Research of the management of international corporate business units based on the use of international factors of economic growth (based on the example of consulting services)

Размещено на http://www.allbest.ru/

Размещено на http://www.allbest.ru/

Kherson national technical university

Research of the management of international corporate business units based on the use of international factors of economic growth (based on the example of consulting services)

Alona Plyaskina

Tetyana Yakymchuk

Hlib Ziubanov

Abstract

Scientists divide the entire set of consulting companies in the world into several groups. Thus, the first group includes the «big four» companies. The second group of consulting companies are the so-called «thought factories', which do not just provide consulting services, but offer an unusual and non-standard way out of a difficult situation, offering creative ideas. The next group of companies are subject-oriented companies whose activities are limited to one or more areas, for example, marketing research, recruitment or business planning. Most research results show that the sector of consulting services is developing at a faster pace than other sectors of the world economy. In the developed countries of the world, the share of the service sector is constantly growing, while the positive trend of this sector is characterized by the dynamic development of the consulting services market. Summing up, it is possible to state with great certainty (as evidenced by research results) that the sector of consulting services is developing at a faster pace than other sectors of the world economy. In the developed countries of the world, the share of the service sector is constantly growing, while the positive trend of this sector characterizes the development of the consulting services market. Let's focus on the consulting process, which is related to agricultural products, because it is more complicated than industrial and other types of consulting, which is determined by the variety of methods, techniques and its implementation. The difference between agricultural business and other types of business.

Keywords: international corporate business units, consulting services, international factors of economic growth, enterprise

Анотація

Альона Пляскіна, Тетяна Якимчук, Гліб Зюбанов

Херсонський національний технічний університет

Дослідження управління міжнародних корпоративних бізнес - одиниць на основі використання міжнародних факторів економічного росту (на прикладі консалтингових послуг)

Виявлено, що всю сукупність консалтингових компаній в світі науковці поділяють на декілька груп: компанії «великої четвірки, предметно-орієнтовані компанії, невеликі консалтингові компанії. Для більш детальної оцінки сучасного стану консалтингових послуг проаналізовано абсолютні показники торгівлі, експорт та імпорт провідних національних економік, структура експорту та імпорту консалтингових послуг, динаміка обсягу експорту та імпорту консалтингових послуг, обсяг світового імпорту. Встановлено (що свідчать результати досліджень), що сектор консалтингових послуг розвивається випереджаючими темпами у порівнянні з іншими галузями світової економіки. В розвинених країнах світу частка сфери послуг постійно зростає, при цьому позитивною тенденцією цієї сфери характеризується розвиток ринку консалтингових послуг.

Main part

management international business consulting

Today, the international market environment has trends of increasing uncertainty and instability. Business units are trying to solve this problem using the involvement of professional services - consulting activities in economics and management. Consulting activity is a professional activity that consists of provision of independent and objective advices and technical assistance by qualified specialists to firms, organizations, and individual entrepreneurs with the aim of assisting the latter in identifying and researching management problems, to find optimal solutions, and the methodology of implementing recommendations. This is exactly the definition of consulting provided by Osadko O. Yu [1]. Kasych A.O. gives a similar definition, speaking about the activities of special companies for consulting manufacturers, sellers, buyers in the field of expert, technical and economic activities [2]. Modern consulting is a field of knowledge that, in a short period of time, has developed into a management methodology and practical business activity on a global scale.

Most research results show that the sector of consulting services is developing at a faster pace than other sectors of the world economy. In the developed countries of the world, the share of the service sector is constantly growing, while the positive trend of this sector is characterized by the dynamic development of the consulting services market.

Analysts have found out that the world market of management consulting services can be divided into segments: the 50 largest consulting organizations serve 67% of the entire world market, 180 medium-sized firms - 24%, 1500 small firms - 9%. Large firms have from 300 to 30,000 professional employees. The annual income of the companies ranges from 68 million to 3 billion dollars [3]. US consulting firms account for more than 49% of the entire global management consulting market. The value of large contracts with consulting firms in 2019 ranged from $30 to $50 million on average [4]. In medium-sized companies, the number varies from 100 to 300 employees with an annual income of almost 20 million dollars. In small firms, on average, no more than 4 consultants work, the income of such organizations does not exceed 0.5 million dollars per year [3].

Scientists [5] divide the entire set of consulting companies in the world into several groups. Thus, the first group includes the «big four» companies: Ernst&Young, Deloitte, KPMG, PwC, which were created many years ago. The main areas of their activity are auditing and consulting. In the field of consulting, they are engaged in almost all directions. The companies have significant authority and the strongest reputation in the world. Their clients are the world's largest multinational corporations. The second group of consulting companies are the so - called «thought factories», which do not just provide consulting services, but offer an unusual and non-standard way out of a difficult situation, offering creative ideas. These companies are McKinsey, BostonConsultingGroup, Bain&So. They form the so-called «big three» consulting companies specializing in strategic management.

