steps and tools you will use to approach the case.
• Apply the framework: Apply your customized framework to the case, modifying it as needed based on the information you gather throughout the interview.

By creating unique frameworks that fit the specific requirements of each case, you can impress your interviewer and demonstrate your problem-solving abilities. Remember to stay flexible and adapt your framework as necessary to fit the evolving case context. Good luck!

Navigating Case Interviews

Case interviews can be intimidating , but with the right preparation, you can approach them with confidence. 

When you’re given a case, start by understanding the case context and identifying the key issues involved. Look for similarities to case examples you’ve studied before and apply frameworks that have been successful in the past.

It’s important to note that top consulting firms like Bain, BCG and McKinsey are difficult   and have their own unique styles of case interviews . McKinsey often focuses on problem-solving tests and interviewer-led cases, while Bain and BCG typically prefer candidate-led cases, allowing more freedom in structuring the analysis. 

A strong interview process involves breaking the problem down into manageable parts and asking clarifying questions to fully understand the case. 

Practice active listening and demonstrate your problem-solving abilities by proposing well-reasoned solutions. Structure your response logically and prioritize the most important issues to solve the problem effectively. 

Our guide covers a variety of common case types, including market-sizing, product launch, merger and acquisition, and profitability cases, and provides detailed case study questions to help you prepare for the specific interview approaches of these prestigious firms.

Case Example:

Your interviewer presents you with a profitability case for a fictional furniture company that has experienced a decrease in profitability. 

You begin by analyzing the revenue and costs, identifying which cost drivers have the greatest impact on profitability. Applying the best profitability framework, you propose solutions to the company’s issues, prioritizing those that address the largest cost drivers.

Remember, the key to navigating case interviews is to master case interview frameworks, understand the interview process, and tailor your approach to fit the specific case you are given. 

Further reading: How do I ace a McKinsey case interview? 

With the right preparation and strategies, you can solve any case interview with confidence.

Frameworks for Market Analysis

To succeed in consulting, you’ll need to know how to analyze markets and develop market strategies. That’s why we’ve included this section on frameworks for market analysis.

Assessing the market size is essential when analyzing new market opportunities. Identifying target customer segments helps you understand their needs and preferences, allowing you to develop targeted marketing strategies. 

Evaluating barriers to entry is crucial when assessing a market’s attractiveness and level of competition. Market share analysis helps you understand the competitive landscape and benchmark your client’s position against other players in the market. 

Additionally, it is essential to analyze potential substitutes, as they can impact your client’s business significantly. With our market analysis frameworks, you’ll gain a deep understanding of market dynamics and be able to make informed recommendations for your clients.

Frameworks for Business Strategy

When faced with business strategy cases, it’s important to develop recommendations to improve a company’s performance or competitive advantage. 

To do this, you’ll need to analyze the company’s product or service, revenue and cost drivers, and industry positioning. Effective analysis requires the use of well-known business frameworks and marketing strategies.

One framework commonly used in business strategy cases is the SWOT analysis, which stands for strengths, weaknesses, opportunities, and threats. This framework will help you identify the internal and external factors affecting the company’s performance.

Another useful framework is the Porter’s Five Forces, which helps you evaluate the competitive landscape of the industry. This framework analyzes the bargaining power of buyers and suppliers, threat of new entrants, threat of substitutes, and competitive rivalry.

You can use frameworks to solve the problem effectively and efficiently. By applying these frameworks and developing recommendations, you can help companies gain a competitive edge in the market.

Interview Preparation and Practice

Preparing for your case interviews is essential, especially considering the competitive nature of the consulting industry. 

For instance, firms like McKinsey are known for their selective interview process , with only a small percentage of applicants receiving interview invitations. This highlights the importance of thorough preparation. 

To start, access free case interview prep resources online or enrol in a consulting bootcamp . 

These resources provide industry insights and expert tips to enhance your problem-solving abilities, a critical factor given the notoriously difficult nature of case interviews at top firms like McKinsey. 

The case interviews often challenge candidates , with complex business problems and test their analytical and strategic thinking capabilities. To bolster your preparation, revisit the commonly used case interview frameworks discussed in our guide. 

These frameworks offer a robust foundation for tackling various types of cases and will assist in building your skills and confidence. Regular practice with these frameworks is key, as it helps you refine your case-solving abilities and become adept at navigating the rigorous and demanding interview process at prestigious consulting firms

The Art of Structuring Cases

Structuring a case is a critical skill that can help you efficiently solve complex business problems. 

During an interview, understanding the interview situation and learning about the case context are essential for effectively tailoring your approach to the case you are solving.

Following the case structure is important to ensure you don’t miss any key information and can easily identify the most important issues. 

Beginning the case by clarifying the problem statement and defining the objectives is vital to understanding the context of the case and tailoring your approach.

When navigating complex cases, it can be helpful to develop customized frameworks tailored to the specific requirements of the case you are solving. This approach ensures your approach is comprehensive and tailored, increasing your chances of success.

Finally, presenting your findings in a clear and concise manner is crucial to demonstrating your problem-solving abilities. 

Whether facing challenging scenarios like launching a new product or analyzing profitability, a well-structured approach can help you effectively tackle cases and impress interviewers.

In conclusion, mastering consulting case interview frameworks is crucial for impressing top consulting firms and excelling in your case interviews. 

By understanding the different types of cases and applying the appropriate frameworks, you can effectively solve complex business problems and showcase your problem-solving abilities. 

Remember to tailor your frameworks to the specific case you are given and practice extensively to enhance your skills. 

With ample preparation and practice, you’ll be able to confidently navigate through any case interview scenario. Best of luck in your consulting journey!

What are consulting case interview frameworks?

Consulting case interview frameworks are tools used by consultants to analyze and solve complex business problems. They provide a structured approach and framework to navigate different types of cases and make informed recommendations.

Why are case interview frameworks important?

Case interview frameworks are important because they help you structure your thoughts, organize information, and solve problems systematically. They provide a framework for analysis and enable you to showcase your problem-solving skills during case interviews.

How can I master case interview frameworks?

Mastering case interview frameworks requires practice and familiarity with different types of cases. Start by understanding the basics of each framework and then apply them to practice cases. With practice, you’ll develop the ability to adapt and customize frameworks to fit the specific context of each case.

Are there specific frameworks for different types of cases?

Yes, there are specific frameworks tailored to different types of cases. For example, there are frameworks for market entry, merger and acquisition, profitability, business situation, and market analysis. Each framework provides a systematic approach to analyzing and solving the unique challenges presented by different case types.

