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Commonly used thinking methods in business analysis
Business analytics is the process of using data to help businesses make better decisions. It helps businesses understand their customers, competitors, and markets and develop better strategies. Business analytics can help companies make better decisions in the following areas: * Product development: Business analysis can help companies understand customer needs and develop products that meet those needs. * Marketing: Business analysis can help businesses understand their target customers and develop effective marketing strategies. * Sales: Business analytics can help businesses understand their sales channels and develop effective sales strategies. * Operations: Business analytics can help companies understand their operating costs and develop effective operating strategies. * Financial: Business analysis can help businesses understand their financial position and develop effective financial strategies. Business analytics can help businesses improve profitability, reduce costs and increase efficiency. It is an important part of the success of any business.
Edited at 2023-11-19 10:08:07- bacteria
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Commonly used thinking methods in business analysis
- bacteria
This is a mind map about bacteria, and its main contents include: overview, morphology, types, structure, reproduction, distribution, application, and expansion. The summary is comprehensive and meticulous, suitable as review materials.
- Plant asexual reproduction
This is a mind map about plant asexual reproduction, and its main contents include: concept, spore reproduction, vegetative reproduction, tissue culture, and buds. The summary is comprehensive and meticulous, suitable as review materials.
- Reproductive development of animals
This is a mind map about the reproductive development of animals, and its main contents include: insects, frogs, birds, sexual reproduction, and asexual reproduction. The summary is comprehensive and meticulous, suitable as review materials.
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Commonly used thinking methods in business analysis
McKinsey's Seven Steps to Poem: Seven Steps to Solving Problems
Step 1: State the problem
The second step is to decompose the problem (logic tree)
The third step is prioritization (funnel method)
The fourth step is to analyze the issue
The fifth step key analysis
The sixth step summarizes suggestions
Step 7: Communication
The cycle starts over again
SWOT analysis method: Situation analysis based on competitive environment and competitive conditions
S Advantage
W Disadvantages
O Chance
T threaten
The so-called SWOT analysis, that is, situation analysis based on internal and external competitive environments and competitive conditions, is to list the various major internal strengths, weaknesses, and external opportunities and threats that are closely related to the research object through investigation, and in the form of a matrix Arrange, and then use the idea of system analysis to match various factors with each other for analysis, and draw a series of corresponding conclusions, and the conclusions usually have a certain degree of decision-making.
Using this method, we can conduct a comprehensive, systematic, and accurate study of the situation in which the research object is located, and then formulate corresponding development strategies, plans, and countermeasures based on the research results.
TOWS analysis method: strategy formulation based on SWOT
SO developmental strategy
Leverage internal strengths
Take advantage of external opportunities
WO turnaround strategy
Take advantage of external opportunities
Overcome internal weaknesses
ST defensive strategy
Leverage internal strengths
avoid external threats
WT retreat strategy
Overcome internal weaknesses
avoid external threats
PEST analysis model: macro environment analysis
politics Politics
economy Economy
society Society
technology Technology
PEST analysis is mainly used to analyze the macro environment and think about the company's current environment or the market environment it will enter.
Political environment: the political system, economic system, laws and regulations of a country or region, etc.
Economic environment: social and economic conditions, including GDP, consumption structure, fiscal revenue, etc.
Social environment: consumers are education level, religious beliefs, customs, values, etc.
Technical environment: new technologies, new processes, new materials emerging in the market and their development trends, and investigating their maturity in application fields
Porter's Five Forces Analysis Model: Analyze the basic competitive situation of the industry
Porter's five forces model analyzes the basic competitive situation of an industry by bringing together a large number of different factors into a simple model. The five forces model identifies five major sources of competition, namely the bargaining power of suppliers and buyers, the threat of potential entrants, the threat of substitutes and, lastly, competition between firms in the same industry.
In a certain sense, competitive strategy stems from an enterprise's deep understanding of the competition laws that determine industry attractiveness. In any industry, whether it is domestic or international, whether it produces products or provides services, the law of competition will be reflected in these five competitive forces. Therefore, Porter's five forces model is a strategic analysis tool often used by companies when formulating competitive strategies.
