A framework for strategy formation for small consulting firms

Mitsui, Jun (2007) A framework for strategy formation for small consulting firms. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

There are several views towards strategy of the firms. The strategic triangle is one of frameworks which consider both internal and external issues proposed by Ohmae, which is commonly used when developing strategies. This framework has three components i.e. customers, competitors and corporation. Nevertheless this framework is biased to large firms similar to other frameworks because it was developed based on the observation of global companies.

Small firms are different from large companies in terms of resources. As a result, the strategy development is also different between small firms and large companies. One of the strategies to overcome their smallness is the use of alliances. Alliances enable small firms to handle larger scale of projects and leverage the strengths of each firm. For small service firms, relationships with customers are also crucial because influence of other customers' experiences affects significantly to clients.

The objective of this management project is to develop a framework for strategy formation for small firms, especially focusing small consulting firms. Having said that, the services of consulting firms are widely ranged and the work will be also different. The characteristics of the firms will affect the strategy of the firm. Environmental consulting firms are chosen as a target sector because of the potential growth of this market due to increasing demands of environmental issues and awareness of public opinion.

A survey was conducted to understand the importance of these points and key elements in each aspect in the environmental consulting industry. This industry was chosen because of growth and increase of the importance in the market.

The original strategic triangle developed by Ohmae needs to be modified when it is applied to the strategy development of small environmental consulting firms. In other words, two new components need to be added. These two components are called 'communication providers' and 'collaborators' in this management project. The modified strategic triangle was applied to strategy development of Spring which is a new environmental consulting firm as an actual case.

The modified framework covers all important entities for small consulting firms. Original three Cs i.e. customers, competitors and corporation are necessary to consider in order to develop strategies. Additional two Cs enable small firms to overcome their smallness and to increase the feasibilities of the strategy. Several researches and the market survey support these points and strategies of Spring are efficiently developed. Consequently, it can be said that the modified strategic triangle helps the development of strategies for small firms well.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 19 Nov 2007
Last Modified: 24 Oct 2016 12:49
URI: http://eprints.nottingham.ac.uk/id/eprint/21054

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