Should I use pre-defined frameworks in every case?

While pre-defined frameworks can provide a solid foundation, consultants rarely use them exclusively. It’s important to customize and adapt frameworks to fit the specific context and requirements of each case. This shows your ability to think critically and apply frameworks in a tailored manner.

How can case interview frameworks help me ace my interview?

Case interview frameworks provide a structured approach to solving complex business problems. They help you organize your thoughts, ask relevant questions, and analyze information effectively. By mastering these frameworks, you’ll be better equipped to tackle cases and showcase your problem-solving abilities, increasing your chances of success in the interview.

Where can I find free case interview prep resources?

There are several websites and online platforms that offer free case interview prep resources. You can find practice cases, frameworks, and tips on these platforms to enhance your preparation. It’s also helpful to join case interview prep groups or seek guidance from experienced consultants or mentors.

How should I approach analyzing profitability in a case?

To analyze profitability in a case, you can start by assessing variable costs, fixed costs, revenue drivers, and growth rates. Apply frameworks like the profitability framework to identify the key factors impacting profitability and develop recommendations to address any issues identified.

What should I do if I encounter a case I’ve never seen before?

When faced with a case you’ve never seen before, remember to stay calm and approach it systematically. Take time to understand the case context, ask clarifying questions, and use relevant frameworks to structure your analysis. Remember, it’s more about your problem-solving approach and ability to think critically than having prior knowledge of the specific case.

How can I enhance my problem-solving abilities for case interviews?

Enhancing your problem-solving abilities for case interviews requires practice and exposure to different types of cases. Solve practice cases regularly, seek feedback from experienced consultants or peers, and analyze your performance to identify areas for improvement. Additionally, develop strong analytical and communication skills, as these are crucial in effectively solving and presenting your findings in case interviews.

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Consulting case study 101: an introduction to frameworks.

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 part of many interviews. The frameworks will be helpful to answer certain types of cases, depending on the type of case.  In reality, few case interviews or real-life business situations cover just one concept or business problem, so you have to have the flexibility to apply a range of concepts/structures.  For example, a Company bringing a new product to market would require a market size analysis, competitor analysis, as well as understanding the key customer segments.

The more you practice, the easier the cases will become and the more articulate and structured you’ll be in your answers.

An important note on this: historically, the vast majority of Consulting candidates have used specific business frameworks to answer cases.  Frameworks remain important as concepts to answer Case Studies, but you should absolutely avoid any rigid use of a specific framework . In reality, the main purpose of learning the frameworks is to help you to structure your answers , just as the case situations in our later examples should do.

The key frameworks that follow should be used directly in certain Case situations , but more broadly they should be used as a way to expand your strategic thinking , which is the critical component of success in the Case Study interview process. Ultimately, a top-flight candidate will build his or her own framework/structure for evaluating the Case as it progresses, often drawing from many of the frameworks and concepts in this module, and potentially others. In other words, you should absolutely avoid using the phrase, “I will apply framework X to this case.” However, be aware of the “famous” frameworks in case they are mentioned in an interview setting, and don’t be shy about referencing them as you dive into the specifics of the Case Study you’re evaluating.

Porter’s Five Forces

Porter’s Five Forces has become an incredibly well known framework in the business strategy world. It is probably the most famous of all of them. It was introduced by Harvard Professor and Monitor Consulting firm founder Michael Porter.  Porter’s Five Forces is a high-level framework that you can draw upon to perform a market landscape and competitor dynamics analysis. It can help determine whether a market or company is attractive, whether the client for whom the analysis is being performed is a private equity firm thinking about buying a company, or a major company thinking about entering or exiting a certain market segment. In most cases, a Case Study will address at least some of the components found in this framework.

Here are the Five Forces in detail:

Porter’s Five Forces

• Legal or regulatory barriers (for example, patents or government contracts)
• Economies of scale
• Cost advantage (for example, unique access to lower raw material costs)
• Access to distribution channels
• Product differentiation (for example, how is this product different?)
• Industry growth rate
• Industry fragmentation
• Level of switching costs
• Motivation to reduce prices (for example, from excess capacity)
• Level of substitute products
• Buyer’s decision influenced by supplier
• Supplier inputs/products have high switching costs
• Supplier has potential to forward integrate
• Supplier accounts for large share of the inputs/products
• High customer/client concentration
• Level of commoditization of product/input
• Level of switching costs for buyer
• Buyer has significant product/market information
• Substitute products/services that can compete on price and/or quality
• Switching costs to shift to substitute products

This simple framework has been around for a long time as a way to think about any industry or company, and applies broadly to a wide range of Case Study questions. If you compare the description below to that of Porter’s Five Forces above, you will see that there is substantial overlap.

The “3 Cs” approach is to address any Case situation by assessing the:

• Competitors
• Customers/clients

The 3 C’s

• Pros and cons of product/service
• Value chain
• Revenue (price × volume) and expenses
• Core competencies
• Regulatory environment
• Distribution network
• Management and core employees
• Market share
• Fragmentation
• Financial situation (for example, deep pocket competitors?)
• Other competencies (for example, marketing or distribution channels)
• Value proposition versus client
• Demographics (age, gender, etc.)
• Value of core customers/clients
• Wants and needs of customers/clients
• Customer/client segment sizes
• Customer/client segment shares
• Customer/client segment growth rate
• Product characteristics
• Personnel (especially for B2B)

This framework is often used specifically whenever there is a marketing component involved in a case (for example: how to increase sales resulting from any profitability optimization case, deciding on an approach to enter a market, etc.). When combined with the 3 Cs, this framework can cover many topics and as you practice more Case Study questions, you’ll develop a better sense of when and how to draw from these frameworks.

The “4 Ps” approach is to address a marketing-oriented Case situation by assessing the:

The 4 P’s

• Commoditized or differentiated?
• How close are the substitutes?
• Value proposition versus substitutes (price, quality, etc.)
• Switching costs
• Why are clients/customers purchasing the product?
• Brand, availability, service, value, reliability, aesthetic, etc.
• Is our product sufficiently better to justify a higher price? Or is it somewhat commoditized?
• Customer loyalty/lock-in
• Supply/demand: current state of demand and supply for the product or service
• Price of substitute products/services
• Price of competitor products/services
• Brand position and perception
• What is the cost for the client to produce the product or offer the service?
• Select/exclusive channels or wide distribution network?
• Seamless delivery to customers
• Internal transport or outsource?
• Specific areas of a site online
• Product placement in stores
• Customer/client awareness
• Is the Company reaching and attracting its target market?
• What are the most effective marketing campaign strategies?
• Return on marketing spend
• Are we retaining our customers/clients?
• Can we up-sell or cross-sell to our current customers/clients?

