Differences between Tactical demand planning and integrated business planning?

Supply and demand are economic concepts that directly influence pricing and competition. The law of supply and demand states that the availability of a product (supply) and the desire for it (demand) determine its price. When demand is high and supply is low, prices rise – and vice versa. This knowledge is not only theoretically important, but also plays a crucial role in consulting projects, particularly when developing market strategies.Let’s take a closer look at supply and demand in case interviews! ✨ Market Equilibrium and Its SignificanceIn an ideal market, there are many buyers and sellers, all with access to the same information. If supply exceeds demand, a surplus occurs, forcing sellers to lower their prices. This price competition may cause some companies to exit the market, restoring equilibrium. Conversely, high demand with limited supply drives prices up, attracting new competitors.Understanding market equilibrium is critical for companies, as they often face pressure to keep their prices competitive in such scenarios. ⚖️When you understand the dynamics of supply and demand, you can make informed decisions and offer strategic recommendations.💡 For more insights on market strategies, check out our articles in the Case Interview Basics like market entry and market sizing!

Capability-based Planning is a strategic planning method that helps you shift focus from what an organization has to what it’s actually capable of doing. It's not just about resources like budget, IT, or staff, but about the abilities that those resources enable in the first place.So instead of asking "What do we have?", Capability-based Planning starts with the more useful question: "What can we achieve with what we have?" That might sound a bit abstract at first, but it becomes super relevant in complex, fast-changing environments – think VUCA world.Like many management approaches, Capability-based Planning has its roots in military planning. There, the focus has always been on what needs to be done in critical situations, not just on the resources available. This mindset was later adopted in the business world and has become a popular tool in management consulting – especially when it comes to preparing companies for the future.If you're into strategic management, business development, or digital transformation, Capability-based Planning offers an exciting way to think beyond traditional planning. Phases of Capability-Based PlanningThere are five phases that are divided into CBP:  Phase 1: Definition of Business StrategyThe first step involves defining a clear and precise business strategy. This strategy should encompass the organization's long-term goals and the path to achieving these goals.Phase 2: Identification of Core CapabilitiesOnce the business strategy is set, the core capabilities required to implement this strategy need to be identified. These capabilities include not just technical skills but also organizational and procedural competences.Phase 3: Assessment of Current CapabilitiesIn this phase, a thorough assessment of the organization's current capabilities is conducted. This involves an analysis of strengths and weaknesses and the gaps that need to be filled.Phase 4: Development of a Capability PlanBased on the preceding analyses, a detailed plan is developed that outlines how to develop, improve, or acquire the necessary capabilities to support the business strategy.Phase 5: Implementation and MonitoringThe final step is the implementation of the capability plan and continuous monitoring and adjusting of capabilities to ensure they align with the evolving business strategy. Conclusion: Focus on What Really MattersCapability-based Planning is a flexible, forward-thinking method that shifts attention from traditional resources to actual capabilities. If you're planning to work as a consultant or strategist, Capability-based Planning gives you a practical framework to help organizations reach their goals – even in a rapidly changing environment.Especially if you're working on strategy, digital transformation, or organizational development, Capability-based Planning is a valuable tool to go beyond conventional planning.