framework for case study

Top 7 case interview frameworks (and how to create your own)

Today we're going to cover the top case interview frameworks, as well as how you can create your own custom frameworks. 

Understanding frameworks has always been critical for the 8,000+ candidates who we've helped with consulting interview preparation. 

And one of the first things you'll want to know is that you should AVOID using pre-made frameworks, like those recommended in Case in Point and in Victor Cheng's LOMS programme. But more on that later. 

Let's start with the list of top frameworks.

Top 7 frameworks for case interviews

• 1. Profitability
• 3. Porter's 5-forces
• 5. Market entry
• 7. Merger and acquisition

Don't reuse pre-existing frameworks

How to create custom frameworks, click here to practise 1-on-1 with mbb ex-interviewers, 1. profitability framework.

The   profitability framework   is the most basic framework in business analysis. It simply breaks down profit into its basic revenue and cost components and is commonly used to identify the root cause of profitability issues.

• Revenue   can simply be broken down into the Number of Units Sold x Price Per Unit.
• Costs   can be broken down into Variable and Fixed Costs. And Variable Costs can be further broken down into the Number of Units Produced x Cost Per Unit.

2. The 4Ps framework

The   4Ps framework   is widely used by company executives to design their marketing strategy. There are different variations of this framework, which is also sometimes referred to as the “Marketing mix” framework, but the 4Ps is the most common one.

This framework is commonly used when launching a new product or when reviewing the positioning of an existing product.

• Product : What are the key characteristics of the product sold? Key elements of the product definition could include: customer need fulfilled by product, product usage (E.g. who, where, how, etc.), good vs. service, product lifecycle (new vs. established), competing products and substitutes, etc.
• Price : At what price should the product be sold? Different considerations need to be taken into account here: the customer perceived value of the product, the price of competitive products, the customer price sensitivity, the cost of producing the product, etc.
• Promotion : Which promotion strategies should be used to sell the product? Key elements to consider include: promotion messages, media type (E.g. TV, social media, radio, etc.), best time to promote, competitors’ strategies, etc.
• Place : Through which channels should the product be distributed? Key elements to consider include: possible channels to distribute the product (E.g. in store, web, mail-to-order, etc.), customer expectations in terms of channel, requirement of a sales team or not, competitors’ strategies, etc.

3. Porter's 5 forces

Porter’s 5 forces  is a framework commonly used by CEOs to explore the competitive dynamics of industries. Indeed not all industries are structured the same way.

Some industries are really hard to get into (E.g. banking) while others have very low barriers to entry (E.g. newspapers).

Suppliers have strong bargaining power in some industries (E.g. high-end medical equipment) but little power in others (E.g. small milk producer), etc.

Understanding these dynamics is extremely important when you're considering entering a new industry or when assessing the competitive dynamics of the industry a company is already in.

• Bargaining power of customers : How much bargaining power do customers have? If there is only one buyer but multiple suppliers, then that buyer will be at a strong advantage. Key elements to consider here include: customer concentration (percentage of industry revenues from Top 3 buyers), customer price sensitivity, customer information availability, etc.
• Bargaining power of suppliers : How much bargaining power do suppliers have? Similarly to the previous point, if there is only one supplier but multiple buyers, then that supplier will be at a strong advantage. Key elements to consider include: concentration of suppliers (percentage of industry revenues to Top 3 suppliers), difficulty of switching from one supplier to another, differentiation between suppliers, etc.
• Threat of substitutes : What are the substitutes for the product and are they increasingly popular? As a reminder, water is a substitute for Coke while Pepsi is a competitive product for Coke. Key elements to consider here include: potential new substitutes, ease of substitution, evolution of customer propensity to substitute, etc.
• Threat of new entrants : How difficult is it to enter the industry for potential new players? Key elements to consider here include: regulation authorisations, capital requirements, economies of scale, network effects, etc.
• Existing rivals : How competitive are existing rivals in the industry? Key elements to consider include: number of competitors and their market shares, similarity between their products and products of the firm analysed, financial health of competitors, etc.

4. 3Cs framework

The   3Cs framework   is also commonly used to put together strategies for companies. As you will notice below, a lot of its components overlap with the Porter’s 5 forces.

• Customers : Who is the customer? Key elements to consider include: customer demographics (E.g. age, sex, income, etc.), customer needs, customer segments' size and growth rates, customer willingness to pay and price sensitivity, etc.
• Competition : What are the competitive dynamics? Key elements to consider include: competitors’ value proposition and brand, competitors’ market share and growth, competitors’ financial health, etc.
• Company : What defines the company? Key elements to consider include: product offering, profitability, core competencies, unique selling point, financial performance and resources, etc.

5. Market entry framework

The   market entry framework   is commonly used to make decisions on whether a company should enter a new market or not.

For instance, you could use it to decide if Starbucks should enter the Chinese market, or if Nike should enter the sports broadcasting business.

• Market : What are the characteristics of the market we are trying to enter? Key elements to consider include:   market size  and profitability, products already available in the market, intensity of the competition, heaviness of the regulation, etc.
• Client capabilities : Does the client have the right capabilities to enter that new market? Key elements to consider include: differences between the client's current market and the new one they are now targeting, number of times client has entered new markets and achieved success, other companies already in the new market, etc.
• Financials : Does it make financial sense to enter the new market? Key elements to consider include: current financial situation of the client, cost to enter the new market, ongoing costs once the market is entered, expected revenues and return on investment, etc.
• Entry strategy : How should the client go about entering the new market? Key elements to consider include: timing of market entry (now vs. delay), speed of market entry (test region vs. whole country), opportunity to buy competitor or do a JV, management approach (control from HQ vs. decentralise), etc.

6. Pricing case framework

Companies always face a difficult issue when launching a new product or service. What should its price be? The   pricing framework   is extremely helpful for answering that question.

• Cost-based : What price do we need to set to cover all our costs? Key elements to consider include: fixed costs and their allocation across products, variable costs and number of units produced / sold, profitability targeted, etc.
• Value-based : How much are customers willing to pay for our product? Key elements to consider include: price of the next best alternative to our product, features that make our product better than the next best alternative, value of these features, etc.
• Competitor-based : What is the competition charging for similar products? Key elements to consider include: available substitute products from the competition, price of these substitute products, value of our product vs. substitutes, etc.
• Overall strategy : Given the elements above, what should our pricing strategy be? Key elements to consider include: objective of the pricing strategy (E.g. high profitability or high market share), opportunities for upsell / cross-sell that should be taken into account (E.g. Kindle and ebooks), possibility to sell different versions of the same product (E.g. iPhone 13 and iPhone 13 Pro), etc.

7. Merger and acquisition framework

Finally, the   merger and acquisition framework   is used when companies are looking to acquire or merge with competitors.

These situations are not very frequent in a CEO's life, but they are highly stressful, which is one reason why consultants are often asked to support such initiatives.

• The market : What are the characteristics of the target company's market? Key elements to consider include:   market size  and growth, market profitability and intensity of the competition, market regulation, etc.
• The target : How attractive is the target to be acquired? Key elements to consider include: current and future financial position of the target, important assets or capabilities owned by the target, quality of the target's management team, target / buyer culture fit, etc.
• The buyer : What's driving the buyer to make the acquisition? Key elements to consider include: acquisition rationale (E.g. target undervalued, etc.), acquisition financing, buyer's acquisition experience, acquisition timing, etc.
• Synergies and risks : What are the acquisition synergies and risks? Key elements to consider include: value of individual and combined entities, cost synergies, revenue synergies, biggest risks of failure, etc.

Once you are generally familiar with frameworks, the question becomes: how do you actually use frameworks in case interviews?

There are a lot of opinions about how you should do this on the Internet. But the two main schools of thought are   Marc Cosentino’s Case In Point   and   Victor Cheng’s LOMS .

But both of these methods share the same flaw: they try to force pre-defined frameworks onto cases. In our experience, this is bound to produce average results because all cases are unique.

Not convinced? Let's cover each of these two popular methods in more detail. 

Why NOT to use the Case In Point frameworks

In Case In Point, Marc Cosentino attempts to classify case interviews into 10+ categories and then suggests that candidates should memorise a specific framework for each of them.

This is an interesting exercise as it exposes you to a range of business problems and helps you think about them in different ways. However, in our experience, learning 10+ frameworks is difficult and time consuming.

More importantly, in live case interviews, trying to recognise one of the 10+ case categories and then remembering the associated framework is a real nightmare!

Instead of focusing on solving the problem at hand, you end up trying to remember a framework that will not even perfectly fit the case you are solving. In our experience, the best candidates avoid this strategy.

Why NOT to use Victor Cheng's LOMS frameworks

In his LOMS programme, Victor Cheng advocates for a much simpler method and suggests you should only learn two frameworks: the profit framework for profitability cases, and a general framework for all other cases (Product, Consumer, Company, Competition).

The benefit of this approach is its simplicity. It gives you a starting point that’s easy to remember when you are putting a framework together.

However, in our experience, this approach has a fatal drawback. In practice, there aren’t that many profitability cases, and you basically always end up using the general framework.

Even if you adapt this general framework, it won't be perfectly tailored to the case you are trying to solve. More importantly, your interviewer will quickly realise that you are using a pre-made framework and that will reflect negatively on you.

Why to create custom frameworks instead

A good framework is a bit like a tailor-made suit: it is adapted to the problem you are trying to solve, the company, the industry, and it is also as   MECE   as possible.

If you use pre-existing frameworks, you run the risk of missing important elements of the specific problem you are trying to solve. In real life, consultants rarely use pre-defined frameworks. They are familiar with them, but they do not directly re-use them as-is on projects.

Instead, they create a customised framework or   issue tree  that addresses the specific details of each case.  To do so, they rely on conversations with their client as well as past experiences.

This might sound intimidating, but the good news is that creating custom frameworks is actually much simpler than you might think. 

Now, let's turn our attention to HOW you can create your own custom frameworks during case interviews. 

Here's a brief summary of the steps you'll need to take:

Summary - IGotAnOffer method (framework development questions)

• Step 1: Ask for time to gather your thoughts
• Step 2: Create the framework
• Extract the main elements from the case question
• Break down the main elements into components
• Step 3: Communicate the framework

Spin your paper around

• Begin with an overview

Highlight 3-5 considerations for each branch

Summarise your points, prioritise next steps.

Now let's cover these steps in more detail. We'll also be digging into a real case example below, in order to illustrate the framework creation process.

1. Ask for time to gather your thoughts

Regardless of the case you get, you should always ask your interviewer for some time to gather your thoughts, before you begin to develop the framework. 

This is a normal part of the interview process. Your interviewers will expect you to ask, and they'll almost always give you this time. 

But don't get carried away! 

For reference, you should only take 30-60 seconds to quietly think-through your framework. We recommend that you also sketch out your framework on a piece of paper during this time, as that will help you to organise your thoughts more clearly. 

Without practise, it's really difficult to estimate how long 30-60 seconds actually is, so we highly recommend that you practice this process with a stopwatch. This exercise will help you get a clear idea of how much time you're actually using. 

2. Create the framework

During that 30-60 second time window, you'll need to do the real work of crafting your framework. 

The essence of framework creation is actually quite simple. A framework takes the business situation presented in the case, and breaks it into smaller "bite size" pieces. 

By isolating the various components of a case, you'll be able to better identify the root cause of an issue, or find the best opportunities for improving the underlying business. 

And the best way to develop your framework creation skills is with practice on realistic case problems, so let's walk through an example together. 

Star Production case example

In this case we need to analyse the short-term profitability of a movie production company. So, you would begin crafting your framework by thinking about the different factors that would contribute to the company's overall profits.

The first two components of this framework are fairly straightforward: revenues and costs. That's because the profitability of any company is determined by a combination of their revenues and costs.

Then, we can further deconstruct both revenues and costs based on our knowledge (or perhaps some assumptions) of the movie production business. And as you break down the components further, it's important to consider the concept of MECE, which stands for Mutually Exclusive Collectively Exhaustive.

In simple terms, MECE means that you should aim to have a framework where the branches do NOT overlap with each other, and where the framework is comprehensive (i.e. no branches are missing). You can learn more about this in our separate   MECE guide . 

Now here's an example of what your draft framework might look like for the Star Production case: 

As you can see in the example above, we've broken down the revenues and costs into specific components that would make sense for a movie production business.

And we've used bullet points to highlight the information we would need in order to determine how each individual item contributes to the overall revenues or costs of the business.

For example, we would need to know the expected ticket sales, the average ticket price, and the share of the ticket revenue that Star Production would be entitled to, in order to calculate the total ticket revenue. 

Once you've drawn out a rough framework like the above example, your next task will be to explain your framework to your interviewer. 

3. Communicate the framework

Even if you created the world's best framework, it won't get you an offer if you're not able to explain it in a clear and structured way. 

Here's how we'd recommend you communicate your framework during your interviews:

Start by showing your interviewer the framework that you've drawn on paper. Having this visual structure will make it much easier to explain (and understand). 

Start with an overview

Before jumping into the details of your framework, you should start with an overview of the framework.

In our example above, you could simply explain that the profitability of Star Production will be determined by the expected revenues and costs of the business, which can be broken down into more specific categories. 

You should also tell your interviewer the order in which you plan to walk through each individual branch, so they'll know what to expect.  

Next, go through each branch of your framework and mention several considerations that came to mind while you were drafting the framework. 

For example, for the "upfront costs" branch of the Star Production case, you could explain that you'd want to find out what costs the company would incur before it can start releasing movies, like filming equipment, studio space, and post production expenses. 

And throughout your explanation of the framework, you should pause periodically to summarise your key points, and to check in with your interviewer. 

You're likely going to be covering a lot of ground in your framework, and you want to make sure that your logic doesn't get foggy in the details. 

For example, you could summarise the most important considerations that impact the revenues of Star Production, after you've walked through each individual sub-branch under revenues. 

Finally, after walking through your full framework, you should tell your interviewer the 2-3 next steps you would recommend, in priority order. 

There's a variety of ways you could rank next steps, but three good options would be based on importance, ease, or speed. 

Returning to the Star Production example, you could recommend the following next steps in priority order:

• Identify the biggest cost drivers.   Star Production's business model is focused on producing a high volume of low cost movies, so controlling costs will be essential to the profitability of the company. 
• Develop a production process that minimises costs.  Once the primary cost drivers are identified, we should develop a production process that keeps those costs as low as possible. 
• Look for opportunities to increase the hit rate.   Star Production is counting on a few box office hits to drive revenues. As a result, increasing the percentage of movies that succeed could be a big win.

Get MBB offers by mastering frameworks

To succeed in case interviews, you MUST be able to create and apply frameworks effectively. And i f you really want the best possible preparation for your case interview, you'll want to practise doing this in an interview situation, ideally with an expert consultant giving you feedback.

The IGotAnOffer team

Photo: Roberto Taddeo / IM

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Mastering Case Interview Frameworks in 2024: A Comprehensive Guide

Last Updated on March 26, 2024

In the competitive world of consulting recruiting , mastering case interviews is a crucial step towards landing a job at top firms like McKinsey , BCG , and Bain . Discovering how to structure case interviews in consulting is fundamental, as the foundation of successful performance lies in effectively tackling complex business problems. In 2024, with more challenging and creative cases, understanding how to craft a compelling case interview framework is more important than ever.

This article serves as a comprehensive case structure guide, diving deep into the art and science of structuring your analysis and providing you with essential insights into what a case interview framework entails, why it’s critical for your success, and the different strategies you can employ to impress your interviewers from the get-go.

Starting with an overview of what case interview frameworks are and their significance, we explore the nuances and provide essential case structuring tips that set apart winning strategies from the rest. We offer tips for acing consulting firm case interview frameworks. Whether you’re wondering about the types of frameworks that exist, what constitutes a robust case interview structure, or if memorizing frameworks is beneficial, we’ve got you covered.

This guide is based on our experience as McKinsey interviewers and cas coaches with more than 1600 case interview sessions conducted at the time of writing. It is designed to give you a head start in your case interview preparation, ensuring you’re well-equipped to structure your thoughts like a seasoned consultant.

By integrating key concepts with practical advice, this article is your ultimate guide to consulting case structure and acing case interviews in 2024. Stay tuned as we guide you on answering consulting structuring questions with confidence and tackle some of the most pressing consulting framework questions, helping you structure your approach in case interviews more effectively. We want to give you a head start by answering the following questions in this article:

• What is a case interview framework?
• Why do you need to structure your approach?
• Are there different types of frameworks?
• What makes a good case interview structure?
• Should you learn case interview frameworks by heart?
• How can you create frameworks from scratch using a first-principles approach?
• What is the best way to practice framework creation?
• How do you structure a McKinsey case interview? Is it different from candidate-led interviews?

This article is part of our consulting case interview series. For the other articles, please click below:

• Overview of case interviews: what is a consulting case interview?
• How to create a case interview framework (this article)
• How to ace case interview exhibit and chart interpretation
• How to ace case interview math questions

What is a Case Interview Framework?

A case interview structure is used to break the problem you are trying to solve for the client down into smaller problems or components. It is the roadmap you establish at the beginning of the interview that will guide your problem-solving approach throughout the case.

You are defining areas to analyze that help you understand where the problem is coming from or how to answer the question of a client.

In that sense, structuring your approach is the first important step in every case interview. Initially, the interviewer will tell you about the client’s situation and the problem they are asking you to solve. After playing back the prompt and asking clarification questions, you need to structure your approach and create a case interview framework.

Let’s look at one traditional example:

Our client is a beverage manufacturer and has seen declining profits over the last year. They have called us to investigate the issue and propose ways out of it. A typical case interview prompt (simplified)

For you as a candidate, getting the framework right is the first step to successfully acing the case. If you fail to propose a proper analytical structure, you will not be able to investigate the situation and find the root cause of the issue.

A case interview framework usually consists of a top layer and several sub-levels, where the top-level buckets cover the issue broadly, whereas the sub-level buckets identify more concrete areas to look at.

To illustrate, the most common and basic structure that would allow us to analyze the situation on top would be looking at:

Profit = Revenue – Cost

This high-level structure is used for profitability cases when you are tasked to solve an issue with the client’s profit development. The two buckets revenue and cost represent the top level. To analyze the problem properly, you would need to go deeper and figure out what sub-levels influence the variables you are looking at.

For instance, for our beverage manufacturer, you could look at cost and break it down into fixed cost and variable cost with a 3rd level of concrete areas to investigate:

It is important to tailor the structure and associated sub-levels to the case questions. Framework templates were en vogue 5-10 years ago and consulting firms have moved away from asking generic cases that would fit the frameworks taught by Case in Point or Victor Cheng (more on that below).

In terms of format, the best-practice approach to structuring a case is to build an issue tree with branches, which are split into several sub-branches (see the example below).

As with most other aspects of the case interview, mastering effective consulting interview frameworks and deconstructing problems is a skill that needs to be learned, internalized, and practiced to perform best during the interviews.

We’ll cover this in much more detail later in this article.

Why Do You Need a Framework to Structure Your Approach?

The initial structure you need to come up with serves three important purposes in a case interview.

Investigative roadmap

First, it is the roadmap you establish initially that guides your problem-solving throughout the case. Once you lay out your planned approach, you should go through each bucket or branch of your issue tree to find the issue(s) the client is facing or to evaluate the ideas you came up with to fit the needs of the client and then work on your recommendation(s). The case framework serves as the anchor you should stick to as you move through your analysis.

Communication device

Second, it is used as a communication device to guide the interviewer through your thought process and approach. Additionally, moving through the structure allows you to ask targeted questions to the interviewer about additional data or information on each point.

Analytical test

Third, coming up with a proper structure and communicating it well is a test in itself. The interviewer tries to understand how well you can tackle unfamiliar problems. They will evaluate your thinking, logic, analytical capabilities, and problem-solving prowess as well as communication skills.

Case Structuring Course and Drills

Learn how to structure any case, regardless of the problem, industry, or context with our first-principles approach to problem deconstruction and brainstorming. We use our McKinsey interviewer experience to teach you how to structure cases like a real consultant.

Includes 25 lessons on structuring and brainstorming and 100 practice drills.

Different Types of Frameworks with Examples

Generally, two types of case frameworks exist, depending on the nature of the question.

Either you are asked to break a problem down into its parts and understand where an issue comes from to provide a recommendation (e.g. ”Our client is trying to understand why…?” ) or you are asked to answer a specific question ( ”Should our client engage in…?” ).

Figuring out a problem

A structure here is the starting point and anchor of your problem diagnostic.

First, you need to think about all potential problem areas, then drill down into each branch to figure out what is wrong exactly by collecting more information from the interviewer and exhibits; based on your probing you will receive information from the interviewer that you have to analyze qualitatively and quantitatively, then provide a recommendation in the end.

Answer a question

For these types of questions, a structure is a systematic analysis of a situation or comparison of options that you want to investigate on behalf of the client to help them with a specific goal or question.

For both types of structures, you should follow a hypothesis-driven approach, i.e. already having a clear vision of where the problem could be buried most likely or what approach or idea would best support the client’s goal.

Apart from knowing what frameworks are used for, what characteristics make a strong case interview structure?

Criteria of Strong Case Interview Frameworks

A good case interview framework follows several rules.

Let’s break them down into content requirements and principles.

Content requirements

An excellent structure is broad at the top level, goes into greater depth on the sub-levels, and consists of meaningful and insightful ideas.

• Breadth: How many buckets does your structure consist of at the top level? While in a profitability case, the top level is given, for many other cases you can expand your top level by several buckets ( Real MBB case question: ”What could be the reason our machines break down at different rates in different locations?” ).
• Depth: How deep do you go into each top-level idea and come up with levers/areas to look at below? How well can you support your top-level with the actual ideas that influence it?
• Innovation: How meaningful and insightful are your ideas? Create a mix of common components as well as more out-of-the-box answers. Tell the interviewer something they have not heard before.

Principles of success

Make sure that your structure adheres to the principles below.

• MECE-ness: Refers to a grouping principle for separating a set of ideas into subsets that are mutually exclusive (no overlaps between the different branches of the issue tree) and collectively exhaustive (covering all important aspects). It is used to break down problems into logical and clean buckets of analysis.
• Actionable: Your answer should only consist of ideas that you can exert influence on within the given time frame (e.g. if you are asked to come up with measures over the next year, everything beyond that should not be touched in your structure).
• Logically coherent: Top levels and sub-levels should be consistent within their level and across levels. They should stick to the same hierarchy of importance and logic (e.g. if you are comparing revenue and cost, they should be at the same level, and everything that influences the two should be below).
• Relevant: The content should be relevant to the case at hand, tailored to the client, and easy to follow and communicate. Avoid over-structuring your case. Find a few broad categories at the top and then break them down further.
• Hypothesis-driven: You should have a clear idea of where the problem is buried or what solution is best for the client from the start, and while moving through the structure and gathering additional information, that hypothesis should become clearer.

Memorizing Frameworks is the Worst Thing You Can Do

Upon beginning work with new clients, it becomes immediately evident when they’ve memorized standard frameworks, as this practice typically affects their early performance noticeably. It’s hard to fault them, given that prevalent case interview guidance and literature still advocate memorizing frameworks to apply or tweak across various cases.

Be aware that framework templates were applicable 15 years ago, in the era of Victor Cheng and Case in Point. McKinsey and other top-tier firms have long caught up on this and the cases you will get during the interviews are tailored in a way to test your creativity and ability to generate insights, not remember specific frameworks.

In fact, it will hurt you when you try to use a framework on a case that calls for a completely different approach. Also, it gives a false sense of security that will translate to stress once you figure out how your approach won’t work during the real interview – We have seen this so many times…

Your goal should be to master various framework creation methods, allowing you to build custom issue trees and frameworks, interpret charts , and perform math no matter the case’s context, industry, or function. Our approach teaches you this and trains your ability to come up with deep, broad, and insightful structures for each case individually.

Now, if you come from a non-business background, it certainly does not hurt to glance over the classic frameworks once (e.g., market entry, product development) to become familiar with the terms and phrases as long as you are aware that their usefulness ends there.

Also, be aware that there is no typical McKinsey case interview framework, BCG case interview framework, or Bain case interview framework. All firms use a diverse set of cases, which are usually developed by each interviewer individually based on a real consulting project they have completed.

If you are looking for case interview examples, check out this article , where we have compiled a link list of all publicly available MBB and tier-2 consultancy cases.

Back to the frameworks: Memorizing frameworks for a case interview may seem like an effective strategy, but in reality, this practice is detrimental to your performance. McKinsey, BCG, Bain, and other top consulting firms want to see candidates come up with their own solutions and innovative approaches.

I want to show you why memorized frameworks like the ones from Case In Point or Victor Cheng do not work and supplement these with plenty of examples to bring the point across. In the end, I want to introduce you to my Structuring Drills course as well as my Case Interview Preparation book, The 1%: Conquer Your Consulting Case Interview . Both resources are aimed at developing you into a world-class case interviewee.

Below are the top reasons why memorized frameworks and cookie-cutter approaches do not work.

No points for problem-solving

First, case interviews are designed to test your problem-solving and critical-thinking skills, not your ability to regurgitate memorized information. Frameworks are meant to be a guide, not a script. Using a memorized framework in an interview can make it obvious that you are not thinking critically about the problem at hand, which can make it difficult for you to impress the interviewer. Interviewers want to see insightful analytical constructs, which means that they need to be tailored, relevant, and concrete.

If you just use memorized buckets, you will score badly in terms of problem-solving. To see a real scoring sheet, go here .

Cases have become much more creative

Second, case interviews often involve unique and unpredictable scenarios. No two cases are the same, so a memorized framework may not apply to the specific problem you are presented with. Attempting to force a framework onto an unrelated problem can make it clear that you lack flexibility and the ability to adapt to new situations.

For instance, let’s look at a real McKinsey case example from a couple of years ago.

You are working with an operator of a specific type of machines. They break down at different rates at different locations. What factors can you think of why that would happen? Example of a McKinsey Case Interview Structure Questions

Which Victor Cheng framework or Cosentino ideas would you present here to the interviewer? There is not a single bucket that would work.

Let us look at an example answer for this prompt.

You limit your creativity

Third, using a memorized framework can limit your ability to think creatively. When you are focused on trying to fit the problem into a pre-existing framework, you may miss opportunities to come up with innovative solutions.

1% of candidates make it through the filter of MBB . You want to provide insights the interviewer has not heard before and not be just like the other 99% that fail to impress.

You have no rationale

Fourth, case interviews also test your ability to communicate and present your thought process effectively. When you are relying on a memorized framework, you may not be able to explain the reasoning behind your solutions and ideas. This can make it difficult for the interviewer to understand your thought process and evaluate your problem-solving skills.

Interviewers want to understand why you think a certain way, not just what you think. Memorizing frameworks completely kills your ability to support and defend your choices.

In conclusion, memorized frameworks can be detrimental to your performance in a case interview. Instead, it’s better to focus on developing your problem-solving, critical thinking, flexibility, creativity, and communication skills. These are the skills that are truly valued in case interviews and a business setting later on.

Let’s have a brief look at how you can become a better problem solver and create frameworks like an actual consultant.

Apply a First-Principles Approach to Frameworks

Consultants approach problems from a first-principles perspective. If you learn how to do the same, not only will you come across as an equal to them, not just another case interviewee, but your analytical lens and case performance will skyrocket. Adopt these innovative framework creation methods for case interviews.

First-principles thinking

At the core of your idea generation should be first principles thinking, which refers to the process of systematically deconstructing a problem or situation into its constituent parts in a MECE way. Only by following this approach can you identify where the issue in a case comes from and how big it is (the what), then dive deeper to understand the reason (the why) to eventually work on a solution (the how). First principles allow you to break a situation down into its core pieces and then put it back together.

For instance:

“What do we need to build an aircraft?”

• A factory (infrastructure)
• Tools and equipment
• Financial means

From there, you go into second and third-order considerations; for instance, for staff:

• Formal education and training
• Work experience
• # of people in total
• # of people for different areas (e.g., engines vs. wings)
• Supply of and demand for labor in the area
• Job advertisement
• Working conditions
• Remuneration and benefits

There are several ways you can employ this type of thinking for creating case interview frameworks. First, we look at the top level of your issue tree, the foundation of your problem-solving, and then explore in more depth the branches, all with a first principles perspective in mind.

Framework creation techniques

For most cases, you can focus on problem deconstruction from two angles: examining the components involved and understanding the process.

To illustrate, we’ll explore the example of improving customer satisfaction for an airline.

The component approach

When we dissect a problem through the lens of its components, we look at the static elements that make up the situation. For an airline, this could include the tangible and intangible assets that affect a customer’s experience. These components might encompass the aircraft itself (comfort, cleanliness, amenities), the staff (friendliness, efficiency), the booking system (ease of use, flexibility), and ancillary services (lounge access, on-board meals).

By examining each component individually, you can identify potential areas for improvement. For example, an analysis might reveal that enhancing the on-board meal quality could significantly boost overall customer satisfaction. This approach requires a deep dive into each element, assessing its current state, impact on the customer journey, and potential for optimization.

The process approach

Alternatively, examining the problem through a process lens involves mapping out the sequence of steps a customer takes, from booking a flight to reaching their destination. This perspective allows you to identify pain points and opportunities for enhancement at each stage of the customer journey.

For instance, you might discover that the check-in process is a significant bottleneck, causing frustration and setting a negative tone for the journey. By streamlining this process, perhaps through more efficient use of technology or additional staff training, you could improve the overall customer experience, thereby increasing satisfaction.

Once you have generated your top-level buckets, expand those ideas into more concrete ideas on the levels below. For instance, from a component perspective, you might have identified staff as an area to investigate.

Next, think about what type of staff a typical passenger encounters like booking agents, check-in staff, lounge personnel, cabin crew, etc. Voila, you have created the most concrete and final level of your analytical framework structure.

Try it out yourself when you encounter the next case problem and think about it either from a process or component perspective, then dive deeper.

While it might be harder initially to use this approach of creating frameworks from scratch, the outcome over time always beats memorization. Hence, we do not recommend any other way to learn and practice frameworks.

Practicing Case Interview Framework Creation and Problem Deconstruction

Developing a strong foundation in creating case interview frameworks is essential for success in consulting interviews. This skill is not about memorizing a set of frameworks but understanding how to construct them from scratch based on the problem at hand. Here’s how you can hone this ability:

1. Master content creation techniques for problem deconstruction : Our course is designed to equip you with the right techniques for breaking down complex problems into manageable parts. We focus on first principles thinking and an intuitive way of breaking down problems, enabling you to understand the core elements of any issue you’re presented with, which is crucial for custom framework creation.

2. Practice with a variety of cases : Exposure to a wide range of case scenarios is key. Our library includes over 100 practice cases, complete with detailed answer keys and explanations. This diverse set of examples will not only improve your ability to adapt your framework to different problems but also enhance your problem-solving speed and efficiency.

3. Regularly read business publications and magazines : Keeping up-to-date with the latest in the business world is invaluable. This habit sharpens your business acumen, enriches your understanding of current market trends, and deepens your industry knowledge, all of which are critical when you need to tailor your frameworks to specific contexts.

4. Understand basic business concepts and terminology : A solid grasp of fundamental business concepts and jargon is non-negotiable. This foundational knowledge ensures you can speak the language of business fluently, making it easier to structure your thoughts and communicate effectively during the case interview.

Remember, the goal is not to memorize frameworks but to learn how to construct them dynamically as per the needs of the case. This approach ensures that your frameworks are always tailored, insightful, and directly relevant to the problem you’re solving.

Also, do not forget that creating the structure at the beginning of the case is just the first step. There are also other elements to consider in a consulting interview preparation plan .

Case Interview Framework in McKinsey Interviews

Since the McKinsey interview is interviewer-led, there is an extra emphasis on the structuring part.

At the core, McKinsey wants to see creative ideas communicated in a structured manner, the more exhaustive the better. Your goal should be to come up with a tailored and creative answer that fits the question.

