Today, we are living in a world which is changing very rapidly. A revolution is taking place in almost every business sector. IT, infrastructure, healthcare, telecommunication, education, FMCG, Media & PR are going through massive transformation. With ever growing startups and existing old players, competitions in every business is going a notch higher with each passing year. To be relevant in this tough competition and earn higher profit margins, various businesses hire “Business Consultant”. Due to a tough and highly competitive environment, the role of a business consultant becomes very important for a company’s growth. A consultant’s advice can make or break an organization. Here are some of the tools and techniques which are crucial in a business consulting job.
GE McKinsey Matrix
Investment is an important aspect for the growth of any business. The fight for investments takes place at every level of a company; between teams, functional departments, R&D departments, marketing and sales departments etc. The question of where and how much to invest is an ever going headache for business leaders. GE McKinsey is a strategic tool which helps consultants to prioritize investment for its client. GE Mckinsey is a strategic tool that offers a systematic approach for a multi-business corporation to prioritize its investments among its business units. Ever increased competition, low profit margins, shortage of skilled and experienced persons etc. making business vulnerable in today’s fast moving world, GE McKinsey Matrix is a solution, which has the potential to help organization in better planning of their investments, in order to gain higher profitability.
Porter 5 forces
To be relevant in a competition, it is very necessary to have knowledge about our own and competitors strengths and weaknesses. Porter’s five forces is a simple but powerful tool for evaluating the competitiveness of your business environment and for identifying a qualitative strategy for potential profitability. Porter model is used to analyze on ground real competition among rivals of same domains. It helps a company to make policy framework and corporate strategy. Business consultants use Porter five forces to evaluate a firm’s strategic policy.
There are five parameters on which Porter’s principle is based. Understanding these parameters help consultants to derive a meaningful strategic policy for their client. These parameters are competitive rivalry, supplier power, buyer power, threat of substitution and threat of new entrants.
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