SWOT (Strengths, Weaknesses, Opportunities, Threats)

SWOT analysis is more of a mini-framework, specifically for quickly evaluating a single company in an industry. In that regard, it’s far less complete than other frameworks, and can often miss important details. However an interviewer could potentially ask you for a SWOT analysis, and you should be prepared to apply it in that case.

SWOT is effectively a quick, high-level market landscape/competitive dynamics analysis arranged using the following terminology:

SWOT Analysis

• Strengths: Company strengths within an industry
• Weaknesses: Company weaknesses within an industry
• Opportunities: Company opportunities available within the industry (or potentially by branching into a new industry)
• Threats: Company threats within the industry (or potentially from companies whose primary business is in another, related industry, or from disruptive technologies that potentially threaten all companies in an industry)

It should be noted that SWOT can be extended from comparing a specific company to the others in the industry, to comparing a specific industry or sub-industry to other, related industries or sub-industries within the economy. For example, a classic SWOT analysis might entail benchmarking Delta Airlines with the airline industry as a whole; an extension could entail benchmarking the entire airline industry against the broad transportation sector.

Other Frameworks

You should be very familiar with the well-known frameworks already discussed in this chapter, although it is unlikely that an interviewer would ask you to use a particular framework in your analysis. Instead, it is typically expected that you draw on the concepts encompassed by these frameworks and/or the concepts that we will outline in the next chapter, which breaks down the common Case Study interview question types .

In addition to these frameworks, there are a number of other frameworks that you will read about on certain Consulting firm sites, but you will probably not be expected to know them in detail or apply them specifically in an interview. It does not hurt, however, to be familiar with them. Therefore, we include these example frameworks for your reference and encourage you to at least familiarize yourself with the basics of them:

• The BCG Growth Share Matrix for evaluating product or business lines
• The McKinsey 7S Framework for evaluating organizational effectiveness
• The Product/Market Grid to determine growth opportunities
• Force Field Analysis for Change Management
• The Affinity Diagram for organizing ideas and information

Additional Analysis Concepts

There are additional, relatively simple analytical techniques that you should be prepared for in Consulting Case Study interviews. These techniques tend to be numerical, and occur frequently, although none are comprehensive or broad enough to fall into the category of a “Framework”:

Break-Even Analysis

Fixed vs. variable expenses, net profit margin, return on investment (roi), compound annual growth rate (cagr).

• Lifetime Customer Value (LCV; sometimes referred to as “User Lifetime Value”)

Product Life Cycle

Opportunity cost, elasticity (supply or demand).

• Financial Statements, Accounting, and Valuation

Let’s take a deeper look at each analysis category.

• The gist of Break-Even Analysis cases is that the Fixed Costs of a business—i.e., the costs that are unavoidable—need to be overcome by making profit from sales of products. Presumably, each incremental sale contributes to profit at a rate that can be determined (or at least estimated); the question that is to be answered is, “How many units do I have to sell in order to overcome my Fixed Costs, i.e., to ‘Break Even’?”
• In other words, the Break-Even Point is the number of units sold at which Revenue equals Total Expenses (Fixed Expenses plus Variable Expenses).
• 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.
• Formulaically, Break-Even Number of Units = Fixed expenses ÷ (Revenue per unit – Variable Expenses per unit).
• Note that the expression ( Revenue per unit – Variable Expenses per unit ) is often referred to as the Unit Contribution Margin .
• An understanding of how to analyze Expenses and differentiate Fixed Expenses from Variable Expenses is useful in order to run a Break-Even Analysis of a company.
• 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.
• Note that this concept can also be translated into a question on Break-Even Price , i.e., “Assuming a certain volume of sales, what is the sales price required in order to break even?”
• Formulaically, Break-Even Price = (Fixed Expenses ÷ Sales Volume) + Variable Expenses per unit .
• Note that the expression ( Fixed Expenses ÷ Sales Volume ) equates to the required Unit Contribution Margin at the assumed Sales Volume in order to break even. In other words, Break-Even Price = Required Unit Contribution Margin + Variable Expenses per Unit .
• Fixed Expenses (or Fixed Costs ) are expenses that do typically fluctuate regardless of the production or sales levels. These expenses can be viewed as “unavoidable,” at least in the short-term. Typical examples for Fixed Expenses include Rent, Insurance, Mortgage Payments, and Corporate Overhead Expenses.
• Variable Expenses (or Variable Costs ) are impacted by changes in production or sales levels – typical examples include are Raw Materials, Direct Labor Expenses (wages and benefits), and delivery costs.
• Understanding a Company’s Fixed vs. Variable Cost structure is important in a variety of cases (such as in Break-Even Analysis, discussed above).
• When analyzing a Case, always keep in mind that total Fixed Expenses remain constant as volume rises (or falls), but Fixed Expenses per unit decline as volume rises (rise as volume falls). For example, if a computer component manufacturer has $1,000 of Fixed Expenses and produces 100 components, then the $1,000 of Fixed Expenses will be spread across 100 components (= $10 of Fixed Expenses per unit). If the Company produced 200 components, then the Fixed Expenses per unit would decrease to $5 per unit.
• Variable Expenses, meanwhile, rise proportionately as volume increases, so Variable Expenses per unit remain constant.
• When an interviewer asks a candidate to calculate the Net Profit Margin (a.k.a. Profit Margin or Net Income Margin ), he or she will usually be referring to the total Net Income of a company or business line as a percentage of its Revenue: Net Profit Margin = Net Income ÷ Total Revenue.
• The interviewer could also refer to Gross Profit Margin , which is simply Gross Profit as a percentage of revenue: Gross Profit Margin = Gross Profit ÷ Total Revenue
• Similarly, the interview may also refer to Operating Profit Margin ( EBIT Margin ), or EBITDA Margin . In both cases, thus is simply the figure in question (Operating Profit, a.k.a. EBIT, or EBITDA) as a percentage of Revenue.
• Return on Investment (ROI) is a ratio that determines the return, or Profit, from capital invested. ROI is used in consulting interviews as a way to evaluate the return of a particular investment or to assess the feasibility of a potential investment or acquisition. Many companies have an internal ROI metric for capital investments.
• Standard ROI is calculated as follows: Profit from the Investment (Revenue minus Costs) ÷ Capital Invested .
• Note: Return on Assets (ROA) is a variation of this concept, but instead revolves around all capital invested in a project (Liabilities + Equity), rather than just Equity invested, which is typical for an ROI calculation.
• The Compound Annual Growth Rate (CAGR) is the percentage rate at which any figure, such as number of units sold, a population, or an investment must grow in each year to reach a given end value over a certain amount of time. (Note that this is not the only growth path to grow from a beginning number to an ending number, but it is the only growth path that is the same growth rate every year .)
• The formula to calculate CAGR is: [(Ending Value ÷ Beginning Value)^(1 ÷ Number of Years)] – 1.
• For example: If sales grew from $1,000 in the year 2001, when a store opened, to $2,100 in 2012, what is the CAGR?
• Answer: [(2,100 ÷ 1,000)^(1 ÷ 11)] – 1 = 2.1^(0.090909) = 7.0%
• Thus, the CAGR between 2001 and 2012 was 7.0%.
• CAGR is very similar in concept to Internal Rate of Return (IRR), which is the annual rate of return on an investment if its value grows by a specific multiple over a specific amount of time.
• Use the Rule of 72 to estimate CAGR whenever possible. The rule of 72 simply states that a quantity will roughly double in value whenever the number of years times the annual growth rate equals 72.
• Using the above example, we can see that the quantity slightly more than doubled, so the answer should be slightly above (72 ÷ 11) percent, or slightly above 6.6%. Indeed, it is!