In a McKinsey interview, you can take up to 2 minutes to draft your structure, IF the structure you come up with is strong and

• hits all the key points that the firm wants to see and
• is communicated in the right way.

A big issue I see with coaching candidates is that they take too little time to structure their thoughts because they feel pressured to be quick rather than exhaustive and creative.

An additional 30 seconds can often make the difference between a bad structure and a good one or a good one and an excellent one. So my battle-tested advice is to get rid of this time-pressure mindset, especially in a McKinsey interview.

Now for the content of the structure, there is no right or wrong answer. Some answers are better than others because they are

• hypothesis-driven
• follow a strong communication (MECE, top-down, signposted)

That being said, there is no 100% that you can reach or a one-and-only solution/ answer. It is important that your answers display the characteristics specified above and are supported well with arguments.

Also different from other firms, you can take up to roughly 5-6 minutes to present your structure, your qualifications, and hypotheses. This is due to the interviewer-led format that McK employs. The firm wants to see exhaustive and creative approaches to specific problems.

Again, this only applies if everything you say

• adds value to the problem analysis
• is well qualified
• includes a detailed discussion of your hypotheses at the end

The difference in format and way of answering a question is the reason why I recommend preparing differently for McKinsey interviews vs. other consultancies’ interviews.

Read more about the McKinsey interview process and the McKinsey case interview specifically.

We Help You Draft Frameworks and Communicate Them Well

I have seen memorized and cookie-cutter frameworks destroy many candidates’ performance and chances to get an offer for many years now. The only issue that is bigger than that is the typical candidate’s ability to handle case math ( but that is for another time ).

To conquer that and many other things that I think are wrong with today’s standard literature on case interviews, I wrote The 1%: Conquer Your Consulting Case Interview . The book is available on Amazon and covers frameworks, case structuring, and brainstorming in great depth. It teaches you how to think and not to memorize faulty frameworks (among 340+ pages of other valuable case interview content).

Once you have understood how to tackle a case structure, you can practice with the Case Structuring Course and Drills here on StrategyCase.com.

We have specialized in placing people from all walks of life with different backgrounds into top consulting firms, both as generalist hires as well as specialized hires and experts. As former McKinsey consultants and interview experts, we focus on teaching the best habits and strategies to ace every case interview, including idea generation, problem-solving, and brainstorming, all from a first-principles perspective.

We can help you by

• tailoring your resume and cover letter to meet consulting firms’ highest standards
• showing you how to pass the different online assessments and tests for McKinsey , BCG , and Bain
• showing you how to ace McKinsey interviews and the PEI with our video academy
• coaching you in our 1-on-1 sessions to become an excellent case solver and impress with your fit answers (90% success rate after 5 sessions)
• preparing your math to be bulletproof for every case interview
• helping you structure creative and complex frameworks for case interviews
• teaching you how to interpret charts and exhibits like a consultant
• providing you with cheat sheets and overviews for 27 industries .

Reach out to us if you have any questions! We are happy to help and offer a tailored program to help you break into consulting.

To improve your skills in all areas of the interview, check out some of our targeted offers below.

Frequently Asked Questions about Case Interview Frameworks

In more than 1600 case interview sessions at the time of editing this article, several questions have come up frequently from my clients. To assist you in this critical phase of your case interview preparation, I’ve compiled a list of frequently asked questions about case interview frameworks.

These questions aim to shed light on the nuances of preparing for and excelling in case interviews, providing you with insights to enhance your understanding and skills.

How do specific industries impact the creation of case interview frameworks? Industries play a crucial role in shaping the choice of case interview framework components, specifically at the lower levels. At the top level, most companies are built in the same way, regardless if they are offering a product or a service. The main difference to tailor it to the industry usually happens on the lower levels of the framework. For instance, while both an airline and a bookstore generate revenue, which is comprised of price times quantity, the pricing for an airline works very differently (e.g., ticket price, booking fee, seat allocation fee, baggage allowance fee, etc).

Can you provide real-life examples of case interview questions from top consulting firms and how to apply frameworks to them? While specific real-life examples are proprietary, many consulting firms publish practice cases on their websites. These can serve as a valuable resource for understanding how to apply frameworks to solve common business problems, with each case typically demonstrating the application of different analytical frameworks. We have collected many free practice cases from different firms here .

What are the common mistakes candidates make when structuring their approach in case interviews, and how can they avoid them? Common mistakes include overly relying on memorized frameworks without creating new ones for the specific case, failing to listen actively to the interviewer’s hints, and neglecting to structure answers in a MECE (mutually exclusive, collectively exhaustive) manner. Avoid these by practicing flexibility, active listening, and ensuring your approach is tailored and comprehensive.

How has the approach to case interviews and the use of frameworks changed over the past decade? The approach has shifted towards evaluating candidates’ ability to think creatively and adapt frameworks dynamically rather than relying solely on memorized structures. This change reflects the consulting industry’s need for innovative problem solvers who can navigate complex and evolving business landscapes.

Are there any differences in how frameworks should be applied in virtual versus in-person case interviews? The core principles remain the same, but virtual interviews require candidates to be even more clear and structured in their communication , given the lack of physical presence. Ensuring technical setup is optimal and practicing verbalizing your thought process can help bridge the gap.

What role does creativity play in structuring case interviews, and how can candidates balance it with the use of standard frameworks? Creativity is crucial for developing tailored and insightful frameworks that go beyond standard responses. Candidates should not use standard frameworks but explore creative angles and solutions to demonstrate their unique problem-solving abilities.

How can non-business background candidates quickly grasp the concept of case interview frameworks? Non-business candidates should start with foundational problem-solving practices and business concepts and practice applying them to diverse case scenarios. Leveraging resources like business publications, online courses , and practice cases can accelerate their understanding and application of case frameworks.

What are the interviewers’ perspectives on the use of frameworks, and what do they look for in a candidate’s approach? Interviewers seek candidates who can create their own frameworks flexibly and creatively, showing an understanding of the underlying business principles. They value clarity, logical structuring, and the ability to derive actionable insights tailored to the specific case. Interviewers usually do not pass candidates who use memorized frameworks that do not fit the case.

How can candidates effectively practice and improve their framework structuring skills? Practice is key. Engaging in mock interviews, analyzing case studies, and receiving feedback from peers or mentors can greatly improve your ability to structure effective frameworks. Additionally, regularly challenging yourself with new and diverse case scenarios can build adaptability and depth in problem-solving. If frameworks are one of your key development areas, do not waste time going through full cases. Rather, work on individual drills back to back to create a habit of deconstructing problems accurately and swiftly.

What are some advanced techniques for customizing frameworks to fit unique case interview scenarios? To customize frameworks for unique case interview scenarios, focus on deconstructing the problem using first principles thinking. Break down the issue into its fundamental components or underlying steps to understand its structure. This approach enables you to create a tailored framework that directly addresses the specificities of the scenario. Apply relevant industry insights and business sense to enhance your analysis. Begin with a clear, strong hypothesis to steer your investigation and framework construction, ensuring that every part of your framework is directly relevant to unraveling the core problem at hand.

Do you have a framework-related question or struggle? Reach out to us in the comments below and we are happy to help!

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Florian spent 5 years with McKinsey as a senior consultant. He is an experienced consulting interviewer and problem-solving coach, having interviewed 100s of candidates in real and mock interviews. He started StrategyCase.com to make top-tier consulting firms more accessible for top talent, using tailored and up-to-date know-how about their recruiting. He ranks as the most successful consulting case and fit interview coach, generating more than 500 offers with MBB, tier-2 firms, Big 4 consulting divisions, in-house consultancies, and boutique firms through direct coaching of his clients over the last 3.5 years. His books “The 1%: Conquer Your Consulting Case Interview” and “Consulting Career Secrets” are available via Amazon.

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Case Interview Frameworks: Important Tools to Ace the Case [2024]

• Last Updated January, 2024

Former McKinsey Engagement Manager

Common Case Interview Frameworks

Commonly Used Frameworks

Why Do Interviewers like them?

The Most Efficient Way to Learn Frameworks?

Frameworks Can Help Your Case Interview

How Should You Use Case Interview Frameworks?

2 Basic Frameworks You Need To Know

A case interview framework is a structured way of thinking about a particular type of business problem. It breaks a business problem into the component parts that need to be analyzed to identify the root cause of the problem and develop a solution.

Case interview frameworks are important because consulting interviewers don’t want a canned solution from the front page of the Wall Street Journal or a business school textbook. They  look for candidates who have a structured process for thinking through the key aspects of a business problem to find its solution.

This structured process is easy to show by using a case interview framework.

In this article we’ll discuss:

• Examples of case interview frameworks,
• Why consulting interviewers like case interview frameworks,
• How frameworks help ensure you’ll solve your case interview,
• 2 Basic frameworks to learn before you interview,
• Commonly used case interview frameworks,
• The most efficient way to learn frameworks, and 
• How you should use frameworks in your consulting interviews. 

Let’s get started!

Multiple different case frameworks exist because companies face many different types of problems. A case framework that will help a company think through the marketing approach needed to support a new product launch is not the same as the one it will use to decide if it wants to cut costs.

Commonly used case interview frameworks include:

• The BCG 2 x 2 Matrix
• The Profitability Formula
• The McKinsey’s 7S Framework
• Porter’s 5 Forces

Case interview frameworks can be tailored to the issues in a consulting case to highlight your structured problem-solving skill and ensure you solve the case.

Why Do Interviewers Like Case Interview Frameworks?

A consultant who has memorized a textbook solution to fixing a business problem will know what to do when they see a client with  that  particular problem.

But all clients—even ones in the same industry—are different. They might have different fixed and variable costs, sell to a market segment with unique requirements, have a different management structure, or use a different technology or production process to manufacture their product.

Because of this, even if they face a similar problem to the one in the textbook, the tools needed to solve the problem might be different.

Because all client problems are different, management consultants don’t memorize answers to business problems. They use a structured process that helps them find the solution, no matter what the client’s problem is.

The prospect of figuring out the solution to a business problem you’ve never seen before might sound intimidating. Luckily, case interview frameworks can help identify the key issues to be addressed. You can think of them as containing the building blocks you can use to solve a case study problem.

Once you’re familiar with common frameworks, you can use them to build your own case interview frameworks to analyze the issues specific to any consulting case you’re given.

Case Frameworks Can Help You Ace Your Interview

A list of commonly used business frameworks can look more like alphabet soup than something that can help you solve a consulting case study problem. Are they really worth learning?

Yes. Frameworks can help you make sure you don’t forget key aspects that need to be considered to address a particular type of business problem. Because of this, they’re valuable tools when you’re doing interview prep. Take one of the simplest business frameworks: Profitability.

If you are given a case study interview question that involves profitability, you’re going to want to be familiar with this formula. 

It’s not important that you use the exact same terms in precisely the same order. What’s important is that you remember the key components of profitability. If you examine each of these 4 key components, you’ll find out where to look more closely to find the answer to the client’s problem. 

If you forget one of these key components of profitability, you could spend the twenty-five minutes you have to solve the case study interview question probing the wrong areas and never find the solution.

Case frameworks are tools that ensure you look at all the key aspects of a business problem. From there, you still need to interpret the information you receive from your interviewer and use your findings to develop a solution.

But getting the key facts you need to solve the case is a critical first step in your consulting interview prep.

2 Basic Case Interview Frameworks to Help You Structure Any Case Question

If this is the first time you’ve even heard of a case interview framework, the best place to start your case interview prep is with 2 basic frameworks you can use to address any business problem. Continue reading this section to learn about them.

If you’ve studied business at the undergraduate or graduate level , the basic frameworks can still help you. But you may want to skip down to Commonly Used Business Frameworks to begin your consulting interview prep.

Profitability Framework

The most basic way of looking at a case is to consider whether it asks you to solve a profit and loss issue, or not. This is the most common case type you will encounter because as management consultants we are paid to grow businesses and growing businesses is measured in profits and revenue.

If the interview question addresses a business’s profits and losses (P&L), you can apply the profitability formula to solve the problem. If the question only addresses one component of profitability — either costs or revenues, you can use the relevant segment of the formula to address it.

As mentioned above, the profitability formula is:

Price – How much does the product sell for?

Units Sold – How many products were sold over the period being considered?

Fixed Costs – Costs that you incur just because you are in business regardless of how many units you sell. Examples: factory rent, equipment depreciation, compensation for salaried employees, and property taxes. A way to think about fixed costs is that a cost that does not change over the short-term, even if a business experiences increases or decreases in its sales volume.

Variable Costs – Costs that only incur when you begin to produce units (if you sell nothing you have no variable costs). Examples: sales commissions, credit card transaction costs, and sales taxes. A way to think about variable costs is that a cost that does change over the short-term. More sales volume will mean more variable costs.

The first thing you want to do in a profitability case study interview question is to understand which component of the profitability formula has the biggest impact on the client’s bottom line over the time period you’re considering. Go through each of the 4 parts of the formula to figure that out.

Next, you’ll want to look beyond the formula. If nothing internal to the client has caused the change in profitability, there must be an external factor affecting it. 

External factors that might affect a company’s profitability include a new product introduction, price change, or promotion made by a competitor. They could also include a change in the regulatory environment or in the level of demand from customers.

Example Using the Profitability Framework in a Case Interview

The manufacturer of fidget turners, a simple toy that allows children to expend their excess energy without getting out of their seat and disrupting their classroom, needs help with a profitability problem. 

While their toys are widely popular, the company is losing money. What is the source of their problem?

The consulting candidate asks questions and finds that:

• Price – There have been no recent changes in the price the fidget turner is sold for.
• Units sold – Demand for the product has risen substantially. It’s popular among children with attention deficit disorder. The market for the fun toy has expanded to other children and even adults.
• Fixed cost – There have been no recent changes in the company’s fixed costs.
• Variable cost – The cost of the underlying materials used to make the product have risen substantially. The product is comprised primarily of plastic and ball bearings. The cost of plastics has increased with an upward trend in the prices of petrochemical products.

As a result of this analysis, the candidate says that the change in the manufacturer’s profitability is driven by a change in their variable costs – specifically plastics. 

She recommends that the company either find a substitute material that it can use to manufacture its products at lower cost or increase the price of fidget turners.

Non-profit Case Framework

A non-profit question might have a charitable organization, an educational institution, or a government agency as the client. They might also have a business client, but address an issue that is not related to profit and loss such as employee retention or branding.

The key to answering a non-profit case study question is to understand the key performance index for the client. The key performance indicator, or KPI, is the measure the client is trying to improve or maximize. For example:

• A public school system might be trying to improve student scores on a state-wide standardized test.
• A government agency might be trying to increase the number of free lunches provided to children of families under a certain income threshold over the summer months.
• A fast-food chain might be trying to reduce employee turnover.

When addressing a non-profit case study interview question, first, determine what the client’s key performance indicator is. Once you’ve determined the KPI, break it down into relevant components that allow you to dive deeper into the problem and understand where the client is performing well and where things have taken a turn for the worse.

For example, if the client is a government agency trying to ensure that low-income children have enough to eat over the summer months when free school lunches aren’t available, the KPI might be the number of qualifying free lunches provided. These lunches could be further broken down geographically, by either town or county.

Because these lunches are often provided by schools, the KPI could also be broken down by the age of the child receiving the lunch (grammar-school-aged, middle-school-aged, and high-school-aged). 

These breakdowns would let you understand whether a decline in lunches was caused by an issue affecting one town, or an issue primarily affecting a particular age group. Or, perhaps the decline in free lunches served was consistent across the entire program area and target population.

As with a profitability case, you also want to consider both factors internal to your client and external factors that affect your client’s KPI. 

Benchmarking your client’s performance relative to similar agencies in other states, or relative to the results of groups that provide different types of assistance to the same target audience in the same geographic region can help.

Example Using the Non-Profitability Framework in a Case Interview

• A state agency that provides free lunches to low-income children found that the number of lunches served over the summer declined substantially from the prior year. The agency wanted to understand the root cause of this decline.

The candidate asked questions about the operations that the agency oversees. He found that:

• Overview – The agency spent 10% less on its summer lunch program this year than in prior years.
• KPI – That the agency’s key performance indicator is the number of lunches provided to low-income children.
• The overall economic health of the state had not changed substantially from the prior year.
• The decline in lunches was focused specifically in a couple of geographic regions – low-income cities where schools were closed over the summer for renovations and where lunches could not be served.

As a result of his analysis, the candidate concluded that while coming in below budget is usually a good thing, for this state agency, it was not. The agency’s KPI was the number of meals served to needy children and the savings came from not being able to provide services in a couple of cities. This meant that children were going hungry.

The candidate recommended that each year, the agency find out in advance if schools that serve the free lunches they fund will be closed over the summer. 

If they will be closed, the agency can look for an alternate location where they can provide lunches for children, such as a community center.

Practice using the profitability and non-profit frameworks to solve case study interview questions until you feel comfortable using them. You can find more about How to Practice Consulting Case Study Questions and find Examples of Consulting Case Study Questions on the My Consulting Offer website.

Commonly Used Case Interview Frameworks that Will Help You Ace Your Case

Once you have mastered the profitability and non-profit frameworks, you can add frameworks that have been developed to analyze specific types of business problems to your case study interview prep tool box.

While it is important to know these frameworks to build out your own business acumen, remember that coming in with a canned framework such as these will likely not get you the offer. So we recommend you become familiar with these frameworks but DON’T MEMORIZE THEM JUST TO USE THEM ON THE INTERVIEW.

Case Prep Tool 1: BCG 2 x 2 Matrix

This framework can be used to identify which business segments the company should continue to invest in, and which should not receive capital or should even be sold off. This framework is called a 2 x 2 it categorizes each segment by 2 different factors:

• Market growth and
• Market share relative to the competition.

This categorization puts each business segment into one of four buckets:

Star – A business segment that has high growth and high market share is often very profitable. These business segments should receive further investment so they can continue to grow.

Cow – A business segment with low growth but high market share is likely to be a stable, profitable business. The profits of this type of business can be reaped over time to invest in other, higher growth business segments.

Dog –  A business segment with low growth and low market share is often not profitable and not likely to improve without substantial investment. The company should consider divesting these business segments to free up cash for more profitable businesses.

? – A business segment with high market growth but low share requires further study. Is further investment likely to result in market share growth, allowing this business segment to become a star? Or is it likely to become a dog over time?

Case Prep Tool 2: SWOT Analysis — Strengths, Weaknesses, Opportunities and Threats

• Internal or external — Are they something the company has control over or not, and
• Helpful or Harmful.

This categorization puts each factor affecting the business into one of 4 buckets:

Strengths –  A factor that is internal to the organization and helps it to achieve its objectives is a strength that can be leveraged to improve performance over time. Example – strong engineering capabilities.

Weaknesses – A factor that is internal to an organization and harmful is a weakness. This is something the company will need to work to overcome. Example – weak brand awareness in the target market.

Opportunities – A factor that is external to the business that is helpful is an opportunity that can be leveraged to improve profitability. Example – a competitor experiencing production constraints.

Threats – A factor that is external to the business but harmful is something the business should seek to overcome or the limit risk of. Example – new government regulation in their market.

The SWOT Analysis framework can be used to identify actions that a company should take to capitalize on strengths and opportunities and minimize weaknesses and threats.

Case Prep Tool 3: 3 Cs Framework

The Customer – Questions to consider include: Who is the customer? What are their requirements for the product or service? What segments exist in the market? What does each segment look like in terms of growth rates, price sensitivity, etc.?

The Company – Questions to consider include: What is the company’s current product or service offering? How is it differentiated from that of the competition? Does the company have internal capabilities that they can use to create an advantage relative to competitors? What are the company’s current market share and growth rate? How strong is it financially?

The Competitors –  Questions to consider include: What competitive products or services are in the market and how do they compare to the company’s product? This analysis should include not only products that are directly competitive, but also substitutes for the company’s products. 

What internal capabilities do competitors have that could give them an advantage relative to the company’s product?  Are their barriers to entry into the market or is it easy for new competitors enter at any time?

The better a company understands its customers, develops a differentiated product to better serve their customers, and creates barriers that prevent competitors from bringing equivalent products to market, the better strategic position the company is in.

Case Prep Tool 4: 4 Ps Marketing Framework

The 4 Ps framework is a tool used in developing a marketing strategy that will help differentiate a company’s product from competitive products. The 4P framework breaks down the key components of analysis into:

Product – Whether the company is selling a tangible product or a service, they must be clear on what they are offering customers. Is their offering a bare-bones product or does it have a quality level or features that set it apart from alternatives?

Price – The price charged for a product can be set high or low, depending on what it will command in the marketplace. Price has an important impact on sales but also (and inversely) on the company’s bottom line.

Promotion – Potential customers must be made aware that the product exists, understand what distinguishes it from competitive products, and be encouraged to buy it. Promotion includes advertisements, public relations, social media, email marketing, discounts, etc.

Placement – Potential customers need to be able to purchase the product, either at a store or online. Placement can be prominent — at the front of a store or on an endcap — or not. Placement is about making the product easy to find and convenient to buy.

What Is the Most Efficient Way to Learn Frameworks?

The most efficient way to learn case interview frameworks is to first focus on the 2 that can help you analyze any case study interview question— the profitability and non-profit frameworks.  

You do not need a degree in business to be able to use these tools. Once you feel comfortable using the profitability and non-profit frameworks, you can add other business frameworks to your consulting interview prep.

Tailor Your Own Case Interview Frameworks

The most important thing to remember about frameworks is that no one expects you to present one straight from a business textbook and use it in a case interview. 

In fact, consultants prefer candidates to create their own case interview frameworks for analyzing a case rather than to use an off-the-shelf framework. 

Creating your own case interview frameworks shows that you’ve taken the time to consider the specific client problem you’ve been asked to address and have the capability to come up with the key elements of analysis on your own.

This is the secret to how many of our clients are able to gain their offers. They begin their consulting interview prep by learning what a framework is, then mastering the profitability and non-profitability frameworks, and finally learning to build their own case interview frameworks.

Congratulations on making it to the end of our crash course on case interview frameworks! 

We’ve covered:

• What case interview frameworks are,
• Why consulting interviewers love case interview frameworks,
• How to use frameworks help ensure you’ll solve your case,
• The 2 Basic frameworks to learn today,
• Commonly used frameworks,
• How to best use frameworks in your consulting interviews. 

Still have questions?

If you still have questions on how to develop your own case interview frameworks, leave them in the comments below. We’ll ask our My Consulting Offer coaches and get back to you with answers.

Also, we have tons of other articles diving into the things you need to know to get an offer from a top consulting firm, including:

• Our Ultimate Guide to Case Interview Prep ,
• MECE – Mutually Exclusive, Collectively Exhausting , and
• Tips on Case Interview Practice .

Help with Case Study Interview Preparation

Thanks for turning to My Consulting Offer for advice on case study interview prep. My Consulting Offer has helped almost 85% of the people we’ve worked with get a job in management consulting.

We’ve helped people who are just beginning the case interview process to people who only had less than 1 week to prepare including undergrads, MBAs, PhDs, and working professionals.

We want you to be successful in your consulting interviews too.

If you want a step-by-step solution to land more offers from consulting firms, then  grab the free video training series below.  It’s been created by former Bain, BCG, and McKinsey Consultants, Managers and Recruiters.

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11 must-know case interview frameworks

This is a complete guide to case interview frameworks.

In this in-depth guide, you’ll learn:

• 11 must-know consulting frameworks to ace your case interviews
• How to use these frameworks in your case interviews
• And how to create custom frameworks

So, if you want to land an offer from a top consulting firm, this guide is for you.

Let’s dive right in.

Table of Contents

Get the latest data about salaries in consulting, what are case interview frameworks.

A case interview framework is a structured way to approach how to solve a problem .

In other words:

Case interview frameworks help Consultants (and aspiring Consultants) brainstorm and organize their ideas to solve complex problems.

For example, a case interview framework is the profitability framework.

Let’s imagine this business problem:

Your client is manufacturing cars. And, for the past 2 years, they have been experiencing declining profits. They hire us to determine the root causes of this business problem.

And to help this company, you should explore the two main profit drivers: revenues and costs.

And explore if revenues decreased (one cause of declining profits).

Or explore if costs increased (another cause of declining profits).

Well… this (simple) example is a business framework.

Related articles

Check also these articles to ace your case interviews:

16 case interview tips

16 case interview mistakes

Ace market sizing questions (incl. 3 market sizing frameworks) 

Case interview preparation

280 case interview examples

Let’s detail the 11 common case interview frameworks you must know to ace your case interviews .

And let’s start with Porter’s five forces.

Case interview framework 1: Porter’s Five Forces

Let’s start with an analysis of external factors.

And one of the most well-known business frameworks is Michael Porter’s Five Forces model.

And it can be found in the book Competitive Strategy: Techniques for Analyzing Industries and Competitors .

Michael Porter’s Five Forces model says the following:

Competitive advantage in an industry is dependent on five primary forces :

• The threat of new entrants
• How much bargaining power do buyers have
• The bargaining power of suppliers
• Threat of substitute products
• Rivalry with competitors

The degree of these threats determines the attractiveness of the market:

• An intense competition allows minimal profit margins.
• Mild competition allows wider profit margins.

Therefore, the goal is to assess whether a company should enter/exit the industry or find a position to defend itself against these forces best or influence them in its favor .

For instance, your market entry framework should include the components of Porter’s Five Forces. 

The threat of new entrants (barriers to entry)

Several factors determine the degree of difficulty in entering an industry:

• Economies of scale

Product differentiation

• Capital requirements vs. switching costs
• Access to distribution channels
• Cost advantages independent of scale
• Proprietary product technology
• Favorable access to raw materials
• Favorable location
• Government subsidies
• Learning curve
• Government policy

Relationship with buyers (buyer power)

• It is concentrated or large purchases volumes relative to the seller’s sales
• The products it purchases front the industry are standard or undifferentiated
• It faces few switching costs
• Buyers pose a credible threat of backward integration
• The industry’s product is unimportant to the quality of the buyer’s products or services
• The buyer has full information
• Purchasing potential
• Growth potential
• Structural position: intrinsic bargaining power and propensity to use it
• Cost of servicing

Relationship with suppliers (supplier power)

A supplier group is powerful if:

• It is not obliged to contend with other substitute products for sales in the industry
• The industry is not an important customer of the supplier group
• The supplier group is an important input to the buyer’s business
• The supplier group’s products are differentiated, or it has built up switching costs
• The supplier group poses a credible threat to forward integration

Key issues in purchasing strategy from a structural standpoint are as follows:

• Stability and competitiveness of the supplier pool
• An optimal degree of vertical integration
• Allocation of purchases among qualified suppliers
• The threat of backward integration

Substitute products

Substitute products that deserve the most attention are those that:

• Compete in price with the industry’s products
• Are produced by industries earning high profits

Rivalry among competitors (competitive analysis)

Now, let’s analyze the competitive landscape.

Rivalry among existing competitors increases if:

• Numerous or equally balanced competitors exist
• Industry growth is slow
• Fixed costs are high
• There is a lack of differentiation (commodity market)
• There are low switching costs
• Production capacity is augmented in large increments

To end this first section about Porter’s Five Forces, you can watch this video made by the channel Business To You.

Case interview framework 2: the 4 P’s

The 4Ps are:

And it’s often seen as a Marketing framework.

The 4Ps framework can help you in your case interviews in one of the following situations :

• A market entry strategy or a product launch strategy
• To understand why sales (or market shares) have decreased

Now, let’s look at the different elements of the 4P framework.

In examining the competitiveness of a company’s product, whether it is a new product being introduced on the market or an existing product manufactured by the company, one must examine the product itself.

The following are some of the questions you might find helpful in assessing a product’s competitiveness :

• Does the product serve a particular market segment? Is it a mass market or a niche product
• Is it differentiated enough to stand out against the competition? If yes, how? If not, what can be done to improve its value perception?
• What features can be added to the product that would add to the perception of value to the consumer?
• What are some of the packaging issues that might present an opportunity or impediment to increased sales?
• Does my packaging reflect the positioning of the product?
• Does the product have patent protection?
• What financial role is the product playing (i.e., cash cow, long-term profit potential, etc.)?
• Are there any other products that can act as substitutes?

Getting the right price for a product is extremely important for the company’s success.

Unfortunately, sometimes the right price is not easy to determine.

Depending on the price elasticity of the product, a 1% increase in price has anywhere from a -20% reduction to a 25% increase in net income.

The most important factor that drives price is the customer’s perceived “value” of the product .

This is also known as the customer’s willingness to pay.

For example, if a company produces shirts with a unit cost of $10, but the market perceives the product as fashionable or has the right brand name, the shirt can be priced to capture any consumer surplus at $50 or even $80 per shirt.

The same manufacturer introduces another shirt at the same cost the following season.

This time, however, the shirt is no longer considered in vogue and thus has little “value.”

This time, the shirt would be priced at $25.

Other factors determining a product’s price are:

• The Cost to Produce COGS : maintain low costs to capture a bigger profit margin.
• The price paid previously – the expected price: if consumers are used to paying a certain price for a product, it is challenging to convince them to pay a $20 premium for the same product. However, if their perceived product value is higher than what they paid in the past, there’s room to capture some consumer surplus.
• The price of substitutes : the price of a product is driven down if the product can be easily substituted by another that serves the same function.

After assessing the product positioning and understanding who your customers are, you need to develop a strategy around which distribution channel to use and where to sell your product .

The distribution channel can be through a third party or an in-house sales force.

And the distribution channel is responsible for transmitting the company’s product to the customer (wholesaler, retailer, end-user).

The selected distribution channel and the outlets at which the product is sold MUST be aligned with the product’s positioning and focused customer segment.

There are many issues to consider when examining the place/channel distribution.

Below are some thoughts to formulate a strategy for delivering the product to market :

• What are the customer preferences regarding distribution?
• Which channels most closely align with the company’s strategy?
• Does the company need to build new channels or eliminate existing ones?
• Does it make more sense to go direct to the end-user or deliver the product through intermediaries?
• What are the economics of the channel?
• What would be the relationship of the company’s sales force in this arrangement?
• How would the company address any potential shifts in power to the channel?
• How do competitors distribute their products?

Promoting and developing a specific brand for the product has many benefits :

It develops a certain perception of the product in consumers’ eyes.

The product’s success will depend on the message conveyed to the consumer and what that consumer ultimately believes about the product.

To maintain a certain perception of exclusivity, traditional advertising (mass or niche), refraining from advertising, word-of-mouth marketing, direct mail, etc., can all be included in promotion and branding.

Here is a list of issues worth analyzing in case interviews:

• How is the marketing strategy different from the competition?
• What message are we trying to communicate? What is the objective?
• Where are we advertising our product (newspapers, TV, radio, Internet, etc.)?
• Pull strategy: (direct at end-user) use of advertising, direct mail, telemarketing, word of mouth, and consumer promotions.
• Push strategy: trade promotions, sales aids, and sales training programs
• How much money is allocated to marketing?
• How are competitors marketing their products?

Ace market sizing questions

Case interview framework 3: the 3 C’s

Knowing the 3C framework and the details upon which the framework is based is crucial to cracking the case .

For instance, the 3C framework is often used to assess the business landscape.

Or by simply defining a growth strategy.

For instance, your market entry framework should include the 3C’s. 

By analyzing the three elements, Consultants can identify the key success factors and create a viable marketing strategy.

DO NOT attempt to tackle a case during the interview by saying, “I would like to use the 3Cs framework…”

Before you even finish your sentence, the interviewer will have decided to reject you.

This point will be emphasized many times during this guide.

A good first step in assessing the business landscape is to examine the customer, the people whose problems the industry is trying to solve.

Below are eight factors to consider when examining the customer.

#1: Customer Identification

Who is the customer?

In trying to identify the customer, remember that the person who makes the purchase decision, the person who pays (the customer), and the end user (the consumer) may all be different people.

