I'm trying to develop my own business situation framework, which will be easy to follow and will be broad enough for really tough cases.
I used to apply standard one (Customers, Competition, Company, Product), but sometimes I realize that this framework is really tight and there are situations when I'm trying to "insert" the case in this frame. What I don't like about it:
1) Where can we put really important market metrics (e.g. market size, growth, profits for entry strategy)? If it's a geographical expansion, where can we put comparisson of different locations?
Thus, I see it's logical to add a different block, which is Market(s) metrics, where I can ask straightforwardly what are the revenues (or interviewer can ask me to calculate market sizing), growh, profits, etc.
2) Where can we put barriers to entry? Usually it's not only related to competition, so it also can be a separate block (e.g. legislation, capital requirement, cultural gap etc.)
3) I understand why we separate product and company, and usually I put price to the "product" part. Is it better to uncover pricing part in the "company block"?
For now, what do you think about following structure for business situation (of course it is still situational):
- Market(s) metrics (size, growth, profits)
- Customers (segments, preferences, price sensitivity)
- Competition (fragmentation, best practise, core capabilities, possible M&A?)
- Company (revenue, profit, growth, costs structure, resources, management, marketing, core capabilities, distribution channels)
- Product (product lines, pricing, how does it match consumer preferences, USP's etc.)