Common Consulting Frameworks (How and When to Use) (PowerPoint PPTX Slide Deck)

The 7S framework illustrates how an organization's vision influences its strategy and operational elements. Central to this model is "Strategy," defined as an integrated set of actions delivering exceptional value to a specific customer base while maintaining a sustainable cost structure. Surrounding "Strategy" are 5 interconnected components: Skills, Shared Values, Structure, Staff, and Systems. "Skills" refers to essential activities for a compelling value proposition, highlighting the importance of core competencies. "Shared Values" encapsulates the beliefs guiding the organization, forming the foundation for decision-making. "Structure" pertains to organizational design that supports strategy and communication. "Staff" emphasizes the necessity of placing the right people in key roles for effective execution. "Systems" encompasses processes and technologies that ensure operational efficiency. The dynamic interplay among these elements indicates that changes in one area can impact others, making this framework a valuable tool for aligning vision with execution.

The Directional Policy Matrix (DPM) is a strategic tool for evaluating business segments, offering a detailed analysis compared to the BCG matrix. Developed by Shell, the DPM incorporates a manufacturing perspective and aligns with Porter's analysis, focusing on long-term profitability and market positioning. It categorizes market sectors based on 2 axes: market attractiveness and competitive position, divided into quadrants that suggest strategic actions. Unattractive and weak segments should be divested, while attractive and strong segments are identified as leaders, encouraging growth strategies. The DPM allows for a quantifiable assessment of market potential, guiding resource allocation decisions and optimizing investment strategies.

This PPT slide presents a life cycle analysis for the U.S. airline industry, focusing on product lifecycle's impact on profitability and growth trends. The vertical axis represents sales, while the horizontal axis indicates time, showing the evolution of aircraft models. Key milestones include the 1978 deregulation, which significantly influenced industry growth due to increased competition and market access. Advancements in technology and operational efficiencies, indicated by "Increased Plane Capacity," contributed to this growth phase. Specific aircraft models like the 707, DC-8, 727, 737, and DC-9 illustrate different lifecycle phases, with demand fluctuating over time. The "Demand Life Cycles" section highlights how as certain models mature, new ones emerge, reflecting the industry's cyclical nature. Understanding these life cycles aids strategic decisions, enabling companies to innovate or phase out models effectively, improving resource allocation and market responsiveness.

The "Five Forces Analysis" framework identifies key dynamics shaping industry competition. The first force, "Supplier Power," assesses how supplier concentration and input differentiation impact pricing and quality, affecting profitability. "Barriers to Entry" highlights challenges for new entrants, with economies of scale and brand identity influencing market access. The third force, "Buying Power," evaluates customer leverage over suppliers, where high buyer concentration can pressure firms to reduce prices or improve services. "Threat of Substitutes" examines alternative products fulfilling the same need, focusing on price performance and switching costs. Finally, "Industry Competitors" analyzes rivalry intensity among existing firms, influenced by industry growth and product differentiation. Understanding these forces enables firms to strategize effectively and influence market dynamics.

The primary barrier to mobile phone purchases is a perceived lack of need, with 65% of consumers citing this as the main reason. Other barriers include high cost (26%) and device weight (19%). Addressing perceived need is essential for increasing market penetration. The option matrix evaluates strategic options to stimulate demand, including a customer education program, a loyalty program, and enhanced product features, each with projected costs and demand increases over one and 5 years. Adding product features emerges as the most attractive strategy, offering the highest potential for new business and favorable ROI, indicating that enhancing offerings could shift consumer perceptions and boost sales.

This PPT slide presents a cost curve analysis for the copper industry, illustrating the relationship between cumulative production output and full cost per pound. The graph features 2 demand lines: "Demand_old" and "Demand_new." Increased copper demand has enabled new market entrants with higher operational costs. The vertical axis shows full costs in cents per pound (42 to 85 cents), while the horizontal axis represents cumulative production output. The cost structure is depicted through bars indicating that full costs decrease with rising output due to economies of scale, before leveling off or increasing at higher levels. The new demand shifts cost dynamics, suggesting traditional cost structures may no longer apply, necessitating new strategies for existing players to remain competitive.

This PPT slide presents a framework for supply chain analysis, focusing on vertical integration and market concentration across Suppliers, Manufacturers, Distributors, Retailers, and Consumers. The technique allows for detailed examination of market concentration at each supply chain stage, influencing strategic decision-making. The company is involved in 2 stages, with varying market positions, indicating differing operational dynamics. Market share percentages of various players help identify growth or consolidation opportunities. Analyzing competitor and partner positions enables informed decisions on resource allocation, partnerships, and strategic initiatives, providing executives with insights into supply chain complexities and market dynamics.

This PPT slide analyzes the U.S. airline industry using the SCP (Structure-Conduct-Performance) framework, highlighting 4 main eras: Regulated Period, Deregulation, Market Expansion, Price War, and Consolidation. During the Regulated Period, airlines focused on service and cost pass-through, with key players including the government and major airlines. The Deregulation era shifted the focus to route acquisition and price competition, leading to new entrants and innovative marketing strategies. Market Expansion saw increased travel, while the Price War emphasized competitive pricing, including the rise of discount airlines. The Consolidation phase resulted in bankruptcies and alliances as major airlines adapted to market changes, concentrating on core operations. This analysis provides insights into historical context and competitive dynamics in the airline sector, guiding future investments and operational strategies.