Hi,
I have been solving this McK Style Case.
Simply, our client who sells only one product line has faced a serious decline in Revenue, this company CEO wants us to find the cause and solve the issue.
Now comes the first case question.
Tell us, at a high-level, how you would initially determine the cause of the revenue issue.
So my throughs were since the questions only wanted to determine the cause, for now, I should investigate the following two:
Market: To find out if this is a market-wide problem and so on,
Company: and here I said I wanted to find out if it is driven by price change or volume. The price will take us to mostly look at the competition, while volume would make us look at Customer behavior, the product itself, competition as well.
But the case itself suggests a very wide answer to this first question, from the beginning it wanted to look at:
Industry
Competition
Product
Company
Customers
There answer suggest a wider look over the cause of revenue without root-cause the issue first. What are your thoughts?
Great detailed answer, just figuring out something. your answer is relatively the same but your starts with Internal side of the problem and wants to understand the numerical driver than moves to more qualitative side, is that right? just make sure that I have gotten right.
Yes! You first need to use top-down logic to isolate the conceptual (mostly numerical) source of the observable problem. Only THEN you start the qualitative assessment, because now you already know very concretely WHAT you are looking for.