GUESSTIMATES

Placements Preparation

GUESSTIMATES

What is a Case Interview?

Tests Ability to solve a business problem

Analyze the causes of the problem

A situation is presented

Identify the problem

Recomme nd remedies to the problem

Case interviews last for about 45 minutes to an hour

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Case Interview The Success Mantra

Shows your approach to a problem in an analytical fashion and structured thinking under pressure
Identifying the correct answer is NOT important
There will usually be several credible solutions

What is important?
How clearly you define the problem How logically you structure the analysis How well you communicate your thoughts Make your thought process transparent Think aloud Ask relevant questions Listen for suggestions & hints

Use your knowledge effectively and hypothesize based on common sense

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Types of Cases

Provides lots of data and details

Tests candidates ability to distill key issues Requires depth of analysis based on relevant facts

Provides minimal details

Tests candidates ability to probe for additional details Requires structuring framework based on new facts

Provides minimal details and asks a key question

Tests a candidates analytic abilities Requires logical thought process and ease with number

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Other Soft criteria

Poise Are you confident in your answer? How do you handle yourself when you make a mistake? Do you perform well under pressure? Communication Are you articulate in communicating your thought processes and conclusions with others? To be a successful consultant, you must be able to clearly communicate your recommendations and articulate how you were able to arrive at your conclusions Flexibility As situations change and new information becomes available, are you able to adapt your thinking to new data or an emerging environment? Friendliness/Attitude Will clients and coworkers enjoy spending long hours with you? Other Intangibles Do you display energy and drive? Do you show initiative? Do you manage time effectively? Do you demonstrate decisiveness? Do you convey a genuine interest in the career and the firm?

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Guesstimates
Introduction

Ballpark figures or back of the envelope calculations basically approximations

Independent part of the interview or used during a case No random figures allowed May be asked to validate your assumptions Guesstimates vs. Cases Similarity Used to showcase your ability to analyze a situation and form conclusions by thinking out loud Difference Case-> ask a series of questions from the interviewer Guesstimate-> reach conclusion through a series of increasingly specific statements

Why are these asked? Used to reject hypothesis

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The First Encounter

HOW MANY PING PONG BALLS FIT IN A BOEING 747?
Do NOT panic Ask for a moment to compose your thoughts No need to be exact Pick nice round numbers that are easy for you to manipulate
Funnel Approach Think broadly, slowly drill down to the final solution Interviewer will be providing directions else make assumptions

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Working towards the solution

The funnel approach
What is your structure?

Volume of ping pong ball

Volume of Boeing 747

Ans= Volume 1/ Volume 2

The easy part: - Volume of ping pong ball= 4/3**R^3= 3 inch3

The tough part: - Future Consultants i.e. YOU to take up the mantle

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Our Solution

Person equivalent= 6 feet height * 1 foot wide * 1 foot deep = 10368 inch 3
Spaces in a Boeing 747 Seats =400 Galleys = 3 Lavatories = 14 Aisles = 3

Total person equivalents Seats = 400 person equivalents Galleys = 6*3 person equivalents Lavatories = 14*2 person equivalents Aisles = 40*3 person equivalents Total = approx 600 person equivalents
Number of balls = 600*10368/ 3= 2,073,600 Are we there yet?

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Unfortunately No
Cargo and extra space (belly holds, overhead compartment, leg room and space above the passengers heads) If figures are known can be calculated else take assumptions E.g. 4 times packing space as the volume of persons
Total = 600 + 2400 = 3000 person equivalents Volume of a Boeing 747 = 3000*10368= 31,104,000 in3 Number of balls that can be held= 10,368,000 balls Are we there yet? The Extra Step.. The piece de resistance PACKING DENSITY! The final figure =70% * 10,368,000= 7,257,600 balls

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Do you want more?

HOW MANY GALLONS OF WHITE HOUSE PAINT ARE SOLD IN THE U.S. EVERY YEAR?

2 approaches
The Start Big approach Number of people in US

Number of residential houses

Add shops, offices etc.

Paint used

Area of 1 house

Frequency of painting

The Start Small approach Start from a small town

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More Problems
Try at home

What is the size of the market for disposable diapers in India? What is the number of trees in IIM Kozhikode ? How many paper cups are used everyday in IIM K ? How many beer bottles are used for a batch party ? How much cheese High Octane use during a week ? What is the revenue of Margin Free shop on campus ? How many students go to IRCTC canteen for dinner ? Calculate the number of lipsticks sold in India ? How many McDAloo Ticki burgers are sold in India in a day ? How many people buy original MP3 albums in India ?
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Thank You
Reach out to us for any difficulties related to this Krucible

Surbhi Bhatia surbhib15@iimk.ac.in Akash Deep akashd15@iimk.ac.in

Robin Bishwajeet robinb15@iimk.ac.in
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