ItgivesmeandtheentireteamofConsultingClubgreatpleasuretointroducetheofficialFMSconsultingcasebook
oftheacademicyear2020-21.
Westronglybelievethiscasebookwillbeinstrumentalinnotonlyaidingyourpreparationforconsultingcase
interviewsbutalsoprovideanapproachfordevelopingananalyticalmindsetandtheuniversalapplicabilityofthe
casebookwillhelpindividualsformulateandimplementstrategyintheirprofessionalfunctions.
Thiseditionisupdatedwithdetailedsectoroverviews,casesfrommostrecentinterviewprocessesandvarious
othertoolsthatwillensureanallroundprep.Allyouneedtodonowisfollowthebookintheprescribedmannerto
reapitsbenefits.
Wehopethiscasebookhelpsyourealizenotonlyyourdreamjobinconsultingbutratherhelpsyoubuildalong
andsuccessfulcareerinthedomainofmanagementconsulting.GoodLuck!
Enjoy the process of preparation and let’s crack the case!
Tushar Singhal
From the Desk of President
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Contents
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Contents
Part A -About Consulting
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What is Consulting?
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What is it? How is it helpful?
Top Players Why is it so sought after?
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Roles/Hierarchy of a Consulting Firm
Partner/Director
Principal/Sr. Manager
Manager/Project Leader
Senior Consultant
Consultant/Associate
Analyst
How to Get into Consulting From Here?
Resume & behavioural preparation
Use next 3 months to improve your skills
Guesstimates
HR Answers
Case Interview
Prepare SmartPrepare Hard
Communication
General Awareness
Business Acumen
Crack the interview
Prepare for the interview process
Part B –Basic Concepts
3C’s
Company
CompetitionCustomer
Industry
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Government
Porter’s Five Forces
Industry
Rivalry
Threat of New
Entrants (or
Barriers to Entry)
Threat of
Substitutes
Bargaining Power of
Suppliers
Bargaining Power
of Buyers
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BCG Matrix
Value Chain/Process Mapping
Value Chain/Process Mapping
R&D
Raw
Material
Processing
Storage &
Transportation
Distribution Marketing
Customer
Service
Equipment
Human
Capital
Cost of
Finance
Cost of RM
Contracts/Bulk
Deals
Quantity Used
Machinery
Factory Rent
Labour Hours
Technology
Capacity
Utilization
Packaging
Transport for
Warehouse
Storage (Rent,
Labour, Inventory)
Transport to
Customer
Sales Channel
Sales Force
Training
Marketing
Channel
Sales Force
Repairs
Spare Parts
Returns
Service
Contracts
Ansoff Matrix
Market Penetration Market Development
DiversificationProduct Development
Product
Market
Existing
NewExisting
New
Ansoff Matrix Example: Coca Cola
The Company Environment
Company
Macro Environment
Industry
PESTEL
Basic of Economics
Supply-Demand Price Elasticities
Price Discrimination
Market Characteristics
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First Degree Second Degree Third Degree
4 Types of Market Structure
Perfect
Competition
MonopolyOligopolyMonopolistic
Competition
Basics of Finance
Profit & Loss Statement
Balance Sheet Terms
Ratios
Time Value of Money
Discounted Cash Flow
Annuity
Perpetuity
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Capital Budgeting Trading Multiples
Transaction Multiples
Essential Useful Optional
Introduction to Guesstimates
What is evaluated through
Guesstimates?
Ability to think on
your feet
Approach &
Structure
Quantitative
Skills
What is necessary to solve a good
Guesstimate?
Logical Thinking
Communication &
Presentation
Top Down and Bottom Up
Approach
Supply Side and Demand Side
Approach
Guesstimates Do’s & Don’ts
Ideal Flow
Confirm Objective
Think logically and come up with possible set of
approaches
Explain the best approach & confirm if you should go
ahead with it
State your assumptions first hand
Make logical assumptions and always confirm them with
Interviewer
Keep communicating & asking the interviewer for buy-ins
Calculate your answer. Be ready for a conversation around
error estimate, other approaches etc.
Do’s Don’ts
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Lay down structure neatly on paper and solve it step by step
If possible, reconfirm & triangulate your answer with a
ballpark estimate from another approach
Top Down & Bottom Up Approach
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Top down approach Bottom up approach
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Identify the smallest replicable block
Estimate for a single identified block
Scale up!
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Identify a Starting
Universe
Segment A Segment B
Segment
A1
Segment
A3
Segment
A2
Segment
A3
Segment
A2
Case Interview Process
Flow of a Consulting Interview
General
Discussion
Behavioural
Questions
Guesstimate Cases Wrap up
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Interviewer Expectations
Its not about being right. Its about being right in an client friendlyway.
How you are rightmatters a lot.
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P2P Case Practice
Peer to Peer Case Practice
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For Interviewer For Interviewee
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Approaching a Case
Repeat the question and clarify the objectives
Think and understand what more you need to know
Set context to the case by asking questions. Be very careful about what you
are asking and why.
Take time to think and lay down an structure for analysis
Involve interviewer in your analysis. Ask relevant question to process down
your structure.
Make good and relevant suggestions which are specific to the case. Always
have a rationale ready for Why?
Summarize the case properly. Be brief yet effective.
