Indian School of Business (ISB), Hyderabad
Hyderabad, Telangana
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McKinsey & CompanyIndian School of Business (ISB), Hyderabad Placement Interview Questions
Updated
22 Sep 2024
49 interviews found
4 Interview Rounds
Interview Preparation Tips
Round: Case Study Interview
Experience: In PI, we discussed the scale and infrastructure that Google has and how it’s gaining competitive advantage from it.
I told him searching porn well is very important for a search engine entering a new market, and from there we went into market entry strategies for the search engines.
The PI went on for 20-25 minutes, at which point he realized he had to ask me a case. He asked me a really simple case which got over in 5 minutes
The case was very trivial. It was just multiplying a bunch of numbers together. Less than 5 minutes.
Round: Case Study Interview
Experience: Interviewer also works in IT, so he wanted to discuss what Infosys should do next. We talked about their business model, about billing rates and how they can leverage their assets. I brought up the point of “Centers of Excellence” and how they don’t really work in IT services. He asked why, then asked me to come up with alternatives to the model. I talked a while about a skunk-works type project team that they should set up. We discussed the future of the market etc…
The interview was very conversational. No case really, more of a discussion around what I thought of the IT industry and where I see the future of the industry.
Round: personal interview
Experience: This interview was about 20 minutes long, and it was all PI. He asked about why I did an MBA, what I liked/disliked about working at a place like Google. This interview was very different from the traditional case interviews. He asked me “What would people on the campus say about Aditya Kulkarni?”, “Why consulting when you’re doing so well in Google?” etc… I was very honest with my answers, and didn’t use any of the canned responses. I even said that I’m quite lazy and don’t like doing hard work.
We even discussed strategies to do well at exams without studying for them.
I was very honest and upfront about what I wanted from McKinsey. I didn’t use any of the “prepped” answers, and just told him what I thought. I even told him that I was undecided about joining McKinsey (if they made an offer), and he seemed OK with that.
Skills:
College Name: Indian School Of Business (ISB)
Experience: In PI, we discussed the scale and infrastructure that Google has and how it’s gaining competitive advantage from it.
I told him searching porn well is very important for a search engine entering a new market, and from there we went into market entry strategies for the search engines.
The PI went on for 20-25 minutes, at which point he realized he had to ask me a case. He asked me a really simple case which got over in 5 minutes
The case was very trivial. It was just multiplying a bunch of numbers together. Less than 5 minutes.
Round: Case Study Interview
Experience: Interviewer also works in IT, so he wanted to discuss what Infosys should do next. We talked about their business model, about billing rates and how they can leverage their assets. I brought up the point of “Centers of Excellence” and how they don’t really work in IT services. He asked why, then asked me to come up with alternatives to the model. I talked a while about a skunk-works type project team that they should set up. We discussed the future of the market etc…
The interview was very conversational. No case really, more of a discussion around what I thought of the IT industry and where I see the future of the industry.
Round: personal interview
Experience: This interview was about 20 minutes long, and it was all PI. He asked about why I did an MBA, what I liked/disliked about working at a place like Google. This interview was very different from the traditional case interviews. He asked me “What would people on the campus say about Aditya Kulkarni?”, “Why consulting when you’re doing so well in Google?” etc… I was very honest with my answers, and didn’t use any of the canned responses. I even said that I’m quite lazy and don’t like doing hard work.
We even discussed strategies to do well at exams without studying for them.
I was very honest and upfront about what I wanted from McKinsey. I didn’t use any of the “prepped” answers, and just told him what I thought. I even told him that I was undecided about joining McKinsey (if they made an offer), and he seemed OK with that.
Skills:
College Name: Indian School Of Business (ISB)
1 Interview Round
Interview Preparation Tips
Round: Case Study Interview
Experience: PI Questions came after the case. It started with interviewer asking about my prior work experience. All subsequent questions emanated from the first question which was: “Of all your achievements, which one do you think is the most important to you”. This was a classic case of being able to draw the interviewer to where you want to go. I talked about a very tough implementation project that I did at ITC Factory in Munger, Bihar. I said for me an achievement is about 2 things: (1) The Context in which I
achieved it (2) What it meant to me at that stage. In the context part, I talked about managing an un-skilled workforce.
Then he asked me how do you manage such a work force? I said by established an internal connect with them. He asked how do you do that? Went into a couple of instances which made me establish such connections. Although he had asked me to talk about just 1 instance, but seeing that he was impressed, I requested him if I could talk of another different type of incident which is also very close to my heart. He allowed. I talked about selling a extravagant project to the company chairman. It was
about high-end world class patented Audio-Visual systems. interviewer too seemed to have some knowledge about those equipments and thus we had an interesting conversation. The idea was, I could not only show my Project Implementation Abilities
but also talk about Planning and Inter-personal skills.
The case was about a canned juice manufacturing company. Recently they have diversified into different types/more variety of juices. Their profitability has gone down in comparison to their competitors. Need to analyze, identify root causes and advice solutions to the client. I asked a few ‘Start-Up’ question These are standard questions which you would ask for most of the cases. Some of them were: How big is the client? Has been in the business for how long and how and when has their business strategy changed. Who are the major competitors? What are the various revenue streams (different type of juices et al)? He gave
me some info but asked to assume one standard fruit juice for the analysis. Now I approached in the classical Profitability Case. Profit = Revenue – Cost. Problem can be in either of the two factors i.e. Revenue or Cost. I asked him if he wanted to delve into Revenue or Cost first. He advised to go into the cost aspect (we never visited the revenue aspect). Then he asked me about what are the various cost heads in such a business. This was the key!!! Process Value Chain rules I drew the entire value
chain from Agri-sourcing of fruits to In-Bound Logistics to Warehousing to Processing/Manufacturing to Out-Bound Logistics to Retailer to Customer. Started from the Left Side i.e. Sourcing. He asked me what could be reasons for lower profits. This was more of a brainstorming session. Coming from ITC (of e-choupal fame) background, I could talk the possibility of competitors being able to backward integrate and establish a symbiotic relationship with the farmers which allows them to remove the middle-men and thus get cheaper and good quality fruits, whereas our client has not done that. Then came to In-Bound logistics. I
said that juicy fruits being mostly hygroscopic are prone to damage in transit. Talked about the quality of infrastructure en-route to their plants and quality of logistics partner. Then came the crux: Processing/Manufacturing. At first it was qualitative.
I said the client might have a very high Cost/Unit because of excess/high quality infrastructure. Somehow this turned out to be the case. I realized there has been loads of ‘strategy’ based talking and there bound to be some nos. I asked him and he gave me whole lot of nos. about their manufacturing costs as well as the manufacturing costs of competitors. There was Maths involved here as he gave costs and throughputs of different plants of client as well as competition. Had to find out the average cost per unit of juice manufactured by client vs competition. Of course client’s cost of manufacturing was way higher. Talked about some ways as to how can this be brought down. Talked about economies of scale as some of the assets were under-utilized. This would involve launching other related products as well or expanding markets. There were a few more points discussed but this was merely a closure.
Asked him a couple of questions on his area of expertise and how markets were shaping this year.
I believe that your work-experience (which is a huge factor in your being short-listed) must be reflected in the way you approach cases. Sometime we lose sight of that in following standard structures/frameworks etc. At each stage, I could use my FMCG and Manufacturing experience to come up possible reasons. So, your experiences must show in case solving as well and I believe I did that well. One very interesting thing, right at the start which I think worked well for me. When I entered the room, I generally talked about the view being great from the window. Nal generally asked whose room was it. I had not noticed the name-plate while entering which anyways was covered with a McKinsey signage. Looking at the books and brochures in the room, I
made a guess giving the reason of the guess. It was Bang On!!!
Tips: Do not lose sight of Who you are and What have you achieved till date.This should reflect in your interview. Also, be ready to delve into nos. Interviewer also wants to test your analytic ability with nos. as they back/justify your claims, ideas and suggestions. So ask him if he has nos. when he says “Cost is High” or “Profits are Low” etc.
Round: Case Study Interview
Experience: Just imagine. It does not get bigger than him. The senior most guy in the panel who is rumored to take the final call on each and every candidate. I was to interview with him in my Round-1. Thought this was the do or die situation. Questions started coming right from my CV. We talked about taking up very good projects additional to normal course curriculum, participation in sports, organizing ILS and some other personal focus areas for the year. Then he asked which one of the 3 academic experiences: School,
Undergrad, ISB was most enriching. I split it into 2: Academic and Over- all. Academic was School and Over-all was Undergrad for me. He asked me the reason. Came from the CV plus how it was important for personality development and so on… Then he asked about my work-experience. Talked about CAPEX for a while. What did I do as Capex Manager etc.
Started off with the standard warm-up questions but somehow warm-up questions and interviewer don’t go too well. I asked him about the background of the company/competition/industry. For each question I was quizzed on why did I think that question was
relevant and how will it help me achieve the final objective i.e. valuation. Some useful information which I could generate was that the ‘patent’ was for cotton farming and would increase the yield of cotton growth. Realizing that it was a valuation case, I proposed following the a combination of 3 approaches -(1) Value Based Costing (2) Competition Based Costing (3) Cost-Up; to come up with a band of prices and then zero-in on the final price based on other factors. He agreed. Started with Value i.e. Willingness to Pay on the part of the customer. The customers would of course be cotton formers. Then he asked what is the value of the patent to them? I told him about it increasing the yield and asked if he could provide some nos. on the same. He said it increases the yield per sq. ft by a factor of 50%. Believing that it would again be a complicated nos. case, I took some time and came up with a complicated structure to calculate the monetary value of this increase in yield. It involved numerous factors such as average land-holing, no. of cotton farmers, current yield, cotton prices in the market etc. etc. But rest-assured interviewer cases would rarely involve complicated calculations. He said he was looking for something very simple and asked me to think about it.
Now was the moment of surprise. While I was thinking, he asked me to pause. He said “Oh you have worked in Capex right? How would you reduce Capex Cost in a Power Plant?” I was really surprised. I started off by giving him a ‘structure’ (yeah right!!!) which we need to put in place to identify the scope of reduction in Capex. I came up with various stages involved in setting up and commissioning a power plant which would be:
Engineering Design > Construction of Infrastructure > Procurement of equipments > Electricity Generation > Electricity Distribution & Transmission
Told him we need to look into Capex requirement at each of stage and started off with Engineering Design. Just I as started, he asked me to go back to the Patent Case (strange!!!!)
He wanted a simplified model to calculate the value. After some discussion, we have me the annual turnover of cotton in India and the average price per ton. From this I calculate the value of the higher yield that all Indian farmers could get.
He asked apart from increasing revenue, how else the patent could benefit the farmers. Now with revenue there has to be cost!!! I said the new technology could lead to reduction in costs. Was asked to brainstorm on the costs involved. I told land, water for irrigation etc. Yes the patent reduced irrigation requirements. So I talked about reducing water consumption, associated energy costs as well as the psychological costs and risks associated with reliance on monsoons which could now be mitigated. He asked what else? Very happily I told him that now lesser seeds may be required. He said “The patent is a variety of seeds only”. I realized I had forgotten to ask him what does the ‘patent’ entail….in one of the professor’s language, “is it a bird or a plane”. Should have asked it upfront.
Anyways recovered. Had already found out of the increase in revenue (was asked to neglect decrease in costs) . Told him this would be the maximum willingness to pay and thus the upper end of the price band. He agreed. Asked him the cost of Research and Development. He asked why? Told him this would be the lower end of the price band unless the focus was not profitability but social upliftment. He said the focus was completely profitability and gave me a Net Present Value (assume N). Could not understand it immediately but realized that it is Revenue net the costs. Thus, the price band for the patent (in NPV terms) would be between Rs. 0 to N. He agreed and asked me to zero down on a value. Told him we need to look at similar launches in the past to capture some trend (and therefore arrive at a value in the middle) but he cut me short and said that no need to look at past records and
you would price it at less than N as we need to incentive the farmers to overcome their switching costs by passing on some benefit to them. Now this is what I eventually wanted to say but could not.
Firstly it seemed that Nothing went right. I wasn’t confident interviewing with him. Missed basic pointers and took time to identify the ‘simple’ model he was looking for. And of course couldn’t conclude well. But, later I was told, what went right was the CAPEX piece He wanted to test how good I was with my basics while I was caught up doing something else. Can’t expect this from anyone but him. The framework was bang on!!!
Got a bit psyched. Could not structure the Patent Case well and it was more of bouncing off ideas. But was later told this is what happens with everyone when they interview with him
Tips: Can’t emphasize more the need to be thorough with your work-ex and reflect your experience in the case. And if can, be confident no matter whosoever is interviewing you. Please remember, you know stuff much better than the interviewer. You have slogged your back while working. Who else would know about it better?
Round: Case Study Interview
Experience: I was told that he was very keen to meet me because of my Operations background and was especially interested in my CAPEX experience. I was told that he wanted to know more about what I had done during that stint. So I went in with the frame of mind that I have to maximize on that aspect of my profile. As expected, he asked me thread bare on what all I did in that stint. He did try to intimidate me by passing a few sarcastic remarks but I seemed to enjoy it and gave him appropriate responses. Then he asked a very interesting “What do I expect to hear if I were to go out and ask people randomly what they thought about you?” Now
McKinsey allows you to be innovative, frank and candid in such questions. But these need to be backed by some logic. Told him that different people are entitle to have different opinions about a person and how my different types of interactions i.e. in class, in events, in sports would result in varied responses. Also, talked about the situational aspect of it being 1st Day of placements and how that could influence the responses. Then came up with a few candid ones. You can call me to
find those out
Was told this is a short case and we need to wrap up the case fast. Without asking too many ‘Start-Up’ questions, came to the 3 dimensional approach of (1) Value to Customer (Willingness to Pay) (2) Competition (3) Cost-up. Started with Value. Was asked to brainstorm on how could this service be valuable to the customers? Talked about the qualitative aspects of Mumbai traffic having various tangible and in-tangible costs. Tangible benefits could be saving of time, fuel and fare. Intangible benefits could be alleviation of psychological costs like being stuck in traffic and getting to spend less valuable time at work and office. But he said that fare is something we need to find outThen moved to the 2nd aspect of competition. Asked him what were the other modes of transport available to the public? He said two alternatives existed- Road (Taxi) and Rail (Train). Asked him information on Time and Cost. Don’t remember the exact nos. so will use indicative figures. By Taxi you took 45 minutes and incurred costs (all inclusive- tangible + intangible) of Rs. 250. By train you took 30 minutes and incurred costs of Rs. 50. Now asked him the time supposed to be taken by Hovercraft and how many of them were there. He said that a hovercraft would take 20 minutes to cover the distance. The company was planning to start off with just 1 hovercraft. Asked him it’s capacity and he gave a figure of 100 people. In a flash of rushing ideas, I just said that then there would be a capacity constraint or atleast the hovercraft would always be full as the no. of travelers would far exceed 100 in a busy place like Mumbai. Although at that stage I didn’t know how this was important in the context of the case but he liked it Ok, coming back. Hovercraft saves 25 minutes over Taxi and 10 minutes
over Train. So though would try and valuate in monetary terms this saving of 25 minutes and 10 minutes. But point to note is that cost of Train is much lower than cost of Taxi. So, value based approach if applied on both the modes would result in two different nos. poles apart. He quizzed me how to proceed and after some discussion, I concluded that it made no business sense for the Hovercraft company to compete with the Train and thus focus on competing with the Taxi only. Plus, with only 100 seats, there would be no issue of in-sufficient traffic. Now this is where the earlier remark on capacity made sense At this stage he asked me to synthesize by giving an elevator pitch to the client CEO, asked me to fit it in 1 minute and started looking at his watch saying I was being evaluated for brevity. To wrap up, knowing that he Head the Ops practice, I asked him a question on benchmarking in operations and whether Indian firms are at a stage where they can be set as international benchmarks. Surprisingly,
he asked me why I wanted to know about it. Now this was strange as I had never ever heard of an interviewer asking the interviewee a counter question on the closing question. I told him how we had to benchmark many of our expansion/ up gradation projects with Japanese firms and wanted a view from someone who has been exposed to such facilities across the world. He was satisfied and then answered the question.
Discussion on Work-ex. Taking the sarcastic remarks in the right way and not getting intimidated. Again reflecting the learning from the work- experience in the case.
The synthesis could have been better. His staring at the watch for an accurate 1 min pitch intimidated me a bit. My bad. Otherwise nothing much was wrong here.
Tips: Again, work-ex thoroughness is imperative. Think through carefully the closing questions that the interviewer offers to answer at the end of the interview. The questions need to make sense in the backdrop of your profile, experiences and those of the interviewer.
Round: Case Study Interview
Experience: PI came after a couple of cases. This PI for this interview too was Work- Ex centric. Noshir asked me about the two most important leadership instances in me work life. Again my idea here was to use these 2 instances to reflect upon 2 different sides of my profile. First example was of course on leading one very tough project in a logistically challenging location. The other was captaining my ex-company’s cricket team which comprised of my bosses and super-bosses, and the leadership tools that you need to put into use in such situations.
