Fuqua案例手册2014 2015小灶计划

小灶是一个面向大学生的一站式职业发展教育平台。小灶品牌旗下包括以［小灶计划］、［上海名企实习］为代表的四个微信公众号，以小灶学徒项目为代表的线下训练营系列，20168月正式上线的职业发展课程网站(ww-wxiaozaoorg小灶由杜克大学创业团队创建，以杜克大学－新加坡国立大学专利脑科学技术为教育体系建设核心，以北美顶尖MBA业教育理念为基础，结合创始团队超过40年的职场经验，打造国内最高质量的大学生职业发展教育平台。小灶计划（订阅号）快速获取求职干货

小灶学徒顾问（服务号）求职问题有问必答DMCC2014-DMCC2014-2015 Editor’sWelcomefirstyearTheDukeMBAConsultingClub(DMCC)isproudtopresenttheofficialFirstYearStudent2014-2015DMCCCasebook.Thisyearwehaveincludedover20brandnewcases.Theobjectiveofthisbookistohelpyouprepareforyourupcomingconsultingcaseinterviews.Caseinterviewsareanintegralpartofthehiringprocessforconsultingfirms.Theseinterviewsgiveyoutheopportunitytoshowcaseyourcommunication,client,creativeandanalyticalskillstoyourinterviewer.ThisbookwasdevelopedtocomplementtheDukeMBAConsultingRoadmapcurriculum.Wehopethatusingbothwillhelpleadyoutosuccessduringtheupcomingrecruitingseason.Acoupleofchangeshavebeenmadetoenhancethetrainingofthoseutilizingthebook.First,wehaveincludedbehavioralquestionswitheachcase.Throughfeedbackitwascommunicatedthatstructuredopportunitiestopracticebehavioraltypequestionswaslackingsothisshouldhelpaddress-pleasetakethetimetoadministerandanswerthesequestions!Second,althoughwecannotprepareyouforeverythingyoumightencounterduringayourcaseinterviewswewenttogreatlengthstobetterdiversifythecasecontent.Currentcasescoverawidevarietyoftopicsfrompharmaceuticalstoinsurancesales,acrossseveralproblemtypes.ThiscasebookcouldnothavebeencompletedwithoutallofthewonderfulcasessubmittedbyyourclassmatesandthevaluablecontributionsoftheDMCCCabinetOfficers.WewouldalsoliketothankourfriendsatotherMBAprogramsforsharingwithustheiroldcasebookstosupplementthecasesherein.WewishyouluckwithyourpreparationandwouldlikeyoutorememberthatyourfellowDMCCmembersareheretohelp!Pleasereachouttoanyoneonthecabinetifyoufeelthatyouarenot“crackingthecase”.Lastly,tothestudentsofothertopMBAprogramsusingthiscasebookduringtheirpreparation,wewarmlywelcomeyouto“TeamFuqua”.GoodJeffKaloskiandVineetOverviewoftheCasebookandThefirstsectionprovidesanoverviewofthefirms,followedbyacasetableofcontents,thentheQualitativeandquantitativecasedifficultyisidentifiedwithinthecasetableofcontents;difficultyisonascaleof1to7(7beingthemostdifficult)Cases24and25wereprovidedbyBCGsotheseareveryrepresentativeofthetypeofcaseyouwillreceiveinaBCGCase26wasprovidedbyDeloittesothisisveryrepresentativeofthetypeofcaseyouwillreceiveinaDeloitteAskthebehavioralquestionsEVERYTIMEyougiveaMostcasesareadaptablesotrytofamiliarizeyourselfwiththecasepriortoPrintexhibitsbeforegivingthecaseorbepreparedtosharedigitally(wetriedtoensurethatallexhibitsareeffectivewhenprintedinblackandwhite,butrecommenddoublecheckingyourprintoutstobesure!)HAVETheHighPerformance,delivered.Accenturebringsstrategicthinking,innovativeapproachesandtheabilitytomakeadifferencetocompaniesandgovernmentsaroundtheworld.Accenturehasrecentlyre-structureditsManagementConsultingpractice.Mostorallon-campusrecruitingopportunitieswillfallintotheStrategygroup.CandidateswillinterviewforthegeneralStrategygroupbutmaywishtoexpressinterestinaspecificfunctionalareaorindustryduringtherecruitingprocess.Strategy-OfferingsinMergersandAcquisitions;OperatingModelStrategy;SalesandStrategy;Finance&EnterprisePerformanceStrategy;OperationsStrategy;Talent&OrganizationStrategy;TechnologyStrategy;DigitalStrategyFederal-HelpinggovernmentclientssolvecomplexInterviewRoundInterview2Behavioral/Case

