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WRITTEN REPORT IN
MANAGEMENT CONSULTANCY
Group 1
Alseco, Jennifer P.
Misola, Gillina R.
Soriano, Sandralyn D.
Tumog, Louie John
Tee, Raymond
someone who has expertise in a specific area or areas and offers unbiased opinion and advice for
a fee
People frustrated with their current career, who see the solutions for problems for problems but
are unable to effectively influence decision-makers.
People who want a stimulating, dynamic, growing career that satisfies the need for personal
development
People dissatisfied with the lack of challenge, opportunity, or creativity in their existing jobs
People graduating from school with training but little experience to work for a large consulting
firm
People who are between jobs and seeking new opportunities and careers
People who see that they may be laid off and wish to establish themselves in a business to earn a
livelihood; these people may start on a part-time basis while still employed
People who wish to supplement their present income by using their managerial expertise or
technical or academic skills
People with work experience and industry knowledge or other skills who want to combine a
family life with work at home
People who understand government operations and the contract process, or who have built up
contacts in government, politics, or industry over the years
The most compelling nonmonetary reasons people enter the consulting field are:
1. Sharing the knowledge to help their clients.
2. Building business network and take a step up in ones corporate career.
3. Having no boss, being independent and making their own decisions.
4. No fear of being laid off
5. Having a flexible source of income
6. A means of giving back to the community by providing expertise and assistance in
community-based projects.
Evolution of MAS
Auditing, accounting system design and installation, and income tax work have been the
traditional areas of expertise for CPA firms. The field of management consultancy has, however, become
a rapidly growing new area. When CPA firms during the course of an audit discovered problems in a
clients business, it was natural for them to make suggestions for corrective action. In response, the client
often engaged the CPA to make a thorough investigation of the problem and to recommend new policies
and procedures needed for a solution. Gradually, public accounting firms found themselves becoming
more and more involved in management consulting work.
The progressive public accountants have found management consultancy a natural area of
development of their practice because many of these assignments involved planning and control systems
that relied heavily on accounting and related statistical information. In recent years, responding to the
increasing demands of clients for outside assistance, CPA firms have created separate management
advisory service divisions. The qualifications of management consultants sometimes include special
training and experience, skills and research capabilities to apply an analytical approach to the solution of
management problems.
Because of increasing complexity of business, more and more small and medium-sized
businesses are looking to their auditors for help in the area of controllership. However, as management
advisory services are extended further into other areas, some members of the profession feel that there is
increased pressure against independence of the CPA which cannot just be taken lightly. The accounting
firm should therefore strive at all times to limit itself to providing advice and technical assistance to
clients and avoid making management decisions or taking positions that might impair its objectivity.
Management consulting is profession whose members provide extremely useful services to
business managers. The profession of management consulting is growing at an accelerating rate and the
end of this growth trend is not in sight.
Areas of MS Practice
Management accounting can relate to areas such as:
1. The management functions of analysis, planning, organizing, and controlling.
2. The introduction of new ideas, concepts, and methods to management.
3. The improvement of policies, procedures, systems, methods, to management.
4. The application and use of managerial accounting, control systems, data processing, and
mathematical techniques and methods, and
5. The conduct of special studies, preparation of recommendation.
The areas of management consultancy are varied and wide-ranging. The most sought after types of
consultancy work generally include:
(a) Business planning and development or project feasibility studies
(b) Information systems consulting
(c) Management/ operations audit
(d) Business process involvement/ reengineering
(e) Others such as
(1) Marketing research
Growth of the business within its core markets by capitalizing on market growth or market share
increase
Process reengineering is considered a more radical approach to improvement than TQM. Process
reengineering is more likely to be imposed from above and to use outside consultants.
A business process is diagrammed in detail, questioned and then completely redesigned
(1) to eliminate unnecessary steps
(2) to reduce opportunities for errors, and
(3) to reduce costs.
A business process is any series of steps that are followed to carry out some task in a business.
Re-engineering is the complete redesign of a process with an emphasis on finding creative new ways
to accomplish an objective. Re-engineering prescribes radical, quick and significant change. It involves
developing new ways to performing existing activities and ways to stop performing non-value adding
activities.
