Hi,
I recently started preparing for case interviews and have a question ragarding cases where my objective is to increase profits.
I know that the standard framework would be Profits = revenue - costs, but I start by separating internal and external factors. Then I look at the profits as part of the internal factors and look at things like regulation or competition as a point of external factors.
Do you think this is a good approach or not. I had some doubts recently because I am asking myself: Is units sold (part of the internal factors) really an internal factor as part of the profits because it is heavily influenced by external factors like competition?
How would you include things like competition or regulations in a profitability framework?
Thanks for your help