Round2Behavioral/CaseUniqueInterviewCases-Casesareoftenbasedonrealclientexperiences.Casesmayormaynothaveaquantitativecomponent,solistenforverbalclues.CasesareoftenveryconversationalandUniqueInterviewBehavioral/Fit-Fitisveryimportant.Theinterviewermayhavea“briefconversation”aboutyourbackgroundandexperienceinsteadofastandardquestion&answerformat.Also,inthefirstroundatleastoneoftheinterviewersmayfocusmuchmoreheavilyonbehavioral/fitandplacelessemphasisonthecase.CareerCareer(BusinessSchool);SummerSeniorBain&BainisaleadingstrategyconsultingfirmbasedinBoston,MAwith49officesacrosstheBainfollowsthegeneralistmodel.ThereisnoneedtoalignwithaspecificindustryorareabeforeStrategy-Influentialexpertsanddeepexpertiseindozensofindustries,providesconsultantsabroadfoundationonwhichtobuildtheirownPrivateEquityGroup(PEG)-WorkwithprivateequityfirmstoassesspotentialInterviewRoundInterview2Interviews(~45min.Afewbehavioral/fitquestionsandacase(Note:interviewmaystartwiththecase)

Round1fitinterview1writtencaseinterview1typicalcaseinterviewUniqueInterviewShorterprompts-Mostcasesfeatureshorterprompts(2-4sentences).CandidatesshouldUniqueInterviewChartsandgraphs-Bainhasafewuniquechartandgraphformatsthatshouldbe(marimekkoand100%stackedbarsaremostcommon–materialsareonthewebsite)beforeinterviewstobecomefamiliarSecondlevelinsights-Candidatesshouldfocusonthebusinessimplicationsofinformationprovidedduringthecase(the“sowhat?”).Someofthedatapresentedwillnotprovideinsightsintothecase-siftthroughtheCareerAction-orientedrecommendationTherecommendationshouldbeconciseandcontainspecificactionstheclientcouldtakeimmediatelyalongwithanyadditionalworkstreamsthatareneededCareerSeniorAssociate(BusinessSchool);SummerCaseTeamBostonConsultingGroupBCGisapremierstrategyfirmdevelopingandimplementinghigh-valueopportunitiesforchangeforPrivate,PublicandNotforProfitOrganizationsGeneralistinthebeginning–canchoosetofocusonindustryasonemovesintoprojectRegionalstaffingmodel,thougheachofficevaluesitsowncultureandFlatorganizationwithalotoftransparency;communicationisdirectandfeedbackishighly “Chartyourowncourse”philosophy–youcanspecializeinaparticularindustryearlyortakeonavarietyofassignmentsacrossdifferentcountriesortakeasabbaticaltoworkforanon-profitforaStrongmentoringculture,frequentinteractionwithpartnersoncasesandlotsoftrainingopportunitiesifyoujoinBCGfull-time.PersonaldevelopmentistakenveryseriouslyInterviewRoundInterviewTwoanalyticalcaseswithaportionofthetimededicatedtobehavioralfitquestions-45mineach

