There are two major categories of case questions, “back of the envelope” and business cases. Interviewers can use generic questions focusing on topics that candidates use in everyday life, such as videos, ice cream, and airplanes or they can focus on their own industry and their own set of problems. Cases can be about a real company with real problems or a made-up situation.
Back-Of-The-Envelope And Market-Sizing Assumptions
With back of the envelope questions often times all you really have to work with are assumptions. Below are ten common back of the envelope assumptions.
- All cases focus on the US market, unless you are otherwise instructed
- The population of the United States is 320 million, although this number can swing from 300 million to 350 million to make your calculations easier.
- Men and women each represent 50% of the U.S. population.
- The average life expectancy of an American is 80 years.
- Americans per household is 3.2.
- Number of households is 100 million.
Back of the Envelope Questions
- Estimate the size of the U.S. disposable diaper market?
- How many ATM machines are there in the United States?
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1. Our client purchased a popcorn manufacturing plant that packages popcorn for two mid-sized brands. Once he saw the margins, he decided to manufacture under his own brand. What does he need to do?