This 11th interview of the day and for sure the final/most critical interview for McKinsey. When I was given the first case on Tata Nano, he could figure out looking at the time of the day as well as the previous few interviews that all he wanted was a structured brain-storming output on strategic cost management. So, I did not spend any time on asking clarifications/start-up questions and got down to business. As there wasn’t any readymade framework/structure for this, I imagined myself a part of the Nano team and thought through the sequence in which the material design and procurement process would unfold (of course, again, my experiences at work came in very handy). After a minute of thought, I started off by saying that this was a huge cut- down on costs (by almost 75%) thus process improvements won’t suffice and that it called for radical changes in the design and sourcing
processes. I then recommended that we should first identify the various steps that are involved in the material procurement process and see how we can cut costs in each one of them. The sequence I gave was as
follows: Technical Specifications of the car and individual parts and sub- assemblies > Preparing the Bill of Materials (BOM) > Identification and Selection of Vendors > Negotiations > Logistics- Freight, Duties, Insurance, Taxes etc.
I asked interviewer for his approval which he promptly gave. Then I brain- stormed various ways of cutting costs as each step. Car & Parts Specifications: Car to adhere to the bare minimum specifications that are needed to be adhered to by Indian Rules n Regulations (E.g. no need to Euro N+1 of Euro N compliance required in India) but without compromise on the safety of the passenger which is very important. Technical Specifications of the parts and sub-assemblies to the at Minimum Technical Standard (MTS) i.e. the specs need to be just right to meet the requirements. Bill of Materials (BOM): Talked about how big companies being risk averse always order and add extra quantity of material in everything. E.g. if 90 kgs steel is required, they would order 100 kgs and end up putting 95 kgs. So optimal safety margins need to defined and be adhered to.
Identification and Selection of Vendors: Said for experience that big companies chose their trusted and loyal vendors, and are inclined to have single vendors/point of contact for a plethora of related/unrelated materials. This way, the vendors make unnecessary money. Thus, to manufacture the lowest car in the world, we need to rationally evaluate vendors outside our ‘Zone of Comfort’ and their scope of supplies. Talked for Chinese manufacturers that give both cost and quality advantage. Gave examples of some proposals of Chinese manufacturers that I had evaluated at work.
Negotiations: Then, negotiate hard. Tata can use their buyer power (multiple businesses and product lines) to fleece suppliers but showing them possible opportunities in near future.
Logistics- Freight, Clearance etc.: This was a pure brainstorming session with ideas like bulk shipments through sea (no part shipments, air freights etc.). Centralized insurance and clearance agents. Managing road taxes etc.
Finally, something which is typically talked of in manufacturing: INNOVATION. Although setting Indica as an anchor and working backwards is a possible way, big companies like Tata Motors which have presence in the foreign markets (talked of JLR) and access to the modern technology, must mobilize their R&D department to come up with revolutionary car design. Some cutting-edge innovation like a new cost effective fuel injection system etc.
Whoa…I spoke for 20 minutes continuously non-stop. Did not find the need to. Interviewer was constantly smiling and acknowledging.
Then straight away came the second case on IT. Now that’s his area of expertise and he wanted to check if I could talk about an industry I had no prior exposure to. I came to know later that this case was in some past year’s case-book and he had written a paper on that. Anyways, I had missed both
Again I gave the initial questions a pass and asked for a minute to think. Exhausted after so many cases, I was not able to recollect any jazzy structure and thus stuck to the basics. I proposed looking at 2 types of factors/aspects which need to looked at by the IT giants of the country:
(1) Internal Factors (2) External Factors
Told him that I am a firm believer that any individual/organization should first have an internal introspection and then start looking at the world outside. Thus would recommend starting off with the Internal Factors. He smiled and said go-ahead. Internal factors meant how the company needs to improve and uplift it-self internally. Said the biggest assets for IT firms were its people and it boiled down to (a) Productivity (b) Innovation. (a) Productivity: Here, I used Productivity = f(Efficiency, Effectiveness) .
Explained the difference between the two and gave some ideas on how IT industries could do that. We could see Microsoft from one of the windows so pointed out and shared some experiences I had while I was visiting an old friend there. (b) Innovation: This is always a safe point to say. No one will challenge Innovation as an improvement measure . Talked a bit about Google
and how it fostered a culture of innovation. This again translated to sound people practices. (2) External Factors: Here I used the 3 Us framework in disguise- Users, Uses, Usage. Users: Talked about IT firms expanding their user base in India and un-explored markets abroad. Once, once you get an organization on-board, need to penetrate to all departments. Uses: Used some SAIT funds to discuss codability and measurability. How certain key process where still handled by companies internally (gave example
from work) as they were highly strategic in nature. Here, IT firms could built enhance their credibility and build stronger partnerships with the clients. Usage: Discussed growth through service provisions like AMCs etc. And then of course, Mergers and Acquisition abroad. Talk of more and more Indian firm’s expanding outside India through this medium and how biggies like Infosys, TCS etc. could continue this trend. This was followed by PI (explained above). Asked him a couple of questions on increasing role of consultants in assisting implementation and talked about the trend at McKinsey.
By this time, I was a robot. This was the best interview of the day for me.
Tips: If you can’t immediately think of established structures, just think-through the logical sequence of events. If you were there in that situation then how would things unfold stepwise? Then within each step, mini- structures/frameworks would readily fit. Again, give examples from work- ex and life beyond work. If you have seen something happen, it has to be true. Also, industry awareness is important to some extent. Reading a Financial Daily for 2 months before the interviews if enough.
Skills:
College Name: Indian School Of Business (ISB)
Experience: PI Questions came after the case. It started with interviewer asking about my prior work experience. All subsequent questions emanated from the first question which was: “Of all your achievements, which one do you think is the most important to you”. This was a classic case of being able to draw the interviewer to where you want to go. I talked about a very tough implementation project that I did at ITC Factory in Munger, Bihar. I said for me an achievement is about 2 things: (1) The Context in which I
achieved it (2) What it meant to me at that stage. In the context part, I talked about managing an un-skilled workforce.
Then he asked me how do you manage such a work force? I said by established an internal connect with them. He asked how do you do that? Went into a couple of instances which made me establish such connections. Although he had asked me to talk about just 1 instance, but seeing that he was impressed, I requested him if I could talk of another different type of incident which is also very close to my heart. He allowed. I talked about selling a extravagant project to the company chairman. It was
about high-end world class patented Audio-Visual systems. interviewer too seemed to have some knowledge about those equipments and thus we had an interesting conversation. The idea was, I could not only show my Project Implementation Abilities
but also talk about Planning and Inter-personal skills.
The case was about a canned juice manufacturing company. Recently they have diversified into different types/more variety of juices. Their profitability has gone down in comparison to their competitors. Need to analyze, identify root causes and advice solutions to the client. I asked a few ‘Start-Up’ question These are standard questions which you would ask for most of the cases. Some of them were: How big is the client? Has been in the business for how long and how and when has their business strategy changed. Who are the major competitors? What are the various revenue streams (different type of juices et al)? He gave
me some info but asked to assume one standard fruit juice for the analysis. Now I approached in the classical Profitability Case. Profit = Revenue – Cost. Problem can be in either of the two factors i.e. Revenue or Cost. I asked him if he wanted to delve into Revenue or Cost first. He advised to go into the cost aspect (we never visited the revenue aspect). Then he asked me about what are the various cost heads in such a business. This was the key!!! Process Value Chain rules I drew the entire value
chain from Agri-sourcing of fruits to In-Bound Logistics to Warehousing to Processing/Manufacturing to Out-Bound Logistics to Retailer to Customer. Started from the Left Side i.e. Sourcing. He asked me what could be reasons for lower profits. This was more of a brainstorming session. Coming from ITC (of e-choupal fame) background, I could talk the possibility of competitors being able to backward integrate and establish a symbiotic relationship with the farmers which allows them to remove the middle-men and thus get cheaper and good quality fruits, whereas our client has not done that. Then came to In-Bound logistics. I
said that juicy fruits being mostly hygroscopic are prone to damage in transit. Talked about the quality of infrastructure en-route to their plants and quality of logistics partner. Then came the crux: Processing/Manufacturing. At first it was qualitative.
I said the client might have a very high Cost/Unit because of excess/high quality infrastructure. Somehow this turned out to be the case. I realized there has been loads of ‘strategy’ based talking and there bound to be some nos. I asked him and he gave me whole lot of nos. about their manufacturing costs as well as the manufacturing costs of competitors. There was Maths involved here as he gave costs and throughputs of different plants of client as well as competition. Had to find out the average cost per unit of juice manufactured by client vs competition. Of course client’s cost of manufacturing was way higher. Talked about some ways as to how can this be brought down. Talked about economies of scale as some of the assets were under-utilized. This would involve launching other related products as well or expanding markets. There were a few more points discussed but this was merely a closure.
Asked him a couple of questions on his area of expertise and how markets were shaping this year.
I believe that your work-experience (which is a huge factor in your being short-listed) must be reflected in the way you approach cases. Sometime we lose sight of that in following standard structures/frameworks etc. At each stage, I could use my FMCG and Manufacturing experience to come up possible reasons. So, your experiences must show in case solving as well and I believe I did that well. One very interesting thing, right at the start which I think worked well for me. When I entered the room, I generally talked about the view being great from the window. Nal generally asked whose room was it. I had not noticed the name-plate while entering which anyways was covered with a McKinsey signage. Looking at the books and brochures in the room, I
made a guess giving the reason of the guess. It was Bang On!!!
Tips: Do not lose sight of Who you are and What have you achieved till date.This should reflect in your interview. Also, be ready to delve into nos. Interviewer also wants to test your analytic ability with nos. as they back/justify your claims, ideas and suggestions. So ask him if he has nos. when he says “Cost is High” or “Profits are Low” etc.
Round: Case Study Interview
Experience: Just imagine. It does not get bigger than him. The senior most guy in the panel who is rumored to take the final call on each and every candidate. I was to interview with him in my Round-1. Thought this was the do or die situation. Questions started coming right from my CV. We talked about taking up very good projects additional to normal course curriculum, participation in sports, organizing ILS and some other personal focus areas for the year. Then he asked which one of the 3 academic experiences: School,
Undergrad, ISB was most enriching. I split it into 2: Academic and Over- all. Academic was School and Over-all was Undergrad for me. He asked me the reason. Came from the CV plus how it was important for personality development and so on… Then he asked about my work-experience. Talked about CAPEX for a while. What did I do as Capex Manager etc.
Started off with the standard warm-up questions but somehow warm-up questions and interviewer don’t go too well. I asked him about the background of the company/competition/industry. For each question I was quizzed on why did I think that question was
relevant and how will it help me achieve the final objective i.e. valuation. Some useful information which I could generate was that the ‘patent’ was for cotton farming and would increase the yield of cotton growth. Realizing that it was a valuation case, I proposed following the a combination of 3 approaches -(1) Value Based Costing (2) Competition Based Costing (3) Cost-Up; to come up with a band of prices and then zero-in on the final price based on other factors. He agreed. Started with Value i.e. Willingness to Pay on the part of the customer. The customers would of course be cotton formers. Then he asked what is the value of the patent to them? I told him about it increasing the yield and asked if he could provide some nos. on the same. He said it increases the yield per sq. ft by a factor of 50%. Believing that it would again be a complicated nos. case, I took some time and came up with a complicated structure to calculate the monetary value of this increase in yield. It involved numerous factors such as average land-holing, no. of cotton farmers, current yield, cotton prices in the market etc. etc. But rest-assured interviewer cases would rarely involve complicated calculations. He said he was looking for something very simple and asked me to think about it.
Now was the moment of surprise. While I was thinking, he asked me to pause. He said “Oh you have worked in Capex right? How would you reduce Capex Cost in a Power Plant?” I was really surprised. I started off by giving him a ‘structure’ (yeah right!!!) which we need to put in place to identify the scope of reduction in Capex. I came up with various stages involved in setting up and commissioning a power plant which would be:
Engineering Design > Construction of Infrastructure > Procurement of equipments > Electricity Generation > Electricity Distribution & Transmission
Told him we need to look into Capex requirement at each of stage and started off with Engineering Design. Just I as started, he asked me to go back to the Patent Case (strange!!!!)
He wanted a simplified model to calculate the value. After some discussion, we have me the annual turnover of cotton in India and the average price per ton. From this I calculate the value of the higher yield that all Indian farmers could get.
He asked apart from increasing revenue, how else the patent could benefit the farmers. Now with revenue there has to be cost!!! I said the new technology could lead to reduction in costs. Was asked to brainstorm on the costs involved. I told land, water for irrigation etc. Yes the patent reduced irrigation requirements. So I talked about reducing water consumption, associated energy costs as well as the psychological costs and risks associated with reliance on monsoons which could now be mitigated. He asked what else? Very happily I told him that now lesser seeds may be required. He said “The patent is a variety of seeds only”. I realized I had forgotten to ask him what does the ‘patent’ entail….in one of the professor’s language, “is it a bird or a plane”. Should have asked it upfront.
Anyways recovered. Had already found out of the increase in revenue (was asked to neglect decrease in costs) . Told him this would be the maximum willingness to pay and thus the upper end of the price band. He agreed. Asked him the cost of Research and Development. He asked why? Told him this would be the lower end of the price band unless the focus was not profitability but social upliftment. He said the focus was completely profitability and gave me a Net Present Value (assume N). Could not understand it immediately but realized that it is Revenue net the costs. Thus, the price band for the patent (in NPV terms) would be between Rs. 0 to N. He agreed and asked me to zero down on a value. Told him we need to look at similar launches in the past to capture some trend (and therefore arrive at a value in the middle) but he cut me short and said that no need to look at past records and
you would price it at less than N as we need to incentive the farmers to overcome their switching costs by passing on some benefit to them. Now this is what I eventually wanted to say but could not.
Firstly it seemed that Nothing went right. I wasn’t confident interviewing with him. Missed basic pointers and took time to identify the ‘simple’ model he was looking for. And of course couldn’t conclude well. But, later I was told, what went right was the CAPEX piece He wanted to test how good I was with my basics while I was caught up doing something else. Can’t expect this from anyone but him. The framework was bang on!!!
Got a bit psyched. Could not structure the Patent Case well and it was more of bouncing off ideas. But was later told this is what happens with everyone when they interview with him
Tips: Can’t emphasize more the need to be thorough with your work-ex and reflect your experience in the case. And if can, be confident no matter whosoever is interviewing you. Please remember, you know stuff much better than the interviewer. You have slogged your back while working. Who else would know about it better?
Round: Case Study Interview
Experience: I was told that he was very keen to meet me because of my Operations background and was especially interested in my CAPEX experience. I was told that he wanted to know more about what I had done during that stint. So I went in with the frame of mind that I have to maximize on that aspect of my profile. As expected, he asked me thread bare on what all I did in that stint. He did try to intimidate me by passing a few sarcastic remarks but I seemed to enjoy it and gave him appropriate responses. Then he asked a very interesting “What do I expect to hear if I were to go out and ask people randomly what they thought about you?” Now
McKinsey allows you to be innovative, frank and candid in such questions. But these need to be backed by some logic. Told him that different people are entitle to have different opinions about a person and how my different types of interactions i.e. in class, in events, in sports would result in varied responses. Also, talked about the situational aspect of it being 1st Day of placements and how that could influence the responses. Then came up with a few candid ones. You can call me to
find those out
Was told this is a short case and we need to wrap up the case fast. Without asking too many ‘Start-Up’ questions, came to the 3 dimensional approach of (1) Value to Customer (Willingness to Pay) (2) Competition (3) Cost-up. Started with Value. Was asked to brainstorm on how could this service be valuable to the customers? Talked about the qualitative aspects of Mumbai traffic having various tangible and in-tangible costs. Tangible benefits could be saving of time, fuel and fare. Intangible benefits could be alleviation of psychological costs like being stuck in traffic and getting to spend less valuable time at work and office. But he said that fare is something we need to find outThen moved to the 2nd aspect of competition. Asked him what were the other modes of transport available to the public? He said two alternatives existed- Road (Taxi) and Rail (Train). Asked him information on Time and Cost. Don’t remember the exact nos. so will use indicative figures. By Taxi you took 45 minutes and incurred costs (all inclusive- tangible + intangible) of Rs. 250. By train you took 30 minutes and incurred costs of Rs. 50. Now asked him the time supposed to be taken by Hovercraft and how many of them were there. He said that a hovercraft would take 20 minutes to cover the distance. The company was planning to start off with just 1 hovercraft. Asked him it’s capacity and he gave a figure of 100 people. In a flash of rushing ideas, I just said that then there would be a capacity constraint or atleast the hovercraft would always be full as the no. of travelers would far exceed 100 in a busy place like Mumbai. Although at that stage I didn’t know how this was important in the context of the case but he liked it Ok, coming back. Hovercraft saves 25 minutes over Taxi and 10 minutes
over Train. So though would try and valuate in monetary terms this saving of 25 minutes and 10 minutes. But point to note is that cost of Train is much lower than cost of Taxi. So, value based approach if applied on both the modes would result in two different nos. poles apart. He quizzed me how to proceed and after some discussion, I concluded that it made no business sense for the Hovercraft company to compete with the Train and thus focus on competing with the Taxi only. Plus, with only 100 seats, there would be no issue of in-sufficient traffic. Now this is where the earlier remark on capacity made sense At this stage he asked me to synthesize by giving an elevator pitch to the client CEO, asked me to fit it in 1 minute and started looking at his watch saying I was being evaluated for brevity. To wrap up, knowing that he Head the Ops practice, I asked him a question on benchmarking in operations and whether Indian firms are at a stage where they can be set as international benchmarks. Surprisingly,
he asked me why I wanted to know about it. Now this was strange as I had never ever heard of an interviewer asking the interviewee a counter question on the closing question. I told him how we had to benchmark many of our expansion/ up gradation projects with Japanese firms and wanted a view from someone who has been exposed to such facilities across the world. He was satisfied and then answered the question.
