! McGill Casebook ! 2013-2014 ! Your best resource for case interview ppreparationreparation sponsoredsponsored bbyy presentedpresented by MCAManagement Consulting Association ! ! Produced by the Management Consulting Association in collaboration with Roland Berger Strategy Consultants. Compiled by: Samantha Fu (BCom ’14) and Mia Morisset (BCom ’13, MCA President 2012-2013) This guide is strictly for the use of students at McGill University. No part of this document may be reproduced or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the MCA- Management Consulting Association at McGill University. Management Consulting Association 2 ! ! ! Contents Introduction!..........................................................................................................................................................!5! What is Consulting? !.......................................................................................................................................!7! The Consulting Job!.....................................................................................................................................!7! The Consulting Industry!...........................................................................................................................!9! Consulting Firms in North America!..................................................................................................!11! Consulting at McGill!.....................................................................................................................................!12! Getting the Interview!....................................................................................................................................!15! Networking!...................................................................................................................................................!15! CV Preparation!..........................................................................................................................................!18! Cover Letter Preparation!......................................................................................................................!21! Acing the Interview!........................................................................................................................................!23! The Interview Process!............................................................................................................................!23! Main Frameworks!.....................................................................................................................................!33! Quantitative Analysis!..............................................................................................................................!44! Case Library!.....................................................................................................................................................!48! 1. Exxon – Market sizing (Source: Roland Berger)!.................................................................!49! 2. Aqualine – Revenue (Source: Oliver Wyman)!.....................................................................!50! 3. Revolutionary transporter machine – Pricing strategy (Source: Columbia Graduate Consulting Club)!..................................................................................................................!57! 4. Wumbleword (Source: Oliver Wyman)!.....................................................................................!59! 5. Chemical Company – Profitability (Source: MIT Sloan Management Consulting Club)!................................................................................................................................................................!66! 6. Kami Corporation – Revenue (Source: Oliver Wyman)!..................................................!68! 7. Snow Tires – Market sizing (Source: Roland Berger)!.....................................................!72! 8. Medilogiks – Market entry (Source: MIT Sloan Management Consulting Club)!.!74! 9. U.S Retail Bank – Market sizing / entry (Source: MIT Sloan Management Consulting Club)!..........................................................................................................!77! 10. CanadianTimes.com – Market sizing/entry (Source: Harvard Business School Consulting Club)!........................................................................................................................................!79! 11. Yearbook publishing company – Profitability (Source: INSEAD Consulting Club)!................................................................................................................................................................!82! 12. Hospital Proposal – Profitability (Source: MIT Sloan Management Consulting Club)!................................................................................................................................................................!84! 13. Publishing company – Profitability (Source: Columbia Graduate Consulting Club)!................................................................................................................................................................!88! Management Consulting Association 3 ! ! 14. Canadian Retailer – General strategy (Source: INSEAD Consulting Club)!....!91! 15. Social life – Market sizing (Source: Roland Berger)!.....................................................!97! 16. Airbus – Market entry (Source: MIT Sloan Management Consulting Club)!......!98! 17. Canadian Timber company – Cost-Revenue and Profitability (Source: MIT Sloan Management Consulting Club)!................................................................................!101! 18. Meat processing plant – Profitability (Source: Michigan Consulting Club)!......!103! 19. Bicycle Manufacturer – Profitability (Source: Columbia Graduate Consulting Club)!.............................................................................................................................................................!106! 20. Liquor Manufacturer – Sales strategy (Source: Columbia Graduate Consulting Club)!.............................................................................................................................................................!109! 21. Canada Airlines – Market sizing (Source: Roland Berger)!.....................................!112! 22. Australian Airlines – Cost-Revenue and Profitability (Source: Booth Consulting Club)!.............................................................................................................................................................!115! 23. British Royal Air Force – Cost Reduction program (Source: INSEAD Consulting Club)!.....................................................................................................................................!119! Resources!......................................................................................................................................................!124! References!.....................................................................................................................................................!126! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Management Consulting Association 4 ! ! Introduction A word from the MCA The Management Consulting Association of the Desautels Faculty of Management is proud to present the first McGill casebook. Using this new reference, we hope McGill students will gain a thorough understanding of the consulting world and get the best advice possible on interview preparation. Throughout the process of creating this book, the MCA has been fortunate enough to work alongside leaders in the consulting world in addition to McGill’s experienced Career Services staff. As such, we've been adamant about tailoring the book to a McGill student’s needs, highlighting key consulting trends in Canada as well as the rest of the world. Furthermore, a collection of sample cases and solving methods have been gathered from consulting firms across Canada to provide students with the best possible interview preparation. We would like to say a special thank you to Roland Berger Strategy Consultants, our main sponsor and contributor. They have most generously provided us with access to their resources and case materials, and have also offered invaluable advice and support throughout the process. Whether you are simply interested in learning about the consulting career, or if you have been preparing for the interview for the past couple of months, this book is for you. Through the combination of theory and practice, we hope to help you excel during this process. Ultimately, we hope this book helps you get into the mindset of a consultant, solving any problem with professionalism and passion. Best regards, The MCA Management Consulting Association 5 ! ! A word from Desautels’ Career Adviser – Julia Riscaldino The MCA and the Soutar Career Centre of the Desautels Faculty of Management have been working closely together to provide McGill students access to resources and professionals in the field of consulting in order to help them successfully prepare for consulting recruitment. Consulting weeks are now held in October and March to introduce 1st and 2nd year students to the world of consulting. In so doing, students are made aware of the importance of preparing