Monro Posted March 13, 2017 Report Share Posted March 13, 2017 What can a management consulting firm do when the economy declines (in a recession)? In other words, how can a consulting firm keep large organizations continuously interested in them? Quote Link to comment Share on other sites More sharing options...
Tom Spencer Posted March 17, 2017 Report Share Posted March 17, 2017 Monro, This is a very good question! Thanks for asking it! It is true that during economic downturns prospective clients will typically have less money, or more uncertain cash flows, and so they will be less likely to spend money on consulting services. As a result, consulting firms may earn less revenue during economic downturns, and some consultants may become unemployed. Consultants and consulting firms can go some way towards reducing the effect of economic downturns by offering a range of services including some which are "countercyclical". That is, services for which demand demand increases during downturns, such as supply chain management, restructuring and turnaround support services. 1 Quote Link to comment Share on other sites More sharing options...
Ian Cai Posted March 19, 2017 Report Share Posted March 19, 2017 Consulting firms can provide a service focusing on saving companies out of bankruptcy and reducing the loss. Additionally, if the clients are worth helping the consulting firms can make an investment on them directly to earn dividend when the clients are on the right track. 1 Quote Link to comment Share on other sites More sharing options...
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