Go To Market Strategy Framework Mckinsey – Case interview framing or counseling framing is probably the most critical part of a case interview. Good case framing makes cases successful, while poor framing makes cases difficult to solve.
By the end of this article, you’ll have learned four different strategies for creating a unique and tailored framework for each case interview.
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You’ll apply these strategies to learn how to create case frames for the six most common types of case interviews.
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The case interview framework is simply a tool that helps you structure complex questions and break them down into simpler, smaller components. Think of frames as brainstorming different ideas and organizing them into different categories.
Let’s look at an example: Coca-Cola is a major producer and retailer of non-alcoholic beverages such as soft drinks, juices, sports drinks, and tea. They want to grow and are considering entering the beer market in the US. Should they come in?
To decide whether Coca-Cola should enter the beer market, you probably have a lot of different questions to ask:
That’s not a very structured way of thinking about the problem. The order of the questions is random. Also, many questions are similar and can be grouped together.
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A case frame will provide a structure to organize these ideas and questions in an understandable way.
Note that we have simplified the list of questions into four main categories. These broad categories are often referred to as “bucket” frameworks. Note also that we have grouped similar issues under each framework category.
This case framework tells us which areas to investigate in order to make a recommendation to Coca-Cola. It also clearly shows the questions we need to answer under each area.
This is the power of the case interview framework. It simplifies complex business problems into smaller and independent components that we can solve one by one.
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So how do you develop a case framework? The following sections reveal four powerful strategies for creating a unique and tailored counseling framework for each case interview.
When you conduct a case interview, you need to decide which framing strategy to use. Depending on the type of case interview you get, some framing strategies will be more effective than others.
Therefore, choose the case framing strategy that is easiest for you based on the type of case you receive.
This case framing strategy can be used for any type of case. This is the most time-consuming strategy, but produces the most unique case frame that is most appropriate for a given case interview.
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To create an entirely new framework, ask yourself which 3 – 4 statements must be true to be 100% sure of your suggestion. These 3 – 4 areas become the buckets in your frame.
Once you have your framework buckets, brainstorm a few questions for each bucket that you need to answer.
Let’s go back to the Coca-Cola case example where we were asked to determine whether they should enter the beer market. Which 3-4 statements must be true for us to recommend that Coca-Cola enter the beer market?
Next, let’s add a few bullet points below each area to add more detail to our case skeleton.
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To determine whether the beer market is attractive, we need to understand the market size, market growth rate and average profit margin.
To assess whether a market is competitive, we need to know who the competitors are, what market share they have, and whether they have differentiation or a competitive advantage.
To determine whether Coca-Cola has the capacity to make beer, we need to know whether there is a capacity gap, or whether there are significant synergies that Coca-Cola can leverage.
Finally, to determine the expected profitability of entering the market, we need to know what the expected revenue is, what the expected cost is, and how long it will take Coca-Cola to break even.
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You can repeat this process for each case interview to create a great case framework.
Creating a case framework from scratch can be time consuming. Because of this, many interview candidates make the mistake of using memory frames for case interviews.
Candidates use one memorized frame for each case, or a different frame for each type of case interview.
The problem with using memory frames is that they are not tailored to the specific case you are trying to solve. When you have an atypical business problem, your framework areas or buckets will not be fully relevant.
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Rather than creating a new frame every time, the second case framing strategy provides a way to speed up the process while still creating frames that are unique and appropriate to the case. Plus, you don’t have to memorize several different frames.
If you receive a case, mentally go through this list and select the 3 – 5 areas that are most relevant to the case.
If that list doesn’t provide enough areas for your frame, brainstorm and add your own ideas as areas to your frame.
This strategy ensures that your frame elements are relevant to the case. It also shows that you can create a unique, tailored framework for any business problem.
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Let’s go back to the Coca-Cola case example where we were asked to determine whether they should enter the beer market.
This strategy is a shortcut to creating a unique and tailored framework for any business problem. Even if you and your friend use the same strategy, you may end up with different frames.
That’s perfectly fine. As long as the buckets in your framework are key domains and relevant to the case, your case framework will significantly outperform most candidates’ frameworks.
You don’t have to develop a framework from scratch every time to create a great case framework. This case framing strategy can be applied to over 90% of case interviews.
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For the remaining 10 percent of case interviews, learn and use the following two case interview framing strategies.
The first two case framing strategies can be applied to more than 90% of cases. In some cases, however, it may be necessary to identify and focus on the various stakeholders involved in running or running a business.
Let’s look at an example: Your client is a non-profit blood bank. They have volunteer nurses who go to schools and businesses to collect blood from donors. They then sell this blood to hospitals, which use it for emergencies when transfusions are needed. Currently, Hearts4Lives is not profitable because they cannot collect enough blood to sell to their hospital partners. What can they do to fix this?
For cases involving many different stakeholders, it is helpful to look at each stakeholder and determine what each stakeholder can do to resolve the issue.
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As with the previous case framing strategy, in some cases you may need to focus on improving or optimizing a specific process.
For these cases, the main areas of the case framework will be each major step of the process.
Let’s look at an example: Your client is a waste management company that manages a fleet of drivers and garbage trucks that visit doors to collect trash that is then dumped in a city landfill. They are obliged to collect domestic waste once a week. Recently they have failed to meet this requirement and are backed up by demands to clean up the trash. What is causing this problem and how should they be fixed?
Where process and efficiency improvements come into play, it can be useful to look at the different components or steps in a process.
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Once you have systematically listed all the steps in the process, you can identify pain points or bottlenecks that are causing problems and identify ways to improve the process.
A profit story might look like this: “An electric car maker recently had to deal with declining profits. What should they do?”
What is the reason for the decline in revenue? Is it because fewer units were sold? If yes, is the purchase focused on a specific product line, region or customer segment?
Or is the drop a result of falling prices? Are we selling products at a lower price? Has the sales mix changed? In other words, are we selling more low-priced products and cheaper products?
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In terms of cost, what is the reason for the increase in cost? Is it because of increased variable costs? If yes, which cost elements were increased?
Or does the increase in fixed costs lead to an increase in costs? If yes, which fixed costs were increased?
Next, you need to gain a qualitative understanding of the factors contributing to the decline in profitability you identified in the previous step.
Observe customers, have their needs or preferences changed? Have their buying habits or behavior changed? Has their perception of the company changed?
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Looking at the competitors, are there any new players entering the market? Have any existing competitors recently