For example, a doctor may prescribe medicine that will be paid for by an insurance company (the customer) and ultimately used by a patient (the consumer).

#2: Customer Segmentation

Is it possible to group customers into distinct segments?

Customer segmentation can make it easier to understand customer needs and preferences, the size and growth rate of different revenue streams, and to identify trends.

It may make sense to segment customers by: 1. Age group 2. Gender 3. Income level 4. Employment status 5. Distribution channel 6. Region 7. Product preference 8. Willingness to pay 9. New versus existing customers 10. Large versus small customers.

How big is the market?

How big is each customer segment?

How many customers are there in each segment, and what is the dollar value of those customers?

How fast is the market growing?

What is the growth rate of each customer segment?

#5: Customer Preferences

What do customers want?

Do different customer segments want different things?

Are the needs and preferences of customers changing over time?

#6: Willingness to Pay

How much is each customer segment willing to pay?

How price sensitive is each customer segment?

For example, students will normally be very price sensitive, which means that offering student discounts can increase units sold by enough to increase total revenue.

#7: Bargaining Power

What is the concentration of customers in the market relative to the concentration of firms?

If there is a small number of powerful customers who control the market?

Then it may be necessary to either play by their rules or search for a more favorable market.

Do customers face high switching costs?

If customers face high switching costs, this will reduce their bargaining power and allow firms to charge higher prices than would otherwise be possible.

#8: Distribution

What is the best way to reach customers?

Does each customer segment have a preferred distribution channel?

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Competitors

It is also important to understand the business landscape to understand the competition .

Competition can come from firms within an industry offering similar solutions to the same group of customers (for example, Pepsi and Coca-Cola).

But, competition can also come from firms in other industries who produce substitutes .

Substitutes may have quite different characteristics (for example, petroleum and natural gas).

Still, they represent a form of indirect competition because consumers can use them in place of one another (at least in some circumstances).

For example, petroleum and natural gas might produce heat and energy.

Below are ten factors to consider when examining the competition.

#1: Competitor Identification

Who are the company’s major competitors?

Taking Cadbury as an example, some of its major competitors might include Lindt, Ferrero, Nestlé, Hershey’s, and Mars.

What products and services does the competition offer?

#2: Substitutes

Who are the company’s indirect competitors? That is, which firms are producing substitutes?

Identifying indirect competitors helps to take a broader view of what the company offers.

For example, Cadbury sells chocolate.

But it might be considered a snack food company.

So indirect competitors might include companies like Lays, Cheetos, and Doritos.

#3: Competitor Segmentation

Is it possible to segment competitors in a meaningful way?

The competition might be grouped by distribution channel, region, product line, or customer segment.

#4: Size and Concentration

What are the revenues and market shares of major competitors?

What is the concentration of competitors in the industry?

Are there many small competitors (a low-concentration industry) or a few dominant players (a high-concentration industry)?

Examples of high-concentration industries include oil, tobacco, and soft drinks.

Examples of low-concentration industries include wheat and corn.

#5: Performance

What is the historical performance of the competition?

Relevant performance can be profit margins, net income, and return on investment.

#6: Industry Lifecycle

Where is the industry’s lifecycle (early stage, growth, maturity, or decline)?

#7: Industry Drivers

What drives the industry: brand, product quality, the scale of operations, or technology?

#8: Competitive Advantages

What is the competition good at?

How sustainable are these advantages?

What are the competition’s weaknesses? How easily can these weaknesses be exploited?

#9: Competitive Strategy

What strategy is the competition pursuing?

Is the competition producing products that are low-cost or differentiated?

What customer segments is the competition targeting?

What are the competition’s pricing and distribution strategies?

What is the competition’s growth strategy?

Are they seeking growth by focusing on customer retention, increased sales volume, entering new markets, or launching new products?

#10: Barriers to entry

Key barriers to entry include capital requirements, economies of scale, network effects, product differentiation, proprietary product, technology, government policy, access to suppliers, access to distribution channels, and switching costs. (see Porter’s five forces model).

In assessing the business landscape, it is not enough to understand the customer and the competition.

Understanding the firm from whose perspective you are analyzing the industry is also important .

Below are ten factors to consider when examining the company.

#1: Performance

What is the historical performance of the company?

What is its market share?

If profits are falling, what is the cause of the issue?

#2: Competitive Advantage

What resources and capabilities does the company possess?

Consider tangible assets (property, plant, equipment, inventory, and employees) and intangible assets (brand, patents, copyrights, and specialized knowledge).

How sustainable are the company’s advantages? What are the company’s weaknesses, and can they be remedied?

#3: Competitive Strategy

What is the company’s competitive strategy?

Is the company producing products that are low-cost or differentiated?

Which customer segments does the company target? What are the company’s pricing, distribution, and growth strategies?

#4: Products

What does the company offer, and how does it benefit consumers?

Does the product have any downsides or side effects?

Is the product differentiated?

How does the company’s product offering compare with the competition?

Are there substitutes available?

#5: Finances

If the company is considering a particular course of action, does it have sufficient funds available?

Financing may be secured from various sources, including internal cash reserves, bank loans, shareholder loans, bond issues, or the sale of shares.

How many units will the company need to sell to cover the cost of the project?

Is there sufficient market demand?

#6: Cost Structure

To understand a company’s cost structure, it helps to break each business unit down into the collection of activities performed to produce value for customers.

How each activity is performed, and its economics will determine a firm’s relative cost structure within its industry.

Are costs predominantly fixed or variable?

How does this compare with the competition?

#7: Organisational Cohesiveness

Understanding a firm’s inner workings is important since competitive strategies can fail if they conflict with its culture, systems, and general business.

The organizational aspects of a firm can be examined using the McKinsey 7 S Model.

#8: Marketing

How do customers perceive the company and its products?

How does the company communicate with customers?

#9: Distribution Channels

What distribution channels does the company use to reach customers?

Are there other channels that are more cost-effective or preferred by customers?

#10: Customer Service

Does the company have a customer loyalty program?

How does the company interact with customers and support its customers post-sale?

Are employees empowered to solve problems and delight customers?

Case interview framework 4: PESTEL (or PESTLE)

PESTEL is an acronym for five factors – Political, Economic, Social, Technological, Legal, and Environmental – that can influence a company’s performance or strategic decisions.

A PESTEL analysis examines these external forces that can have strategic implications for the company .

And conducting a PESTEL analysis can be helpful for three reasons:

Understanding the facts : Understanding the big picture can help a business make informed decisions and avoid incorrect assumptions based on past experience.

Anticipating change : Understanding the macro environment can help a business identify trends and anticipate change, allowing it to take advantage of opportunities and manage potential threats.

Avoiding failure : Understanding the macro environment can help a business (and its investors) to identify projects that are likely to fail due to unfavorable conditions.

Below is a list of some of the general issues the interviewee should consider:

Political forces

• Are there any legal or political restrictions, such as new legislation, that would impede the product’s sale?
• What regulations must be addressed before introducing the product (health regulations/antitrust, etc.)?

Economic factors

• Has the economy’s overall performance impacted the sale of my product? Interest rate? Unemployment figures? Exchange rates? Balance of Payments? Free-Trade Agreements?

Socio-cultural forces

• What norms/cultural practices should be considered when entering a new market?
• Are there any trends in religious practices/traditions/rituals that should be considered?

Technological factors

• What are some of the technological trends in the market that could help/diminish the sale of the product (e.g., paper-based media vs. internet)?
• What R&D advancements were made by the market that would have a long-term impact on the very survival of the company (e.g., pay-per-view video vs. video stores)?

Environmental factors

• How does the business affect the environment?

Legal factors

Finally, the folks from the YT channel Business To You have made a great video about the PESTLE model:

Case interview framework 5: Profitability framework

There’s a good chance that the cases discussed during the interview will often touch on issues of declining profitability .

This framework is very helpful in organizing your thoughts and methodically approaching profitability problems.

According to the Profitability Framework’s opening statement, profit is a function of revenue and costs.

A company’s profitability declines when revenue has dropped, costs have risen, or both.

The goal is to identify the component of the equation that is reducing profitability and determine the best course of action for fixing it.

A quick note:

Variable costs are costs that vary with the units sold.

Fixed costs are costs that do not vary with the units sold.

Case interview framework 6: Unit contribution

The following is a framework you can use to help you understand the economics of the product’s contribution.

This framework is critical when forecasting the overall success of the product .

Case interview framework 7: Break Even

A break-even analysis tells you how many units of a product must be sold to cover the fixed and variable production costs.

For instance, this is important when deciding whether to launch a new product.

Also, a break-even analysis concerns a product’s contribution margin (selling price minus variable costs per unit; see the previous section).

So, the contribution margin is the excess between the selling price of the product and the total variable costs .

For example, if an item sells for $100, the total fixed costs are $25 per unit, and the total variable costs are $60 per unit, the product’s contribution margin is $40 ($100 – $60).

This $40 reflects the revenue collected to cover the remaining fixed costs, which are excluded when figuring the contribution margin.

Case interview framework 8: ROI

ROI is an acronym for Return On Investment.

The ROI is a performance measure that a company can use to evaluate the return from an investment or to compare the returns of several different investments .

For example, if you spent $10,000 and made $15,000, your ROI would be 50%.

[ ( $15,000 – $10,000 ) / $10,000 ] x 100% = 50%

Case interview framework 9: Payback

A payback period is the time needed to recover the cost of an investment.

Simply put, it is the time an investment reaches a breakeven point .

For example, if a company invests $300,000 in a new production line, and the production line then produces a positive cash flow of $100,000 per year, then the payback period is 3 years.

Another example:

You are offered to invest in the project $120K.

The project will bring on average $30K a year in net profit.

Using the payback formula, we get a payback period for capital invested of four years (we divided 120,000 by 30,000).

Case interview framework 10: Value Chain

A Value Chain Analysis is a concept first described and popularised by Michael Porter in his 1985 book, Competitive Advantage .

Value Chain Analysis involves identifying all the important business activities and determining which ones give the company a competitive advantage .

Also, a value chain analysis can be performed to identify potential root causes of a business problem.

For instance, a Value Chain Analysis can be undertaken by following three steps:

• Break down a company into its key activities under each heading in the model.
• Identify activities that contribute to the firm’s competitive advantage by giving it a cost advantage or creating product differentiation.
• Develop strategies around the activities that provide a sustainable competitive advantage.

Cost advantage

A business can achieve a cost advantage over its competitors by understanding the costs associated with each activity.

And then organizing each activity so that it is as efficient as possible.

Porter identified ten cost drivers related to each activity in the value chain : 1. Economies of Scale 2. Learning 3. Capacity utilization 4. Linkages among activities 5. Interrelationships among business units 6. Degree of vertical integration 7. Timing of market entry 8. Firm’s policy on targeting cost or product differentiation 9. Geographic location 10. Institutional factors (regulation, union activity, taxes, etc.)

A firm can develop a cost advantage by controlling these ten cost drivers better than its competitors.

A firm can achieve product differentiation by focusing on its core competencies to perform them better than its competitors .

Product differentiation can be achieved through any part of the value chain.

For example, procurement of unique inputs and not widely available to competitors, providing high levels of product support services, or designing innovative and aesthetically attractive products.

Case interview framework 11: Ansoff Matrix

The Product/Market Expansion Matrix (or “Ansoff Matrix” as it is sometimes called) was developed by a Russian-American mathematician named Igor Ansoff.

And it was first explained in his 1957 Harvard Business Review article entitled Strategies for Diversification.

The Product/Market Expansion Matrix can help a firm define a product-market growth strategy by focusing on four growth alternatives :

1. Market Penetration; 2. Market Development; 3. Product Development; and 4. Diversification.

The four alternative growth strategies are:

Market Penetration : A strategy to increase sales without departing from the original product-market strategy. This involves increasing sales to existing customers and finding new customers for existing products.

Market Development : A strategy to sell existing products to new markets (normally with some modifications). Ansoff described this as a strategy “to adapt [the] present product line … to new missions.” For example, Boeing might adapt a passenger aircraft model for cargo transportation.

Product Development : A strategy to sell new products, with new or altered features, to existing markets. Ansoff described this as a strategy to develop products with “new and different characteristics such as will improve the performance of the [existing] mission.” For example, Boeing might develop a new aircraft design with improved fuel economy.

Diversification : A strategy to develop new products for new markets, which can be related to the current business (e.g., vertical integration or horizontal diversification) or unrelated (e.g., conglomerate diversification).

Learn how to create custom case interview frameworks

The question then becomes, “How do you use business frameworks in consulting interviews?”.

On the Internet, numerous suggestions exist for how you ought to proceed.

However, the two main schools of thought are Victor Cheng’s frameworks and Marc Cosentino’s Case In Point.

However, these two approaches have one thing in common: they both attempt to impose pre defined frameworks on cases .

For instance:

For a market entry case, those resources tell you the market entry framework you should use.

And for an M&A case, those resources tell you exactly the merger and acquisition framework you should use.

They push you to adapt the problem to your tools .

Since every case is different, this will inevitably result in average outcomes and rejections.

For instance, 10 different M&A cases should have 10 different merger and acquisition frameworks. 

Another example: 10 different market entry cases should have 10 different market entry frameworks. 

So, you have to learn how to create custom case interview frameworks.

You must create your own unique frameworks using First Principle Thinking .

Those case interview frameworks must be MECE .

To do so, I’ve created free training to help you in that journey .

You can sign up for free with the link below.

Case interview frameworks: Final words

I hope you enjoyed this updated guide to business frameworks.

Those consulting frameworks will help you join a top consulting firm.

Now, I’d like to hear from you:

Which frameworks from today’s guide do you use the most?

Or which frameworks are new to you?

Has this guide helped you develop your business acumen?

Let me know by leaving a quick comment below right now.

To your success,

P.S. Need help with your case interview preparation?

Check whether our coaching program is a good fit. 

Do you know?

We have a unique coaching model and deliver amazing results .

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You need 4 skills to be successful in all case interviews: Case Structuring, Case Leadership, Case Analytics, and Communication. Enroll in our 4 free courses and discover the proven systems +300 candidates used to learn these 4 skills and land offers in consulting.

Hacking the Case Interview

Looking for a case interview cheat sheet or study guide to help you prepare for your upcoming consulting interviews?

Download our Case Interview Cheat Sheet and Study Guide , which covers all of the most important things you need to know. If you are looking to read the case interview cheat sheet in plain text, we’ve included all of the text below.

This case interview cheat sheet covers:  

What is a case interview?

What do case interviews assess?

What is the structure of a case interview?

What are the common types of cases?

What formulas do you need to know for case interviews?

What numbers do you need to know for case interviews?

What are some case interview tips?

If you’re looking for a step-by-step shortcut to learn case interviews quickly, enroll in our case interview course . These insider strategies from a former Bain interviewer helped 30,000+ land consulting offers while saving hundreds of hours of prep time.

A case interview is a 30- to 45-minute exercise that places you in a hypothetical business situation in which you and the interviewer work together to develop a recommendation or answer to a business problem.

• How can Walmart increase its profitability?
• How can Nike increase customer retention?
• How should Apple price its new smartphone?

A case interview assesses five criteria:

1.   Logical, structured thinking : Can you structure complex problems and ideas in a clear and organized way?

2.  Analytical problem solving: Can you analyze and interpret data to draw the right conclusions?

3.  Business acumen : Do you have a strong understanding of business fundamentals and good business judgment?

4.  Communication skills : Can you communicate clearly, concisely, and articulately?

5.  Personality and cultural fit : Are you a good fit for the work culture of the firm you are interviewing with?

All case interviews follow seven major steps:

1.  Understand the case background : Take notes while the interviewer reads you the case information. Pay particularly close attention to the context, company, and objective.

2.  Ask  clarifying questions : If necessary, ask 1 – 3 questions to clarify the objective of the case, understand the company better, or understand an unfamiliar term.

3.  Structure a framework : Structure a framework to break down the complex business problem into simpler, smaller components. A framework is a tool that organizes different ideas into major categories. Present your framework to the interviewer. Make sure that your framework is MECE .

M utually E xclusive: None of the parts of your framework overlap with each other

C ollectively E xhaustive: All of the parts of the framework account for everything you need to know to solve the case with no major areas missing.

4.  Start the case : How the case will start depends on whether the case is an interviewer-led case or a candidate-led case .

Interviewer-led case : The interviewer will be steering and controlling the direction of the case. They will explicitly point you to which questions to answer.

Candidate-led case : You will be driving the direction of the case. You will propose what area of your framework to start in, what questions you want to answer, what analyses you want to do, and what the next step of the case is.

5.  Solve quantitative problems : There are three major types of quantitative problems you could be asked in case interviews.

Market sizing or estimation questions : You will be asked to calculate the size of a particular market or estimate a particular figure. You may need to make your own assumptions on what number to use or the interviewer may provide you with the data.

Profitability or breakeven questions : You will be asked to calculate the expected profitability of a company or investment decision. You could also be asked to calculate the conditions necessary for a company to break even .

Charts and graphs questions : You will be asked to interpret data from various charts or graphs . These can include bar charts, pie charts, line graphs, scatterplots, bubble charts, and waterfall charts.

6.  Answer qualitative questions : There are two major types of qualitative questions you could be asked in case interviews.

Brainstorming questions : You will be asked to brainstorm a list of ideas for a particular problem or question.

Business judgment questions : You will be asked for your opinion on a business issue or a strategic decision.

7. Deliver a recommendation : Present your recommendation and provide the major reasons that support it. Then, propose potential next steps that you would take if you had more time.

Profitability case : A company is experiencing a decline in profits or profitability and is trying to identify what is causing the decline and what they should do about it.

How to solve:  

• Identify the driver behind the decline in profitability, whether it is from a decline in revenue, increase in costs, or both
• Understand what is causing this by looking at customer needs, competitor moves, and market trends
• Identify ways to improve profitability

Growth strategy case : A company is trying to decide how to best grow its business.

• Determine whether the company is looking to grow organically or inorganically
• For organic growth, consider growth through existing revenue sources and new revenue sources
• For inorganic growth, consider potential acquisitions and partnerships

Market entry case : A company is trying to decide whether they should enter a particular new market.

• Determine whether the market is attractive
• Assess the competitive landscape
• Determine if the company has the capabilities to enter
• Estimate the expected profitability from entering

Merger & acquisition case : A company is trying to decide whether or not they should acquire or merge with a particular company.

• Determine whether the company is attractive
• Assess potential synergies and risks
• Estimate the financial implications

New product case : A company is trying to decide whether or not they should develop and launch a particular new product.

How to solve:

• Determine whether the market that the product targets is attractive
• Assess whether the product meets customer needs and is superior to competitor products
• Determine whether the company has the capabilities to successfully develop and launch the product
• Estimate the expected profitability from launching the product

Pricing case : A company is trying to decide the best way to price a particular product or service.

• Determine the cost to produce the product. This is your minimum price.
• Estimate the customer’s maximum willingness to pay by quantifying the value the product provides. This is your maximum price.
• Investigate the price that competitors are setting for similar products. This will help you determine the optimal price between your minimum and maximum price.

Profit Formulas

• Profit = Revenue – Costs
• Revenue = Quantity * Price
• Costs = Total Variable Costs + Total Fixed Costs
• Total Variable Costs = Quantity * Variable Costs
• Profit = (Price – Variable Costs) * Quantity – Total Fixed Costs

Investment Formulas

• Return on Investment = Profit / Investment Cost
• Payback Period = Investment Cost / Profit per Year

Operations Formulas

• Output = Rate * Time
• Utilization = Output / Maximum Output

Market Share Formulas

• Market Share = Company Revenue in the Market / Total Market Revenue
• Relative Market Share = Company Market Share / Largest Competitor’s Market Share

General Statistics

• Global population: 8 billion
• Average household size: 2.5 people per household
• Average life expectancy: 80 years

Country Population Statistics  

• United States: 320 million
• Canada: 40 million
• Mexico: 125 million
• Brazil: 200 million
• United Kingdom: 60 million
• Germany: 80 million
• France: 60 million
• China: 1.4 billion
• India: 1.4 billion
• Russia: 150 million
• Japan: 125 million
• Australia: 25 million

Tip #1 - Make sure you understand the business problem and objective : Answering or addressing the wrong business problem is the quickest way to fail a case interview.

Tip #2 - Don’t rely on using memorized frameworks : Interviewers can tell when you are regurgitating memorized information and not thinking critically.

Tip #3 - Structure your approach before doing any math calculations : This helps you avoid making unnecessary calculations or reaching a dead-end.

Tip #4 - Talk through your calculations out loud : This decreases the likelihood of making a mistake and helps the interviewer follow what you are doing

Tip #5 - Structure your answer to qualitative questions : Use a simple two-part framework such as internal/external, short-term/long-term, or economic/non-economic.

Tip #6 - Answer “so what?” after every question : Throughout the case, connect each of your answers back to the case objective. What implications does your answer have on the overall business problem?

Tip #7 - Have a firm recommendation : Do not have a flimsy recommendation that switches back and forth between two different recommendations. Pick one and provide support.

Tip #8 - Be 80/20 : You will not have time to answer every single question. Focus on the most important questions that have the greatest impact on your answer. This is the 80/20 principle which states that 80% of the outcome comes from 20% of your effort.

Tip #9 - Be coachable and easy to work with : Interviewers look for people that they would personally want to have on their team. Demonstrate that you would be a great teammate.

Tip #10 - Be enthusiastic : Interviewers want to hire candidates that love their job and will work hard. Displaying enthusiasm shows you are passionate about consulting and working at the firm.

Check out our complete list of case interview tips .

Learn Case Interviews 10x Faster

Here are the resources we recommend to learn the most robust, effective case interview strategies in the least time-consuming way:

• Comprehensive Case Interview Course (our #1 recommendation): The only resource you need. Whether you have no business background, rusty math skills, or are short on time, this step-by-step course will transform you into a top 1% caser that lands multiple consulting offers.
• Hacking the Case Interview Book   (available on Amazon): Perfect for beginners that are short on time. Transform yourself from a stressed-out case interview newbie to a confident intermediate in under a week. Some readers finish this book in a day and can already tackle tough cases.
• The Ultimate Case Interview Workbook (available on Amazon): Perfect for intermediates struggling with frameworks, case math, or generating business insights. No need to find a case partner – these drills, practice problems, and full-length cases can all be done by yourself.
• Case Interview Coaching : Personalized, one-on-one coaching with former consulting interviewers
• Behavioral & Fit Interview Course : Be prepared for 98% of behavioral and fit questions in just a few hours. We'll teach you exactly how to draft answers that will impress your interviewer
• Resume Review & Editing : Transform your resume into one that will get you multiple interviews

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How to Write a Case Study: Bookmarkable Guide & Template

Published: November 30, 2023

Earning the trust of prospective customers can be a struggle. Before you can even begin to expect to earn their business, you need to demonstrate your ability to deliver on what your product or service promises.

Sure, you could say that you're great at X or that you're way ahead of the competition when it comes to Y. But at the end of the day, what you really need to win new business is cold, hard proof.

One of the best ways to prove your worth is through a compelling case study. In fact, HubSpot’s 2020 State of Marketing report found that case studies are so compelling that they are the fifth most commonly used type of content used by marketers.

Below, I'll walk you through what a case study is, how to prepare for writing one, what you need to include in it, and how it can be an effective tactic. To jump to different areas of this post, click on the links below to automatically scroll.

Case Study Definition

Case study templates, how to write a case study.

• How to Format a Case Study

Business Case Study Examples

A case study is a specific challenge a business has faced, and the solution they've chosen to solve it. Case studies can vary greatly in length and focus on several details related to the initial challenge and applied solution, and can be presented in various forms like a video, white paper, blog post, etc.

In professional settings, it's common for a case study to tell the story of a successful business partnership between a vendor and a client. Perhaps the success you're highlighting is in the number of leads your client generated, customers closed, or revenue gained. Any one of these key performance indicators (KPIs) are examples of your company's services in action.

When done correctly, these examples of your work can chronicle the positive impact your business has on existing or previous customers and help you attract new clients.

Free Case Study Templates

Showcase your company's success using these three free case study templates.

• Data-Driven Case Study Template
• Product-Specific Case Study Template
• General Case Study Template

You're all set!

Click this link to access this resource at any time.

Why write a case study? 

I know, you’re thinking “ Okay, but why do I need to write one of these? ” The truth is that while case studies are a huge undertaking, they are powerful marketing tools that allow you to demonstrate the value of your product to potential customers using real-world examples. Here are a few reasons why you should write case studies. 

1. Explain Complex Topics or Concepts

Case studies give you the space to break down complex concepts, ideas, and strategies and show how they can be applied in a practical way. You can use real-world examples, like an existing client, and use their story to create a compelling narrative that shows how your product solved their issue and how those strategies can be repeated to help other customers get similar successful results.  

2. Show Expertise

Case studies are a great way to demonstrate your knowledge and expertise on a given topic or industry. This is where you get the opportunity to show off your problem-solving skills and how you’ve generated successful outcomes for clients you’ve worked with. 

3. Build Trust and Credibility

In addition to showing off the attributes above, case studies are an excellent way to build credibility. They’re often filled with data and thoroughly researched, which shows readers you’ve done your homework. They can have confidence in the solutions you’ve presented because they’ve read through as you’ve explained the problem and outlined step-by-step what it took to solve it. All of these elements working together enable you to build trust with potential customers.

4. Create Social Proof

Using existing clients that have seen success working with your brand builds social proof . People are more likely to choose your brand if they know that others have found success working with you. Case studies do just that — putting your success on display for potential customers to see. 

All of these attributes work together to help you gain more clients. Plus you can even use quotes from customers featured in these studies and repurpose them in other marketing content. Now that you know more about the benefits of producing a case study, let’s check out how long these documents should be. 

How long should a case study be?

The length of a case study will vary depending on the complexity of the project or topic discussed. However, as a general guideline, case studies typically range from 500 to 1,500 words. 

Whatever length you choose, it should provide a clear understanding of the challenge, the solution you implemented, and the results achieved. This may be easier said than done, but it's important to strike a balance between providing enough detail to make the case study informative and concise enough to keep the reader's interest.

The primary goal here is to effectively communicate the key points and takeaways of the case study. It’s worth noting that this shouldn’t be a wall of text. Use headings, subheadings, bullet points, charts, and other graphics to break up the content and make it more scannable for readers. We’ve also seen brands incorporate video elements into case studies listed on their site for a more engaging experience. 

Ultimately, the length of your case study should be determined by the amount of information necessary to convey the story and its impact without becoming too long. Next, let’s look at some templates to take the guesswork out of creating one. 

To help you arm your prospects with information they can trust, we've put together a step-by-step guide on how to create effective case studies for your business with free case study templates for creating your own.

Tell us a little about yourself below to gain access today:

And to give you more options, we’ll highlight some useful templates that serve different needs. But remember, there are endless possibilities when it comes to demonstrating the work your business has done.

1. General Case Study Template

Do you have a specific product or service that you’re trying to sell, but not enough reviews or success stories? This Product Specific case study template will help.

This template relies less on metrics, and more on highlighting the customer’s experience and satisfaction. As you follow the template instructions, you’ll be prompted to speak more about the benefits of the specific product, rather than your team’s process for working with the customer.

4. Bold Social Media Business Case Study Template

You can find templates that represent different niches, industries, or strategies that your business has found success in — like a bold social media business case study template.

In this template, you can tell the story of how your social media marketing strategy has helped you or your client through collaboration or sale of your service. Customize it to reflect the different marketing channels used in your business and show off how well your business has been able to boost traffic, engagement, follows, and more.

5. Lead Generation Business Case Study Template

It’s important to note that not every case study has to be the product of a sale or customer story, sometimes they can be informative lessons that your own business has experienced. A great example of this is the Lead Generation Business case study template.

If you’re looking to share operational successes regarding how your team has improved processes or content, you should include the stories of different team members involved, how the solution was found, and how it has made a difference in the work your business does.

Now that we’ve discussed different templates and ideas for how to use them, let’s break down how to create your own case study with one.

• Get started with case study templates.
• Determine the case study's objective.
• Establish a case study medium.
• Find the right case study candidate.
• Contact your candidate for permission to write about them.
• Ensure you have all the resources you need to proceed once you get a response.
• Download a case study email template.
• Define the process you want to follow with the client.
• Ensure you're asking the right questions.
• Layout your case study format.
• Publish and promote your case study.

1. Get started with case study templates.

Telling your customer's story is a delicate process — you need to highlight their success while naturally incorporating your business into their story.

If you're just getting started with case studies, we recommend you download HubSpot's Case Study Templates we mentioned before to kickstart the process.

2. Determine the case study's objective.

All business case studies are designed to demonstrate the value of your services, but they can focus on several different client objectives.

Your first step when writing a case study is to determine the objective or goal of the subject you're featuring. In other words, what will the client have succeeded in doing by the end of the piece?

The client objective you focus on will depend on what you want to prove to your future customers as a result of publishing this case study.

Your case study can focus on one of the following client objectives:

• Complying with government regulation
• Lowering business costs
• Becoming profitable
• Generating more leads
• Closing on more customers
• Generating more revenue
• Expanding into a new market
• Becoming more sustainable or energy-efficient

3. Establish a case study medium.

Next, you'll determine the medium in which you'll create the case study. In other words, how will you tell this story?

Case studies don't have to be simple, written one-pagers. Using different media in your case study can allow you to promote your final piece on different channels. For example, while a written case study might just live on your website and get featured in a Facebook post, you can post an infographic case study on Pinterest and a video case study on your YouTube channel.

Here are some different case study mediums to consider:

Written Case Study

Consider writing this case study in the form of an ebook and converting it to a downloadable PDF. Then, gate the PDF behind a landing page and form for readers to fill out before downloading the piece, allowing this case study to generate leads for your business.

Video Case Study

Plan on meeting with the client and shooting an interview. Seeing the subject, in person, talk about the service you provided them can go a long way in the eyes of your potential customers.

Infographic Case Study

Use the long, vertical format of an infographic to tell your success story from top to bottom. As you progress down the infographic, emphasize major KPIs using bigger text and charts that show the successes your client has had since working with you.

Podcast Case Study

Podcasts are a platform for you to have a candid conversation with your client. This type of case study can sound more real and human to your audience — they'll know the partnership between you and your client was a genuine success.

4. Find the right case study candidate.

Writing about your previous projects requires more than picking a client and telling a story. You need permission, quotes, and a plan. To start, here are a few things to look for in potential candidates.

Product Knowledge

It helps to select a customer who's well-versed in the logistics of your product or service. That way, he or she can better speak to the value of what you offer in a way that makes sense for future customers.

Remarkable Results

Clients that have seen the best results are going to make the strongest case studies. If their own businesses have seen an exemplary ROI from your product or service, they're more likely to convey the enthusiasm that you want prospects to feel, too.

One part of this step is to choose clients who have experienced unexpected success from your product or service. When you've provided non-traditional customers — in industries that you don't usually work with, for example — with positive results, it can help to remove doubts from prospects.

Recognizable Names

While small companies can have powerful stories, bigger or more notable brands tend to lend credibility to your own. In fact, 89% of consumers say they'll buy from a brand they already recognize over a competitor, especially if they already follow them on social media.

Customers that came to you after working with a competitor help highlight your competitive advantage and might even sway decisions in your favor.

5. Contact your candidate for permission to write about them.

To get the case study candidate involved, you have to set the stage for clear and open communication. That means outlining expectations and a timeline right away — not having those is one of the biggest culprits in delayed case study creation.

Most importantly at this point, however, is getting your subject's approval. When first reaching out to your case study candidate, provide them with the case study's objective and format — both of which you will have come up with in the first two steps above.

To get this initial permission from your subject, put yourself in their shoes — what would they want out of this case study? Although you're writing this for your own company's benefit, your subject is far more interested in the benefit it has for them.

Benefits to Offer Your Case Study Candidate

Here are four potential benefits you can promise your case study candidate to gain their approval.