RoundTwotothreeanalyticalcaseswithaportionofthetimededicatedtobehavioral/fitquestions55minutesUniqueInterviewBepreparedforthebehavioralportionofthecasetobleedintotheanalyticalportionofthecase.ThebreakUniqueInterviewHighlyquantitative–bepreparedforlotsofcomplexPartnerslookfordrivingthecaseandtheapplicationofcommonsensejudgment.TheylookforcreativethinkerswhocanstructuretheirthoughtsNotsimplytextbook(Undergrad);Analyst–A1/A2(denotestheyearsintheCareer(BusinessSchool);SummerCareerConsultant–ProjectLeader–PL1,PL2,Principal–P1,P2,P3,DeloitteConsultingDeloitteisaleadingstrategyfirmbringingexecutablestrategiestotheFortuneDeloittehasthreeserviceareas(below).StudentmustalignwithaserviceareabeforeHumanCapitalprofessionalsbringindustryexpertiseinintegratingbusiness,HRandtalentstrategiestocreatebusinessvaluethroughpeopleStrategyandOperationsprofessionalsbringdeepindustryexperiencewithcapabilitiescorporateandbusinessunitstrategy,M&Astrategy,andsalesandTechnologyprofessionalsfocusoninternaltechnologysolutions,challenges,andinnovation–andfull-spectrumdeliveryacrossstrategy,implementation,managementandoperationsInterviewRoundInterviewAnalyticalCase–30Behavioral–30

RoundStrategyCase–60Behavioral–30GroupCase–90UniqueInterviewLongprompts-Somecasesfeaturemulti-paragraphintroductionsthatincludelotsofUniqueInterviewTheDataSheet-Deloitteoftenhandsyouapagewithmultipleexhibits(chart,graph,list,ordatatableetc.),usuallyoneineachofthefourquadrants.Oftenyouwillneedtocombineinformationfromdifferentexhibitstosynthesizeananswer.TheGroupCase-Youinterviewwith4-5candidates.Eachofyouisassignedaroledifferentthanyourpriorworkexperience)andpresentedwithoverallandrolespecificquestions.Collaboratewithyourpeerstosuccessfullycrackthecase.BusinessCareerCareer(BusinessSchool);SummerSeniorSeniorL.E.K.L.E.K.isaglobalstrategyconsultingfirm.Itcounselsitsclientsonkeystrategicissues,leveragingitsdeepindustryexpertiseandusinganalyticalrigortosolveclients’toughestandmostcriticalbusinessproblems.L.E.K.followsthegeneralistmodelwithnewconsultants.Thereisnoneedtoalignwithaspecificindustryorareabeforeinterviewing.However,thereispotentialtospecializeinaparticularindustrystartinginyoursecondyear.L.E.K.hasparticularexpertiseincludelifesciences/pharmaceuticals,aviationandtravel,industries(buildingmaterials/manufacturing),media&entertainment,retail,andprivateInterviewRoundInterview2Interviews(~30min.Traditionallyonequalitativeandonequantitative(eachwillincludeafewbehavioral/fitquestions)

Round1writtencaseinterviewwithpresentation(1hourtoprepare,30mintopresent)1typicalcaseinterviewwithManager1case/fitinterviewwithPartnerUniqueInterviewShortercases-L.E.K.casesaredesignedtobeshorterthansomeoftheotherfirms.UniqueInterviewQuantitativefocus-EachL.E.K.interviewroundwillcontainasignificantquantitativeandquantitativeaptitudeisveryimportantintheevaluationofcandidates.ManycasesalsorequirefamiliaritywithfinancialstatementsorbasicfinanceconceptssuchasNPV.Firstroundcasestypicallyincludeatleastonemarketsizingcase.Leadershippotential-inadditiontostandardbehavioralquestionssuchas“whyL.E.K.?”interviewerslookspecificallyforcandidatesabletotakeonimmediatemanagementresponsibility,CareerasconsultantsaregivenresponsibilityformanagingassociatesoncaseworkassoonastheyCareer(BusinessSchool);SummerPrincipal(managingdirectorinManagingDirectorMcKinsey&McKinsey&Companyisaglobalmanagementconsultingfirm.Wearethetrustedadvisortotheworld'sleadingbusinesses,governments,andinstitutions.McKinseyrecruitsstudentsintogeneralistandpracticeareas(Businesstechnology,Operations,Marketing)Studentscanexpressaninteresttoapplyasageneralistand/orforapracticeareaSummerAssociatesareassignedtoanyofawiderangeofindustries,touchinganypointinthevaluechain.Project(“study”)staffingiscollaborativebetweenSAsandProfessionalDevelopmentstaff.Structured,formalfeedbackisprovidedbyaseniorfirmmembertwiceduringthesummer.Informalfeedbackiscommon,andishighlyemphasizedinthefirm’sculture.M-Thtravelistypical.Dependingonofficepreferenceyouwilleitherhaveaoneday“PowerRound”sessionorthestandardtieredprocess.TheSouthernofficeandinternationalofficestypicallyconduct“PowerRound”stylePowerRound(atornearFuqua,ifintl.at4-520min30min