Discussion on Work-ex. Taking the sarcastic remarks in the right way and not getting intimidated. Again reflecting the learning from the work- experience in the case.
The synthesis could have been better. His staring at the watch for an accurate 1 min pitch intimidated me a bit. My bad. Otherwise nothing much was wrong here.
Tips: Again, work-ex thoroughness is imperative. Think through carefully the closing questions that the interviewer offers to answer at the end of the interview. The questions need to make sense in the backdrop of your profile, experiences and those of the interviewer.
Round: Case Study Interview
Experience: PI came after a couple of cases. This PI for this interview too was Work- Ex centric. Noshir asked me about the two most important leadership instances in me work life. Again my idea here was to use these 2 instances to reflect upon 2 different sides of my profile. First example was of course on leading one very tough project in a logistically challenging location. The other was captaining my ex-company’s cricket team which comprised of my bosses and super-bosses, and the leadership tools that you need to put into use in such situations.
This 11th interview of the day and for sure the final/most critical interview for McKinsey. When I was given the first case on Tata Nano, he could figure out looking at the time of the day as well as the previous few interviews that all he wanted was a structured brain-storming output on strategic cost management. So, I did not spend any time on asking clarifications/start-up questions and got down to business. As there wasn’t any readymade framework/structure for this, I imagined myself a part of the Nano team and thought through the sequence in which the material design and procurement process would unfold (of course, again, my experiences at work came in very handy). After a minute of thought, I started off by saying that this was a huge cut- down on costs (by almost 75%) thus process improvements won’t suffice and that it called for radical changes in the design and sourcing
processes. I then recommended that we should first identify the various steps that are involved in the material procurement process and see how we can cut costs in each one of them. The sequence I gave was as
follows: Technical Specifications of the car and individual parts and sub- assemblies > Preparing the Bill of Materials (BOM) > Identification and Selection of Vendors > Negotiations > Logistics- Freight, Duties, Insurance, Taxes etc.
I asked interviewer for his approval which he promptly gave. Then I brain- stormed various ways of cutting costs as each step. Car & Parts Specifications: Car to adhere to the bare minimum specifications that are needed to be adhered to by Indian Rules n Regulations (E.g. no need to Euro N+1 of Euro N compliance required in India) but without compromise on the safety of the passenger which is very important. Technical Specifications of the parts and sub-assemblies to the at Minimum Technical Standard (MTS) i.e. the specs need to be just right to meet the requirements. Bill of Materials (BOM): Talked about how big companies being risk averse always order and add extra quantity of material in everything. E.g. if 90 kgs steel is required, they would order 100 kgs and end up putting 95 kgs. So optimal safety margins need to defined and be adhered to.
Identification and Selection of Vendors: Said for experience that big companies chose their trusted and loyal vendors, and are inclined to have single vendors/point of contact for a plethora of related/unrelated materials. This way, the vendors make unnecessary money. Thus, to manufacture the lowest car in the world, we need to rationally evaluate vendors outside our ‘Zone of Comfort’ and their scope of supplies. Talked for Chinese manufacturers that give both cost and quality advantage. Gave examples of some proposals of Chinese manufacturers that I had evaluated at work.
Negotiations: Then, negotiate hard. Tata can use their buyer power (multiple businesses and product lines) to fleece suppliers but showing them possible opportunities in near future.
Logistics- Freight, Clearance etc.: This was a pure brainstorming session with ideas like bulk shipments through sea (no part shipments, air freights etc.). Centralized insurance and clearance agents. Managing road taxes etc.
Finally, something which is typically talked of in manufacturing: INNOVATION. Although setting Indica as an anchor and working backwards is a possible way, big companies like Tata Motors which have presence in the foreign markets (talked of JLR) and access to the modern technology, must mobilize their R&D department to come up with revolutionary car design. Some cutting-edge innovation like a new cost effective fuel injection system etc.
Whoa…I spoke for 20 minutes continuously non-stop. Did not find the need to. Interviewer was constantly smiling and acknowledging.
Then straight away came the second case on IT. Now that’s his area of expertise and he wanted to check if I could talk about an industry I had no prior exposure to. I came to know later that this case was in some past year’s case-book and he had written a paper on that. Anyways, I had missed both
Again I gave the initial questions a pass and asked for a minute to think. Exhausted after so many cases, I was not able to recollect any jazzy structure and thus stuck to the basics. I proposed looking at 2 types of factors/aspects which need to looked at by the IT giants of the country:
(1) Internal Factors (2) External Factors
Told him that I am a firm believer that any individual/organization should first have an internal introspection and then start looking at the world outside. Thus would recommend starting off with the Internal Factors. He smiled and said go-ahead. Internal factors meant how the company needs to improve and uplift it-self internally. Said the biggest assets for IT firms were its people and it boiled down to (a) Productivity (b) Innovation. (a) Productivity: Here, I used Productivity = f(Efficiency, Effectiveness) .
Explained the difference between the two and gave some ideas on how IT industries could do that. We could see Microsoft from one of the windows so pointed out and shared some experiences I had while I was visiting an old friend there. (b) Innovation: This is always a safe point to say. No one will challenge Innovation as an improvement measure . Talked a bit about Google
and how it fostered a culture of innovation. This again translated to sound people practices. (2) External Factors: Here I used the 3 Us framework in disguise- Users, Uses, Usage. Users: Talked about IT firms expanding their user base in India and un-explored markets abroad. Once, once you get an organization on-board, need to penetrate to all departments. Uses: Used some SAIT funds to discuss codability and measurability. How certain key process where still handled by companies internally (gave example
from work) as they were highly strategic in nature. Here, IT firms could built enhance their credibility and build stronger partnerships with the clients. Usage: Discussed growth through service provisions like AMCs etc. And then of course, Mergers and Acquisition abroad. Talk of more and more Indian firm’s expanding outside India through this medium and how biggies like Infosys, TCS etc. could continue this trend. This was followed by PI (explained above). Asked him a couple of questions on increasing role of consultants in assisting implementation and talked about the trend at McKinsey.
By this time, I was a robot. This was the best interview of the day for me.
Tips: If you can’t immediately think of established structures, just think-through the logical sequence of events. If you were there in that situation then how would things unfold stepwise? Then within each step, mini- structures/frameworks would readily fit. Again, give examples from work- ex and life beyond work. If you have seen something happen, it has to be true. Also, industry awareness is important to some extent. Reading a Financial Daily for 2 months before the interviews if enough.
Skills:
College Name: Indian School Of Business (ISB)
4 Interview Rounds
Interview Preparation Tips
Round: Case Study Interview
Experience: Interviewer was into sports himself hence my interest in running became our topic of conversation for several minutes.
Identified details about the bank – which region, products etc. Next identified the competition and the products they offered. Grouped products as per the total volume of transactions. Was able to isolate bad performance to a single product - forex
derivatives. Then tried to understand how banks make money from forex derivates and by benchmarking with competition was able to ascertain why we aren’t selling. At this time we realized we had already spent about 35min on the PI +Case – so was asked to synthesize the case.
What helped me was that I was able to scope the problem well and isolate the problem to a single product. It was never an interview, more so a conversation. Honestly speaking, for atleast the first 10min of the case I had little idea on where it was going but I tried to employ a MECE structure and spent considerable time on being absolutely clear on the problem.
Finally, even though I had not touched upon the recommendations in the case analysis, I was able to give 2 recommendations as part of my synthesis. This was something which interviewer actually liked.
My lack of practical knowledge about the banking sector was a disadvantage.
Tips: PI is important! Read and be comfortable on different sectors. Also don’t lose you cool even if you think the case is going around in circles.
Round: personal interview
Experience: Walk me through your resume.
Questions on my academic performance at School, Engineering College
and ISB
Strengths
If you had to relive ISB again whom would you want to be
Weaknesses – here was really grilled as he continually pushed back on
each of my prepared answers until I finally cracked
Lots of questions on my work experience.
Why do you want to move from EDA to consulting
Do you think you will do well in a consulting company
Why Mckinsey and how will you make your decision between firms
Tips: Practice your PI!! It is as important as your cases
Round: Case Study Interview
Experience: The interview started on dramatic note as I came about 15min late. Was asked the reason for coming late and promptly responded with the truth. Interviewer was a little shocked but finally told me that he appreciated my honesty – “integrity was as important as intellect in consulting”
Thankfully had read up on this.
• Started out through the first principles – supply of total seats and the total demand.
• Quickly established the various cost heads – fuel, leasing planes, facilities and staff
It really was a conversation and soon realized that Vivek didn’t really want me to solve it like a case but just discuss. So we started on the analysis phase where we started discussing what is that Air India can do. Identified the places where Air India loses more money compared to competition (both India and foreign). Was able to use some points from Southwest and Singapore airlines
and did a great job in identifying the problems with hub and spoke model of operation – price competition on arterial routes and operational efficiency.
Tips: Practicing cases is important but please don’t neglect your PI and general reading. An intelligent conversation backed by well researched data can really help.
Skills:
College Name: Indian School Of Business (ISB)
Experience: Interviewer was into sports himself hence my interest in running became our topic of conversation for several minutes.
Identified details about the bank – which region, products etc. Next identified the competition and the products they offered. Grouped products as per the total volume of transactions. Was able to isolate bad performance to a single product - forex
derivatives. Then tried to understand how banks make money from forex derivates and by benchmarking with competition was able to ascertain why we aren’t selling. At this time we realized we had already spent about 35min on the PI +Case – so was asked to synthesize the case.
What helped me was that I was able to scope the problem well and isolate the problem to a single product. It was never an interview, more so a conversation. Honestly speaking, for atleast the first 10min of the case I had little idea on where it was going but I tried to employ a MECE structure and spent considerable time on being absolutely clear on the problem.
Finally, even though I had not touched upon the recommendations in the case analysis, I was able to give 2 recommendations as part of my synthesis. This was something which interviewer actually liked.
My lack of practical knowledge about the banking sector was a disadvantage.
Tips: PI is important! Read and be comfortable on different sectors. Also don’t lose you cool even if you think the case is going around in circles.
Round: personal interview
Experience: Walk me through your resume.
Questions on my academic performance at School, Engineering College
and ISB
Strengths
If you had to relive ISB again whom would you want to be
Weaknesses – here was really grilled as he continually pushed back on
each of my prepared answers until I finally cracked
Lots of questions on my work experience.
Why do you want to move from EDA to consulting
Do you think you will do well in a consulting company
Why Mckinsey and how will you make your decision between firms
Tips: Practice your PI!! It is as important as your cases
Round: Case Study Interview
Experience: The interview started on dramatic note as I came about 15min late. Was asked the reason for coming late and promptly responded with the truth. Interviewer was a little shocked but finally told me that he appreciated my honesty – “integrity was as important as intellect in consulting”
Thankfully had read up on this.
• Started out through the first principles – supply of total seats and the total demand.
• Quickly established the various cost heads – fuel, leasing planes, facilities and staff
It really was a conversation and soon realized that Vivek didn’t really want me to solve it like a case but just discuss. So we started on the analysis phase where we started discussing what is that Air India can do. Identified the places where Air India loses more money compared to competition (both India and foreign). Was able to use some points from Southwest and Singapore airlines
and did a great job in identifying the problems with hub and spoke model of operation – price competition on arterial routes and operational efficiency.
Tips: Practicing cases is important but please don’t neglect your PI and general reading. An intelligent conversation backed by well researched data can really help.
Skills:
College Name: Indian School Of Business (ISB)
Gautam P Chhugani
posted on 16 Dec 2015
I applied via Referral
1 Interview Round
Interview Questions
- Q1. Personal Interview: examples of leadership experience? Your role in it?
Interview Preparation Tips
Round: Case Study Interview
Experience: Looked at auto-components industry on my resume and said he would give me an auto-comp case.
Case: Client is a leading auto component manufacturer. It wants to increase profits in the next few years and wants to reach a target of $5 bn in revenues. It is currently at $1 bn.
I suggested there are 2 basic ways to do so:
- Increase volume
- Increase value add and thus margins (elaborated below)
Clarifying questions
Me: Asked what was the core capability of the manufacturer and
the kind of products it manufacturers.
The Interviewer (TI): Forging and forged components
Me: Geographic presence?
TI: India and some acquisitions in Europe.
Me: Is it into auto- comp outsourcing business?
TI: Yes
Me: Increase Volume as follows:
I said can we assume is it meeting demand?
Was asked to make assumptions and proceed. Now I moved into a monologue – coz I gathered that’s what he wants
Increase volume:
- So I said if we know it is lagging in demand, we should explore expansions options – add domestic capacity, acquire capacity externally – (also a increase value add option – refer below)
- Enhance product offering (all types of forged components based on core forging capability)
- Increase share of wallet ( Does a single OEM outsource all types of auto-components) ; Have we exploited any potential to cross sell – if he is buying power train (engine) components, should he also buy axle and chasis components from us
- External acquisitions: Dual shore manufacturing – have a low cost mfg base in India and China, acquire plants in Europe and America which has good customer relationships – thus improve customer intimacy by being geographically close to customer and improve share of wallet.
Increase value add:
- Any change in product mix – make more of critical safety components which provide higher margins
- Provide full end to end support – from design of components to testing – make attempts to support the entire life cycle of car platforms – this will also enhance value add and thus margins ( Explore options to acquire or build R&D centers)
- Compare costs in India and China, add capacity in China, if it reduces costs and enhances margins
Tips: Anything on your CV could be turned into a case. Spend lot of time thinking and reading about companies and industries mentioned on your CV. Whats good/bad about industry? How are companies exploring growth options and so on?
Round: Case Study Interview
Experience: Case:Client is an insurance company. They want to know how big is the insurance opportunity in India? Finally, given the size of the opportunity, what would you recommend as the next steps.
Me: Let me ask the usual clarifying questions, is the company into life insurance or non-life? Private company or a public company?
Interviewer: Life insurance, the client is a private company.
Me: To understand how big the opportunity is I would want to estimate the size of the insurance market.
Interviewer: In what denomination you would estimate the market.
Me: $ mm of life insurance premium
Interviewer: Great. So go ahead and do it.
Me: Sir, before I get into the number work, it will be useful to pictorially or graphically understand where does India stand on insurance penetrations relative to the world.
Interviewer: How would you do that? (It seemed he was very open to new ideas
as seen from his body language because he always sounded excited to hear
something new)
Me: You plot all the countries by insurance penetration ratios and see where India is in the stage of evolution in the insurance market
Interviewer: How would you define the penetration ratio?
Me: Insured population by Insurable population
Interviewer: Great. Now lets get to the number work.
Me: I took some time to think at this stage.
Usual method: Indian population, 30% urban, for now lets focus on the urban market, % of people who cannot afford insurance, I suggested if insurance premium exceeds a particular% of your annual income, then its not affordable, such population should be excluded or alternatively people below the poverty line. I suggested we could break down the population by Income class. As we discussed, it stood out that age cannot be a right basis, as people get their children insured and old people can also be insured albeit at a higher premium.
Interviewer: Great, let us assume you have done all that and the total size of
the market comes to $210mm. LIC’s market is 180mm and has 80%
market share. So what would your conclusion be?
Me:(I wasn’t very fluent at this stage …..somehow I got a bit confused at this stage…no particular reason…probably I wasn’t thinking calmly enough…. Later, with some push from him…this is what I concluded…
Me: Ok, so total insured market is then 180mm/ 0.80 which comes to approximately $205mm. Insurable market is $210mm. So penetration ratio is very high close to 95%. This leaves private insurers a market of only $5mm to pursue. So now how many private insurers are there?
Interviewer: 12/13
Me: Fine, then it is evident that private insurers are competing quite hard and each has a very minuscule share of the private market….and the nature of the game is to arrest market share from LIC, which may be very difficult.
