Module MindMap - Frameworks for Problem Solving

Welcome to this module on ‘Aids to problem-solving.’

With this segment, Prashanth, will walk you through the topics that will be covered in this module: Aids to problem-solving. Let's get started. 

The module aims to explore all the frameworks that are useful during a problem-solving process. Our subject-matter expert, Prashanth, in this module will walk you through the frameworks used by strategic consultants. You will also understand the drawbacks of each approach.

This module will cover the following frameworks:

• PESTEL framework - It analysis and monitors the external/macro-environment of an organisation. It stands for political, economic, social, technological, environmental and legal factors that can affect an organisation. 
• Porter’s Five Forces framework - This framework introduced by Michael Porter helps to analyse five competitive forces of every industry and further determines strengths and weaknesses. The five dimensions are as mentioned below:
  • Industry rivalry
  • The threat of new entrants
  • The threat of substitutes
  • The threat of suppliers or the matrix approach
  • The threat of buyers
• Ohmae's 3Cs - The framework helps to analyse three most critical strategic factors that are vital for the success of an organisation. The three elements are: company, customers and competitors. It is also important to analyse these three factors individually as well as how they interact with each other. 
• Porter’s Value Chain framework - Another important framework introduced by Michael Porter in 1985. This framework focuses on analysing systems, and how inputs transform into outputs. It has two elements - primary and secondary activities. Each of these is further classified into subcategories, which you will learn in the upcoming session. 
• Profit & Loss framework - It entails three main categories - research and development (R&D) costs, sales and marketing costs, and general and administrative costs. This framework is applicable when you want to find out how a company makes a profit. 

So, let’s now hear from Prashanth about each of these frameworks.