Once you’ve chosen to embark on a management consulting career, you can naturally expect pressure to resolve numerous business cases. In order to analyze a case in a logical manner, consultants use applicable frameworks. A framework enables you to analyze a problem from different perspectives, and come up with an in-depth evaluation and generate effective and practical solutions, all on a step-by-step basis.
Three of the more popular and effective frameworks are described below.
Five Forces Analysis
Named after its developer, Michael Porter, the Five Forces Analysis aids in understanding a business’s current competitive position. As shown in the diagram above, profitability is affected by five major forces:
- Rivalry with other companies that provide the same products or services
- The power of suppliers to increase the price of raw materials, labor, and other components for the product or service
- Threats posed by new firms that may enter the market and compete successfully with established players
- Ability of the customers to find viable substitutes for products or services
- The effects of the capabilities, behaviors, and power of buyers on the product or service
Introduced by British logician John Venn, the Venn Diagram illustrates logical relationships between two or more subjects. The diagram usually consists of overlapping circles. The factors that make subjects different are detailed in the outer circles; factors that make them similar are noted in the intersection between circles. This diagram type has seen extensive use in many different fields, including business and management.
In consulting, Venn diagrams can be useful for:
- Demonstrating differences and similarities between best practices of different companies in a particular industry
- Comparing and contrasting qualities of competitors’ products, as a factor in market demand
The SWOT Matrix is used to analyze internal and external factors affecting a product or business undertaking:
- Strengths – benefits and desirable qualities of a product or project
- Weaknesses – negative features or areas for improvement in a product or project
- Opportunities – technological advances, market developments, and other external factors that may boost a product or project
- Threats – obstacles that spring from external factors such as economy, environment, politics, etc., which can adversely affect a product or project
Business and Marketing Slides
Check our other business and marketing slides for other frameworks that can help present the current situation of your company.