Structured Approach to Understanding a Business

Using a structured approach to problem solving, always ask yourself:

WHO?
WHAT?
WHEN?
WHERE?

As a case in point, a manufacturer is struggling to grow sales in a particular market. You have been asked to look at the problem and make suggestions. Applying the 4 questions above to analyse the problem, the situation looks as under:

1. WHO is the manufacturer selling to? (helps to define the customer base – high, middle and low – understand the market segmentation)

2. WHAT is the competition doing? (Implicit in this question is what does the manufacturer sell and what does the competition sell?)

3. WHEN are the periods of highest and lowest sales? (gives an idea about cyclic nature of the product/industry or effects of promotions/festivals etc.)

4. WHERE does the manufacturer produce? WHERE does the manufacturer sell his products?
(Try to understand the distribution model and costs of production and transport)
- routes to market
- geographical coverage
- macroeconomic factors affecting production costs