← Applying business knowledge to a complex global problem
Diagnose, then follow the effect (every paper)
Cause from the resource → mechanism → the measure the question names. Exam-style Sales in Belgium were lower than expected One possible reason, and the effect on profit. CAUSE from the resource: a local competitor launched a similar product at a lower price, and the resource shows Hardibox has no local brand presence. MECHANISM: buyers who see no difference between the products choose on price, so volume shifts to the competitor. EFFECT ON REVENUE: fewer units sold at the same price → revenue falls. EFFECT ON PROFIT: fixed costs (the warehouse lease, salaried staff, marketing commitments) continue regardless, so profit falls by a LARGER percentage than revenue. ✓ The last step is the one that scores: naming the fixed-cost effect shows the mechanism, not just the direction.A fast check before moving to the next part
- Is the cause a specific fact from a named resource, not a guess?
- Have I named the measure the question actually asked for (profit, market share, profitability)?
- Does the mechanism follow at least two steps, not stop at the first, obvious effect?