interviewing for Business, Operations, Data, or Financial Analyst roles.

Your recruiter will let you know if your interviews will include case

interviews. This video is designed to show you what an Analyst case at

Capital One may look like. Candidates should not expect the same content

in their on-site interviews. Capital One has conducted case interviews for

analyst hiring since our founding in the 1990's. As Capital One continues

to challenge the status quo in financial services, we keep drawing from

what has made us great in the past: hiring great people and giving them

the chance to be great. In our Analyst casing process we look for candidates

who think powerfully. Our Analyst roles require rigorous problem solving skills.

Our cases evaluate HOW you go about solving problems, not just the specific

answers you come up with. We assess how well you grasp the concepts; how

well you analyze the data you have; and how well you communicate your results.

This video demonstrates a case Capital One once administered for Analyst roles.

The example gives you a sense of how our interviews work and what may make someone

successful in a Capital One case interview. You may note that Capital One cases tend

to be more quantitative than the standard case interview, given the nature of the

Capital One Analyst's role. This example showcases the three parts you would see in a

typical case: Introduction of the business situation and case framework. Calculations

based on key concepts and drivers of the case. Your recommendation –

what is the business decision you would make?

Some helpful tips to keep in mind during the case.

Take notes on the key information.

Ask questions.

Show your work as you do it.

Talk through your thought process.

Let's begin.

[ CASER] Shall we start the case?

[CANDIDATE 1] That'd be great.

[ CASER] In this case, we will be talking about Ice Cream.

[CANDIDATE 1] Ice Cream?

[ CASER] Yes, this case is not about financial services. A lot of the

cases we deal with are not. We find it gives us a better idea of how you

think vs. how much you know about a specific industry. A lot of problems

we deal with on a daily basis are broader than banking.

[CANDIDATE 1] Interesting...

[CASER] In this case you are president and CEO for our ice cream corporation.

There's a CFO and COO, but you determine the business because you own the

product and sales. First question: What are the key factors you would take

into consideration as you build strategies to grow profits for this company?

[CANDIDATE 1] Let me take a second to gather my thoughts.

Ok... I think I have an idea of some of the key factors.

But first, can I ask a couple clarifying questions?

[NARRATOR] It's a good idea to write down your thoughts and ask questions a

long the way.

[ CASER] Sure thing.

[CANDIDATE 1] When you say I "own product" - I assume that means I essentially

own the products we offer? For example -- we have chocolate

and vanilla, but we could also add swirl?

[ CASER] Yes. Keeping in mind that ice cream flavors are well established..

[CANDIDATE 1] Of course. One more question: you mentioned I would be responsible

for sales. So, my job would be to maximize the amount of ice cream we sell?

[ CASER] Yes – keeping in mind that your job is

to maximize profit, not just sales.

[CANDIDATE 1] So I'd be responsible for setting up prices as well?

[ CASER] Yes.

[CANDIDATE 1] Got it. So, to answer your question: "what are the key

factors I have in mind?": I think the key things I think of are the

number of sales we have today; the prices we charge; the cost of making

ice cream; the number of sales in the market overall.

[NARRATOR] This candidate clearly shows his perspective on the concepts.

Writing down his answers helps him communicate and recall these later in

the case. Let's see how other candidates may have answered this question.

[CANDIDATE 2] I'd think about the level of competition and the chance

we have to increase sales & profits by changing prices.

[NARRATOR] This candidate gave a shorter answer.

[CANDIDATE 3] There are a lot of factors I have in mind.

I'd think about what markets we're in, and

the sizes of those markets.

I'd want to know how many competitors we have, and their size.

Lastly, I'd like to understand what our price is and how that compares

to our competitors and to other comparable goods... like cookies for example.

[NARRATOR] This candidate mentioned a broad list of items.

The caser will ask more questions and the candidate should try to

focus his answers to identify the most important factors.

[CASER] That's a pretty broad list – kind of everything that the CFO and COO

wouldn't be concerned about. That's a great start. Can you talk to me a

little about how you might prioritize these, since it might be difficult to

keep everything in mind at once?

[CANDIDATE 3] Sure. The order I listed them is pretty much the order of

importance. What's our number of markets; what's our penetration in each

of those markets, and what would happen if we change price?

[CASER] Let me give you a little background on this: We're already a leading

domestic supplier – we're in every market, and not looking to add any.

We know the competition's fierce, but defined: there are national and regional

players, we're not expecting any new entrants into the market or much

innovation. Just steady competition.

[CANDIDATE 3] Then pricing would be the most important driver.

[CASER] I'm glad you mentioned pricing – pricing is the one factor we can

control, we're not looking to enter any new markets, and we know the

competition's going to make up their minds... But we can control pricing.

[NARRATOR] If you have a long list, we may try to focus you

in order to dive deep on one dimension of the case and to get to a

recommendation. This is very common and not something to worry about.

Here is an example of how that might happen in an interview.

[CANDIDATE 1] So... of everything we discussed, changing price is the key factor?

Because if we changeour price, it'll affect our volume of sales and our total profit...

[CASER] Ok, that makes sense.

[CANDIDATE 1] So pricing is a key lever – since we own that decision.

But I have to highlight the role of competition. Not so much who and

how many competitors there are, but just the fact that there is competition.

If we raise our price people will switch to other brands. And, if we lower our

price, competition will react. So we need to understand how that will play out.

[CASER] Ok so let's talk about the risk in that strategy.

[NARRATOR] The conceptual section discusses the key levers that drive upside.

