Also there is a lot of additional risk in market and

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Unformatted text preview: in the United States, Europe, and Latin America. These few thousand high-tech manufacturing companies are the key customers for Acme. Page 7 HURDLE: THE BOOK SP1.10 ON BUSINESS PLANNING 4.3 Service Business Analysis The consulting “industry” is pulverized and disorganized, with thousands of smaller consulting organizations and individual consultants for every one of the few dozen well-known companies. Consulting participants range from major international name-brand consultants to tens of thousands of individuals. One of Acme’s challenges will be establishing itself as a real consulting company, positioned as a relatively risk-free corporate purchase. 4.3.1 Business Participants At the highest level are the few well-established major names in management consulting. Most of these are organized as partnerships established in major markets around the world, linked together by interconnecting directors and sharing the name and corporate wisdom. Some evolved from accounting companies (e.g. Arthur Andersen, Touche Ross) and some from management consulting (McKinsey, Bain). These companies charge very high rates for consulting, and maintain relatively high overhead structures and fulfillment structures based on partners selling and junior associates fulfilling. At the intermediate level are some function-specific or market-specific consultants, such as the market research firms (IDC, Dataquest) or channel development firms (ChannelCorp, Channel Strategies, ChannelMark). Some kinds of consulting are little more than contract expertise provided by somebody who, while temporarily out of work, offers consulting services. 4.3.2 Distributing a Service Consulting is sold and purchased mainly on a word-of-mouth basis, with relationships and previous experience being, by far, the most important factor. The major name-brand houses have locations in major cities and major markets, and executive-level managers or partners develop new business through industry associations, business associations, chambers of commerce...
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This note was uploaded on 01/26/2014 for the course BUINESS 102 taught by Professor Unknown during the Winter '09 term at University of Phoenix.

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