Management Analysis : Management Consultancy

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“Management Consulting involves providing professional knowledge and skills and specialist advice to management or the clients. It aims at improving organizational performance.” The service does this by first pinpointing the existing problems of an organization and then proposing solutions to said problems as well as helping with the execution of the solution to increase the performance of the organization. Today, with the uncertainty surrounding the global economy, the management consultancy sector could not be more important. “With a total value of $250 million, the global consulting sector is one of the largest and most mature markets within the professional services industry”. Due to the nature of the sector, it is clear that the…show more content…
“The top four largest consulting firms, all with a heritage in the accountancy sector, known as the Big Four (Deloitte, PwC, EY and KPMG), hold a combined 40% of the total consulting market.” This has dramatically increased from a decade ago as these companies complete more mergers and acquisitions. Deloitte has been ranked as the largest consultancy firm due to the fact that “Deloitte can build on the broadest palette of advisory services compared with its peers, in particular when it comes down to implementation services.” 2 As the world becomes more and more rooted in technology and IT, companies that have been around for hundreds of years need to adapt and evolve with the times. This is why management consultants have seen a growth in the sector as companies are bringing in more consultants to help with the digitization of the global economy. “In terms of consulting services, the biggest growth rates were booked in technology (up 7.7%)” When looking at the Porter’s five forces for the consulting industry, the results are interesting. There is a medium threat to enter as there are low customer switching costs however the past success of firms plays a big role in that firm being hired. As a result, it is harder for new competition to enter the marketplace as they will have no past experience and will need a company to first take a chance on them as a consultancy company before
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