Certified Business Analysis Professional (CBAP) — Question 58

A service provider has seen significant erosion of its profit margin so engages an external consultancy firm to assess its business operations and recommend options to improve profitability. What is the first step that the business analyst (BA) will perform as part of this engagement?

Answer options

• A. Hold a strategy session to understand how best to achieve increased profitability
• B. Organize a requirements elicitation meeting to determine the desired increase in the profit margin
• C. Perform a brainstorming session to determine the desired profit margins for the future state of operations
• D. Conduct activities to understand the reasons behind the erosion of profitability in the current state

Correct answer: D

Explanation

The correct answer is D, as understanding the current reasons for profitability erosion is essential before proposing changes. Options A, B, and C focus on future strategies and goals without first analyzing the existing issues, which is a crucial precursor to improving profitability.