Brand Exposure

Explain to your subject to whom this case study will be exposed, and how this exposure can help increase their brand awareness both in and beyond their own industry. In the B2B sector, brand awareness can be hard to collect outside one's own market, making case studies particularly useful to a client looking to expand their name's reach.

Employee Exposure

Allow your subject to provide quotes with credits back to specific employees. When this is an option for them, their brand isn't the only thing expanding its reach — their employees can get their name out there, too. This presents your subject with networking and career development opportunities they might not have otherwise.

Product Discount

This is a more tangible incentive you can offer your case study candidate, especially if they're a current customer of yours. If they agree to be your subject, offer them a product discount — or a free trial of another product — as a thank-you for their help creating your case study.

Backlinks and Website Traffic

Here's a benefit that is sure to resonate with your subject's marketing team: If you publish your case study on your website, and your study links back to your subject's website — known as a "backlink" — this small gesture can give them website traffic from visitors who click through to your subject's website.

Additionally, a backlink from you increases your subject's page authority in the eyes of Google. This helps them rank more highly in search engine results and collect traffic from readers who are already looking for information about their industry.

6. Ensure you have all the resources you need to proceed once you get a response.

So you know what you’re going to offer your candidate, it’s time that you prepare the resources needed for if and when they agree to participate, like a case study release form and success story letter.

Let's break those two down.

Case Study Release Form

This document can vary, depending on factors like the size of your business, the nature of your work, and what you intend to do with the case studies once they are completed. That said, you should typically aim to include the following in the Case Study Release Form:

• A clear explanation of why you are creating this case study and how it will be used.
• A statement defining the information and potentially trademarked information you expect to include about the company — things like names, logos, job titles, and pictures.
• An explanation of what you expect from the participant, beyond the completion of the case study. For example, is this customer willing to act as a reference or share feedback, and do you have permission to pass contact information along for these purposes?
• A note about compensation.

Success Story Letter

As noted in the sample email, this document serves as an outline for the entire case study process. Other than a brief explanation of how the customer will benefit from case study participation, you'll want to be sure to define the following steps in the Success Story Letter.

7. Download a case study email template.

While you gathered your resources, your candidate has gotten time to read over the proposal. When your candidate approves of your case study, it's time to send them a release form.

A case study release form tells you what you'll need from your chosen subject, like permission to use any brand names and share the project information publicly. Kick-off this process with an email that runs through exactly what they can expect from you, as well as what you need from them. To give you an idea of what that might look like, check out this sample email:

8. Define the process you want to follow with the client.

Before you can begin the case study, you have to have a clear outline of the case study process with your client. An example of an effective outline would include the following information.

The Acceptance

First, you'll need to receive internal approval from the company's marketing team. Once approved, the Release Form should be signed and returned to you. It's also a good time to determine a timeline that meets the needs and capabilities of both teams.

The Questionnaire

To ensure that you have a productive interview — which is one of the best ways to collect information for the case study — you'll want to ask the participant to complete a questionnaire before this conversation. That will provide your team with the necessary foundation to organize the interview, and get the most out of it.

The Interview

Once the questionnaire is completed, someone on your team should reach out to the participant to schedule a 30- to 60-minute interview, which should include a series of custom questions related to the customer's experience with your product or service.

The Draft Review

After the case study is composed, you'll want to send a draft to the customer, allowing an opportunity to give you feedback and edits.

The Final Approval

Once any necessary edits are completed, send a revised copy of the case study to the customer for final approval.

Once the case study goes live — on your website or elsewhere — it's best to contact the customer with a link to the page where the case study lives. Don't be afraid to ask your participants to share these links with their own networks, as it not only demonstrates your ability to deliver positive results and impressive growth, as well.

9. Ensure you're asking the right questions.

Before you execute the questionnaire and actual interview, make sure you're setting yourself up for success. A strong case study results from being prepared to ask the right questions. What do those look like? Here are a few examples to get you started:

• What are your goals?
• What challenges were you experiencing before purchasing our product or service?
• What made our product or service stand out against our competitors?
• What did your decision-making process look like?
• How have you benefited from using our product or service? (Where applicable, always ask for data.)

Keep in mind that the questionnaire is designed to help you gain insights into what sort of strong, success-focused questions to ask during the actual interview. And once you get to that stage, we recommend that you follow the "Golden Rule of Interviewing." Sounds fancy, right? It's actually quite simple — ask open-ended questions.

If you're looking to craft a compelling story, "yes" or "no" answers won't provide the details you need. Focus on questions that invite elaboration, such as, "Can you describe ...?" or, "Tell me about ..."

In terms of the interview structure, we recommend categorizing the questions and flowing them into six specific sections that will mirror a successful case study format. Combined, they'll allow you to gather enough information to put together a rich, comprehensive study.

Open with the customer's business.

The goal of this section is to generate a better understanding of the company's current challenges and goals, and how they fit into the landscape of their industry. Sample questions might include:

• How long have you been in business?
• How many employees do you have?
• What are some of the objectives of your department at this time?

Cite a problem or pain point.

To tell a compelling story, you need context. That helps match the customer's need with your solution. Sample questions might include:

• What challenges and objectives led you to look for a solution?
• What might have happened if you did not identify a solution?
• Did you explore other solutions before this that did not work out? If so, what happened?

Discuss the decision process.

Exploring how the customer decided to work with you helps to guide potential customers through their own decision-making processes. Sample questions might include:

• How did you hear about our product or service?
• Who was involved in the selection process?
• What was most important to you when evaluating your options?

Explain how a solution was implemented.

The focus here should be placed on the customer's experience during the onboarding process. Sample questions might include:

• How long did it take to get up and running?
• Did that meet your expectations?
• Who was involved in the process?

Explain how the solution works.

The goal of this section is to better understand how the customer is using your product or service. Sample questions might include:

• Is there a particular aspect of the product or service that you rely on most?
• Who is using the product or service?

End with the results.

In this section, you want to uncover impressive measurable outcomes — the more numbers, the better. Sample questions might include:

• How is the product or service helping you save time and increase productivity?
• In what ways does that enhance your competitive advantage?
• How much have you increased metrics X, Y, and Z?

10. Lay out your case study format.

When it comes time to take all of the information you've collected and actually turn it into something, it's easy to feel overwhelmed. Where should you start? What should you include? What's the best way to structure it?

To help you get a handle on this step, it's important to first understand that there is no one-size-fits-all when it comes to the ways you can present a case study. They can be very visual, which you'll see in some of the examples we've included below, and can sometimes be communicated mostly through video or photos, with a bit of accompanying text.

Here are the sections we suggest, which we'll cover in more detail down below:

• Title: Keep it short. Develop a succinct but interesting project name you can give the work you did with your subject.
• Subtitle: Use this copy to briefly elaborate on the accomplishment. What was done? The case study itself will explain how you got there.
• Executive Summary : A 2-4 sentence summary of the entire story. You'll want to follow it with 2-3 bullet points that display metrics showcasing success.
• About the Subject: An introduction to the person or company you served, which can be pulled from a LinkedIn Business profile or client website.
• Challenges and Objectives: A 2-3 paragraph description of the customer's challenges, before using your product or service. This section should also include the goals or objectives the customer set out to achieve.
• How Product/Service Helped: A 2-3 paragraph section that describes how your product or service provided a solution to their problem.
• Results: A 2-3 paragraph testimonial that proves how your product or service specifically benefited the person or company and helped achieve its goals. Include numbers to quantify your contributions.
• Supporting Visuals or Quotes: Pick one or two powerful quotes that you would feature at the bottom of the sections above, as well as a visual that supports the story you are telling.
• Future Plans: Everyone likes an epilogue. Comment on what's ahead for your case study subject, whether or not those plans involve you.
• Call to Action (CTA): Not every case study needs a CTA, but putting a passive one at the end of your case study can encourage your readers to take an action on your website after learning about the work you've done.

When laying out your case study, focus on conveying the information you've gathered in the most clear and concise way possible. Make it easy to scan and comprehend, and be sure to provide an attractive call-to-action at the bottom — that should provide readers an opportunity to learn more about your product or service.

11. Publish and promote your case study.

Once you've completed your case study, it's time to publish and promote it. Some case study formats have pretty obvious promotional outlets — a video case study can go on YouTube, just as an infographic case study can go on Pinterest.

But there are still other ways to publish and promote your case study. Here are a couple of ideas:

Lead Gen in a Blog Post

As stated earlier in this article, written case studies make terrific lead-generators if you convert them into a downloadable format, like a PDF. To generate leads from your case study, consider writing a blog post that tells an abbreviated story of your client's success and asking readers to fill out a form with their name and email address if they'd like to read the rest in your PDF.

Then, promote this blog post on social media, through a Facebook post or a tweet.

Published as a Page on Your Website

As a growing business, you might need to display your case study out in the open to gain the trust of your target audience.

Rather than gating it behind a landing page, publish your case study to its own page on your website, and direct people here from your homepage with a "Case Studies" or "Testimonials" button along your homepage's top navigation bar.

Format for a Case Study

The traditional case study format includes the following parts: a title and subtitle, a client profile, a summary of the customer’s challenges and objectives, an account of how your solution helped, and a description of the results. You might also want to include supporting visuals and quotes, future plans, and calls-to-action.

Image Source

The title is one of the most important parts of your case study. It should draw readers in while succinctly describing the potential benefits of working with your company. To that end, your title should:

• State the name of your custome r. Right away, the reader must learn which company used your products and services. This is especially important if your customer has a recognizable brand. If you work with individuals and not companies, you may omit the name and go with professional titles: “A Marketer…”, “A CFO…”, and so forth.
• State which product your customer used . Even if you only offer one product or service, or if your company name is the same as your product name, you should still include the name of your solution. That way, readers who are not familiar with your business can become aware of what you sell.
• Allude to the results achieved . You don’t necessarily need to provide hard numbers, but the title needs to represent the benefits, quickly. That way, if a reader doesn’t stay to read, they can walk away with the most essential information: Your product works.

The example above, “Crunch Fitness Increases Leads and Signups With HubSpot,” achieves all three — without being wordy. Keeping your title short and sweet is also essential.

2. Subtitle

Your subtitle is another essential part of your case study — don’t skip it, even if you think you’ve done the work with the title. In this section, include a brief summary of the challenges your customer was facing before they began to use your products and services. Then, drive the point home by reiterating the benefits your customer experienced by working with you.

The above example reads:

“Crunch Fitness was franchising rapidly when COVID-19 forced fitness clubs around the world to close their doors. But the company stayed agile by using HubSpot to increase leads and free trial signups.”

We like that the case study team expressed the urgency of the problem — opening more locations in the midst of a pandemic — and placed the focus on the customer’s ability to stay agile.

3. Executive Summary

The executive summary should provide a snapshot of your customer, their challenges, and the benefits they enjoyed from working with you. Think it’s too much? Think again — the purpose of the case study is to emphasize, again and again, how well your product works.

The good news is that depending on your design, the executive summary can be mixed with the subtitle or with the “About the Company” section. Many times, this section doesn’t need an explicit “Executive Summary” subheading. You do need, however, to provide a convenient snapshot for readers to scan.

In the above example, ADP included information about its customer in a scannable bullet-point format, then provided two sections: “Business Challenge” and “How ADP Helped.” We love how simple and easy the format is to follow for those who are unfamiliar with ADP or its typical customer.

4. About the Company

Readers need to know and understand who your customer is. This is important for several reasons: It helps your reader potentially relate to your customer, it defines your ideal client profile (which is essential to deter poor-fit prospects who might have reached out without knowing they were a poor fit), and it gives your customer an indirect boon by subtly promoting their products and services.

Feel free to keep this section as simple as possible. You can simply copy and paste information from the company’s LinkedIn, use a quote directly from your customer, or take a more creative storytelling approach.

In the above example, HubSpot included one paragraph of description for Crunch Fitness and a few bullet points. Below, ADP tells the story of its customer using an engaging, personable technique that effectively draws readers in.

5. Challenges and Objectives

The challenges and objectives section of your case study is the place to lay out, in detail, the difficulties your customer faced prior to working with you — and what they hoped to achieve when they enlisted your help.

In this section, you can be as brief or as descriptive as you’d like, but remember: Stress the urgency of the situation. Don’t understate how much your customer needed your solution (but don’t exaggerate and lie, either). Provide contextual information as necessary. For instance, the pandemic and societal factors may have contributed to the urgency of the need.

Take the above example from design consultancy IDEO:

“Educational opportunities for adults have become difficult to access in the United States, just when they’re needed most. To counter this trend, IDEO helped the city of South Bend and the Drucker Institute launch Bendable, a community-powered platform that connects people with opportunities to learn with and from each other.”

We love how IDEO mentions the difficulties the United States faces at large, the efforts its customer is taking to address these issues, and the steps IDEO took to help.

6. How Product/Service Helped

This is where you get your product or service to shine. Cover the specific benefits that your customer enjoyed and the features they gleaned the most use out of. You can also go into detail about how you worked with and for your customer. Maybe you met several times before choosing the right solution, or you consulted with external agencies to create the best package for them.

Whatever the case may be, try to illustrate how easy and pain-free it is to work with the representatives at your company. After all, potential customers aren’t looking to just purchase a product. They’re looking for a dependable provider that will strive to exceed their expectations.

In the above example, IDEO describes how it partnered with research institutes and spoke with learners to create Bendable, a free educational platform. We love how it shows its proactivity and thoroughness. It makes potential customers feel that IDEO might do something similar for them.

The results are essential, and the best part is that you don’t need to write the entirety of the case study before sharing them. Like HubSpot, IDEO, and ADP, you can include the results right below the subtitle or executive summary. Use data and numbers to substantiate the success of your efforts, but if you don’t have numbers, you can provide quotes from your customers.

We can’t overstate the importance of the results. In fact, if you wanted to create a short case study, you could include your title, challenge, solution (how your product helped), and result.

8. Supporting Visuals or Quotes

Let your customer speak for themselves by including quotes from the representatives who directly interfaced with your company.

Visuals can also help, even if they’re stock images. On one side, they can help you convey your customer’s industry, and on the other, they can indirectly convey your successes. For instance, a picture of a happy professional — even if they’re not your customer — will communicate that your product can lead to a happy client.

In this example from IDEO, we see a man standing in a boat. IDEO’s customer is neither the man pictured nor the manufacturer of the boat, but rather Conservation International, an environmental organization. This imagery provides a visually pleasing pattern interrupt to the page, while still conveying what the case study is about.

9. Future Plans

This is optional, but including future plans can help you close on a more positive, personable note than if you were to simply include a quote or the results. In this space, you can show that your product will remain in your customer’s tech stack for years to come, or that your services will continue to be instrumental to your customer’s success.

Alternatively, if you work only on time-bound projects, you can allude to the positive impact your customer will continue to see, even after years of the end of the contract.

10. Call to Action (CTA)

Not every case study needs a CTA, but we’d still encourage it. Putting one at the end of your case study will encourage your readers to take an action on your website after learning about the work you've done.

It will also make it easier for them to reach out, if they’re ready to start immediately. You don’t want to lose business just because they have to scroll all the way back up to reach out to your team.

To help you visualize this case study outline, check out the case study template below, which can also be downloaded here .

You drove the results, made the connection, set the expectations, used the questionnaire to conduct a successful interview, and boiled down your findings into a compelling story. And after all of that, you're left with a little piece of sales enabling gold — a case study.

To show you what a well-executed final product looks like, have a look at some of these marketing case study examples.

1. "Shopify Uses HubSpot CRM to Transform High Volume Sales Organization," by HubSpot

What's interesting about this case study is the way it leads with the customer. This reflects a major HubSpot value, which is to always solve for the customer first. The copy leads with a brief description of why Shopify uses HubSpot and is accompanied by a short video and some basic statistics on the company.

Notice that this case study uses mixed media. Yes, there is a short video, but it's elaborated upon in the additional text on the page. So, while case studies can use one or the other, don't be afraid to combine written copy with visuals to emphasize the project's success.

2. "New England Journal of Medicine," by Corey McPherson Nash

When branding and design studio Corey McPherson Nash showcases its work, it makes sense for it to be visual — after all, that's what they do. So in building the case study for the studio's work on the New England Journal of Medicine's integrated advertising campaign — a project that included the goal of promoting the client's digital presence — Corey McPherson Nash showed its audience what it did, rather than purely telling it.

Notice that the case study does include some light written copy — which includes the major points we've suggested — but lets the visuals do the talking, allowing users to really absorb the studio's services.

3. "Designing the Future of Urban Farming," by IDEO

Here's a design company that knows how to lead with simplicity in its case studies. As soon as the visitor arrives at the page, he or she is greeted with a big, bold photo, and two very simple columns of text — "The Challenge" and "The Outcome."

Immediately, IDEO has communicated two of the case study's major pillars. And while that's great — the company created a solution for vertical farming startup INFARM's challenge — it doesn't stop there. As the user scrolls down, those pillars are elaborated upon with comprehensive (but not overwhelming) copy that outlines what that process looked like, replete with quotes and additional visuals.

4. "Secure Wi-Fi Wins Big for Tournament," by WatchGuard

Then, there are the cases when visuals can tell almost the entire story — when executed correctly. Network security provider WatchGuard can do that through this video, which tells the story of how its services enhanced the attendee and vendor experience at the Windmill Ultimate Frisbee tournament.

5. Rock and Roll Hall of Fame Boosts Social Media Engagement and Brand Awareness with HubSpot

In the case study above , HubSpot uses photos, videos, screenshots, and helpful stats to tell the story of how the Rock and Roll Hall of Fame used the bot, CRM, and social media tools to gain brand awareness.

6. Small Desk Plant Business Ups Sales by 30% With Trello

This case study from Trello is straightforward and easy to understand. It begins by explaining the background of the company that decided to use it, what its goals were, and how it planned to use Trello to help them.

It then goes on to discuss how the software was implemented and what tasks and teams benefited from it. Towards the end, it explains the sales results that came from implementing the software and includes quotes from decision-makers at the company that implemented it.

7. Facebook's Mercedes Benz Success Story

Facebook's Success Stories page hosts a number of well-designed and easy-to-understand case studies that visually and editorially get to the bottom line quickly.

Each study begins with key stats that draw the reader in. Then it's organized by highlighting a problem or goal in the introduction, the process the company took to reach its goals, and the results. Then, in the end, Facebook notes the tools used in the case study.

Showcasing Your Work

You work hard at what you do. Now, it's time to show it to the world — and, perhaps more important, to potential customers. Before you show off the projects that make you the proudest, we hope you follow these important steps that will help you effectively communicate that work and leave all parties feeling good about it.

Editor's Note: This blog post was originally published in February 2017 but was updated for comprehensiveness and freshness in July 2021.

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What the Case Study Method Really Teaches

• Nitin Nohria

Seven meta-skills that stick even if the cases fade from memory.

It’s been 100 years since Harvard Business School began using the case study method. Beyond teaching specific subject matter, the case study method excels in instilling meta-skills in students. This article explains the importance of seven such skills: preparation, discernment, bias recognition, judgement, collaboration, curiosity, and self-confidence.

During my decade as dean of Harvard Business School, I spent hundreds of hours talking with our alumni. To enliven these conversations, I relied on a favorite question: “What was the most important thing you learned from your time in our MBA program?”

• Nitin Nohria is the George F. Baker Professor of Business Administration, Distinguished University Service Professor, and former dean of Harvard Business School.

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Mastering Case Study Frameworks: A Comprehensive Guide for Success

Note: Don’t forget to read and work through our Masterguide to Case Frameworks if you’re still struggling with your profitability case frameworks after reading this article.

Table of Contents

Case study frameworks are crucial tools for management consultants and aspiring candidates in the consulting industry. They provide a structure to analyze and solve complex business problems, helping consultants deliver valuable insights and recommendations to their clients. In this comprehensive guide, we dive into the most essential case study frameworks, their applications, and how to effectively use them in your consulting practice.

Introduction to Case Study Frameworks

Case study frameworks are structured approaches used to analyze and solve business problems during consulting case interviews and client engagements. These frameworks help consultants break down complex problems into smaller, manageable components, allowing for a systematic and efficient approach to problem-solving.

Consultants Create Frameworks to Run Teams

Remember, frameworks are not just to be memorized. They are your tailored, objective-driven, approach to solving a problem.

Because frameworks are simply the modules that a consulting team would assign to their team members.

When creating your frameworks, think to yourself, can my buckets be assigned successfully to Team Member 1, Team Member 2, and Team Members 3 & 4?

The Importance of Case Study Frameworks

Case study frameworks are valuable for several reasons:

• They provide a structured way to approach business problems, making it easier to identify the root cause and develop actionable solutions.
• They help consultants effectively communicate their thought process, findings, and recommendations to clients and interviewers.
• They enable consultants to leverage their experience and knowledge by applying proven methodologies to new business situations.

Flexibility and Adaptability in Applying Case Frameworks

It’s essential to understand that case frameworks are not one-size-fits-all solutions . Instead, they should be viewed as flexible tools that can be adapted, combined, and customized to fit the specific problem at hand. In other words, the best case frameworks are those that can be tailored to address the unique challenges and requirements of each client and situation.

In the following sections, we will discuss some of the most commonly used case study frameworks in management consulting. We will cover their key components, when to use them, and how to apply them effectively.

Profitability Case Frameworks

The profitability framework is a fundamental case study framework that focuses on understanding the drivers of a company’s financial performance. It is most applicable in cases where the client’s primary objective is to improve financial performance, either by increasing revenue, reducing costs, or both.

If you want to read even more on profitability and how to approach it for any case type , take a look at our article here .

Do Not Regurgitate Revenue Cost

As we mentioned above, it is absolutely critical that you stay flexible and adaptable with your frameworks. This is especially true for Profitability. Gone are the days of a generic Revenue Cost framework.

Consultants do not solve real life projects with Revenue and Cost and nor should you in your cases.

Adapt and Adjust Based on the Case

The most important thing to remember about a profitability framework is that it needs to be adjusted to the case . Bucket options include (but are not limited to):

• Competition
• Store (breakdown)
• External/Macro
• Revenue (in context/tailored)
• Cost (in context/tailored)
• Value chain

How do you decide which buckets to use? Well, it depends on the case! For example, if the prompt tells you there are 3 products our company has and we just launched a 4th, of course you need a products bucket. If we are McDonalds (international, different models worldwide), of course you need to break it down by geography.

Listen to how I break this down to a candidate of mine here:

As an example, say we have a food delivery company that has previously focused on topline revenue growth, has negative margins, and now needs to become profitable. How would you create a framework for this? (Please don’t say revenue cost!)

Here’s one option (of multiple):

This probably looks different to what you expected. But it’s also why my candidates consistently get interviewer feedback saying their frameworking is the best they have ever seen.

Remember, every profitability case should have a slightly different set of buckets, based on the problem you are solving.

Again, for a deeper breakdown, check out our article here .

Applying the Profitability Framework

To apply the profitability framework effectively, follow these steps:

•   Identify the relevant components (revenue, costs) and drivers (price, quantity, variable costs, fixed costs) that are most pertinent to the client’s problem.
•   Analyze the current performance of these components and drivers, comparing them against industry benchmarks and competitors.
•   Identify opportunities for improvement and develop recommendations to address these opportunities, considering both short-term and long-term implications.

When identify which areas to pursue (across profit, margin, revenu, and cost), you want to tackle any of the following:

• What’s the biggest? – This refers to the biggest piece of the revenue/expenditure pie, which has the potential to significantly impact the end result.
• What’s changing the most? – Rapid changes in a revenue/cost segment could be a significant driver and potentially fixable.
• What’s the easiest to answer or eliminate? – Opt for quick wins. These are typically yes/no types of questions that can eliminate many other factors.
• What’s the most different? – Look for differences between companies, business units, products, and geographies. Differences often equate to opportunities.
• What’s the most likely? – This is self-explanatory and refers to the most probable source of revenue/cost issues

Market Entry Case Frameworks

The market entry framework is used to evaluate the attractiveness and feasibility of entering a new market or launching a new product. It helps consultants assess the potential opportunities and risks associated with market entry and develop a comprehensive strategy for successful market penetration.

Key Components of the Market Entry Framework

Just like with profitability, you have to tailor your framework to the case prompt.

One option for a market entry framework is as follows:

•   Market Analysis : Assessing the size, growth, and dynamics of the target market.
•   Competitive Landscape : Evaluating the competitive forces and players in the market.
•   Internal Capabilities : Analyzing the company’s strengths, weaknesses, and resources to enter the market.
•   Entry Strategy : Determining the best approach to enter the market, such as organic growth, joint ventures, or acquisitions.

But, the above is just one option. We could also have a Market, Company/Competition, and Financials framework. However, ideally we would articulate it as follows:

Now, remember that all of the above is just for the question Should We Enter This Market?

A different market entry question might be “Our Client has determined that x market is attractive and wants to enter. They have brought us to figure out if we should”. This needs a different framework.

Or, the question might be “Our client has decided to enter x market. How should we enter?” The above frameworks don’t work here!

As a final example, perhaps the case tells us “We are evaluating between 3 markets to enter. Which one should we enter?” Again, new framework needed.

To understand how to tackle these more unconventional market entry cases, please take a look at our 360 degree course .

The Porter's Five Forces Case Framework

Porter’s Five Forces is a widely recognized case study framework developed by Harvard Business School professor Michael E. Porter. It helps consultants analyze the competitive forces shaping an industry and understand the attractiveness and profitability of a market.

Key Components of Porter’s Five Forces Framework

The Porter’s Five Forces framework consists of five main components:

•   Threat of New Entrants : The ease with which new competitors can enter the market and challenge established players.
•   Bargaining Power of Suppliers : The ability of suppliers to influence the terms and conditions of their business relationships with companies in the industry.
•   Bargaining Power of Buyers : The ability of customers to influence the terms and conditions of their business relationships with companies in the industry.
•   Threat of Substitute Products or Services : The likelihood that customers will switch to alternative products or services that fulfill the same need.
•   Rivalry Among Existing Competitors : The intensity of competition among companies within the industry.

When to Use Porter’s Five Forces Framework

The Porter’s Five Forces framework is most applicable in cases where the client is considering entering a new market, launching a new product, or assessing the competitive landscape of an industry.

Applying Porter’s Five Forces Framework

To apply the Porter’s Five Forces framework effectively, follow these steps:

•   Analyze each of the five forces, considering their impact on the industry’s attractiveness and profitability.
•   Identify the key drivers and trends influencing each force and assess their potential implications for the client.
•   Develop recommendations to address the opportunities and challenges posed by the competitive forces, considering both short-term and long-term strategies.

The SWOT Analysis Framework

The SWOT analysis is a widely recognized case study framework that helps consultants evaluate a company’s internal strengths and weaknesses as well as external opportunities and threats. This framework enables consultants to identify key strategic issues and develop recommendations to address them.

Key Components of the SWOT Analysis Framework

The SWOT analysis framework consists of four main components:

•   Strengths : The internal capabilities and resources that give the company a competitive advantage.
•   Weaknesses : The internal limitations and vulnerabilities that hinder the company’s performance.
•   Opportunities : The external factors that the company can capitalize on to improve its performance.
•   Threats : The external factors that pose risks to the company’s performance and success.

When to Use the SWOT Analysis Framework

The SWOT analysis framework is most applicable in cases where the client is seeking to improve its overall performance or address specific strategic issues.

Applying the SWOT Analysis Framework

To apply the SWOT analysis framework effectively, follow these steps:

•   Identify the company’s key strengths and weaknesses, considering factors such as resources, capabilities, and market position.
•   Analyze the external environment, identifying opportunities and threats that may impact the company’s performance.
•   Develop recommendations to leverage the company’s strengths, address weaknesses, capitalize on opportunities, and mitigate threats.

Growth Case Frameworks

The growth strategy framework focuses on identifying and evaluating potential avenues for a company to achieve revenue and market share growth. This framework helps consultants develop a strategic roadmap for the client’s expansion and growth.

Key Components of the Growth Strategy Case Framework

One growth strategy case framework can be broken down into four main components:

•   Market Penetration : Increasing sales of existing products or services in current markets.
•   Market Development : Entering new markets with existing products or services.
•   Product Development : Introducing new products or services in existing markets.
•   Diversification : Expanding into new markets with new products or services.

Remember, however, just like with profitability and market entry cases, you need to listen to the prompt and adjust this framework accordingly to the prompt and company context. Different growth prompts will have different case frameworks.

When to Use the Growth Strategy Case Framework

The growth strategy framework is most applicable in cases where the client is seeking to expand its business, increase market share, or explore new growth opportunities.

Applying the Growth Strategy Framework

To apply the growth strategy framework effectively, follow these steps:

•   Assess the company’s current performance, market position, and growth potential.
•   Identify potential growth opportunities across the four growth strategy components, considering factors such as market attractiveness, competitive landscape, and internal capabilities.
•   Evaluate the feasibility and risks associated with each growth opportunity, taking into account factors such as market entry barriers, resource requirements, and potential synergies.
•   Develop a strategic roadmap for the client’s growth, prioritizing the most attractive and feasible growth opportunities.

Tips for Successfully Applying Case Study Frameworks

To effectively apply case study frameworks in your consulting practice, consider the following tips:

•   Don’t rely solely on case frameworks : Remember that frameworks are just one tool in your problem-solving toolkit. Use them as a starting point, but be prepared to adapt and customize them to fit the specific problem at hand.
•   Listen carefully to the client’s needs : Understand the client’s objectives, priorities, and constraints before selecting and applying a framework. Tailor your approach to address the client’s unique needs and circumstances.
•   Stay flexible and adaptable : Be prepared to adjust your approach as new information emerges or as the client’s needs evolve. Be open to combining and customizing frameworks to develop a tailored solution.
•   Communicate your thought process clearly : Clearly explain the rationale behind your chosen framework, the steps you took to apply it, and the insights and recommendations that emerged from your analysis. This will help ensure that your client and interviewers understand and appreciate your approach.

Enroll in our 360 course . This comprehensive course focuses heavily on building up your frameworking optimally. To get a better understanding of how to create killer case frameworks, start with our master article on case frameworks.

Mastering case study frameworks is crucial for success in the consulting industry. By understanding the key components, applications, and best practices for applying these frameworks, you can develop a strong foundation for effective problem-solving and strategic thinking.

Remember to stay flexible, adaptable, and customer-centric in your approach, and always be prepared to learn and grow as you refine your skills in applying case study frameworks. By doing so, you can unlock unparalleled insights and deliver exceptional value to your clients and interviewers alike.

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S T R E E T OF W A L L S

Consulting case study 101: an introduction to frameworks.

Before we look at individual Cases, it is important to begin by looking at analysis frameworks that commonly can be used to address Case Study questions. In this chapter, we will outline some of the core frameworks and some additional Consulting concepts that are important to grasp and will form part of many interviews. The frameworks will be helpful to answer certain types of cases, depending on the type of case.  In reality, few case interviews or real-life business situations cover just one concept or business problem, so you have to have the flexibility to apply a range of concepts/structures.  For example, a Company bringing a new product to market would require a market size analysis, competitor analysis, as well as understanding the key customer segments.

The more you practice, the easier the cases will become and the more articulate and structured you’ll be in your answers.

An important note on this: historically, the vast majority of Consulting candidates have used specific business frameworks to answer cases.  Frameworks remain important as concepts to answer Case Studies, but you should absolutely avoid any rigid use of a specific framework . In reality, the main purpose of learning the frameworks is to help you to structure your answers , just as the case situations in our later examples should do.

The key frameworks that follow should be used directly in certain Case situations , but more broadly they should be used as a way to expand your strategic thinking , which is the critical component of success in the Case Study interview process. Ultimately, a top-flight candidate will build his or her own framework/structure for evaluating the Case as it progresses, often drawing from many of the frameworks and concepts in this module, and potentially others. In other words, you should absolutely avoid using the phrase, “I will apply framework X to this case.” However, be aware of the “famous” frameworks in case they are mentioned in an interview setting, and don’t be shy about referencing them as you dive into the specifics of the Case Study you’re evaluating.

