Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : LDS0016A

Year : 2006

Industry :Global Management Consultancy

Region : USA

Teaching Note:Not Available

Structured Assignment :Not Available

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Introduction: Management consulting grew with the rise of management as a unique field of study. The first management consulting firm was Arthur D. Little, founded in the late 1890s. Arthur D. Little became a general management consultancy; it originally specialized in technical research. The first management consulting company was McKinsey, founded in 1926 in Chicago by James O. McKinsey. The modern McKinsey was shaped by Marvin Bower.

After World War II, a number of new management consulting firms formed, most notably Boston Consulting Group (BCG), founded in 1963, which brought a vigorous analytical approach to the study of management and strategy. It was largely the work done at McKinsey, BCG, and Harvard Business School during the 1960s and 70s that developed the approaches that defined the field of strategic management. Management consulting grew at a rate exceeding 20% in the 1980s and 1990s. Consulting remained highly cyclical and linked to overall economic conditions. The consulting industry shrank during 2001-2003 when the dot.com bubble burst. In 2004, industry recovered and revenues were up 3% over the previous year, yielding a market size of $125 billion globally.