Interviewer: We have now run out of time, so what would you suggest to the company?
Me: As of now, the market is very small and competitive for the private insurers. Going forward, the client would have to arrest market share from LIC and would have to do it better than other private players. So the key question client should ask itself?
- Do I have enough distribution capabilities to gain market share from LIC…coz in Insurance distribution pipeline is most critical. (Things like alliances with corporates, third party distributor alliances etc)
- Secondly, Insurance being a capital intensive business, due to solvency ratios, and unexpected insurance claims, do I have the deep pockets to sustain this market till I become profitable? – high shelf life before break even in insurance business
- Finally, Do I have the ability to offer innovative and customized insurance products to attract the customers?
Tips: - Power of good communication skills and engagement….You may not be reaching the answer…but by showing enough enthusiasm and energy about solving the case…..you allow the interviewer to help you a lot.
- Second, I made up for the not so sharp number work in my synthesis and recommendation. I did not restate facts, based on what I concluded and my industry knowledge, I suggested value added insights and recommendations.
- Lastly, knowing a bit about the industry helps you quote the right metrics like insurance penetration ratios, distribution pipeline etc (Doesn’t substitute pure problem solving skills but allows you to sound sensible)
Round: Case Study Interview
Experience: In round 2 i was directly given a case to solve. The case was:
Our client is a Chocolate confectionary manufacturer started in 1980. It did quite well till 1990. Post 1990, it has seen a revenue slowdown and a profitability slowdown. Can you help them figure out why?
Me: I drew the usual profitability tree. Revenue and costs.I took him through volumes ( Market size, market share, production) Price changes, if any? Variances in costs ?
Interviewer: Fine, lets look at the costs
Me: Let me list down the various heads of costs Variable costs: Direct material, labor, variable overheads Fixed costs: SG&A including distribution costs, interest costs, I also highlighted the overlap.
Interviewer: Fine, let me provide you some data. Write it down. Raw material costs (% of revenue) For the client is 25%, for competitors 20% Distribution cost (cents per bar): For the client 0.25c and for the competitor 0.15c. Let us explore the distribution cost first.
Me: How does the client distribute its products?
Interviewer: It has its own distribution infrastructure….the trucks, manpower etc.
Me: So can I say the client does distribution in-house. So do our competitors not do it in-house?
Interviewer: Yes, you are right, the competitors are outsourcing distribution. What do you think is happening here?
Me: Is it that distribution agent is operating at a higher scale because he is sourcing the business from various manufacturers. If yes, then this could be the cause of difference in cost.
Interviewer: That’s right. What else? Give me one more reason for difference distribution cost.
Me: Is it that transporters are making more number of trips, since our batches of production are small or not synchronized?
Interviewer: Fine, give me one more.
Me: On what basis do transporters charge us?
Interviewer: Based on hourly rate.
Me: This leads me to the hypothesis, that they may be spending lot of time waiting, at the factory without doing any productive work.
Interviewer: You are thinking right.....go on
Me: Phew! Is it that turnaround time per truck is too high compared to our competitors.
Interviewer: Why do you think that is happening?
Me: Distances are too far from our customers or our suppliers. We are not located at the optimal distance from either customers or suppliers.
Oliver: Great, now lets talk about the raw material cost.
Me: So what kind of chocolate is this? Like a Mars bar or something?
Interviewer: Perfect.
Me: So let me list down the ingredients ……..Milk, cocoa, and sugar would be the main ingredients
Interviewer: So lets talk about each ingredient separately.
Me: Milk is a commodity…..
Interviewer: Is Milk a commodity? Is it traded?
Me: No, its not traded, so its not a commodity (This was my clue….thankfully I picked it up…..you will see below how it was a useful)
Interviewer: Go on…think specifically about each ingredient
Me: Cocoa and sugar are commodities.....because they are traded.
interviewer: So?
Me: After a pause of thinking......... Have the prices gone up of late? If yes, “ They are not hedging the commodity costs”
Interviewer: Excellent...You are right...either they are not hedging it or not hedging it as much as they should.
Me: yah....may be not even things like long term supply contracts.
Case part II:
Interviewerr: Great fresh page………note down these numbers…..gave me a full profitability statement to make for 2 factories….one in UK and one in France…..with capacity utilization to be calculated, units produced, price, RM costs as % of revenue, Labor based on per hour etc.
Me: I did the numbers in a very traditional school boy like fashion, did not try any quick calculation tricks…..was very transparent and vocal about my calculations …..helped a lot in showing my comfort with numbers
Interviewer: So what is your conclusion?
Me:
UK France
Capacity utilization 54% 39%
Profitability % 46.2% 33%
This shows a correlation between profitability and scale utilization.
Interviewer: So what would you suggest?
Me: Why don’t we integrate the facilities…. I did a ball park calculation to see if capacity in UK would be enough to handle production in both UK and France. However, there could be a downside to shutting plant in France…
Interviewer: So what are the downsides?
Me: Transportation cost, labor retrenchment cost, loss of customer intimacy in France resulting in loss of certain customers…he kept saying what else….i kept giving him more and more reasons
Interviewer: Only one thing you missed out real option value, if the French market picks up again…
Me: Ya right….I agree.
Interviewer: Thanks Gautam. Excellent. I liked your idea of integrating capacity. I am very happy with the way case has turned out.
Tips: - Very closely watch the words of the interviewer so that you pick up the clues……write as clearly as you can on paper……it helps you organize your thoughts clearly.
- Again, enjoy the process…treat it like a learning process…..will help you specially with an interviewer like Oliver (the interviewer)…who keeps pushing for more and more reasons and is never satiated.
Its good to be able to talk about common people, it just improves the conversation….again nothing substitutes for being genuine and enthusiastic in personal interviews.
General Tips: 1) Use the Challenge-Action-Impact framework to prepare answers for teamwork, leadership etc. Prepare beforehand
2) Keep telling yourself…. So what? When you prepare these kind of answers
3) Don’t sound rehearsed for such questions. Pick up
something, you are genuinely proud of….It will show
through.
Skills:
College Name: Indian School Of Business (ISB)
Experience: Looked at auto-components industry on my resume and said he would give me an auto-comp case.
Case: Client is a leading auto component manufacturer. It wants to increase profits in the next few years and wants to reach a target of $5 bn in revenues. It is currently at $1 bn.
I suggested there are 2 basic ways to do so:
- Increase volume
- Increase value add and thus margins (elaborated below)
Clarifying questions
Me: Asked what was the core capability of the manufacturer and
the kind of products it manufacturers.
The Interviewer (TI): Forging and forged components
Me: Geographic presence?
TI: India and some acquisitions in Europe.
Me: Is it into auto- comp outsourcing business?
TI: Yes
Me: Increase Volume as follows:
I said can we assume is it meeting demand?
Was asked to make assumptions and proceed. Now I moved into a monologue – coz I gathered that’s what he wants
Increase volume:
- So I said if we know it is lagging in demand, we should explore expansions options – add domestic capacity, acquire capacity externally – (also a increase value add option – refer below)
- Enhance product offering (all types of forged components based on core forging capability)
- Increase share of wallet ( Does a single OEM outsource all types of auto-components) ; Have we exploited any potential to cross sell – if he is buying power train (engine) components, should he also buy axle and chasis components from us
- External acquisitions: Dual shore manufacturing – have a low cost mfg base in India and China, acquire plants in Europe and America which has good customer relationships – thus improve customer intimacy by being geographically close to customer and improve share of wallet.
Increase value add:
- Any change in product mix – make more of critical safety components which provide higher margins
- Provide full end to end support – from design of components to testing – make attempts to support the entire life cycle of car platforms – this will also enhance value add and thus margins ( Explore options to acquire or build R&D centers)
- Compare costs in India and China, add capacity in China, if it reduces costs and enhances margins
Tips: Anything on your CV could be turned into a case. Spend lot of time thinking and reading about companies and industries mentioned on your CV. Whats good/bad about industry? How are companies exploring growth options and so on?
Round: Case Study Interview
Experience: Case:Client is an insurance company. They want to know how big is the insurance opportunity in India? Finally, given the size of the opportunity, what would you recommend as the next steps.
Me: Let me ask the usual clarifying questions, is the company into life insurance or non-life? Private company or a public company?
Interviewer: Life insurance, the client is a private company.
Me: To understand how big the opportunity is I would want to estimate the size of the insurance market.
Interviewer: In what denomination you would estimate the market.
Me: $ mm of life insurance premium
Interviewer: Great. So go ahead and do it.
Me: Sir, before I get into the number work, it will be useful to pictorially or graphically understand where does India stand on insurance penetrations relative to the world.
Interviewer: How would you do that? (It seemed he was very open to new ideas
as seen from his body language because he always sounded excited to hear
something new)
Me: You plot all the countries by insurance penetration ratios and see where India is in the stage of evolution in the insurance market
Interviewer: How would you define the penetration ratio?
Me: Insured population by Insurable population
Interviewer: Great. Now lets get to the number work.
Me: I took some time to think at this stage.
Usual method: Indian population, 30% urban, for now lets focus on the urban market, % of people who cannot afford insurance, I suggested if insurance premium exceeds a particular% of your annual income, then its not affordable, such population should be excluded or alternatively people below the poverty line. I suggested we could break down the population by Income class. As we discussed, it stood out that age cannot be a right basis, as people get their children insured and old people can also be insured albeit at a higher premium.
Interviewer: Great, let us assume you have done all that and the total size of
the market comes to $210mm. LIC’s market is 180mm and has 80%
market share. So what would your conclusion be?
Me:(I wasn’t very fluent at this stage …..somehow I got a bit confused at this stage…no particular reason…probably I wasn’t thinking calmly enough…. Later, with some push from him…this is what I concluded…
Me: Ok, so total insured market is then 180mm/ 0.80 which comes to approximately $205mm. Insurable market is $210mm. So penetration ratio is very high close to 95%. This leaves private insurers a market of only $5mm to pursue. So now how many private insurers are there?
Interviewer: 12/13
Me: Fine, then it is evident that private insurers are competing quite hard and each has a very minuscule share of the private market….and the nature of the game is to arrest market share from LIC, which may be very difficult.
Interviewer: We have now run out of time, so what would you suggest to the company?
Me: As of now, the market is very small and competitive for the private insurers. Going forward, the client would have to arrest market share from LIC and would have to do it better than other private players. So the key question client should ask itself?
- Do I have enough distribution capabilities to gain market share from LIC…coz in Insurance distribution pipeline is most critical. (Things like alliances with corporates, third party distributor alliances etc)
- Secondly, Insurance being a capital intensive business, due to solvency ratios, and unexpected insurance claims, do I have the deep pockets to sustain this market till I become profitable? – high shelf life before break even in insurance business
- Finally, Do I have the ability to offer innovative and customized insurance products to attract the customers?
Tips: - Power of good communication skills and engagement….You may not be reaching the answer…but by showing enough enthusiasm and energy about solving the case…..you allow the interviewer to help you a lot.
- Second, I made up for the not so sharp number work in my synthesis and recommendation. I did not restate facts, based on what I concluded and my industry knowledge, I suggested value added insights and recommendations.
- Lastly, knowing a bit about the industry helps you quote the right metrics like insurance penetration ratios, distribution pipeline etc (Doesn’t substitute pure problem solving skills but allows you to sound sensible)
Round: Case Study Interview
Experience: In round 2 i was directly given a case to solve. The case was:
Our client is a Chocolate confectionary manufacturer started in 1980. It did quite well till 1990. Post 1990, it has seen a revenue slowdown and a profitability slowdown. Can you help them figure out why?
Me: I drew the usual profitability tree. Revenue and costs.I took him through volumes ( Market size, market share, production) Price changes, if any? Variances in costs ?
Interviewer: Fine, lets look at the costs
Me: Let me list down the various heads of costs Variable costs: Direct material, labor, variable overheads Fixed costs: SG&A including distribution costs, interest costs, I also highlighted the overlap.
Interviewer: Fine, let me provide you some data. Write it down. Raw material costs (% of revenue) For the client is 25%, for competitors 20% Distribution cost (cents per bar): For the client 0.25c and for the competitor 0.15c. Let us explore the distribution cost first.
Me: How does the client distribute its products?
Interviewer: It has its own distribution infrastructure….the trucks, manpower etc.
Me: So can I say the client does distribution in-house. So do our competitors not do it in-house?
Interviewer: Yes, you are right, the competitors are outsourcing distribution. What do you think is happening here?
Me: Is it that distribution agent is operating at a higher scale because he is sourcing the business from various manufacturers. If yes, then this could be the cause of difference in cost.
Interviewer: That’s right. What else? Give me one more reason for difference distribution cost.
Me: Is it that transporters are making more number of trips, since our batches of production are small or not synchronized?
Interviewer: Fine, give me one more.
Me: On what basis do transporters charge us?
Interviewer: Based on hourly rate.
Me: This leads me to the hypothesis, that they may be spending lot of time waiting, at the factory without doing any productive work.
Interviewer: You are thinking right.....go on
Me: Phew! Is it that turnaround time per truck is too high compared to our competitors.
Interviewer: Why do you think that is happening?
Me: Distances are too far from our customers or our suppliers. We are not located at the optimal distance from either customers or suppliers.
Oliver: Great, now lets talk about the raw material cost.
Me: So what kind of chocolate is this? Like a Mars bar or something?
Interviewer: Perfect.
Me: So let me list down the ingredients ……..Milk, cocoa, and sugar would be the main ingredients
Interviewer: So lets talk about each ingredient separately.
Me: Milk is a commodity…..
Interviewer: Is Milk a commodity? Is it traded?
Me: No, its not traded, so its not a commodity (This was my clue….thankfully I picked it up…..you will see below how it was a useful)
Interviewer: Go on…think specifically about each ingredient
Me: Cocoa and sugar are commodities.....because they are traded.
interviewer: So?
Me: After a pause of thinking......... Have the prices gone up of late? If yes, “ They are not hedging the commodity costs”
Interviewer: Excellent...You are right...either they are not hedging it or not hedging it as much as they should.
Me: yah....may be not even things like long term supply contracts.
Case part II:
Interviewerr: Great fresh page………note down these numbers…..gave me a full profitability statement to make for 2 factories….one in UK and one in France…..with capacity utilization to be calculated, units produced, price, RM costs as % of revenue, Labor based on per hour etc.
Me: I did the numbers in a very traditional school boy like fashion, did not try any quick calculation tricks…..was very transparent and vocal about my calculations …..helped a lot in showing my comfort with numbers
Interviewer: So what is your conclusion?
Me:
UK France
Capacity utilization 54% 39%
Profitability % 46.2% 33%
This shows a correlation between profitability and scale utilization.
Interviewer: So what would you suggest?
Me: Why don’t we integrate the facilities…. I did a ball park calculation to see if capacity in UK would be enough to handle production in both UK and France. However, there could be a downside to shutting plant in France…
Interviewer: So what are the downsides?
Me: Transportation cost, labor retrenchment cost, loss of customer intimacy in France resulting in loss of certain customers…he kept saying what else….i kept giving him more and more reasons
Interviewer: Only one thing you missed out real option value, if the French market picks up again…
Me: Ya right….I agree.
Interviewer: Thanks Gautam. Excellent. I liked your idea of integrating capacity. I am very happy with the way case has turned out.
Tips: - Very closely watch the words of the interviewer so that you pick up the clues……write as clearly as you can on paper……it helps you organize your thoughts clearly.
- Again, enjoy the process…treat it like a learning process…..will help you specially with an interviewer like Oliver (the interviewer)…who keeps pushing for more and more reasons and is never satiated.
Its good to be able to talk about common people, it just improves the conversation….again nothing substitutes for being genuine and enthusiastic in personal interviews.
General Tips: 1) Use the Challenge-Action-Impact framework to prepare answers for teamwork, leadership etc. Prepare beforehand
2) Keep telling yourself…. So what? When you prepare these kind of answers
3) Don’t sound rehearsed for such questions. Pick up
something, you are genuinely proud of….It will show
through.
Skills:
College Name: Indian School Of Business (ISB)
Sridhar Sankararaman
posted on 16 Dec 2015
I applied via Referral
1 Interview Round
Interview Questions
- Q1. What is your best academic performance? why?
- Q2. What is your worst academic performance? why?
- Q3. What is your work experience?
- Q4. Why MBA and not investment banking?
- Q5. Why ISB?
Interview Preparation Tips
Round: Case Study Interview
Experience: Personal Interview questions revolved around my academic performance and about grades. The case interview started off with the following case:
Client is a no 1 boiler manufacturer in India. He is now witnessing reduce profits. Advise.
