I have questions with regard to frameworks (I'm following Victor Cheng's profitability and business situations, realizing they can be adapted to the individual situation of course, if anyone would have time to answer/discuss, sorry in advance if it's long):
1.In a "what factors should client X consider when entering the market", I often start off by mentioning 1. i.Customers, ii.Product, iii.Company, iv.Competition. I often include the market-sizing as a first point under i.Customers since it seems most important to consider the market size and growth first (althogh I'm unsure whether this could perhaps be done as a seperate heading, but minor detail).. Questions that come to mind:
--Sometimes it feels more natural to say I'd like to look at potential Revenues and Costs first. But that would effectively be a mix of frameworks and I'd like to be consistent. When using the business situations, Revenues would be decided by i. Customers/Market Size and iv. Competition (since depending on nr of competitors, I would know our market share of total market and thus Revenue). Costs, in turn, would be decided under iii. Company. Especially financial feasability and investment costs would be determined here, which could also be a starting point. This feels like jumping around a lot in the framework to explain this to the interviewer though! Anyone else has the same "issue" and perhaps advice on how to do it? I could stick with this approach, but sometimes it feels very odd.
2. When given a Profitability-case, of course there are more external variables to consider, beyond the Profitability-framework. How do you guys do it here in the beginning; do you simply start with Profitability with no mention that you will later switch framework to business situations if needed? (Victor gave no initial mention that he would look at additional factors in one of his LOMS, but to me, it could appear to the interviewer that one forgot..) Perhaps one could say something like: "I'll start off with Revenues minus Costs, this is what I want to know within each, etc, etc. [give specific mention, e.g. segment break-down, over time, industry wide or not..], then I might switch to look at i. Customers, ii.Product, iii.Company iv.Competitors to analyze more in depth". That feels a bit awkward too though! In addition, you have effectively already touched upon the customers and competition then in the profitability.
Again, I realize there's no "right" answer here and that it depends on the situation. Mainly looking to see if anyone else is confused and whether there's any relief :) Many thank you // Xie xie // Danke schön
Feel free to answer here or PM me for further discussion