crack the case

Noble Line Travel

C

Pack: 006 page 28 of 30

Candidate Review Sheets

M – Mine for the Answer

Math Zone (make estimates and round your numbers)

Calculate Revenue

Revenue = transactions x average ticket price x commission rate

Noble Line						Hawke
Travel	Excursions		Globe Travel		Destinations	Shields
$75MM	$144MM		$88MM		$135MM	$99MM
Calculate Profit
$13.5MM	$68MM		$47MM		$24MM	$19MM

Profit = Total revenue – Total costs (cost x volume)

Interpret the Numbers

•Excursions and Destinations have high revenue but for different reasons. Excursions had above average volume, the highest commission rate and above average ticket price. Destinations’ success is all about volume.

•So Excursions’ high profit makes some sense. But what about Globe Travel? What makes it so profitable? Basically, it is the ticket price. With an average ticket price of $800, almost double NLT’s, and costs in line with the others, their additional commission goes to the bottom line.

•Since there is a high correlation between high profit and high ticket price, looking for ways to increase the ticket price seems like a good idea. It seems that getting the international flights is the way to go since ticket prices are naturally higher and commission rates by country of origin vary (see Market Focus by Competitors handout).

•As for costs, the narrow spread between the best company and the worst company indicates that there probably is not a lot of opportunity.

Try Some New Scenarios

•Increasing ticket price by 20% for NLT would result in $15M of additional profit. $500 x 1.2 = $600 (new average ticket price) x 10% = $60 revenue - $41 cost = $19 profit per ticket or $28.5 M total.

Self Check		Data oriented		Quick to interpret		Collaborative style
		Facile with numbers		Questions are specific		Explains gut check
		Focused, not flustered		Nimble thinker		Updates hypothesis
Notes:

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Noble Line Travel

C

Pack: 006 page 29 of 30

Candidate Review Sheets

A Logical Flow Using the FRAME Method™ A Logical Flow Using the FRAME Method™

E – End the Case

What was your final conclusion? This should come within five minutes of the end of the interview so that you have time to discuss it.

As you conclude, listen to your answer and check and see if you are using data ($, numbers and percentages). Showing that you learned some facts during the case and that you are integrating them into your thinking will show-off your ability to be data driven. Keeping your opinions and recommendations fact driven will assure the interviewer that you are willing to learn and not just trust your gut.

SuggestedSuggestedAnswers,Answers,DiagramsDiagramsandandBehaviorsBehaviors

Good Ending: “ Noble Line Travel can increase its profit by focusing on revenue rather than cost reduction, since costs are already in line with competitors’. To increase revenue, international bookings will drive increases in our commission rate and our average ticket price. A 20% increase in revenue will result in $15M being added to the bottom line. I recommend that we quickly look into what clients we need to pursue to increase our number of international bookings”.

(Good logic and pretty concise. A great data driven example of how expansion can help the top line.)

OK Ending: “Noble Line Travel is doing poorly compared to competitors in terms of bottom line profit. We’re at the bottom compared to the four I reviewed. Two players, Excursions and Globe Travel, are doing much be. I think what sets them apart is their focus on international travel. We need to look into how international bookings could expand our business. I am concerned that those efforts will drive up our costs, so we’ll need to look into that too.”

(Gimme some numbers! You hit all the right categories, but I feel like everything is “we’ll look into it tomorrow.” You had plenty of data to get specific.)

Poor Ending: “Reducing costs has to be our top priority. It is the easiest to do as we are dealing with internal issues, and we have the worst per-ticket cost in the industry. After we get that under control we should begin to look at top line issues.”

(Have you ever spent time doing a cost reduction exercise in a company? Basically it’s a lot of work that results in a long list of challenges. Besides, we’re only going to save $4-5 per ticket. The real money is in revenue increases. Your answer is just plain wrong.)