I Laid out the structure--- Client (his product lines, pricing, distribution channel), competition (change in competitors, their strategy wrt product lines, distribution), Customers (size, preferences), Industry (regulatory, new technology) and cost dynamics (fixed, variable, etc).Interviewer was happy with the structure and said he wanted hypothesis as to why is he losing profits:
• New competitors have come up with diff technology for boilers –NO
• The market size for boilers has shrunk (due to changes in the industry they have been rendered redundant)
• Price war in the industry – reduced profitability – YES
Then I explored how the competitors are offering a lower price. After delving through each item on cost structure, Supply chain, etc; it appeared that it was because the competitors used a new technology to manufacture boilers --- This tech required LESS raw material (steel) per unit of boiler because the manner in which Steel was being cut (he gave some technical knowledge) -boy….this took some time to get to…in fact interviewer helped out here !!!
Tips: Stay Confident & Cool even if you miss the above fact. Move on
and build on it. Show Energy during the interview. !!
Round: Case Study Interview
Experience: in the second interview of the first round, personal interview was entirely experience based; did not miss any line of CV on work exp (as I had fin work exp)
case: I want to start a crane leasing biz in China….estimate my annual profits for next year
I Assumed: No regulatory issues, no replacement of cranes with better equipment for 1 year
First zeroed in on city, then city space, available free space, plausible for construction next year.
Identified alternative pricing strategies—ie per diem, per contract, on/off season rates (less in rainy,etc)
Lots of numbers given (area—square kms, rates, etc)– he wanted me to calculated to the nearest dollar….
Made a calculation mistake (while using square root for area
estimation)…but keep your cool ..they are looking at approach
He then asked me to convert the final answer ($33,85,263) to the nearest pound sterling (DON’T LOSE your cool…)..I used 1.8 conversion rate to convert it (did not carry a calculator☺)))
At the end I asked few questions on M&A issues in China (I heard up on this after the interview schedule was out)..this helps impress him as he was based in the Corp Fin group in China
Round: Case Study Interview
Experience: In the first interview of the second round personal interview was more of a general feel good talk. Then the case Interview began. the case was:
Airline industry—reduced profitability
I gave the structure, identified the drivers and was beginning to explore each item ---he said that he was happy with structure and gave me another scenario where an airline had 2 options either to fly:
Brazil to US
Brazil-Argentina-US
I explored the pt to pt vs hub and spoke model….we went through the numbers and looked at the opportunity costs to finally chose the right strategy.
I also looked at non-fin aspects like strategy and future growth before choosing the option.
He asked me to list adv and dis adv of both models. I drew a model and explored that for 10 routes, pt to pt needs 45 air crafts (10 C 2) while hub and spoke needs only 10. Also identified positives and negatives in other aspects such as costs, customer perception, time, target segment impact, load factor (utilization rate), pricing, etc
Incidentally the actual opinion he said was similar to my recommendation.
Tips: Be ready for pep talk, good opportunity to create feel good
Round: Case Study Interview
Experience: In the second interview, the personal interview was more of a general talk with questions on why MBA, why ISB etc.
Case: International Courier company-losing market share
Standard structure—
• product mix (packages of all sizes), distribution network pricing,
• competition,
• customer segment (attributes they look for: time, safety of packet and prices; convenience – centers for collection-touch points),
• industry dynamics,
• cost structure (esp fixed), etc
Identified problem as local couriers eating market share due to lower costs
Recommendation:
As Fixed costs are high; increase volume business by:
• Alliances with Low cost couriers (but quality of service is a issue)
• JV s (would help as equity stake)
• Acquisitions (highlighted both positives and negatives)
Reduce costs internally (explore using excess capacity on other airlines instead of using your own airlines for low volumes)
General Tips: Keep your cool during the interview.
Keep smiling and be confident.
Try to not to goof up with calculations.
Skills:
College Name: Indian School Of Business (ISB)
Experience: Personal Interview questions revolved around my academic performance and about grades. The case interview started off with the following case:
Client is a no 1 boiler manufacturer in India. He is now witnessing reduce profits. Advise.
I Laid out the structure--- Client (his product lines, pricing, distribution channel), competition (change in competitors, their strategy wrt product lines, distribution), Customers (size, preferences), Industry (regulatory, new technology) and cost dynamics (fixed, variable, etc).Interviewer was happy with the structure and said he wanted hypothesis as to why is he losing profits:
• New competitors have come up with diff technology for boilers –NO
• The market size for boilers has shrunk (due to changes in the industry they have been rendered redundant)
• Price war in the industry – reduced profitability – YES
Then I explored how the competitors are offering a lower price. After delving through each item on cost structure, Supply chain, etc; it appeared that it was because the competitors used a new technology to manufacture boilers --- This tech required LESS raw material (steel) per unit of boiler because the manner in which Steel was being cut (he gave some technical knowledge) -boy….this took some time to get to…in fact interviewer helped out here !!!
Tips: Stay Confident & Cool even if you miss the above fact. Move on
and build on it. Show Energy during the interview. !!
Round: Case Study Interview
Experience: in the second interview of the first round, personal interview was entirely experience based; did not miss any line of CV on work exp (as I had fin work exp)
case: I want to start a crane leasing biz in China….estimate my annual profits for next year
I Assumed: No regulatory issues, no replacement of cranes with better equipment for 1 year
First zeroed in on city, then city space, available free space, plausible for construction next year.
Identified alternative pricing strategies—ie per diem, per contract, on/off season rates (less in rainy,etc)
Lots of numbers given (area—square kms, rates, etc)– he wanted me to calculated to the nearest dollar….
Made a calculation mistake (while using square root for area
estimation)…but keep your cool ..they are looking at approach
He then asked me to convert the final answer ($33,85,263) to the nearest pound sterling (DON’T LOSE your cool…)..I used 1.8 conversion rate to convert it (did not carry a calculator☺)))
At the end I asked few questions on M&A issues in China (I heard up on this after the interview schedule was out)..this helps impress him as he was based in the Corp Fin group in China
Round: Case Study Interview
Experience: In the first interview of the second round personal interview was more of a general feel good talk. Then the case Interview began. the case was:
Airline industry—reduced profitability
I gave the structure, identified the drivers and was beginning to explore each item ---he said that he was happy with structure and gave me another scenario where an airline had 2 options either to fly:
Brazil to US
Brazil-Argentina-US
I explored the pt to pt vs hub and spoke model….we went through the numbers and looked at the opportunity costs to finally chose the right strategy.
I also looked at non-fin aspects like strategy and future growth before choosing the option.
He asked me to list adv and dis adv of both models. I drew a model and explored that for 10 routes, pt to pt needs 45 air crafts (10 C 2) while hub and spoke needs only 10. Also identified positives and negatives in other aspects such as costs, customer perception, time, target segment impact, load factor (utilization rate), pricing, etc
Incidentally the actual opinion he said was similar to my recommendation.
Tips: Be ready for pep talk, good opportunity to create feel good
Round: Case Study Interview
Experience: In the second interview, the personal interview was more of a general talk with questions on why MBA, why ISB etc.
Case: International Courier company-losing market share
Standard structure—
• product mix (packages of all sizes), distribution network pricing,
• competition,
• customer segment (attributes they look for: time, safety of packet and prices; convenience – centers for collection-touch points),
• industry dynamics,
• cost structure (esp fixed), etc
Identified problem as local couriers eating market share due to lower costs
Recommendation:
As Fixed costs are high; increase volume business by:
• Alliances with Low cost couriers (but quality of service is a issue)
• JV s (would help as equity stake)
• Acquisitions (highlighted both positives and negatives)
Reduce costs internally (explore using excess capacity on other airlines instead of using your own airlines for low volumes)
General Tips: Keep your cool during the interview.
Keep smiling and be confident.
Try to not to goof up with calculations.
Skills:
College Name: Indian School Of Business (ISB)
I applied via Referral
1 Interview Round
Interview Questions
- Q1. Personal Interview: Why consulting and Mckinsey?
- Q2. Examples of leadership experience
- Q3. Challenges faced in the client environment( I was a project manager handling projects at the client site)
- Q4. Why not cricket as a career?
- Q5. What are your key strengths?
Interview Preparation Tips
Round: Case Study Interview
Experience: Case 1: As I had worked in the healthcare industry for the last 2.5 years of career with Infosys. The interviewer made a case on the spot for the software industry and healthcare.
Nandan Nilakeni approaches you for advice on a product that can be created for the US healthcare industry. How do you analyze the situation?
Analysis
Since healthcare industry value chain has many players, structured case as focusing on the healthcare providers. Confirmed with interviewer. Bucketed the IT drivers into market trends, government regulation & operational efficiency.
Market trends
Discussed the broad trends in the US healthcare industry
f. Climbing health care costs
g. Government encouraging customers to take more responsibility for their health care spending
h. Creation of tax deductible Flexible spending accounts
i. Consumers transitioning to customers (earlier customers were the payers employers)
j. Need for more robust means of identifying customers and their medical history to manage chronic diseases
k. More consumer directed health plans being purchased
l. Importance of customer relationship management systems for health care providers (which currently doesn’t exist/ limited versions)
He further quizzed me about the apparent lack of IT systems in US HC providers. Asked me to explore historical reasons
Me:
1) Misaligned incentives for the providers vis-à-vis accrual of benefits from IT usage. Major beneficiaries are insurance companies.
2) Practicing Physicians less likely to make IT investment Government Regulation
Discussed high cost of regulation in the health care industry (1 of total health care spend)
Discussed HIPAA regulations as an example
Interviewer: Will the providers be able to meet the deadlines set by HIP? Talked about the security and portability aspects of HIPAA, Timelines for each phase etc
Me : Compliance will drive some of the major health spending. Ease of enhancement for regulatory compliance will be one of the important aspects of the IT product.
Operational Efficiency:
Me: Accidental deaths from inefficient and error-prone process within hospitals. Operational efficiency to be improved. Importance of IT systems like CPOE, EHR gaining importance. Potential toreduce errors. Standardization of processes within hospitals
increases scope for productization.
Interviewer: To summarize, what are the most important aspects which favor product development as opposed to customized application development in the health care industry ?
Me: Standardization of requirements is one. Regulatory compliance is another.
Asked if I have any questions.
In the second interview I was given another case.
Client is a no 1 boiler manufacturer in India. He is now witnessing
reduce profits. Advise .
Laid out the structure--- Client (his product lines, pricing, distribution channel), competition (change in competitors, their strategy wrt product lines, distribution), Customers (size, preferences), Industry (regulatory, new technology) and cost dynamics (fixed, variable, etc).Interviewer was happy with the structure and said he wanted hypothesis as to why is he losing profits:
• New competitors have come up with diff technology for boilers
–NO
• The market size for boilers has shrunk (due to changes in the
industry they have been rendered redundant)
• Price war in the industry – reduced profitability – YES
Then I explored how the competitors are offering a lower price. After delving through each item on cost structure, Supply chain, etc; it appeared that it was because the competitors used a new technology to manufacture boilers --- This tech required LESS raw material (steel) per unit of boiler because the manner in which Steel was being cut (he gave some technical knowledge) -boy….this took some time to get to…in fact interviewer helped out here !!!
Discussed about the trends in IT off-shoring. Asked him about the next wave of off-shoring from Infrastructure management business and how well prepared the Indian players are to meet this challenge in his opinion ?
General Tips: Stick to a detailed and precise answer while solving for the case.
Skills:
College Name: Indian School Of Business (ISB)
Experience: Case 1: As I had worked in the healthcare industry for the last 2.5 years of career with Infosys. The interviewer made a case on the spot for the software industry and healthcare.
Nandan Nilakeni approaches you for advice on a product that can be created for the US healthcare industry. How do you analyze the situation?
Analysis
Since healthcare industry value chain has many players, structured case as focusing on the healthcare providers. Confirmed with interviewer. Bucketed the IT drivers into market trends, government regulation & operational efficiency.
Market trends
Discussed the broad trends in the US healthcare industry
f. Climbing health care costs
g. Government encouraging customers to take more responsibility for their health care spending
h. Creation of tax deductible Flexible spending accounts
i. Consumers transitioning to customers (earlier customers were the payers employers)
j. Need for more robust means of identifying customers and their medical history to manage chronic diseases
k. More consumer directed health plans being purchased
l. Importance of customer relationship management systems for health care providers (which currently doesn’t exist/ limited versions)
He further quizzed me about the apparent lack of IT systems in US HC providers. Asked me to explore historical reasons
Me:
1) Misaligned incentives for the providers vis-à-vis accrual of benefits from IT usage. Major beneficiaries are insurance companies.
2) Practicing Physicians less likely to make IT investment Government Regulation
Discussed high cost of regulation in the health care industry (1 of total health care spend)
Discussed HIPAA regulations as an example
Interviewer: Will the providers be able to meet the deadlines set by HIP? Talked about the security and portability aspects of HIPAA, Timelines for each phase etc
Me : Compliance will drive some of the major health spending. Ease of enhancement for regulatory compliance will be one of the important aspects of the IT product.
Operational Efficiency:
Me: Accidental deaths from inefficient and error-prone process within hospitals. Operational efficiency to be improved. Importance of IT systems like CPOE, EHR gaining importance. Potential toreduce errors. Standardization of processes within hospitals
increases scope for productization.
Interviewer: To summarize, what are the most important aspects which favor product development as opposed to customized application development in the health care industry ?
Me: Standardization of requirements is one. Regulatory compliance is another.
Asked if I have any questions.
In the second interview I was given another case.
Client is a no 1 boiler manufacturer in India. He is now witnessing
reduce profits. Advise .
Laid out the structure--- Client (his product lines, pricing, distribution channel), competition (change in competitors, their strategy wrt product lines, distribution), Customers (size, preferences), Industry (regulatory, new technology) and cost dynamics (fixed, variable, etc).Interviewer was happy with the structure and said he wanted hypothesis as to why is he losing profits:
• New competitors have come up with diff technology for boilers
–NO
• The market size for boilers has shrunk (due to changes in the
industry they have been rendered redundant)
• Price war in the industry – reduced profitability – YES
Then I explored how the competitors are offering a lower price. After delving through each item on cost structure, Supply chain, etc; it appeared that it was because the competitors used a new technology to manufacture boilers --- This tech required LESS raw material (steel) per unit of boiler because the manner in which Steel was being cut (he gave some technical knowledge) -boy….this took some time to get to…in fact interviewer helped out here !!!
Discussed about the trends in IT off-shoring. Asked him about the next wave of off-shoring from Infrastructure management business and how well prepared the Indian players are to meet this challenge in his opinion ?
General Tips: Stick to a detailed and precise answer while solving for the case.
Skills:
College Name: Indian School Of Business (ISB)
I applied via Referral
1 Interview Round
Interview Questions
- Q1. Personal questions: Why consulting?
- Q2. What are your leadership examples
- Q3. Tell me about yourself
- Q4. Why MBA? Why ISB?
- Q5. How does consulting fit in your goals?
- Q6. Case Question: What is the model on which Inductis (company) works?
- Q7. Personal Interview: Discussion on how BTO practice is similar to/different from 'generalist' practise
- Q8. What is the passion in your life and how are you working towards it?
Interview Preparation Tips
Round: Case Study Interview
Experience: I never realized when my case started; he was asking me the model on which Inductis works, and slowly moved towards what are the challenges for a company like Inductis in expanding. Only when he said “Or let’s say the CEO of JP Morgan, Kevin, or the CEO of Infosys comes to you and says that they wanted to expand their offshoring strength from 250 to 400, but they were not able to scale up.”, did I realize that my case had started! I politely asked him, “Is this a case, or I should be answering just on the fly?”; to which he replied – “Whatever you deem correct. Okay, lets consider it a
case”. I came up with the following issues:
1) They are not getting quality CVs
2) There are too many companies wooing the skilled people we want
3) There are some problems in meeting the expectations of the workers – challenging work , work-life balance and growth opportunities
4) Where do our workers go after leaving us
5) Is there some problem with the HR department
It turned out that the 5 point was one of the major problems.
Then I was given another case – “Mr Murthy is contemplating to expand globally and set up centers in US because India gets only $30 bn out of the total $800 bn offshoring/outsourcing market. What are the pros and cons?”
The most important negative point I identified was that that the cost arbitrage would not be there. Noshir then asked me to focus on advantages, and I came up with the following:
1) Proximity to the client
2) Cultural affinity
3) Better domain knowledge as you are working where the action is taking place
4) Lower telecom costs and hurdles
5) Political benefits – Democrats are totally against moving jobs to Asia, and hence such a move would be politically hailed
Tips: Biggest learning – your case can start anytime without you being explicitly told. This is really true for McK interviewers especially. Also, they don’t always look for structuring – when I was starting to jot down some points for my first case, the interviewer told me not to worry about structure and clarificatory questions and other formalities; he said “I know you would be master in all this, so I just want recommendations and issues which will add value to the client”.
Round: Case Study Interview
Experience: In the second interview I was given a case study. It was conducted by another Interviewer. Your friend lives in Beijing, and is observing the commercial/office buildings being built these days. He is contemplating getting into the business of leasing cranes to constructors. What do you think of this idea?
