Strada Senior Associate Interview Questions and Answers

Round: Case Study Interview
Experience: I took a complete background check with regard to the motivation behind diversifying into IT sector. Also, what kind of IT businesses it wanted to diversify. The interviewer suggested that they want to achieve revenue of USD 5Bn from current USD 4Bn. Also, they want a margin of 12-15% from this new business. Also, the major consumer of IT services are Europe and US.So, I divided the problem into two parts –1. Whether IT business would serve them the purpose for achieving desired revenue. 2. If yes, then what would be the strategy for entering into IT services?I started off with the projected revenue estimates for all types of IT services. However, the interviewer changed the problem statement (due to paucity of time I suppose). He asked what would be the basis for selecting companies from an acquisition standpoint from an initial pool of companies across the globe. I came up with two matrix table wherein I stated what the Indian conglomerate wants from the acquisition (ie Need) and what it can offer to the target company (ie want of target) and tried to match it.The interviewer informed that the Indian conglomerate was cash rich company, stands on its values and has strong client relationship with manufacturing sectors / vendors. So I started linking all of them –
•funding –requirement for cash strapped companies
•Reputation –It can offer brand value to companies not well known
•Client relation to leverage –Companies not present in manufacturing IT services.Also, during discussion, I linked the problem practically to how Mahindra went on to acquire Satyam and what factors it looked before bidding. I think the interviewer was impressed with the linking to case to practical situation.

Round: Problem Statement
Experience: Me: Define market share?
Interviewer: Market share is defined by quantity and sales value.
Me: There could be 3 possible scenarios: Market stagnant, we are losing out to competitors; Market growing but we are not growing as fast as market; market shrinking but we are losing more than our competitors.
Interviewer: Second scenario
Me: Major customers
Interviewer: Real estate companies.
After a brief background question, I started off with the problem analysis.
I broke the problem into Demand and Supply side. Under demand side, I mapped the consumer behaviour analysis of buyer and brought out several points. However, the interviewer was interested in delving into supply side. Anyway, he told me to analyse demand side.Based on our discussion, we realized that pricing and timely delivery was an issue. Pricing is based on cost plus pricing. Cost includes transportation cost which was significantly higher than industry standards. High transportation cost stems from the fact that the factory was located far away from the market. Also, acquisition of lime stone has been a challenge for the company. I think the interviewer was impressed from the fact that the problem was solved from the demand side. Also, I quickly suggested 2 solutions to the problem:
•Short term –Reduce prices and take a hit on profit to regain market share
•Medium term –Follow hub and spoke model to reduce delay in delivery time
•Long term –Acquire a source (may be mine or long term supplier) for lime stone.

Round: Problem Statement
Experience: I took background questions regarding in which circle it operates and its vision in India. I suggested that I would do a Net Present Value analysis and would bench mark against return expected by Norway Head Office. We went into revenue stream like voice and data. Cost included operating, spectrum, license fee etc. He seemed to be satisfied with the response. Also, he asked me why AT&T is not bidding for the spectrum. I explained that Uninor has invested time, effort in understanding Indian market which AT&T has not. I drew learning curve of both Uninor and AT&T. He seemed impressed.
Tips: 1.Be calm and composed. Even if one interview does not go well, one would have another chance to perform.
2.Take good background questions to understand the problem. Dissect the problem and then approach.
3.Structured thinking is very important. Also, explain briefly the broad bucket in the structure.
4.All suggestions should have some basis based on the inputs taken during the interview.
5.Thorough CV and HR preparation are hygiene factors.
6.Always smile!

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