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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
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.
- Winter '09