Round1(atornear220min30min

Round2(atMcK3-420min30minUniqueInterviewThePersonalExperienceInterview-Unlikeotherfirm’sbehavioralinterviews,McKinseyaskscandidatesonequestionbeforeeachcasetoassesbehavioral/fit.Thesequestionsarerootedinatleastoneofthefollowingareas:personalimpact,entrepreneurialUniqueInterviewCareerHighlyStructuredCases-Casesoftenhavediscreteframework,brainstorming,andquantitative“sections”thatfocusonaquestionspecifictothatCareerBusiness(BusinessSchool);SummerEngagementPricewaterhouseCoopersPwCAdvisoryhelpsclientsbuildtheirnextcompetitiveadvantage.Youwillhelpourclientsimprovebusinessprocesses,transformorganizationsandimplementtechnologies.StudentsmustdirectlyapplytooneofthefollowingpracticeHealthPublicProducts&ServicesInterviewRoundInterview2Interviews(~45min.

Round2behavioral/fitinterviews1caseinterviewUniqueInterviewFirst/SecondRoundBehavioralInterviews-PwCputsextraemphasisonyourbackgroundandfitwithPwC.Yourfirstinterviewwillalsoincludeadiscussionofwhichvertical(above)UniqueInterviewCaseInterview-Thecaseinterviewisalittledifferentthanotherfirms.Thecaseisconversationalasthecandidateandinterviewerdiscussabusinesssituation.Candidatesmaybegivenacasetoprepare1-2daysinadvance(usually4-5pages).Ontheinterviewday,candidatesaregivenquestionsonthecaseandareaskedtoprepareaslidedeckpresentationinanhourbeforediscussingitwiththeinterviewer.CareerSummerSeniorAssociate(BusinessSchoolCareerSeniorAssociate(AfterBusinessZSOursingularfocusoverour30yearshasbeentohelpglobalcompaniesmaximizetheirsalesandmarketingorganizations’performanceandresults.StudentsmustdirectlyapplyforoneoftwoBusinessConsultant-serveonprojectteamsthatdeliverhigh-qualitymarketingandsalesstrategyprojectstoclients.Inparticular,BusinessConsultantspossessqualitativeresearchandunstructuredproblemsolvingskillsand/oradvancedquantitativeanalyticsskillsBusinessOperationsConsultant-manageoverallprojectsandclientengagements.supportourclients'salesandmarketingactivitiesandensureproductivityandprofitabilityintheirbusinessoperations.Interview

