Q2: Comparative analysis has become a part of our lives.

Whether it is
buying decision for a mobile phone or even a small cosmetic item, we
have certain pre-decided criterions for judging which nally govern our
buying decision. !ow, let"s e#pand this thin$ing hori%on and thin$ of
comparing two companies. Create a two page document on how to
compare performance of two rms. &ou can also e#plain this using an
e#ample.
While comparing two companies I would consider the following parameters:
a) Market share and growth in sales: The parameter of comparison is the
performance of the companies in trying to be successful leaders in market.
b) Products ofered: The ariety and the !uality of products and serices ofered
by the companies
c) Innoation and future strategies: The diferent innoations tried by
companies to make their product more competitie.
d) Management: The people at the helm and their past history is also an
important metric of comparison
e) "inancial Positioning: #oing through the balance sheets might throw light on
the long term debts$ liabilities and inestments. It helps in distinguishing
between two companies haing similar performance.
f) %aluation: The alue of their respectie stocks can also be an important
metric.
&omparison between 'nileer and Proctor ( #amble
a) Market share:
)oth the brands are well settled in deeloped countries. The diference has
been in the penetration of these companies in emerging markets like India$
&hina$ and Indonesia. 'nileer leads in deeloping markets compared to
P(#. The company bene*ts from long+established relationships in many of
these growth engines$ and has oer ,- years of e.perience in )ra/il$ &hina$
India and Indonesia. In India alone$ the company has roots in local
marketplaces dating back to 0111. Most recently$ 'nileer has recorded
double+digit growth in emerging market sales for the past 2
!uarters. 'nileer e.pects emerging markets to account for 3-4 of total
sales by the end of the decade.
P(# has renewed its commitment to deeloping markets in recent years and
has e.perienced growth in market share in the emerging markets.
56%57T5#8: 'nileer
b) Products ofered:
'nileer9s brands are more centered on food and drink oferings :it9s the
world9s largest proider of ice cream) as well as beauty and personal care
products. Meanwhile$ P(# has an especially strong presence in household
care products.
Product Market as a Percentage of ;ales
<ousehold Products Personal &are
P(# =>4 >?4
'nileer 034 =>4
;till$ there9s something to be said for global market share$ and that9s an area where
P(# shines. @ut of 3 billion people worldwide$ P(# reaches around ?.? billion of
them.
56%57T5#8: P(#
&) Innoation:
P(# is one the most innoatie company. )ut recently it has e.perienced low
e.penditure in A(6 as a percentage of sales from 0BBB :?.,4) to >-0> :>.?4).In
contrast$ the improement at 'nileer has been astounding. In >--,$ 'nileer
was able to bring Cust -.024 of new products to greater than 0- countries within a
year of their debut. Today$ under new management$ that statistic has risen to
0,4. The company has oer >-$--- registered patents$ *les around =-- more eery
year$ and sets aside more than D0 billion annually for research and deelopment.
5dantage: 'nileer
6) Management:
5. # EaFey is the &8@ of P(#. 5s &8@$ EaFey is credited with reitali/ing P(# under
the mantra G&onsumer is )oss$H with a focus on billion dollar brands like &rest$ Tide$
and Pampers. )ut he also brought in seeral new brands$ like ;wifer and "ebre/e$
by merging P(#Is internal resources with outside GopenH innoation$ referred to as
&onnect J 6eelop.
Paul Polman is the &8@ of 'nileer. 5 eteran of P(# and 7estle$ Polman was !uick
to shake things up. <e eliminated earnings guidance in !uarterly reports$ allowing
'nileer to focus on its long+term strategy. Most recently$ Polman launched an
ambitious plan to double reenue by >->- while haling the company9s
enironmental impact :which$ depending on your iews$ could be a good or bad
thing). 'nileer has performed well *nancially since Polman took oer$ but it
remains to be seen if he can e.ecute on his high e.pectations.
