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Contributions: Gabriela Ramos and Pedro Gonçalves
Among the challenges in Business Analyst interviews, the well-known “case interview” often raises questions. This type of exercise – common in many companies – aims to assess logical reasoning, technical and behavioral skills, business sense, and how the candidate handles everyday problems.
This article is the first in a three-part series about Nubank’s case interview! By clicking here, you can find the other parts of the series, along with many other important topics about the day-to-day life of Business Analysts here at Nu!
Below, we break down the steps of a case interview, with practical examples. Watch the video below for more insights.
What is a case?
A case is simply a real business problem or situation. It may or may not be inspired by specific challenges at Nubank, but the scenario presented is secondary; the important thing is how the candidate approaches solving it.
When scheduling a case interview, we want to evaluate how the candidate would face typical challenges in the field and make decisions in real situations. This allows us to observe essential traits for a BA’s day-to-day work at Nubank:
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Example of a Nubank case
The best way to explain what a case is is by showing one:
Below, we have an example used at Nubank, along with some common answers given to it. This analysis helps illustrate what we consider a good answer – and what we’re actually evaluating.
“Case: You’re a manager at a startup that sells healthy food via online delivery. Currently, you sell portions individually. Your strategy isn’t working well, and you’re losing money. You’re considering offering a subscription service where customers would pay annually and receive multiple portions throughout the year.”
The first step in a case interview is the presentation of the context, or the problem that needs to be solved. In the example above, we’re discussing a food delivery service looking to offer annual packages. All subsequent questions will be based on this context.
Question 1: What data or points would you like to analyze to decide if this idea is feasible or not?
It’s common to want to respond quickly, but structuring your reasoning before starting can bring clarity. Below, two example responses:
Candidate A: “I would think about the gross revenue. Perhaps our current customers would switch to the plan, but this might reduce profitability per customer. I’d also consider that people might get tired of the product, which could affect retention. I think I’d stick with the current model.”
Candidate B: “I would split the analysis into two questions: is it financially viable? And is it feasible to implement? First, I’d analyze the market, demand, and competition. I’d also consider the cannibalization of the current model and operational feasibility – for instance, if we can maintain quality and adapt logistics.”
Answer analysis
Structuring a case answer
In questions like the example, the objective is to see if the candidate can prioritize relevant factors and communicate clearly. A common mistake is improvising without a logical structure, which can compromise clarity.
To build a solid response, follow a few steps:
Step 1: Understand the question
Before answering, ensure you understand its objective. Analyze the statement carefully. In the previous example, the statement says:
Step 2: Understand the purpose of the question
What does the question imply? What is the real challenge of the case?
In our example, the goal with the new business plan is to have a profitable company, that is, to generate profit. Still, since the statement is not explicit, it would be perfectly appropriate for the candidate to ask if by “feasible idea” the interviewer means only profitability or if there are other investment constraints.
Clarifying these points is important, as there may be cases where the statement is solely about increasing sales and revenue – in which case, it wouldn’t make sense for the candidate to spend time exploring cost-cutting measures.
Before starting to answer, the candidate can take a few minutes to list what they consider important to keep in mind when responding. This can be done out loud, by talking to the interviewer, or silently – to be shared later.
The important thing is to try to create a comprehensive structure of points that shouldn’t be overlooked when solving the problem.
A simple alternative for organizing thoughts is to divide into pros and cons. With just a small segmentation, the candidate makes their reasoning much clearer for the interviewer.
Step 3: Segment the answer
Another way to divide could be based on factors affecting production, sales, and the market, as shown in the following image.
The advantage of structuring thought this way is the ability to start explaining more directly. “I’d like to explore some factors regarding how this decision would affect our production, sales, and market position.”
By beginning with the three areas they want to address, the candidate shows that they are thinking about the problem as a whole, even before citing the factors. Additionally, this type of organization allows the candidate to present an exhaustive list of everything that needs to be analyzed in each area.
Another benefit is the ability to identify gaps in reasoning before starting the explanation. By looking at their notes, for example, the candidate might realize that they’re focusing too much on production and too little on the market. Other factors that could be added to the list are demand and the forecast for growth in the annual delivery plan segment.
