Hi,
My question regards the structure of the following profitability case for which only the prompt is given.
“Palm Tree Plantation Exports grows, sells and leases twenty different varieties of tropical plants throughout the US. They posted a net income of USD 95 M, down from USD 105 M last year. Yet their market share grew by 7 %. What is going on and how can we turn it around?”
I would assume that the issue here is either:
a. The industry is doing badly and the client happens to be just doing a little better than others. Could be a revenue or a profit issue.
b. If it is not an industry wide problem, it must necessarily be the case that the client suffers from increased costs.
Is what I am thinking correct or are there any other scenarios that I am missing?
Thank you,
Maria
Thank you!