Porter’s Five Forces

Porter’s Five Forces has become an incredibly well known framework in the business strategy world. It is probably the most famous of all of them. It was introduced by Harvard Professor and Monitor Consulting firm founder Michael Porter.  Porter’s Five Forces is a high-level framework that you can draw upon to perform a market landscape and competitor dynamics analysis. It can help determine whether a market or company is attractive, whether the client for whom the analysis is being performed is a private equity firm thinking about buying a company, or a major company thinking about entering or exiting a certain market segment. In most cases, a Case Study will address at least some of the components found in this framework.

Here are the Five Forces in detail:

Porter’s Five Forces

• Legal or regulatory barriers (for example, patents or government contracts)
• Economies of scale
• Cost advantage (for example, unique access to lower raw material costs)
• Access to distribution channels
• Product differentiation (for example, how is this product different?)
• Industry growth rate
• Industry fragmentation
• Level of switching costs
• Motivation to reduce prices (for example, from excess capacity)
• Level of substitute products
• Buyer’s decision influenced by supplier
• Supplier inputs/products have high switching costs
• Supplier has potential to forward integrate
• Supplier accounts for large share of the inputs/products
• High customer/client concentration
• Level of commoditization of product/input
• Level of switching costs for buyer
• Buyer has significant product/market information
• Substitute products/services that can compete on price and/or quality
• Switching costs to shift to substitute products

This simple framework has been around for a long time as a way to think about any industry or company, and applies broadly to a wide range of Case Study questions. If you compare the description below to that of Porter’s Five Forces above, you will see that there is substantial overlap.

The “3 Cs” approach is to address any Case situation by assessing the:

• Competitors
• Customers/clients

The 3 C’s

• Pros and cons of product/service
• Value chain
• Revenue (price × volume) and expenses
• Core competencies
• Regulatory environment
• Distribution network
• Management and core employees
• Market share
• Fragmentation
• Financial situation (for example, deep pocket competitors?)
• Other competencies (for example, marketing or distribution channels)
• Value proposition versus client
• Demographics (age, gender, etc.)
• Value of core customers/clients
• Wants and needs of customers/clients
• Customer/client segment sizes
• Customer/client segment shares
• Customer/client segment growth rate
• Product characteristics
• Personnel (especially for B2B)

This framework is often used specifically whenever there is a marketing component involved in a case (for example: how to increase sales resulting from any profitability optimization case, deciding on an approach to enter a market, etc.). When combined with the 3 Cs, this framework can cover many topics and as you practice more Case Study questions, you’ll develop a better sense of when and how to draw from these frameworks.

The “4 Ps” approach is to address a marketing-oriented Case situation by assessing the:

The 4 P’s

• Commoditized or differentiated?
• How close are the substitutes?
• Value proposition versus substitutes (price, quality, etc.)
• Switching costs
• Why are clients/customers purchasing the product?
• Brand, availability, service, value, reliability, aesthetic, etc.
• Is our product sufficiently better to justify a higher price? Or is it somewhat commoditized?
• Customer loyalty/lock-in
• Supply/demand: current state of demand and supply for the product or service
• Price of substitute products/services
• Price of competitor products/services
• Brand position and perception
• What is the cost for the client to produce the product or offer the service?
• Select/exclusive channels or wide distribution network?
• Seamless delivery to customers
• Internal transport or outsource?
• Specific areas of a site online
• Product placement in stores
• Customer/client awareness
• Is the Company reaching and attracting its target market?
• What are the most effective marketing campaign strategies?
• Return on marketing spend
• Are we retaining our customers/clients?
• Can we up-sell or cross-sell to our current customers/clients?

SWOT (Strengths, Weaknesses, Opportunities, Threats)

SWOT analysis is more of a mini-framework, specifically for quickly evaluating a single company in an industry. In that regard, it’s far less complete than other frameworks, and can often miss important details. However an interviewer could potentially ask you for a SWOT analysis, and you should be prepared to apply it in that case.

SWOT is effectively a quick, high-level market landscape/competitive dynamics analysis arranged using the following terminology:

SWOT Analysis

• Strengths: Company strengths within an industry
• Weaknesses: Company weaknesses within an industry
• Opportunities: Company opportunities available within the industry (or potentially by branching into a new industry)
• Threats: Company threats within the industry (or potentially from companies whose primary business is in another, related industry, or from disruptive technologies that potentially threaten all companies in an industry)

It should be noted that SWOT can be extended from comparing a specific company to the others in the industry, to comparing a specific industry or sub-industry to other, related industries or sub-industries within the economy. For example, a classic SWOT analysis might entail benchmarking Delta Airlines with the airline industry as a whole; an extension could entail benchmarking the entire airline industry against the broad transportation sector.

Other Frameworks

You should be very familiar with the well-known frameworks already discussed in this chapter, although it is unlikely that an interviewer would ask you to use a particular framework in your analysis. Instead, it is typically expected that you draw on the concepts encompassed by these frameworks and/or the concepts that we will outline in the next chapter, which breaks down the common Case Study interview question types .

In addition to these frameworks, there are a number of other frameworks that you will read about on certain Consulting firm sites, but you will probably not be expected to know them in detail or apply them specifically in an interview. It does not hurt, however, to be familiar with them. Therefore, we include these example frameworks for your reference and encourage you to at least familiarize yourself with the basics of them:

• The BCG Growth Share Matrix for evaluating product or business lines
• The McKinsey 7S Framework for evaluating organizational effectiveness
• The Product/Market Grid to determine growth opportunities
• Force Field Analysis for Change Management
• The Affinity Diagram for organizing ideas and information

Additional Analysis Concepts

There are additional, relatively simple analytical techniques that you should be prepared for in Consulting Case Study interviews. These techniques tend to be numerical, and occur frequently, although none are comprehensive or broad enough to fall into the category of a “Framework”:

Break-Even Analysis

Fixed vs. variable expenses, net profit margin, return on investment (roi), compound annual growth rate (cagr).

• Lifetime Customer Value (LCV; sometimes referred to as “User Lifetime Value”)

Product Life Cycle

Opportunity cost, elasticity (supply or demand).

• Financial Statements, Accounting, and Valuation

Let’s take a deeper look at each analysis category.

• The gist of Break-Even Analysis cases is that the Fixed Costs of a business—i.e., the costs that are unavoidable—need to be overcome by making profit from sales of products. Presumably, each incremental sale contributes to profit at a rate that can be determined (or at least estimated); the question that is to be answered is, “How many units do I have to sell in order to overcome my Fixed Costs, i.e., to ‘Break Even’?”
• In other words, the Break-Even Point is the number of units sold at which Revenue equals Total Expenses (Fixed Expenses plus Variable Expenses).
• Break-Even Analysis is often applied when deciding whether to develop a new product or make a capital equipment investment, as well as helping in making decisions around how to price products and service and the number of units to produce.
• Formulaically, Break-Even Number of Units = Fixed expenses ÷ (Revenue per unit – Variable Expenses per unit).
• Note that the expression ( Revenue per unit – Variable Expenses per unit ) is often referred to as the Unit Contribution Margin .
• An understanding of how to analyze Expenses and differentiate Fixed Expenses from Variable Expenses is useful in order to run a Break-Even Analysis of a company.
• Break-Even Analysis can get more complex, as there are microeconomic and macroeconomic considerations that can change both the Fixed and Variable Expenses, but the basic concept is an important one; therefore you will likely come across some form of Break-Even Analysis in Consulting Case Study interviews.
• Note that this concept can also be translated into a question on Break-Even Price , i.e., “Assuming a certain volume of sales, what is the sales price required in order to break even?”
• Formulaically, Break-Even Price = (Fixed Expenses ÷ Sales Volume) + Variable Expenses per unit .
• Note that the expression ( Fixed Expenses ÷ Sales Volume ) equates to the required Unit Contribution Margin at the assumed Sales Volume in order to break even. In other words, Break-Even Price = Required Unit Contribution Margin + Variable Expenses per Unit .
• Fixed Expenses (or Fixed Costs ) are expenses that do typically fluctuate regardless of the production or sales levels. These expenses can be viewed as “unavoidable,” at least in the short-term. Typical examples for Fixed Expenses include Rent, Insurance, Mortgage Payments, and Corporate Overhead Expenses.
• Variable Expenses (or Variable Costs ) are impacted by changes in production or sales levels – typical examples include are Raw Materials, Direct Labor Expenses (wages and benefits), and delivery costs.
• Understanding a Company’s Fixed vs. Variable Cost structure is important in a variety of cases (such as in Break-Even Analysis, discussed above).
• When analyzing a Case, always keep in mind that total Fixed Expenses remain constant as volume rises (or falls), but Fixed Expenses per unit decline as volume rises (rise as volume falls). For example, if a computer component manufacturer has $1,000 of Fixed Expenses and produces 100 components, then the $1,000 of Fixed Expenses will be spread across 100 components (= $10 of Fixed Expenses per unit). If the Company produced 200 components, then the Fixed Expenses per unit would decrease to $5 per unit.
• Variable Expenses, meanwhile, rise proportionately as volume increases, so Variable Expenses per unit remain constant.
• When an interviewer asks a candidate to calculate the Net Profit Margin (a.k.a. Profit Margin or Net Income Margin ), he or she will usually be referring to the total Net Income of a company or business line as a percentage of its Revenue: Net Profit Margin = Net Income ÷ Total Revenue.
• The interviewer could also refer to Gross Profit Margin , which is simply Gross Profit as a percentage of revenue: Gross Profit Margin = Gross Profit ÷ Total Revenue
• Similarly, the interview may also refer to Operating Profit Margin ( EBIT Margin ), or EBITDA Margin . In both cases, thus is simply the figure in question (Operating Profit, a.k.a. EBIT, or EBITDA) as a percentage of Revenue.
• Return on Investment (ROI) is a ratio that determines the return, or Profit, from capital invested. ROI is used in consulting interviews as a way to evaluate the return of a particular investment or to assess the feasibility of a potential investment or acquisition. Many companies have an internal ROI metric for capital investments.
• Standard ROI is calculated as follows: Profit from the Investment (Revenue minus Costs) ÷ Capital Invested .
• Note: Return on Assets (ROA) is a variation of this concept, but instead revolves around all capital invested in a project (Liabilities + Equity), rather than just Equity invested, which is typical for an ROI calculation.
• The Compound Annual Growth Rate (CAGR) is the percentage rate at which any figure, such as number of units sold, a population, or an investment must grow in each year to reach a given end value over a certain amount of time. (Note that this is not the only growth path to grow from a beginning number to an ending number, but it is the only growth path that is the same growth rate every year .)
• The formula to calculate CAGR is: [(Ending Value ÷ Beginning Value)^(1 ÷ Number of Years)] – 1.
• For example: If sales grew from $1,000 in the year 2001, when a store opened, to $2,100 in 2012, what is the CAGR?
• Answer: [(2,100 ÷ 1,000)^(1 ÷ 11)] – 1 = 2.1^(0.090909) = 7.0%
• Thus, the CAGR between 2001 and 2012 was 7.0%.
• CAGR is very similar in concept to Internal Rate of Return (IRR), which is the annual rate of return on an investment if its value grows by a specific multiple over a specific amount of time.
• Use the Rule of 72 to estimate CAGR whenever possible. The rule of 72 simply states that a quantity will roughly double in value whenever the number of years times the annual growth rate equals 72.
• Using the above example, we can see that the quantity slightly more than doubled, so the answer should be slightly above (72 ÷ 11) percent, or slightly above 6.6%. Indeed, it is!

Lifetime Customer Value (LCV)

• Lifetime Customer Value (LCV) projects the total profitability attributed to a firm’s future relationship to a typical customer.
• The idea behind this microeconomic analysis is to determine the reasonable cost to win or acquire a customer (or to maintain an existing customer, i.e., prevent him or her from “churning,” or switching to a competitor). It can also be used to determine level and type of customer service to provide, and as another way to estimate the value of a business. (In theory, the value of a business should equal the number of existing customers × the LCV per customer , plus growth opportunities.)
• The steps to calculate the LCV are as follows:
• Estimate the remaining customer years; in other words, how long is a typical customer expected to last with the company?
• Estimate future Revenue per year per customer, based on product volume per customer × price
• Estimate Total Expenses for producing those products (either separating Fixed Costs out or allocating them on a per-customer basis)
• Calculate the Net Present Value of the future profit (Revenue – Expenses) per customer (in other words, discount these future profits back into today’s equivalent dollars)
• Important for market sizing problems, the Product Life Cycle helps to calculate and project the annual market size for a given market/industry. It is often used by companies to project their own anticipated Revenue figures.
• Formulaically, Annual Market Size = Total Revenue of a product outstanding ÷ Average life of the product . For example, “Total Revenue of a product outstanding” might represent the sticker price of all cars driven in the US, while the “Average life of the product” would be the average number of years a car is driven.
• It is also worth knowing the four steps in the Product Life Cycle Curve , as the concept could come up in a hypothetical product case.
• Emerging: A new product or technology that is in initial adoption phases and therefore has very rapid growth rates (for example: electric cars)
• Growth: Product adoption is becoming widespread but still growing at an above-average rate (for example: smartphones)
• Maturity: Product adoption is widespread, or at least stabilized; growth typically comes only from price increases and growth in GDP (for example: breakfast cereal)
• Declining: Technological obsolescence, shifting consumption patterns, or increased market competition has resulted in total growth rates that are below-average or negative (for example: dairy products or wireline telephones)
• Opportunity Cost simply refers to the concept that if a person or company does X , the person or company necessarily cannot also do Y .  This is an important concept throughout business and consumer decision making, as there are only finite resources available in most cases (time, money, etc.).
• Thus, for example, it is unwise for a company to invest $1 million in a project earning $3 million if that same investment prevents it from investing the $1 million in another opportunity that would earn $10 million. In this case, the Opportunity Cost can be defined as the loss of incremental profit of $7 million ($10 million potential profit lost minus the $3 million earned).
• If X does not prevent also doing Y , then there is said to be “no Opportunity Cost” of doing X with respect to Y . In the above example, if the company had $2 million to invest and the capacity to manage both projects, it could reap the profits from both projects, i.e., $13 million.
• Elasticity is a concept from microeconomics that describes the tradeoff between Quantity and Price.
• Specifically, Elasticity is the ratio of a percentage change in quantity to the percentage change in price. Formulaically, Elasticity = % Change in Quantity Demanded or Supplied ÷ % Change in Price .
• For example, if an increase in the price of oranges from $1.00 apiece to $1.50 apiece causes demand for those oranges to fall from 100 units to 80 units, then the % Change in Quantity = –20% and the % Change in Price = 50%. Therefore the Elasticity of Demand = (–20 ÷ 50) = –0.4.
• Note that for normal goods, Elasticity of Demand will always be negative (higher prices mean less quantity is purchased) while Elasticity of Supply will always be positive (higher prices mean that suppliers are willing to produce and/or supply more goods).
• The concept comes up in multiple types of cases, such as pricing optimization. Clients often ask what the impact would be on volume if they adjust the price. Usually the correct answer is to increase prices in Inelastic markets (price increases lead to a relatively small decrease in products sold) and decrease them in Highly Elastic markets (price increases lead to a large decrease in product sold).

Financial Statements, Accounting and Valuation

Unlike Investment Banking interviews, which can be detailed and highly technical in terms of Finance and Accounting, Consulting interviews and the Consulting job itself revolve much more around estimation and exercising business judgment and “what-if” analysis. Rarely would a Consultant be called upon to develop and maintain a detailed, precise financial model for Discounted Cash Flow valuation, for example.

That being said, a basic-to-moderate understanding of the Income Statement, Balance Sheet and Statement of Cash Flows, and how they work together, is very relevant to many interviews. (You might even be provided with a basic Income Statement or Balance Sheet of a company as part of a Case Study interview question.)

Rather than reinventing the wheel and writing content on Finance and Accounting in this guide, we recommend you review any standard, basic Financial Accounting textbook to familiarize yourself with the components of basic Financial Statements:

• Income Statement (Revenue, Expenses, and Profit)
• Balance Sheet (Assets, Liabilities, and Equity)
• Statement of Cash Flows (Cash Flows broken out into the following categories of sources: Operating Activities, Investing Activities and Financing Activities)

We also recommend that you familiarize yourself with some basic core Finance concepts (Net Income, EBIT (Operating Profit), EBITDA, Free Cash Flow, Internal Rate of Return, Net Present Value, and Enterprise Value are good places to start) and core Valuation techniques (Cost of Capital, Comparable Company Analysis, Precedent Transaction Analysis, Discounted Cash Flow analysis, and Leverage Buyout analysis).  Although these concepts will not be tested and do not form a major part of general Consulting Case Study interviews, these topics can appear in a general discussion about a particular business situation and you should be able to discuss them at least on a basic level.

If you are applying for a job in Business Development, or for a Consulting position in a Corporate Finance group or at a firm that does a lot of Corporate Finance Consulting work, then you should definitely study up and be prepared for these core Finance and Accounting concepts, because they will likely be tested on in detail in your interviews. In addition to introductory Finance and Accounting textbooks, we highly recommend that these candidates read the Street of Walls Investment Banking Technical Training guide, which addresses complex details around Financial Statements, Accounting and Valuation at a very detailed level. (We also recommend this training guide in general to anyone who is interested in advancing their Finance and Accounting skills—particularly when it comes to Corporate Valuation.)

Do Your Students Know How to Analyze a Case—Really?

Explore more.

• Case Teaching
• Student Engagement

J ust as actors, athletes, and musicians spend thousands of hours practicing their craft, business students benefit from practicing their critical-thinking and decision-making skills. Students, however, often have limited exposure to real-world problem-solving scenarios; they need more opportunities to practice tackling tough business problems and deciding on—and executing—the best solutions.

To ensure students have ample opportunity to develop these critical-thinking and decision-making skills, we believe business faculty should shift from teaching mostly principles and ideas to mostly applications and practices. And in doing so, they should emphasize the case method, which simulates real-world management challenges and opportunities for students.

To help educators facilitate this shift and help students get the most out of case-based learning, we have developed a framework for analyzing cases. We call it PACADI (Problem, Alternatives, Criteria, Analysis, Decision, Implementation); it can improve learning outcomes by helping students better solve and analyze business problems, make decisions, and develop and implement strategy. Here, we’ll explain why we developed this framework, how it works, and what makes it an effective learning tool.

The Case for Cases: Helping Students Think Critically

Business students must develop critical-thinking and analytical skills, which are essential to their ability to make good decisions in functional areas such as marketing, finance, operations, and information technology, as well as to understand the relationships among these functions. For example, the decisions a marketing manager must make include strategic planning (segments, products, and channels); execution (digital messaging, media, branding, budgets, and pricing); and operations (integrated communications and technologies), as well as how to implement decisions across functional areas.

Faculty can use many types of cases to help students develop these skills. These include the prototypical “paper cases”; live cases , which feature guest lecturers such as entrepreneurs or corporate leaders and on-site visits; and multimedia cases , which immerse students into real situations. Most cases feature an explicit or implicit decision that a protagonist—whether it is an individual, a group, or an organization—must make.

For students new to learning by the case method—and even for those with case experience—some common issues can emerge; these issues can sometimes be a barrier for educators looking to ensure the best possible outcomes in their case classrooms. Unsure of how to dig into case analysis on their own, students may turn to the internet or rely on former students for “answers” to assigned cases. Or, when assigned to provide answers to assignment questions in teams, students might take a divide-and-conquer approach but not take the time to regroup and provide answers that are consistent with one other.

To help address these issues, which we commonly experienced in our classes, we wanted to provide our students with a more structured approach for how they analyze cases—and to really think about making decisions from the protagonists’ point of view. We developed the PACADI framework to address this need.

PACADI: A Six-Step Decision-Making Approach

The PACADI framework is a six-step decision-making approach that can be used in lieu of traditional end-of-case questions. It offers a structured, integrated, and iterative process that requires students to analyze case information, apply business concepts to derive valuable insights, and develop recommendations based on these insights.

Prior to beginning a PACADI assessment, which we’ll outline here, students should first prepare a two-paragraph summary—a situation analysis—that highlights the key case facts. Then, we task students with providing a five-page PACADI case analysis (excluding appendices) based on the following six steps.

Step 1: Problem definition. What is the major challenge, problem, opportunity, or decision that has to be made? If there is more than one problem, choose the most important one. Often when solving the key problem, other issues will surface and be addressed. The problem statement may be framed as a question; for example, How can brand X improve market share among millennials in Canada? Usually the problem statement has to be re-written several times during the analysis of a case as students peel back the layers of symptoms or causation.

Step 2: Alternatives. Identify in detail the strategic alternatives to address the problem; three to five options generally work best. Alternatives should be mutually exclusive, realistic, creative, and feasible given the constraints of the situation. Doing nothing or delaying the decision to a later date are not considered acceptable alternatives.

Step 3: Criteria. What are the key decision criteria that will guide decision-making? In a marketing course, for example, these may include relevant marketing criteria such as segmentation, positioning, advertising and sales, distribution, and pricing. Financial criteria useful in evaluating the alternatives should be included—for example, income statement variables, customer lifetime value, payback, etc. Students must discuss their rationale for selecting the decision criteria and the weights and importance for each factor.

Step 4: Analysis. Provide an in-depth analysis of each alternative based on the criteria chosen in step three. Decision tables using criteria as columns and alternatives as rows can be helpful. The pros and cons of the various choices as well as the short- and long-term implications of each may be evaluated. Best, worst, and most likely scenarios can also be insightful.

Step 5: Decision. Students propose their solution to the problem. This decision is justified based on an in-depth analysis. Explain why the recommendation made is the best fit for the criteria.

Step 6: Implementation plan. Sound business decisions may fail due to poor execution. To enhance the likeliness of a successful project outcome, students describe the key steps (activities) to implement the recommendation, timetable, projected costs, expected competitive reaction, success metrics, and risks in the plan.

“Students note that using the PACADI framework yields ‘aha moments’—they learned something surprising in the case that led them to think differently about the problem and their proposed solution.”

PACADI’s Benefits: Meaningfully and Thoughtfully Applying Business Concepts

The PACADI framework covers all of the major elements of business decision-making, including implementation, which is often overlooked. By stepping through the whole framework, students apply relevant business concepts and solve management problems via a systematic, comprehensive approach; they’re far less likely to surface piecemeal responses.

As students explore each part of the framework, they may realize that they need to make changes to a previous step. For instance, when working on implementation, students may realize that the alternative they selected cannot be executed or will not be profitable, and thus need to rethink their decision. Or, they may discover that the criteria need to be revised since the list of decision factors they identified is incomplete (for example, the factors may explain key marketing concerns but fail to address relevant financial considerations) or is unrealistic (for example, they suggest a 25 percent increase in revenues without proposing an increased promotional budget).

In addition, the PACADI framework can be used alongside quantitative assignments, in-class exercises, and business and management simulations. The structured, multi-step decision framework encourages careful and sequential analysis to solve business problems. Incorporating PACADI as an overarching decision-making method across different projects will ultimately help students achieve desired learning outcomes. As a practical “beyond-the-classroom” tool, the PACADI framework is not a contrived course assignment; it reflects the decision-making approach that managers, executives, and entrepreneurs exercise daily. Case analysis introduces students to the real-world process of making business decisions quickly and correctly, often with limited information. This framework supplies an organized and disciplined process that students can readily defend in writing and in class discussions.

PACADI in Action: An Example

Here’s an example of how students used the PACADI framework for a recent case analysis on CVS, a large North American drugstore chain.

The CVS Prescription for Customer Value*

PACADI Stage

Summary Response

How should CVS Health evolve from the “drugstore of your neighborhood” to the “drugstore of your future”?

Alternatives

A1. Kaizen (continuous improvement)

A2. Product development

A3. Market development

A4. Personalization (micro-targeting)

Criteria (include weights)

C1. Customer value: service, quality, image, and price (40%)

C2. Customer obsession (20%)

C3. Growth through related businesses (20%)

C4. Customer retention and customer lifetime value (20%)

Each alternative was analyzed by each criterion using a Customer Value Assessment Tool

Alternative 4 (A4): Personalization was selected. This is operationalized via: segmentation—move toward segment-of-1 marketing; geodemographics and lifestyle emphasis; predictive data analysis; relationship marketing; people, principles, and supply chain management; and exceptional customer service.

Implementation

Partner with leading medical school

Curbside pick-up

Pet pharmacy

E-newsletter for customers and employees

Employee incentive program

CVS beauty days

Expand to Latin America and Caribbean

Healthier/happier corner

Holiday toy drives/community outreach

*Source: A. Weinstein, Y. Rodriguez, K. Sims, R. Vergara, “The CVS Prescription for Superior Customer Value—A Case Study,” Back to the Future: Revisiting the Foundations of Marketing from Society for Marketing Advances, West Palm Beach, FL (November 2, 2018).

Results of Using the PACADI Framework

When faculty members at our respective institutions at Nova Southeastern University (NSU) and the University of North Carolina Wilmington have used the PACADI framework, our classes have been more structured and engaging. Students vigorously debate each element of their decision and note that this framework yields an “aha moment”—they learned something surprising in the case that led them to think differently about the problem and their proposed solution.

These lively discussions enhance individual and collective learning. As one external metric of this improvement, we have observed a 2.5 percent increase in student case grade performance at NSU since this framework was introduced.

Tips to Get Started

The PACADI approach works well in in-person, online, and hybrid courses. This is particularly important as more universities have moved to remote learning options. Because students have varied educational and cultural backgrounds, work experience, and familiarity with case analysis, we recommend that faculty members have students work on their first case using this new framework in small teams (two or three students). Additional analyses should then be solo efforts.

To use PACADI effectively in your classroom, we suggest the following:

Advise your students that your course will stress critical thinking and decision-making skills, not just course concepts and theory.

Use a varied mix of case studies. As marketing professors, we often address consumer and business markets; goods, services, and digital commerce; domestic and global business; and small and large companies in a single MBA course.

As a starting point, provide a short explanation (about 20 to 30 minutes) of the PACADI framework with a focus on the conceptual elements. You can deliver this face to face or through videoconferencing.

Give students an opportunity to practice the case analysis methodology via an ungraded sample case study. Designate groups of five to seven students to discuss the case and the six steps in breakout sessions (in class or via Zoom).

Ensure case analyses are weighted heavily as a grading component. We suggest 30–50 percent of the overall course grade.

Once cases are graded, debrief with the class on what they did right and areas needing improvement (30- to 40-minute in-person or Zoom session).

Encourage faculty teams that teach common courses to build appropriate instructional materials, grading rubrics, videos, sample cases, and teaching notes.

When selecting case studies, we have found that the best ones for PACADI analyses are about 15 pages long and revolve around a focal management decision. This length provides adequate depth yet is not protracted. Some of our tested and favorite marketing cases include Brand W , Hubspot , Kraft Foods Canada , TRSB(A) , and Whiskey & Cheddar .

Art Weinstein , Ph.D., is a professor of marketing at Nova Southeastern University, Fort Lauderdale, Florida. He has published more than 80 scholarly articles and papers and eight books on customer-focused marketing strategy. His latest book is Superior Customer Value—Finding and Keeping Customers in the Now Economy . Dr. Weinstein has consulted for many leading technology and service companies.

Herbert V. Brotspies , D.B.A., is an adjunct professor of marketing at Nova Southeastern University. He has over 30 years’ experience as a vice president in marketing, strategic planning, and acquisitions for Fortune 50 consumer products companies working in the United States and internationally. His research interests include return on marketing investment, consumer behavior, business-to-business strategy, and strategic planning.

John T. Gironda , Ph.D., is an assistant professor of marketing at the University of North Carolina Wilmington. His research has been published in Industrial Marketing Management, Psychology & Marketing , and Journal of Marketing Management . He has also presented at major marketing conferences including the American Marketing Association, Academy of Marketing Science, and Society for Marketing Advances.

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Market Entry Framework: How to Apply in Case Interviews

The market entry framework is a tool to assess whether a company should enter a particular market or introduce new products in existing markets by assessing growth opportunities, capabilities, and challenges. In case interviews , these frameworks are useful templates for market entry cases.

In this article, I will explain how you can apply market entry frameworks in market entry cases using a four-step guide and case examples. Let’s get started!

Market entry cases in case interview

A market entry is a type of case interview that asks candidates to evaluate and decide whether a client company should enter a particular market. The market entry case is one of the most common types of cases in consulting interviews since, in practice, consultants frequently deal with this type of cases 

Among MBB (Big 3) firms , market entry cases are more common at BCG and Bain than McKinsey.

Our Case Interview End-to-End Secrets Program assembled everything you need to know about consulting case interviews and how to pass them, so that’s the best place to go if you have general questions.

Types of market entry cases

There are three commonly encountered market entry cases: New geographic market case, New product category case, and New customer segment case. 

However, you also need to be aware that there are countless types of market entry cases and you can face any type of case in your case interview. Each case you receive has certain differences and comes with a different breakdown and solution.

Type 1: New geographic market case

Geographic market entry cases ask candidates to assess whether the business should expand to a new geographical market , for example, if Amazon Go should enter the UK or if Mercy Meats should enter South America.

Type 2: New product category case

On the other hand, product expansion cases ask candidates to assess whether the business should launch new business lines into their existing market , for example, if Disney should launch their own streaming service, or if Walmart should start selling meal kits from its service partners.

Type 3: New customer segment case

Lastly, targeting different customer segment cases ask candidates to assess whether the company ought to consider offering a version of an existing product to a new customer segment , for example, if KFC should serve premium fried chicken for the wealthy or if Gucci should target working class people. 

Examples of market entry cases

A French soft drink company, Le Seine, is looking to diversify its holdings by investing in a new fast food chain in the US. You are hired to determine whether they should pursue this path and, if so, how they should go about execution (HBS Case Interview Guide).

The client is a grocery store chain considering whether they should enter the emerging Internet-based grocery shopping/delivery market in the Boston area. This regional chain is currently one of the leaders in northern New England's traditional grocery store market.

In their core market, two competitors have emerged in the Internet/at-home grocery shopping business and are rapidly gaining market share. Should the client enter the market?

Apple, a technology company renowned for its premium smartphones and computers, has predominantly focused on individual consumers and creative professionals. Apple is now contemplating the prospect of expanding its market by targeting the corporate sector. Should Apple venture into the corporate market? If so, how should they do it?

Case interview frameworks – Definition & characteristics

Understanding what a framework is, the characteristics of good frameworks, and how to apply them in case interviews is essential to sounding structured and methodical – two main consulting traits interviewers look for.

What is a case interview framework? 

The most important thing to remember when using frameworks to solve a problem is to be FLEXIBLE. Consulting problems are complex and usually, there are no clear-cut, ready-to-use frameworks to solve them. The interviewer looks for context-relevant frameworks, not complicated but inappropriate ones.

Hence, the more you master the “building-blocks” frameworks, the better you can draw specific frameworks suitable to each context. Learn more about frameworks here .

Characteristics of a good framework

When building a framework, you should keep these three priorities in mind:

A good framework is top-down: The problem must be broken down from the generic to the specific, with each hypothesis staying on one level of the issue tree .

A good framework is MECE: MECE is extremely important in problem-solving because it ensures complete coverage of the problem while preventing effort duplications.

A good framework is geared toward isolating the root cause: To isolate the root cause, your framework must strictly follow the problem-solving methodology .

The MConsultingPrep market entry framework

In a market entry case interview , you are expected to evaluate an expansion opportunity (entry into new markets, new segments or new product lines in existing markets), decide whether the client company should pursue it , and, if yes, suggest an entry strategy . The underlying principle of the market entry framework is based on this process.

A market entry framework answers three questions, in order: “Should I enter?”, “Can I enter?”, “How to enter?” .

