Industry Research
Assignment
Consulting Firms
Group 4:
Kenny Chik, William Fung, Lok
Wong, Wai Poon, Boscal Yuen
Content
What Consulting Firms do
Big players
Mckinsey & Company
Corporate Finance
Insurance
Banking & Securities
What Consulting Firm do
as their name suggests - they consult
e.g.
"technical consultants" give advice on
technological issues
"financial consultants" give advice about
money
Our focus: Management Consulting
Inside a consulting firm are many experts
they are typically organized into teams,
specifically chosen for a given project.
the team is constructed internally by the
consulting firm, and it is maximized for
efficient human capital composition
e.g. “How to make vanilla coca-cola a
success”
team size depends on the job specifications
and the clients' needs
Big Names
McKinsey & Company
Boston Consulting Group
Booz Allen Hamilton
Bain & Company
2003
FIRM
2002 RANK HEADQUARTERS
RANK
1
2
3
4
5
6
7
8
9
10
McKinsey & Company
Boston Consulting
Group
Bain & Company
Booz Allen Hamilton
Monitor Group
Mercer Management
Consulting
IBM Global Services
Deloitte Consulting
Accenture
Gartner
1
New York, NY
2
Boston, MA
3
Boston, MA
4
McLean, VA
8
Cambridge, MA
6
New York, NY
13
Somers, NY
10
New York, NY
5
New York, NY
9
Stamford, CT
The Boston Consulting Group
An international strategy and general management
consulting firm
Mission is to help leading corporations create and
sustain competitive advantage.
The Boston Consulting Group
Areas of Expertise :
The firm conducts research and analysis in several
key areas of expertise:
branding, consumer goods and retailing, corporate
development, deconstruction, electronic commerce,
energy and utilities, financial services, health care
and pricing etc…
The Boston Consulting Group
Main Clients :
the 500 largest corporations in North America,
Asia, Europe, and Australia.
America : Washington DC, LA, San Francisco,
NY, Chicago, Boston
Asia : Tokyo, Vietnam, HK, Singapore,Bangkok,
Shanghai etc…
Europe : London, Paris, Hamburg etc…
Booz Allen Hamilton
Booz Allen, a global leader in strategy and
technology consulting, provides services to
major international corporations and
government clients around the world.
Booz Allen Hamilton
Areas of Expertise:
Strategy
Organization and Change Leadership
Operations
Information Technology
Technology Management
Booz Allen Hamilton
Main Clients:
(1) New Jersey Transit
(2) Hudson-Bergen Light Railway
(3) Federal "Aviation Agency
(4) Nissan Motor Company
(5) Brasil Telecom
Bain & Company
Areas of Expertise:
Portfolio management, bill presentment,
M&A, private equity consulting
Bain & Company
Main clients:
Bain has done over 1,000 studies for more
than 300 financial services firms around the
world - one-third of them banks.
Early stage venture capital, large traditional
buyout firms,retail, commercial and
investment banks
McKinsey & Company
Founded in 1926 by the University of Chicago
accounting professor James "Mac" McKinsey.
In 1964, the McKinsey Quarterly was launched.
The foremost journal of management ideas
produced by a consulting firm.
1994-97, it accelerates global expansion. Offices
in more than 40 countries.
Mckinsey & Company
In 2000, the high-tech boom helps to drive annual
revenues over $3 billion, making McKinsey twice
as big as its nearest competitor.
Most recently, McKinsey assists Hewlett-Packard
CEO on HP's controversial Compaq acquisition.
McKinsey earns $9 million on deal.
Service offerings
Banking & Securities
Helps clients in commercial banking and
investment banking/brokerage, asset managers,
diversified financial institutions, consumer
finance companies…
Business Building
Focuses on kick-starting and sustaining
profitable growth in client organizations.
Service offerings
Electric Power & Natural Gas
Helps incumbents and new entrants manage in this
rapidly expanding and liberalized sector.
Travel & Logistics
Addresses all transportation sectors, including airlines
and airports, railroads, post, parcels, express delivery,
trucking, forwarding and logistics, shipping and ports,
urban transport, and travel and tour operations.
Corporate Finance and Strategy
Capital Markets Strategy
Advise how to create and unlock value in capital markets.
Example: Improving the low market valuation of a
company
There were three main ways:
Better information for investors and equity analysts
Company can raise more capital to finance further growth and
increase its strategic flexibility
Limitation of the risk of an unfriendly takeover, with the danger of
the company losing control over its future
Corporate Finance and Strategy
Mergers, Acquisitions
Select and value targets, determine the value-creation
potential of the transaction, and provide execution
support from early discussions to negotiations and
closing
Post-Merger Management
Provide problem-solving and execution support for
high-impact, tailored solutions focused on capturing
situation-specific sources of value and building internal
capabilities to make repeated acquisitions.
Corporate Finance and Strategy
Example: A European Bank want a further expansion,
but found the situation was complex in terms of the
“emerging markets” economic environment.
Mckinsey help client to do the following things:
To assess the attractiveness of the target’s country
banking market and of the target itself
To develop a valuation and a price range for the bidding
process, including the development of a postacquisition strategy.
To embed the acquisition opportunity within the client’s
growth strategy.
Corporate Finance and Strategy
Example: Clients identified an opportunity to acquire a
British manufacturing company in a relatively mature
industry, and to merge this with a foreign company in the
same industry.
Mckinsey help client to evaluate the following
three factors :
How attractive is the industry?
What is the position and potential of the British
company, and of the foreign player?
What scale of synergy could be achieved by the merger?
Corporate Finance and Strategy
Value-Based Management
Help establish value-based performance enhancement
programs throughout the organization.
Example: Portfolio of client businesses was too broad,
and found difficult to perform much better
Mckinsey will help client to develop a new corporate
strategy that would further focus the business portfolio,
and implement a program that would, in three to five years,
fundamentally transform the corporation
Corporate Finance and Strategy
Example: (cont’)
Finally Mckinsey did the following things:
Objective Assessment of Competencies (chose the
business units with the most shareholder value at stake
and worked with them for 2-3 months)
Evaluation of the Company's Portfolio
Developing a Transformation Plan
Initial Public Offerings
Advise on value-creating initial public offerings,
provide services for the full range of IPOs, from startups through privatizations and spin-offs.
Insurance
Property and Casualty Insurance
work with both personal and commercial
lines carriers
to identify and develop new business
opportunities
to improve operational performance in an
increasingly global arena
Insurance
Life Insurance & Wealth Accumulation
help clients shape distinctive strategies
develop the executional excellence necessary
for continued success
Insurance
Asset Management
embrace all elements of the business system,
including fund administration, the
investment management process,
distribution, product development, and
branding/marketing.
Insurance
Reinsurance
offer guidance and expertise to reinsurers
on global business strategy and investment
management
on opportunities in life and health
reinsurance
Insurance
IT in Insurance
work with clients focuses on six key drivers:
business requirements, technology
architecture, application portfolio,
organizational capability, technology
infrastructure, and economic priorities.
Insurance
mRisk: Insurance e-Commerce
launch on-line businesses both within
financial services and across other
industries
offers senior insurance executives insurance
news and proprietary insight on industry
trends
Banking and Securities
European Banking & Insurance
Insurance asset management:
Property and casualty, life, health, reinsurance and
asset management
Retail banking:
Financial (and nonfinancial) institutions
participating in the personal financial services arena
Banking and Securities
Wholesale banking:
Risk management, marketing
Banking & Securities
North American Banking & Securities
Payments:
credit/debit cards, internet payment systems,
payment networks and devices
Retail Banking/Consumer Credit:
cost and productivity management, sales and
marketing effectiveness