5dantage: 6A5W
8) "inancial Positioning:
While 'nileer sports a higher yield at =.-14 and has returned a diidend eery
!uarter for oer two decades$ P(# is the clear winner in this category. Procter (
#amble is one of only B companies to hae paid a diidend for 0>> consecutie
years and it has increased its diidend each of the past ,2 years. This reputation
shows no signs of fading+P(# saw strong$ uninterrupted cash generation in >-0>
and e.pects to return D00+0> billion to shareholders this year in the form of
diidends and share buybacks. In the end$ 'nileer has impressie margins$ but
P(# is a more disciplined diidend stock.
56%57T5#8: P(#
") %aluation:
;hares of both companies appear to be trading at a slight premium to the rest of
the market.
56%57T5#8: 6raw
It9s eident that 'nileer is especially strong in emerging markets and innoation$
while Procter ( #amble bene*ts from a rock+solid balance sheet and a product
portfolio with leading market share in a number of categories. 5fter analy/ing the
strengths and weaknesses of each business$ I feel con*dent writing that both
companies would be e.cellent additions to most portfolios.
Q': What are the di(erent types of consulting rms) *#plain each of them
with e#amples. Write an overview of any consulting rm of your choice
&@7;'ETI7# is all about soling problems and *nding sustainable and efectie
solutions for the problems faced by companies. Many times companies approach
consulting companies for e.pert opinion and pay for their serices.
6epending on the serices proided by the consulting *rms$ they are classi*ed into:
1. Strategy Consulting Firms:
;trategy consulting is about addressing issues that &8@ or the higher
management of the company faces currently K e.pects to face in the
future with far+reaching organi/ation wide implications on how they run
their business and make decisions like how to reduce costs :cut down
on oerheads$ increase eLciency)$ help in e.panding :launch strategy
of new product or serice$ e.pand footprint into a new geography) and
assist in pricing products and serices :price a new aircraft engine for
sale to 5ir India ersus Muwait 5irways)
The idea behind any strategic management process is to ealuate the
current status of the operation and all its indiidual components$
identify whether those components are being utili/ed to best efect$
and to deelop and implement changes when and as necessary. When
utili/ed properly$ this approach can improe the oerall performance of
the company$ moe the business closer toward reaching its stated
goals$ and keep the cost of raw materials and other resources in
balance with the returns generated by the business efort.
The focus is not only on Nwhat to doI but also on Nhow to doI.
@ut of the 0=-billion dollar consulting market$ ;trategy consulting
forms about 004 of the total market with growth prospects of >4.
6epending on the industry and the clientIs shortcomings$ strategy
consultants can *nd themseles working on a range of diferent
proCects. These could be anything from analy/ing why an online retailer
is losing market share to helping a *//y drinks manufacturer rebrand
and price its products for a new market.
Eeading strategy consultancies$ such as )oston &onsulting
#roup$ McMinsey ( &ompany$ )ain ( &ompany group ealuate a
companyIs alue for potential ac!uirers or assist a brand in staying
abreast of changes in consumer spending.
2. Operations Consulting Firms:
If a strategy consultantIs remit is to set a *rmIs long+term goals$ an
operation consultant is charged with making sure those targets are
met. 8aluating the inner workings of its clients$ operation
consultancies *ne tune operations to enhance the oerall eLciency of
a company.
The ealuation begins by e.amining the workFow structure of the
business then the diision of labor among the management of the
company and later moes on to how each and eery department
relates to one another in order to ultimately supply customers with
goods and serices. The idea is to understand how each component of
the business currently impacts that process$ directly or indirectly.
5fter ac!uiring a *rm understanding about the current procedures and
as well as the reasons behind the procedures$ a plan is made to
enhance arious operational functions. This inoles noting e.isting
procedures and strategies that sere the interests of the company ery
well$ while also noting areas where there is room for improements
that would enhance the already strong points of the operation.
