Hello,

If you are referring to external factors that could influence your client performance I would usually consider just the size and trends of the market and the competition analysis. I don't see many cases where GDP/Capita or similar can help you to solve the case.

I would start the framework with this section, since it is usually short and can give you some interesting insights to better understand your client's situation.

Best,
Luca

For profitability cases, I would avoid overcomplicating it and stick to the basic profitability tree/analysis.

Understanding the nuances of internal vs. external (i.e., industry/market) issues is definitely worth clarifying and exploring in your profitability tree but you run the risk of having a very generic structure if you start with E(P=R-C)M. Specifically, there are always economic factors (e.g., interest rates, inflation, etc.) which have an impact on a company's profitability but you're not really showing your problem solving abilities by starting a case at such a macro-level.

Hello!

I think you are overcomplicating things here -had to read the case twice-!

I would try to start with the inside, and then move to the outside to complement the info that you have already. It´s a more strucctured and logical approach, that would help in the resolution.

Hope it helps!

Cheers,

Clara

I second Adi's answer!

Internal factors (customers, product, revenue, cost etc) first please, then go outside. Starting from outside first wont get you far as those external forces impact pretty much every business in that market/industry.