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A client's profits have fallen and the cause is unknown. What is the most MECE first split of the problem?

  1. A. Revenue drivers versus cost driversCorrect
  2. B. Internal factors versus competitor actions
  3. C. Short-term issues versus long-term issues
  4. D. Marketing problems versus operations problems

Takeaway. The first split of a profit problem should mirror the equation that defines profit, because arithmetic branches cannot overlap and cannot leave anything out.

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