(a) Cultural Factors
Organizational culture refers to the mind set of employees, including their shared beliefs, values
and goals. A strong functional culture is a key factor that can increase the likelihood of successful
implementation of business process improvement or reengineering.
(b) Managing Organizational Change
Employee assistance is current problem in process reengineering. The cause of much of this
resistance is the fear that people may lose their jobs. The end result of the improvement should be
more secure rather than less secure, jobs.
Meaningful change is more likely to occur if there is a well-defined process established for
change. A timetable for certain activities, a set of well-articulated goals and follow-up are all
important elements of such a process.
Involvement by virtually all the employees in an organization is required to implement
successfully any new business process improvement. Each employee should be made aware of
(a) The goals of the program
(b) The process by which the program will be implemented and evaluated, and
(c) The employees role in making the program a success.
(b) Secondary research is based on information that has been collated earlier for reasons other than
the project at hand. It takes the form of existing reports, articles and commentaries that just prove
to be relevant to the project.
Marketing Strategy Development
Marketing research is a powerful approach to identifying business opportunities. Exploiting them,
though, requires a marketing strategy.
A marketing strategy defines the approach the business will take in order to get the customers
attention and critically get them to spend their money on the businesss products or services.
The marketing strategy will be built on the answers to the following questions:
What channels are available for getting the product to the customer?
Businesses often need infusion of capital. Consultants are often called in to offer advice in four
critical areas:
Developing an understanding of the criteria employed by funding providers and how these might
be addressed
Staff Recruitment
A consultant can be of value in this area. Important contributions to recruitment projects might
include:
Assessing the firms human resource requirement and identifying skill and knowledge gaps, both
currently and predicting the future.
Creating advertisements (with insights into both message and medium) to attract the right people
Successful recruitment can demand a degree of specialist knowledge. As a result it is often an area in
which dedicated consultants operate.
Exporting and International Marketing
Most large firms have an international if not a truly global dimension to their operations. Many
high-growth firms soon recognize the opportunity the international stage offers them as a route for
expansion. For most businesses, moving into the international arena is a step into the unknown.
The most successful moves into international operations are those which are based on sound
preliminary research and thorough understanding of what to expect. The consultant can assist this process
of discovery.
In particular the consultant can supply:
An evaluation of consumer needs and requirements and how these are being satisfied currently
Technical Competence
Familiarity with the clients finance and control systems and his business problems.
Every management involves all 6 dimensions. Thus, although an engagement may briefly be
described as a management information system engagement (i.e., in accordance with the service
delivery area), it also takes place at one or more specific locations, involves a client belonging to a
particular industry, or particular organization and so on. Each dimension and its possible categories
will be discussed briefly in this section.
Corrective problem involves a situation in which conditions have worsened. It usually arises
suddenly and demands urgent actions. Defying the problem is often much less difficult than
determining the preferable course of action. An example of a corrective problem is the sudden
drop in productivity within a critical department. A consultant is expected to suggest corrective
action/s that will return the situation to its previous state.
Progressive problem involves an existing situation that can be improved. For example, the firm
may have been acquired by the firms competitors but the firms procedures have remained
unchanged. The firm has continued to employ old procedures in spite of significant growth in
transactions and development in computer technology. In such a situation, the consultant may
determine that computer-based transaction processing systems are likely to provide considerable
improvements to the situation.
Opportunistic problem involves a situation in which a future opportunity exists. For example, a
firm might have excessive cash and cash equivalents available. On the surface, the problem is that
the funds are not earning a desirable rate of return. The consultants responsibility is to search out
and recommend opportunities for more effective use of funds. Obviously, opportunistic problems
are likely to lead more risky as well as more potentially rewarding courses of action other than
are corrective and progressive problems.
6. Procurement
7. Research and development
8. Packaging
9. Administration
10. Internal operations
Within each principal area are several narrower areas. For instance, under finance and accounting, the
following may be the subject of management advisory services:
4.1 General accounting
4.2 Cost accounting
4.3 Short-term planning, budgeting and control
4.4 Credit and collections
4.5 Long-range financial planning
4.6 Capital Investment