Round2Interviews(~45min.11

Round1fit/behavioral1case1presentationUniqueInterviewCaseFocus-AlthoughZSrigorouslytestsacandidate’spublicmathskillsandabilitytosynthesize,donotneglectthequalitativecomponent.InrecentyearsZShasbeguntofocusonUniqueInterviewPresentationCase-Candidatesareprovidedinformationandmustsynthesizeapresentationtopanelofinterviewers.ZSprovidesalaptoptocreatetheslides.ExpecttobechallengedandRounds-ZSholdsitssecondroundinterviewswithinafewdaysofitsfirstround.shouldplanaccordinglytominimizepotentialCareerInterviewers-Partnersandseniormanagersconductthefirstroundinterviewson-campus,Career(BusinessSchool);BusinessConsultantTheCaseDifficulty(1-Industry/1PurplePill442BuyLow,Sell25353Oil&4HeavyThings565OrangeYoga646SurfboardWaxin227118TheEverything549Gee&Gee’sHouseof36Going454155Ferry3443Steel5221Moneyin23Public66Quality42Med.44SoFreshandSo4Kid34Texas53Oil&InsuranceCo.–BusinessCASE1–PURPLEPILLCompetitionCase1:PurplePill DeloitteCaseCompetitionYourclientisamultinationalpharmaceuticalandbiologicscompany.Theclienthasaportfolioofdrugsformajordiseaseareas,includingcancer,cardiovascular,andgastrointestinaldiseases,tonameafew.Theclienthasexperiencedadeclineinrevenueoverthelast18months,andisfearfuloffurtherdeclines,especiallygiventhatitsmostcommerciallysuccessfuldrug,whichtreatsacidrefluxdisease,willbegoingoffofpatentinMayofnextyear.Whataretheareastheyshouldlookintotochangethecourseofthistrend?Whyconsultingnow(afterxxyearsinxxTellmeoneindustrythatyou’reinterestedinrightnow.Whatarethetrendsoropportunitiesforkeyplayersinthisindustry?(canalsobeafunction,areaofbusiness,etc.)ThecandidateshouldcomeupwithaMECEframeworkthatcoversthefollowingareas:productmix,industrytrends,Thecandidateshouldidentifythatthisisarevenueproblem,giventheAgoodcandidatewillidentifythepatentexpirationimpactonrevenuesAgoodcandidatemayalsodiscusssalesbyregion(sinceitisaglobalcompany)inadditiontoproductAdditionalinformationshouldbeprovideduponExhibit1Revenuesbydiseasearea(ProductExhibitCompanyRevenuesbyDiseaseArea(in&Oncology%2013%ChgRed-Purple-BlueGreen-Whatarethelargestdriversofrevenuedeclineoverthelastyear?(ProvideExhibit1ifnotalreadyGivethecandidate20-30secondstoreviewthechart.Then,promptthemtostartsharingE.g.-Overallbusinessisdeclining~10%,drivenbyneuroscience,andcardiovascular&E.g.-Respiratoryisdrivinggrowth,drivenbythebluepill;hasalsogainedmarketAsk:Whichdrugislargestsourceofdollardeclinesfrom2013to2012?HowmuchistheoRedPill:22%x$21B=$4.6B/.92=$5B→4.6B–5.0B=$0.4B,or$400MoPurplePill:15%x$21B=$3.15B/.98=$3.21B→3.21-3.15=$0.06B,or$60MoGreenPill:7%x$21B=$1.5B/.6=$2.5B→2.5B–1.5B=$1BBrainstorming–Askcandidate:WhataresomeissuesthatcouldhavecausedthisAcceptableanswers:lowerprice,lowertabletsalesvolume,genericscomingonmarket,regulatoryrestrictions,outofstocks,currencyandgeographictrendsGoodcandidateswillconnectgenericscomingonmarkettoreducedmarketshareinExhibitAdditionalinformationtobeprovidedasInadditiontootherissues,thedeclineisattributedtotheintroductionofgenericsintheUSandotherestablishedmarkets.It’sfairtoattribute50%ofthedeclinetogenerics.TheadditionaldeclineswererelatedtoMedicaidliabilityandotherinventoryrelatedGiventheseissueswiththeGreenPill,theclientwouldlikeyourhelpindeterminingspecificallyhowtomaintainasmuchrevenueaspossiblefromthePurplePillwhenitgoesoffpatentnextyear.Ithasseveraloptionsthatitwouldlikeforyoutoevaluate.DoLicensethebrandtoanoverthecounter(OTC)manufacturerfor$250Mone-timeDirect-to-patientcampaignonlineandpay3rdpartyforAdditionalfactsandWithnoaction,GreenPilllost20%ofannualvolumeinthepast(usethisCurrentrevenueperpillis$1atan80%margin–(remember,totalrevenue10%ofcurrentPurplePillvolumewilltransfertoOTCbrand–wegetonlyonetimeDirecttopatientwillretain25%thatwould’vebeenlosttogenericbutthemarginwouldbereducedtoOver2/3ofthePurplePill’srevenuecomesfromtheAsk:Whatwouldyoudoandwhy?Whatareyourassumptionsonincrementalorretainedvolumeineachscenario?TheheadofPurplePillbrandneedstomakeadecisionwouldlikeforustoshareourrecommendationtoday.Pleaseshareyouranalysisandrecommendation.Donothing:$3.2Bx.80retained(20%lost)=$2.5Brevenuex80%margin=$2BgrossLicensefor$250M:=$2B+$250M=$2.25B–(10%x$3.2Bx80%)=$2.25B-$0.256B=$1.994B(Thisisareductionof$60Kcomparedtodoingnothing)Directtopatientprogram-=$2B+(20%lostx25%ofthisretainedx$3.2Bx50%margin)=$2B+$.08B=Themathisimportanthere,butmoreimportantisthatthecandidatecanthinkthroughshort-termandlongtermscenarios.Forexample,licensingmaylooklikebreakeveninyearoneandretainthebrand,butitisalong-termlossasthereisnoadditionalrevenue(the$250B)inyear2.Youwouldwanttheretobelittletonocannibalization.Also,ifthedirecttopatientprogramcannibalizesmoreofyourexisting80%marginbusiness,youwilllosemoneyifyoudon’tincreasetheprice.ThiscasegaugesthecandidatescomfortwithmakingassumptionsandmakingstrategicPerformanceCompletesallGuidestheconversationandprobesforadditionalfactsanddatawithoutIsabletothinkcreativelyanddrivetheprocessWalkstheinterviewerthroughtheProvidesnextstepsfortheIscomfortableprovidingownassumptionsaroundcannibalizationandpatientBringsupthepossibilityofamergerwithanotherdrugproducerorotheroutoftheboxProvidesfinancialsformultipleyearsandhasaforwardthinking Case CaseCasestart Logical