The rough framework I told him I would follow is:
1) The market opportunity
2) Competition
3) Contacts, especially with suppliers of cranes
4) Investments in this business
5) Risks going forward
After a little discussion on each of these, he told me that this is an estimation case, and I have to estimate the market size of this business in $ terms. There can be several ways to go about it, and I took the following one:
1) An average building is built on a square of side 70m
2) Assume Beijing to be a square of side 20km
3) Out of the total are of 400 sq.km, 50sq.km is used for commercial purposes
4) 80% of this, ie 40 sq. km is the area on which a building is actually build (the rest 20% for roads, lawns, parking lots etc)
5) This gives about 8000 buildings which can be built
6) Assume in the next years, a total 2000 buildings will be build, 400 each in every year
7) A building construction requires 3 cranes in the initial 4 months,
2 cranes in the next 4 months, and 1 crane in the last 4 months, completing in whole 1 year
8) A crane costs $50,000 per month Doing all the calculation should give the total annual market size of approximately $480 million.
Round: Case Study Interview
Experience: In the personal Interview the interview started from a discussion on BTO practice for 20 minutes. The case interview started after a discussion of my short-term/long-term goals, how consulting fits in and why MBA etc.
She gave an actual situation she met in China on one of her projects:
A meat manufacturer in Europe, selling only ham and sausages, has been seeing declining profits for the last 2 years. So what could be the reason behind it?
I did the following analysis step by step:
1) What specific did we do 2 years back? – Nothing was the answer.
2) Have the customer tastes been changing? – No, the market was stable
3) How is the competitive landscape? – 2 competitors, each having 30% mkt share, while we have 40%.
4) Revenue-Cost analysis: It turned out that the volumes of sausages was going down, while it was constant for ham. The reason was that one of the competitors was selling sausages at 99 cents a kg, while we sold at $1/kg; also, we sold ham at $4.2/kg.
The issue then shifted to the question – how was the competitor able to sell sausages at 99 cents a kg? While analyzing the cost structure, it emerged that sausages were being sold at break-even!
Now the question was – if they are zero margins in sausages, then how could lower sausage sales trigger a decline in profits? I asked some more questions about how they were manufactured, and found that the following process is followed: the company buys chunks of meat, makes ham out of them, and the small, leftover pieces of meat are used to make sausages. Hence, when the sales of sausages went down, it was because they were not able to sell the leftover meat at $1/kg they bought the raw meat at.
This rang the bell of ‘cost allocation’; why should sausages me allocated the costs for leftover scrap meat at the same rate as that of good meat used in ham? Well, one reason unearthed. Actually, there was a bigger reason; the indirect labor costs (salaries of CEO, managers etc) were being allocated very irrationally – though a ham was being sold at 4.2 times the price of a sausage and involved more processing and personnel time, both were allocated the same costs! In fact, a sausage was being allocated a total of 60 cents for indirect labor costs, though a ham was being allocated only 80 cents.
I synthesized the case by explaining how cross-subsidization was happening, how this could be because of the shrewdness of the manager of ham operations and the naivety of the manager of sausage operations. It turned out that this was exactly the reason behind all this.
In the second interview, I was not given any case.
Tips: Keep in mind how much time you would have for the case; As we had lost 20-25 minutes discussing BTO, I was well aware that no way would I get much time as this was a 30 min interview. Hence I quickly went through all possible issues, and zeroed in on the relevant one
Prepare your PI well.
General Tips: Structuring of the cases should be impressive.
Keep in mind how much time you would have for the case.
Skills:
College Name: Indian School Of Business (ISB)
Experience: I never realized when my case started; he was asking me the model on which Inductis works, and slowly moved towards what are the challenges for a company like Inductis in expanding. Only when he said “Or let’s say the CEO of JP Morgan, Kevin, or the CEO of Infosys comes to you and says that they wanted to expand their offshoring strength from 250 to 400, but they were not able to scale up.”, did I realize that my case had started! I politely asked him, “Is this a case, or I should be answering just on the fly?”; to which he replied – “Whatever you deem correct. Okay, lets consider it a
case”. I came up with the following issues:
1) They are not getting quality CVs
2) There are too many companies wooing the skilled people we want
3) There are some problems in meeting the expectations of the workers – challenging work , work-life balance and growth opportunities
4) Where do our workers go after leaving us
5) Is there some problem with the HR department
It turned out that the 5 point was one of the major problems.
Then I was given another case – “Mr Murthy is contemplating to expand globally and set up centers in US because India gets only $30 bn out of the total $800 bn offshoring/outsourcing market. What are the pros and cons?”
The most important negative point I identified was that that the cost arbitrage would not be there. Noshir then asked me to focus on advantages, and I came up with the following:
1) Proximity to the client
2) Cultural affinity
3) Better domain knowledge as you are working where the action is taking place
4) Lower telecom costs and hurdles
5) Political benefits – Democrats are totally against moving jobs to Asia, and hence such a move would be politically hailed
Tips: Biggest learning – your case can start anytime without you being explicitly told. This is really true for McK interviewers especially. Also, they don’t always look for structuring – when I was starting to jot down some points for my first case, the interviewer told me not to worry about structure and clarificatory questions and other formalities; he said “I know you would be master in all this, so I just want recommendations and issues which will add value to the client”.
Round: Case Study Interview
Experience: In the second interview I was given a case study. It was conducted by another Interviewer. Your friend lives in Beijing, and is observing the commercial/office buildings being built these days. He is contemplating getting into the business of leasing cranes to constructors. What do you think of this idea?
The rough framework I told him I would follow is:
1) The market opportunity
2) Competition
3) Contacts, especially with suppliers of cranes
4) Investments in this business
5) Risks going forward
After a little discussion on each of these, he told me that this is an estimation case, and I have to estimate the market size of this business in $ terms. There can be several ways to go about it, and I took the following one:
1) An average building is built on a square of side 70m
2) Assume Beijing to be a square of side 20km
3) Out of the total are of 400 sq.km, 50sq.km is used for commercial purposes
4) 80% of this, ie 40 sq. km is the area on which a building is actually build (the rest 20% for roads, lawns, parking lots etc)
5) This gives about 8000 buildings which can be built
6) Assume in the next years, a total 2000 buildings will be build, 400 each in every year
7) A building construction requires 3 cranes in the initial 4 months,
2 cranes in the next 4 months, and 1 crane in the last 4 months, completing in whole 1 year
8) A crane costs $50,000 per month Doing all the calculation should give the total annual market size of approximately $480 million.
Round: Case Study Interview
Experience: In the personal Interview the interview started from a discussion on BTO practice for 20 minutes. The case interview started after a discussion of my short-term/long-term goals, how consulting fits in and why MBA etc.
She gave an actual situation she met in China on one of her projects:
A meat manufacturer in Europe, selling only ham and sausages, has been seeing declining profits for the last 2 years. So what could be the reason behind it?
I did the following analysis step by step:
1) What specific did we do 2 years back? – Nothing was the answer.
2) Have the customer tastes been changing? – No, the market was stable
3) How is the competitive landscape? – 2 competitors, each having 30% mkt share, while we have 40%.
4) Revenue-Cost analysis: It turned out that the volumes of sausages was going down, while it was constant for ham. The reason was that one of the competitors was selling sausages at 99 cents a kg, while we sold at $1/kg; also, we sold ham at $4.2/kg.
The issue then shifted to the question – how was the competitor able to sell sausages at 99 cents a kg? While analyzing the cost structure, it emerged that sausages were being sold at break-even!
Now the question was – if they are zero margins in sausages, then how could lower sausage sales trigger a decline in profits? I asked some more questions about how they were manufactured, and found that the following process is followed: the company buys chunks of meat, makes ham out of them, and the small, leftover pieces of meat are used to make sausages. Hence, when the sales of sausages went down, it was because they were not able to sell the leftover meat at $1/kg they bought the raw meat at.
This rang the bell of ‘cost allocation’; why should sausages me allocated the costs for leftover scrap meat at the same rate as that of good meat used in ham? Well, one reason unearthed. Actually, there was a bigger reason; the indirect labor costs (salaries of CEO, managers etc) were being allocated very irrationally – though a ham was being sold at 4.2 times the price of a sausage and involved more processing and personnel time, both were allocated the same costs! In fact, a sausage was being allocated a total of 60 cents for indirect labor costs, though a ham was being allocated only 80 cents.
I synthesized the case by explaining how cross-subsidization was happening, how this could be because of the shrewdness of the manager of ham operations and the naivety of the manager of sausage operations. It turned out that this was exactly the reason behind all this.
In the second interview, I was not given any case.
Tips: Keep in mind how much time you would have for the case; As we had lost 20-25 minutes discussing BTO, I was well aware that no way would I get much time as this was a 30 min interview. Hence I quickly went through all possible issues, and zeroed in on the relevant one
Prepare your PI well.
General Tips: Structuring of the cases should be impressive.
Keep in mind how much time you would have for the case.
Skills:
College Name: Indian School Of Business (ISB)
1 Interview Round
Interview Questions
- Q1. Personal questions:Examples of leadership experience
- Q2. What are my views on ISB and the way ahead for it
Interview Preparation Tips
Round: Case Study Interview
Experience: In the Personal Interview, I was asked about my leadership experiences. My experience of factory start-up with HLL helped my case. Further I was asked why I could not make it through with McK the previous time (I had interviewed while at IITK in 2002 for analyst post). Here I pointed out to the way I have changed in the last 3 years both while working with HLL and by doing my MBA (focusing on peer learning). I gave an example of the way I currently understand the position of HLL, with specific mention to its annual result (had been announced just 3 days back ); I had done some basic numbers (ratios) and could easily comment on the performance with a mention of the way ahead as it should be for HLL.
I was given two cases by the interviewer for my first round.
For case 1, I was given this: SAP India has not been able to expand its operations as it has not been able to hire the right number of people, so ramp up was not possible, help out its HR dept. I did some checks with simple questions to understand the situation better. Then I drew a funnel (which represents the hiring process), input to which is applicants and output is selected candidates. Understood the drop outs (people eliminated) at various stages. Concluded that the process can not be made less stringent, so the only way out is to increase the input to the funnel.
Looked at input as market share of a product (dependent on 3 factors, Awareness, Availability and Purchase intention, MARKSTRAT funda). Checked if it’s a fair way to look at it. The interviewer was pretty satisfied with it.
Awareness: 2 segments, fresh college grads and IT professionals working in other firms who might like to apply to SAP. Realized that awareness level is low on campuses and the IT Pros of other firms are not being targeted at all.
Remedy: Campus promotion events, tie ups with schools the way Infy et al are having, start a referral programme, start blogs, etc.
Availability: Very poor interface to apply on, extremely low bandwidth of HR dept. takes a month to process applications and by that time the applicants are no longer interested or already have jobs. Measures suggested here.
Purchase Intention: No problem here. The quality of work is great and the brand name of SAP is great.
In the end, synthesized the case.
I believe I was able to structure the case very well and that really helped a lot.
2nd Case: Tata 1 lakh car, need to lower the cost of parts in car to less than 75 K.
Structure made, being from a manufacturing background I tried to leverage on my wok knowledge and presented my analysis:
• Might have to use an alternate MoC (Material of construction), think plastics/composites.
• Tie up with a global vendor like GE to get the MoC
• Have all yr auto ancillary suppliers gear up to the challenge of using the MoC
• Centralized purchasing done by Tata Motors for all ancillary suppliers so as to get economies of scale
• Rationalize the components being used, get rid of useless components used in the car (I missed out this point and was driven towards it)
My energy level created very positive vibes from the very beginning
The structuring of the cases was good.
The way I could point out the change (for the better) that I have undergone since the time I last interviewed with McK.
My leadership examples was pretty strong
In the end I asked him about the Mck NASSCOM report (I had read it cover to cover) and wanted to know his views on Indian top 5 IT cos becoming USD 10 Bn firms.
He was happy with the question and gave his views.
Tips: Personal Questions: Prepare very well. The way I see it, write a 10-12 page essay about yourself which really is a representation of your true self. It should not be swayed by the firm or the kind of job you are interviewing for.
It helps to serve as a key for all personal questions and having it all together ensures that there is no contradiction in any answer. It worked very well in my case.
Round: Case Study Interview
Experience: There were no personal questions in this round and it was pointed out that only 1 case will be administered. I was asked to ask him questions about work/McK. I asked him about his failures at McK.
For case I was presented with this: Client is India’s largest PSU bank (Client name cant be disclosed ☺) Due to recent RBI strictures, cheque can’t be delivered physically to a clearing house, so an alternative scheme is to be drawn up. I some how confused this whole system with RTGS and started blabbering out of that when I was checked by Nigel. (Lesson: Never ever assume anything, if you do, make sure you check it with the interviewer).
There were basically 2 schemes which were drawn up with regards to cheque processing and movement of information/data. They were to be compared, a result had to be arrived at and an optimal one (possibly a third one was to be suggested).
I went about drawing the 2 schemes (what appeared to be child’s play initially was extremely tough). By the end I was thoroughly confused between the schemes as they had so many elements to them. I requested for more time and drew them neatly (that is something not very natural to me) and on different sheets of paper. Then I concluded that we need to do a cost benefit analysis (with the constraint of acceptable service level) and I went on to identify the cost drivers. They included manpower cost, cost of hardware like scanners, bandwidth cost (for electronic flow of images), cost of courier and the constraint of service level. At this stage I was getting lost due to excess information and was asked to stop and synthesize the discussion we had had till that time before proceeding further.
Then we did establish the merits of one network structure over the other and I was then asked to arrive at an even better network. The interviewer left me alone in he room for some time to help me think and I could arrive at an alternate network. Upon discussion it was found that I had not taken care of the service level and my design was not feasible.
Tips: Never crack in a pressure interviewer, if the case is difficult and the interviewer is asking you to speed up and move when you are not really done with an issue, DO take your time.
General Tips: Maintain positive energy from the beginning of the interview.
Focus on the way you structure the cases.
Be as succinct and creative as possible while solving the cases.
Skills:
College Name: Indian School Of Business (ISB)
Experience: In the Personal Interview, I was asked about my leadership experiences. My experience of factory start-up with HLL helped my case. Further I was asked why I could not make it through with McK the previous time (I had interviewed while at IITK in 2002 for analyst post). Here I pointed out to the way I have changed in the last 3 years both while working with HLL and by doing my MBA (focusing on peer learning). I gave an example of the way I currently understand the position of HLL, with specific mention to its annual result (had been announced just 3 days back ); I had done some basic numbers (ratios) and could easily comment on the performance with a mention of the way ahead as it should be for HLL.
I was given two cases by the interviewer for my first round.
For case 1, I was given this: SAP India has not been able to expand its operations as it has not been able to hire the right number of people, so ramp up was not possible, help out its HR dept. I did some checks with simple questions to understand the situation better. Then I drew a funnel (which represents the hiring process), input to which is applicants and output is selected candidates. Understood the drop outs (people eliminated) at various stages. Concluded that the process can not be made less stringent, so the only way out is to increase the input to the funnel.
Looked at input as market share of a product (dependent on 3 factors, Awareness, Availability and Purchase intention, MARKSTRAT funda). Checked if it’s a fair way to look at it. The interviewer was pretty satisfied with it.
Awareness: 2 segments, fresh college grads and IT professionals working in other firms who might like to apply to SAP. Realized that awareness level is low on campuses and the IT Pros of other firms are not being targeted at all.
Remedy: Campus promotion events, tie ups with schools the way Infy et al are having, start a referral programme, start blogs, etc.
Availability: Very poor interface to apply on, extremely low bandwidth of HR dept. takes a month to process applications and by that time the applicants are no longer interested or already have jobs. Measures suggested here.
Purchase Intention: No problem here. The quality of work is great and the brand name of SAP is great.
In the end, synthesized the case.
I believe I was able to structure the case very well and that really helped a lot.
2nd Case: Tata 1 lakh car, need to lower the cost of parts in car to less than 75 K.
Structure made, being from a manufacturing background I tried to leverage on my wok knowledge and presented my analysis:
• Might have to use an alternate MoC (Material of construction), think plastics/composites.
• Tie up with a global vendor like GE to get the MoC
• Have all yr auto ancillary suppliers gear up to the challenge of using the MoC
• Centralized purchasing done by Tata Motors for all ancillary suppliers so as to get economies of scale
• Rationalize the components being used, get rid of useless components used in the car (I missed out this point and was driven towards it)
My energy level created very positive vibes from the very beginning
The structuring of the cases was good.
The way I could point out the change (for the better) that I have undergone since the time I last interviewed with McK.
My leadership examples was pretty strong
In the end I asked him about the Mck NASSCOM report (I had read it cover to cover) and wanted to know his views on Indian top 5 IT cos becoming USD 10 Bn firms.
He was happy with the question and gave his views.
Tips: Personal Questions: Prepare very well. The way I see it, write a 10-12 page essay about yourself which really is a representation of your true self. It should not be swayed by the firm or the kind of job you are interviewing for.
