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Consulting Frameworks

This document summarizes various consulting frameworks used for strategic analysis including basic frameworks like the 4Ps, 7Ps, 3Cs, and PESTEL/SWOT analyses as well as "special" frameworks like Ansoff's Matrix, the BCG Matrix, Porter's Five Forces model, and the McKinsey M&A Framework. It provides examples and brief explanations of how each framework is used to evaluate factors like costs/benefits, external/internal forces, growth strategies, competitive positioning, and organizational design in consulting case studies and projects.

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0% found this document useful (0 votes)
664 views10 pages

Consulting Frameworks

This document summarizes various consulting frameworks used for strategic analysis including basic frameworks like the 4Ps, 7Ps, 3Cs, and PESTEL/SWOT analyses as well as "special" frameworks like Ansoff's Matrix, the BCG Matrix, Porter's Five Forces model, and the McKinsey M&A Framework. It provides examples and brief explanations of how each framework is used to evaluate factors like costs/benefits, external/internal forces, growth strategies, competitive positioning, and organizational design in consulting case studies and projects.

Uploaded by

khushi bansal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Consulting Frameworks

Guide
Basic Frameworks: “Special” Frameworks:
- Ansoff’s Matrix
- 4Ps & 7Ps - BCG Matrix
- 3Cs - Porter’s 5 Forces
- External vs Internal - McKinsey M&A Framework
- Qualitative vs Quantitative
- Costs vs Benefits
- PESTEL & SWOT
4Ps & 7Ps
3Cs
External & Internal

Pretty self-explanatory, both headings take care of the respective factors.

For example, Revenue external

internal

Qualitative & Quantitative


Examples of qualitative factors include: quality of business relations, level of customer confidence,
quality of management
Quantitative factors: revenue, cost, profit etc.
Costs vs Benefits

Helps to gauge whether an avenue is worth investing in or not. If the benefits outweigh the
costs, it is an investable avenue.

Else, one might be better of otherwise.

PESTEL & SWOT


Ansoff’s Matrix

- Best suited for growth strategy cases


- Helps understand the inherent risk in
growth scenarios
- Penetration: decreasing prices,
increasing promotional efforts,
acquiring a competitor
- Product development: R&D
investment, acquiring competitor’s
product, strategic partnerships-brand
- Market development: catering to a
diff segment, expansion
- Diversification: related & unrelated
BCG Matrix/ Growth Share Matrix

Helps to evaluate strategic position & potential

Dogs: Usually not worth the investment. Common


measures: divinvest, liquidate.

Cash Cows: Usually most profitable. Cash gained


from them can be used to support Stars for further
growth. Common measures: product development,
diversification

Stars: Usually have the most market share. Potential


to become cows, but can also become a dog in a
rapidly changing environment. Common measures:
market penetration & dev., product development.

Question Marks: Require close consideration as they


can go either way.
Porter’s Five Forces

Commonly used in market entry cases.

Rivalry: Inverse relation, competitors can undercut a


company.

New entrants: Easier is the entry, lesser bargaining power


the existing competitors have, hence, barriers are ideal for
survival.

Supplier: Power wrt how much they can drive the price up.
Fewer suppliers means more dependency.

Buyers: Similarly, this shows how much the buys can drive
the price own.

Substitutes: More the number of substitutes, weaker can the


competitive position get.
McKinsey M&A Framework
Helps in analyzing a firm’s organizational design.
Hard & Soft: Qualitative & Quantitative
Strategy: Clearly articulated, is long-term, helps to achieve
competitive advantage and is reinforced by strong vision,
mission and values
Structure: Organizational chart, shows accountability.
Systems: Processes and procedures that show how a company
functions daily.
Skills: Capabilities and competencies
Staff: How the employees will be hired, retained, retrenched.
includes what type and how many a company may need.
Styles: How the top management interact and manage.
Shared Values: Common set of values guiding an
organization.

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