Hi all,
In a profitability case where the objective is to identify the key drivers behind declining profitability, how strictly should I interpret the instruction to “identify the areas”?
For example, if I’m analyzing a restaurant and notice in the data that delivery sales have dropped and rent has increased, should I:
(1) Take a focused approach and briefly highlight the top 1–3 issues (e.g., “delivery sales have fallen” and “rent costs are rising”), or
(2) Take a more analytical approach and substantiate my points (e.g., “delivery sales fell by 15%, which is significant, and rent is 20% higher than competitors, so these are the most impactful areas to prioritize”)?
My instinct is to go with the latter — being more precise and analytical — but I wonder if that might go beyond what the interviewer is actually asking. Any thoughts on how literally we should interpret such instructions during a case?
Thanks in advance!