In this article, we offer our thoughts on the top 5 Business Frameworks.
What is a business framework?
Frameworks are tools to assist you in analysing a problem you are facing. Restructure your thinking and communicate your findings to others. They are also some of the analytical tools you can use to turn data/information into Intelligence. Business frameworks can articulate your strategy and make it simple for the readers to understand. But they should be used sparingly as some consultants throw them around like confetti. This has the effect of destroying their power and the message in the process. These business Frameworks can be used across many disciplines to help answer the questions you need to know.
Porter’s 5 Forces
Maintaining and increasing profitability is key to success, and when competing, you need to have the balance of power in your favour. Porter’s Five Forces is a great tool to understand the power of your current and future position. Porter’s primary Five Forces are:
- The threat of new entrants
- The threat of substitutes
- Bargaining power of customers
- And the bargaining power of suppliers
The SWOT Analysis framework evaluates the Strengths (S), Weaknesses (W), Opportunities (O) and Threats (T) of a project. The quality of a SWOT analysis is often poor because users mistake simple for easy.
PESTLE Analysis (USA) / STEP Analysis (UK)
A good PEST allows you to understand the Political (P), Economic (E), Socio-Cultural (S) and Technological (T) Legal (L) Environmental (E) aspects environment in which you operate.
The BCG Growth-Share Matrix helps you decide how to use your resources and assesses your products or business section’s ability to generate regular profit.
The MECE Framework break problems down into distinct categories. So, making it easy to assess both your problem and possible solutions.
OK, we have a 6th. The McKinsey 7S Framework is excellent at finding and fixing tool to help you find and resolving internal problems.
Business strategy framework benefits
A business framework is only as good as the effort put in. It’s about the experience and common sense and thought put into it. But there is no one size fits all market intelligence framework, and you will likely use many of these (or none of these) during a consultancy project. But these frameworks will save you time and give you somewhere to start. It offers a direction for your information gathering and subsequent analysis. However, these frameworks will save you time, but it’s your insight that will deliver results.
So, in this article, we offered our thoughts on the top 5 Business Frameworks according to Strategy Consultants. And we briefly introduced you to SWOT, PESTLE, McKinsey 7s, BCG Matrix, Porter’s 5 forces and MECE.
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