Self Check		Several clear points		Well integrated		Concise
		Persuasive		Includes next steps		Credible

Notes:

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Noble Line Travel

C

Candidate Self Assessment

Pack: 006 page 30 of 30

Planning & Logic					Excellent					Poor
					1	2	3	4	5	6
1.				I had a plan to solve this case.
					Very clear			Fuzzy		Not clear at all
2.				My plan was MECE.	1	2	3	4	5	6
			(Mutually exclusive, collectively exhaustive)		No overlaps				Several overlaps
					and gaps				and full of gaps
3.				I trusted my plan and referred to it often.	1	2	3	4	5	6
					Used it,					I basically
					referred to it often					forgot about it
Communication & Composure
4.				I was calm and collected.	1	2	3	4	5	6
					Calm, confident			Off and on		Sweaty, shaky
					and client ready		nervousness			mess
5.				I carried the discussion well.	1	2	3	4	5	6
					Just the right		Occasionally		I didn’t hold the
					amount of back			awkward		interviewer’s
					and forth					attention
6.				I drove the case.	1	2	3	4	5	6
					Clearly in control,			I took control		Adrift at sea
					I took the case to			sometimes
					a conclusion

Analytics

7. I analyzed the data well on a piece by piece basis.

1	2	3	4	5	6
Quick to insights,			Slow on the	Lots of mistakes,
no math errors			uptake, some		I didn’t get the
			math mistakes		insights

8. I integrated data well and reached insights (saw the big picture).

1	2	3	4	5	6
Quick to “connect		I missed some		I missed all the
the dots” and see		connections		linkages between
how it all ties					the data

Recommendation

9. My final recommendation was to the point and data driven.

1	2	3	4	5	6
Used facts and					I tried to solve
data to back up					the case from
my thoughts					my gut

10. I was persuasive in making my final points.

1	2	3	4	5	6
Persuasive points,					I couldn’t even
passion and a				convince myself,
bottom-line tone					zero passion

Total Score:

(10-60)

Do this self assessment before asking the interviewer for feedback. How did your numeric score compare to the one the interviewer gave you? What is your top priority going forward?

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Copyright © 2004 Turtle Hare Media

Always Fresh

Determined to conquer the world with the power of deodorant, the Always Fresh team has set their sights on going abroad. Help them navigate the international intricacies of personal hygiene. Will success smell as sweet outside of North America?

Case Pack: 007

Difficulty (1-5):

Crack the Case:

How to Conquer Your Case Interviews

consultingcase.com

	Purchase additional cases and the book Crack the Case: How to Conquer Your Case Interviews at www.consultingcase.com.	007 - Always Fresh 1
	Copyright © 2004 Turtle Hare Media

Always Fresh

Case Pack: 007

Case Answers and Interviewer Notes

Candidates should not read through this pack until completing the case. Remove pages 3 through 6 before beginning the case.

I

Pages

7 - 22

Interviewer

•Prep time: This case is rated 3 stars in terms of difficulty and has a few complexities. Expect to invest at least 10 minutes preparing. Review the following:

-Interviewer Fact Sheet (p. 7)

-Case at a Glance (p. 8-9)

-Math Zone (p. 10)

-Handout Guide and Handouts (p. 11-20)

-Re-routers and Heavy Lifting (p. 21)

-Candidate’s “Mine for an Answer” sheets (p. 27-29)

•Giving the Case: Start the interview realistically - greet, shake hands, chat and introduce the case. To make the interview more challenging consider taking on an interviewer personality. For tips look at p. 25. After the case is over, fill out the Interview Feedback sheet and discuss strengths and weaknesses with the candidate.

C

Pages 23 - 31

Candidate

•Working with an Interviewer: Remove pages 3 through 6 to take notes and do your work. Give the rest of the pack to your interviewer. Interviewer prep is about 10 minutes for this case.

•After the interview: Rate yourself using the Self Assessment sheet in the back of the case pack. Review the feedback score and comments from your interviewer and discuss ways to improve. Review the suggested answers in the case.

•Self-study: Remove pages 3 through 6 to take notes and do your work. Remove any data handouts and place them face down. Follow the three Self Study Steps listed on these sheets. This self study method will help you form your plan, practice asking good questions and improve your ability to pull insights from the data slides. Keep in mind that you will benefit most from working with an interviewer who can evaluate your performance objectively.

Throughout these notes references will be made to the MVM™ (Maximum Value Model) and the FRAME Method™, the building blocks of the One Model/One Method™ approach to case interviews. Full descriptions of these unique tools, as well as additional cases, can be found in the book, Crack the Case: How to Conquer Your Case Interviews, available at www.consultingcase.com.

