E.g. addressing a decline in profitability.
The standard issue tree would include revenue and cost, but where would you include an overview of the market/competition/etc.? I usually make a side note but that doesn't make it very MECE - is there a different type of issue tree to use?
I feel like this is such a simple question but can't figure out how to structure this properly.
Hi Kay,
this is indeed one of the fundamental things that you need to learn in order to rigorously disaggregate the value drivers of a business. The driver tree allows you to identify the numerical drivers and sub-drivers of profits. The qualitative elements (such as consumer demand, market structure, company operations, etc.) then have to be mapped to the sub-branches of the tree!
Hence, your analysis has two steps. Imagine you want to run a diagnostic on why profits have fallen. First you need to identify the numerical driver of the problem (e.g., customer base is shrinking). This gives you an understanding of the WHAT. The second step is the understanding of the WHY! To do this, you have to examine the qualitative elements that link to the "number of customers"-sub-branch in your driver tree (e.g., competitive situation, market entries, new substitutes, relative price point, customer preferences, product/service properties vs. competition, etc.)
You can think of these qualitative elements as the typical business situation framework elements (see V. Cheng et al.) - but here, they are not hanging in the air, but they are embedded in a rigorous thinking frame which emerges from the disaggregation of value drivers and linking it to qualitative reasons.
Cheers, Sidi
Hi Sidi, would you communicate the two steps seperately or after the Revenue analys of the numerical drivers, you will look at potential factors that are causing the problem? — Theo am 30. Mär 2020
It is to practice as many cases as possible - both as interviewee and as interviewee. Here are a couple of guidelines to help you get started
In order to get into consulting, the case study is the most important element of the interview. Here, you can learn the specific skills and concepts to solve them.
1 Q&AThe Issue Tree Framework can be used to break down the problems of a case to its components and significantly increase your speed during case interviews.
The case study is the most important element of the case interview, which you'll have to nail in order to get into strategic consulting. Here you can learn the specific skills and concepts necessary to solve them.
The Value Chain - as e.g. by Porter - is a classic framework to structure the activities of a business and add value to products by transforming resources.
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MBB Structuring Mastery von Sidi 