There are various ways to structure cases, and you can find numerous articles and videos on this topic online. However, it’s worth noting that there isn’t a single framework that works for all problems. Moreover, the purpose of the case is not to see if the candidate has memorized a structure but to understand if they can hear a problem and think of a way to structure it that helps in reasoning and conveying their thought process to the interviewer.
This applies not only to the first question but to the other questions in the case as well.
For instance, in the case above, Candidate B gave a complete answer. In this scenario, the interviewer might challenge them with another question:
Question 2: Imagine you implemented this change (food subscription model). How would you outline a plan to determine if it’s worth it?
A good way to approach the answer is to highlight all the variables that need to be taken into account:
Financial Factors:
Non-Financial Factors:
When discussing financial factors, examining the entire scenario is essential. Though it may seem simple, many candidates end up addressing revenue or cost individually and forget that the most important thing is the combination of factors. “The cost dropped by half with the change, but almost no customer adopted it” or “Many customers adopted it, but costs went up, and we couldn’t adequately forecast new demands and manage logistics.”
In these examples, it’s clear that focusing only on one aspect could lead to incorrect conclusions about the situation.
What is evaluated in a case?
Using the case example from this post, the candidate has already demonstrated several technical skills and logical reasoning ability.
At this stage, the interviewer goes further and provides some figures for analysis – enabling a more comprehensive evaluation of these skills.
Question 3: “You mentioned financial factors, and we want to find out the number of subscriptions needed to reach the breakeven. How can we do this?”
Breakeven refers to the point in business where there’s neither profit nor loss.
It’s essential for the candidate to ask for data outlined in the previous framework. We might provide a table or simply mention some case figures (like fixed costs, subscription value, production cost, and distribution cost per meal, for example).
At this point, the candidate’s ease with numbers and problem structuring will be evaluated.
The answer to this question will be a subscription count, and you may even use a calculator to find it. However, the key isn’t the number itself but the reasoning process in solving the problem.
Some candidates hesitate before diving into calculations, but this is expected.
The first tip for staying focused is to jot down your objective on paper. Some candidates forget the initial question – in this case, “number of subscribers for breakeven.”
Another important tip is to listen to the interviewer. It’s normal for them to ask you to disregard certain factors or numbers at different points to facilitate the case flow.
An effective practice to connect with the interviewer in the numerical parts is to explain how you intend to tackle the problem and which calculations you’ll use to reach the answer.
The interviewer’s role is to facilitate the process, confirming when something is clear and guiding you if you lose track or miss a point.
Qualitative Evaluation
Beyond quantitative evaluation, qualitative assessment is also crucial at this stage. We’re attentive to how the candidate communicates ideas, structures thought, and responds to information adjustments:
In this food subscription case, a follow-up question could be:
Question 4: “You launched the product but didn’t achieve the expected number of customers in the first few months – meaning the cost per customer is rising. What are the possible solutions for this situation, given that cost reduction is not an option?”
The goal here is to see if the candidate has basic business sense and understands that such a decision involves hundreds of factors.
For example:
In these examples, the candidate could even discuss what they consider pros and cons for each of these scenarios.
In many case stages, there isn’t necessarily a right answer. The logic, reasoning, and ability to structure problems are much more important, as well as the way to articulate the points raised.
Therefore, we don’t seek people who know how to solve the specific problem presented: we seek people who understand the complexity and know how to weigh, sensibly, the pros and cons of each decision.
The case interview is a fundamental part of our selection process. It helps Nubank understand how people handle day-to-day situations that are very common to the routine of BAs– in addition to being crucial to assessing if a candidate meets the role expectations and aligns with our way of working.
With the examples above, we hope to help those participating in selection processes with case interviews.
After all, nervousness and lack of experience with this type of interview can hinder well-prepared candidates for the challenges we face at Nu.
Completing your selection process with confidence is essential, and this guide is just the first step! This is the first part of a three-part series that explores the world of case interviews at Nubank.Follow the rest of the series for more insights, practical tips, and other topics that are part of the daily life of Business Analysts here. Continue your journey by clicking here and dive into content that will help you prepare for the challenges and opportunities Nubank offers!
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