Automation Consulting Services (ACS) is experiencing the following Key Issues with relation to its current strategic position:
a.Should ACS provide guidance to its partners/managers but risk firm exposure as their operations expanded in size and geographic reach? b.XXXXX
a.ACS needs to make changes
II.Analysis of Firm’s Strategy
Business Level Strategy
a.Goals – ACS had a staff of 83 consultants and revenues of almost $52 million and because they were in a fairly competitive advantage, the company considered the long term goal of opening an office in Europe. b.Scope – After opening the Boston office, ACS subsequently expanded into three more locations. They opened offices in Philadelphia and Detroit as well as obtaining a local partnership in San Jose, CA. c.Competitive Advantage
Corporate Level Strategy
ACS is in the business of automating consulting services and through market research, the founding partners saw that the need for such services would continue to be lucrative through the 2000s. ACS’ belief was that the company be based on rapid revenue growth for a few different reasons: 1) The clients consisted of larger corporations which had several manufacturing sites and 2) in order to create more value for the company, the founders wanted to create meaningful relationships with clients in the early stages of the market’s development to ensure client exit barriers; and 3) the founders thought that a high revenue growth rate would attract, motivate and retain consultants with the potential of a fast paced environment and the opportunity to develop professionally.
III.Analysis of Firm’s Control Systems
Diagnostic Control Systems
The current diagnostic control system is based on revenue growth, where each office is treated as a revenue center and the entire partnership is treated as a profit center....