Consulting Company Porter's Five Force Models

Solution Preview

Running head: CONSULTING COMPANY

Consulting Company
Name:
Instructor:
Course code:
Date:

Consulting Company
Organizations and companies hire consultants with an aim of strategizing solutions to an organization, business or industrial problems. Hiring a consultant brings value of objectivity, perspective or expertise. The Consulting industry is divided into management consulting, industry specific consulting, IT consulting and strategy consulting. Consulting is a vital aspect in the world of business. There is a possibility of consultants experiencing intense workloads and hours which may be rewarding in a number of ways for example, offering traveling opportunities, high bonuses and high services, (Categories of Services and Products, 2008).
Professionals with an aim of engaging in making business decisions other than recommendations tend to leave consulting industry. Economy greatly affects the consulting industry while consultants may experience lows or highs in the amount of workload they engage in. This may also result in temporary or permanent layoffs during the period whereby the project workload is light. Consulting companies are a way of making a bunch of cash or funding a start up. These companies are simple to start since an individual is only required to pick an hourly rate and jump in.
Within the next three years the consulting industry is likely to be affected by several environmental forces as outlined by the STEEP forces tool. Factors arising from the external environment such as the changes in economy and lack of innovation investment normally have an impact on the strategic options available to the consulting companies. To have a better glance on how the external environmental factors may have an effect on the process of planning of the consulting companies in the consulting industries, STEEP analysis tool is employed so that the decision makers may be furnished with information on how they could improve their strategic plans.
In the next three years, the social element of the environmental factors describes the societal elements that the consulting company deals with in every market such as the population's age distribution, religion, demographics, lifestyles and education. Consultant s within the consulting industry must at all time take into consideration the social factors in the market as the social environment may cause havoc on an already established strategic plan. A careful monitoring of the trend in the society results to the arrival of the correct conclusions.
Secondly, the technological environment affects the consulting industry in that, changes in technology determines the value of services that consultants offer to their clients. Analysts normally measure and monitor the changes in the technical environment and the effects of the changes depending on the respective product development strategies. Depending on how the consulting industry is driven by innovation, the task may take several years to conduct.
Thirdly, the economic environment contains the aspects that consultants require to offer their consulting services based on the economic conditions. The consulting company must properly access the reaction of their clients when there are some economic changes in the environment and adjust the strategies that they employ so that they could remain competitive given the circumstances.
Fourthly, the ecological environment refers to the present day situations of both the biological and physical environments that the Consultant Company can face. The consultant company should pay attention to the ecological environment of the country or countries that it is offering its services to due to the fact that if the company operates without the correct information, the consultant company may be fined or denied the chance of operating within some identified areas around the globe (SWOT Analysis, 2010).
Finally, the political or legal environment requires consultants within the consulting industry to understand the political and legal environments available within the regions ...