It helps to serve as a key for all personal questions and having it all together ensures that there is no contradiction in any answer. It worked very well in my case.
Round: Case Study Interview
Experience: There were no personal questions in this round and it was pointed out that only 1 case will be administered. I was asked to ask him questions about work/McK. I asked him about his failures at McK.
For case I was presented with this: Client is India’s largest PSU bank (Client name cant be disclosed ☺) Due to recent RBI strictures, cheque can’t be delivered physically to a clearing house, so an alternative scheme is to be drawn up. I some how confused this whole system with RTGS and started blabbering out of that when I was checked by Nigel. (Lesson: Never ever assume anything, if you do, make sure you check it with the interviewer).
There were basically 2 schemes which were drawn up with regards to cheque processing and movement of information/data. They were to be compared, a result had to be arrived at and an optimal one (possibly a third one was to be suggested).
I went about drawing the 2 schemes (what appeared to be child’s play initially was extremely tough). By the end I was thoroughly confused between the schemes as they had so many elements to them. I requested for more time and drew them neatly (that is something not very natural to me) and on different sheets of paper. Then I concluded that we need to do a cost benefit analysis (with the constraint of acceptable service level) and I went on to identify the cost drivers. They included manpower cost, cost of hardware like scanners, bandwidth cost (for electronic flow of images), cost of courier and the constraint of service level. At this stage I was getting lost due to excess information and was asked to stop and synthesize the discussion we had had till that time before proceeding further.
Then we did establish the merits of one network structure over the other and I was then asked to arrive at an even better network. The interviewer left me alone in he room for some time to help me think and I could arrive at an alternate network. Upon discussion it was found that I had not taken care of the service level and my design was not feasible.
Tips: Never crack in a pressure interviewer, if the case is difficult and the interviewer is asking you to speed up and move when you are not really done with an issue, DO take your time.
General Tips: Maintain positive energy from the beginning of the interview.
Focus on the way you structure the cases.
Be as succinct and creative as possible while solving the cases.
Skills:
College Name: Indian School Of Business (ISB)
I applied via Referral
1 Interview Round
Interview Questions
- Q1. What does leadership mean to you?
- Q2. Is Leadership given or taken?
- Q3. Why ISB after LSE?
- Q4. I don’t see leadership on your resume, am I missing something?
- Q5. What would you do differently at ISB if you could start over?
Interview Preparation Tips
Round: Case Study Interview
Experience: Case
Client is a philanthropic foundation with a corpus of $ X million. It wants to invest in India with a view to help curb AIDS spreading (Patient Care was ruled out). Help it decide: HOW + WHERE + HOW MUCH
Facts provided when asked:
- Estimate of population afflicted on a Pan India basis
- Main Source of infection was STD and hence for the purpose of the case I was to concentrate on this alone
- Estimate of segment sizes ( Sex Workers, Wives and Migrant Labor/Clients of Sex Workers) and the percentage afflicted
- Which Indian states is it concentrated in?
- What is the cost of a detection test?
Analysis
Stuck to the structure provided by the question of How, Where and How Much?
It was more of a discussion where I suggested different plans for 2 of the segments (Sex Workers and the Clients, Wives ignored as it was agreed that using protection after marriage was not acceptable by most men in this strata).
Testing in the ‘Sex Workers’ was to be shelved for the first part of the plan as the incremental benefits were small given that they had a very high percentage of affliction.
Suggested that the plan be rolled out 5 states to begin with and in areas having brothels near construction sites (migrant labor) and highways (truck drivers were a major part of the clientele)
How much?
To be tackled by setting milestones that the foundation set to achieve in terms of ‘slowing down spreading of AIDS’ in terms of spread after program introduced vs. spread with natural rate) using some publically available estimates of expenditure involved in such programs.
Tips: Take your time. Don't rush.
Round: Case Study Interview
Experience: Case
Client is a PSU Bank; savings account opening takes 60 mins.
(Entire Chain of Activities was given as an Exhibit with time and sequence involved) Reduce this to 15 mins.
It was a 10 mins case.
Analysis
1. Identify Critical Path
2. See which activities can be moved off/performed simultaneously/ performed by customer (perhaps at home)/performed beforehand (printing of cheque books)/performed by others (outsourced)
3. See which activities can be simplified, e.g. Form filling took 15 mins (It was a 15 page form, so simplify and shorten form)
NA: Why do we need the teller? Why can’t the officer do the work for the teller? (This would mean slashing off 6 mins of the process as the officer would not need to verify again)
Tips: Be honest in all your PI answers, as the inconsistencies are very apparent on the other side of the table even if you have rehearsed
your answers to perfection.
Round: Case Study Interview
Experience: Case
Client is a bank looking to set up a 100 ATM network or operate it on a contract. What would be your advice to the CEO?
Additional facts provided when asked: Real Estate + Machine + IT Network + Utility Costs on a monthly basis when owned and run by the bank as well as the annual management contract fee when outsourced.
Analysis
To study the differences in Costs between ‘Owned and run’ and
‘Outsourced’ (Owned and then leased out to different banks was not an option)
It was just a numbers case after the basic costs were identified, from the costs angle alone ‘Owned and Run’ was a better option.
Interviewer: Other than the compelling numbers, what might be the advantage of ‘owned and run’ over ‘outsourced’
Me: Maintenance and service levels can be controlled more effectively.
Interviewer: For what reasons would you favor outsourcing over owned and run?
Me:
a. Fact that cost estimates are current and these could be revised downwards as the outsourcing vendor acquires scale
b. Not a core function/the usual outsourcing arguments.
Tips: Take your time. Don't rush.
Round: Case Study Interview
Experience: Case
Estimate Gasoline Consumption of Cars in Mumbai in one year.
Estimation involved:
- Population of Mumbai
- Average Income
- Number of Cars ( This was estimated using an ‘affordability ratio’ –-> using the average price of a car, average life of a car and fuel and service expense required, an average operating expenditure p.a. on a vehicle was found. And this operating expenditure would be less than 20% of Household Income, hence assuming a normal distribution of Income, an estimate of number of cars was found)
- Average Distance Traveled per vehicle
- Average Mileage
Skills:
College Name: Indian School Of Business (ISB)
Experience: Case
Client is a philanthropic foundation with a corpus of $ X million. It wants to invest in India with a view to help curb AIDS spreading (Patient Care was ruled out). Help it decide: HOW + WHERE + HOW MUCH
Facts provided when asked:
- Estimate of population afflicted on a Pan India basis
- Main Source of infection was STD and hence for the purpose of the case I was to concentrate on this alone
- Estimate of segment sizes ( Sex Workers, Wives and Migrant Labor/Clients of Sex Workers) and the percentage afflicted
- Which Indian states is it concentrated in?
- What is the cost of a detection test?
Analysis
Stuck to the structure provided by the question of How, Where and How Much?
It was more of a discussion where I suggested different plans for 2 of the segments (Sex Workers and the Clients, Wives ignored as it was agreed that using protection after marriage was not acceptable by most men in this strata).
Testing in the ‘Sex Workers’ was to be shelved for the first part of the plan as the incremental benefits were small given that they had a very high percentage of affliction.
Suggested that the plan be rolled out 5 states to begin with and in areas having brothels near construction sites (migrant labor) and highways (truck drivers were a major part of the clientele)
How much?
To be tackled by setting milestones that the foundation set to achieve in terms of ‘slowing down spreading of AIDS’ in terms of spread after program introduced vs. spread with natural rate) using some publically available estimates of expenditure involved in such programs.
Tips: Take your time. Don't rush.
Round: Case Study Interview
Experience: Case
Client is a PSU Bank; savings account opening takes 60 mins.
(Entire Chain of Activities was given as an Exhibit with time and sequence involved) Reduce this to 15 mins.
It was a 10 mins case.
Analysis
1. Identify Critical Path
2. See which activities can be moved off/performed simultaneously/ performed by customer (perhaps at home)/performed beforehand (printing of cheque books)/performed by others (outsourced)
3. See which activities can be simplified, e.g. Form filling took 15 mins (It was a 15 page form, so simplify and shorten form)
NA: Why do we need the teller? Why can’t the officer do the work for the teller? (This would mean slashing off 6 mins of the process as the officer would not need to verify again)
Tips: Be honest in all your PI answers, as the inconsistencies are very apparent on the other side of the table even if you have rehearsed
your answers to perfection.
Round: Case Study Interview
Experience: Case
Client is a bank looking to set up a 100 ATM network or operate it on a contract. What would be your advice to the CEO?
Additional facts provided when asked: Real Estate + Machine + IT Network + Utility Costs on a monthly basis when owned and run by the bank as well as the annual management contract fee when outsourced.
Analysis
To study the differences in Costs between ‘Owned and run’ and
‘Outsourced’ (Owned and then leased out to different banks was not an option)
It was just a numbers case after the basic costs were identified, from the costs angle alone ‘Owned and Run’ was a better option.
Interviewer: Other than the compelling numbers, what might be the advantage of ‘owned and run’ over ‘outsourced’
Me: Maintenance and service levels can be controlled more effectively.
Interviewer: For what reasons would you favor outsourcing over owned and run?
Me:
a. Fact that cost estimates are current and these could be revised downwards as the outsourcing vendor acquires scale
b. Not a core function/the usual outsourcing arguments.
Tips: Take your time. Don't rush.
Round: Case Study Interview
Experience: Case
Estimate Gasoline Consumption of Cars in Mumbai in one year.
Estimation involved:
- Population of Mumbai
- Average Income
- Number of Cars ( This was estimated using an ‘affordability ratio’ –-> using the average price of a car, average life of a car and fuel and service expense required, an average operating expenditure p.a. on a vehicle was found. And this operating expenditure would be less than 20% of Household Income, hence assuming a normal distribution of Income, an estimate of number of cars was found)
- Average Distance Traveled per vehicle
- Average Mileage
Skills:
College Name: Indian School Of Business (ISB)
I applied via Referral
4 Interview Rounds
Interview Preparation Tips
Round: Case Study Interview
Experience: Client is a PSU Bank. Currently the account opening process takes between 60 minutes- starting from the time he comes to clerk counter to the time customer leaves with Passbook, Cheque-book and account number. How will you cut it down to < 10 minutes and still deliver all the 3. Drew a complicated process map.
Basic facts given at start of case:
Current process (60 minutes) : The clerk interacts with customer to provide him the account opening form, does the first round scrutiny, does the KYC, sends form to officer for approval, officer approves, clerk opens account & creates account number & passbook, sends to officer to approval , officer approves, clerk creates the cheque book, sends to officer to approval , officer approves. Clerk hands over the Account Number, Pass book and cheque book to customer.
Facts shared ( shared by Nigel only if you ask)
• Customer is issued form and he submits a filled up form to clerk = 15 minutes
• Scrutiny of form = 10 minutes
• KYC takes 5 minutes
• Each approval loop with officer takes – 10 minutes ( 3 loops=30mins)
• Approval cannot be done by Clerk as per union rules
Key Issues :
Methodologies recommended
a. Break down the process into various smaller steps. Do a time work-motion study to understand the component steps. Then do a Pareto (80/20) and attach the areas which consume the most time.
b. Break down the process into various smaller steps. Classify each step as
1. Adds Value to Customer from a/c opening perspective
2. Non Value Add – can be minimized, not eliminated
3. Non Value Add – can be eliminated.
By experience, 80% of the time is Non Value add ( 2&3). Do a Pareto within that and work out the various ways of reducing time.
Solutions
1. I had recommended an Internet based system where major customer information and checks would happen online and only a mandatory KYC (Know Your Customer) process would take place onsite.
2. McKinsey had (a) Combined the jobs of the clericals and officers (b) Used Pre-printed blank welcome kits with cheque books, pass books & account numbers. (c) Only KYC was done onsite (RBI regulations)..account names were incorporated subject to KYC confirmation.
Ramifications
1. Banking Unions (PSU): How will they react to job rationalisation/ eliminating clerical roles?
2. If you combine the roles (clerk & officer) and make the officer do it…wont your salary bill increase…since the initial clerk to officer ratio (5:1) is now (0:5). What emerged is that in most PSUs, experienced clerks earn similar or more to officers. Hence not much of wage impact.
Tips: 1. Stay Confident & Cool.
2. Take control of the Case discussion. If the interviewer presents information in a user-unfriendly or non standard manner, ask him to do it in the way you want to or ask him to help you out in mapping the information in your framework.
Round: Case Study Interview
Experience: Client is a no 1 boiler manufacturer in India. His profit margins are at 11% while industry expectations are at 15%. Help him out in reaching this target.
Tried to evaluate product mix, profitability etc. – Client makes a wide span of products. But interviewer was not interested in specifics. Wanted me to identify the key cost & revenue drivers.
Costs
1. Are we sourcing Raw material effectively & cheaply? Can we go to china etc?
2. Can we re-evaluate Make vs Buy option for all products in the Bill of Material.
3. Are our products over- designed? Do they consume more raw material than competition.
4. Do we have higher fixed costs- new investments, labour<>variable costs?
5. Do we have economies of scale for all products, parts etc?
Was told to identify sources of revenue to increase margins
1. Change product mix
2. Evaluate newer- more profitable markets
3. Brand your own products (the client is a manufacturer for others, not seller) -> refer to brand and market creation
costs.
4. Service Business – Repair, Spares & Consumables ( Missed this out completely- was finally hinted by interviewer)
Conclusion: Services were neglected by client. Potential revenue source. Client has a large installed base of customers. So he can do this business better, build service model and capabilities.
Options
1. Sell Maintenance contracts with boilers
2. target installed base of boilers
I had added that he can widen his base by targeting all brands of boilers (assuming differences were not significant). Service is a high margin business since operations at units are hampered leading to production losses in the event of boiler failure.
Tips: 1. Stay Confident & Cool even if you miss the above fact. Move on and build on it. Relate the case or elements of it with work and
discuss it.
2. Show Energy during the interview!
Round: Case Study Interview
Experience: Case 1
Client is a music company ( RPG-Saregama). It was not making money.
Revenue side- affected by Music piracy and music channels. They affected price and sales negatively
Cost Side – Producers still sold music rights at higher prices. Since music producers are few- their consolidation hurt the music
industry bad.
Additional facts : All big banners like Yashraj films etc end up making losses for the company due to high music right costs.
Typical successes / margins have been in low (B/C segments with films like Murder etc)
Analysis
Structured case as Customers, Suppliers and Competition.
Option1 – Increase revenues
While analyzing customers- not much information available- no segments -> based on discussion, generated multiple sources of revenues for music industry
a. CD/Cassettes
b. Radio / TV rights – do not provide full song clips to channels. Only teasers. If song is a hit, channels would ask for it and thus can pay for it.
c. Internet- Streaming rights
d. I-pod type devices
e. Ring tones
Told to explore the cost options in details.
Option2 – Decrease costs
Me :Proposed Risk sharing / royalty based mechanisms.
NK : All the big banners do not agree to it
Me : But we can get the smaller producers to agree… (NK agreed that it can be explored)
NK: Why do these companies deal with big producers when they make losses? What is important in the buyer industry structure
After some discussions…arrive at the structure – Big producers (A type) and Small Producers (B&C types)
Possible reasons I could come up with include-
Me: Possible reasons can include
a. Long term relationship in the industry
b. A large number of smaller successes subsidizing the losses from larger ones
c. Association of music companies with big producers offers
them clout in the industry to deal with smaller producers…they can thus negotiate better deals with B&C type producers.
NK : Yes.… the big banners are like loss leaders.... they help music companies in getting better deals from smaller producers. And also, the industry is very relationship driven…some of the deals are purely based on established long working relationships.
Case 2 :
Your client is Tata Motors. The Direct material cost of Tata Indica is ₹150,000. The basic design is same for the 1 lakh car. How can you bring the cost down to ₹75000…outline the basic levers.
Structured it into 4 areas
a. Rationalize the vendor base to get economies of scale and scope.
b. Rationalize parts across platforms of vehicles to get further economies.
c. Rationalize design – Certain parts might be over designed or inefficiently designed leading to increased costs on account of excess materials or additional processing (labour, overhead etc)
d. Evaluate every part from a Make or Buy perspective. This would enable focus on core areas and help gain cost advantage in sourcing items like Tyres, O Rings, Nuts-Bolts etc.
After that he wanted to do a numbers/ quant check on me…so the example was extended to calculate certain % values.
Tips: 1. Prioritize issues for discussions with the interviewer.
2. Be prepared for anything!
Round: Case Study Interview
Experience: Case
Client is a confectionery manufacturer making chocolate bars. In the 1980’s it had a mfg base in UK. However, in early 90s it set up another facility in France. During mid 90’s the business faced decline in revenues and profitability. What could be the reasons / hypothesis and what would you recommend?
Enquired about the basic details
a. Product mix – single chocolate bar
b. Supply- demand check -> Demand has been declining. No problems in supply side.
