Algebra and Process Structures in Case Interviews

Algebra structures in case interviews

Equations used to break down complex business problems into quantifiable components (e.g., Profit = Revenue - Cost).

How do algebra structures help create MECE frameworks?

By translating problems into math, they ensure all drivers are accounted for without overlaps or gaps.

What makes an algebra structure effective?

Combining quantitative breakdowns with qualitative hypotheses to generate insights.

When are algebra structures most useful?

Short-term, numerical, operational problems.

When are algebra structures ineffective?

Long-term strategic problems due to uncertain inputs and variable interdependencies.

Why avoid definitional equations in case analysis?

They often restate the problem without offering new insights (e.g., Market Share = Revenue / Market Size).

What's important when choosing an algebraic breakdown?

Select the structure that reveals actionable insights and aligns with the case context.

Name of Method: Algebra Structure

- Profit = Revenue - Cost

- Revenue = Price × Quantity

- Cost = Fixed Cost + Variable Cost

- Hiring Cost = # of Hires × Cost per Hire

Process structures in case interviews

Frameworks that break problems into sequential or interconnected process stages.

When should process structures be used?

For linear, repeatable, operational problems (e.g., sales, hiring, collections).

What is the MECE benefit of process structures?

Each process stage is distinct and collectively covers the full problem.

Why quantify each stage in a process structure?

To prioritize the most impactful areas.

Why draw the process visually in interviews?

It aids clarity, guides analysis, and improves communication.

When do process structures fall short?

In non-linear, strategic, or qualitative problems—use conceptual frameworks instead.

What if the root cause lies outside the process?

Redefine the problem and pivot to a better-fitting structure.

Name of Method: Process Structure

- Cash collection: Invoice → Follow-up → Payment

- Hiring: Sourcing → Interview → Offer → Onboarding

- Manufacturing: Procurement → Production → QA → Shipping

- Sales funnel: Lead gen → Qualification → Conversion → Retention

When should conceptual frameworks be used?

For long-term, qualitative, or strategic problems lacking reliable data.

What are conceptual frameworks?

Systems that group qualitative drivers into logical categories (e.g., Porter's Five Forces).

What is the main benefit of custom conceptual frameworks?

Tailored insights over memorized structures; better fit for unique cases.

How should you structure conceptual buckets?

Using a consistent unifying criterion to ensure mutual exclusivity and relevance.

What matters more than the framework itself?

The quality and specificity of hypotheses within each category.

Name of Method: Conceptual Framework

- Porter's Five Forces

- 3Cs: Company, Customer, Competition

- 4Ps: Product, Price, Place, Promotion

- SWOT: Strengths, Weaknesses, Opportunities, Threats

Segmentation in case interviews

Dividing a problem into smaller parts based on specific criteria (e.g., customer type, region).

What makes a segmentation insightful?

Alignment with meaningful business differences (e.g., baby vs.

When is segmentation most useful?

To separate distinct problems early, add depth to analysis, and detect mix effects.

What is a mix effect?

Apparent metric change caused by a shift in business composition, not by underlying drivers.

Why is segmentation alone not enough?

It shows "where" the issue is but doesn't explain "why"—hypotheses are needed.

How to improve segmentation intuition?

Deliberate practice—review alternative approaches and assess insight value.

Name of Method: Segmentation

- Customer type: Baby vs. Adult vs. Pet diapers

- Product line: Motels vs. Urban Hotels vs. Luxury Resorts

- Time of day: Breakfast vs. Lunch vs. Dinner

- Channel: Retail vs. E-commerce vs. Wholesale

What does the 'opposite words' technique involve?

Structuring problems using contrasts: internal vs. external, supply vs. demand.

Why use opposing perspectives in cases?

To uncover blind spots and deepen analysis.

What is the value of micro vs. macro separation?

Micro = company-level issues; Macro = market forces. Tailor analysis accordingly.

How does this method simplify complex problems?

It breaks them into smaller, solvable parts using consistent logic.

Why is communication emphasized alongside structure?

Structured thinking must be clearly presented to be effective in interviews or client settings.

Name of Method: Opposite Words Structuring

- Internal vs. External

- Supply-side vs. Demand-side

- Micro-level vs. Macro-level

- Revenue growth vs. Cost reduction