Practical strategy cases, or Business Case studies, are an essential step in the recruitment process in a consulting firm, whatever the sector targeted (strategy consulting, management, engineering, etc.). Today, we offer you a methodology to be able to approach them calmly during interviews.
Strategy cases are essential. It is therefore not possible for a candidate to appear for these interviews without having prepared them in advance, especially since the logic of these cases is often the same and requires to be seen several times before being acquired. With regard to strategy consulting firms, there are two categories of exercises: strategy cases and market sizing.
Strategy cases in consulting: what are they?
First of all, it should be remembered that strategy cases represent a large part of your rating during recruitment processes in a consulting firm. Each office has its own routine for organizing them. You can look at a strategy case during each round of recruitment, from the first round or after the fit interview, with a Partner from the office or with consultants. No candidate can escape it! This is why it is absolutely essential to prepare them if you want to join a strategy consulting firm.
The strategy cases generally last between 30 and 45 minutes, except for the series of mini-strategy cases which each take around ten minutes, generally asked in the first round, after the motivational interview. Whatever the configuration of the case, its presentation and resolution are done directly with a consultant. He gives the candidate a few minutes to think at the start of the exercise.
Please note, here we will not talk about longer strategy cases, to be done at home, with a PowerPoint to submit. This exercise is also regularly requested by large MBB-type consulting firms.
What is a strategy case?
A strategy case is the summary of a mission already carried out, a typical and real example from the work of the firm. Concretely, a mission on the profitability of a restaurant chain could give rise to the question: “How can we increase the profits of a restaurant?” “. This mini case should be completed in 10 minutes. The consultant can also make the case longer and more difficult, by introducing different variables such as information about the market and the restaurant’s environment. Some are useful, others not, it’s up to you to sort them out.
For cases that require 30 minutes to resolve, the statements are often long, complex, and contain a lot of data on the market or the client’s objectives. They can conclude with: “Should the deal be concluded between this customer and this supplier? “. For this type of case, do not hesitate to clarify the situation orally, to explain the main issues and to ask questions if something seems obscure or has not been said. You can also ask questions that show your knowledge of the consulting world: How long does the mission last? Has the client ever encountered this type of situation and how did they react?
Useful information to know is that firms favor cases that correspond to their preferred sector. Expect to cover financial services topics at Oliver Wyman or private equity for Bain & Co.
Finally, it is important to remember that there is no single answer for every strategy case. Likewise, recruiters expect less encyclopedic knowledge of the market than constructed, structured reasoning, with turnkey recommendations and original ideas.
What is expected of the candidate in resolving strategy cases
The objective of the strategy case is threefold: to evaluate the candidate’s capacity for analysis, reflection and presentation. Thus, the resolution of a strategy case must be structured around three criteria: response-oriented solutions, an MECE presentation (Mutually Exclusive, Collectively Exhaustive, (i.e. Mutually Exclusive, Collectively Exhaustive) and relevant recommendations.
1. Be answer-focused
The final presentation should focus on responding to the problems encountered by the client. It must be as useful as possible to him. So don’t dwell on trivial details if you don’t need to. In short, do not build your reasoning on major issues (customers, competitors, suppliers). Don’t forget your Porter analysis or your SWOT for no reason either. Instead, rely on the response to the problems mentioned: lack of customer loyalty, price competition, supply difficulties, etc.
To do this, you can ask yourself the question: Does this part allow me to respond to a specific problem? Please note that for this exercise, it is imperative to cover all the issues: each problem must have an analysis and at least one specific recommendation.
2. The MECE structure
The ability to structure your presentation is essential. The client’s understanding of the recommendations given will depend on the clarity of the presentation. It is appropriate to adopt a MECE structure: Mutually Exclusive, Collectively Exhaustive. In short, you need to break the problem down into sub-problems that are easier to solve. By breaking down the problem, you will be able to focus on each point and not miss anything. Thus, each point you develop will be distinct from all the others and the whole will cover all the client’s issues. You need to give the feeling that you have addressed all the issues and covered all the possible answers.
For example, to answer the question “How to increase profits in a restaurant?” », it will be necessary to remember that the profit is equal to the income minus the costs. The costs themselves can be differentiated between fixed costs and variable costs. As for revenues, they are distinguished between those achieved through delivery and on site. On-site revenue is quantified using the number of customers, number of dishes per customer and price of each dish, etc. And, for each item, you will have to give a relevant recommendation.
