Case Question on setting up the problem (Interviewer led)

Question

Your client ABC Co. sells widgets in the North American market but the last few years have been tough. Profitability of the company has been declining and morale is flagging. They’ve brought you in to help identify and address the core issue. How would you approach this?

For the above case I have put together a basic structure below. My question is here they have mentioned 2 key areas: Profitability of the company has been declining AND morale is flagging. So would the below structure be appropriate or is it advisable to check with interviewer on which one they want to focus on?

A. Internal Financial Performance (Profitability)

Revenue Analysis
- Quantity: Are customers buying fewer widgets? Has the customer mix shifted?
- Pricing & Value Proposition: Are pricing pressures reducing margins? Is the value communicated effectively?
- Sales & Distribution Channels: How effective are current channels? Is there a need to optimize or diversify?
Cost Structure Analysis
- Fixed Costs: Are fixed costs too high?
  Variable Costs: Have variable costs increased?

B. Organizational Health & Employee Morale

Leadership and Culture
- Management Style & Communication: Are leaders effectively motivating and engaging teams?
- Incentive Systems through pay: Do compensation and advancement opportunities align with performance given fall in profitability
Employee Engagement & Productivity
- Work Environment & Job Satisfaction: What are the key drivers behind flagging morale?
- Training, Feedback, and Empowerment: Is there sufficient support and clear pathways for professional growth?

C. External Market & Competitive Environment

Market Dynamics & Customer Trends
- Competitive Landscape: How has competition evolved? Are new entrants disrupting the market?
- Changing Consumer Behavior: Are shifts in consumer preferences impacting widget demand?
Macro-Economic & Regulatory Factors
- Economic Environment: Are broader economic trends (e.g., recession, inflation) affecting sales?
- Regulatory Changes: Have any new policies or regulations impacted market access?

Answer 1

Hello there,

Great question! To solve your doubt related to the additional structure, you have to confirm if the reason behind the drop in morale is related to the profitability. If it is, there is no need to create an secondary issue tree for the organization, since by solving for profits you would be solving for the cultural issue as well.
Clarifying questions are always very important to make sure you are focusing on the correct problem and limiting your scope to what matters.

Good luck with your studies and feel free to reach out if you think you could be benefited by professional guidance :) DM me for a 15 to 20 alignment call free of charge.
Best,

Mari

Answer 2

Hey there 😊,

You’re definitely thinking along the right lines, and your structure shows strong business intuition and depth—nicely done! 🙌 That said, when it comes to interviewer-led cases, it’s often helpful to clarify the objective early to make sure you’re solving the right problem. Here's how to fine-tune this:

✅ Should You Clarify Which Issue to Prioritize?

Yes! When you’re given two problem areas (profitability + morale), it’s always smart to ask:

“Would you like me to focus first on understanding the drop in profitability, or are we equally concerned with the morale challenge as well?”

This shows that you’re structured, client-oriented, and not making assumptions. Most of the time, the interviewer will guide you to start with one (often profitability) and explore the other only if relevant.

🧠 Feedback on Your Structure

It’s very strong! Here's how you could refine and streamline it for interviewer-led format:

1. Profitability Decline (Internal Focus)
– Revenue: volume, pricing, product mix
– Costs: fixed vs. variable, operational inefficiencies
– Channel / customer issues: any key accounts lost or channel pressure

2. Morale (Organizational)
– Tie it briefly to performance: is declining morale a result of financial struggles, or a root cause?
– Look at culture, incentives, leadership, engagement, turnover

3. External Environment (Contextual)
– Market trends, competition, consumer shifts, macroeconomic factors

This makes your structure a bit tighter and easier to present verbally under pressure. For interviewer-led cases, less is more, especially early on. You can always drill deeper if prompted.

✨ Bonus Tip

Frame your structure by saying:

“I’d like to begin by exploring potential drivers behind the profitability decline—both revenue and cost-side issues. If relevant, I’d also like to explore how internal organizational health may be affecting performance, and then step back to assess whether any external market shifts are at play. Would that sound like a good place to start?”

Let me know if you’d like to practice this together—I’d be happy to support! 😊

Best,
Alessa 😇

Answer 3

What are the best strategies for approaching a case question focused on setting up the problem in an interviewer-led format, and how can candidates effectively structure their responses to identify key issues and develop a clear approach to solving the case?

Answer 4

A few notes:

1. You are not assessing if this is a company vs. an industry wide problem.

2. You can detail more on C1 and C2. Two obvious gaps are on suppliers and on distribution channels.

3. The whole B section assumes that there's a morale issue that is driving profitability down. You don't know this. Instead you should consider a broader view on the Company's actions, and whether they changed (or didn't kept up with competitors) policies in price, commercial approach, operations, marketing, etc.