The next group of companies are subject-oriented companies whose activities are limited to one or more areas, for example, marketing research, recruitment or business planning. The number of such companies is the highest. There are also small consulting companies on the market that consist of one or more specialists, and some of them combine this work with teaching at universities. Sometimes companies turn to individual consultants who either have their own business or conduct research, using their own experience as an external consultant. This practice, which originates from USA, has also spread in Europe, and recently it is gaining momentum in Ukraine.

It is also necessary to take into account the fact that the market of consulting services includes associations of companies, as well as professional associations of consultants and consulting agencies. The oldest of them are: ACME, the International Council of Institutes of Management Consulting and the European Federation of Associations of Management Consultants [6].

For a more detailed assessment of the current state of this service industry, it is worth analyzing the absolute indicators of trade, export and import of the leading national economies. Absolute indicators are indicated in Table 1.

For analysis, it is needed to calculate the structure and dynamics of indicators. The structure of trade in consulting services is presented in Table 2.

Table 1. Absolute indicators of the export of consulting services (2016-2020, thousand US dollars)

Based on the results of the calculations, it is possible to draw conclusions about the structure of the export of consulting relations. First, the USA is the absolute leader in the export of consulting services, exporting 21.69% of the total volume. In second place in terms of volume is Great Britain - 12.17%.

In total, 19 countries export 90.66% of the total volume of exported services. As for the dynamics of structural shares, the indicators of various states have deviations of 1-2%, except for the Netherlands, in the period from 2019 to 2020, the country lost 5% in the structural indicator. The share of other countries decreased from12.13% in 2019 to 9.34% in 2020, which may be related to the CoVid-19 pandemic. And in general, the structure is quite stable.

Table 2. Structure of export of consulting services (2016-2020, %)

For a more complete understanding of the state of export of consulting services, let's analyze the dynamics according to Table 3.

Analyzing the dynamics of the export of consulting services, the countries can be conditionally divided into two groups, the first - lost the volume of export of services in 2020 compared to 2019, the second only decreased the dynamics. For example, the US export leader reduced the annual rate of growth from 8-10% to 5% in 2020. Spain lost 8% of its export volume in 2020 compared to 2019. Declining growth rates or overall loss of volume can be attributed to the CoVid-19 pandemic in 2019.

Since consulting services involve direct contact with the recipient of the service, the pandemic has reduced the possibility and safety of providing these services. A different level of influence on national economies is observed due to a different level of competitiveness of enterprises, a different type of service provision, a different number of enterprises and a place among the companies of the world. Also, the speed of adaptation of enterprises to changes plays an important role. Some companies started to use the possibility of providing online services sooner, and some later.

Table 3. Dynamics of export of consulting services (2016-2020, %)

Logically, the situation with the global volume of imports should be somewhat similar. To confirm or refute this, it is necessary to calculate and analyze the dynamics and structure for import volumes also according to Table 4.

In general, the top 20 countries in terms of exports include almost all countries from the top 20 countries in terms of imports. Structural parts are presented in Table 5.

Table 4. The volume of world imports (2016-2020, thousand US dollars)

Analyzing the structure of import volumes, we can conclude that, in general, the distribution of import volumes is similar to the structure of exports. The first 20 countries consume 87.5% of all consulting services.

Table 5. The structure of the import of consulting services (2016-2020, %)

The USA ranks first in the import of consulting services. The total relative share of the first 20 countries in the import structure increased by 4% in 2020 compared to 2019. Germany has second place with a relative share of 9.42%. Singapore is in the top 4 in terms of export and import volumes, the share of import consumption is 8.25% in 2020. In general, the dynamics of structural parts is quite stable, that is, no significant structural shifts are observed.

For further analysis of the import of consulting services, it is necessary to calculate the dynamics of the volume. The results of the calculations are shown in Table 6.

Table 6. Dynamics of import volumes of consulting services (2016-2020, %)

The dynamics of import volumes of consulting services demonstrate a different level of stability of volume growth. For example, the USA increased import volumes by 10% in 2020 compared to 2019, Sweden and Denmark by 14%, Ukraine by 31%, these growth indicators are the largest of those indicated in table 2.6. The dynamics of the total volume had a positive trend until 2019, in 2020 the volumes decreased by 12.84% compared to 2019. As for the countries that are included in «others», the dynamics have a similar trend, but the decrease in volumes in 2020 compared to 2019 is much greater, and is 34.5%.

