McKinsey & Company Summer Intern Interview Questions and Answers

Interview preparation tips for other job seekers - Learn in advance how to complete these tasks.

Round: Problem Statement
Experience: Case analysis:Got the working model of the firm. The bidding model. Eventually came to revelation that they are not winning bids in last 2 years Structure:
Analyzed bidding structure ( COST + MARGIN).Broke into typical cost analysis and identified different cost heads.Required to provide innovative solutions for decreasing cost.
Tips: Practice a lot of cases with diverse people to open your analytical approach.

Skills: Case Solving Ability, Case Analysis
College Name: IIM Lucknow

Round: HR Interview
Experience: Had a 1 minute intro prepared highlighting specific aspects about myself that I wanted to bring to his notice.
I explained that I was engaged in assigning Credit Ratings to Corporates under Basel II Regulations.
Because it was Bharti Airtel I had to give an answer tailored to what the approach would be for a Telecom company would be. While answering I was conscious of 2 things –One, that I have a clear structure to my answers and Two, tried to keep it as simple and jargon free as possible.

Round: Problem Statement
Experience: Preliminary questions -We all know Bharti Airtel and the services it offered quite well –So there was no need to ask preliminary questions. Also, since I wasn’t aware that I was doing a case I did not have the opportunity to ask preliminary questions.Structure: The Structure that I used was fairly simple –Increase in Revenues can in Existing markets or through expansion in new markets. I explored the existing markets first. Here increase in revenues could occur through increased market penetration, increased usage of basic services among current users or increased usage of Value added services among existing customers. He asked me a couple of questions on how these things can be done and I gave him some off the cuff answers. For the New markets, I suggested that the company could look at inorganic expansion through acquisitions or through establishment of Greenfield operations in new markets with high market potential.The entire case was more like an informal chat. There were a few follow up questions on some of the options I had generated. The case did not last very long –about 10 minutes at the max.
Tips: Know your Resume well. At no point in the interview should you ramble on. All answers must be natural (ie, must not appear rehearsed), brief, structured and to the point. Retaining composure through the interview is critical. Mistakes may happen during the interview,but it is important to pick youup and keep at it. People rarely have perfect interviews where everything has gone right and interviewers don’t expect it either.

Round: Problem Statement
Experience: Preliminaryquestions –
Since it was Tata Nano, lot of the background questions were not required. I clarified whether the problem was a lack of bookings that they received. He agreed.
Structure:
The Structure that I used was not the best but it did get me to the problem. I started off by saying the lack of bookings could be on account of 3 reasons –One, a lack ofawareness of the product among the target customers (Marketing problem), Two, Being aware of the product but not being able to place a booking (Distribution problem) or a Three, being aware of the product yet not interested in the product (I called this the product problem). He asked me to ignore the first 2 (he did not seem highly impressed) and explore the 3rdthe product problem.Here I again broke it upin to 2 further branches –Problems that the Car has by itself (Internal factors) and problems in the external environment mainly competition, etc. I deep delved in to the Internal factors. Of the internal problems I mentioned, he agreed that the negative publicity from the steering wheel catching fire was an issue and comfort factor was another issue. As and when he acknowledged a problem, I made a separate note of it. Eventually when he asked me to explore the external factors, I used these points to do a quick summary of the key takeaways up to that point In the external problem, I divided it into competition from other cars and two wheelers. I asked a few questions here trying to pick up a clue or 2 of how to proceed from there but he just refused to shell out any information. At this point he also took out his Blackberry and acted uncooperative. I went on to analyse for myself that given that the price of the next cheapest car was over a lakh higher than this car the issue lay more with the 2 wheelers. I went on to list factors why people would prefer 2 wheelers to a Tata Nano. Of the factors I listed, he acknowledged that the high running costs and availability of easy financing options seemed like the distinguishing factors. He said I seemed to havearrived at the problem,He now asked me to tell me how he could provide financing options for the Nano. This I felt was like a guess estimate problem. I said I would work backward to solve the problem. This is how I solved it –I said the average Nano target customer would earn Rs 10000 per month (he had given me that number in an earlier discussion, he liked the fact that I had noted it down and was using it again) I said, given the average savings rate of the country is at 35%-40% (this is from the RBI website I think). That meant a saving of about Rs 4,000 per month. No one would be comfortable giving up their entire saving, so if we considered 50% of this, the customer will be willing to pay an EMI of 2000 per month. The company would want to complete the financing within a period of 4 years cause after that the car may be worthless in case of repossession. So this meant roughly a down payment of 20,000 followed by 4 years of EMI of 2000 pm approximately (I took his approval on all of the numbers I used, so he was comfortable with this number). Summary: I began to summarize all my recommendations to that point but he stopped me saying that I didn't have to absolutely nail the case.
Tips: The most important thing to nail a consult interview is composure and confidence. With this in place, half the job is done. In all HR answers it is important to show genuineness. No answer must come across as fabricated.

