Hello, I have a question relating to profitability-issue type cases, e.g. why are client's profits declining and how to increase them?
This type of case has 2 different questions to answer: what's the root cause of the problem and how to solve it. Assuming we find out the issue is coming from a decline in division A and the solution would be to shut down this division, how would you best structure the conclusion:
1) I would recommend shutting down division A for the following reasons: a) it's the major driver of profit decline, b) xx, c) yy
2) the client's profits are declining due to a decline in division A, driven by the contracting market size. Thus, I would recommend to shut down division A and focus on expanding the business in division b/c
Or is there any other preferable way to conclude such a case?
Thank you in advance for sharing your views!