Market Expansion of Rise Consultant

Running head: MARKET EXPANSION OF RISE CONSULTANT
Market expansion of Rise Consultant
Name of the Student:
Name of the University:
Author Note:

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MARKET EXPANSION OF RISE CONSULTANT
1. Project Outline:
Is the topic interesting and why?
The topic ‘Market expansion of Rise Consultant’ is interesting due to the rising
importance of consultancy firms in enabling the business organisations achieve their business
generation. The stiffening of the market competition in the developed and developing countries
have made it very significant for companies to seek advices from consultancy firms. The
competition to sustain in the market has stiffened in the developed and emerging markets due to
their immense sharing of resources in forms of financial resources, human resources, knowledge
and technological resources. The companies in these countries require supply of continuous
supply of market data to facilitate decision making. The firms today in order to gain market data
depend on consultancy firms. In other, market expansion of companies generate business for
consultancy firms operating in different areas like marketing, technology and finance, all of
which conduct market research in these areas. The consultancy industry is a booming industry
dominated by multinational consultancies like Boston Consultancy Group or BCG and
Mckinsey. The market dominance of these multinational consultancy companies can be gauged
by the fact the BCG matrix developed by BCG is a globally accepted tool used by companies to
make their respective marketing decisions. These global consultancies have offices in almost
hundred countries dedicated to conduct continuous market research about the resident market
and provide the companies located within the countries with market information. This
dominance of international consulting companies has made in difficult for smaller consultancy
firms located in these markets difficult. The smaller consultancy firms require to search and
develop strategies to compete with their multinational counterparts to expand in the market. This
competition between smaller and larger consultancy companies would make the research more

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interesting to conduct. The second factor which would make the research more interesting would
be the country chosen for study namely, Russia. The country traverses both Asia and Europe,
thus its market is more competitive owing to direct influences of the developed western markets
like the US as well as emerging Asian markets like China. The third factor which would make
the study more interesting in the country is already a strategically important to multinational
consultancies like BCG. Moreover, Russia is a developed market with immense number of large
scale companies which function as clients to the consultancy firms. This means that consultancy
firms can exploit this expanding client base to generate higher revenue. Thus, it is evident that
smaller consultancy firms like Rise Consultants can also experience significant growth in Russia
if they are able to compete with their multinational counterparts by forming appropriate
competitive strategies. This challenge which Rise Consultant would have to face in Russia of
braving its larger and more established competitors would make the research more interesting.
Types of data to be collected to address this research problem:
The researcher would require collecting large amount of data to conduct the research
successfully. The data would primarily require qualitative data collected from several secondary
sources like articles, books, journals and reliable website. The secondary data which the
researcher would be required to accumulate would relate to various aspects like economic
development of Russia and present consultancy market in the country. The findings of the
research would be used to suggest strategies which Rise Consultant would be required to form
strategies to expand its business in Russia.
Accessibility of data and planning of data collection:
The data which would be required to substantiate the research would be primarily of
secondary in nature and hence would be accessible. The researcher would be required to collect

