parthenon_mock_case.ppt

1、Associate Mock Case Interview,Dartmouth College,October 8, 2004,Agenda,Case Preparation Case Assessment Case Execution,Case PreparationCase Question: Fenway Park T-Shirt Vendor,Case Question Assess whether or not a Red Sox t-shirt vending cart operated outside of Bostons Fenway Park can be a profita

2、ble business,Background Facts Fenway Park is home to the Boston Red Sox, a major league baseball team Many vendors operate single-cart businesses (e.g., hotdog carts, ice cream carts, t-shirt carts,etc) immediately outside ballpark grounds for pre- and post-game sales Average game attendance:30,000

3、Average game duration:5 hours (includes pre- and post-game) 160 games per season:50% home, 50% away Average ticket price:$40 per person Business intention is to operate a single vendor cart outside of Fenway Park on Yawkey Way, where people come to enjoy the festive pre-game atmosphere,Case Preparat

4、ionBefore You Start,Take a deep breath and relax Write down your thoughts and other notes (you need to bring pen/pencil and paper!) Identify a framework that will help you structure the problem Think before you talk Start your case with a thought process explain briefly how you intend to approach th

5、e problem Throughout the case ask probing questions and/or state your assumptions Be aware of time constraints and be prepared to summarize your findings Smile ,Case PreparationThoughts & Notes,Fenway Park is it profitable to operate a t-shirt cart? What do I know? Attendance 30,000 80 home games pe

6、r year T-shirts sell for between $10 - $25,Case AssessmentHow Did I Do?,Case AssessmentWrap-Up,Case Tips Bring a pen/pencil and paper Listen carefully to case details and general interview questions Respond in a thoughtful and structured manner (take your time!) Remember that your thought-process is

7、 usually more telling than your answer PRACTICE, PRACTICE, PRACTICE! General Interview Tips Be on-time and dressed appropriately Know your resume and academic/work experience background Answer interview questions concisely Be able to state clearly and concisely why you want to work in consulting Be

8、enthusiastic Be yourself,Case ExecutionThe Framework,How many t-shirts can you sell per game? What factors affect sales?,How much can you charge for t-shirts?,What are my costs?,Use a framework that will help you and your interviewer understand your thought process,M I N U S,Case ExecutionCost Analy

9、sis,How many t-shirts can you sell per game?,How much can you charge for t-shirts?,What are my costs? What costs are start-up, (e.g., one-time only)? What costs are recurring? How often? (Annual, monthly, periodic?),Start with something straight-forward (low-hanging fruit) in this case, the cost com

10、ponent is easiest to estimate,Case ExecutionCost Analysis,How many t-shirtscan you sell pergame?,How much canyou charge for t-shirts?,Cart Purchase $5,000 (one-time) or Cart Lease $1,000 (semi-annual) Operators License $1,000 (annual),$6,000 Total,Case ExecutionRevenue Analysis,How many t-shirts can

11、 you sell per game?,How much can you charge for t-shirts?,Cart Purchase $5,000 (one-time) or Cart Lease $1,000 (semi-annual) Operators License $1,000 (annual),$6,000 Total,Case ExecutionQuantity Estimation,Case ExecutionSanity Check,The Sanity Check: Does 50 t-shirts sold per-game sound right? There

12、 are 1,500 t-shirts sold and I am selling 50 shirts, so that implies that there are 30 t-shirt vendors at the park. Is that a reasonable number? If we really only sell t-shirts for 2 pre-game hours and 1 post-game hour, we effectively have 180 “selling minutes” OR we sell 1 t-shirt every 3-4 minutes

13、 Can one person handle a t-shirt sales transaction every 3 minutes?,Case ExecutionRevenue Analysis,50 t-shirts sold per game,$15 per t-shirt,Cart Purchase $5,000 (one-time) or Cart Lease $1,000 (semi-annual) Operators License $1,000 (annual),$6,000 Total,Case ExecutionRoll-It-Up,50 t-shirts sold per

14、 game,$15 per t-shirt,Now that youve calculated the various components of the profit tree, roll-it-up to an annual level and summarize,$750 per game revenue,$5,000 start-up costs (cart purchase) $1,000 annual operators license,$50 labor wages per game $2 cost per t-shirt x 50 shirts = $100,$6,000 annual costs,$150 per game costs,Case ExecutionRoll-It-Up,Sanity check your findings once again and