There are also risks to any option that you should talk about.

[CANDIDATE 1] Well the risk here is a price war. If we lower our price

and consumers switch to our brand, competition will just lower price

and those consumers will switch back.

[CASER] What would you do to mitigate this risk?

I'd focus on promotional pricing rather than a permanent price change.

Run a discount for a period of time, and then return to normal pricing

before competition reacts.

[CASER] So we've gotten most of this situation figured out. Are there any other

factors you can think of?

On top of pricing? I don't know; I think there is an upside to Brand

loyalty after the promotion ends. People tried our brand when it was

priced lower, and now they prefer it.

[NARRATOR] There's one additional concept here, but this candidate is

struggling with it. Asking questions helps get the candidate back on track.

[CANDIDATE 1] One thing I'd like to clarify. Are we assuming that ice cream

is a non-perishable?

[CASER] Yes, it is non-perishable.

[CANDIDATE 1] So, there could be a post-sale effect?

[CASER] Please explain.

[CANDIDATE 1] Well during the promotion, sales go up. But after the

promotion, maybe sales go down. People took advantage of the sale and don't

have to buy as much once it ends. Does that make sense?

[CASER] That makes sense.

[CANDIDATE 1] So, then there's a risk that our promotion eats away future sales

and profits. People buy extra while prices are low, and then buy less when prices

return to normal. Then the promotion doesn't drive as much profit as we think.

[NARRATOR] When you reach a conclusion, there's no need

to continue to ask questions. Assert the insight that you have.

[CASER] Yes, this is an important risk. Your actions have a pulling

forward effect, and through the cycle your net profits even out some.

We'll call this factor "stocking-up" from now on.

[NARRATOR] This candidate realized a key assumption and quickly reached

this concept by discussing it with the caser. Not every candidate will realize

this as quickly as this one. As we'll see in the analytical section, some

problems are easy and some are more complex. Some have long answers and

some have shortcuts. Some candidates get the solution right away, while some

candidates need to ask questions. The key is showing the caser you grasp each

new concept as the case continues. To recap what the key concepts are:

Role of promotional pricing.

Temporary to avoid price war.

Risk of the stocking-up effect.

[CASER] So far, we've laid out the key concepts in this case.

Let's go into some calculations. I'll give you some data and ask

you to calculate total monthly profit. Today, we sell cartons of

ice cream for five dollars.

[CANDIDATE 1] Five dollars a carton.

[CASER] Our cost is one dollar per carton.

[CANDIDATE 1] How much of that is fixed or variable cost?

[CASER] Assume that fixed cost is negligible and this is all variable cost.

[CANDIDATE 1] Cost is one dollar per carton.

[CASER] Also, we'll use a very simplified number to make the calculations

easier. Assume we sell just one hundred cartons each month.

[CANDIDATE 1] Demand is one hundred cartons per month. I should be

able to calculate the current profit from this. Five dollars per carton, times

one hundred cartons is five hundred dollars total revenue.

One dollar cost times one hundred cartons is a hundred dollars

total cost. Subtracting out five hundred dollars revenue minus one

hundred dollars cost is four hundred dollars total profit.

[NARRATOR] Make sure to clearly write equations & calculations.

There are often multiple ways to get to a result in a case.

[CANDIDATE 2] I can calculate per unit profit – five dollars minus

one dollar. That's four dollars profit per unit. With one hundred

units, our monthly profit is four hundred dollars.

[NARRATOR] There are multiple ways to answer this.

Think creatively and solve in the way you think is best.

[CASER] Now calculate the monthly profit if we run a 10% off promotion.

[CANDIDATE 2] I think I need more information.

[NARRATOR] Think proactively about what you need to solve

a problem. If you don't have it, the caser might.

[CANDIDATE 2] How does quantity of sales change when we change prices?

[CASER] Great question. I have one more piece of data that might help.

The elasticity of demand is negative four.

[CANDIDATE 2] Can you explain that please?

[NARRATOR] If you don't understand a concept, ask. And if you think you

understand it but aren't sure, then explain your view and ask the caser to

confirm. The caser wants to work through this with you.

[CASER] Sure. What do you need to know?

[CANDIDATE 2] Can you define elasticity please?

[CASER] Elasticity is defined as percent change in quantity over percent change in price.

[CANDIDATE 2] Ok. So, if price increases by one percent, quantity would

decrease four percent, and vice-versa for a price decrease.

For this example, if we drop price by 10%, quantity increases by 40%?

[CASER] You got it.

[CANDIDATE 2] Ok, that makes sense. I should be able to calculate

the new profit now. First is the new price per carton. Five dollars was

our original price per carton, we reduce price by ten percent so the new

price is four dollars and fifty cents. This makes total revenue of four-fifty,

times one hundred and forty cartons, and total cost one dollar times one

hundred and forty cartons. Let me just calculate this... That's six thousand

three hundred revenue minus one hundred forty cost. So, six thousand

one hundred and sixty is our new total profit. Let me double-check that...

it should not have gotten so much bigger. Let‘s see – one hundred and forty

times four point five is six hundred and thirty dollars. Ok that makes more

sense. So, monthly profit in the promotion is four hundred and ninety dollars.

[CASER] That makes a lot more sense.

[NARRATOR] Stay organized to avoid mistakes in calculations.

Listen to your caser, double-check your work, and correct as quickly as

possible and keep in mind: there's a shortcut here that makes this a lot easier.

[CANDIDATE 2] Per-carton profit is now three dollars and fifty cents. With