This case is mostly interviewer-led. The questions should be used to guide the interviewee.
The case is split into three parts:
The first part focuses on understanding the key financials and on calculating the profit development.
The second part is directed towards the possible options for a mid- to long-term strategy.
In the last part the interviewee should give a recommendation and conclusion.
You have been hired to support the owner of a bike-shop as a business consultant. The bike-shop has suffered a significant revenue decline during the last year, and now the owner would like you to assess the situation and options for the way forward.
They want to know last year’s profit, i.e. how it was affected by the revenue decline, and what the priority actions are to survive the next year. (short term)
In addition they would like to understand the strategic competitive position of the shop better and how to increase revenues again mid- to long-term.