These ordered questions make up the  three steps of a market entry framework: Assessment, Feasibility, and Implementation.

Step 1: Assessment – Should I enter?

The first step is to justify WHY the company should pursue a particular expansion opportunity. To answer “Should I enter?”, you have to make two assessments – market assessment and company assessment . 

Company assessment will reveal the company’s internal motivations to expand, whereas market assessment shows the external motivations driving expansion decisions.

Company assessment

The first step after receiving a case is to ask for more information about your client company. Use that data to understand if there are internal motivations driving expansion decisions.

For example, let’s say you asked about revenue and were informed of a declining trend. You know this is a market entry case, so you might hypothesize that the client company’s revenue is declining because their product is at the mature stage of the product life cycle.

If the hypothesis is confirmed, this implies an internal motivation for the company’s expansion to other markets to capture new market shares or introduce new products to capture more revenues from their early life cycles.

Market assessment

The next step is to inquire into the market of interest to pinpoint the external motivations that can justify the need to expand. What is attractive about this market? Is it the market size, or the potential market demand? 

If information about the market size is available in the case, this implies that you need to first estimate it .

Sometimes, markets are attractive because of their location advantage , which can save transport costs or enable the client company to obtain cheap inputs . 

The open trade environment of a market might also help firms jump trade barriers. Finally, political stability is also attractive for minimizing risks and conducting business sustainably in the long run.

Other information to ask for:

What is the current product portfolio? What is the life cycle of each product? How closely related are the current products?

Who are the customers? How are they segmented?

What are the company’s key strengths and weaknesses?

What are the current distribution channels?

Who are the key suppliers and partners?

Regardless, the most important information to ask for are:

What geographical area will I serve, and how much demand will there be in the market?

What is the market’s growth rate? What are the current trends in the industry?

At what stage of the life cycle is it? Emerging, Mature, Declining?

Who are the existing competitors in the market?

Are there substitute products or potential entrants?

Are there any location-specific advantages that can save transport/ input costs?

Are there any macroeconomic, social, or geopolitical factors to consider?

Is there a key technology involved? How fast are technologies changing in the industry?

After gathering information about the company and market opportunities, do your cost-benefit analysis. By then, you can decide if the company SHOULD enter a new market or not. 

If you decide that the company should not enter , you no longer need to answer the other two questions. If you decide that it should enter , move on with the next step. 

Part 2: Feasibility – Can I enter?

Remember, only move on with this step if you’ve decided that the estimated benefit of this market entry outweighs the estimated cost. 

At this point, you need to assess the FEASIBILITY of entering a new market – does the client company have the financial capacities and capabilities to adapt to and profit from the new market?

Financial feasibility

Figure out whether the client company’s financial situation can cover investment costs . To do this, you first need to estimate the amount of investment required.

You can follow these questions, in order:

What investments are required for this market entry? (R&D, warehouse rent, factory rent, marketing, distribution, etc)

What is the current financial situation of the company?

Can the company fund these investments itself or can it raise the required capital?

Capability feasibility

The company’s capabilities help it secure market share by differentiating it from other competitors in the market. 

Examples of capabilities are firm-specific competitive advantages such as patented technologies, efficient logistics & production capacities, local knowledge, a low-cost structure, etc.

Important information to ask for:

Does the company have efficient distribution channels/ logistics?

Does the company have efficient production capacities?

Does the company have a patented technology/design that makes room for no substitution of its products?

Can the company obtain the capabilities it currently lacks?

Step 3: Implementation – How to enter?

This step will be applied if it’s feasible for the client to enter this new market and you must next suggest an entry strategy or an implementation plan. This plan must be specific in terms of timeline, modes of expansion, and execution details.

However, there are some market entry scenarios where the project may just require the first two components, which entails responding to the customer's inquiry regarding whether or not they should enter the market they desire. 

Propose a timeframe

Propose a time frame for your expansion strategy. When is the right time for the client company to enter the market? Is there a first-mover advantage at present? 

Don’t forget to refer back to the above information about the company’s situation and market opportunities to support your decision.

Propose a method of expansion

Regarding modes of expansion, there are three common strategies:

Partnership: Partnership entry modes are those wherein two (bilateral partnership) or more (network partnership) firms co-join their finance, skills, information and/or other resources to minimize risks. These are joint ventures , licensing , or joint distribution networks .

Organic: Organic entry modes involve those that increase the company’s sales using only internal resources. In other words, they are trade-based entry modes, such as exporting.

Mergers and Acquisitions (M&A): M&A generally occurs when one company directly purchases another company. Together, they form a new legal entity under one mother corporation.

Again, evaluate the information about the company and carefully compare that with the risks of each entry mode to decide on a suitable one. For example, if the client company has a patented technology, choosing a partnership entry mode runs the risk of technological theft.

You should also consider the commitment factor – how much control does the company want over the new market, and how much investment is it willing to make? 

With a simple strategy like exporting, you can exit easily but have less control. Meanwhile, with a wholly-owned subsidiary, investment costs are high but you also have more control.

Finalize your execution plan

The final step is to specify your execution plan, containing the key objectives to be implemented. The plan will also need to specify what tasks to be completed, who is in charge of each task, and how they should be carried out. 

The final plan will be the final deliverable to the client. The client can then choose to implement it themselves or sign another implementation contract.

The market entry framework – Sample case

Now, let’s apply the framework to a sample case so you can see the flow.

Situation: 

Your client company is Mercy Meats, an international plant-based meat producer in the US. The main ingredients in their products are soy protein and heme – a genetically modified ingredient extracted from soy roots that makes their products look and taste identical to animal meat.

Mercy Meats is considering an expansion in South American countries, Brazil in particular, after major successes in the US, Hong Kong, and Canada. Our client would like your help in deciding whether or not to pursue this growth opportunity, and if so, what their entry strategy should be.

We’ll begin by assessing the company – Mercy Meats, and Brazil’s market, to make an entry decision.

Company Assessment

For company assessment, we want to find out if there are any internal motivations specific to Mercy Meats regarding this entry decision. We are told that the only motivation is to satisfy its stakeholders’ expectations, profitability-wise and mission-wise.

Profitability-wise, shareholders want to scale up production to capitalize on economies of scale, thereby maximizing profits.

Mission-wise, the CEO and investors want to reduce the environmental footprint of the factory farming industry, by competing with conventional meat producers and making more consumers cut back on animal meat consumption.

Market Assessment

For market assessment, we will look at external motivations that Mercy Meats seek to justify its entry decision – attractive characteristics of Brazil’s alternative protein market.

What is the market’s size, growth rate, trends, and industry life cycle?

First, we’ll want to know the life cycle of plant-based meat, its market size in Brazil, the market’s growth rate, and trends. The plant-based industry is in its growth stage, with an annual average compound growth rate of 8% globally and 20% in Brazil’s market.

Meanwhile, we’re told that Brazil’s plant protein market size is predicted to reach $30.2 billion by 2023. This is mainly attributable to a strong shift in attitude towards vegetarianism among young Brazilian consumers. With a strong growth rate driven by positive attitude shifts, this market is an attractive place to be.

Who are the customers? What are their needs and preferences?

We can broadly construct a portfolio of our customers: people who are health-conscious, high-income, concerned about animal welfare, would buy plant-based protein as a substitution for animal protein, and enjoy similar tastes of real meat.

The interviewer might also inform us that our customers could be swayed by lab-grown meat for its real taste and “real meat” brand, although this technology is yet to be marketable due to its high price and environmental concerns.

The competitors of Mercy Meats will consist of any businesses meeting the same customer demand mentioned above. We’re told that direct competitors in the market are local plant-based brands, however, the tough competition will be posed by conventional meat players (such as Marfrig or JBS), who are starting to develop their own plant-based products.

Here, we should talk about events that can broadly affect our entry strategy. For example, we might point out that complex bureaucracy and lack of transparency are the two biggest barriers to doing business in Brazil.

As a response, the interviewer might say that Brazilian governments are committed to reducing bureaucracy by simplifying their tax structure and investing in public services digitalization (such as digitized tax fillings). This is a positive improvement, making Brazil a more attractive place to do business. You can raise other concerning issues in a similar manner if needed.

To summarize, we have sufficient reasons to decide that Mercy Meats should enter Brazil . Brazil’s plant-based protein market is overall attractive, with a strong predicted growth rate and, as a leading soy producer, can create a cost-saving advantage for the company.

The biggest concern so far is competition from well-established meat players, and lab-grown meat competitors in the near future. 

Step 2: Feasibility – Can I enter?

Now that we’ve decided that entering Brazil is beneficial for Mercy Meats, we need to see whether the client company is equipped with what’s required to do so, capability-wise and finance-wise.

First, we need to understand whether Mercy Meats has the capabilities (competitive advantages), to sustainably compete in the new market. 

In the US, Canada, and Singapore, Mercy Meats have very efficient logistical channels, with low warehouse capacity, minimal shipping time, low inventory turnover rate, and a high number of orders relative to all of its major competitors. The company definitely has the required capability to replicate another efficient logistical channel in Brazil.

Can the company produce premium quality products at a lower cost than its competitors?

Mercy Meats products, Mercy Burger, Mercy Sausage, and Mercy Pork, are much more expensive compared to animal meat products in Brazil. For example, one Impossible Burger pack weighing 1.4kg is currently priced at around $30, nearly 4 times higher than the same amount of beef (around $8 per 1.4kg) in Brazil. 

However, Brazil is the leading exporter of soybean in quantity due to its low price and premium quality. Hence, if the company can take advantage of the low soybean input in Brazil and can scale up its production, a more reasonable product pricing can be achieved. 

Does the company have a patented technology/design that distinguishes it from other competitors?

Mercy Meats owns a patented technology over its heme ingredient, a soy root-extracted ingredient that makes its products taste and look almost identical to animal meat. In fact, Burger Queen, a major fast food chain, chose to partner with Mercy Meats in the US because its products taste much more like real meat than that of Beyond Meat, Mercy Meats’ biggest competitor in the plant-based industry. 

What is the current financial situation of the company? Can the company fund the investments itself or can it raise the required capital?

Next, we will look at how much investment is required and whether the company can financially cover it. The total investment cost is estimated at $80 million, while the expected return is over $180 million in 2 years. 

Finance-wise, the company is doing really well, with average yearly revenue of $151 million. Mercy Meats also attracted many investors in the past, with $1.4 billion in total funding, of which $200 million was acquired in 2020. These figures exhibit investor confidence in the company, which implies a high chance of getting more funding in the near future.

After analyzing the facts and evidence, we can conclude that Mercy Meats clearly has the finance and capability to enter Brazil . Hence, we proceed with the decision to advise the client to say “Yes” to the entry decision.

The final step is to formulate an entry strategy, which includes deciding the implementation timeline, choosing the methods of expansion, and drafting an execution plan. We will examine each aspect, in the above order.

When is the best time to enter Brazil’s market?

The best time to enter Brazil is right now. We’ve observed that our major competitors, such as Marfrig, have started developing their own lines of plant-based meat. These competitors have better local knowledge than our client company and an already widely-recognized brand name in Brazil. Mercy Meats needs to move fast if it wants to secure a fair share of the plant-based meat market. 

Which method of expansion is the most suitable?

To effectively gauge demand, Mercy Meats should consider expanding under trade-based modes, exporting in particular, and growing organically first. After that, it is recommended that Mercy Meats establish its own subsidiary, to have better control of two aspects: technology and market. 

First, partnership modes are risky due to the potential of technological theft, subsidiaries or M&A modes can eliminate this risk, although they require more investment. Second, establishing a production subsidiary will enable the company to exert more control over the target market, by quickly adjusting production to customers’ needs and reducing logistic costs to be more cost-competitive . 

What is the execution plan?

Finally, we need to develop an execution plan.

What: The breakdown of tasks in the overall implementation plan, for example, establishing partnerships for exporting, marketing the product, setting up the factory, etc.

Who: Who will be in charge of the aforementioned tasks? What are their deliverables?

How: What are the targets for each task, what are the expected quality standards that align with the key objectives?

Market entry case: examples & guidelines 

Case 1: medicare plus.

Our client, MediCare Plus, is considering opening a new medical clinic in the affluent Riverside neighborhood of Los Angeles. Riverside is known for its high-income residents, including individuals from various socio-economic segments. 

The client aims to diversify their healthcare services and tap into the lucrative Riverside market that aligns with their expertise. They seek your guidance on whether to proceed with this investment.

Should MediCare Plus open a new medical clinic in Riverside, Los Angeles?

Step 1: Assessment - Should I Enter?

Current Capability: Can MediCare Plus handle this expansion given its current resources and expertise?

Strategic Alignment: Does this expansion align with MediCare Plus' long-term goals?

Market Size: How big is the Riverside healthcare market?

Market Growth: Is the Riverside healthcare market expected to grow?

Competitors: Who are the competitors in Riverside's healthcare market?

Step 2: Feasibility - Can I Enter?

Financial Feasibility

Initial Investment: What's the cost to set up the new clinic?

Operating Costs: What are the ongoing expenses, including salaries, maintenance, and utilities?

Revenue Projection: How much revenue can we expect from different patient segments and specialties?

Capability Assessment

• Facilities: Can MediCare Plus handle clinic setup and management in Riverside?
• Financing: How can we finance this expansion?
• Doctor and Patient Attraction: Can we attract top doctors and patients to Riverside?

Step 3: Implementation - How I Enter?

Key Milestones: What are the critical milestones and deadlines for the expansion?

Responsibility: Who is responsible for each task?

Tasks: What specific activities are needed for a successful launch?

Methods: How will we execute each task effectively?

Approaches: What strategies and methods will we use for marketing, patient acquisition, and operations?

Case 2: TechGizmo Inc .

Our client, TechGizmo Inc., is a leading manufacturer of smartphones and consumer electronics. They have been experiencing steady growth, with revenues of $500 million last year and a healthy profit margin of 15%. However, they are concerned about the cyclical nature of the consumer electronics industry, which can lead to fluctuations in their business.

The CEO is considering entering the market for smart home devices. They want your opinion on whether this would be a good strategic move for TechGizmo Inc.?

Current Capability: Can TechGizmo handle this expansion with its existing resources and expertise?

Strategic Alignment: Does this expansion align with TechGizmo's long-term goals and expertise in consumer electronics?

Market Size: How big is the smart home devices market in Westwood?

Market Growth: Is the smart home devices market in Westwood expected to grow?

Competitors: Who are the competitors in Westwood's smart home devices market?

Initial Investment: What's the cost to develop and launch the new line of smart home devices?

Operating Costs: What are the ongoing expenses, including production, marketing, and distribution?

Revenue Projection: How much revenue can we expect from different customer segments and product lines?

Product Development: Can TechGizmo efficiently develop and manufacture smart home devices?

Financing: What are the financing options available for this expansion?

Customer and Retailer Attraction: Can TechGizmo attract both customers and retailers to sell their smart home devices in Westwood?

Step 3: Implementation

Key Milestones: What are the critical milestones and deadlines for launching the new line of smart home devices?

Responsibility: Who is responsible for each task, from product development to marketing?

Tasks: What specific activities are needed for a successful product launch?

Methods: How will we execute each task effectively, from marketing strategies to distribution?

Approaches: What marketing strategies and distribution methods will we use to promote and sell our smart home devices in Westwood?

What do you think about the market entry framework sample presented above? It’s super detailed, isn’t it? Even so, it’s just theory. 

The only way to master the market entry framework is to practice. You need to learn and understand the fundamentals of market entry cases.

And it would be best if you had any consulting experts review your performance. Reach out to our ex-consultants , who can give you concrete feedback on your answer to a specific market entry framework case. 

Meet your coach today to start sharpening your skills! They’ll help you determine your weak areas and suggest effective improvement methods. 

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What Does the Proposed Causal Inference Framework for Observational Studies Mean for JAMA and the JAMA Network Journals?

• 1 Executive Managing Editor, JAMA and JAMA Network
• 2 Department of Emergency Medicine, Harbor-UCLA Medical Center, Torrance, California
• 3 Statistical Editor, JAMA
• 4 Deputy Editor, JAMA
• 5 Executive Editor, JAMA and JAMA Network
• Special Communication Causal Inference and Effects of Interventions From Observational Studies in Medical Journals Issa J. Dahabreh, MD, ScD; Kirsten Bibbins-Domingo, PhD, MD, MAS JAMA

The Special Communication “Causal Inferences About the Effects of Interventions From Observational Studies in Medical Journals,” published in this issue of JAMA , 1 provides a rationale and framework for considering causal inference from observational studies published by medical journals. Our intent is to invite discussion of this framework, explore its application in the context of specific study designs, and actively examine how this framework could be implemented and used by authors, peer reviewers, and editors of medical journals, including JAMA and the journals of the JAMA Network. Our overarching goal is to ensure that findings from observational designs may be appropriately interpreted in thoughtful and circumspect manners and applied by readers, other researchers, and clinicians, with the ultimate goal of improving patient care and public and global health.

Two points are worth underscoring in describing our intention with this publication. First, the proposal for causal interpretation of some observational studies should not be interpreted as diminished enthusiasm at JAMA for well-conducted randomized clinical trials that remain the foundation of evidence-based medicine. More than half of the Original Investigations published in JAMA last year were randomized clinical trials, and our examination of the reporting of observational studies does not signal an intent to depart from this practice. 2  JAMA and all of the journals of the JAMA Network also publish observational studies, many intending to provide evidence that addresses important causal clinical or public health questions, and some using designs and analytic approaches that produce results that may have a causal interpretation when key assumptions are plausible. Our responsibility to readers is to report scientific findings with precision and clarity. Part of this responsibility is to keep pace with methodological advances and to provide guidance and flexibility to authors to enable this precision and clarity in communicating the intent of the research and the carefully structured interpretation of the findings.

Second, while this framework could be applied to all observational studies published in JAMA and the JAMA Network, we anticipate that causal interpretations will be possible only in a select subset of these studies. Many observational studies do not address causal questions, and for some with this intent, causal inference may not be relevant, sufficiently well supported, or even possible. As acknowledged in the Special Communication: “For some observational studies that start with causal goals, causal inference may prove impossible; in these cases, estimates may be given associational interpretations. In addition, many important descriptive and predictive research questions can be answered by observational studies that do not require causal notions.” 1

So with excitement and trepidation, we will now consider how best to balance methodologic advances and semantic and interpretive flexibility in the reporting of research with the principles in our long-standing and often discussed reporting policy that generally limits use of causal language to well-done randomized clinical trials. 3 We anticipate that this will be a multistep process of considering potential changes, including how and when we can apply the proposed causal inference framework to select observational studies. Next steps will include reviewing when and how specific observational study designs and analyses can support causal inferences. To support this part of our process, JAMA will publish a new set of articles in the Guide to Statistics and Methods series that address how the proposed causal inference framework may be applied to specific study designs and methods. These guides will build on previous guidance 4 - 10 and include practical tips and concrete examples of specific study designs and analyses, such as target trial emulation, instrumental variable analysis, regression discontinuity, interrupted time series, difference-in-difference, and mediation analysis. Reports of these studies as well as nonrandomized controlled studies (or other “quasi-experimental” studies) will require specific conditions be met to support casual inferences, including clearly discussing the necessary assumptions in view of background knowledge; incorporating design elements to improve plausibility of assumptions; implementing statistical methods to address bias due to confounding, selection, missing data, and measurement error; and properly quantifying uncertainty.

In parallel, there will be continued discussion among our journal editors and statistical editors, engagement with researchers and authors, and plans to retain and identify additional peer reviewers with understanding of causal inference methods as well as knowledge to adequately judge the appropriateness of these methods as explicated in reports of studies.

We look forward to readers’ and other stakeholders’ comments about the proposed framework as we continue exploring how best to apply casual inference concepts and provide recommendations for authors, reviewers, editors, and readers.

Published Online: May 9, 2024. doi:10.1001/jama.2024.8107

Corresponding Author: Annette Flanagin, RN, MA ( [email protected] ).

Conflict of Interest Disclosures: Dr Lewis reported serving as senior medical scientist at Berry Consultants LLC, a statistical consulting firm focusing on the design, implementation, and analysis of adaptive and platform clinical trials. No other disclosures were reported.

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Flanagin A , Lewis RJ , Muth CC , Curfman G. What Does the Proposed Causal Inference Framework for Observational Studies Mean for JAMA and the JAMA Network Journals? JAMA. Published online May 09, 2024. doi:10.1001/jama.2024.8107

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• Published: 14 May 2024

An integrative framework for mapping the psychological landscape of risk perception

• Sarah C. Jenkins 1 , 2 ,
• Robert F. Lachlan 2 &
• Magda Osman 3  

Scientific Reports volume  14 , Article number:  10989 ( 2024 ) Cite this article

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• Human behaviour

We vary greatly in our perception of risk, not just because of differences between risks themselves, but also because of individual, contextual and cultural differences too. To better understand and predict responses to risk, we need to (a) integrate these components, combining approaches from different psychological disciplines and (b) also consider risk tolerance – how individuals trade-off between risks and benefits. We therefore developed an ICONS (individual, contextual, cognitive, social) framework; using it across two empirical studies (n = 4228) to examine how individuals perceive and respond to the quotidian risks associated with consumer products. Three dimensions underlined risk perceptions: benefits, dread and individual responsibility. Risk tolerance was typically predicted by interactions between individual (demographic, cultural worldview, personality) and contextual (product type/category, harm information) factors. In turn, perceived dread, benefits and individual differences shaped how likely participants were to communicate risk information. Our results demonstrate for the first time how the interaction between individual, cognitive (risk tolerance, intensity), contextual, and social (risk communication) factors is key to understanding and predicting risk perceptions. Together, our findings help explain why societal responses to risks are often difficult to predict and have implications for the spread, and amplification, of risk information.

Introduction

The study of risk perception has provided insight into how we assess and respond to societal hazards, often focusing on those with catastrophic potential, such as nuclear power, terrorism and climate change 1 , 2 , 3 . But risk is also something that we confront daily in almost every decision we make, yet despite its ubiquity, this aspect of risk perception has been comparatively neglected by the literature. One context where risk is inherent is in consumer product choices: “should I buy the newly advertised combined washer-dryer-iron appliance, or should I buy the traditional ones separately?” or “should I allow my child to use a e-scooter to ride to school?” Advances in technology mean that new products are regularly coming to market, the risks of which consumers must assess. Although the risk associated with any one consumer item is small, their combined risk across society is significant. In spite of decades of research and government interventions, injuries and deaths caused by home, leisure and school accidents (including those involving consumer products) were by far the biggest cause of non-fatal injuries across the European Union between 2009 and 2018 4 . Despite this, in general, such risks are tolerated – that is the trade-off between perceived risk and benefits is weighted towards the latter. Furthermore, such decisions (whether to buy a product or whether to use it) are made very frequently, though little is understood with regards to the contribution that perceptions and tolerances of risk make to day-to-day consumer decisions 5 . Here, we argue a different, more holistic perspective is required to fully understand risk perceptions and their relation to risk tolerance, particularly given the nature of such quotidian risks.

Previous perspectives such as the cognitive or ‘psychometric’ approach originated from the observation that the public’s risk perceptions did not always reflect technical assessments of ‘objective’ risk (based on probability of hazard × severity of harm). Of course, in day-to-day life, individuals typically assess risks with very limited access to reliable probability information, meaning perceptions and judgements are formed in relation to other, non-technical factors 6 . Instead, individuals use a range of heuristics to process risk information, such as severity, familiarity and controllability, which influence how much risk is perceived 7 . Given such assessments take place with limited access to objective information, we can expect (and indeed find) that people sometimes overestimate and sometimes underestimate the dangers they face 8 .

However, a focus on the factors driving risk perceptions is only one part of the psychological landscape; attention should also be paid to the function of risk perceptions – that is, how an individual weighs up risks against benefits to inform their tolerance of risks when making decisions to act based on their appraisals. This can be neatly illustrated for quotidian hazards, where risks are relatively low, the cognitive integration of risk with benefits is especially important. Whilst the role of benefits in shaping risk perceptions has been previously highlighted 9 , 10 , 11 , here we argue that they also have ramifications for how much risk individuals are willing to tolerate – essentially the trade-off between risks and benefits. The finance literature has long since recognised the trade-off between risk and return and relatedly, the notion of risk tolerance (often referred to as risk preference – “the tendency to be attracted or repelled by alternatives that are perceived as risky” p.142 12 ). Although such a mechanism has been explored previously in psychological research on risk 13 , we use a richer, more holistic measurement of perceived risk than previously used in order to calculate risk tolerance. From this, our novel proposal, which is empirically investigated, is that understanding risk perceptions requires a complementary understanding of risk tolerance , because risk tolerance is likely to directly inform an individual’s actions beyond their perceptions of risk. That is, an individual may perceive a high risk for a particular item, but the effect of this is moderated by the level of benefits, with high benefits outweighing the perceived risks, reflective of risk tolerance. An analogous situation is the interplay between risk assessment and risk management, in which a risk is identified and quantified, and a decision still required as to what action should be taken. This new framing of risk tolerance represents an explanation for why risk perceptions have not always been found to consistently predict behaviour 14 .

In focusing largely on cognitive factors, the psychometric approach has neglected the role of individual, social, and cultural factors in shaping risk judgements 15 , and relatedly that of trust 16 , and how they might explain the variance between people in their perceptions of risk. To address this, other studies have focused on person-specific factors such as demographics and personality. Socio-demographic characteristics such as age and gender have also been consistently, if weakly, associated with risk perceptions, with lower risk perceptions seen for young people and/or males 17 , 18 , 19 . Many traits have been identified as correlated with risk perceptions, albeit also relatively weakly, including risk propensity 20 , 21 , 22 , risk preference 23 , risk sensitivity 24 and openness to new experiences 25 . Yet attitudes towards risk are not always stable, with differences observed across contexts 21 argued to reflect the limited explanatory contribution of individual characteristics in shaping risk perceptions. Crucially though, their (perceived) limited importance may be a result of the narrow focus of previous research, rather than accurately reflecting the contribution of individual characteristics.

A third group of explanatory factors explore the role that cultural biases (reflecting values and beliefs – ‘worldviews’) play in generating inter-individual differences in risk perception. The cultural theory (CT) of risk 26 , 27 , 28 argues that risk is socially constructed and is dependent on cultural context (for a review see Ref. 29 ). Specifically, cultural biases and social relations influence risk perceptions, with increased risk perceived when hazards threaten one’s worldview 30 . However, worldviews explain only limited variance in risk perceptions 31 and their predictive value has not always been consistently demonstrated 15 , 32 , 33 , 34 .

These advances in understanding of risk perceptions still remain limited because they typically investigate risk from within silos: taking one perspective while excluding other contributing factors. As such, existing literature is a challenging landscape to draw firm insights and recommendations from; at best the findings are disparate and at worst, highly contradictory. It is for this reason that to fully answer the question of “why might one individual perceive a risk as particularly severe, and another not?”, beginning at the individual level to integrate across individual, cognitive, contextual and social factors is a practical solution, before moving on to population level dynamics 35 . For example, the risk of a vaccine specifically administered to children versus adults might have a cognitive component related to the recipients’ risk of illness, but this may be perceived differently by men and women, or parents versus non-parents, or those with hierarchical versus egalitarian worldviews. Without considering these factors together, one risks mistakenly asserting that certain factors are not of great import in the formation of risk perceptions, when in fact they are, but rather in conjunction with other factors. The current study was thus designed to test the relative contribution of these factors, and their potential interaction, as well as considering the downstream effects on the public’s risk tolerance.

In fact, this interplay also exposes another layer of factors that have been largely ignored in risk perception studies: what determines the day-to-day communication of risk experiences to others. While it is necessary in the process of risk assessment and risk management to have an agreed mechanism for communicating risk between experts, it is less clear which factors inform the basis for at an individual level. The social amplification framework [SARF] 36 was developed as a framework for exploring how social context could influence how a risk is perceived, understood, communicated – potentially lead to amplification or attenuation of the risk within a society. However, the SARF initially focused on the role of the mass media, but the advent of new communication channels (including social media) presents new challenges for understanding risk communication 37 . More pertinently, SARF focuses of on communication at a societal level, rather than fully exploring the nuances of individual perceptions and what these might mean for information dissemination. Ultimately, risk dissemination does not necessarily mean social amplification 38 , which SARF fails to capture, paving the way for the current, individually based approach.

In the present study, we build on past literature to examine a core question that has practical implications: which factors account for the variance between individuals in the way they perceive, tolerate, and communicate risks? We synthesise across the separate factors that have been investigated so far, and present our individual, contextual, cognitive, social framework (ICONS framework, see Fig.  1 ). We did not make specific hypotheses about the precise direction, or relative influence of these factors in light of mixed past findings. In addition, to our knowledge, no research has integrated the aforementioned factors together (whilst allowing for the potential of bidirectional relationships) in a single study – which was one of the drivers for this research. What we do, however, suggest is that risk perceptions will be a combination of these four factors, and that the most interconnected factor is that of the individual. Individuals vary (demographically, culturally and personally), and these differences influence (1) how an individual appraises a risk; (2) how they integrate contextual information with existing risk perceptions and appraisals; (3) whether and where to seek or share information. Across two pre-registered studies, we investigate risk perceptions both as a static concept (Study 1), but also as a dynamic one, examining the extent to which perceptions are updated in light of new information about harm (Study 2), with the intention of answering the following:

Which dimensions underlie risk perceptions for quotidian risks?

What is the relative contribution of individual, contextual, cognitive and social factors in shaping risk perceptions?

How individuals decide what is an acceptable level of perceived risk (that is, an individual’s risk tolerance )?

What are the downstream consequences of risk perceptions for risk communication, (i.e. how information is spread), and which factors drive this?

The individual, contextual, cognitive, social (ICONS) framework. An overview of our integrative approach to investigating risk perceptions, in which the factors identified link and interact with each other to shape risk perceptions. Factors surrounded by continuous lines were investigated in both Studies 1 and 2, and those surround by dotted [dashed] lines investigated only in Study 1 [Study 2]. Given its inclusion in the technical risk assessment process, “objective” risk is included for completeness but was not investigated in the present studies.

We find that consumer risk perceptions can be explained by three dimensions: benefits, dread and responsibility. The precise nature of these risk perceptions is shaped by a range of individual, cognitive and contextual factors, and show for the first time that these interact with each other. The results of these interactions influence both how much risk we are willing to tolerate, but also our search and communication of risk information. Our results suggest that the contribution of individual differences in shaping risk perceptions has been unfairly discounted in previous work.

All analyses were run using R 39 in R Studio, version 4.2.2 (2022-10-31) 40 . A summary of our findings in relation to our research questions can be found in Table 1 .

Risk perceptions

Latent dimensions.

In Study 1 (n = 973), each participant rated a random selection of nine consumer products on a series of 11 characteristics (for data preparation, see Supplementary Materials 2 ). We found that perceived risk ratings of 54 different products (see Supplementary Materials 1 ) could be explained by three main dimensions (derived from a principal component analysis [PCA] on the aggregated data across individuals, see Supplementary Materials 3 ), which explained 92.9% of the variance. We termed the first dimension ‘benefits’, which consisted of ‘benefits’ (very great benefits), ‘familiarity’ (extremely familiar), ‘likelihood of use’ (very frequently) and ‘usefulness’ (extremely useful). The second dimension, labelled ‘dread’, consisted of ‘severity’ (extremely severe), likelihood of injury (extremely likely), ‘worry’ (extremely worried) and ‘known to those at risk’ (known precisely to those at risk). The final dimension we termed ‘individual responsibility’, comprising of ‘responsibility for protection’ (totally my responsibility), ‘blame’ (completely the fault of the individual) and ‘control’ (total control).

