The ultimate guide to case interview frameworks
An effective structure is at the heart of any successful response to a case interview question.
A good case interview structure should identify the right question, present a comprehensive set of independent drivers, and provide a prioritized and insightful approach to solving the case.
There are a number of established frameworks that can help you structure your responses to case questions. Learning how to apply these frameworks correctly, however, is a skill in itself.
In this guide, we introduce the 10 most helpful frameworks for structuring responses to case questions, and explain how to use them effectively.
Key takeaways
- Case interview frameworks can be incredibly helpful for structuring your responses to case questions, but it’s vital to learn how to use them.
- Many of the top-10 frameworks can help you structure responses to common case questions, such as those on profitability, revenue growth, market entry, cost cutting, and process optimization.
- The other frameworks covered in this article are: supply and demand, the three Cs, Porter’s Five Forces, the four Ps, and BCG’s growth-share matrix.
- Simply applying a framework to a case in a ‘cookie-cutter’ fashion won’t help you produce the best possible answer. Interviewers want to see that you are capable of proposing custom case interview structures.
- It’s vital to gain an in-depth understanding of case interview frameworks before you can put them into practice. The video lectures in our Interview Prep Course cover 20+ frameworks in detail.
- Learning how to use the frameworks to create custom structures takes a great deal of practice.
»
The top-10 case interview frameworks
The profitability framework
The profitability question in a case interview is a classic. In the analysis of the types of case questions most commonly asked by McKinsey, BCG and Bain, profit improvement topped the list, accounting for 20% of the case questions reported.
As illustrated in the graphic below, profit is defined as revenue minus cost, where revenue is the quantity sold multiplied by the price of the product. The standard approach to thinking about profit is illustrated in the diagram below:
The profitability question in a case interview is a classic. In the analysis of the types of case questions most commonly asked by McKinsey, BCG and Bain, profit improvement topped the list, accounting for 20% of the case questions reported.
As illustrated in the graphic below, profit is defined as revenue minus cost, where revenue is the quantity sold multiplied by the price of the product. The standard approach to thinking about profit is illustrated in the diagram below:
The revenue growth framework
The chances of being faced with a revenue growth question in a case interview are also very high. In the analysis of common case questions, revenue growth was the second-most frequently cited topic.
The revenue growth framework is based on the principle that there are two main ways to grow a company’s revenue:
The chances of being faced with a revenue growth question in a case interview are also very high. In the analysis of common case questions, revenue growth was the second-most frequently cited topic.
The revenue growth framework is based on the principle that there are two main ways to grow a company’s revenue:
- Growing its core business
- Growing outside of its core business
The market entry framework
When it comes to a market entry question in a case interview, there are four drivers to consider:
To understand the share of the market that you can capture, look at the competitive landscape and what customers want, and then compare this to your offering. You might conclude that this is a good opportunity. Alternatively, you might find that the market is already dominated by a small number of powerful players and will therefore be difficult to enter.
To determine potential profit, look at the initial investment coupled with the running cost, and then compare it to the revenue that you can expect.
The market entry framework is illustrated in the graphic below
When it comes to a market entry question in a case interview, there are four drivers to consider:
- How big is the market opportunity?
- What kind of share of that market can the client capture?
- Assuming that this share is captured, how much profit can the client make?
- If that profit is attractive, what are the client’s capabilities and what risks are involved?
To understand the share of the market that you can capture, look at the competitive landscape and what customers want, and then compare this to your offering. You might conclude that this is a good opportunity. Alternatively, you might find that the market is already dominated by a small number of powerful players and will therefore be difficult to enter.
To determine potential profit, look at the initial investment coupled with the running cost, and then compare it to the revenue that you can expect.
The market entry framework is illustrated in the graphic below
The cost-cutting framework
The cost-cutting framework presents three main drivers for reducing cost:
To meet the need with fewer resources, you could look at ways to either eliminate waste in the process or improve productivity.
To reduce the cost of the resources, you could renegotiate your existing contracts or find cheaper alternatives.
The cost-cutting framework is illustrated in the graphic below:
The cost-cutting framework presents three main drivers for reducing cost:
- Reducing the need for what you’re buying
- Meeting the need with fewer resources
- Reducing the cost of the resources
To meet the need with fewer resources, you could look at ways to either eliminate waste in the process or improve productivity.
To reduce the cost of the resources, you could renegotiate your existing contracts or find cheaper alternatives.
The cost-cutting framework is illustrated in the graphic below:
The process optimization framework
This framework sets out a three-part methodology for optimizing a process:
Depending on the answer, you might identify a need to reduce the cost of that step, increase its speed, improve its quality, or maybe include the step earlier in the process. You might even want to eliminate it entirely.