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Framework Framework Case Caseend Caseend BusinessBreadth&depthacrossmultiple

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12341234Qualityofstar12341Qualityofstar1234123412341234middle50%,4=75th-90thpercentile,5=TopCASE2–BUYLOW,SELLYourclientisarichfinancierwhohasdecidedrecentlytothecapitalmarketsasamarketmaker.Marketmakersmake%commissionsoffoftransactionsincapitalmarkets,andarenecessarytoprovideliquidityandorderlymarketaction.Theyearis2014andhebelievesthatwehaverecoveredlongenoughfromthefinancialcollapsetowarrantaninvestmentinthissector.Therearemultipleopportunitiesinthefinancialmarketandyouhavebeenhiredtoadvisehimonhowandwheretoinvesthismoney.Heisconsideringentryintooneoffourmarkets:Commodities,Options,Equities,andFixedIncome.Whatisonesituationyouhavebeeninwhereyouhadtoleadupwards(bealeaderwhenyoudidn’thavetheHowwouldyoudealwithateamenvironmentwhereyoudidnotfeelThiscaseisdesignedtoseeifacandidatecanperformananalysisofmarketsegmentsanddetermineaprofitableentrypointintoanestablishedmarket.Thisisatwo-partanalysis.Facts(tobeprovidedifAmounttobeinvested:upto$2.5Clienthasexperienceinfinance,butnotinInvestmenttobefocusedinsideofUnitedGoalistohaveapositiveNPVinvestment.Limitedtoonlyoneinvestment(hefeelshisattentioncanonlybefocusedononeopportunityataSizeandmarketsharesoffourmarketstobeprovideduponMarketmakersmakeafixed%commissiononeachtransaction,somorevolumeandbigger$valueoftransactionsisusuallybetter.Thesemarketseachintrinsicallyhavedifferentcommissionrates(whichwedon’thave).CandidateshouldbehandedExhibit1andExhibit2afterhehaswalkedthroughthestructureoftheproblemandfinishedaskingquestions.Heshouldperformananalysisofmarketattractivenesswiththisdata.ExhibitTotalassetsinmarket Fixed