SCP analysis model: how to analyze the impact of external shocks
When a company suffers an external shock, the SCP analysis model will analyze the impact of the external shock from three perspectives: specific industry structure, corporate behavior and operating performance.
external shock shock
Industry structure structure
corporate behavior conduct
operating results performance
Boston Matrix: Building the Right Product Structure
problematic product question marks
Revenue characteristics: Low, unstable, but growing Cash flow: negative Strategy: Determine whether the business can develop into a "star" business or degenerate into a "skinny" business
Star Products stars
Revenue characteristics: high, stable, growing Cash Flow: Neutral Strategy: Continue to invest in growth
Slim dog products dogs
Revenue characteristics: low, unstable Cash flow: neutral, negative Strategy: divestment
Taurus products cash cow
Revenue characteristics: High and stable profits Cash flow: high, stable Strategy: Maximize Extraction
SPACE Matrix: Strategic Position and Action Evaluation Matrix
It mainly analyzes the external environment of the enterprise and the strategic combination that the enterprise should adopt.
Steps to create a SPACE matrix
1. Select a set of variables that constitute financial advantage (FS), competitive advantage (CA), environmental stability (ES) and industrial advantage (IS)
2. Give each variable that makes up FS and IS a rating from 1 (worst) to 6 (best). The variables that make up the axes of ES and CA are rated from -1 (best) to -6 (worst).
3. Add the scores of all variables on each number axis and divide them by the total number of variables on each number axis to obtain the average scores of FS, CA, IS and ES.
4. Plot the average scores of FS, CA, IS and ES on their respective axes
5. Add the two fractions on the X-axis and mark the result on the X-axis; add the two fractions on the Y-axis and mark the result on the Y-axis; mark the intersection of the X and Y axes.
6. Draw a vector from the origin of the SPACE matrix to the intersection of the X and Y values. This vector represents the type of strategy the company can take: aggressive, competitive, defensive or conservative.
Strategy Clock Model: 8 Strategic Options
Based on the reasons why customers choose one company over other companies when purchasing, and considering the two aspects of price and product added value, 8 strategies can be formed.
Cost leadership strategy With low price and low added value, we can form a concentrated cost leadership advantage.
low price Obtain cost advantage through low price, very easy to be imitated
mixed strategy High quality, low price, gain a competitive advantage that is difficult to imitate
Differentiation Strategy Differentiation to form high quality and slightly higher competitive advantage
Focused differentiation warfare Form a competitive advantage with particularly high prices and high-quality products
high price skimming strategy Regardless of price and product value, generally in a monopoly industry
McKinsey Matrix: Business portfolio analysis of a company's strategic business units
Step 1: Define the elements
External factors - industry attractiveness factors
1. Enterprise’s marketing capabilities in the market
2. Corporate brand awareness
3. Enterprise’s own technology development capabilities
4. Enterprise product quality
5. The company’s own industry experience and talent level
6. Enterprise’s financing ability
7. Enterprise management level
8. The width of the company’s own product series
9. Enterprise production line technical level
10. Enterprise channel capabilities
Internal factors - factors of corporate competitiveness
1. Market growth rate
2. Market size
3. Profitability
4.Strength of competitors
5. The level of barriers to entry into the market
6. Market capacity size
7. Political, economic, cultural, legal and technological environment
8.Inflation
9. Availability of talent
10. The sustainable development capability of the industry
Step 2: Evaluate the elements
Determine the elements of the analysis, rate the weights and specific grades of the elements, and then calculate the overall score
Comprehensive score = ∑ factor grade score × factor weight
Step 3: Draw the McKinsey Matrix
Use a pie chart to represent the market share of the company's business. Also develop strategic development plans for each simulation
Porter's value chain analysis model: enterprise value chain analysis method
The value chain analysis method divides the activities that increase value inside and outside the enterprise into basic activities and supporting activities.
The basic activities involve enterprise production, sales, incoming logistics, delivery logistics, and after-sales service.
Supporting activities involve personnel, finance, planning, research and development, procurement, etc. Basic activities and supporting activities constitute the value chain of the enterprise.