Skills: Problem Solving Abilties, Case Analysis
College Name: IIM Lucknow

Round: Case Study Interview
Experience: First, I confirmed whether he was talking about leather cricket ball. Thereafter, I started talking about where a cricket ball will be used and who will buy a cricket ball. At each juncture, I kept on checking with Mr. Sikka so as I’m not deviating from the solution. Then I told him that I would estimate sales of cricket balls for Mumbai and then extrapolate it to the whole country.I calculated number of matches played in one day by estimating number of grounds in Mumbai (having played on most of the grounds, it was easy for me). Then I separated one day matches and 20-20 matches as one day match requires 2 balls and 20-20 requires 4 balls(As two 20-20 matches are possible on a single pitch in one day).Also, considering that each ground hosts practice session 2 times a day and this will also contribute towards the sales. Then he stopped me and said fine. He did not go into depth of the guesstimate as it could have got complicated with other parts of the country to be considered for contribution towards the sales of cricket balls.
Tips: Please practice your cases as well as guesstimates. Also, know your CV in and out. Always connect with the interviewer.

Skills: Case Analysis
College Name: IIM Lucknow

Round: Case Study Interview
Experience: I believe that Pankaj was asking the same case from everyone. There are three wine manufacturer had three products of wine A,B AND C with 40%, 30% and 30% market share. A had three products.
Tips: According to me, the first interview is the most important for making to the second round. In case you screw your first interview, chances of making to the second round become very less. Try to connect with the interviewer and do not make any silly mistakes. A great performance is not compulsory but do not try to screw anything.

Round: Case Study Interview
Experience: The case was a very short one. He told me that I was a consultant for a hospital which is concerned with its lower revenue in cardiac operations. The number of doctors, facilities and charges were all same. The key was to identify the operation run time and activities that can be done outside the operation theatre.
Tips: Try to figure out everything that can affect a particular situation/scenario.
They might not be the things being looked by the interviewer, but it shows the breadth of your knowledge to him.

Round: Case Study Interview
Experience: The interviewer gave me details of two companies and asked me the difference in their valuation by two methods and the reason behind that. Then he asked to choose one company in which I would invest as an Industry player and as a PE investor. I was a bit intimidated in the beginning when he was giving me the financials for the two companies and tool some time to get back from the state of shock. The key aspect was identifying the difference in motives for an investor and an industry player. I was able to convey that to him He was okay with the case response and told me so. He helped at one point in identifying one of the differences in the valuations by two methods.
The second case was a logical puzzle which was asked to many. The puzzle was that I and my friend have lost their wallets. I had 1000 rs in the wallet and I am unaware about the amount in my friend's wallet. A person finds both and asks to bid for both the wallets. What maximum bid should I make?
I was able to solve the puzzle with a little help from him. He complemented me for the same.
Tips: Maintain your calm. There might be cases where you need to do a lot of calculations. Knowledge about financials definitely helps.

Skills:
Duration: 3
College Name: IIM Lucknow

Round: Case Study Interview
Experience: Case1: You are the owner of a theater. You have contracted a troop to perform two shows everyday. The show is a big success and has been running houseful for the last two months. However, you are still making losses. Investigate..
Case2: You are a security company and provide safe-boxes for bank to transfer the cash. You have three types of vehicles and rate of depreciation was given. Your other cost include security personnel. Ignore other cost. You have been operating in two cities. Same business from both, but making losses in one and profits in the other one. Investigate.
Tips: Knowledge of fin, specially MANAC I, is very important for Mckinsey even if they don't say so.

Skills:
Duration: 3
College Name: IIM Lucknow

Round: Case Study Interview
Experience: Case 1: XYZ co. wants to introducE shampoo for rural market. It has come to you for consulting to test whether the product will be profitable and how to best launch the product, along with its marketing and promotion strategies.
To test the feasibility and profitability the market can be analyzed on the basis of the following factors:
- Substitutes: bathing soaps, present shampoo
-Consumer preferences: for the rural consumer price will be most important factor when considering a product for purchase.
-Competition: for this I asked question on the present market share of the company and the degree of competition in the market and then analyzed the same.

For the marketing and promotion strategies I suggest the following:
- The price should be in competition with the substitutes as the consumer is price sensitive.
-Retailer recommendation plays an important role in selling products in rural market.
-Introduce the product in small sachets as the rural consumer buys small packs as they don't have lot of money at their disposal.

