Crack the Case. D. Ohrvall

Handout Guide

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12 Month Price Trend

Unit Volume Past 2 Years

Candidate: Do you have any pricing data? Interviewer: Here’s some unit volume and price

data for the past 2 years. What trend do you see?

Main Insight: As private label prices declined, total Houdini sales volume also declined. Also, relative to last year, volume is down considerably. Prices for both Houdini and Smith’s have remained stable.

Post-implementation Utilization Change

(Utilization Points below 90% threshold)

Plant 32 -5%

Utilization Percentage Change in

Percentage Points

Candidate: Do you have Houdini prices vs. private label prices?

Interviewer: Here’s another way to look at the price gap (from slide A) between Houdini and the private label brands. What jumps out at you?

Main Insight: The gap increased for several months and then leveled off. The price gap correlates to the volume drop (slide A).

Candidate: Do you have any more detail on the unit sales?

Interviewer: Here’s a detailed view of the volume on slide A. What’s the insight here?

Main Insight: Unit sales have been off consistently at the end of ’02 and into ’03. The volume drop corresponds to the increase in price gap between Houdini and the private label brands.

Candidate: Do you have any plant utilization information?

Interviewer: Here is some utilization information by plant that you may want to review. How much is the loss? Why do you think the utilization rates went down?

Main Insight: 15 points x $50K = $750K x 8 months = $6M. Utilization rates fell because the new equipment was considerably more efficient.

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Interviewer Feedback

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6. You drove the case.

12

Clearly in control, you took the case to a conclusion

Analytics

7. You analyzed the data well on a piece by piece basis.

8. You integrated data well and reached insights (saw the big picture).

Recommendation

9. Your final recommendation was to the point and data driven.

10. You were persuasive in making your final points.

Total Score:

(10-60)

Before giving your score, have the candidate do the Self Assessment at the back of the case pack. What can you tell the candidate that will help him or her prioritize his prep going forward?

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MVM™

Zone 5

S P E C I A L T

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OK

Weak

“Since we’re talking about a loss in revenue I would like to start with volume and price. Let’s figure out where the problem is with these two variables and then discuss other issues as appropriate – like what the private label competitors are doing.

(Not a bad start. You covered the same topics as the Good answer but in a shorter way. I like how direct you are and how you understand that some issues may not be relevant later in the case. You could have mentioned costs and how they may be a factor in helping Houdini deal with this competitive threat.)

“With sales slipping Houdini needs to look at everything that impacts revenue: the sales force, store shelf space, prices, competitor share gains and of course volume. Do you have data on any of these.”

(Well thanks for the laundry list. We’ll have a lot, maybe too much, to discuss. I would appreciate a little more focus when you start the case and when you ask for data. But, you seem confident, so I’ll wait and see where this case is going.)

Candidate Review Sheets

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A Logical Flow Using the FRAME Method™ A Logical Flow Using the FRAME Method™

R - Read the Audience

Interviewer: Play the Silent Partner role and see how t qhe candidate responds. Give data when asked but do not overwhelm him with additional facts or “free” information. Silence is an excellent test to read the candidate’s confidence and ability to stay calm.

SuggestedSuggestedAnswers,Answers,DiagramsDiagramsandandBehaviorsBehaviors

Good Reactions/ Body Language:

•Firm, dry handshake, leaning slightly forward

•High energy

•Consistent eye contact during the introduction

•Warm smile, worn most of the time

•Relaxed manner in small talk and getting situated

•“Ready to talk” body language, sitting on the front half of the chair, eager to discuss the case

•Strong confident voice

Average Reactions/ Body Language:

•Half-hearted handshake

•Average energy

•Frequently breaks eye contact (indicates nervousness or insecurity)

•Forced smile

•A little tense and awkward in getting set up

•Moving around a lot in the chair, leaning or sitting back too far, indicating disinterest or laziness

•Shaky voice at times

Poor Reactions/ Body Language:

•Soft, weak or moist handshake

•Low energy

•Little to no eye contact

•No smile

•Awkward conversation; palpable tension

•Sitting completely in the back of the chair; slumping over the desk; putting arms on knees in the football coach position

•Nervous or weak voice