The ne.t phase of operational consulting is usually implementation of
the changes determined to be necessary. <ere$ consultants may be
actiely or passiely inoled in the process. The consultant may
remain present for the duration of the implementation process$ ofering
adice and assistance along the way. In other cases$ the consultant
may remain aailable to the client but not be inoled in the day to
day implementation of the changes.
@lier Wyman$ 5li. partners$ &ereberus$ O; 5ssociates$ McMinsey are
few companies known for their operation consulting.
3. HR Consulting Firms:
<A consulting helps in addressing the speci*c needs of the business
that seres the best interest of both the company and the workforce.
The Cob of attraction$ selection$ assessment$ training$ rewarding of the
employees is also undertaken by <A consulting *rms. <A consulting
*rms$ now a day also focus on succession planning$ talent
management$ industry and labor relations$ etc.
<A consulting is of bene*t to businesses of eery si/e and description.
;tart+up companies may re!uire guidance in establishing policies and
procedures that comply with applicable laws as they relate to hiring
and *ring personnel. ;mall companies may *nd that calling in a <A
consultant to assist in taking a nascent program to a new leel$ such as
deeloping an employee handbook$ will create many bene*ts in terms
of productiity. <A consulting may be of help to larger corporations in
establishing grieance mediation processes or ealuating the current
si/e of the human resources team and making suggestions on how to
reorgani/e the department to best adantage.
5on <ewitt$ Mercer EE& and Towers Watson are few of the top <A
consulting *rms.
4. IT Consulting Firms:
It inoles proiding professional technological adice to the
companies in inculcating software and hardware solutions in their
business or organi/ation to streamline the process by increasing
eLciency and reducing cost.
They proide the most updated technological acumen which the in+
house personnel may not be able to proide.
5ccenture$ I)M$ 6eloitte$ Infosys$ &apgemini are few of the leading IT
consulting companies.
5. Mareting ! Sales Consulting Firms:
Marketing and sales consultants are hired for increasing the sales of
certain goods and serices.
5 *rm might need assistance in understanding what the most efectie
promotional channels are$ which ones to consider$ how budgets should
be allocated across these channels$ how large the marketing and sales
team should be$ how to increase reach of sales teams$ how they should
track efectieness :and take correctie action immediately)$ etc.
Marketing consultants proide this assistance.
McMinsey$ )&#$ O; 5ssociates :pharmaceuticals) are few marketing
and sales consulting *rms.
". Finan#ial Consulting Firms:
The *nancial consultants proide e.pert opinion on the *nancial
sustainability of the proposed business plans or decisions. There are
two main types of consulting: )usiness and Personal
In )usiness consulting$ a consultant has to reiew plans or decisions
made by a company and proide an educated opinion and adice on
on risk management$ pending goernment regulations$ industry trends
and long+term iability. ;uch consultants are normally re!uired to hae
a background in accounting$ *nance$ insurance and business
management.
Personal *nancial consulting is proided to people with signi*cant
*nancial resources or with comple. portfolios. These serices include
inestment adice$ ta.ation planning$ income management$ risk
assessment and long+term planning. These issues must be actiely
managed by a professional to obtain ma.imum bene*t with the lowest
amount of risk possible.
6eloitte$ Pricewaterhouse&oopers EEP$ 8rnest and Poung EEP are few of
the *nancial consulting *rms.
$. %i#&e 'rms:
7iche *rms$ which are often set up by an e.perienced consultant with
an area of e.pertiseQ these are smaller practices with up to 0--
consultants$ speciali/ing in particular industry.
Marakon for strategy consulting$ 5nalysys Mason for technology media
and telecommunication are few e.amples.
(RIC)*+T)RHO,S)COO()RS
PW& are currently ,
th
best consulting *rm according to the %5'ET
ratings. 5fter successful completion of its combination with )oo/ (
&ompany$ PW& is all set to achiee new heights. Marking this occasion$
)oo/ ( &ompany has changed its name to ;trategy( :pronounced
;trategy and).