3. Relevant recommendations
Indeed, the recommendations made must be relevant. No need to list general truths or vague recommendations that would work for any type of situation. The solutions provided must be precise and adapted to the context. States the critical factors of the problem encountered and highlights relevant indications.
For example, for a luxury brand, it is useless to say that Chinese population growth justifies the establishment of the brand there. Firstly, because it is false (with growth of 5.5% in ten years, it is the lowest rate ever recorded since 1970), then because it is not the number of inhabitants which matters, but the share of them likely to buy luxury products.
The recommendations must also be, as far as possible, creative for at least two reasons. On the one hand, because clients who contact consulting firms often come looking for solutions that they could not have thought of, either through forgetfulness or because they were not even aware that such solutions existed. Finally, because your objective during this strategy case is to differentiate yourself from other candidates. You must therefore show a little creativity and ingenuity, while keeping in mind that the advice you give must be consistent with the overall strategy and materially achievable: it fits into a real context.
The different types of strategy cases: Examples.
We remind you that strategy cases are real business cases. There are three main categories: optimization cases, cost and revenue cases, and the opening of new projects.
1. Optimization cases
For optimization cases, the candidate is confronted with a typical problem encountered by the company. Generally this problem is linked to its sector of activity. This is about addressing the operational efficiency of the client.
For example, “How do I resolve delivery delays at this large online retail chain?” “. Here you can start by dividing the problem into several categories: delivery delays to the warehouse, upstream; poor management of goods within the warehouse; delays in loading the truck, transporting the packages and unloading the truck at the end consumer, downstream. And, for each period, you can list the difficulties encountered. For delivery delays to the upstream warehouse, it is necessary to take into consideration the times taken by the company to order the goods, the times taken by the supplier to deliver them and the efficiency in receiving these goods. We repeat the reasoning using, if possible, knowledge of the supply chain, acquired in school and/or internship, to give relevant recommendations.
Another case of strategy, rather oriented private equity : “An investment fund wishes to acquire Nigeria’s leading telecom operator (100 million customers). What is the potential value of this operation? » Here is another case of strategy, this time specific to the automotive world: “The new European standards in terms of ecological transition require that the average carbon emissions per kilometer of all vehicles sold do not exceed one gram. Today this average stands at 1.3 grams. How to do it? »
2. Cases of costs and revenues
The strategy cases relating to cost and revenue issues are quite classic and apply to all sectors. They concern issues linked to margin, turnover and customer profits. For example: “This distribution chain specializing in DIY tools has 850 brands in Europe. 40% of them are located in city centers and 60% outside cities. Sales have been declining for 3 years. What advice would you give him? » Or: “How can we increase the margin of this leading group in film production and distribution? » Or again: “This French shoe brand seeks to identify the causes of its poor results and obtain solutions for quick victories. »
In these cases of strategy, it is first necessary to define the terms of the subject such as turnover, margin or profit. This is the best way to adopt a MECE structure to provide the most useful recommendations possible.
3. Opening new projects
Finally, the opening of new projects is a relatively classic case of strategy. The customer wonders whether it makes sense to launch into a new product line or a new market. It can be even broader. Here is an example: “The Paris town hall wants to remove cars from the banks of the Seine in order to combat CO2 emissions. Give them ideas for setting up these new spaces. »
Here again, an exhaustive definition of terms makes it possible to propose relevant solutions. The objective of this measure is to combat CO2 emissions, so there is no need to propose solutions that are too polluting. The quays are open-air corridors, along the Seine, which cross Paris from one end to the other. Climatic hazards – such as floods which reached around 6 meters in June 2016 and January 2018 – must therefore be taken into account.
The quays cross Paris and are therefore easily accessible to everyone. These can represent important gathering places. It is also a very attractive space for tourists who pass in a few minutes from the Eiffel Tower to Notre-Dame, via the Alexandre III bridge.
All these considerations should allow you to draw up logical reasoning in which certain solutions should be put forward. For example, you could propose the installation of pop-up bars, sports equipment or cycle paths. On the other hand, you can rule out the installation of charging stations for electric cars, the creation of warehouses for La Poste or tram lines. Once again, the coherence of your presentation plays an important role in the grading.