Predictors of risk perceptions

Having identified these three dimensions underlying risk perceptions in Study 1, we performed structural equation modelling (SEM) to predict (a) benefits, dread and responsibility scores derived from the PCA and (b) personal and impersonal source communication scores, using the BRMS package 41 . For full details on the model specification process, see Supplementary Materials 4 . Given the diversity of products included, we included four additional overarching product categories to the model, which on the basis of previous literature were hypothesised to influence risk perceptions: product age (‘old’ versus ‘new’), main purpose (‘household good, appliance or healthcare’ versus ‘leisure, recreation or personal care’), power/fuel (‘involves power/fuel’ versus ‘does not involve power/fuel’) and vulnerable groups (‘vulnerable groups use/interact with more than other groups’ versus ‘vulnerable groups do not use/interact with more’). The categorisation of each product was validated in a separate study (Study 1B, see Supplementary Materials 5 ). As an example, fridge/freezers were categorised as old, household goods, involving power/fuel and not used/interacted with more by vulnerable groups. In contrast, neodymium magnets in construction toys were categorised as new, leisure goods, non-powered and used/interacted with more by vulnerable groups. UMAP analysis 42 of how these products clustered can be found in Supplementary Materials 6 .

Higher benefits and dread were perceived by those who were younger, females, parents or those high in risk propensity (for an overview, see Fig.  2 ). Dread was additionally influenced by cultural worldview, with hierarchical and individualist worldviews associated with lower dread. The level of benefits perceived for certain types of products (older, leisure, or those used more by vulnerable groups) was less consistent and differed according to age, gender, parental status and risk propensity. In contrast, levels of dread were consistently predicted by product type, with older or leisure products more dreaded than newer or household products.

Clear (≠ 0) Predictors of risk perceptions and communication – Study 1. The final model specified was: benefits, dread, responsibility, communication – personal/impersonal ~ (grid worldview + group worldview + risk propensity + age + gender + children) * (product age + main purpose + power/fuel + vulnerable groups) + (1 + product age + main purpose + power/fuel + vulnerable groups|ID) + (1|Product). Positive (negative) estimates indicate high (low) benefits, high (low) dread, high (low) individual responsibility and high (low) likelihood of communicating risk information (both seeking and sharing).

Individual characteristics were most influential for perceptions of perceived individual responsibility. Higher levels of individual responsibility were perceived by those who were older, male, had an individualist or hierarchical worldview or those low in risk propensity. There was less of an effect of product category, though older products were perceived as more of the responsibility of individuals versus newer products.

To summarise, differences in perceived individual responsibility were primarily driven by individual differences. In contrast, differences in perceived dread and benefits were predicted by a combination of individual differences and product category. The fact that high benefits were associated with high levels of dread could seem counter-intuitive, but can be reconciled with reference to risk tolerance, recognising that there is an active trade off between positive and negative aspects of risk.

Risk perceptions in Study 1 were measured in the absence of any contextual information – participants were given only the name of a product and a brief description, before rating them. In reality, product risk is assessed within a far richer context, where information from the environment and others around us is integrated to form an overall perception of a particular product. Study 2 therefore included more contextual information at Time 1 (product purchase location: online versus bricks and mortar store), with information about a harm incurred introduced at a second time point. This harm information related to cause (arising from product non-compliance versus the user’s actions), and who experienced the harm (friend [known] versus unknown other).

We therefore created composite benefit and dread scores for each time point (Time 1 – initial perception, Time 2 – perception post-harm information). We ran a Bayesian multivariate mixed effect model to predict benefits and dread, using the BRMS package 41 . For full model specification details, see Supplementary Materials 4 . As expected, there was a strong effect of time, with higher dread and lower benefits at Time 2.

Higher overall perceived benefits (i.e. across time points) were perceived by those high in risk propensity, though the majority of the effects of individual differences occurred in relation to time. Older adults, females or those with children under 10 perceived fewer benefits at Time 2. There were consistent interactions between the contextual factors (place of purchase, cause of harm, who experienced harm) and time, with reduced benefits at Time 2 when the product was bought online, harm caused by non-compliance, or a friend experienced the harm.

Higher overall dread levels were perceived by those who were older, females, parents or those low in risk propensity and for those products bought online (for an overview, see Fig.  3 ). Again, as expected, the contextual factors interacted with time, with higher dread levels at Time 2 when harm was caused by non-compliance and if a friend experienced the harm. Additionally, the specific product also influenced dread levels, though the direction of this effect varied by non-compliance.

Clear (≠ 0) predictors of overall risk perceptions – Study 2. Estimates were derived from the model: dread, benefits ~ ((product + place of purchase + harm cause + harm experience)^2) + time + (time * harm cause) + (time * harm experience) + (place of purchase * harm cause * time) + (place of purchase * harm experience * time) + (age + gender + children + risk propensity + grid worldview + group worldview) * (place of purchase + harm cause + harm experience + time) + (1|ID). Positive estimates indicate higher dread and benefits.

Consistent with previous literature using the psychometric paradigm, our findings highlight that risk perceptions are influenced by a variety of qualitative factors, which are not directly related to objective measures of risk (e.g. probability of occurrence). These qualitative factors include both contextual factors (product category membership, product, presence of harm information), as well as individual factors, such as those relating to demographics, personality and cultural worldview. Our results emphasise the need to consider not just differences between risks, but also differences amongst individuals when investigating risk perceptions. Moreover, for the first time we show that these factors interact, supportive of our integrative approach.

Risk tolerance and intensity

Whether an individual decides to take an action or not based on how they consider the risk is only partly a function of perceived dread. Other practical factors will play a role, such the opportunities (utility) gained. What has often been overlooked in the psychological risk literature is how individuals decide what is an acceptable level of perceived risk, that is, an individual’s risk tolerance 14 . This is conceptualised as the trade-off between perceived benefits (utility) and perceived dread (cost) when individuals decide whether to use a product, even if they perceive a risk 5 . We investigated this in exploratory analyses: in Study 1, risk tolerance was operationalised as the benefits dimension score [B] minus the dread dimension [D] score. In Study 2, the benefits dimension comprised of ‘benefits + likelihood of use’ and the dread dimension comprised of ‘worry + severity + hazardousness’, with tolerance again calculated as benefits minus dread. In both cases, high values indicate high risk tolerance (high levels of perceived dread, but still high benefits). As a complement, combining both perceived dread and benefit dimensions gives a general indication of the potency of risk of a product, taking all advantages and disadvantages into account – what we refer to as ‘perceived risk intensity’. In this way, when making a purchasing decision, risk intensity is the formation of the overall impression of the product’s risk, whereas risk tolerance is the calculation to pursue the risk given the opportunities afforded by it.

Rather than being mere statistical constructs, we argue that both risk tolerance and risk intensity help further elucidate the dynamic, multi-dimensional nature of how individuals perceive risk and provide a more nuanced view. Risk tolerance captures the degree to which perceived benefits are powerful enough to outweigh risks of hazards. Risk intensity captures the intensity of response, irrespective of valence – whether positive (low levels of dread and high levels of benefits) or negative (high levels of dread and low levels of benefits). To illustrate an example from our dataset, irons are perceived fairly equally for dread and benefits, as are musical greeting cards. The risk tolerance associated with these two products is thus fairly similar. However, the risk intensity of irons (which are perceived as high dread and high benefits) is much higher than for musical greeting cards.

For Study 1, we conducted structural equation modelling to predict (a) risk tolerance, perceived risk intensity and responsibility scores and (b) personal and impersonal communication scores using the BRMS package 41 . For full model specification details, see Supplementary Materials 4 .

Whilst risk tolerance was predicted by individual differences (demographics, cultural worldview and personality), this was most frequently as part of interactions with product category membership (Fig.  4 ). For instance, the older an individual was, the lower their perceived tolerance for the risk posed by newer or leisure products, or those used by vulnerable groups.

Clear (≠ 0) Predictors of risk tolerance, intensity, responsibility and communication – Study 1. The final model specified was: risk tolerance, risk intensity, responsibility, communication – personal/impersonal ~ (grid worldview + group worldview + risk propensity + age + gender + children) * (product age + main purpose + power/fuel + vulnerable groups) + (1 + product age + main purpose + power/fuel + vulnerable groups|ID) + (1|product). Positive estimates indicate increased risk tolerance and intensity, increased individual responsibility and increased likelihood of communicating risk information (both seeking and sharing).

Risk intensity was primarily predicted by individual differences, with higher risk intensity perceived by those who were young, females, parents of children aged 0–10, those with an egalitarian or communitarian worldview, or those high in risk propensity (for an overview, see Fig.  4 ). There were higher levels of risk intensity for older products. Whether vulnerable groups interacted with or used the product more was also predictive of risk intensity, but only in relation to parental status, whereby parents of children aged 0–10 perceived higher intensity for products used more by vulnerable groups.

Differences in perceptions of individual responsibility were extremely similar to those reported for the original SEM model in the previous section – with individual characteristics far more influential compared to product category characteristics.

In Study 2, risk tolerance and perceived risk intensity was captured at two time points (both pre and post presentation of the harm information). Using the BRMS package 41 , we used multivariate modelling to predict risk tolerance and intensity scores, assessing the effect of presentation of the harm information by including interactions with time within this model. For full model specification details, see Supplementary Materials 4 .

As expected, risk tolerance was lower at Time 2, with both individual and contextual factors consistently predictive of tolerance. At Time 2, males, non-parents, those with an hierarchical worldview, or those high in risk propensity displayed higher risk tolerance. Similarly, clear effects of contextual factors were also observed. Overall, products purchased online showed lower risk tolerance. At Time 2, lower risk tolerance was observed for non-compliant products or when a friend experienced the harm (see Fig.  5 ).

Clear (≠ 0) predictors of risk tolerance and perceived risk intensity – Study 2. Estimates were derived from the final model specification: risk tolerance, risk intensity ~ ((product + place of purchase + harm cause + harm experience)^2) + time + (time * harm cause) + (time * harm experience) + (place of purchase * harm cause * time) + (place of purchase * harm experience * time) + (age + gender + children + risk propensity + grid worldview + group worldview) * (place of purchase + harm cause + harm experience + time) + (1|ID). Positive numbers refer to higher risk tolerance and perceived risk intensity.

As envisaged, perceived risk intensity was also higher at Time 2. Similar to risk tolerance, both individual (demographic, personality) and contextual factors predicted perceived risk intensity. Females perceived higher levels of risk intensity overall. At Time 2, older adults showed reduced risk intensity (see Fig.  5 ). In terms of contextual factors, individuals perceived lower levels of risk intensity at Time 2 for products purchased online and those which turned out to be non-compliant.

Likelihood of risk communication and attributions of responsibility

In Study 1, differences in likelihood of seeking and sharing of product risk information to personal sources were primarily driven by individual differences (Fig.  4 ). In terms of demographics, females, younger adults and parents of children under 10 were more likely to seek information from, and share it with personal sources versus males, older adults or non-parents. When it came to impersonal sources, product category membership played more of a role, with lower likelihood of communication for older, leisure products.

High levels of perceived dread/benefits were associated with increased likelihood of risk communication with both personal and impersonal sources. Relatedly, risk tolerance and intensity were also predictive of likelihood of seeking and sharing of product risk information; higher perceived risk intensity was associated with higher likelihood of communication with both sources, whereas higher risk tolerance was associated with higher likelihood to personal sources, and lower likelihood of communication with impersonal sources.

In Study 2, we measured the communication of risk only after presentation of the harm information. Using the BRMS package 41 , we performed SEM to predict (a) dread and benefit scores at Time 2, (b) personal and impersonal communication scores and (c) responsibility attributions to external parties and the user. In light of Fig.  3 , for clarity, we present the results of (b) and (c), with the full version available in Supplementary Materials 7 .

In Study 2, differences in risk communication with personal sources were partially driven by individual differences, with females, parents of children under 10 or those higher in risk propensity more likely to seek information from, and share it with personal sources (see Fig.  6 ). However, also influential were product and contextual differences (cause of harm, who experienced the harm), though the direction of these effects depended on the specific product in question. For communication with impersonal sources, individual differences were most influential, with higher likelihood of communication for females, older adults and those higher in risk propensity.

Clear (≠ 0) predictors of communication and responsibility attributions – Study 2. Estimates were derived from the final models: communication – personal/impersonal, responsibility – user/external ~ ((product + place of purchase + harm cause + harm experience)^2) + (dread + benefits) + (age + gender + children + risk propensity + grid worldview + group worldview) * (place of purchase + harm cause + harm experience)). Higher estimates indicate increased likelihood of communicating risk information (both seeking and sharing) and increased responsibility.

High dread levels predicted higher likelihood of both personal and impersonal risk communication, though benefits predicted engagement only with impersonal sources, with high benefits associated with a lower likelihood of risk communication.

Both dread and benefits predicted attributions of responsibility, with higher dread predicting higher external responsibility and higher benefits predictive higher user responsibility. Individual differences (demographics, cultural worldview) consistently predicted attributions of responsibility, such that being female, older, a parent or having an individualist/hierarchical worldview were predictive of higher levels of user responsibility. Contextual factors were also important: product and cause of harm consistently predicted attributions of responsibility. When the harm was caused by product non-compliance, generally external responsibility attributions were higher, though there were interactions by product.

Across two studies, we find that risk perceptions for consumer products are multi-faceted and are influenced by a combination of cognitive appraisals, individual differences, social and contextual factors. Our study examines a far broader range of predictors compared to previous research, which has typically only focused on one of these factors at a time. The fragmented nature of research and lack of integrated analysis in the risk community has long since been noted 37 ; the development of ICONS provides a framework in which we demonstrate that these factors have interactive effects over and above the singular effects documented in previous literature. Broadly, risk perceptions for consumer products comprise of three components: benefits, dread, and individual responsibility (Study 1). These perceptions are not static but rather change in response to new information about harm (Study 2), though the extent to which they do differs according to cognitive appraisals and individual characteristics (demographics, cultural worldview and risk propensity).

Replicating prior results from the cognitive theory of risk, we find that risk characteristics (e.g. severity of harm, familiarity, worry) account for a considerable proportion (93%) of variance in risk perceptions. However, we also find that individual characteristics play an important role in predicting risk perceptions, supportive of our integrative ICONS framework. Personality (risk propensity) and socio-demographic characteristics, such as age, gender and whether one is a parent of a child under 10 consistently predicted the three components. Whilst the influence of age and gender has been noted in the literature on risk perceptions 17 , 18 , 19 , up until now the effect of parental status has been generally overlooked. Our findings are however in line with results from the health literature, which show that parents make more risk averse decisions for their children than for themselves 43 and indeed have significantly higher risk perceptions, for instance of Covid-19 44 . We also observe that individual’s cultural worldview shapes risk perceptions 45 , 46 , 47 , predominantly for the individual responsibility component.

Whilst the concept of ‘risk tolerance’ is certainly not new, particularly in the finance domain 48 , prior psychological literature has almost wholly focused on risk perceptions, at the expense of risk tolerance. Part of this focus may be a result of the lack of consistency in how the term has been defined or used previously; a problem observed across many disciplines. Yet a fuller understanding of public attitudes towards risk cannot be achieved without knowing how risk perceptions are integrated by the individual in order to calculate an ‘acceptable (tolerable) level of risk’. This requires capturing not just whether the positive aspects of risk outweigh the negatives (risk tolerance), but also the strength of these two aspects (risk intensity). Although we find evidence that risk tolerance reflects dispositional (individual) elements 49 , such as age, gender and parental status, these effects were frequently moderated by situational elements 50 such as product category membership and harm information. In contrast, risk tolerance’s complement ‘risk intensity’ reflected more individual characteristics. Although not tested in this research, we would also expect other contextual factors such as social trust to influence an individual’s perceived risk tolerance, given that social trust has previously been strongly correlated with risk perceptions 51 , 52 , 53 . Of particular note is the fact that both risk tolerance and risk intensity predicted likelihood of risk communication. Given that in the absence of in-depth knowledge or direct experience, we are reliant on mediated information from others 24 , 54 , this has the potential to lead to further risk dissemination and thus potentially risk amplification 55 .

We specifically sought to use a domain general measure of risk propensity 20 given domain specific measures did not exist for product safety, and existing measures (e.g. those developed for financial or health domains) were not neatly applicable. Our findings regarding risk propensity were seemingly inconsistent – higher levels of risk propensity were predictive of higher dread (Study 1) and high likelihood of seeking information and sharing risk information with personal and impersonal sources (Study 1), yet also predicted higher levels of risk tolerance post harm information (Study 2). It is often assumed that a willingness to take risks (high risk propensity) necessarily entails low levels of perceived risk, though our results indicate that the two are independent. One possibility is that rather than capturing the likelihood of taking risks, the risk propensity measure captures experience of risks, whereby a high risk propensity means that only very extreme risks are perceived as risky. In the current research, the risks highlighted were far from extreme, limiting the relevance of the measure. Another possibility is that those higher in risk propensity are simply more accepting of risks, as supported by the predictive relationship seen for risk tolerance shown in Study 2.

The role of social processes in the formation and maintenance of risk perceptions has previously been considered within the literature, but typically examining only perceived risk as a predictor, and for one or two particular sources. For instance, greater severity or perceived risk is linked with increased information seeking 56 , 57 , a finding most recently exemplified during the Covid-19 pandemic, where greater risk perceptions were associated with increased information search across social media, broadcast media and other individuals (e.g. 58 ). Here, we extended this research to examine how individual characteristics might also contribute to which sources individuals are likely to seek information from and communicate risk to, (independent of information insufficiency and risk perceptions, thus considering a more direct relationship than in the risk information seeking and processing [RISP] model 57 . Crucially, both demographics (e.g. age, gender, parental status) and risk propensity were consistent predictors of likelihood of these social interactions, which has implications for how expert sources disseminate information about risk. The implications of these findings are first that, given increased homophily in social networks, differences in risk perception between groups of people may be amplified. And second, rather than taking a one size fits all approach to risk communication, our results indicate that such communications will be more effective when they are tailored to certain groups of individuals (for instance males/younger generations), given they show reduced intentions to seek and/or share risk information.

We investigated consumer risk perceptions solely in participants from the United Kingdom using the online platform Prolific Academic 59 . Whilst in the first study, the sample was nationally representative in terms of age, gender and ethnicity, participation online generally means that participants are from relatively highly educated, higher socio-economic status groups. As a result, our study might be argued to predominantly reflect individual experiences of those from WEIRD (Western, educated, industrialised, rich and democratic) societies 60 . This should be born in mind when interpreting the results, especially those concerning the influence of cultural worldview, given that by definition WEIRD societies reflect a particular type of culture. Indeed, the cultural cognition thesis has been criticised for primarily focusing on ‘American’ culture 61 , neglecting to consider cross-cultural differences.

Whilst we believe that the current work moves us closer towards a more comprehensive understanding of risk perceptions, we do not claim to have explained the full complexities of risk perceptions with the ICONS framework. There was a limit to how much we could measure the richness of differences between individuals, and thus we focused on factors identified from previous risk theories as potentially influential. In addition, by focusing on individuals, our current data cannot speak to how the factors which shape risk perceptions will unfold at a wider, population level. Our future work using agent-based modelling seeks to investigate how individual level processes give rise to population level effects, enabling us to test theories such as the social amplification of risk 36 .

Nevertheless, we see this study as the start of an ambitious, more holistic approach to risk, which can be built upon. For too long, risk research has tended to narrow its focus and not made the most of the wealth of findings derived from different approaches, nor the additional insights that can be gained from considering the functionality of risk (i.e. in terms of risk tolerance). We firmly believe integrating these perspectives will greatly advance the field, and pay dividends to the development of more effective risk management and communication strategies.

Participants

In Study 1, a nationally representative United Kingdom sample (on the basis of age, gender and ethnicity) of 1005 participants was recruited from the online participant platform Prolific Academic ( www.prolific.ac ) and in Study 2, a sample of 3360 participants (balanced across sex) were recruited from Prolific Academic. For both studies, participants were required to be over 18, in order to meet ethical requirements. Participants were paid commensurate with time taken to complete the study, £3.25 – approximately £8 per hour (Study 1), £0.80 – £7 per hour (Study 2). Participants were excluded for completing the studies unreasonably quickly (< 12 min [Study 1], < 3.5 min [Study 2]) or if their responses for any of the products had a SD < 0.5 (Study 1). For final sample characteristics, see Table 2 . Informed consent was obtained from all participants. Ethical approval was granted from Department of Psychology (Royal Holloway, University of London) for all studies within the manuscript. All methods were carried out in accordance with relevant guidelines and regulations.

We selected fifty-four products from a combination of previous literature and those identified by the Office for Product Safety and Standards [OPSS] as of particular interest for research. OPSS is the UK’s national regulator for product safety and standards, which forms part of the Department of Business and Trade. These products were of interest to OPSS for a range of reasons, including: topicality (e.g. relating to COVID-19 – e.g. UV light sanitisers), a lack of existing knowledge/understanding (e.g. electric scooters), frequency of injury relating to product (e.g. button batteries), electrical safety (e.g. USB chargers) and potential for risk from misuse (e.g. balcony barbeques). Each product was presented with a short descriptive sentence to provide context, though no mention of associated risks or benefits was made. These sentences were developed using the Delphi method (OPSS regulators and experts) and in reference to existing research. For the full list of products and associated descriptions, see Supplementary Materials 1 .

Six products (see Table 3 ) were selected according to (a) their scores on the three components identified in Study 1, equivalent to one high and one low scoring product for each component (b) their main purpose categorisation identified in Study 1B, equivalent to three leisure products and three household products. These products were presented either in the context of buying online or on the high street. Product harm information was presented as either being caused by: non-compliance, or the user, and happening to: an unknown other, or a friend (see Table 3 ). All conditions were manipulated between participants.

Both studies were run using the Qualtrics online survey platform ( www.qualtrics.com ). Before beginning the main study, participants were asked a series of demographic questions. They were asked to indicate: gender (male/female/other – please specify/prefer not to say); age, ethnicity (White, Mixed, Asian, Black and Other/Prefer not to say) and if they have children under the age of 18 (Yes – aged between 0 and 10/Yes – aged between 11 and 18/No/Prefer not to say). They were also asked for their Prolific ID, used for payment and then completed a captcha question.

Participants were randomly presented with nine of the fifty-four products to rate. Each product was rated on a series of 11 risk characteristics, using a 7-point Likert scale (as used previously in Refs. 58 , 59 . Risk characteristics were primarily selected on the basis of their use in previous psychometric studies of consumer products 62 , 63 , 64 , 65 , 66 . The complete list of characteristics and response scales can be found in Table 4 , with a comparable number of characteristics to those in Wogalter et al. 62 and a similar length questionnaire to that used by Feng et al. 67 . To reduce the likelihood of participants simply clicking through without reading the questions, the next page button only appeared after 25 s.

On the next page, participants responded to three questions. They were presented with a list of sources (Friends/ peers/ family; news media [TV/radio/newspaper/news websites]; social media [Twitter/Facebook/Instagram/ Mumsnet/YouTube etc. and user review websites]; retailer/manufacturer websites and consumer group/Government) and asked to rate the likelihood of (a) consulting the sources if they wanted to know more information about the product and (b/c) communicating with the sources if heard about/experienced a safety related issue concerning the product, measured on a scale from ‘Not at all likely’ to ‘Extremely likely’ (see Table 5 for precise options) . Participants were finally asked to give an overall hazard rating for each product (“How hazardous do you consider this product to be?” rated on a 7 point scale, from ‘Not at all hazardous’ to ‘Extremely hazardous’ 66 .

After rating all nine products, and giving ratings on sources and the genral hazard question, participants completed the General Risk Propensity Scale 20 – an eight-item scale of risk propensity (see Table 6 ) as well as a shortened, amended version of the Cultural Cognition Worldview Scale 68 (see Table 7 ). Finally, participants were thanked, debriefed, and given a code to claim their payment.

Participants were asked to imagine that they were considering purchasing a product at a fictional retailer, either online or in a high street shop. After reading the product purchase scenario, they rated the product on five characteristics, using a 7-point Likert scale (as used previously in Refs. 58 , 59 ). The complete list of characteristics and response scales can be found in Table 8 . To reduce the likelihood of participants simply clicking through without reading the questions, the next page button only appeared after 25 s. On the next page, they were informed that the product had caused harm (either as a result of non-compliance [i.e. not compliant with the safety and standards set by the regulator] or the user’s actions), based on harms identified in existing ‘Product Safety Reports’ 69 and ‘Product Recalls and Safety Notices’ 70 (see Table 3 ). The harm was stated as having been encountered by an external other, or friend, and then the participant was asked to re-rate the product on the five characteristics. Following this, they gave responsibility judgements for each agent and indicated how likely they would be to communicate this risk to various recipients (see Table 9 ).

Finally participants completed the General Risk Propensity Scale 20 – an eight-item scale of risk propensity (see Table 6 ), as well as a shortened, amended version of the Cultural Cognition Worldview Scale 68 (see Table 7 ). Participants were then thanked, debriefed, and given a code to claim their payment.

Data availability

All materials and raw data are available at https://osf.io/jskg3/?view_only=424a15c7cc1a493d9ba2975d3704ec9d .

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Differences and common ground in the frameworks of health-related quality of life in traditional Chinese medicine and modern medicine: a systematic review

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• Yifan Ding   ORCID: orcid.org/0009-0006-8112-628X 1 ,
• Zhuxin Mao 2 ,
• Nan Luo 3 ,
• Zhihao Yang 4 &
• Jan Busschbach 1  

This systematic review aims to explore the conceptualization of health-related quality of life (HRQoL) in China. With HRQoL influenced by both modern medicine (MM) and traditional Chinese medicine (TCM), the study seeks to identify differences and common ground between the frameworks of MM and TCM as defined in the literature.

A systematic literature search was conducted across three Chinese databases and four English databases. The data was extracted including title, author(s), publication year, region, aim, method, category, and result. When sorting data, we broke down the HRQoL frameworks into concepts, domains and facets, with a focus on overlapped facets between the frameworks of MM and TCM.

A total of 31 studies were included. In the perspective of TCM, HRQoL is centered around three key 'concepts': (1) 'xingshentongyi' (unity of body and spirit), (2) 'tianrenheyi' (harmony between man and nature), and (3) 'qiqing' (seven emotional forms). In contrast, the MM framework comprises 'physical,' 'mental,' 'social,' and 'environment' domains. Out of the 59 unique facets identified, 28 are common to both TCM and MM, 9 specific to TCM, and 22 specific to MM. 'Appetite,' 'sleep,' and 'energy' are the most frequently mentioned facets in both frameworks.

The concept of HRQoL in China encompasses frameworks rooted in both TCM and MM. While TCM and MM have distinct healthcare approaches, they share overlapping domains when measuring HRQoL through questionnaires. Furthermore, TCM and MM demonstrate considerable convergence in terms of HRQoL facets, showing the potential for utilizing HRQoL instruments across different cultural settings.

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Plain English summary

Health-related quality of life (HRQoL) is about how people perceive their own health. The instruments used to measure it, even in China, are mostly devised in the West. However, it is increasingly understood that cultural distinctions might impact how we understand HRQoL, causing doubts about whether Western tools accurately represent this concept. This suggests that instruments created in the West might not fully grasp the health experiences of people in China, considering their unique cultural background. This systematic review study tries to understand from the literature how Chinese people think about HRQoL. It found two different ways of thinking about it: one based on modern medicine and the other on traditional Chinese medicine. Surprisingly, these ways of thinking lead to similar ideas about HRQoL. This study demonstrates the adaptability of HRQoL instruments across cultural settings with minimal adjustments. This challenging the notion that diverse cultures yield entirely distinct perspectives on HRQoL.

Introduction

Health-related quality of life (HRQoL) is a multi-dimensional concept. Despite the challenge of defining HRQoL, there is a broad consensus that HRQoL focuses on revealing people’s subjective evaluation of health [ 1 , 2 , 3 , 4 ]. Obtaining HRQoL information is crucial for comprehending patient health, making informed medical decisions [ 5 , 6 ], evaluating healthcare interventions, guiding public health policies, and ultimately contributing to evidence-based medicine [ 7 , 8 , 9 ]. Some HRQoL outcomes are preference-based, informing decisions on health products, technologies, and policies through QALY calculations [ 7 ]. Note that in this paper, we focus on HRQoL, rather than quality of life (QoL) in general.

The way we conceptualize HRQoL determines the specific health facets that we include in HRQoL measurements. To ensure valid and reliable HRQoL observations, standardized instruments are utilized. However, the recognition of cultural influences on HRQoL conceptualization has led to discussions about the suitability of Western-developed HRQoL measures in China [ 10 , 11 ]. Specifically, when Western instruments, grounded in a distinct cultural context, are applied to measure HRQoL in China, dimensions important to the Chinese population's understanding of health might be overlooked or not accurately captured. This misalignment can lead to an incomplete representation of the true HRQoL experienced by Chinese individuals [ 12 ].

For example, Prior et al. found that participants from Cantonese-speaking communities in England described HRQoL using facets related to traditional Chinese medicine (TCM), such as ‘demons’, ‘food’, and ‘weather’, alongside common Western facets [ 13 ]. Similarly, a Q-methodological study emphasized the importance of 'spirits' and 'body constitution' in describing HRQoL among Chinese living in China, which were often absent in commonly used instruments [ 11 ]. Additionally, Mao et al. compared Western and Chinese-developed HRQoL instruments and identified exclusive HRQoL domains in China, including ‘emotion control’, ‘weather adaption’, ‘social adaption’, ‘spirit’, and ‘complexion’ [ 8 ]. These new aspects of Chinese HRQoL appear to be linked to TCM, indicating that TCM could influence how people perceive and describe HRQoL. Alternatively, it's possible that the Chinese perspective on HRQoL shapes practices within TCM. Thus, it can be argued that Western-developed instruments may inadequately capture the health experiences of Chinese populations within their cultural context, for instance in neglecting the influence of TCM [ 8 , 10 , 14 ]. Consequently, using Western-developed HRQoL instruments to assess HRQoL in Chinese populations may not yield optimal results if there are conceptual differences between Western and Chinese perspectives [ 10 , 12 ].

Despite debates regarding the applicability of Western HRQoL instruments, the influence of culture on HRQoL conceptualization and instrument development remains unclear [ 15 ]. In China, efforts have been made by the scientific community to define HRQoL within a Chinese cultural context and use it to guide instrument development. However, there has been no systematic assessment, comparison, or synthesis of these Chinese-specific definitions or instruments. Consequently, it is still unclear how HRQoL is defined in China, and how these ‘Chinese definitions’ differ from those used in imported HRQoL instruments. This study aims to systematically review published studies that describe the theoretical and operationalised conceptualization of HRQoL. The objective is to explore and synthesize perceptions of HRQoL within a Chinese cultural setting.

This systematic review followed the guideline of Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) [ 16 ], including the following four parts: search strategy, identification and selection, data extraction and quality assessment.

Search strategy and inclusion criteria

A comprehensive search was conducted across three Chinese databases (CNKI, Weipu, and Wanfang) and four English databases (EMBASE, MEDLINE, Web of Science, and Cochrane), in addition to a restricted search on Google Scholar. We applied specific inclusion criteria: (a) reporting HRQoL measures developed in a Chinese cultural setting; (b) discussing the definition of HRQoL in Chinese cultural setting or constructing a conceptual framework of HRQoL specifically to Chinese culture; (c) qualitative interviews exploring Chinese people's understandings of HRQoL. We excluded articles focusing on Western-based perspectives of HRQoL.

Both of detailed Chinese and English search strategies were presented in the Appendix 1 . The Chinese search strategy was developed through an internal discussion between the four Chinese researchers in team. When formulating the English strategy, we sought professional assistance from the librarians at Erasmus MC, followed by a discussion within the entire research team. To ensure a comprehensive search, we took into account potential spelling errors and synonyms when formulating the search strategies, as can be seen in the search strategies presented in the Appendix 1 .

Identification, selection and exclusion criteria

The research team reviewed all types of publications including original research, reviews, commentaries and dissertations. However, conference reports were excluded due to their potential lack of rigor and incomplete data. There were no constraints based on publication date other than the specified end date (March 3rd, 2022).