One of the main tasks of the consultant is to assist the client organization in solving management problems. This task can be accomplished in several ways. 1) Define the problem and formulate recommendations for its solution. This is appropriate when the client is aware of a problem, but cannot determine exactly what it is and what factors have caused it. 2) Help the client independently determine the problem and the mechanism of its solution. For example, a client is ready to define a problem and solve it, but he lacks some methodological support to successfully implement his intentions. 3) Teach the client how to find and solve problems. It involves the creation of a system of knowledge and skills for the client, which provides an opportunity to formulate problems and solve them independently.

Let's focus on the consulting process, which is related to agricultural products, because it is more complicated than industrial and other types of consulting, which is determined by the variety of methods, techniques and its implementation. The difference between agricultural business and other types of business:

- dependence of economic results on natural conditions.

- the role and meaning of the product. Agents of the agrarian market deal with goods of basic necessities. The goods, as a rule, perish quickly, therefore prompt delivery, appropriate and safe packaging, service and aesthetic support are necessary.

- discrepancy between the working period and the production period.

- seasonality of production and obtaining products. Processing (primary or final) should be highlighted.

- diversity of forms of ownership in the system of the agricultural industrial complex for land, means of production, goods sold. This defines a multifaceted competition that is driven only by consumer demand and satisfaction.

- variety of organizational forms of management. Taking into account the forms of ownership, agromarketing systems are formed, which are different in terms of organization, functioning, self-governance, and most importantly - receptivity and adaptability to the needs, requests and interests of consumers.

- unevenness of marketing activities.

- higher sensitivity, receptivity, adaptability, self-organization, self-governance of the agribusiness system compared to systems of other types

- the complexity of the personnel problem, since it is better to attract to work at the enterprise only those who are connected by residence in this area.

- high level of conservatism of the rural population, traditional distrust of new forms of activity, including consulting.

- wear and tear of fixed assets, which makes it impossible to follow the consulting recommendations of the technical and technological plan.

- low level of income.

Summing up, it is possible to state with great certainty (as evidenced by research results) that the sector of consulting services is developing at a faster pace than other sectors of the world economy. In the developed countries of the world, the share of the service sector is constantly growing, while the positive trend of this sector characterizes the development of the consulting services market.

References

1. Оsadko О.U. Technologii psychologicznogo konsyltyvania. К.: Red. zagalnoped. gaz., 2005. 128 s.

2. KasychА. О., GnoevaІ. М. OsoblyvostirozvytkuaudytorskyhposlugvUkrainitakonseptualnipidhodydoixklasyghikacii. URL: http://www.nbuv.gov.ua.

3. Marchenko О. S. Konsaltyngovi resursy nacionalnyh innovacijnyh system. Ekonomiko-teoretycznyj analiz: monografia. H.: Pravo, 2016. 280 s.

4. Mizhnarodnyj konsaltyng: navch. posib. К.: CHTTU «KPI», 2016. 184 c.

5. Gluckler J., Armbruster T. Bridging uncertainty in management consulting: the mechanisms of trust and networked reputation. Organization Studies. 2003. Vol 24. №2. p. 269-297.

6. Lagockyj Т. Ia., Bachalo І. B. Teoretyko-mretodologichni zasady provedennia konsaltyngovoi dialnosti. Naukovyj visnyk CHDU. Ser.: Ekonomichni nauki. 2014. Vyp. 5 (4). S. 232-236.

7. Tomenendal М. The Consultant-Client Interface - A Theoretical Introduction to the Hot Spot of Management Consulting. Business & Management. 2007. P. 31.

8. Council Post: Key Differences Between Coaching And Consulting (And How To Decide What Your Business Needs). Forbes. Retrieved 2021-04-12.

9. Global Annual Review 2013: Building trust in a time of change. Pricewater house Coopers Global. 2014. URL: http://www.pwc.com/gx/en/annu - al-review/2013/assets/pwc-global-annual-review - 2013.pdf

10. The Global Agenda: Competing in a Digital World. CEO Briefing 2014. Accenture. 2014. URL: http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture-Global-Agenda-CEO-Briefing - 2014-Competing-Digital-World. pdf

11. Boiarchuk А.І. Globalna regionalizacja jak megatrend fragmentacja sviti gospodarstva. Prychornomorski ekonomichni studii. Vyp 27. Ch 1. Zb. nauk. prac. Odesa: Prychornomorskij naukovo-doslidnyj instytut ekonomiki ta innovacij, 2018. S. 11-14.

12. Boiarchuk А.І., OgorodnykR. P., PluczykІ. А. Mizhnorodniekonomichnividnosyny: navch. posib. Cherson: TOV «VKF «STAR» LTD», 2018. 374 с.

Размещено на Allbest.ru