Associate Mock Case Interview

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Associate Mock Case Interview

• Dartmouth College

October 8, 2004
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Agenda

• Case Preparation
• Case Assessment
• Case Execution

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Case PreparationCase Question Fenway Park
T-Shirt Vendor

• Case Question
• Assess whether or not a Red Sox t-shirt vending
  cart operated outside of Bostons Fenway Park can
  be a profitable business

• Background Facts
• Fenway Park is home to the Boston Red Sox, a
  major league baseball team
• Many vendors operate single-cart businesses
  (e.g., hotdog carts, ice cream carts, t-shirt
  carts,etc) immediately outside ballpark grounds
  for pre- and post-game sales
• Average game attendance 30,000
• Average game duration 5 hours (includes pre- and
  post-game)
• 160 games per season 50 home, 50 away
• Average ticket price 40 per person
• Business intention is to operate a single vendor
  cart outside of Fenway Park on Yawkey Way, where
  people come to enjoy the festive pre-game
  atmosphere

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Case PreparationBefore You Start

• Take a deep breath and relax
• Write down your thoughts and other notes (you
  need to bring pen/pencil and paper!)
• Identify a framework that will help you structure
  the problem
• Think before you talk
• Start your case with a thought process explain
  briefly how you intend to approach the problem
• Throughout the case ask probing questions and/or
  state your assumptions
• Be aware of time constraints and be prepared to
  summarize your findings
• Smile ?

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Case PreparationThoughts Notes

• Fenway Park is it profitable to operate a
  t-shirt cart?
• What do I know?
• Attendance 30,000
• 80 home games per year
• T-shirts sell for between 10 - 25

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Case AssessmentHow Did I Do?
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Case AssessmentWrap-Up

• Case Tips
• Bring a pen/pencil and paper
• Listen carefully to case details and general
  interview questions
• Respond in a thoughtful and structured manner
  (take your time!)
• Remember that your thought-process is usually
  more telling than your answer
• PRACTICE, PRACTICE, PRACTICE!!
• General Interview Tips
• Be on-time and dressed appropriately
• Know your resume and academic/work experience
  background
• Answer interview questions concisely
• Be able to state clearly and concisely why you
  want to work in consulting
• Be enthusiastic
• Be yourself

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Case ExecutionThe Framework

• Use a framework that will help you and your
  interviewer understand your thought process

M I N U S

• How many t-shirts can you sell per game?
• What factors affect sales?

• How much can you charge for t-shirts?

• What are my costs?

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Case ExecutionCost Analysis

• Start with something straight-forward
  (low-hanging fruit) in this case, the cost
  component is easiest to estimate

• How many t-shirts can you sell per game?

• How much can you charge for t-shirts?

• What are my costs?
• What costs are start-up, (e.g., one-time only)?
• What costs are recurring? How often? (Annual,
  monthly, periodic?)

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Case ExecutionCost Analysis

• Cart Purchase 5,000 (one-time)
• or
• Cart Lease 1,000 (semi-annual)
• Operators License 1,000 (annual)

• How many t-shirtscan you sell pergame?

• How much canyou charge for t-shirts?

• 6,000 Total

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Case ExecutionRevenue Analysis

• Cart Purchase 5,000 (one-time)
• or
• Cart Lease 1,000 (semi-annual)
• Operators License 1,000 (annual)

• How many t-shirts can you sell per game?

• How much can you charge for t-shirts?

• 6,000 Total

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Case ExecutionQuantity Estimation
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Case ExecutionSanity Check

• The Sanity Check
• Does 50 t-shirts sold per-game sound right?
• There are 1,500 t-shirts sold and I am selling 50
  shirts, so that implies that there are 30
  t-shirt vendors at the park. Is that a
  reasonable number?
• If we really only sell t-shirts for 2 pre-game
  hours and 1 post-game hour, we effectively have
  180 selling minutes ? OR we sell 1 t-shirt
  every 3-4 minutes
• Can one person handle a t-shirt sales transaction
  every 3 ½ minutes?

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Case ExecutionRevenue Analysis

• Cart Purchase 5,000 (one-time)
• or
• Cart Lease 1,000 (semi-annual)
• Operators License 1,000 (annual)

• 50 t-shirts sold per game

• 15 per t-shirt

• 6,000 Total

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Case ExecutionRoll-It-Up

• Now that youve calculated the various components
  of the profit tree, roll-it-up to an annual level
  and summarize

• 50 t-shirts sold per game

• 15 per t-shirt

• 5,000 start-up costs (cart purchase)
• 1,000 annual operators license

• 50 labor wages per game
• 2 cost per t-shirt x 50 shirts 100

• 750 per game revenue

• 6,000 annual costs

• 150 per game costs

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Case ExecutionRoll-It-Up

• Sanity check your findings once again and
  summarize to the interviewer

Total Revenue per Game 750 Less Total Costs
per Game ( 150) Net Income per Game
600 Total Home Games per Year
80 Annual Income 48,000 Less Annual Fixed
Costs (6,000) Total Annual Profit 42,000