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Summary of Management Consultancy Chapter 1 by Ma. Elenita Cabrera

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Summary of Management Consultancy Chapter 1 by Ma. Elenita Cabrera

Page 1 of 5
CHAPTER 1:
OVERVIEW OF MANAGEMENT CONSULTANCY SERVICES BY CPAs

Introduction to the World of Consulting
* Consultants are not all CPAs. Anyone can be a consultant. However, to prosper in consultancy, one has to have the expertise. The most compelling nonmonetary reasons people enter the consulting field are: 1. Sharing their knowledge to help their clients.

2. Building business network and take a step up in one’s 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
The primary factors that contributed to the emergence and growth of management consultancy are:

1. Growth in size and complexity of business.
2. Difficulty in conducting and managing a business.
3. Greater competition among businesses so that new management techniques will have to be applied. 4. Recognition of the importance of accurate and timely information in decision-making. 5. Inability to have a complete line-up of professional management. Developing Trends

* Management consultancy now specializes in information systems, automated offices, financial analysis and modeling budgeting and cost controls, organization structures, personnel compensation, strategic planning and a host of other areas. * Another trend has been the improvement of business education. * The quality undergraduate and graduate programs in business are producing better-trained entrants into the ranks of management consulting profession. As a result of this infusion, management consulting is becoming a catalyst for advancement of better management concepts and techniques. * Technological developments have occurred at a breathtaking pace in such areas as information sciences and decision sciences. * Computer hardware and software, together with data...