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• Divyanshu Jain

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26-Nov-15

Andersen Consulting- EMEAI: Reorganization and Revitalization Session 9

Group 7: Divyanshu Jain (PGP/19/312) Ravisha Porwal (PGP/19/331) Shorya Chaplot (PGP/19/344) Suraj Tripathy (PGP/19/350) Tushar Johri (PGP/19/354)

How is AC-EMEAI organized in Europe? What are its strengths and weaknesses? • Matrixed on three dimensions: industry, geography and service line • Differentiation business-level strategy • Use of skills to differentiate products for customer groups that want and can afford differentiated products

Strengths: • Focused approach to customer problems leading to improved service quality across various domains • Country-wise differentiation leads to better understanding and handling of local clients • Wide area of focus leads to wider range of opportunities and client base, thereby widening the revenue base as well Weaknesses: • Cross-country development and exchange of ideas amongst professionals is limited • Time devotion on repetitive jobs even when a similar project has already been executed elsewhere, due to lack of communication • Power sub-centres are formed at various nodes of differentiation

Source: Pearson Education, Inc.

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26-Nov-15

How is the landscape for consulting changing in Europe? Does it favor integration? If so, then on what dimensions – country or service or industry? Consulting landscape in Europe

Dimensions: Country or Service or Industry

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The demand for Business Integration model is increasing

• The dimension for Integration to be on the basis of Industry offered to the client

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We can see a lot of mergers, as lot of mid sized companies trying to enter in consulting domain

• Strategic Council IT Services Management advice Outsource (If required)

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The market for Integrated business solutions is becoming more informed and formed and will be a potent force

• The companies are developing Core competencies in various services to offer a better Integrated consulting advice

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The client base involves more multinational companies

• But there are dissent to this Idea as well, they prefer to maintain functional resources to remain competitive

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It is challenging for companies to build the dual capabilities and integrate them Yes, the changing landscape, especially in terms of client demands, favours integration

What are the challenges to AC-EMEAI trying to integrate its operations? • Cross-culture compatibility and coordination • Lack of common goals, demands, focus across functions and geography • Varied skillset of consultants across geographies and varied core competencies • Demand of more autonomy from country partners • Finding the right combination of transfer price and budget while forming cross-functional crossgeographic teams • Difficulties in devising integration mechanisms such as task forces and integrating roles • Addressing the needs for electronic integration and management networks • Non-standardized customer requirements prohibits high level of integration

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26-Nov-15

Should AC-EMEAI change its structure? If so, how, i.e. which alternative that Vernon Ellis is considering is most suitable? Else, is there any other alternative that he is not considering? AC-EMEAI should consider changing its structure. • AC-EMEAI should change its structure for strategic reasons and to reduce the burden on senior management • Reorganization according to service lines (most suitable) • They can leverage the expertise of a service line across countries and it could leverage the expatriates as well as experts of each service line. • The problem of entering new countries with weaker people can be avoided, if we structure based on service line. • Division of Europe into three regions • It should divide entire Europe into three regions: Anglo-Saxons of UK and Nordic countries; Germanic culture of Central Europe; and the Latins of France, Spain and Italy. • Employees would be more motivated as there would be better growth opportunities within the same culture, without having to adapt to new cultures.

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