Pricing Strategy
Set context
Pricing Factors
Product Competitors CustomerCosting Substitutes
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Pricing Options
Cost Based PricingCompetitive Pricing Price based Costing
Understand the Question and Clarify the Objectives
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GoTo Market Strategy/New Product Launch
Idea
Be Selective
Product
Development
Segmentation
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Distribution
Strategy
Communication
Strategy
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Understand the Question and Clarify the Objectives
Set Context
Merger & Acquisitions
Understand the Question and Clarify the Objectives
Set context
Due Diligence
Implementation
Exit Strategies
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Deal Rationale Business Benefits
Deal Price
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Potential Risks
Case Framework Cheat Sheet-When Nothing Works
Set context
Value Chain
Process Flow / Customer Journey
Example: E-Commerce Discovery and Ordering Process Map
Look for Bottlenecks
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Toll Plaza
Estimate daily revenues of Delhi-Gurgaon toll plaza
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0.5
1
Traffic Distribution
Midnight
Noon
Time
Capacity
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TOI Revenues
Estimate daily revenues of Times of India
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Smart Watches
Estimate the market size of Smart Watches in India
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0.70*130cr = 91cr 0.30*130cr = 39cr
0.30*91cr = 27.3cr 0.10*91cr = 9.1cr 0.30*39cr = 11.7cr 0.10*39cr = 3.9cr
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If a UFO sucked all the toothbrushes in India, how many would it have?
Toothbrushes
E-Rickshaw
Revenue of a typical e-rickshaw driver per day
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Smokers in India
Estimate the number of Smokers in India
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Cheese Burst Pizzas
Estimate the number of cheese bursts pizzas sold by Dominos daily
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Petrol Pumps
Estimate the number of Petrol Pumps in Delhi (Approach 1)
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Petrol Pumps
Estimate the number of Petrol Pumps in India (Approach 2)
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15 crore users
10 km/l mileage
4 hours
100%
10 hours
50%
Petrol Supplied per pump = [AvgUsage Ratio = (1*4+0.5*10)/14 =
0.64]*[Capacity = 16,800 l] = 10,800 litre
Demand of Petrol = [Avgdistance = 30 km] *
[25cr/70 km/l + 15cr/10 km/l] = 55.7 crore litre
25 crore users
70 km/l mileage
Avgtime to fill 15 l petrol =
3 min
Avgbooths = 4
Capacity = 15*4*(4*60/3 =
16800 l
Petrol Pumps
Estimate the number of Petrol Pumps in India (Approach 3)
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TT Balls
Estimate the number of TT balls used in a day in Delhi
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TT Balls
Estimate the number of TT balls used in a day in Delhi
White Shirts in Delhi
Estimate the number of people wearing a white shirt (WS) in Delhi on any particular day.
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Delhi Schools
Estimate the number of Schools in Delhi
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Departing Flights
Estimate number of flights departing from Delhi Airport in a Day
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People you met
Estimate the number of people you interacted with over the last year
Tractors in India
Estimate the number of tractors in India
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Tractors in India
Estimate the number of tractors in India
EV Market Size
Estimate the market size of EV in India
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DTC Bus
Estimate the number of DTC buses in Delhi
Flat Screen Televisions
Estimate the revenue of flat screen televisions sold in Australia in the past 12 months
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Amazon India
Guesstimate the number of daily order of Amazon India
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Daily revenue of Airport
Estimate the daily revenue of an airport
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Daily Revenue of 24x7 Retail Store Chain
Estimate the daily revenue of 24x7 chain of Retail Store
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₹
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Part G –Practice Cases
Practice Cases: Table of Contents
Sr. No Case Type Page #
1 Orchid Farmer Profitability 85
2 Retail Stores Profitability 87
3 Steel Manufacturer Profitability 89
4 2024 Olympics Rights Profitability 91
5 Automobile Company Sales Revenues 93
6 Auto Dealership Revenues 95
7 Kids TV Channel Revenues 97
8 Shopping Mall Revenues 99
9 Food Manufacturer CaseCost Reduction 101
10 IT Services Cost Reduction 103
11 Quick Service RestaurantCost Reduction 105
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Steel Manufacture High
Costs
Cost Reduction 107
Sr. No Case Type Page #
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Women Apparel Retail
Chain
Cost Reduction 109
14 Golf Course Pricing 111
15 Hepatitis B Drug Pricing 113
16 Paint Manufacturer Pricing 115
17 Ride Hailing Helicopter Pricing 117
18 5G launch in India Pricing 119
19 Home Automation Market Entry 121
20 Home Insurance Market Entry 123
21 Gold Mine in MongoliaMarket Entry 125
22 Skin Care ManufacturerMarket Entry 127
23 Smart Phone Market Market Entry 129
24 South African PE FirmMarket Entry 131
Practice Cases: Table of Contents
Sr. No Case Type Page #
25 Apparel Top line BusinessCost Reduction 133
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Appliance Distribution
Company
Growth 135
27 Gift Card Firm Growth 137
28 Light Bulb Company
Customer
Satisfaction
139
29 Bottling Plant
Customer
Satisfaction
141
30 Telecom Provider
Customer
Satisfaction
143
31 Airline Acquisition M&A 145
32 PE Cosmetics Chain M&A 147
33 FMS Students Falling IllUnconventional 149
34 Logistics EfficiencyUnconventional 151
35 Increase in Road AccidentsUnconventional 153
36 Swedish Government Unconventional 156
The Team
ThiscasebookiscuratedandcompiledbytheConsultingClubMembers(2020-21):
TUSHAR SINGHAL ABHAY K.MISHRA NARESH TETARWAL VIKAS KUMARNAMAN GOYAL
President Executive MemberExecutive MemberExecutive Member Executive Member
NIKITA CHAWLA
Executive Member
Consulting Club Members (2019-20)
Himanshu Makhija–President Abhay Sharma –Associate Member
Arunima Goyal –Associate Member
Sahil Khurana -Associate Member
AmbujPurwar–Executive Member
Kriti Bhatia -Executive Member
Manoj Boda-Executive Member
SashwatGupta -Executive Member
Follow Us On
Followuson: [email protected]
Contact us:
The Consulting Club
Faculty of Management Studies
Professor N.D. Kapoor Marg
Delhi University –110007
www.fms.edu