Frameworks
1. Profitability Framework
Use when: Profits are declining, or client wants higher profits.
Formula: Profit = Revenue – Costs
1. Revenue
Break into price × volume.
Price: pricing strategy, discounting, mix, elasticity
Volume: customer segments, channels, geographies, product mix
Market share: competitive dynamics
External factors: macro, seasonality, regulation
2. Costs
Split into fixed vs variable or cost buckets depending on industry:
COGS (materials, labor, production)
Operating costs (SG&A, marketing, stores, logistics)
Customer acquisition costs
Overheads
Inefficiencies / leakage
3. Context (optional)
Industry trends
Competitor pricing/costs
Customer demand shifts
➡️Profitability cases usually have a root cause in pricing, volume drop,
or rising input costs.
2. Market Entry Framework
Use when: Entering a new country, segment, or product market.
1. Market Attractiveness
Size
Growth rate
Profit pools
Customer segments & unmet needs
2. Competitive Landscape
Competitors
Market concentration
Customer switching costs
Barriers to entry
3. Internal Feasibility
Capabilities
Brand fit
Supply chain / resources
Capital requirements
4. Entry Strategy
Mode: organic, JV, acquisition, partnership
Product positioning
Pricing & distribution
Go-to-market plan
5. Risks & Mitigations
Regulation, cultural differences, operational challenges.
3. Business Growth Framework
Use when: Client wants to grow revenue (organic or inorganic).
1. Grow Within Current Business
Increase penetration
Increase frequency
Increase basket size (upsell, cross-sell)
Improve pricing
Improve retention
2. Expand to New Customers
New customer segments
New geographies
New channels (online, partners)
3. Expand to New Offerings
New products
Premiumization
Bundles / subscriptions
Adjacent categories
4. Partnerships / M&A
Acquire competitors
Vertical/horizontal expansion
5. Operational Enablers
Brand, marketing
Salesforce
Supply capacity
4. Cost Optimization Framework
Use when: Client needs to reduce costs or improve efficiency.
1. Direct Costs
Raw materials
Manufacturing productivity
Labor efficiency
Waste reduction
Automation
2. Supply Chain & Logistics
Warehousing
Transportation
Network redesign
Vendor consolidation
3. Overheads (SG&A)
Marketing efficiency
Corporate overhead reduction
Outsourcing/offshoring
IT rationalization
4. Structural Levers
Footprint optimization (factories, stores)
Process redesign
Make vs buy
5. Indirect Levers
Demand management
Procurement renegotiation
Working capital optimization
5. Product Launch Framework
Use when: Client wants to bring a new product to market.
1. Market Analysis
Customer needs
Market size & growth
Willingness to pay
Competitor products
2. Product Fit
Value proposition
Differentiation
MVP vs full launch
3. Go-to-Market
Pricing strategy
Distribution channels
Marketing & messaging
Partnerships
4. Operations & Feasibility
Production capacity
Supply chain readiness
Sales force capability
5. Financials & Risks
Revenue forecast
Cost structure
Break-even
Risks & mitigation
6. Pricing Framework
Use when: Setting or adjusting price.
1. Value-Based Pricing (ideal)
Customer willingness to pay
Product benefits vs alternatives
Segmented pricing
2. Cost-Plus Pricing (baseline)
Cost structure
Desired margin
3. Competitive Pricing
Market prices
Price positioning
Responses from competitors
4. Dynamic & Strategic Considerations
Elasticity
Discounts/promotions
Bundling
Freemium / subscription
5. Risks
Cannibalization, brand positioning, regulatory limits.
7. Investment Framework
Use when: Client evaluating a major investment (factory, product, store,
technology).
1. Strategic Fit
Does it align with company strategy?
Competitive advantage gained?
2. Market Potential
Market size & growth
Customer demand
Competitive landscape
3. Financial Attractiveness
Revenue projection
Capex
Opex
NPV, IRR, payback period
4. Operational Feasibility
Resources required
Timeline
Technology/skills needed
5. Risks & Mitigation
Regulatory
Execution
Market adoption
Supply chain
8. M&A Framework
Use when: Assessing acquisition target or merger rationale.