Once you’ve done this, map out the new process and estimate the gains.
The process optimization framework is illustrated in the graphic below:
This framework sets out a three-part methodology for optimizing a process:
- Map out the current process
- Look at how to improve each step of the process
- Estimate the gains
- What’s the capacity of that step?
- Is it being fully utilized?
- Is it a bottleneck that’s limiting the capacity of the overall process?
Depending on the answer, you might identify a need to reduce the cost of that step, increase its speed, improve its quality, or maybe include the step earlier in the process. You might even want to eliminate it entirely.
Once you’ve done this, map out the new process and estimate the gains.
The process optimization framework is illustrated in the graphic below:
Supply and demand
Supply and demand is the law of gravity that rules markets. Its core principles are very straightforward:
The supply and demand framework helps us understand how all sorts of markets behave. In business, we can use it to:
Supply and demand is the law of gravity that rules markets. Its core principles are very straightforward:
- On the one hand, demand for a product or a service increases when the price goes down.
- On the other hand, more suppliers are ready to provide the product or the service when the price goes up.
The supply and demand framework helps us understand how all sorts of markets behave. In business, we can use it to:
- estimate the impact of our interventions
- forecast profits
- make investment decisions
- analyze operational problems, where supply or capacity is typically constrained (e.g. in a shop, call center, or production line)
The three Cs framework
The three Cs is one of the most frequently used strategy frameworks. It was created by a Japanese management consultant who later became an academic.
As illustrated in the graphic below, the three ‘Cs’ refer to:
The three Cs is one of the most frequently used strategy frameworks. It was created by a Japanese management consultant who later became an academic.
As illustrated in the graphic below, the three ‘Cs’ refer to:
- the company
- its competitors
- its customers
Porter’s Five Forces
Porter’s Five Forces builds on the frameworks of both supply and demand and the three Cs. Developed by star Harvard Business School professor Michael Porter, the framework looks at the attractiveness of a market through the lens of five drivers or ‘forces’. These are:
Porter’s Five Forces builds on the frameworks of both supply and demand and the three Cs. Developed by star Harvard Business School professor Michael Porter, the framework looks at the attractiveness of a market through the lens of five drivers or ‘forces’. These are:
- customers
- competitors
- substitutes
- new entrants
- suppliers
The four Ps framework
The four Ps framework, also known as the ‘marketing mix’, can help a company establish an effective strategy for launching a new product. The framework focuses on four key areas:
The four Ps framework, also known as the ‘marketing mix’, can help a company establish an effective strategy for launching a new product. The framework focuses on four key areas:
- Product – which can be defined as what’s being offered (i.e. a product’s features, design, and brand)
- Price – which may involve sophisticated strategies and competitive differentiation
- Place – which will typically focus on distribution channels and partnerships
- Promotion – which could include advertising, communication, and public relations
How to use case interview frameworks
The frameworks we’ve covered here can help you greatly with structuring responses to case questions. It’s therefore vital to learn them as part of your case interview preparation.
However, simply applying a framework to a case interview question in a ‘cookie-cutter’ fashion is not enough. This approach will neither produce the best possible answer nor allow you to impress your interviewer.
Even the most common types of case questions require a custom structure. A profitability question that relates to a chain of restaurants, for example, will naturally require a different approach to a question on the same topic in the manufacturing industry.
Many case questions will require you to combine different frameworks and use them as building blocks for crafting your answer. A profitability question may have a focus on market growth or launching a product, for example.
Ultimately, interviewers want to understand how your mind works and see you think on your feet. You’ll therefore need to demonstrate that you can propose a custom case interview structure to any question.
The frameworks we’ve covered here can help you greatly with structuring responses to case questions. It’s therefore vital to learn them as part of your case interview preparation.
However, simply applying a framework to a case interview question in a ‘cookie-cutter’ fashion is not enough. This approach will neither produce the best possible answer nor allow you to impress your interviewer.
Even the most common types of case questions require a custom structure. A profitability question that relates to a chain of restaurants, for example, will naturally require a different approach to a question on the same topic in the manufacturing industry.
Many case questions will require you to combine different frameworks and use them as building blocks for crafting your answer. A profitability question may have a focus on market growth or launching a product, for example.
Ultimately, interviewers want to understand how your mind works and see you think on your feet. You’ll therefore need to demonstrate that you can propose a custom case interview structure to any question.
Source:
The ultimate guide to case interview frameworks
https://casecoach.com/b/ultimate-guide-case-interview-frameworks/
https://casecoach.com/b/ultimate-guide-case-interview-frameworks/
CONSULT101
