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Root Cause Analysis for Margins

HardMetrics00:00
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Welcome to your interview.

The question is on your right: Root Cause Analysis for Margins. Take a moment with it first.

Talk your thinking through with me if you like - when you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes). Discussion and graded submissions share your five interviewer interactions, so spend them well.

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Problem

A major retail client is experiencing declining profit margins despite stable sales volumes. How would you structure an analysis to identify the root cause?