The facts of this case, company names and answers are completely fictitious. Any resemblance to actual people, places, companies and strategic outcomes is entirely coincidental.

	Purchase additional cases and the book Crack the Case: How to Conquer Your Case Interviews at www.consultingcase.com.	007 - Always Fresh 2
	Copyright © 2004 Turtle Hare Media

Always Fresh

I

Interviewer Fact Sheet

Pack: 007 page 7 of 31

CaseCase Question:uestion: AlwaysAlwaysFreshFreshisisaasubsidiarysubsidiaryofofaa$$30B30Bconsumerconsumerproductsproductsconglomerateconglomerate..

TheThecompany’scompany’smainmainproductproductlinelineisisdeodorant/antideodorant/anti--perspirantperspirantsprays,sprays,rollro -l-onsonsandandstickssticks.. SalesSalesoverover thethelastlastfivefiveyearsyearshavehavebeenbeensteadilysteadilygrowinggrowingininNorthNorthAmerica,America,andandnownowthetheAlwaysAlwaysFreshFreshteamteamisis readyreadytototaketakeitsitsproductsproductsglobalglobal.. AsAsthetheteam’steam’sleader,leader,howhowwouldwouldyouyouassessassesswhetherwhetherorornotnot internationalinternationalexpansionexpansionisisaagoodgoodidea?idea? IfIfso,so,whichwhichcountriescountriesofferofferthethegreatestgreatestthreethree--yearyearrevenuerevenue opportunity?opportunity?

AAFewFewTipsTipsfromfromDavidDavid

•This is a basic market entry case with critical data scattered throughout four different handouts. Star candidates will be on a mission to find certain facts and pull them from the slides.

•Make sure the candidate has all four slides at about the half point in the case. As you evaluate, look for tenacity in finding data as well as an ability to integrate the findings.

IntroIntro FactsFacts

(Tell(Te lthetheCandidateCandidateififAsked)Asked)

•Location preferences: None. Management

•Location preferences: None. Management

wants the project team to tell them. wants the project team to te l them.

•Product line: Any or all of the three deodorant

•Product line: Any or all of the three deodorant

types can be launched into new locations. Each types can be launched into new locations. Each product (stick, spray, roll-on) lasts 3 months long product (stick, spray, roll-on) lasts 3 months long

on average. on average.

•Team: Internal resources appear sufficient to

•Team: Internal resources appear sufficient to

handle this launch. Candidate is the leader. handle this launch. Candidate is the leader.

•Capital, production and distribution: Parent

•Capital, production and distribution: Parent

company will support any well defined need. company will support any we l defined need. Worldwide production and distribution facilities will Worldwide production and distribution facilities will

help. Relationships with retailers are good. help. Relationships with retailers are good.

•Financial targets: 25% annual revenue growth

•Financial targets: 25% annual revenue growth

for 3 years and year one sales of at least $50M. for 3 years and year one sales of at least $50M.

•North American (NAM) sales: Last year’s sales

•North American (NAM) sales: Last year’s sales

were $350M. NAM growth is about 10% per year. were $350M. NAM growth is about 10% per year.

•Suppliers: Non-issue, North American suppliers.

•Suppliers: Non-issue, North American suppliers.

•Government/ Legislation: No barriers.

•Government/ Legislation: No barriers.

•Financing this venture: Non-issue. .

•Financing this venture: Non-issue. .

On-Track Indicators

Data driven – asks for price, volume and usage by country

Results focus – thinks about getting product to customers by overcoming barriers and ensuring good distribution

Creative - discusses country specific issues like advertising, product name, perception of product after establishing a data driven strategy

Keyey InsightsInsights

(Do(DoNotNotTellTe lthetheCandidate)Candidate)

•Market potential: Three countries are much

•Market potential: Three countries are much

larger than the others in terms of overall size: larger than the others in terms of overall size:

Germany, Japan and Brazil.

Germany, Japan and Brazil.

