Sample Consulting Cases GUESSTIMATION CASE Set-up: How many Timberland hiking boots will be sold to Generation Xers

in the US in the next quarter Answerable questions: What is Timberland? Leading manufacturer of hiking boots What is Generation X? Term used to describe the 25-30 year old age group Good answer: There are 300 MM people in the US Of this, estimate the number of Generation Xers Of this, estimate the number of hikers For each hiker, estimate the number of boots bought each year and multiply through to get a total number of annual boots bought Divide by 4 to get a quarterly figure A bonus check: Estimate the cost of these boots and multiply by the number sold to estimate approximate quarterly revenues from this market. See if this is feasible. Bad answer: Candidate guesses a number with no structure; AND/OR Candidate offers structure but does not multiply the numbers through; AND/OR Candidate multiplies the numbers through and gets a very low or high number and doesnt know how to double-check

Author: Caroline Ceniza-Levine

Sample Consulting Cases Page 2 PROGRESSIVE CASE/ STRATEGY Set-up: The founder and CEO of Caroline Shoe Company is concerned about flat revenues and wants you to put together a proposal on how to advise her. What issues would you like to investigate and what analyses would you expect to perform? Caroline Shoes is a major competitor of Rockport in the upscale work/ casual shoe market. It is a 50-year old company. It sells shoes in the US only. It sells through department stores, shoe stores and through Caroline Shoe stores. Answerable questions: Is the company profitable? Yes. Are industry revenues flat, or is it just your company? Industry revenues are flat Why are you concerned about revenues, if the company is profitable and the entire industry is suffering? The industry used to be 40% Caroline, 30% Rockport, and 30% other. Now it is 30% Caroline, 50% Rockport, and 20% other NOTE: The above questions are not critical to the case, but they do carry bonus points b/c they show that the candidate distinguishes between revenues and profitability and b/c the candidate is getting at the root of the problem, not just revenue for revenues sake Good structure: Comprehensive list of revenue-expansion ideas and the accompanying analyses for each Potential Revenue Expansion Idea Expand product line Expand abroad Feasibility Analysis
Customer analysis Market sizing for new product Competitor benchmarking Customer analysis Market sizing in target geographies Competitor benchmarking Distribution implications Where are these shoes mostly sold in general v. where Caroline sales come from Business plan for online venture Cannibalization implications Gap analysis Deal analysis

Confirm that current sales channels are effective Expand distribution channels (e.g., online) Acquisition/ joint venture Bad structure:

Narrow focus on one idea (e.g., expand product line) No follow through on how to test feasibility. Candidate should be prepared to outline a cost/ benefit analysis for a broader product line, expansion abroad, or an online venture, etc.

Author: Caroline Ceniza-Levine

Sample Consulting Cases Page 3 PROGRESSIVE CASE/ OPERATIONS Set up: A manufacturer of construction equipment is profitable one quarter, but unprofitable the next, then profitable again, then unprofitable. Whats going on. This company sells construction equipment to retail dealers who then sell it to the consumer. The company does not sell directly Answerable questions: If candidate proposes a revenue/ cost analysis and starts to make assumptions about revenue, then emphasize that revenues are the same each quarter. NOTE: Candidate should immediately realize that this is a cost problem If candidate names labor as a potential cost issue, then point out that union contracts prevent layoffs and/ or any other wage changes Good structure: Comprehensive list of reasons for cyclical costs for a construction equipment business, such as: Production schedule for the equipment. Is the company producing at uneven levels throughout the year and thereby incurring uneven costs Inventory levels. Is the company producing at even levels throughout the year and then incurring large inventory costs Distribution schedule with the dealers. Is the company moving product according to dealers schedules, thereby retaining all the inventory risk Payment/ financing arrangements with the dealers. Are revenues level b/c the company is accepting level payments from the dealers while delivering on demand Bad structure: Narrow focus on one cost, especially if the importance of the dealer relationship is overlooked

Author: Caroline Ceniza-Levine

Sample Consulting Cases Page 4 PROGRESSIVE CASE/ TECHNOLOGY Set-up: Two companies have recently merged. You will be addressing the boards of these companies regarding their upcoming IT integration strategy and have the opportunity to interview the CEOs of each company involved. What information would you ask to prepare for the meeting and what will you likely discuss Answerable questions: None. Everything the candidate needs is in the set-up Good structure: This needs to be the first and foremost question: Why are the companies merging? This will dictate how the case is answered. It also shows that the candidate realizes that the CEOs are there to answer corporate strategy questions, not technology If merging for economies of scale (e.g., Chase and Chemical), this implies that the products and/or services must be similarly aligned. Therefore, the IT strategy should focus on integrating systems whose objectives are the same. If merging two complementary businesses (e.g., Morgan Stanley and Dean Witter), this implies that the products and/or services are different. Therefore, the IT situations may likely differ, and the companies may not want to integrate systems. However, they need to focus on how to work as one company, (e.g., cross-selling products, keeping track of an entire customer relationship) Bad structure: Asking the CEOs about specific platforms, technologies, or other IT details. This should be saved for the CIO Assuming that IT means online and focusing the entire case on the new companys online strategy

Author: Caroline Ceniza-Levine