Break-Even Analysis is often applied when deciding whether to develop a new product or make a capital equipment investment, as well as helping in making decisions around how to price products and service and the number of units to produce.
Which framework should you learn and when should you use them? Here is our ultimate guide to the business case frameworks for consulting case interviews. Why use a business framework in the case interviews? Typically, the questions they help answer are pretty basic: How does this company make money?
Will this company be successful in the market? How do you value a company? Business frameworks help with organizing your thoughts in a case interview. Knowledge and use of a suitable business framework helps you speed things up, in particular in your info gathering and approach.
You always want to end the case interview with a recommendation and discussion of alternatives to your recommendation, therefore being efficient with your time is critical.
During this time, think through the different business frameworks and figure out which one would be suitable for this case. Also, be flexible in your approach, if a case does not fit perfectly well into a framework, feel free to modify them on the fly.
One word of caution: If you fit every case into a business framework and apply these frameworks mechanically, it will backfire. The interview wants to have a business conversation with you and they are trying to test your business maturity, thinking skills and creativity in a case.
Instead, describe the business drivers about that framework, why you think that those drivers are appropriate to solve this business problem and how you want to take the conversation forward. This will set you up nicely for the rest of the case conversation. It was developed by business and corporate strategist Kenichi Ohmae.
The first C is the Customer, which must be understood and segmented in depth. The second C is the Competitors: How they play, respond and adapt to the market. The third C is the Company: The inner workings, structure and competencies of a company. It is a pretty general and broadly applicable business framework to most cases.
The product is about the characteristics of the product being sold. Price is related to the pricing strategy, this can include the pricing, discounts, pricing structure e. Promotion is about how the product is marketed, e.
And finally the place refers to the channels the product is sold, e. Brick and mortar stores, own vs. Benefit Cost and benefit is a pretty simple framework and broadly applicable. It can be used in the context of any business decision.“Case Interview Frameworks” is one of the most searched phrases in consulting prep.
Indeed, it’s one of the core concepts in case interviews that every candidate should understand really well. Simply put, case interview frameworks are like standard templates, used to structure and break down common business problems.
Since it’s a template, it is usually very well organized and written. “Case Interview Frameworks” is one of the most searched phrases in consulting prep.
Indeed, it’s one of the core concepts in case interviews that every candidate should understand really well. Simply put, Case Interview Frameworks are like standard templates to help . Use this framework when Company A is looking to acquire or merge with Company B, AND the two companies are different.
This framework determines if there's a good fit. If Company A & B are nearly identical, use a capacity expansion framework instead. 3 most essential Comprehensive Case Interview Frameworks in Consulting and with multiple mini Frameworks - How to correctly use Case Interview Frameworks.
The ultimate guide to the case study frameworks for consulting case interviews March 11, June 28, by Head Junkie Learning different business frameworks can be daunting when you are preparing for management consulting interviews: 3C’s, 4P’s, SWOT, 2×2, Five forces, STP.
Here’s the download link to a pdf file of the case interview frameworks that I used to get my 7 consulting job offers – including McKinsey.
If you’ve done any research on case interview frameworks, you’ll find that my approach is a bit different than what you might see in books as guides written about.