Lifetime Customer Value (LCV)

• Lifetime Customer Value (LCV) projects the total profitability attributed to a firm’s future relationship to a typical customer.
• The idea behind this microeconomic analysis is to determine the reasonable cost to win or acquire a customer (or to maintain an existing customer, i.e., prevent him or her from “churning,” or switching to a competitor). It can also be used to determine level and type of customer service to provide, and as another way to estimate the value of a business. (In theory, the value of a business should equal the number of existing customers × the LCV per customer , plus growth opportunities.)
• The steps to calculate the LCV are as follows:
• Estimate the remaining customer years; in other words, how long is a typical customer expected to last with the company?
• Estimate future Revenue per year per customer, based on product volume per customer × price
• Estimate Total Expenses for producing those products (either separating Fixed Costs out or allocating them on a per-customer basis)
• Calculate the Net Present Value of the future profit (Revenue – Expenses) per customer (in other words, discount these future profits back into today’s equivalent dollars)
• Important for market sizing problems, the Product Life Cycle helps to calculate and project the annual market size for a given market/industry. It is often used by companies to project their own anticipated Revenue figures.
• Formulaically, Annual Market Size = Total Revenue of a product outstanding ÷ Average life of the product . For example, “Total Revenue of a product outstanding” might represent the sticker price of all cars driven in the US, while the “Average life of the product” would be the average number of years a car is driven.
• 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.
• Emerging: A new product or technology that is in initial adoption phases and therefore has very rapid growth rates (for example: electric cars)
• Growth: Product adoption is becoming widespread but still growing at an above-average rate (for example: smartphones)
• Maturity: Product adoption is widespread, or at least stabilized; growth typically comes only from price increases and growth in GDP (for example: breakfast cereal)
• Declining: Technological obsolescence, shifting consumption patterns, or increased market competition has resulted in total growth rates that are below-average or negative (for example: dairy products or wireline telephones)
• Opportunity Cost simply refers to the concept that if a person or company does X , the person or company necessarily cannot also do Y .  This is an important concept throughout business and consumer decision making, as there are only finite resources available in most cases (time, money, etc.).
• Thus, for example, it is unwise for a company to invest $1 million in a project earning $3 million if that same investment prevents it from investing the $1 million in another opportunity that would earn $10 million. In this case, the Opportunity Cost can be defined as the loss of incremental profit of $7 million ($10 million potential profit lost minus the $3 million earned).
• If X does not prevent also doing Y , then there is said to be “no Opportunity Cost” of doing X with respect to Y . In the above example, if the company had $2 million to invest and the capacity to manage both projects, it could reap the profits from both projects, i.e., $13 million.
• Elasticity is a concept from microeconomics that describes the tradeoff between Quantity and Price.
• Specifically, Elasticity is the ratio of a percentage change in quantity to the percentage change in price. Formulaically, Elasticity = % Change in Quantity Demanded or Supplied ÷ % Change in Price .
• For example, if an increase in the price of oranges from $1.00 apiece to $1.50 apiece causes demand for those oranges to fall from 100 units to 80 units, then the % Change in Quantity = –20% and the % Change in Price = 50%. Therefore the Elasticity of Demand = (–20 ÷ 50) = –0.4.
• Note that for normal goods, Elasticity of Demand will always be negative (higher prices mean less quantity is purchased) while Elasticity of Supply will always be positive (higher prices mean that suppliers are willing to produce and/or supply more goods).
• The concept comes up in multiple types of cases, such as pricing optimization. Clients often ask what the impact would be on volume if they adjust the price. Usually the correct answer is to increase prices in Inelastic markets (price increases lead to a relatively small decrease in products sold) and decrease them in Highly Elastic markets (price increases lead to a large decrease in product sold).

Financial Statements, Accounting and Valuation

Unlike Investment Banking interviews, which can be detailed and highly technical in terms of Finance and Accounting, Consulting interviews and the Consulting job itself revolve much more around estimation and exercising business judgment and “what-if” analysis. Rarely would a Consultant be called upon to develop and maintain a detailed, precise financial model for Discounted Cash Flow valuation, for example.

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 might even be provided with a basic Income Statement or Balance Sheet of a company as part of a Case Study interview question.)

Rather than reinventing the wheel and writing content on Finance and Accounting in this guide, we recommend you review any standard, basic Financial Accounting textbook to familiarize yourself with the components of basic Financial Statements:

• Income Statement (Revenue, Expenses, and Profit)
• Balance Sheet (Assets, Liabilities, and Equity)
• Statement of Cash Flows (Cash Flows broken out into the following categories of sources: Operating Activities, Investing Activities and Financing Activities)

We also recommend that you familiarize yourself with some basic core Finance concepts (Net Income, EBIT (Operating Profit), EBITDA, Free Cash Flow, Internal Rate of Return, Net Present Value, and Enterprise Value are good places to start) and core Valuation techniques (Cost of Capital, Comparable Company Analysis, Precedent Transaction Analysis, Discounted Cash Flow analysis, and Leverage Buyout analysis).  Although these concepts will not be tested and do not form a major part of general Consulting Case Study interviews, these topics can appear in a general discussion about a particular business situation and you should be able to discuss them at least on a basic level.

