Ruihua Heng Letter Management Consulting Development Strategy

As the significant means of enhancing and improving the management of enterprises, management consulting (MC) has been recognized by the whole world. Early in 70s, about 70% of the enterprises in US and 50% of the enterprises in Japan have successfully improved their business and made great achievement with the help of management consultant. MC in China started from 80s, it is now far behind that of the developed countries, neither can it meets the need of China socialist market economy. We, however, can foresee its great potentiality of market need and development in the near future. The big accounting firms abroad all have the MC service business, which is even in excess of accounting service and become the main business of the firm. Based on this point of view, China Rightson Certified Public Accountants (CRCPA)1 set up MC Dept in October 2001 providing MC service. The business, however, ran slowly, it is disproportional to the present fast developing MC business, which is mainly resulted from the unclear strategic positioning policy.Thus we are trying to make efforts on the following:1. Discuss the present problems of Chinese MC business, and anticipate the trend of its development basing on the analysis of the development of MC both in China and abroad.2. Analyze the feature of MC and find out the competitive advantages of Chinese MC business.3. Analyze the problems in CRCPA, identify the factors of advantages and disadvantages of its development, and establish the compatible competitive developing strategy for it.We hope this will be helpful for CRCPA to develop its MC service and bring some edifyingness to MC business.