Opening, Analyzing, and Closing Strategies for a Winning Interview (Part 4 of 12) | caseinterview
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- Опубликовано: 19 июл 2024
- How to Open, Analyze and Close a Case Interview - Part 2
By Victor Cheng
Author, Case Interview Secrets
www.CaseInterviewSecrets.com
For my free email newsletter on passing the case interview and to download all the handouts and slides references in this video, visit the free download members download area of www.caseinterview.com
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victor cheng's character acting is actually quite on point
Love the overhead projector! :)
Looks like the cost structure could be better done by drawing 2 branches: fixed costs and variable costs and THEN split the variable costs in Cost*Unit and Unit produced...
what about NP = Q(P - VC) - FC...
@@theRealDavidn exactly the stuff you don't do as a consultant... Write abbreviated formulas that are not outright intuitive
I used to watch your videos in 2014 but i think this is the first time i saw your entire walk through and it’s great!!
What's up FMS Fam!?
so i did not see in any of the 12 videos any elaboration on the supply an demand case. has anyone seen it?
Hello Victor! I see you answer lots of the comments so I wanted to ask how to best learn more about case study. I just entered a case group at my university and I wanna learn more, but I haven't really found any good practice cases on the internet. Do u have any favorite sites or links?
I think what Victor wanted to say was actual number like 20 or 40 without percentage, if that makes more sense.
Thank you Victor, that makes sense!
I hope you are still fine
Enlightening
Im an undergrad student, majoring in informatics, but id like to work in consulting. I've heard case interviews for undergrad usually require less business knowledge, and are more based on testing critical thinking and problem solving. Is this true?
i didn't hear it but it could be something like a 20% increase in revenue and 40% decrease in cost not adding up to a 20% decrease in profit :)
No he is talking about no of units thing hear carefully
Sir i would like to know why din you consider fixed cost in this problem?
Thank you so much for your help, it has been a huge boost for me!
If profits decrease by 20%, does that automatically imply decrease in revenue by 20%? For example, let's say a firm makes $120 revenue and 100$ cost (so $20 profit) and now profits decrease by 50%. Does that mean the revenue is $60? But that would mean $-40 profit.
+enjay No it definitely doesn't. Student question was wrong, and I'm pretty surprised that he didn't catch that. The raw numbers need to add up, but they won't be the same percentages, as the denominator will be different (either total revenues or total profits).
Nope revenue will decrease by 8.3%. Profit is a function of both Revenue and cost.
this could be a dumb question but aren't the components of cost fixed costs and variable costs? Here you implied that the components are # of units sold and cost/unit
I understand, it makes more sense now!
4:42 that's wrong. If profits declined by 20%, and revenue declined by 20% it doesn't mean the decline in profit can be completely explained by the decline in revenue. The decline is not the same. there's still a cost component he would have to explore.
He said it's a likely scenario
But it's not. If profit is down 20% and revenue is down 20%, costs are also down 20%. Profits drop a lot faster than revenues all else (costs) being equal. (How much faster is a function of your profit margin.) Use actual numbers on that if you want.
You're totally right. But, even if the costs are down, that is actually favourable to the business and thus, the problem is of the decreasing profit can be attributed to decreasing revenue.
why would # of units sold be important in a cost problem and/or profitability problem? If cost is the problem, decreasing the number of units sold would not solve the problem, as it would negatively impact revenue on a 1-1 basis? Hence shouln't the only variable we look at be variable (cost/unit) and fixed cost?
It depends :) Most often cost is dependent on how much you produce. So you need to understand the co-relation and see if moving volume up / down can lead to significant reduction in cost and hence improve profits (e.g. think of cost as a step function)
My thoughts too. Cost breaks down into variables and fixed costs. How Vic is approaching it is baffling
First of all, thank you for reply and thank you for clarifying things. So are both ways correct if we use them during the interview process or is there one specific and correct way?
Even if the revenues has gone down it would it not be wise to ask about the costs before continuing? maby costs have doubled but revenues only have dropped by a few %.
Your always out to disprove the hypothesis not confirm it in science.
Nils Eriksson never ever confuse, your and you are if you want to be taken seriously.
You're was what i was going for i often write it like that because of lazyness. Its just in academia you care more about the phrasing than the actuall argument. So stop marking words and start a fruitful discussion which we can get something out of instead.
+Nils Eriksson Totally agree. Can't jump to conclusions just because one branch of the framework has been proved right.
Also, fuck the grammar nazis.
*increase in cost
5:12, I was stunned when interviewer asked me what's revenue? Like revenue is revenue? Then the interviewer said no its #sold X arpu, and I was like O_____O.... needless to say, i got the job afterwards. For more about the story, please visit www.CaseInterview.com
Shouldn't we use # of units produced instead of # of units sold to get to the total value of costs?
its the COGS - cost of goods sold which is accounted for in the balance sheet when considering the revenue impact.
Quick note:
Analyzing a Case Step-by-step
1. ASK for any info on where to start within the framework
2. Take a HYPOTHESIS
3. PICK a branch of framework
4. Identify KEY ISSUES within BRANCH
Example: Let’s start by looking at revenue
5.ASK STANDARD QUESTIONS to gather initial data
6. Go DEEPER down the branch if data suggests to do so, or go UP a level and work a different branch
7.REFINE hypothesis as you discover more insights
Tips:
• Think out loud
• Use “hypothesis” a lot
- Educated guess
- Gather data to test validity
- Modify hypothesis (and say you are doing so)
- Ask for more data to test revised hypothesis
• Critical COMPARISON of Numbers
- Company vs. Competitors (Company-Specific or Industry-Wide Prblem)
- Current Year vs. Previous Year (Find the Trend)
• SEGMENT your Numbers
• ASK FOR DATA
Checklist of a Good Close:
1. Figure out what’s IMPORTANT about what you’ve discovered (“Insight”)
2. Provide a “Big Picture” POINT OF VIEW or CONCLUSION
(Ideally with recommended ACTION)
3. SUPPORT your point of view with data
Synthesis
To combine separate elements to form a coherent whole (Opposite to analysis)
Please watch this m.ruclips.net/video/UwjY5qp7wfI/видео.html