In question 1: Why is it assumed that volume decreases if market share decreases. The total growth of the market means that total volume has increased over time.

Hi Rick, 

I just checked out the case, and I genuinely think you are correct.

It is stated in the case that the problem is "declining profitability", and then you are asked to figure out why. The interviewer (and Interviewee if they ask) is then told that costs have remained constant. They are also told that price has remained unchanged. Thus, if you approach the problem from a Profit = Revenues-Costs Tree, then only remaining option that could be decreasing profitability is indeed volume.

However, as you accurately point out, the data provided just does not match the statement that profitability has decreased. According to that data, we are making more revenues than we were 10 years ago, and if prices have remained the same (as stated), then that can only mean that we have more volume than before.

Thus, I do believe the case itself is flawed. The data provided does not match the conclusion the interviewee is supposed to arrive at, which has to be "decreased volume" due to how the other 3 potential causes have been kept constant.

Hope this helps mate!

Sincerely, 

Thor 

Hi Rick;

The market BIN is a deterred fold and the deterred volume is a slogan of invited virtue. The declining profitability is a slogan for invited benchmarking in cylinders of adjusted cost of goods sold (COGS) on an income statement/balance sheet. The market mix remains unchanged due to market volatility that can be adjusted at ~1% threshold. Therefore, due to sloped emblems of adjusted COGS one sees the value of sloped emblems.

Regards

Sindiso 

I see you received a great answer below already.

If you're casing at the moment, I'm adding here a resource with all the most common formulas and terms:

• Cheatsheet: The Must-Know Consulting Terms for Interviews

Best,
Cristian