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data from wide range of secondary sources like articles, journals, books and newspaper articles.
However, it must also be pointed out that the researcher the authenticity of the pieces before
finalising them for incorporation in the final report. The researcher should be even more careful
about the authenticity of the information he collects from the internet. He should prefer
information from authentic sources like government websites and official websites of corporate
organisations.
Timeline of the problem:
StartW
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5/1/19
Finish
Tue
7/9/1
9
May
5,
'19
May
12,
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May
19,
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May
26,
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Jun
2,
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9,
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16,
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23,
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30,
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Jul
7,
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Researcher collects
secondary data about
the topic chosenMon
5/6/19 - Thu 5/23/19
Researcher
analysis the
data and
discards
unreliable/us
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5/24/19 - Mon
6/3/19
Prepare
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draftTu
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- Mon
6/10/19
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Profes
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6/13/1
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6/18/1
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Reseacher incorporates
the feedback in the final
research to complete the
researchWed 6/19/19 - Mon
7/8/19
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2. Problem Formulation Report (800-1000):
Introduction:
The Russian business market had no consultant firms before the market reforms. The
country was based on centralised business principles and therefore did not need any kind of
business consultant in the business. The dramatic transformation of the market after the end of
the soviet rule and the changes in the business market totally changed the situation. The situation
totally changed as a result of the change in the government and the entry of the capitalist forces
including the large multinational corporations in the market. Finding themselves in a totally new
and improved environment along with the managers facing a great demand for managerial advice
led to the formation of different kinds of consultancy agencies within the country. The following
report has provided a clear and transparent imagery of the marketing process and the ways of the
growth of a specified consultancy company named “Rise Consultant”.
Background of the research problem:
An industry becomes susceptible to disruption at the time when the organizations becomes
entrenched in its longstanding solutions as well as the financial structure of the business. Apart
from this there can also be the cases of disruptive innovations that tend to affect the smoothness
of the business operations in the most negative manner. Management consulting business like
that of “Rise Consulting” is thus equally enriched in the business as because the organization
fails to make the business a proper and effective in nature. The industry is characterized by the
growth in line with the overall economy, an increasing number of the industry players and the
technological changes that are based on the improvement of the efficiency rather than the
development of the entirely new kind of business services.
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In line with the majority of the world’s largest economies, Russia features an upper-
middle income mixed economy, featuring state ownership in strategic areas of the economy.
While some important aspects of the economy are pragmatically controlled by the state – such as
energy and defence-related sectors – market reforms in the post-Soviet restructuring of the 1990s
saw much of Russian industry and agriculture privatised. Despite this programme having brought
the Russian economy in line with much of the West, the growth of the economy remains largely
dependent however on one particular line of business. Russia's vast geography is an important
determinant of its economic activity, with some sources estimating that Russia contains over
30% of the world's natural resources, and the World Bank estimating the total value of Russia's
natural resources at $75 trillion. As a result, Russia remains heavily dependent on energy
revenues to drive most of its growth. In line with many of the Gulf states, when oil-prices tanked
in 2014, thanks to falling demand, improved energy efficiency and rising production, the Russian
economy took a major hit. In fact, as it was also hit by economic sanctions thanks to the nation’s
continued meddling in Ukraine, and the subsequent flight of capital this provoked, Russia would
soon enter recession. While in 2014 GDP growth remained positive at 0.6%, in 2015 the value of
the ruble collapsed, with the Russian economy shrinking by 3.7% and expected to shrink further
in 2016. Amid such adverse conditions, it is typical for a nation’s consulting sector to likewise
encounter hard times, as consulting fees are often the first place ailing businesses look to make
savings when tightening their belts.
According to the latest market data from Source Global Research, this downturn in
business saw consulting revenues decline a dramatic 13% over the course of 2014, and a further
14% by the end of 2015. Between 2013 and 2015, consulting revenues fell by €146 million in
just two years, including a double digit contraction for the second year running, with the market

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shrinking 13.7% in 2015. 2016 saw the slowing of this, though the consulting industry in Russia
still saw a decline of 2%, reaching a value of €435 million. Thankfully for the sector, things were
on the brink of changing.
In these years, financial services, which makes up almost 40% of the market, and energy
& resources consulting fared the worst. Financial services predictably suffered thanks to the
double body blow of the recession and being the main targets of sanctions (as is still the case).
This restricted the ability of Russian banks to borrow abroad, with much of the discretionary
work previously done by consulting firms in this regard subsequently surplus to requirements.
The consulting work that did take place focused on cost cutting, regulation, and risk
management.
Research problem statement:
The problems that will be identified will mainly include problems involving the different
kind of the changes involving the major problems of the organization.
Problem definition and scope:
Some of the major problems that have been identified in the following research and can be said
to be major speed breakers for the management of “Rise Consultants” are as follows,
a. Labour Intensive- The over dependence on the human resource as the fundamental
source of research, analysis, recommendation and process management can be a major
problem for the business organization.
b. High Margins- The cost of the service provided by the business organization has been
decreasing for quite a few years and the lengthy and over staffed engagements by the

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management of the business organizations will be able to analyze the profitability of the
major projects and the business firms accordingly.
c. Time Bound Value- There are often problems with the organization to maintain a time
bound value for the services. This can be a major disruption for the growth of the
consultancy firms in the Russian market.
The above mentioned problem that may be faced by “Rise Consultants” does have a
major scope for the change in the organizational elements. The problems can seriously make a
large impact on the operations of the business organization.
Relating problem to focal industry and research discipline:
The above mentioned problems are all concerned with the different kinds of the
organizational elements that include the likes of the problems related with the falling demand for
the organizational consultation, failure of the management of the organizations to provide the
best time bound value for the business.
Rationale of conducting research:
The research will be conducted in order to gain a deep insight into the ways and the
processes that will involve the expansion of the consulting group in the market. The research will
highlight on the different processes and skills that will be required for the organization to ensure
its success in the market.
Brief evaluation of research problem from academic perspective:
The rapidly emerging trends in the modern consultancy business have created a new
breed of competitor. The new breeds of the competitor have proved to be tough choice and the
management of the business has been trying to avoid such problems for a long time since now.