Discussed the Revenue- Cost equation.
Revenue can go down by the following
a. Competition introducing newer/ better/cheaper products
b. Changing customer behavior- more health conscious people/ availability of substitutes/ imports etc
c. Any changes done to product flavour/ taste etc..which can turn off customers.
Cost :
Discussed the standard Fixed and Variable costs. Was asked to break it down further.
Variable – Raw Materials, Distribution etc
Fixed – Depreciation, Capacity Utilization etc
a. Fixed Costs – New plant – higher depreciation costs. + Degree of capacity utilization ( this was reason 1)
UK – mfg capacity = 15 mn units / year
Actual production = 700,000 units per month approx 55% capacity utilization
France – mfg capacity = 20 mn units / year
Actual production = 650,000 units per month approx 39% capacity utilization.
These numbers were generally thrown around to evaluate my comfort with numbers.
Interviewer himself jumps to part (b)
b.Variable Costs
Fact 1 Raw material costs are 25% of Sale price vs 20% for competition
1/ Asked Oliver on the supplier base (local, import & no of suppliers) and amounts sourced. Decreased revenues could have decreased our sourcing economies. OK with this…wanted more reasons….
2/ Checked if both were importing same quality of material. We could be using better quality products compared to competition.
3/ Checked if we hedged these items while procuring…(Key Point
2) Competition was obviously doing this better and saving costs.
Fact 2 Our Distribution costs are 15% of sale price vs competition 10%
Key differentiators could be…
We have our own trucks ..competition uses 3rd party suppliers
1. More costs on account of people, fixed costs of trucks + empty trucks coming back (Low utilization)
2. We send part loads…competition does not worry since his transporters can optimize on truck load thru other customers.
c. General calculations
Another round of quant check. Thrown some numbers to calculate cost per unit of the 2 factories (UK & France )
Each unit has 200 employees x 40 hrs/week x 50 wks /yr
UK wages = $ 15/ hour
France Wages = $ 20 / hour
After this told to calculate profitability of each unit at both locations given Raw material = 25% of sale price ($ 2/unit).
Total numbers check
Recommendations
1. Rationalize the production quantities at each unit - would depend on the overall inward and outward transportation costs also..apart from capacity utilization. (Excess transport costs in serving new markets would need to be checked for)
2. Use excess capacity for producing 3rd party chocolates. Also evaluate if factory can be re-tooled / flexible to manufacture other products apart from chocolate.
3. Shut down 1 plant. –
a. See how efficient it would be operationally. No backup/excess capacity would then be available as a strategic/contingency resource.
b. Also potential trouble on the political front – example if French unit was shut down, there could be a political fallout as well as French customers might boycott your products. (cited Mittal-Arcelor )
c. Union issues- long term dispute- can dilute brand value of business.
Tips: Be prepared for all sorts of numbers/calculations…take time out in case there are huge calculations…I did that…small calculations
were done verbally.
Interviewer also wanted to check if I could come up with all types of hypothesis on various facts. Be prepared to think creatively and use your common sense to remove non relevant stuff.
Round: Case Study Interview
Experience: Client manufactures auto forgings @ 200 per day. Increase it to 400 per day… How?
Enquired if market demand was justified to double output…Market would be able to accommodate 200 additional units.
Wanted me to identify key levers. After a lot of round-about and false steps…learnt that current capacity utilization was 33% only!!
Interviewer wanted a list of things to check …this is what I discussed..
a. Maintenance time records– Breakdown & Planned
b. Setup/ Changeover times on a/c of high product variety
c. Non availability of Material
d. Non availability of Labour – absence/ unmanned breaks
e. Shut down due to utility failures (electricity etc)
f. Quality related losses.
Tips: Be prepared to be grilled.
Round: Case Study Interview
Experience: This seemed a test of whether I could do hypothesis and do some basic math.
Client is a Financial planning & management software company. 3 product lines + 1 service line.
1. Large enterprises – highly customized, large business customers, direct sales force used, consultants needed, sold at CEO/CIO level.
2. SMEs – industry specific package- sold thru dealers/ distributors etc to anyone who wants to buy
3. Individual customers thru regular retail channels.
4. IT consulting – pre/ post support
Question 1: Revenues are declining. What hypothesis would you generate to identify sources of decline…
g. Along segments mentioned above
h. Geographical segments
i. Industries
j. Existing vs New Customers
Question 2: Assume Enterprise segment is losing revenue. What hypothesis can you generate …(asked to generate 15…came to 11) Just think out aloud and discuss ..some of the hypothesis discussed were
d. Changes in regulations
e. M&A in the industry..customers hesitate to buy.
f. Customers think a better product is in the wings and don’tbuy the existing one.
g. New product is complicated …has greater cost and training needs.
h. Sales force not qualified etc.
Question 3: Suppose you find out that the sales force has been spending more time selling simpler product to SME than attend larger customers…enterprise product needs greater effort. wWat would you do?
1. Track sales and channels actively
2. Change incentive structure…
What actions would you take and implications of those.
Tips: Think out loud with the interviewer.
Skills:
College Name: Indian School Of Business (ISB)
Experience: Client is a PSU Bank. Currently the account opening process takes between 60 minutes- starting from the time he comes to clerk counter to the time customer leaves with Passbook, Cheque-book and account number. How will you cut it down to < 10 minutes and still deliver all the 3. Drew a complicated process map.
Basic facts given at start of case:
Current process (60 minutes) : The clerk interacts with customer to provide him the account opening form, does the first round scrutiny, does the KYC, sends form to officer for approval, officer approves, clerk opens account & creates account number & passbook, sends to officer to approval , officer approves, clerk creates the cheque book, sends to officer to approval , officer approves. Clerk hands over the Account Number, Pass book and cheque book to customer.
Facts shared ( shared by Nigel only if you ask)
• Customer is issued form and he submits a filled up form to clerk = 15 minutes
• Scrutiny of form = 10 minutes
• KYC takes 5 minutes
• Each approval loop with officer takes – 10 minutes ( 3 loops=30mins)
• Approval cannot be done by Clerk as per union rules
Key Issues :
Methodologies recommended
a. Break down the process into various smaller steps. Do a time work-motion study to understand the component steps. Then do a Pareto (80/20) and attach the areas which consume the most time.
b. Break down the process into various smaller steps. Classify each step as
1. Adds Value to Customer from a/c opening perspective
2. Non Value Add – can be minimized, not eliminated
3. Non Value Add – can be eliminated.
By experience, 80% of the time is Non Value add ( 2&3). Do a Pareto within that and work out the various ways of reducing time.
Solutions
1. I had recommended an Internet based system where major customer information and checks would happen online and only a mandatory KYC (Know Your Customer) process would take place onsite.
2. McKinsey had (a) Combined the jobs of the clericals and officers (b) Used Pre-printed blank welcome kits with cheque books, pass books & account numbers. (c) Only KYC was done onsite (RBI regulations)..account names were incorporated subject to KYC confirmation.
Ramifications
1. Banking Unions (PSU): How will they react to job rationalisation/ eliminating clerical roles?
2. If you combine the roles (clerk & officer) and make the officer do it…wont your salary bill increase…since the initial clerk to officer ratio (5:1) is now (0:5). What emerged is that in most PSUs, experienced clerks earn similar or more to officers. Hence not much of wage impact.
Tips: 1. Stay Confident & Cool.
2. Take control of the Case discussion. If the interviewer presents information in a user-unfriendly or non standard manner, ask him to do it in the way you want to or ask him to help you out in mapping the information in your framework.
Round: Case Study Interview
Experience: Client is a no 1 boiler manufacturer in India. His profit margins are at 11% while industry expectations are at 15%. Help him out in reaching this target.
Tried to evaluate product mix, profitability etc. – Client makes a wide span of products. But interviewer was not interested in specifics. Wanted me to identify the key cost & revenue drivers.
Costs
1. Are we sourcing Raw material effectively & cheaply? Can we go to china etc?
2. Can we re-evaluate Make vs Buy option for all products in the Bill of Material.
3. Are our products over- designed? Do they consume more raw material than competition.
4. Do we have higher fixed costs- new investments, labour<>variable costs?
5. Do we have economies of scale for all products, parts etc?
Was told to identify sources of revenue to increase margins
1. Change product mix
2. Evaluate newer- more profitable markets
3. Brand your own products (the client is a manufacturer for others, not seller) -> refer to brand and market creation
costs.
4. Service Business – Repair, Spares & Consumables ( Missed this out completely- was finally hinted by interviewer)
Conclusion: Services were neglected by client. Potential revenue source. Client has a large installed base of customers. So he can do this business better, build service model and capabilities.
Options
1. Sell Maintenance contracts with boilers
2. target installed base of boilers
I had added that he can widen his base by targeting all brands of boilers (assuming differences were not significant). Service is a high margin business since operations at units are hampered leading to production losses in the event of boiler failure.
Tips: 1. Stay Confident & Cool even if you miss the above fact. Move on and build on it. Relate the case or elements of it with work and
discuss it.
2. Show Energy during the interview!
Round: Case Study Interview
Experience: Case 1
Client is a music company ( RPG-Saregama). It was not making money.
Revenue side- affected by Music piracy and music channels. They affected price and sales negatively
Cost Side – Producers still sold music rights at higher prices. Since music producers are few- their consolidation hurt the music
industry bad.
Additional facts : All big banners like Yashraj films etc end up making losses for the company due to high music right costs.
Typical successes / margins have been in low (B/C segments with films like Murder etc)
Analysis
Structured case as Customers, Suppliers and Competition.
Option1 – Increase revenues
While analyzing customers- not much information available- no segments -> based on discussion, generated multiple sources of revenues for music industry
a. CD/Cassettes
b. Radio / TV rights – do not provide full song clips to channels. Only teasers. If song is a hit, channels would ask for it and thus can pay for it.
c. Internet- Streaming rights
d. I-pod type devices
e. Ring tones
Told to explore the cost options in details.
Option2 – Decrease costs
Me :Proposed Risk sharing / royalty based mechanisms.
NK : All the big banners do not agree to it
Me : But we can get the smaller producers to agree… (NK agreed that it can be explored)
NK: Why do these companies deal with big producers when they make losses? What is important in the buyer industry structure
After some discussions…arrive at the structure – Big producers (A type) and Small Producers (B&C types)
Possible reasons I could come up with include-
Me: Possible reasons can include
a. Long term relationship in the industry
b. A large number of smaller successes subsidizing the losses from larger ones
c. Association of music companies with big producers offers
them clout in the industry to deal with smaller producers…they can thus negotiate better deals with B&C type producers.
NK : Yes.… the big banners are like loss leaders.... they help music companies in getting better deals from smaller producers. And also, the industry is very relationship driven…some of the deals are purely based on established long working relationships.
Case 2 :
Your client is Tata Motors. The Direct material cost of Tata Indica is ₹150,000. The basic design is same for the 1 lakh car. How can you bring the cost down to ₹75000…outline the basic levers.
Structured it into 4 areas
a. Rationalize the vendor base to get economies of scale and scope.
b. Rationalize parts across platforms of vehicles to get further economies.
c. Rationalize design – Certain parts might be over designed or inefficiently designed leading to increased costs on account of excess materials or additional processing (labour, overhead etc)
d. Evaluate every part from a Make or Buy perspective. This would enable focus on core areas and help gain cost advantage in sourcing items like Tyres, O Rings, Nuts-Bolts etc.
After that he wanted to do a numbers/ quant check on me…so the example was extended to calculate certain % values.
Tips: 1. Prioritize issues for discussions with the interviewer.
2. Be prepared for anything!
Round: Case Study Interview
Experience: Case
Client is a confectionery manufacturer making chocolate bars. In the 1980’s it had a mfg base in UK. However, in early 90s it set up another facility in France. During mid 90’s the business faced decline in revenues and profitability. What could be the reasons / hypothesis and what would you recommend?
Enquired about the basic details
a. Product mix – single chocolate bar
b. Supply- demand check -> Demand has been declining. No problems in supply side.
Discussed the Revenue- Cost equation.
Revenue can go down by the following
a. Competition introducing newer/ better/cheaper products
b. Changing customer behavior- more health conscious people/ availability of substitutes/ imports etc
c. Any changes done to product flavour/ taste etc..which can turn off customers.
Cost :
Discussed the standard Fixed and Variable costs. Was asked to break it down further.
Variable – Raw Materials, Distribution etc
Fixed – Depreciation, Capacity Utilization etc
a. Fixed Costs – New plant – higher depreciation costs. + Degree of capacity utilization ( this was reason 1)
UK – mfg capacity = 15 mn units / year
Actual production = 700,000 units per month approx 55% capacity utilization
France – mfg capacity = 20 mn units / year
Actual production = 650,000 units per month approx 39% capacity utilization.
These numbers were generally thrown around to evaluate my comfort with numbers.
Interviewer himself jumps to part (b)
b.Variable Costs
Fact 1 Raw material costs are 25% of Sale price vs 20% for competition
1/ Asked Oliver on the supplier base (local, import & no of suppliers) and amounts sourced. Decreased revenues could have decreased our sourcing economies. OK with this…wanted more reasons….
2/ Checked if both were importing same quality of material. We could be using better quality products compared to competition.
3/ Checked if we hedged these items while procuring…(Key Point
2) Competition was obviously doing this better and saving costs.
Fact 2 Our Distribution costs are 15% of sale price vs competition 10%
Key differentiators could be…
We have our own trucks ..competition uses 3rd party suppliers
1. More costs on account of people, fixed costs of trucks + empty trucks coming back (Low utilization)
2. We send part loads…competition does not worry since his transporters can optimize on truck load thru other customers.
c. General calculations
Another round of quant check. Thrown some numbers to calculate cost per unit of the 2 factories (UK & France )
Each unit has 200 employees x 40 hrs/week x 50 wks /yr
UK wages = $ 15/ hour
France Wages = $ 20 / hour
After this told to calculate profitability of each unit at both locations given Raw material = 25% of sale price ($ 2/unit).
Total numbers check
Recommendations
1. Rationalize the production quantities at each unit - would depend on the overall inward and outward transportation costs also..apart from capacity utilization. (Excess transport costs in serving new markets would need to be checked for)
2. Use excess capacity for producing 3rd party chocolates. Also evaluate if factory can be re-tooled / flexible to manufacture other products apart from chocolate.
3. Shut down 1 plant. –
a. See how efficient it would be operationally. No backup/excess capacity would then be available as a strategic/contingency resource.
b. Also potential trouble on the political front – example if French unit was shut down, there could be a political fallout as well as French customers might boycott your products. (cited Mittal-Arcelor )
c. Union issues- long term dispute- can dilute brand value of business.
Tips: Be prepared for all sorts of numbers/calculations…take time out in case there are huge calculations…I did that…small calculations
were done verbally.
Interviewer also wanted to check if I could come up with all types of hypothesis on various facts. Be prepared to think creatively and use your common sense to remove non relevant stuff.
Round: Case Study Interview
Experience: Client manufactures auto forgings @ 200 per day. Increase it to 400 per day… How?
Enquired if market demand was justified to double output…Market would be able to accommodate 200 additional units.
Wanted me to identify key levers. After a lot of round-about and false steps…learnt that current capacity utilization was 33% only!!
Interviewer wanted a list of things to check …this is what I discussed..
a. Maintenance time records– Breakdown & Planned
b. Setup/ Changeover times on a/c of high product variety
c. Non availability of Material
d. Non availability of Labour – absence/ unmanned breaks
e. Shut down due to utility failures (electricity etc)
f. Quality related losses.
Tips: Be prepared to be grilled.
Round: Case Study Interview
Experience: This seemed a test of whether I could do hypothesis and do some basic math.
Client is a Financial planning & management software company. 3 product lines + 1 service line.
1. Large enterprises – highly customized, large business customers, direct sales force used, consultants needed, sold at CEO/CIO level.
2. SMEs – industry specific package- sold thru dealers/ distributors etc to anyone who wants to buy
3. Individual customers thru regular retail channels.
4. IT consulting – pre/ post support
Question 1: Revenues are declining. What hypothesis would you generate to identify sources of decline…
g. Along segments mentioned above
h. Geographical segments
i. Industries
j. Existing vs New Customers
Question 2: Assume Enterprise segment is losing revenue. What hypothesis can you generate …(asked to generate 15…came to 11) Just think out aloud and discuss ..some of the hypothesis discussed were
d. Changes in regulations
e. M&A in the industry..customers hesitate to buy.
f. Customers think a better product is in the wings and don’tbuy the existing one.
g. New product is complicated …has greater cost and training needs.
h. Sales force not qualified etc.
Question 3: Suppose you find out that the sales force has been spending more time selling simpler product to SME than attend larger customers…enterprise product needs greater effort. wWat would you do?
1. Track sales and channels actively
2. Change incentive structure…
What actions would you take and implications of those.
Tips: Think out loud with the interviewer.
Skills:
College Name: Indian School Of Business (ISB)
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