How to Structure Any Business Case: The Core Frameworks You Need to Know
- Syed Meesum Hasan Zaidi
- Apr 1
- 3 min read
Updated: Jul 20
When solving a business case, having a structured approach is critical. But top candidates don’t just memorize frameworks—they understand how to apply them flexibly based on the case context. This article will break down the core business case frameworks, when to use them, and how to adapt them to different scenarios.
1. Profitability Framework: The Go-To for Declining Profits
When to Use It: If a case asks why a company’s profits are declining or how to increase them, the profitability framework is your best starting point.
Structure:
Profits = Revenue – Costs
Revenue: Price × Quantity
Costs: Fixed Costs + Variable Costs
How to Apply It:
If revenue is the issue, analyze whether the drop is due to price (competitive pressure?) or volume (customer demand, distribution issues?)
If costs are rising, break them down into fixed and variable costs to pinpoint inefficiencies.
Always consider external factors like industry trends, competitor actions, or changing consumer behavior.
Break it down further: Depending on the business, you can analyze revenue, cost, and profit by region, product type, or customer segment to identify problem areas. For example, is a particular region underperforming? Is one product dragging down overall profitability?
2. Market Entry Framework: Should We Expand?
When to Use It: If a case asks whether a company should enter a new market, this framework helps evaluate feasibility.
Structure:
Market Attractiveness: Size, growth rate, trends, profitability
Competitive Landscape: Who are the key players? Market share? Differentiation?
Our Right to Play:
Value Proposition: Does what we offer match customer needs?
Target Customers: Who are they? Is there an unmet need?
Company Capabilities: Does the company have the right resources, expertise and brand strength to succeed?
Financial Viability: Expected costs vs. revenue potential? Breakeven analysis?
Entry Barriers & Risks: Regulations, customer preferences, existing strong competitors
Entry Strategy: Acquisition, partnership, organic growth
How to Apply It:
Always quantify market size when possible. If no data is given, make reasonable assumptions and calculate it step by step.
Consider whether the company has a unique advantage in this market—does it have a strong brand, distribution channels, or a new product that competitors lack?
If entering a highly competitive market, look for gaps: is there an underserved customer segment?
3. Pricing Strategy Framework: Finding the Right Price
When to Use It: If a case asks how a company should price a new product or adjust its pricing strategy, this framework helps explore different approaches.
Structure:
Cost-Based Pricing: What is the cost to produce? What margin do we need?
Value-Based Pricing: How much is the customer willing to pay based on the value it provides?
Competitive Pricing: How are competitors pricing similar products?
Customer Segmentation: Can we apply different pricing for different customer groups (e.g., premium vs. budget options)?
How to Apply It:
If the product is highly differentiated, value-based pricing might be best.
If competing in a commodity market, competitive pricing matters more.
For subscription-based models, consider customer lifetime value (LTV) over just the initial sale price.
4. M&A Framework: Should We Acquire This Company?
When to Use It: If a case is about whether a company should acquire another business, use this framework to assess fit.
Structure:
Strategic Fit: Does the acquisition align with business goals? Will it expand market share, bring in new capabilities, or reduce competition?
Financial Viability: Is the target company profitable? What’s the valuation, and is it a good deal?
Risks & Challenges: Cultural integration, operational challenges, regulatory issues?
Synergies: What cost savings or revenue growth opportunities will this acquisition create?
How to Apply It:
Always quantify expected synergies (e.g., cost reductions from shared operations).
Consider post-merger integration challenges—many M&As fail due to poor execution.
If the company is overpaying, the deal might not be worth it even if there are strategic benefits.
