Status Quo And Development Of The Chinese Consulting Market Thinking

As a kind of social activity, consultation has a long history all over the world. Because of the progress of the social technology, the economic globalization, the advancement of the information industry, etc., the decision-making is becoming more and more difficult in modern times. Faced with this situation, the people refer themselves to the consultative organizations for advice. Therefore there is a rapid increase in counseling demand. As a matter of fact, the consulting industry has come into being, which belongs to the Third Industry. At the present time, the total volume of business of the global consulting industry has arrived at hundreds of millions of U.S. dollars per year and is increasing by more than 10% per year. The consulting industry in China, however, has lagged behind in comparison with the consulting industry in developed countries. Trying to search out ways to develop the consulting industry in China, I have gathered data and probed into this problem. That's why I select the topic <>.My thesis investigates the consulting market. The outline of the thesis is as follows: Define relevant concepts in the first place by probing the origin and evolution of the social activity - consultation; analyze the consulting market theoretically, including the study of property of the consulting goods, the patterns of supply and demand, the price of the consulting goods and the consulting risk; specify the present state of China's consulting market by comparing it with its counterparts in some other countries; at last present some reformative measures to promote the development of China's consulting market.The thesis is composed of four chapters. Chapter 1 presents an explanation of the basic concept - what's consultation by providing sufficient historical materials. The evolution of the activity of consultation can be divided into two stages - conventional consultation and modern consultation. What's more, consultation has different characteristics during different periods. Chapter 2 focuses on the theoretical analysis of the consulting market. Firstly, it expatiates on the standards, by which we can differentiate between public goods and private goods. Any goods with both excludability and rivalness are defined as private goods, any goods with both non-excludability and non-rivalness then belongs to public goods. Macroscopical consulting, namely the social policy consulting, surely has these two attributes - non-excludability and non-rivalness. Therefore it is some kind of public goods. Microcosmic consulting (Technical Consulting, Engineering Consulting, Management Consulting) can be classified as private goods. Secondly, the thesis analyzes the patterns of supply and demand. According to the relevant theories - Governmental Economics, Public Economics, Non-profit Organization Management, etc., the government and the non-profit organization will supply some consulting service to the whole society because this kind of consulting service is some sort of public goods and the enterprises in pursuit of profits are unwilling to manufacture these goods. This is called market failure. Because the market mechanism is flawed, there is the need for the government to play its role; Especially in China, the market economy is still in its infancy and therefore flaws caused by imperfect market mechanism are ubiquitous. The government can provide some consulting service either by setting up governmental organizations or by purchasing service from non-governmental organizations or by offering alow-interest loan, subsidy, favorable taxation, etc.. And the thesis argues that the efficiency by setting up governmental organizations is not as high as by purchasing service from non-governmental organizations. Other consulting service that is some kind of private goods is still provided by the market. Thirdly, the thesis discusses the price of the consulting service. There are four major factors in...