Knowledge

On a case

A Bengaluru coffee chain's profit fell 20% this year.

Go deeper

• Cost BreakdownCosts have risen, or the client has to cut them.
• Internal / ExternalThe first split for any 'why did this fall?'; one question rules out half the tree.
• Price / Volume / MixRevenue or a cost changed and you need to know why.
• Split by SegmentA total moved and you need to find where; the segment that explains most of the change is the case.
• Short Term / Long TermSetting out actions or next steps at the end of a case.
• 4PsSales fell because customers are buying less, or you are planning a launch.
• Value Chain AnalysisA cost or quality problem whose source is unknown: walk the business end to end.
• 3CsThe first minute of an unfamiliar case, to get your bearings before you choose a structure.

How it is lost

• Numbers Without Benchmarks

  Instead: A figure means nothing alone. Compare it against history, competitors, or industry norms before calling it good or bad.

• Failing to Segment

  Instead: Narrow by time, geography, product or segment before hunting for causes. An average hides the thing you are looking for.

• Unquantified Recommendation

  Instead: Attach the expected impact to the recommendation wherever the case data allows it.

Words you will hear

• Contribution Margin
• Fixed vs. Variable Cost
• Price-Volume Tradeoff
• Unit Economics
• Segmentation
• Break-Even Analysis
• Competitive Benchmarking
• Value Chain
• Operational Efficiency
• Working Capital
• Sensitivity Analysis
• Benchmarking