Firm:A
KearneyCaseNumber:Casesetup(factsofferedbyinterviewer):YourclientisamanufacturerofbicyclesTheyhavebeeninbusinessfor25yearsTheymanufacturerandsellthreecategoriesofbicycles:Racingbikes:Highend,highperformancebikesforsophisticatedcyclistsMainstreambikes:Durable,butnotoverlycomplicatedbikesforeverydayridersChildren’sbikes:Smaller,simplerversionsoftheirmainstreambikesforchildrenProfitsatyourclienthavedecreasedoverthepastfiveyearsQuestion:Whatisdrivingthedeclineinoverallprofits
Whatrecommendationsmightcorrectthesituation
Suggestedsolutions:Thefirstquestionistodeterminewhathascausedoverallprofitstodecrease
Toaccomplishthisthecandidatemustfirstunderstandwhathastranspiredineachofthethreeproductcategoriesoverthepastfiveyearsduringwhichprofitabilityhasslipped
Thefollowingarequestion