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The MECE Principle, which stands for Mutually Exclusive and Collectively Exhaustive, can be used to analyze business performance by ensuring that all potential factors affecting performance are considered without overlap. This principle can be applied in creating a Profitability Tree, a type of issue tree used to analyze company profits. By listing all Mutually Exclusive (ME) items and Collectively Exhaustive (CE) items, a comprehensive analysis of the business performance can be conducted.
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First and foremost, use this slide to define the basics of your problem and list all of your Mutually Exclusive (ME) items, as well as all of your Collectively Exhaustive (CE) items. Then communicated these items to your team or stakeholders. With slides, such as this one, you can create and share with your team a Profitability Tree. Profitability trees are a type of issue tree that is created with the sole intent to run a thorough analysis of the company profits.
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