If you are applying for a job in Business Development, or for a Consulting position in a Corporate Finance group or at a firm that does a lot of Corporate Finance Consulting work, then you should definitely study up and be prepared for these core Finance and Accounting concepts, because they will likely be tested on in detail in your interviews. In addition to introductory Finance and Accounting textbooks, we highly recommend that these candidates read the Street of Walls Investment Banking Technical Training guide, which addresses complex details around Financial Statements, Accounting and Valuation at a very detailed level. (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.)

Do Your Students Know How to Analyze a Case—Really?

Explore more.

• Case Teaching
• Student Engagement

J ust as actors, athletes, and musicians spend thousands of hours practicing their craft, business students benefit from practicing their critical-thinking and decision-making skills. Students, however, often have limited exposure to real-world problem-solving scenarios; they need more opportunities to practice tackling tough business problems and deciding on—and executing—the best solutions.

To ensure students have ample opportunity to develop these critical-thinking and decision-making skills, we believe business faculty should shift from teaching mostly principles and ideas to mostly applications and practices. And in doing so, they should emphasize the case method, which simulates real-world management challenges and opportunities for students.

To help educators facilitate this shift and help students get the most out of case-based learning, we have developed a framework for analyzing cases. We call it PACADI (Problem, Alternatives, Criteria, Analysis, Decision, Implementation); it can improve learning outcomes by helping students better solve and analyze business problems, make decisions, and develop and implement strategy. Here, we’ll explain why we developed this framework, how it works, and what makes it an effective learning tool.

The Case for Cases: Helping Students Think Critically

Business students must develop critical-thinking and analytical skills, which are essential to their ability to make good decisions in functional areas such as marketing, finance, operations, and information technology, as well as to understand the relationships among these functions. For example, the decisions a marketing manager must make include strategic planning (segments, products, and channels); execution (digital messaging, media, branding, budgets, and pricing); and operations (integrated communications and technologies), as well as how to implement decisions across functional areas.

Faculty can use many types of cases to help students develop these skills. These include the prototypical “paper cases”; live cases , which feature guest lecturers such as entrepreneurs or corporate leaders and on-site visits; and multimedia cases , which immerse students into real situations. Most cases feature an explicit or implicit decision that a protagonist—whether it is an individual, a group, or an organization—must make.

For students new to learning by the case method—and even for those with case experience—some common issues can emerge; these issues can sometimes be a barrier for educators looking to ensure the best possible outcomes in their case classrooms. Unsure of how to dig into case analysis on their own, students may turn to the internet or rely on former students for “answers” to assigned cases. Or, when assigned to provide answers to assignment questions in teams, students might take a divide-and-conquer approach but not take the time to regroup and provide answers that are consistent with one other.

To help address these issues, which we commonly experienced in our classes, we wanted to provide our students with a more structured approach for how they analyze cases—and to really think about making decisions from the protagonists’ point of view. We developed the PACADI framework to address this need.

PACADI: A Six-Step Decision-Making Approach

The PACADI framework is a six-step decision-making approach that can be used in lieu of traditional end-of-case questions. It offers a structured, integrated, and iterative process that requires students to analyze case information, apply business concepts to derive valuable insights, and develop recommendations based on these insights.

Prior to beginning a PACADI assessment, which we’ll outline here, students should first prepare a two-paragraph summary—a situation analysis—that highlights the key case facts. Then, we task students with providing a five-page PACADI case analysis (excluding appendices) based on the following six steps.

Step 1: Problem definition. What is the major challenge, problem, opportunity, or decision that has to be made? If there is more than one problem, choose the most important one. Often when solving the key problem, other issues will surface and be addressed. The problem statement may be framed as a question; for example, How can brand X improve market share among millennials in Canada? Usually the problem statement has to be re-written several times during the analysis of a case as students peel back the layers of symptoms or causation.

Step 2: Alternatives. Identify in detail the strategic alternatives to address the problem; three to five options generally work best. Alternatives should be mutually exclusive, realistic, creative, and feasible given the constraints of the situation. Doing nothing or delaying the decision to a later date are not considered acceptable alternatives.

Step 3: Criteria. What are the key decision criteria that will guide decision-making? In a marketing course, for example, these may include relevant marketing criteria such as segmentation, positioning, advertising and sales, distribution, and pricing. Financial criteria useful in evaluating the alternatives should be included—for example, income statement variables, customer lifetime value, payback, etc. Students must discuss their rationale for selecting the decision criteria and the weights and importance for each factor.

Step 4: Analysis. Provide an in-depth analysis of each alternative based on the criteria chosen in step three. Decision tables using criteria as columns and alternatives as rows can be helpful. The pros and cons of the various choices as well as the short- and long-term implications of each may be evaluated. Best, worst, and most likely scenarios can also be insightful.

Step 5: Decision. Students propose their solution to the problem. This decision is justified based on an in-depth analysis. Explain why the recommendation made is the best fit for the criteria.

Step 6: Implementation plan. Sound business decisions may fail due to poor execution. To enhance the likeliness of a successful project outcome, students describe the key steps (activities) to implement the recommendation, timetable, projected costs, expected competitive reaction, success metrics, and risks in the plan.

“Students note that using the PACADI framework yields ‘aha moments’—they learned something surprising in the case that led them to think differently about the problem and their proposed solution.”

PACADI’s Benefits: Meaningfully and Thoughtfully Applying Business Concepts

The PACADI framework covers all of the major elements of business decision-making, including implementation, which is often overlooked. By stepping through the whole framework, students apply relevant business concepts and solve management problems via a systematic, comprehensive approach; they’re far less likely to surface piecemeal responses.

As students explore each part of the framework, they may realize that they need to make changes to a previous step. For instance, when working on implementation, students may realize that the alternative they selected cannot be executed or will not be profitable, and thus need to rethink their decision. Or, they may discover that the criteria need to be revised since the list of decision factors they identified is incomplete (for example, the factors may explain key marketing concerns but fail to address relevant financial considerations) or is unrealistic (for example, they suggest a 25 percent increase in revenues without proposing an increased promotional budget).

In addition, the PACADI framework can be used alongside quantitative assignments, in-class exercises, and business and management simulations. The structured, multi-step decision framework encourages careful and sequential analysis to solve business problems. Incorporating PACADI as an overarching decision-making method across different projects will ultimately help students achieve desired learning outcomes. As a practical “beyond-the-classroom” tool, the PACADI framework is not a contrived course assignment; it reflects the decision-making approach that managers, executives, and entrepreneurs exercise daily. Case analysis introduces students to the real-world process of making business decisions quickly and correctly, often with limited information. This framework supplies an organized and disciplined process that students can readily defend in writing and in class discussions.