Two bilingual reviewers (YD and ZM) reviewed the titles and abstracts, applying the following exclusion criteria: (a) studies focused on a specific disease; (b) studies focused on a particular population (e.g., elderly or specific region); (c) studies utilizing existing instruments such as SF-36, EQ-5D, etc.; (d) studies focused on other constructs (e.g., happiness, well-being, life satisfaction); (e) studies focused on the target population which is not Chinese. Any disagreements between the reviewers were resolved through internal team discussions (ZM, ZY, and NL). The first author (YD) then conducted independent reviews of the resulting full-text articles. In cases where YD had doubts regarding the eligibility of a paper, the doubts were discussed with the review team. The review team consisted of one member with methodological expertise (ZM) and two individuals well-versed in the topic (ZY and NL). If disagreements persisted, they were resolved through consensus, but in case a consensus was not reached, an external opinion (JB) was sought.

Data extraction and analysis

According to the searching results, the key information of all eligible studies was extracted including the title, author, publish year, region, study aim, methods, and results (see Appendix 2 ). After reviewing, all eligible articles were categorized into two groups based on their content: definition and framework. The definition category focused on providing a general definition of HRQoL, while the framework category presented a detailed hierarchical system organizing specific health facets into health domains, and further grouped into health concepts. The category of each paper is documented in Appendix 2 . In the “ Results ” section, we extracted specific definitions from papers focusing on the general definition. For those paper that focused on the frameworks, we outlined the main hierarchical structure of domains and concepts. The specific facets for each instrument were documented in Appendix 3 .

This review aimed to synthesize the conceptualization of HRQoL, both theoretically (narrative definition) and operationally (HRQoL instrument presentation). In our approach to HRQoL frameworks, we employed a four-level hierarchy, which included concepts (the first level), domains (the second level), facets (the third level), and items (the fourth level). 'Concepts' represent the higher-order theoretical components of the theory, while 'domains' are the second-order aspects defined using 'items.' Given that closely related items may have different wording (e.g., walking, mobility, movement), we grouped similar items under the term 'facets'. In this study, we looked for the overlap in facets between MM and TCM. However, during the analysis process, we observed that some studies presented HRQoL from a TCM perspective, while others did not. These two perspectives resulted in two distinct conceptual frameworks (see “ Results ” section, Figs.  3 and 4 ).

For studies focusing on a general definition of HRQoL, frequently-mentioned health concepts (sometimes also health domains) were extracted. For studies providing detailed descriptive system, all specific facets were extracted. The extracted facets (see Appendix 3 ) were grouped by the reviewers, and the frequency of each facet was recorded (see Appendix 4 ). During the grouping process, we referred to the existing categories of descriptive systems as found in papers because most of them were already grouped by the designers of frameworks or instruments. If facets were classified into different groups in different frameworks or instruments, we made the classification after discussions within the review team. The grouping was independently conducted by two reviewers (YD and ZM), and any inconsistencies were resolved through internal team discussions.

Quality assessment

Normally, quality assessment for eligible studies is essential to a systematic review. However, after internal discussion, we opted not to conduct such an assessment in this review for maximizing the inclusion of studies. We were concerned that performing a quality assessment might inadvertently exclude relevant studies, resulting in the loss of valuable information. Nevertheless, the paper clearly written outside the scientific domain was excluded. These were articles that lacked 'scientific' jargon and failed to provide sufficient literature references to support the claims made in the article. For instance, it was found that a paper titled '20 New Concepts of Healthy Living,' which appeared more like a glossy magazine article than a scholarly contribution. As a result, such articles were considered unsuitable for inclusion in our study.

After removing duplicates, a total of 6437 English articles and 6169 Chinese articles were identified through database searches. Following title and abstract screening, 33 English studies and 87 Chinese studies remained. Full-text selection further reduced the number to 6 English articles and 25 Chinese articles. The detailed information of the included paper was provided in Appendix 2 . The selection process was illustrated in Figs.  1 and 2 of the PRISMA flow charts.

PRISMA flow diagram (English database)

PRISMA flow diagram (Chinese database)

During full-text review, the 31 included papers were primarily divided into two categories: focusing on general definitions of HRQoL and frameworks of HRQoL. Among them, 14 papers focus on providing a general definition of HRQoL, 11 papers delve into HRQoL frameworks, while 6 papers contain information pertaining to both the general definition and the framework. Additionally, a distinction was made between studies based on TCM perspectives and those using the perspective of modern medicine (MM). The categorization of each paper was provided in Appendix 2 .

The perspective of TCM on HRQoL

Based on the included papers focusing on general definition, we found that these papers introduced the foundational theory of TCM, which not only supplied potential corroborative evidence for TCM framework but also laid the foundation upon which TCM framework was developed.

The notion of 'Yin Yang' theory emerged most prominently as the foundational principle of TCM [ 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 ]. Additionally, the notion of 'Ping ren' [ 21 , 22 , 27 , 28 , 29 , 30 , 31 , 32 ] and 'He' [ 33 , 34 ] were also highlighted as the basis principle of TCM. The meanings of these principles are as follows. According to TCM, everything in the universe can be divided into two opposite but interconnected forces: Yin and Yang. For instance, the earth represents Yin, while the sky represents Yang, reflecting a universal concept. Specifically for human, the spirit is considered Yin, while the body is considered Yang. Health is believed to arise from the balance between Yin and Yang, both internally and within the surrounding environment. Additionally, individuals' health is influenced by the balance between different materials and the harmony between their 'Yin essence' and 'Yang spirit' [ 20 ].

Under the guidance of the general 'Yin Yang' theory, the most recognized definition of health is 'Ping ren' [ 21 , 22 , 27 , 28 , 29 , 30 , 31 , 32 ], which refers to a person in a healthy state with harmonious blood circulation, calm breathing, and steady pulse. TCM practitioners commonly view these indicators as signs of good health [ 19 , 22 , 24 ]. The concept of 'Yin Yang' aligns with another related phrase, 'He,' which emphasizes ‘harmony’ as the essence of health. 'He' represents the harmony between ‘Qi’ (energy in the broadest sense possible) and blood (important indicators of physical health in TCM) and the harmony of the spirit (associated with mental and emotional well-being). Both 'Yin Yang' and 'He' reflect characteristic philosophical thoughts in Chinese traditional culture [ 26 , 30 ].

In the identified studies, the three most commonly used concepts under the 'Yin Yang' theory for defining and measuring health were as follows: ‘Xing Shen Tong Yi'(形神统一) [ 17 , 18 , 19 , 20 , 22 , 25 , 26 , 27 , 31 , 33 , 35 , 36 , 37 ], 'Tian Ren He Yi'(天人合一) [ 17 , 19 , 20 , 22 , 25 , 26 , 27 , 28 , 35 , 37 , 38 ] and 'Qi Qing'(七情) [ 17 , 25 , 27 , 36 , 37 ].

Xing Shen Tong Yi

'Xing Shen Tong Yi' means the unity of body and spirit, which can be specifically divided into two domains: 'xing' and 'shen'. The 'xing' domain refers to the body structure, such as the viscera, meridians, essence, blood, muscles, limbs, and bones [ 19 ], focusing on physical health. By summarizing the included studies, the following facets were identified: stamina, sleep, appetite and digestion, complexion, stool, mobility, self-care, discomfort, pain, urination, voice, and constitution. These indicators can be used to confirm whether a person is physically healthy or not.

The 'Shen' domain has a broader meaning, which refers to both the gods of nature (i.e. natural phenomena and laws) and the mental state of the human body (i.e. emotions, will, personality, memory, and perception) [ 22 ]. By summarizing the included studies, the following facets were identified: thinking, verbal expression, consciousness, spirit of the eyes, memory, concentration, fatigue, confidence, and satisfaction. 'Xing Shen Tong Yi' also reflects the basic view of holism in TCM that people are an organic integrity, and that the body and mind are closely interdependent [ 20 ].

Tian Ren He Yi

TCM emphasizes the unity of the human body and its relationship with the external environment [ 17 , 27 ]. 'Tian Ren He Yi' emphasizes the harmony between humans and environment [ 17 , 20 , 35 ], which can be divided into two domains: natural environment and social environment.

In the 'natural environment' domain, TCM highlights the interconnectedness between humans and nature. Any changes or movements in nature will directly or indirectly affect the human body, such as seasonal climate changes, regional differences, leading to physiological discomfort or pathological changes [ 17 ]. This domain encompasses two facets: climate adaptation and adjustment, as well as dwelling conditions.

In the 'social environment' domain, TCM recognizes that humans are not only part of nature but also part of society. Health is influenced by various social factors, including political, economic, cultural, marriage, and interpersonal aspects. These factors will affect people's emotional changes, which can further impact the health of human. Common facets in this domain include socialization (e.g., communication, sex life, and loneliness), family (including family relationships, support, and conflicts), work (including relationships with colleagues and work performance), and economic conditions [ 39 ].

The concept of 'Tian Ren He Yi' is the direct embodiment of the relationship between human and environment. People's adaptation to the external environment is also the external embodiment of human health. Maintaining harmony between humans and the natural environment is of great importance [ 19 , 20 , 35 ].

In TCM, the concept of 'Qi Qing' refers to the seven basic emotions: joy, anger, worry, pensiveness, grief, fear, and anxiety [ 17 ]. According to TCM, these emotions are closely linked to the five internal organs to our body: heart, liver, spleen, lung, and kidney [ 36 , 37 ]. Each emotion corresponds to a specific organ, and when emotions become intense or unstable, they can disrupt the balance of ‘Qi’ (energy in the broadest sense possible) and blood, leading to physical problems. For example, anger affects the liver, joy affects the heart, pensiveness affects the spleen, worry affects the lung, and fear affects the kidney [ 17 ]. Therefore, maintaining emotional stability is essential for overall health and proper organ functioning.

Additionally, some of the definitions of HRQoL mentioned in the eligible studies may not fall within the purview of 'Yin Yang'. For instance, Confucianism emphasizes positive attitude and family relationships [ 18 , 22 ], as well as the concept of ‘moderation’ to maintain a healthy state [ 22 ]. Taoism highlights conforming to nature and maintaining peace of mind without overthinking [ 22 , 30 , 31 , 40 ]. Buddhism places importance on virtue and the theory of karma, where good behavior leads to positive outcomes, including physical health and mental satisfaction [ 18 , 22 ].

MM framework

From MM's perspective, two definitions were discussed. Firstly, one study adopted the definition from 'Ci Hai,' an authoritative Chinese dictionary [ 35 ]: ‘The state of well-developed organs and systems, normal functions, strong physique, full of energy, and high labor efficiency, which are usually measured through physical examination and various physiological indicators’ [ 41 ]. Secondly, most studies on HRQoL were based on the World Health Organization's (WHO) definition of ‘health’ [ 10 , 18 , 19 ]: ‘health is a complete state of physical, mental, and social well-being, not simply the absence of disease or infirmity’ [ 42 ]. The WHO definition of ‘health’ was not only used in defining HRQoL but also incorporated into the development of HRQoL instruments. Most studies defined HRQoL using the following three concepts: physical health, mental health, and social health, with some suggesting modifications. In the Chinese context, the concept of 'environment' such as dwelling conditions and changes in climate may be added [ 18 , 21 , 22 , 23 , 38 ]. The detailed framework results are shown in Figs.  3 and 4 .

Traditional Chinese medicine framework

Modern medicine framework

Physical health

The concept of 'physical health' can be divided into two domains: 'physical function' and 'physical senses'. In the domain of ‘physical function’, researchers focus on basic functions of body, such as appetite, sleep, mobility, daily activities, self-care, vision, hearing, body constitution, physical exercise, recreational activities, and heavy physical work. In the domain of ‘physical senses’, attention is given to discomfort, pain, and disease, reflected in facets such as pain, fatigue or tiredness, energy or vitality, body weight, dependence on medication, discomfort, complexion, body strength, and family medical history.

Mental health

'Mental health' consists of three domains: emotional experiences, mind-frame, and cognitive functions. In the domain of ‘emotional experiences’, common facets include depression, stress, anxiety, regularity in daily life, sex life, loneliness, worry, anger, fear, happy mood, no worry, and no pressure. The ‘mind-frame’ domain encompasses facets like self-confidence, morality, positive attitude, peace, breadth of mind, and sense of life satisfaction. Lastly, the ‘cognitive function’ domain includes facets such as memory, concentration ability, sharp mind, clear mind, decision-making ability, and thinking ability.

Social health

'Social health' can be divided into three domains: interpersonal relationships, work or school, and economic condition. ‘Interpersonal relationships’ emphasize the ability to communication with others and the adaptability to the environment. It includes the following facets: social interactions, good relationships and communications with others (e.g. friends, family and colleagues), social support, adaptability to social environment and burdens to others. The ‘work or school’ domain concerns task completion and performance in studies or job. Additionally, ‘economic conditions’ are also a crucial component of overall mental health.

Environment

Apart from the three fundamental WHO health concepts, namely physical, mental, and social health, the concept of 'environment' has also been recognized as an important factor in the included studies [ 18 , 21 , 22 , 23 , 38 ]. This domain encompasses the ability to adapt to changes in weather and living conditions.

Overlap between TCM and MM

Both TCM and MM break down their concepts of HRQoL into 'domains', as depicted in Figs.  3 and 4 . These domains demonstrate significant overlap between TCM and MM perspectives. They encompass intrapersonal (such as physical and emotional aspects) and interpersonal domains (such as relationships and work).

When these domains are operationalized into survey questions, the resulting 'facets' further reveal the similarities between TCM and MM. Figure  5 illustrates that many facets share common wording. Among the 59 facets identified, 28 were addressed in both TCM and MM, 9 were specific to TCM, and 22 were specific to MM. Among the shared facets, we found that 'appetite', 'sleep' and 'energy' were the most frequently mentioned facets in both frameworks.

Intersection diagram of the facets of TCM and the MM frameworks

This paper aims to explore and synthesize perceptions of HRQoL within a Chinese cultural setting. Our systematic review of relevant research reveals that two distinct perspectives existed in defining the conceptual frameworks of HRQoL in China: TCM and MM. To provide a comprehensive overview of these perspectives, we summarized the conceptual frameworks of both perspectives.

Firstly, it is challenging to define HRQoL. Mayo et al. proposed distinguishing between QoL and HRQoL [ 43 ]. However, Chinese studies often use the WHO's definition of 'health' instead of Mayo's HRQoL definition. The Chinese studies used the WHO’s definition of 'health' for defining HRQoL and also used the WHO definition of 'health' for the development of HRQoL instruments [ 10 , 18 , 19 ]. Meanwhile, examining HRQoL from TCM perspective reveals a focus on broader QoL aspects. TCM's emphasis on 'a balance between oneself and the environment' relates more to QoL than the narrow 'impact of disease and treatment' in the HRQoL definition from Mayo.

The two frameworks exhibit certain differences. On the level of concepts, TCM takes a holistic view, emphasizing the interconnectedness and interaction between body and mind, while MM does not. TCM framework uses terms like 'unity' and 'harmony' to underscore this holistic perspective and interaction, considering the inseparability of body and spirit [ 34 ]. By contrast, MM seems to be influenced by the theory of 'mind–body dualism,' separating the mind and body. According to the MM framework, individuals consist of two separate substances: body and mind, which can be described independently. As a result of these fundamental differences, the descriptions of HRQoL from these two frameworks consistently differ. Notably, though the HRQoL conceptual framework of TCM emphasizes the unity of health, instruments developed based on this conceptual framework often do not fully capture this unity. For instance, the Chinese Medicine Quality of Life-11 Dimensions (CQ-11D) emphasizes the unity of body and spirit but it still measures ‘body and ‘mind’ as two independent dimensions [ 33 ]. Therefore, we have observed that the idea of 'holistic' is difficult to embody in TCM instruments. This can be seen in Fig.  3 .

Differences in specific facets describing HRQoL are also evident (Fig.  5 ). The TCM framework incorporates unique diagnostic indicators, many of which are specific to TCM-related 'symptoms' such as 'defecation' and 'spirit of eyes'. In contrast, MM focuses on measurable physical phenomena like 'vision' and 'weight'. Our analysis highlights two main reasons for these differences. Firstly, TCM places emphasis on 'image thinking' [ 44 , 45 ], which involves intuitively grasping the abstract meaning of the world and its universal connections through intuition, metaphor, symbol, association, and analogy [ 45 , 46 , 47 ]. TCM employs various 'images,' such as tongue image, pulse image, and syndrome image [ 47 ]. Based on this idea, TCM generally collects patients' symptoms through ‘making observations, listening to breathing, asking about symptoms and taking the pulse (the four fundamental methods for diagnosis in TCM)’ for analysis and syndrome differentiation. However, MM focuses on analysing pathological mechanisms using objective and measurable examination results [ 48 ]. Secondly, the discrepancy in specific facets is related to a well-accepted concept known as sub-health, which refers to a state between illness and health [ 49 , 50 ]. Sub-health is characterized by experiencing different types of symptoms, both physical (e.g., pain, discomfort, fatigue) and mental (e.g., negative emotions, poor memory, inattention), for more than three months without any clear clinical attribution [ 51 , 52 ]. In MM, there is no specific diagnose for such health status specific diseases when individuals experience prolonged fatigue despite normal clinical indicators. However, TCM theories have significantly contributed to the widespread recognition and acceptance of the sub-health concept.

Despite some differences, these two conceptual frameworks also share similarities. As mentioned before, while each framework has its unique facets, there is a significant overlap between them, as shown in the middle section of Fig.  5 . This overlap may be inherent to TCM and MM, but can also be the result ‘borrowing’ aspect of TCM into MM and vice versa. The integration of these two frameworks can be observed in Fig.  5 . MM also acknowledges the interconnectedness and interaction of body and mind when considering HRQoL. For instance, in the MM framework, there are facets that resemble TCM facets, such as 'complexion', 'energy', and 'constitution'. Similarly, in the TCM framework, facets emphasized by MM seem to be borrowed, like 'self-care' and 'mobility'. Among the shared facets, we found that 'appetite', 'sleep' and 'energy' were the most frequently mentioned facets in both frameworks. These can be considered vital elements in how people in China define HRQoL. The importance of 'appetite' can be attributed to various factors, including China’s historical experiences with varying food supply and the social aspect of eating [ 53 ]. For example, sharing meals serves as a common way for people to establish and express connections with one another in China. Additionally, 'sleep' was also recognized as an essential facet in most HRQoL instruments within the Chinese cultural setting. TCM regards 'sleep' as crucial for well-being and preventing illness [ 54 , 55 , 56 ]. Compared to TCM, MM only recently acknowledges that sleep is vital for cognitive function, emotion, memory, endocrine balance, and immunity [ 57 ]. Furthermore, 'energy' was also frequently mentioned and covered by the two frameworks. In Chinese culture, 'energy' is closely related to the concept of 'Qi' (also spelled chi) in TCM [ 58 , 59 ]. Qi is believed to exist in all things, including air, water, food, and sunlight, and is often translated as 'vital energy'—a fundamental substance that builds and sustains the body [ 60 ]. Furthermore, it is important to recognize that concepts from two types of frameworks are divided into 'domains', and these domains exhibit considerable overlap (Figs.  3 , 4 ). These figures demonstrate that both frameworks describe HRQoL from four aspects: physical, mental, social, and adaptability to the natural environment. Although the theoretical basis and classification of the two frameworks may differ, the content is quite similar.

Although there are many overlapping facets between two frameworks, we still chose to describe HRQoL using two separate frameworks rather than combining them into one in this article. There are three main reasons: firstly, the original intention was to provide a comprehensive understanding of HRQoL in Chinese cultural. After a systematic literature review and content classification, we found that presenting two conceptual frameworks from different perspectives better represents the definition of HRQoL in China. Secondly, both frameworks have unique facets that cannot be merged. TCM includes facets such as 'urinate', 'stool', and 'spirit of eye', whereas the MM-based framework includes 'body weight', 'dependence on medication', and 'burdens to others'. Thirdly, even for overlapping facets, they have different classifications in each framework due to distinct theories. For example, 'emotions' holds different positions in the two frameworks. In TCM, it is considered a 'concept' contributing to overall health, ranked alongside 'the unity of form and spirit' and 'the unity of man and nature'. In MM, 'emotion' is a domain under the concept of 'mental health'. This divergence arises from MM viewing emotions as only a component of mental health, while TCM recognizes that emotions not only affect an individual's mental state but also have specific relationships with different organs in the body. As a result, TCM emphasizes the importance of maintaining emotional stability and avoiding extreme emotions for good health, leading us to list it separately in the TCM framework.

However, it would be beneficial to integrate these frameworks in future research. This integration aligns with the strategy of 'integrating Chinese and modern medicine', which is widely practiced in clinical practice in China. Integrative medicine, with its efficacy and complementary advantages, has emerged as one of the major medical systems alongside MM and TCM [ 61 ]. In Chinese clinical guidelines, it's common to find a combination of conventional disease diagnoses and traditional syndromes. While there are globally recognized standards for diagnosing diseases (such as the International Classification of Diseases, ICD-10), there's also an emphasis on identifying syndromes that reflect traditional Chinese characteristics [ 61 ]. Supported by the government policy, 'integrating Chinese and modern medicine' will continuously be the trend and our results also support this conclusion. It is evident that in the Chinese context, the definition of HRQoL cannot be adequately captured from a single perspective alone. Therefore, future research should aim to integrate the two HRQoL frameworks to provide a more comprehensive understanding.

The conclusion evokes questions whether we need a specific Chinese HRQoL instrument or if existing ones are sufficient. While instruments focused on 'Integrating Chinese and Modern medicine' naturally differ from Western-developed ones, it's important to assess if they truly benefit Chinese researchers internationally. We need to consider if a 'real Chinese HRQoL instrument' would be valuable outside of China, which could potentially devalue research from China and contradict the findings of the present study. Despite China having two well-developed HRQoL concepts, one possibly unique to China, they seem quite similar in terms of their main ideas.

As mentioned in the methods section, a limitation is the absence of a quality evaluation for the included articles. The second limitation is the inherent subjectively in classifying the concepts, domains and facets. In order to address this, we will employ 'concept mapping' in the future to provide a more objective exploration of the overlap in dimensions and facets between MM and TCM. The third limitation is that our research only included the general population and generic questionnaires. Patient-Reported Outcomes (PROs) are often diseases specific, such as cancer [ 62 ], but we were limited in the use of them due to the variance in patient groups, which would in turn impact how HRQoL is defined. However, this does not imply that PROs cannot be investigated. One potential solution could be to categorize specific disease groups. For instance, several authors have examined the applications and characteristics of PRO instruments as primary and secondary outcomes in randomized clinical trials in China [ 63 ], as well as the use of PROs in clinical trials of TCM [ 64 ] to promote and standardize PROs in China.

The present study is the first systematic review summarizing the conception of HRQoL in the Chinese cultural setting. We found two distinct frameworks of HRQoL exist in China, each basing on its own unique theory: MM and TCM, but arriving at some similar concepts, domains and facets.

Data availability

The data supporting the findings of this study are accessible in both the article and its supplementary material.

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Open Access funding enabled and organized by Erasmus Medical Center. This work was funded by EuroQol Foundation, the Netherlands. The study sponsor had no role in the design of the study, data collection, data management, data analysis, data interpretation, and issues regarding the publication of results. Views expressed by the authors in the publication do not necessarily reflect the views of the EuroQol Foundation.

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Ding, Y., Mao, Z., Luo, N. et al. Differences and common ground in the frameworks of health-related quality of life in traditional Chinese medicine and modern medicine: a systematic review. Qual Life Res (2024). https://doi.org/10.1007/s11136-024-03669-1

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How an M.L.S. Can Help in Understanding AI Laws and Regulations

By Miami Law Blog Contributor 05-13-2024

It is beginning to seem inevitable that artificial intelligence (AI) technology will soon be ever-present throughout every imaginable industry. Perhaps this is why we are also seeing a push for more artificial intelligence laws and regulations across the board.

No matter what industry you find yourself in, being well-versed in the legal regulation of artificial intelligence as it relates specifically to your field can pay off. With a solid understanding of how AI laws and regulations are impacting your industry, you can quickly become an authority on the matter while helping your business adapt to regulatory changes as they occur.

The Importance of AI Laws and Regulations

Across the globe, AI laws and regulations are essential to protecting individual consumers and companies alike—especially as the scope of AI use continues to grow and change.

Key Challenges in AI Governance

Of course, regulating a relatively new innovation like artificial intelligence comes with its own challenges. There are numerous obstacles facing AI governance and regulation, including the incredibly rapid pace of AI technology development. Given how quickly this technology is evolving and advancing, regulators are having a hard time crafting legislation readily enough to keep up.

Because of this, many industries are experiencing a higher demand for professionals who have a solid understanding of current industry AI regulations, how they work, and how to advocate for human rights and data privacy in future AI regulations. All of this is covered in the framework of the right Master of Legal Studies (M.L.S.) program.

Five Ways an M.L.S. Prepares You for AI Regulations and Laws

Still wondering whether a Master of Legal Studies degree program is right for you? If you wish to get involved in  AI regulation  and legislation within your field, there are various ways in which an M.L.S. program can prepare you for this type of work.

Understanding the Implications of AI on Ethics and Human Rights

One of the most widely held concerns about AI technology is the potential ethics and human rights issues it brings forth. Creating AI technology that is free from biases or other potential human rights violations is no easy feat, and businesses can be held accountable.

With a better understanding of AI's potential implications for ethics and human rights, professionals across industries can contribute to crafting AI legislation that protects individuals and addresses common ethical concerns.

Familiarizing with Current and Upcoming   AI Laws and Regulations

AI laws and regulations are likely to change over time as the technology itself grows and advances, which is already occurring at a rapid pace. Being involved in the legal regulation of artificial intelligence in any industry will require an in-depth understanding of not just current laws and regulations but also upcoming regulations and changes.

With this level of foundational knowledge provided in an M.L.S. program, students will have the understanding they need to prepare for future changes.

Developing Strategies for Compliance and Risk Management in AI Applications

Depending on the industry in which you work, there is a good chance you have specific regulatory and compliance standards to follow when AI applications are integrated. Likewise, following proper compliance and risk management practices is a must before implementing any type of new AI technology into your line of work.

With the knowledge and experience offered in an M.L.S. program, you can build upon your strategies for compliance and risk management, specifically as they relate to AI applications. From there, you will be better prepared to lead your business into the future without having to worry about compliance issues and their potential consequences.

Compliance with   Data Privacy   Laws and Regulations

Data privacy is a very real concern as AI technology continues expanding. With more data being collected and used than ever before, there is going to be an increased demand for privacy laws and other regulations to protect sensitive data and other consumer information.

In an M.L.S. degree program, you'll learn about the compliance and data privacy laws related to your industry as well as how they apply to specific laws and regulations surrounding artificial intelligence so you can remain in compliance and keep sensitive information secure.

Understanding the Ethical Implications of AI Technology

Across all industries, there are also ethical concerns when it comes to the use of AI technology. From worries about automation bias and decision-making bias to potential issues of misuse and lack of informed consent, professionals need to understand the ethical implications this technology could bring to light.

These topics and more are covered in-depth as part of an M.L.S. program, so you can prepare to avoid common ethical issues in your company's implementation of AI technology and move forward with confidence.

Impact of AI Laws on Various Industries

Artificial intelligence has already begun to play a central part in a variety of industries, including healthcare, financial services, construction, real estate, and many more. This trend is not expected to slow down anytime soon as more industries begin to adopt AI technology.

With all this in mind, it has never been more important for industry professionals to understand AI laws and regulations, particularly as they relate to their respective fields.

Healthcare and AI: Privacy, Ethics, and Compliance

Today, healthcare facilities (including hospitals and smaller practices) are relying on AI for everything from diagnosing diseases to formulating treatment plans and providing telehealth services. As this technology continues to evolve, so will the need for more laws and regulations as they relate to patient data privacy, ethics, and regulatory compliance (especially with HIPAA laws).

As a result, healthcare professionals will be tasked with expanding their own knowledge of emergent laws and regulations that could affect their industry, patients, and practice.

AI in Financial Services: Fraud Prevention and Compliance

Banking and financial services have also begun incorporating more AI technology, particularly when it comes to handling tasks such as data analytics, predictions and forecasting, calculations, and even customer service.

As this industry sees a rise in AI use, concerns may arise over fraud prevention, data privacy, and regulatory compliance. If you are working in the financial services industry, understanding these issues and the regulations surrounding them can help you advance your career and better perform your job.

AI Applications in the Construction Industry

Construction is yet another industry experiencing an increase in the use of AI. There are numerous ways in which AI can benefit the construction industry—offering additional machine learning power, AI-piloted drones, and other solutions that can streamline operations by automating tedious manual tasks.

At the same time, these innovations come with inherent concerns about aspects like construction worker safety and compliance and regulatory standards (including OSHA laws). With the in-depth industry knowledge an M.L.S. program offers, construction industry workers can gain a better understanding of these issues in order to respond and prepare appropriately.

The Intersection of AI Technology and Legal Frameworks 

AI technology does not exist in a bubble; the work that it carries out has critical impacts on every industry it touches, which is why there must be an interaction between AI technology and legal frameworks.

Importance of Legal Frameworks in Addressing AI Ethics

As the adoption of AI technology grows, so does the need for reliable legal frameworks that can be used to draft and adopt laws and regulations that will protect consumers, data, and businesses. Regardless of your industry, understanding the legal frameworks already in place can help you prepare for what lies ahead in your own field.

Global AI Regulations and Their Implications

Around the world, AI regulations are crucial to protecting civil rights, data privacy, and giving consumers peace of mind. Meanwhile, global AI regulations have far-reaching implications.

Overview of AI Laws in Europe

There is much to learn about what the future of AI regulation could look like by observing what Europe is already doing. For example, Europe has already passed an  Artificial Intelligence Act  that effectively bans any AI practices that are deemed unacceptable.

United States' Approach to   AI Regulation

In the United States, there exist very few AI regulations at the federal level. Instead, it appears that much of this will be left up to individual states to decide. Still, many states do have (or are currently working on) their own AI laws and regulations to protect people and businesses. You can read more about state-specific AI laws on  The Council of State Governments website .

How to Prepare for Future Legal Developments in AI 

Only time will tell exactly what the future holds for AI and its regulation across both the U.S. and the globe. However, these impacts will inevitably be felt throughout all industries—and there will likely be a continuing need for industry professionals who can navigate the world of changing artificial intelligence law and regulations with confidence.

Preparing for future legal developments in AI begins with the right legal framework and background, which can be mastered in a comprehensive M.L.S. program. In addition, taking the time to subscribe to industry newsletters and other reputable sources related to AI legislation can help you stay on top of ongoing changes and developments. At the end of the day, it all boils down to committing to a lifetime of learning.

Advance Your Knowledge with an Online M.L.S. Program

A Master of Legal Studies is not just beneficial to those already working in law-adjacent careers. In fact, an M.L.S. degree can provide those in nearly any industry with a more thorough understanding of how the law affects their respective fields. This is especially true as it applies to the growing use of artificial intelligence along with the laws and regulations that are likely to follow.

If you are looking to advance your knowledge of AI laws and regulations within your industry, an  online Master of Legal Studies  degree program from the University of Miami School of Law can help you do just that. Learn more about our  M.L.S. online curriculum , including our law and tech tracks, which can help you elevate your career to new heights. From there, you may  request more information  or get started with your online  application .

https://www.alston.com/en/insights/publications/2022/12/ai-regulation-in-the-us

https://www.bcg.com/publications/2023/how-to-prepare-for-ai-regulation

https://www.europarl.europa.eu/news/en/press-room/20240308IPR19015/artificial-intelligence-act-meps-adopt-landmark-law

https://www.csg.org/2023/12/06/artificial-intelligence-in-the-states-emerging-legislation/

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