•Pricing: AF sells three different types of product

•Pricing: AF se ls three different types of product

that sell at different price points. Also prices vary that sell at different price points. Also prices vary

by country. However, since the three product by country. However, since the three product

types are weighted about the same, you can types are weighted about the same, you can average the prices to develop an average price average the prices to develop an average price

for all units for a particular country. for all units for a particular country.

•Country Specific Competitors: There are

•Country Specific Competitors: There are

strong competitors in each market that AF wants strong competitors in each market that AF wants to enter. Brazil and Japan are the most

to enter. Brazil and Japan are the most

fragmented which would enable AF to take fragmented which would enable AF to take market share from the small, local brands. market share from the small, local brands.

Although AF is new, their large parent Although AF is new, their large parent organization will make it possible for them organization will make it possible for them

promote their products heavily and to use already promote their products heavily and to use already

established distribution relationships. established distribution relationships.

•Global Competitors: Mann and Rembrant each

•Global Competitors: Mann and Rembrant each

have solid market share in 3 different countries. have solid market share in 3 di ferent countries.

They are well established companies like AF and They are well established companies like AF and its parent company.

its parent company.

Off-Track Indicators

Creative first – talks about customers’ different needs and how to address them before determining market size and country of focus

Too tactical – focuses too much on how to distribute, sell or make before developing a data driven strategy

Too micro – drills too deep and long on a few issues, like which type of product to sell first

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	Copyright © 2004 Turtle Hare Media

Always Fresh

I

Case at a Glance

Pack: 007 page 8 of 31

Part

A

1

2

3

Typical Case		Interviewer									Candidate
		Questions &									Questions &
Flow
		Comments									Answers
Present the main
question. Candidate											Candidate takes notes,
takes notes, asks for a											asks for a minute, forms
minute, forms a plan and			~0:01 min.								a plan and presents it.
presents it.
Answer any basic fact
questions. These may
come up after you read
the question or later.
											Clear connections
		“Tell me more about
Ask for clarification if											between each part of the
		this area (you choose).
											plan and an
necessary. Be sure to		What are you thinking
											understanding of how
make him explain		about here.” or “Tell
											each part contributes to
anything you do not fully		me how the parts of
											the whole. Solid logic on
understand.		your structure link to
											how this plan will get
		each other.”
											some answers.

Data &

Answers to

Provide

See Intro Facts on the Interviewer Fact Sheet.

No data. Ask questions about his approach.

Guide the discussion and hand out slides.

The candidate may start in several different areas, but the “star” will get right down to business by assessing what the full revenue and profit potential would be by country. Basic data that is necessary to answer this question include: size of the potential

4market, price per unit sold, usage rates and volume. Expect to get several questions on these topics. Your goal is to put all four slides (A-D) in front of the candidate so that he can make a more holistic decision. You may have to offer a question or clue to move the discussion in that direction and then proceed to hand out the slide.

“What is the primary metric by which you could judge each country?”

Optional – “What kind of data would you need to best understand pricing?”

“I’d want to understand		Give the candidate
the full revenue potential.		Handout A. Ask, “How
Specifically how much		would you describe what
revenue and profit could		is happening in these
we earn over the next 5		countries in terms of
years.”		deodorant usage?”
“I’d need to know what		Give the candidate
		Handout B. Ask, “What
the price is per unit. I’d
		do you notice about the
have to neutralize for
		price structure here? Do
foreign exchange rates
		you see any trends by
and then compare to
		country or type?”
competitor products.”

			“I would need to		Give the candidate
	Optional – “What kind
			understand what kind of		Handout D, product
	of products would you		deodorant products each		types by country. “Do
	want to offer in other		country likes to use first		certain countries tend to
	countries?”		and then vary our		use one product type
			product line if		over another?”
			necessary.”
			“I’d like to understand
	Optional - “How would				Give the candidate
			what position the
	you go about thinking		competitors have today.		Handout C, competitor
	about competitors?		Certain countries may		share by country. Ask,
	What information		already be dominated by		“Which countries provide
	would you need to		a few brands and be		the most opportunity and
	evaluate this threat?”		difficult to penetrate.”		why?”

	Purchase additional cases and the book Crack the Case: How to Conquer Your Case Interviews at www.consultingcase.com.	007 - Always Fresh 8
	Copyright © 2004 Turtle Hare Media