1. Strategic Rationale
Market expansion
Capabilities or tech acquisition
Synergies
Defensive move
2. Target Fit
Product/brand alignment
Cultural compatibility
Customer overlap
3. Synergies
Revenue synergies: cross-sell, pricing, channels
Cost synergies: procurement, overhead, operations
4. Financials
Valuation
ROI/IRR
Integration costs
Debt & leverage impact
5. Integration Considerations
Operating model
Org structure
Systems & processes
Retention of key talent
6. Risks
Regulatory
Cultural friction
Overestimated synergies
9. Competitive Threat Framework
Use when: The client is threatened by a new competitor or disruptor.
1. Threat Assessment
Who is the competitor?
What is their offering?
How fast are they growing?
2. Impact Analysis
Market share shift
Pricing pressure
Customer switching
Channel disruption
Supplier relationships
3. Client Vulnerabilities
Weak brand
Outdated product
Slow innovation
High cost structure
4. Strategic Responses
Product upgrade
Pricing changes
Strengthen customer loyalty
Improve service or UX
Partner/acquire
Expand distribution
5. Long-Term Positioning
Redefine value proposition
Invest in moat capabilities
Build ecosystem
10. Process Optimization Framework
Use when: Improve efficiency, reduce errors, speed up operations.
1. Diagnose Current Process
Map steps
Identify bottlenecks
Quantify delays/errors
2. Identify Root Causes
Manual handoffs
Siloed systems
Skill gaps
Capacity constraints
Incorrect KPIs
3. Optimization Levers
Automation
Standardization
Remove redundant steps
Training
Redesign workflow
Introduce technology
4. Implementation Plan
Pilot
Scale
Change management
Tracking KPIs
5. Sustain & Monitor
Continuous improvement
New performance metrics
11. 4Ps Framework (Marketing Mix)
Classic but still relevant for product/launch/growth cases.
1. Product
Features
Quality
Packaging
Differentiation
2. Price
Positioning
Structure
Discounts
3. Place
Channels
Distribution model
Retail presence
4. Promotion
Marketing
Messaging
PR
Loyalty programs
Use 4Ps for marketing-focused questions.
12. Porter’s Five Forces
Use when: Evaluating competitiveness of an industry.
1. Competitive Rivalry
Number & power of competitors
Market share concentration
Price vs value competition
2. Threat of New Entrants
Barriers to entry
Capital requirements
Regulatory hurdles
3. Threat of Substitutes
Alternative solutions
Switching costs
4. Bargaining Power of Suppliers
Supplier concentration
Material scarcity
Switching costs
5. Bargaining Power of Buyers
Buyer concentration
Price sensitivity
Availability of alternatives
Formulas
1. Profitability Analysis
Profit = Revenue – Cost
Revenue = Price × Quantity
Cost = Fixed Cost + Variable Cost
Variable Cost = Unit Variable Cost × Quantity
Profit Margin (%) = Profit / Revenue
Contribution Margin = (Price – Unit Variable Cost)
Contribution Margin (%) = (Price – Unit Variable Cost) / Price
2. Weighted Average Calculations
Weighted Average = Σ (weightᵢ × valueᵢ) / Σ weights
Average Price = Total Revenue / Total Units Sold
3. Break-even Analysis
Break-even Volume = Fixed Cost / (Price – Unit Variable Cost)
Break-even Price = (Fixed Cost / Volume) + Unit Variable Cost
4. Market Sizing
Market Size = Population × Penetration × Frequency × Price
Useful conversions: 1 year = 12 months = 52 weeks = 365 days
5. ROI Investment Evaluation
ROI = (Gain – Investment) / Investment
Payback Period = Initial Investment / Annual Cash Flow
6. Funnel Conversion
Conversion Rate = Conversions / Total Leads
Drop-off = 1 – Conversion Rate
7. Market Share
Market Share = Company Sales / Total Market Sales
Market Share (%) = (Company Sales / Total Market Sales) × 100
8. Customer Lifetime Value (CLV)
Simple CLV = Average Revenue per Customer × Customer Lifetime
Contribution CLV = (Avg Revenue – Avg Variable Cost) × Lifetime
9. Growth Rates
Growth Rate = (New – Old) / Old
CAGR = (Final / Initial)^(1/n) – 1
10. Mental Math Shortcuts
Rule of 72: Years to double ≈ 72 / Growth Rate (%)
Fractions to percent: 1/2=50%, 1/3=33%, 1/4=25%, 1/5=20%, 1/8=12.5%
Doubling trick: (A×B) = (A/2)×(B×2)