PACADI in Action: An Example

Here’s an example of how students used the PACADI framework for a recent case analysis on CVS, a large North American drugstore chain.

The CVS Prescription for Customer Value*

PACADI Stage

Summary Response

How should CVS Health evolve from the “drugstore of your neighborhood” to the “drugstore of your future”?

Alternatives

A1. Kaizen (continuous improvement)

A2. Product development

A3. Market development

A4. Personalization (micro-targeting)

Criteria (include weights)

C1. Customer value: service, quality, image, and price (40%)

C2. Customer obsession (20%)

C3. Growth through related businesses (20%)

C4. Customer retention and customer lifetime value (20%)

Each alternative was analyzed by each criterion using a Customer Value Assessment Tool

Alternative 4 (A4): Personalization was selected. This is operationalized via: segmentation—move toward segment-of-1 marketing; geodemographics and lifestyle emphasis; predictive data analysis; relationship marketing; people, principles, and supply chain management; and exceptional customer service.

Implementation

Partner with leading medical school

Curbside pick-up

Pet pharmacy

E-newsletter for customers and employees

Employee incentive program

CVS beauty days

Expand to Latin America and Caribbean

Healthier/happier corner

Holiday toy drives/community outreach

*Source: A. Weinstein, Y. Rodriguez, K. Sims, R. Vergara, “The CVS Prescription for Superior Customer Value—A Case Study,” Back to the Future: Revisiting the Foundations of Marketing from Society for Marketing Advances, West Palm Beach, FL (November 2, 2018).

Results of Using the PACADI Framework

When faculty members at our respective institutions at Nova Southeastern University (NSU) and the University of North Carolina Wilmington have used the PACADI framework, our classes have been more structured and engaging. Students vigorously debate each element of their decision and note that this framework yields an “aha moment”—they learned something surprising in the case that led them to think differently about the problem and their proposed solution.

These lively discussions enhance individual and collective learning. As one external metric of this improvement, we have observed a 2.5 percent increase in student case grade performance at NSU since this framework was introduced.

Tips to Get Started

The PACADI approach works well in in-person, online, and hybrid courses. This is particularly important as more universities have moved to remote learning options. Because students have varied educational and cultural backgrounds, work experience, and familiarity with case analysis, we recommend that faculty members have students work on their first case using this new framework in small teams (two or three students). Additional analyses should then be solo efforts.

To use PACADI effectively in your classroom, we suggest the following:

Advise your students that your course will stress critical thinking and decision-making skills, not just course concepts and theory.

Use a varied mix of case studies. As marketing professors, we often address consumer and business markets; goods, services, and digital commerce; domestic and global business; and small and large companies in a single MBA course.

As a starting point, provide a short explanation (about 20 to 30 minutes) of the PACADI framework with a focus on the conceptual elements. You can deliver this face to face or through videoconferencing.

Give students an opportunity to practice the case analysis methodology via an ungraded sample case study. Designate groups of five to seven students to discuss the case and the six steps in breakout sessions (in class or via Zoom).

Ensure case analyses are weighted heavily as a grading component. We suggest 30–50 percent of the overall course grade.

Once cases are graded, debrief with the class on what they did right and areas needing improvement (30- to 40-minute in-person or Zoom session).

Encourage faculty teams that teach common courses to build appropriate instructional materials, grading rubrics, videos, sample cases, and teaching notes.

When selecting case studies, we have found that the best ones for PACADI analyses are about 15 pages long and revolve around a focal management decision. This length provides adequate depth yet is not protracted. Some of our tested and favorite marketing cases include Brand W , Hubspot , Kraft Foods Canada , TRSB(A) , and Whiskey & Cheddar .

Art Weinstein , Ph.D., is a professor of marketing at Nova Southeastern University, Fort Lauderdale, Florida. He has published more than 80 scholarly articles and papers and eight books on customer-focused marketing strategy. His latest book is Superior Customer Value—Finding and Keeping Customers in the Now Economy . Dr. Weinstein has consulted for many leading technology and service companies.

Herbert V. Brotspies , D.B.A., is an adjunct professor of marketing at Nova Southeastern University. He has over 30 years’ experience as a vice president in marketing, strategic planning, and acquisitions for Fortune 50 consumer products companies working in the United States and internationally. His research interests include return on marketing investment, consumer behavior, business-to-business strategy, and strategic planning.

John T. Gironda , Ph.D., is an assistant professor of marketing at the University of North Carolina Wilmington. His research has been published in Industrial Marketing Management, Psychology & Marketing , and Journal of Marketing Management . He has also presented at major marketing conferences including the American Marketing Association, Academy of Marketing Science, and Society for Marketing Advances.

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Impact Accounting: Raising ESG Reporting Standards

Sponsor content from Pure Storage.

by Charles Giancarlo

Environmental, social, and governance (ESG) frameworks began in 2004 as a concept from the United Nations to help investors assess a company’s global impact and drive corporate responsibility. In the 20 years since its introduction as a broad concept without strict guidelines, ESG has become politicized. Detractors argue that it introduces divisive social causes into corporate decision making.

Certainly, there are many areas for serious debate within the topics of social responsibility and corporate governance. However, anything done with greater efficiency is a general good. Reducing waste and pollution is positive for all concerned, and the reduction of uncontrolled costs to society is to be applauded.

Still, the ESG measurement landscape has become highly fragmented, marked by inconsistent standards and , making environmental reporting unreliable , often misleading, and difficult to interpret. Today, 75% of companies say they are unprepared for upcoming ESG audits, according to Reuters .

Confusing Calculations

Companies reporting ESG metrics must sift through many layers of supply and distribution chains over which they have little oversight and must deal with diverse methodologies, agencies, and reports. They must estimate the environmental impact of partners far out in their supply chains with which they have no direct business, leading to both scalability and accuracy issues, and to potential manipulation, as SEC settlements show. If unchecked, ESG compliance costs will rise sharply, risking report reliability, according to CNN .

The confusing comparisons of various ESG measurements’ environmental performance exemplify the challenge businesses and consumers face in evaluating products’ and companies’ environmental claims. “Greenwashing”—companies’ dishonest efforts to embellish their environmental credentials, engage in selective reporting, or use carbon credits with dubious effectiveness—has become a common problem.