Case2: IIML is currently at number 550 position in the world, what factors need to be emphasized on to bring it among the top 5 institutes.
The various factors to be improved on will be:
-Credentials of the faculty
-Courses offered
-Placements
-Qualification of students
-Infrastructure
These would be some of the factors. Then I evaluated how each of these would be an important factor in the evaluation criteria. After that how each of these could be improved upon.
Tips: A case might be given relating to an industry or a project which you have on your CV, so you should have basic knowledge about that. Solve the case in a structured manner. involve the interviewer and take his views. Your approach in solving the case is very important.

Skills:
Duration: 3
College Name: IIM Lucknow

Round: Case Study Interview
Experience: The case was about a private equity firm which had to take a decision to buy a wine company. If you are the firm how would you proceed? The interviewer wanted to see the approach and he was willing to give data as required to make a decision.
Tips: Be ready to explain each of your assumption.
Practise few calculations as it is also important while solving case.

Round: Case Study Interview
Experience: He told me to select one area and the case will be on that. I told him whatever he likes. He then said that there is a company in Africa which manufactures papers. From past three years its profit has been declining. Suggest ways to improve it.
Tips: Relax draw structures which helps him understand how you are working.

Skills:
Duration: 3
College Name: IIM Lucknow

Round: Case Study Interview
Experience: A successful man wants to open a restaurant in a downtown of a metro. What should be his strategy and how should he estimate his resources?
I started by clarifying the successful part and what does the interviewer mean by resources, I was told that the successful part was to block my analysis along cost part and the resources was limited to number of chairs and tables. After I told about how he might choose the demographics of the downtown area and how he should choose the type of restaurant, the interviewer said to take the restaurant to cater lunch to office goers and is of Italian type.
My numeric analyses started with a clarified assumption that Italian restaurants are expensive and are visited by rich executives on an occasional lunch basis. Then came the assumption to numbers and division to to age group., income group, gender etc and arrived at a decent number which was ok to the interviewer.
Tips: The interviewer wants to look at how we were choosing each step. So think aloud and take it slow because they never urge you to take it fast and you don't have to either.

Round: Case Study Interview
Experience: Estimate the number of treadmills in Delhi.
I started along the traditional path of diving the population into families and families into rich and poor. And then rich families with health conscious people.
2nd part was about number of gyms and other health centres where treadmill might be there. Here the analysis was in terms of number of gyms and avg number of treadmills in each gym.

An analytical question: A person loses his purse with 1000 bucks in it and there is a second person who also loses his purse with unknown amount in it. A third person finds the purses and asks both of them to bid alternately and whoever bids the highest wins both the purses. If you are that first person who lost purse with 1000 bucks in it, how much would be your highest bid?
I was confused with the question because I thought it was a onetime bid and told him that we cannot find the answer. He found out why I was saying that and told that the bid continues till one of them stops. From here on I took some time to arrive at the solution but it needed decent bit of help. The answer is 2000 because that will take the first person to at least the same state as he was without his pursei.e 1000
Tips: There is nothing wrong in asking for help and in fact it is very well appreciated in most of the cases. But avoid overdoing it.

Skills:
Duration: 3
College Name: IIM Lucknow

Round: Case Study Interview
Experience: The case was about declining profitability of an Italian restaurant in New Delhi. Looked like a plain vanilla profitability case to me. I did the clarification part and gave him the standard cost vs revenue profit model as my structure. He said the structure was ok and asked me to continue, I launched into the analysis only to be stumped just 2 minutes later.
The restaurant was not losing revenue and costs were the same. I asked him three times to confirm this. I took time out and decided this structure would get me nowhere. Flipped a page and started on 4Ps ... Product being first. Asked him about the items sold and then the price of these items. He went one step ahead and gave me profitability figures. Apparently alcohol had more profitability than pasta and meats.
I asked if the product mix had changed over the last 2 years when profits had declined. The look on his face told me the case was over. However, he followed it up with an interesting question about why this may have happened/ I gave him two good reasons that were to do with outside environment, regulation of alcohol and some such thing.
He asked me to take some time to think that the owner of the restaurant may have done which made this happen. I took the customary one-minute and came up with the idea that probably the owner had tried to increase turnover, By improving service time and that the consumers all consumed alcohol while they waited for the main course.
Tips: practise hard. Also make sure you are thinking about the case in the interview and are not thinking about how the interview is proceeding.

Round: Case Study Interview
Experience: Investment decision with limited budget about the creche business in chennai. Guesstimate about numbers of creches that can be opened in Chennai.
Tips: When faced with friendly interviewer you can afford to relax a bit but do not let your guard down quickly.

Round: Case Study Interview
Experience: Case was about a bank.. big bank in India. Wanted to tap rural market. After initial clarification and structure building I identified correctly the areas where the bankk had to apply effort to gain market share. Was stopped before getting in depth.

General Tips: Structure your cases properly.
Skills:
Duration: 3
College Name: IIM Lucknow