<aside> <img src="/icons/bookmark_gray.svg" alt="/icons/bookmark_gray.svg" width="40px" /> Source: Cornerstone Research
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<aside> <img src="/icons/gavel_gray.svg" alt="/icons/gavel_gray.svg" width="40px" /> Example case: Intellectual Property
Analysts at Cornerstone Research start contributing to casework upon their arrival. Therefore, it is important that candidates have skills that translate into strategic thinking and quality work product. Not only will the case interview provide you with awareness of our work, it is another tool that provides us with insight into your thought process, comprehension skills, and your ability to articulate ideas.
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A federal court ruled that Duff Products Corporation* had, without permission, used manufacturing techniques patented by ACME Manufacturing Company. ACME contended that the use of its techniques enabled Duff to steal customers, ultimately resulting in hundreds of millions of dollars in lost earning opportunities.
Attorneys for Duff retained Cornerstone Research in order to determine the extent to which ACME’s alleged lost profits resulted from unauthorized use of its manufacturing techniques. The Cornerstone Research team included a marketing professor supported by a senior analyst and an econometrician supported by a manager and an analyst.
The marketing professor and senior analyst examined the sales patterns of the two companies, seeking to determine whether Duff’s sales patterns resembled ACME’s. Working closely with Duff’s vice president of marketing, the senior analyst examined the firm’s sales efforts and reviewed information on its marketing programs. Analysis of a database of customer information revealed that ACME and Duff had sold products through different distribution channels to different customers. ACME sold directly to large institutions, while Duff sold primarily to retail chains patronized by individual consumers. In other words, the analysis showed that Duff grew largely as a result of expanding the market, rather than as a result of stealing customers from ACME.
The econometrician, manager, and analyst focused on identifying and quantifying the causes of ACME’s declining revenue during the period in question. A review of securities analyst reports and industry publications revealed that the primary challenge to ACME’s business had arisen from the introduction of a new technology that enabled other firms to provide institutional customers with better, cheaper products. ACME’s business suffered, not because of the actions cited in the lawsuit, but because ACME’s technology had become obsolete. An econometric analysis of ACME data confirmed these findings.
Having demonstrated that ACME lost little revenue as a result of Duff’s actions, the team brought on an accounting professor to develop a detailed model of the company’s cost structure, in order to quantify ACME’s lost profits. Deducting appropriate costs suggested that ACME had lost little profit. The court relied heavily on the testimony of Cornerstone Research’s experts in awarding ACME only a small portion of the originally claimed damages.
<aside> <img src="/icons/extension_gray.svg" alt="/icons/extension_gray.svg" width="40px" /> We know a case interview can be challenging, so here are some tips that we trust will provide valuable guidance for a strong performance on the case interview.