No reasonable person would argue about whether companies should do better in addressing sustainability issues. Proponents say ESG has proved to be a compass for identifying companies that excel financially, demonstrating that prioritizing environmental sustainability, social responsibility, and governance is both good economics and good ethics.

However, disentangling ESG’s components into separate priorities would simplify and reduce needless complexity and disagreement. With the advancement of artificial intelligence, new energy and environmental challenges will also necessitate new dialogue among all stakeholders.

The Impact of Impact Accounting

So the question remains: How can organizations most efficiently and effectively reduce their corporate environmental impact with integrity and clarity?

Historically, market-based mechanisms and transparent corporate practices have driven global economic growth, expanding the middle class and enhancing living standards worldwide. Today’s environmental sustainability challenges stem from the absence of these market-based mechanisms in managing critical resources, pollution, and waste.

The good news is that the practices and tools exist to address this measurement gap through impact accounting . By using impact accounting standards, companies can:

• Use their existing cost accounting capabilities for externalities—the indirect costs (such as carbon dioxide or other pollution) that companies impose on society but that do not show up in their financial statements or products’ specifications;

• Use universal standardized measures for these indirect costs; and

• Employ standard audit practices and auditors to ensure fair, common, and supportable numbers and reports across companies and industries.

Impact accounting is transparent and scalable because it allows each organization to use the metrics its direct suppliers provide to its own accounts, and then to transform these inputs into metrics for their customers.

This is a far more efficient process than having every company analyze the many layers in its supply chain. It uses standardized metrics for each critical resource and integrates them into its financial reporting. And it allows companies to incorporate these costs into their product pricing and features. In so doing, impact accounting also creates a competitive market based on products’ environmental qualities, while fostering transparency through standard auditing oversight.

For public companies, impact accounting transforms the environmental landscape. It introduces a market-based mechanism that quantifies the environmental impact of production, packaging, and usage of products and services in monetary terms, creating a competitive market for the reduction of externalities, which in time will lead to a significant reduction of external costs to society.

Through impact accounting, each supplier can disclose to customers the true resource costs to manufacture and use their product, in addition to the product’s price. The practice expands traditional cost accounting to incorporate societal costs—addressing the gap where companies cover direct costs, like consumption of energy and materials, but not the environmental costs of emissions or waste disposal.

Integrating these costs into both product sales and corporate financial reporting allows companies to report profits alongside resource usage such as energy, water, precious metals, and even plastics, providing a true total cost of production and a true audited view of the environmental footprint to ensure fairness and comparability. Importantly, impact accounting is a scalable and efficient practice for businesses that aligns with increasing consumer demand for sustainable practices, marrying profitability with sustainability.

Leading Sustainable Change

Modern efficiency relies on accurate pricing and audited statements, fostering business trust. Impact accounting extends this trust by quantifying indirect costs, promoting efficiency, and allowing choices based on resource efficiency and product value. This approach is gaining traction among institutions like Pure Storage.

Adopting impact accounting and innovating to reduce the energy and carbon footprint of business takes society steps closer to a transparent, accountable, and sustainable future, which is beneficial for our collective well-being. Pure Storage is replacing outdated, energy-intensive hard disk drives with efficient flash storage, cutting energy use and power-related emissions by up to 85%, and setting the standard in environmental reporting in the data storage industry through impact accounting.

We call on technology leaders to help reduce the energy demands of data centers, which are projected to double to 4% of global electricity use in the next two years. Impact accounting will reduce the cost of and confusion in ESG reporting and benefit all customers, significantly strengthen our communities, and allow businesses to play a sizable role in leading us toward a more sustainable future.

Learn more about Pure Storage’s sustainable tech infrastructure and its impact on reducing energy consumption and minimizing e-waste.

Charles Giancarlo is the CEO of Pure Storage 

Lawsuits test Tesla claim that drivers are solely responsible for crashes

San Francisco — As CEO Elon Musk stakes the future of Tesla on autonomous driving, lawyers from California to Florida are picking apart the company’s most common driver assistance technology in painstaking detail, arguing that Autopilot is not safe for widespread use by the public.

At least eight lawsuits headed to trial in the coming year — including two that haven’t been previously reported — involve fatal or otherwise serious crashes that occurred while the driver was allegedly relying on Autopilot. The complaints argue that Tesla exaggerated the capabilities of the feature, which controls steering, speed and other actions typically left to the driver. As a result, the lawsuits claim, the company created a false sense of complacency that led the drivers to tragedy.

Evidence emerging in the cases — including dash-cam video obtained by The Washington Post — offers sometimes-shocking details: In Phoenix, a woman allegedly relying on Autopilot plows into a disabled car and is then struck and killed by another vehicle after exiting her Tesla. In Tennessee, an intoxicated man allegedly using Autopilot drives down the wrong side of the road for several minutes before barreling into an oncoming car, killing the 20-year-old inside.

Tesla maintains that it is not liable for the crashes because the driver is ultimately in control of the vehicle. But that contention is coming under increasing pressure, including from federal regulators. Late Thursday, the National Highway Traffic Safety Administration (NHTSA) launched a new review of Autopilot, signaling concern that a December recall failed to significantly improve misuse of the technology and that drivers are misled into thinking the “automation has greater capabilities than it does.”

Meanwhile, in a twist, Tesla this month settled a high-profile case in Northern California that claimed Autopilot played a role in the fatal crash of an Apple engineer, Walter Huang. The company’s decision to settle with Huang’s family — along with a ruling from a Florida judge concluding that Tesla had “knowledge” that its technology was “flawed” under certain conditions — is giving fresh momentum to cases once seen as long shots, legal experts said.

“A reckoning is coming as more and more of these cases are going to see the light of a jury trial,” said Brett Schreiber, a lawyer with Singleton Schreiber who is representing the family of Jovani Maldonado, 15, who was killed in Northern California when a Tesla in Autopilot rear-ended his family’s pickup truck in 2019.

Tesla did not respond to multiple requests for comment on the lawsuits.

The outcomes of the cases could be critical for the company. Tesla’s stock has lost more than a third of its value since the beginning of the year. Last week, the company reported a steeper-than-expected 55% plunge in first-quarter profit as it struggles with falling sales of electric vehicles and stiff competition from China. To allay investors’ concerns, Musk has made lofty promises about launching a fully autonomous “robotaxi” in August. Soon, he said during Tuesday’s earnings call, driving a car will be like riding an elevator: you get on and get out at your destination.

“We should be thought of as an AI or robotics company,” Musk told investors. “If somebody doesn’t believe Tesla is going to solve autonomy, I think they should not be an investor in the company. But we will.”

