Consulting and Case Interviews

Consulting is all about asking the right questions. Its the evolution of thought process from the problem to possible solutions.

1. Understand the business problem : This is the first and important step. Lets take an example. We are asked to address the issue of declining profits of a large retailer. So, understand what really is the problem. Declining profits and not the revenues or something else.

2. Analyze the problem: The most important of all - The analytical skills come into picture here. Profits are declining only for client or his competitors also? Is there any increase in Costs? Is there any decrease in Revenue? What is the market trend? What is the trend in Clients profits? Are there any changes in the market through innovative selling?

3. Analyze the options : What are the options available to increase the profits? This is the next step to the above (step 2). From the analysis in step 2 we will come to know what is the main reason for declining profits is. We will decide the best possible options to increase the profits.

4. Execution of the options : How can we execute the ideas that we have got to increase the profits? Do we have the required resources? Should we put in more resources or buy? What is the rate of return for the new investment? How does this investment reflect in long term strategy?

By this time, you must have realized that case interviews and consulting jobs are all about asking and answering the right questions. It should evolve as a thought process and the practice of lots of cases makes the candidate's thought process more evolved. I have not yet started my B-School studies. I can post more on this once I get started. After all solving cases does not require an MBA. It requires commonsense and logic.

What is Consulting..?

I am posting this as aresponse to a comment given by a Rajuram in my previous post The life of a consultant?. Many people have the mindest that Consulting is Just Strategy Consulting and you have to work only at McKinsey to be a great consultant. Of Course McK pays the largest amount and thats why many are interested. But there are a bunch of companies other than McK, BCG and Booz Allen that realy do a good job.

Consulting is a broad term and it has many sections. We can break down consulting into two main ways.

1. Functional-wise : If you are good at Corporate finance, then you can be a consultant at Megers or Future investments. If you are good at Operations and Supply chain you can be a consultant at Production and sourcing and distribution Strategy. If you are good at Marketing, then you can work on product and promotion strategy.

2. Industry-wise : You have good exposure to consumer durables industry. So you can use that to give advice on various functional areas in that Industry.

Don't think that you have to work in McKinsey to be a great consultant. After all many McKinseyites quit after initial 2-3 years to settle down in a company. The work is too hectic and many have to sacrifice personal lives for work..And if you dont perform to the expectations you are out..

The life of a consultant?

If you want to know how it feel to be a consultant at a BIG strategy consulting firm see the following link.

http://angelangie2008.blogspot.com/search/label/consulting.

I am very thankful to $udha, thru whom I am able to navigate there.. I am very greatful to the author who has really wrote a thought provoking post for the people who want to consider consulting as a career after MBA.