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BeBeyond Business
Frameworks Introduction
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The table on next page is an abstract of useful frameworks and tools in
Business. You can apply these frameworks to understand better about
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marketing, business case analysis.
Who should read these frameworks?
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♦ Applicants for Marketing: please read 4P analysis, Porter’s 5 C forces
♦ Applicants for Consulting: please read carefully all frameworks
frequently used in case interview.
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♦ Applicants for Sales: please read PRODUCT part in 4P analysis to think
about product difference.
♦ Applicants for Auditing: please read the form to understand what
business risk is. 计
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BeBeyond Career Workshop, Shanghai
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www.BeBeyond.com Tel: 021-6422 8530Typical business issues and related frameworks
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BUSINESS ISSUES POTENTIAL FRAMEWORK
Profitability (in general
operations related question)
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Market Expansion (in 计
general strategy related
question)
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Opportunity Assessment:
Always “think internal and
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external factors”
- Product (e.g. new product
launch)
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Product Life Cycle curve
- Business Unit Core competencies
Value Chain
- Overall market - Porter’s Five Forces
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- BCG matrix
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- Assess valuation / Net Present Value
maximization
Competitive Analysis 3C’s (Customer, Company, Competition)
SWOT (Strengths, Weaknesses, Opportunities, Threats)
Marketing Strategy 4P’s (Product, Price, Promotion, Place)
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www.BeBeyond.com Tel: 021-6422 8530Market expansion and Opportunities Assessment
• Market expansion matrix
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• BCG Matrix
• Choosing a strategy
• Industry analysis: Porter’s five forces
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• Internal - External factors
• Acquisition analysis
• Value Chain Analysis 计
• Product Life Cycle
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Strategy Low Cost Differentiation
Required Requires large and dedicated Requires ability to identify and deliver
Capabilities manufacturing facilities. Lean overhead. on non-price based purchase criteria.
You need 学strong marketing, flexible
manufacturing, etc.
Typical Commodity, low-growth markets belong In these markets, customers make
Markets to this category, and in general, markets计 their purchasing decisions following
where products present no differentiation non-price factors like quality, delivery,
and little brand awareness. features, etc.
Market Markets are mature or decli会ning Markets can be emergent, growing or
Timing declining
Examples Grain, gold, paper, floppy disks, Breakfast cereal, formal attire, wine
transportation
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Porter’s 5 Forces - Industry Analysis
This framework is applicable to new business opportunity and firm strategy questions.
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www.BeBeyond.com Tel: 021-6422 8530Barriers to Entry increase with: Buyer Power increases with:
♦ Economies of scale ♦ Bargaining leverage
♦ Proprietary product differences ♦ Buyer concentration, Small
♦ Brand recognition number of buyers
♦ High switching costs for the ♦ Low buyer switching costs
customer ♦ Buyer information
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♦ Capital requirements ♦ Buyer ability to integrate
♦ Difficulty to access distribution backward
channels ♦ Availability of substitute products
♦ Absolute cost advantage of ♦ High price elasticity
incumbents ♦ Low p学roduct differentiation
(cid:57) Learning curve advantages ♦ High brand recognition of buyers
(cid:57) Access to necessary inputs products
(cid:57) Proprietary low-cost product ♦ Low impact on buyer's product
design quality.
♦ Government regulation, 计♦ Decision makers' incentives
restrictions on entry
♦ Expected retaliation
Rivalry increases with: Supplier Power increases with:
♦ Industry growth 会♦ Differentiation of inputs
♦ High Fixed costs + low variable ♦ Importance of supplier's
costs product/service in cost
♦ High value added ♦ Structure of industry.
♦ Intermittent overcapacity ♦ Lower Switching costs of
♦ Low produc计t differentiation suppliers
♦ Low brand recognition. ♦ Higher impact of inputs on cost or
♦ Low switching costs. differentiation
♦ Number of competitors. ♦ Lower Number of substitute
♦ Corporate stakes. inputs
♦ 审 High fixed costs or highly ♦ Higher threat of forward
specialized assets. integration.
♦ High barriers to exit. ♦ Lower importance of volume to
suppliers
♦ Lower Supplier concentration
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Threat of substitute increases with:
♦ Relative performance of substitutes.
♦ Lower switching costs.
♦ Higher buyer propensity to substitute.
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www.BeBeyond.com Tel: 021-6422 8530Internal-External Factors
This framework is especially applicable to new market and company strategy questions.
The question you are looking to answer is whether the firm strategy aligns internal factors
with external environmental considerations.
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Internal Considerations
(cid:57) Core competencies of the firm
(cid:57) Company mission and goals (consider its objectives for employees, the community,
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the environment, technology, etc.)
(cid:57) Company organizational structure
(cid:57) Firm resources (labor, technology, internal systems)
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Environmental Factors
(cid:57) Industry trends (including a five forces analysis)
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(cid:57) Constraints (government regulations, laws, union/labor agreements, societal
pressures, etc.)
(cid:57) Competitor activities (plans for expansion, financial strength, etc.)
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Product Life Cycle Curve
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Phase 1
On this phase, the focus should be on R&D and engineering. You should refer to product definition
and need generation with little or no competition.
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This phase should emphasize marketing. The challenge is now to manage rapid growth while
maintaining quality. You should expect new entrants
Phase 3
This phase focuses on manufacturing and cost. Prices fall and competition intensifies.
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Phase 4
High cost and low share competitors exit. This phase focuses on being low-cost or niche player.
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www.BeBeyond.com Tel: 021-6422 8530Competitive analysis: The 3 C’s - Customer,
Company, Competition
This is a basic framework but is very useful. It is especially applicable to business strategy and
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new market opportunity questions.
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www.BeBeyond.com Tel: 021-6422 8530Marketing strategy: the 4 P’s
Apply this framework to marketing and new product development questions.
Product
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I. Must fit within positioning decision and market segmentation (e.g. high end, low
end; consumer, industry)
II. Differentiated good vs. commodity
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III. Features and capabilities
IV. Reliability, quality, brand name, reputation
V. Packaging, size
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VI. Service, warranties
VII. Future strategy for the product
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Placement (Distribution)
I. Channel (decisio计n based on product specifics, level of control desired and
margins desired)
II. Coverage - tradeoff between coverage levels and costs
III. Inventory - levels, turnover, carrying costs
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IV. Transportation - alternatives, efficiencies, costs
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Promotion
I. The Buying Process:
BA. Consumer awareness for the product
B. Interest for the product
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C. Trial
D. Repurchase
E. Loyalty
II. Select sales method: Pull (advertising...) or Push (discount to distributor...)
III. 5 categories of promotional efforts:
A. Advertising: medium, reach (share of target market reached) and frequency
(number of times reached).
B. Personal Selling: when direct contact with buyer is needed.
C. Sales Promotion: Incentives to consumer, sales force and channel members.
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www.BeBeyond.com Tel: 021-6422 8530(cid:198) Consumer incentives: coupons, refunds, samples, premiums, and contests.
(cid:198) Trading force incentives: Sales contest, Point of purchase displays, spiffs
(payments to dealers), trade shows, franchise reputation, in-store
demonstrations.
D. Public Relations and Publicity.
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E. Direct sales.
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Price
I. Considers both retail price and discounts.
II. What strategy? MC=MR? Skim (high price, make profits now)? Penetrate (low
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price, gain market share)?
III. Seek volume or profits?
IV. Perceived value, cost-plus-margin pricing?
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V. How does price relate to the market, size, product life cycle, and competition?
VI. Economic incentives to channel (commissions, margin).
VII. Establishes barriers to entry.
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