If the clients question in the case prompt was why are profits declining and how to turn this around..in the recommendation should you be saying “the profits are declining due to 1) x and 2) Y factors and to turn this around I would do Z for 2 reasons ..and then state the reasons”..
or should you directly state I would recommend client do Z for 2 reasons (and in the reasons you state why profits are declining)? I heard the 2nd one sounds more top down..is this true?
I agree with Francesco on the overall approach:
If you are asked in the problem statement to identify the reasons for declining profitability then you must include that in your solution. If not, then also there is no harm in doing so.
Having said that - there are some things that you must consider when doing the recommendation:
Firstly, re-iterate the objectives of the case:
1. Identify causes for the declining profit
2. Propose solutions to reverse the decline
And then go into each in the final synthesis:
1. Profit was declining due to (if possible and suitable, break down into revenue and cost drivers):
2. Based on our analyses, to reverse the decline in profits, it is recommended to (if possible and suitable, break down into revenue and cost-related recommendations):
Generally, try to have a structure (revenue vs. cost is the most common way), instead of a laundry list of reasons or recommendations
Very likely in most cases (because cases are a very simplified version of a real project), you would also be able to provide suggestions on next steps or additional analyses pending. Again, if possible and suitable, maintain the revenue vs. cost structure (or another structure, depending on the business situation). Being very structured until the very end of the case is one thing that could differentiate you from the rest of the candidates
Hi there,
If the initial question includes two questions, you should answer both. Your first option is more clear and is the one I would recommend.
As a general structure I would recommend the following:
1) Repeat the objective. This will ensure you are answering to what is relevant for the case. Forgetting to repeat the objective is one of the most common mistakes candidates do in the conclusion and can lead to answer the wrong question. As an example:
2) Provide an answer-first solution. You don’t have to present everything you found out in the case at this stage, only the main conclusion and its supporting factor. If the conclusion is not clear 100% as you have not analyzed all the elements of your structure to derive a definite yes or no, you can provide a preliminary answer based on the elements you have identified.
3) Provide risks / next steps suggestions. You should always have next steps/ risks in your conclusion. You can refer to the elements present in your structure that you did not have time to cover or to risks that emerged during the case:
Best,
Francesco
Hi there,
If they ask “why” and “how to turn it around", then absolutely you need to answer both!
In terms of your stylistic choice for how you state this, either of your options work as long as you articulate clearly…if chosing I personally perfer the latter because it's leading with the answer (generally preferred).
Hi there,
you are right in the sense that the second version might sound more top-down - however, in this case, you would simply miss out on answering one of the two questions.
Thus, I would advise you to always make the recommendation in two parts like “Thank you for approaching me for the question why … . We have found out that the main drivers are … . To turn this situation around, I would advise you to … for the reasons … .”
I hope that helps,
Hagen
(edited)
Hi!
Always state the objective and then communicate top-down your recommendation, risks, and next steps.
Best,
Anto
