How industries work: the toolkit
Is a 3 percent margin good?
The prompt
Client A is a grocery chain in Poland with revenue of PLN 8,000 million and operating profit of PLN 240 million. Client B is a software company with the same operating margin. Using the benchmark table above, is each margin good? Then, using the sales-to-capital figures (grocery 4.65, software 1.54, general utility 0.3), how much capital would each of these three kinds of business need to add PLN 1,000 million of yearly sales?
Before you reveal anything, plan your own structure and first move on paper. Then reveal one part at a time and compare.