Meanwhile, the company has defended itself in court documents by arguing that its user manuals and on-screen warnings make “extremely clear” that drivers must be fully in control while using Autopilot. Many of the upcoming court cases involve driver distraction or impairment.

Autopilot “is not a self-driving technology and does not replace the driver,” Tesla said in response to a 2020 case filed in Florida. “The driver can and must still brake, accelerate and steer just as if the system is not engaged.”

But the Huang case also potentially involved a distracted driver: Huang was allegedly playing a video game when his Tesla plowed into a highway barrier in 2018. Tesla has not said why it decided to settle the lawsuit, and details of the settlement have not been disclosed in court documents.

More fatal crash details emerge

Meanwhile, federal regulators appear increasingly sympathetic to claims that Tesla oversells its technology and misleads drivers. Even the decision to call the software Autopilot “elicits the idea of drivers not being in control” and invites “drivers to overly trust the automation,” NHTSA said Thursday, revealing that a two-year investigation into Autopilot had identified 467 crashes linked to the technology, 13 of them fatal.

NHTSA did not offer specific information about those crashes. But two fatal crashes from 2022 are detailed in lawsuits that have not been previously reported.

In Phoenix, Iwanda Mitchell, 49, was driving a Tesla in May 2022 when she struck a Toyota Camry that had stalled on the highway, according to court documents and dash-cam footage obtained by The Post. According to the Mitchell family’s lawyer, Jonathan Michaels with MLG Attorneys at Law, Autopilot and the car’s other features — including forward collision warning and automatic emergency braking — failed to result in Mitchell’s Tesla taking evasive action and prevent the vehicle from barreling into the stalled sedan.

Mitchell was then struck and killed by an oncoming vehicle when she got out of her car.

Tesla did not respond to a request for comment regarding this case. In response to the complaint in January 2024, Tesla said it denies the allegation and “has not yet had an opportunity to inspect” Mitchell’s vehicle.

About a month later in Sumner County, Tenn., Jose Roman Jaramillo Cortez drank two beers and three tequila shots after his shift at a local restaurant, and then hopped into his Tesla Model 3, court documents say. He plugged his address into the Tesla’s GPS and flicked on Autopilot, it said.

According to the lawsuit filed in June 2023 and dash-cam footage obtained by The Post, the car then pulled onto the wrong side of the road. After driving south in a northbound lane for several minutes, the Tesla rammed into a car driven by Christian Malone, 20, who died from the impact. In its response to the complaint, Tesla said “the crash was caused by the negligence and/or recklessness of the driver.”

Trial dates for both cases will be set later next year, Michaels said.

In another case — set for trial in November in Key Largo, Fla. — a Tesla in Autopilot allegedly failed to detect an approaching T-intersection while its driver searched for a dropped phone. The Tesla barreled through flashing lights and a physical barricade before crashing into a vehicle parked on the side of the road, killing a woman and seriously injuring a man.

In court documents, Tesla has argued that the driver was ultimately responsible for the trajectory of the car. Tesla also states in user manuals that Autopilot may not operate as intended “when unable to accurately determine lane markings” or when “bright light is interfering with the camera’s view.”

When these cases head to trial, juries may be asked to consider whether Tesla’s many driver warnings are sufficient to spare the company from liability. Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, said the last thing the company needs is a highly publicized courtroom battle that focuses attention on such questions.

At a trial, “the defense would dig into the weeds … and it would become very clear that the perception of the Autopilot software was very different from the reality,” Gerber said. “Every day would be a headline, and it would be embarrassing.”

So far, Tesla has faced a jury only once over the role Autopilot may have played in a fatal crash. In Riverside, Calif., last year, a jury heard the case of Micah Lee, 37, who was allegedly using Autopilot when his Tesla Model 3 suddenly veered off the highway at 65 mph, crashed into a palm tree and burst into flames. Lee died from his injuries, while his fiancée and her son were severely injured.

Due to the extensive damage to the car, Tesla said it could not be proved that Autopilot was engaged at the time of the crash. During the trial, Michael Carey, the attorney for Tesla, argued the technology was not at fault, and that the crash “is classic human error.” According to a toxicology report taken after the crash, Lee had alcohol in his system but it was within the legal limit in California.

“This case is not about Autopilot. Autopilot didn’t cause the crash,” Carey said during opening statements. “This is a bad crash with bad injuries and may have resulted from bad mistakes — but you can’t blame the car company when that happens. This is a good car with a good design.”

Ultimately, Tesla’s arguments prevailed, and a jury found the company not liable.

But the company appears to face headwinds in some other cases. Last year, Florida Circuit Judge Reid Scott upheld a plaintiff’s request to seek punitive damages in a case concerning a fatal crash in Delray Beach, Fla., in 2019 when Jeremy Banner and his Tesla in Autopilot failed to register a semi truck crossing its path. The car plowed under the truck at full speed, killing Banner on impact.

In the ruling, Scott said the family’s lawyers “sufficiently” presented evidence to reasonably seek punitive damages at trial, which could run millions of dollars.

The plaintiffs’ evidence included that Tesla “knew the vehicle at issue had a defective Autopilot system,” according to the order. Citing other fatal crashes involving Autopilot, Scott wrote that there is a “genuine” dispute over whether Tesla “created a foreseeable zone of risk that posed a general threat of harm to others.”

Tesla’s appeal of the ruling is pending.

Change in defense strategy?

As the spate of lawsuits churns forward, Tesla has shown a fresh willingness to settle such cases — despite Musk’s vow on Twitter in 2022 to never settle “an unjust case against us even if we will probably lose.”

In addition to settling the Huang case, Tesla “indicated” that it was open to discussing a potential settlement in the Riverside case as it was being presented to a jury last fall, said Michaels, the MLG lawyer who represented Lee’s family.

The month-long trial featured testimony from an accident reconstructionist, a top engineer at Tesla and a paramedic who responded to the crash and said it was among the most horrific crashes he had ever seen. Michaels said he declined to engage in settlement talks because he wanted to continue to “make this a really public issue.” He said he also “did not have confidence in our ability to come to an agreeable amount.”

Tesla and its lawyer in the case, Carey, did not respond to a request for comment.

After four days of deliberations, the jury decided the case in Tesla’s favor.

Though he lost, Michaels said the trial attracted media attention and gave other lawyers with cases against Tesla insight into the company’s defense strategy. Plus, he said, his law firm’s phone has since been blowing up with potential clients.

“We walked away from guaranteed money,” Michaels said, “but that wasn’t what it was about.”

NTRS - NASA Technical Reports Server

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