![]() ![]() We know from previous experience with a similar client that supplier negotiations would at most improve margins by 2%. The partner on the case's hypothesis is that increasing the profit margin through supplier negotiations will make that happen. She's set a target of $5 million in profit improvement. The average margin on these products is $100, and they sell about 500,000 units per year. ![]() Given a problem, consultants come up with a hypothesis for a solution and then do analysis to confirm or disprove that hypothesis.įor example, let's say the CEO of a large consumer-packaged-goods (CPG) player is looking to improve the profitability of an underperforming product line. Workflow on a management consulting case is an iterative, hypothesis-driven process. A candidate's ability to prioritize analyses by quickly doing math to rule out areas which don't need further analysis.A candidate's ability to quickly confirm or disprove a hypothesis.While it's true that you'll have plenty of analytics tools around you to do simple, and more often quite complex, calculations while on the job, that's not what case math is testing for.Ĭonsulting firms use case math to test two things: The obvious question for most candidates is "Why am I being tested on these mental math abilities? Won't I have Excel for that when I'm on the job?" What case math problems are really testing (Top) In this article, we walk through why consulting firms use case math in their interviews, the essential case math skills and examples of how they can come up, and some tips for how to prepare. ![]()
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