Numberoftransactions0 FixedExhibit*Note:Player2intheEquitiesmarketrecentlyhadaroguetraderincidentandislookingtoexitthroughassetExhibit1:Candidateshouldbeabletoconcludefromthetwochartsthattotalassetvalueandnumberoftransactionssuggestoptionsandcommoditiesarethemostattractivemarketstoenter.However,noneofthesechartsshowactualprofitearnedinthefourmarkets,somoreinformationisnecessary(whatarethelevelsofcommissions?).Exhibit2:Fromthisexhibit,commoditiesandequitiesseemthemostattractiveforanentrant,sincetherearefewermajorplayersincommoditiesandthereisamajorplayerexitinequities.Again,actualprofitfromentryisnotapparent.Ouranalystshavedonesomeresearchonthecostsofentryandexpectedprofitsfromenteringthesemarkets.PleaselookattheiranalysisinExhibit3andtellmewhatyoucanextractfromthesefindings.CandidateshouldperformanNPVanalysisbasedonthedataExhibitFixedExpectedRent&OperatingInterestEarningsbefore2Net8Expected*Costofcapital=5%,allincomeassumedtolastforeverandbegininyear1,depreciationconstantExhibit3GuidanceforFixedExpectedRent&Earningsbefore2Net8-*Costofcapital=5%,allincomeassumedtolastforeverandbegininyear1,depreciationconstantMarketInitialanalysisshouldshowcommoditiesandoptionstobemostattractiveintermsofmarketsize,withcommoditiesasthemostattractiveduetothelackofmajorplayerstoinhibitentry.BothOptionsandFixedIncomeseemtobemarketswhereafewplayersdominate,makingpotentialentryverydifficult.Equitiesisinterestingbecauseofpotentialforcheapentryduetotheliquidationofamajorplayer’sassets,sofurtheranalysisisnecessaryBasedonNPVanalysis,equitiesaretheinvestmenttomakeduetothecheapentrycost.Thiscarriesanaddedbenefitofleaving$1billionfreeforotheruses.Candidatecanincludethisexcesssumincalculation,butthatisn’tnecessary.Recommendationshouldbetoinvestinequities.Askcandidatetogivearecommendationtoatheactualinvestor(“heisaboutcomeintotheroom,”Nextstepsmayinclude:ascertainprocessforbuyingliquidatedassets,determineifthereareotherbuyers,lookatotherpassiveinvestmentsforexcessfunds.Potentialrisks:regulatorydelays,volumeofequitiesmarketislow,marketatalltimehighsandcrashcouldmeanfutureprofitprojectionsareoffNextstepsandrisksareopenendedanddon’thavetobethesesuggestedoptions.Makesurecandidatehasthoughtoutlogicalpointsandcanexplainhisreasoning.PerformanceInitialproblemDistinctive-Well-structuredproblemsolvingthatisMECEandcoversmajorfactorstobeconsidered.Thisisveryopen-endedsothereareno“musts”,butcandidateshouldquicklyrealizethisisaninvestment/marketentryproblemandapproachitasVerystrong-Structuredanalysisthatcoversmanyaspects,butmaynotbefullyMECE.Candidatemightneedsomeguidancetoaskforrightinformation.Strong-Analysiscoversmanyfactorsandisthoughtful.Needssomeguidancetodirectcandidatetowardsdataandcruxofproblem.Needsimprovement-Analysisisfragmented.CandidateunabletostructureproblemandneedsalotofguidancetoExhibit1&2-marketDistinctive-Candidatequicklygraspswhatthethreechartsaretryingtosayandcomestoconclusionsquickly.Realizesthatthereissomepossiblyconflictinginformationandasksfordata(potentiallyaskstodoNPV).Verystrong-Candidatecomestosolidconclusionsfromthechartsandisreadytoproceed.Mayneedpromptingbeforenextstep.Strong-Candidatecanhandlemultipletablesbutmaystruggletofullyrealizetheconflictsembeddedinthedata.Mighttrytoendcasehere.Needssomepromptingtoproceed.Needsimprovement-Analysisisfragmented.Candidatecannothandlethemultiplechartsandneedsalotofguidancetoproceed.Exhibit3-Distinctive-CandidateunderstandshowtodoanNPVandperformscalculationsquicklyandaccurately.ExceptionalifcandidateunderstandsmostofdataissuperfluousandcalculatesfromOperatingProfitandDepreciationnumbersonly.Verystrong-Candidateperformscalculationsinatimelymanner.Maymakesomemistakes.Strong-Candidatetakesabitoftimetoperformcalculations.MayneedsomeguidanceonwheretoNeedsimprovement-CandidatedoesnotunderstandwhatanNPVis.Maytryabreakevenanalysisorotherkindofcalculation.Interviewerneedstocutcalculationsshorttogettorecommendation.Distinctive-CandidateconciselygivesaccuraterecommendationandcoverslogicalnextstepsandreasonableVerystrong-Candidategivesaccuraterecommendationwithsomenextstepsandrisks.Maybealittlelong-Strong-Candidategivesarecommendationbutmayforgetnextstepsandrisks.MayneedsomeguidanceonwheretoNeedsimprovement-Candidateisn’tstructuredandstrugglestogivea Case CaseCasestart Logical

