Hi there,

You're not wrong. But you're also not right ;)

Never forget the OBJECTIVE.

While you are right about the risk to cutting low margin products, in this case you can only include it as a risk. It's a good risk to include, but you can't let it detract from the case.

Why?

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The case prompt states:

"The financial ratios have deteriorated in recent years. In particular, gross profit margin decreased significantly. Combined with a significant increase in shipping costs, this led to a negative result for the first time in the recently ended fiscal year and a resulting strained financial situation. Against the background of expected stagnating sales for the current financial year, short-term action is required.

The board of Onlinestar asks you for an analysis of the reasons for the negative result as well as a derived recommendation for action"

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Your recommendation to offer free shipping cuts into margins. Your resistance to cut low-margin products means you will continue to have the same short-term issues with financial ratios. Your resistance to semi-premium is incorrect because we need that attractive margin.

So, you're right, but you're wrong because you forgot what the objective was