"ollowing are few departments of consulting where PW& hae earned a
prestigious position:
0. ;trategy &onsulting:
PW& proide assistance in strategic planning$ growth strategy$
*nancial and ac!uisition strategy.
PW& bring following things to the table:
8.tensie capabilities. They turn strategic insights into operational
realities by bringing a mi. of strategic$ functional and technical
professionals.
6eep industry e.perience. They bring deep sector knowledge and
informed points of iew about the markets and competitors.
Practical approach. They combine these capabilities to deelop
strategies that can be e.ecuted R and can help implement those
strategies.
Independent but fresh perspectie. They bring the independence
of a )ig ? audit *rm. We hae a diferent perspectie than a
traditional strategy house.
Aigor at pace. They use creatie analysis and industry e.perience
to ground our insights in short time frames that reFects our deals
e.perience.
5 global network deliered locally. They delier solutions that
work$ with access to the world+class capabilities of the wider *rm
network.
Working style. They work with clients at all leels to get things
done. @ur team gets great feedback on what it is like to work with
us.
>. @perations &onsulting:
PW& not only proide sustainable$ innoatie strategies but also
match them with result oriented e.ecution. Pw& help their clients
with:
@peration strategy and transformation: They design an operating
model and conert the model into reality by keeping growth and
pro*tability as the ultimate growth
Product innoation and 6eelopment: They design and build
innoatie models that facilitate in faster meeting of customer
needs through cost efectie procedures as compared to the
competitors.
Procurement and sourcing: They bring the analytical skills and
category e.perience to rapidly identify and reali/e cost saings
while also improing serice leels and mitigating risk. Pw& also
guide clients through decision and implementation of mission+
critical outsourced or shared serices and capital programs.
Aobust contract and supplier management capabilities help
establish that saings are reali/ed$ targeted serice leels are
achieed and risks are proactiely managed.
Production and ;upply &hain @peration: They implement
production and supply chain strategies that balance Fe.ibility
and cost goals while deliering superior performance and
competitie adantage. In the production area$ they work to
improe cost$ serice and !uality of both in+house and
outsourced operations. They help improe deliery logistics
:transportation$ warehousing) while balancing cost and serice
obCecties. In the often neglected area of post+sales support$ they
work to lower cost and increase customer satisfaction by
improing *eld serice$ reerse logistics$ spare parts and
warrantyKrepair operations.
;erice @perations: They help clients delier the desired
customer e.perience eLciently and efectiely. &ustomer
interface$ customer engagement$ serice deliery and back oLce
operations are harmoni/ed to ful*ll the serice mission and drie
customer loyalty$ and are improed to do so cost+efectiely. The
art and science of e.cellent serice are enabled by our combined
industry depth and understanding of leading practices.
5ssets Eifecycle management: They help clients improe their
installed asset base and capital e.penditures through capital
portfolio management$ efectie proCect selection$ and robust
strategies to operate and maintain assets. They assist clients
through the end+to+end process of planning$ designing$ procuring$
constructingKimplementing$ commissioning and decommissioning
comple. #reen*eld or brown*eld proCects. They also help clients
improe the upkeep and reliability of ital assets by applying
leading practices in identi*cation$ planning$ scheduling and
e.ecution of maintenance actiities. @ur asset management
capabilities include Feet and real estate management.
=. "inance:
"inancial serices players will need to harness better business
models to oercome shortcomings of the past and current
challenges. Pw& draws on deep e.perience across industries to help
*nancial serices institutions in eery region *nd innoatie ways to
optimi/e processes$ reduce back oLce costs$ align IT$ manage risks$
capture the economic bene*ts of building loyal customers$ and plan
for eoling competitie and regulatory landscapes. Pw& work with
leading institutions in the banking and insurance sectors in all
maCor areas$ such as Aetail banking$ Priate banking and wealth
management$ etc.