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Framework Framework Case Caseend Caseend BusinessBreadth&depthacrossmultiple

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12341234Qualityofstar12341Qualityofstar1234123412341234middle50%,4=75th-90thpercentile,5=TopCASE3–OKLAHOMAGASCOMPANY(~Presentday)TheOklahomaGasCompany(OGC)isamedium-sizedprivatecompanythathasarichhistoryofdrillingandproducingnaturalgaswellsinOklahoma.Theypossessadiverse,andtheybelievevaluable,setoflandassetswheremorewellscouldbedrilled.Thecompanyiswellcapitalized,butprofitshavebeenfallingthelastfewyearsandareprojectedtobenegativenextyear.Oneofthekeydriversinthedropinprofitabilityisthepriceofnaturalgas,whichhasdroppedsubstantially,thanksinparttocompanieslikeOGC,thathaveperfectedunconventionaldrillingtechniquesandhavesubsequentlyoversuppliedtheNorthAmericannaturalgasmarket.Naturalgaspricesarecurrentlyatafiveyearlow.AlargercompetitorhasapproachedmanagementaboutacquiringOCGfor$250M.Managementwouldlikeyourhelpinassessingtheofferaswellasidentifyingalternatestrategies.Ifyoucouldonlydooneoftheexperiencesonyourresumeover,whichwoulditbeandIfyoucouldchangeoneexperienceonyourresume,whichwoulditbeandTheintervieweewilllikelydwellontheacquisitionoffer.Guidethemawayfromthis,asitwillonlyserveasthebaselineforoptionselection.Theobjectiveofthecaseisfortheintervieweetoevaluateviableoptionsbeforerecommendingacourseofaction.Ideallythecandidatecreatesabasicprofitabilityframework,andfocusesonwhatOPTIONSthecompanyPresentValuationofOCGisnotreadilyavailable.TelltheintervieweethatmoredataonthetopicwillbecomeavailableCostshaveremainedWhileNaturalGasdemandfluctuatesseasonally,theannualdemandhasbeenstableoverthepastfewLandAssets=OGCowns100%ofthemineralrightsoftheirWhileregulationshavechanged,andmaycontinuetochange,theyhaveyettohavealargeimpactonOGC’sOGChasnotdrilledoilwellsinthepast,butwouldlikelyhavethecompetencytodosointheNaturalgasandoilpricesarevolatileandoutofthecontrolofOGC.FuturepricesaredifficulttoOnlyoperatedinNote:Thiscaseismeanttobeadaptable.TheinterviewercanmakeitmoreorlessdifficultatanytimebasedontheirPotentialOptionsforExploreoilwells(Obvious-ifcandidateisawareofbo