Lesson 1 of 8 · Consulting frameworks
Look outside: PEST and five forces
Why consultants use frameworks
A framework is a simple structure that makes sure you look at a problem from every side. In this course you learn the classic ones, starting with the world outside the organisation.
PEST: the big forces around you
Four kinds of change no single organisation controls.
Five forces: how attractive is the industry?
The stronger the forces, the harder it is to make a profit.
What makes a force strong?
Tap each card to open it.
1New entrants
Strong when starting is cheap, there are no licences and brands matter little.
2Suppliers
Strong when there are few of them and changing supplier is costly.
3Buyers
Strong when a few big customers buy most of the output.
4Substitutes
Strong when another product does the same job for less, like video calls instead of flights.
5Rivalry
Strong when many similar firms fight on price in a slow market.
Quick check
A new law makes every clinic use electronic records. Which part of PEST is this?
Show the answer
Political. Laws and regulation are political forces, even when the subject is technology.
Leana's tip
Do not list everything. For each force, write the two or three points that really change the answer for your client.
Sort the news into PEST
Which box does this belong in? Tap the box.
Item 1 of 6A new tax law
Item 2 of 6Interest rates go up
Item 3 of 6More people work from home
Item 4 of 6AI chat assistants for customers
Item 5 of 6Fuel prices fall
Item 6 of 6Customers expect services in Arabic and English
- A new tax law
- Interest rates go up
- Fuel prices fall
- More people work from home
- Customers expect services in Arabic and English
- AI chat assistants for customers
All sorted. Well done!
What to remember
- PEST scans the big changes outside
- Five forces show how hard it is to make a profit
- Keep only the points that matter to the decision