Boston_Consulting_Group

From Wikipedia, the free encyclopedia Boston Consulting Group Boston Consulting Group The Boston Consulting Group Thought Leadership BCG Growth-Share Matrix For more details on this topic, see Growthshare matrix. Type Founded Headquarters Key people Industry Products Revenue Employees Website Partnership 1963 Boston, Massachusetts 66 offices in 38 countries Hans-Paul Bürkner, President & CEO Management consulting Management consulting services US$ 2.3 billion (2007) about 7,000 bcg.com The Boston Consulting Group (BCG) is a global management consulting firm, founded by Bruce Henderson in 1963. It has 66 offices in 38 countries, and its current CEO is HansPaul Bürkner. BCG is generally ranked as one of the two most "prestigious" management consulting firms in the world.[1] The firm prides itself on its employee-focused culture, and over the last 4 years has been the only top-tier consulting firm to appear in Fortune magazine’s "Best companies to work for" report. In the 2009 list, BCG is listed as the 3rd best company to work at, and is the only top-tier consulting firm to appear in the top 100.[2] The company was formed when Henderson, a Harvard Business School alumnus, left Arthur D. Little to become head of a new management consulting division of the Boston Safe Deposit and Trust Company. In 1975 Henderson arranged an employee stock ownership plan, so that the employees could take the company independent from The Boston Safe Deposit and Trust Company. The buyout of all shares was completed in 1979. In the 1970s, BCG created and popularized the "Growth-Share Matrix", a simple chart to assist large corporations in deciding how to allocate cash among their business units. The corporation would categorize its business units as "Stars", "Cash Cows", "Question Marks", and "Dogs", and then allocate cash accordingly, moving money from "cash cows" toward "stars" and "question marks" that had higher market growth rates, and hence higher upside potential. The chart was popular for two decades and "continues to be used as a primer in the principles of portfolio management," as BCG says. Experience Curve For more details on this topic, see Experience curve effects. The Experience Curve illustrates that the more often a task is performed the lower will be the cost of doing it. The task can be the production of any good or service. Each time cumulative volume doubles, value added costs (including administration, marketing, distribution, and manufacturing) fall by a constant and predictable percentage. 1 From Wikipedia, the free encyclopedia In the late 1960s Bruce Henderson, the founder of BCG, began to emphasize the implications of the experience curve for strategy.[3] BCG research concluded that because relatively low cost of operations is a very powerful strategic advantage, firms should capitalize on these learning and experience effects.[4] The reasoning is increased activity leads to increased learning, which leads to lower costs, which can lead to lower prices, which can lead to increased market share, which can lead to increased profitability and market dominance. According to BCG, the most effective business strategy was one of striving for market dominance in this way. This was particularly true when a firm had an early leadership in market share. It was claimed that if you cannot get enough market share to be competitive, you should get out of that business and concentrate your resources where you can take advantage of experience effects and gain dominant market share. The Growth-Share Matrix was developed (in part) to manage this strategy. Boston Consulting Group • Treasure Hunt - Inside the Mind of the New Consumer. By Michael J. Silverstein with John Butman, 2006. • Trading Up - Why Consumers Want New Luxury Goods and How Companies Create Them. By Michael J. Silverstein and Neil Fiske, 2003. A BusinessWeek Bestseller and Berry AMA book prize winner. • The Change Monster - The Human Forces that Fuel or Foil Corporate Transformation and Change. Jeanie Daniel Duck, 2002. • Clausewitz on Strategy. By Tiha von Ghyczy and Bolko von Oetinger, 2001. • Blown to Bits - How the New Economics of Information Transforms Strategy. By Philip Evans and Thomas S. Wurster, 2000. Recruiting BCG typically hires for an Associate or a Consultant position. Whilst so called "lateral hires" as Project Leader, Principal or Partner are possible, they are not the norm. BCG recruits undergraduates to join as Associates from the world’s top academic institutions. In the United States, this includes about a dozen top private institutions. Many Associates receive sponsorship to pursue an MBA, returning to BCG upon completion. The vast majority of Associates attend Harvard Business School, the Wharton School of the University of Pennsylvania, the Stanford Graduate School of Business, the Kellogg Graduate School of Management, and INSEAD. Less frequently, Associates enter the MIT Sloan School of Management, Columbia Business School, the University of Chicago Booth School of Business, and the London Business School. A few complete JDs, MD and other graduate degrees at various institutions (called ADCs for Advance Degrees Consultants) BCG recruits MBA graduates to join as Consultants from the world’s top business schools. BCG also makes large efforts to hire advanced non-business degree holders. Graduates holding JDs, MDs and PhDs in disciplines like engineering, science, and liberal arts receive training in business fundamentals and then typically join the firm as Consultants. There is also an opportunity to join as a Summer Associate or Summer Consultant (internship) position for 10 weeks, which Publications BCG regularly publishes articles, industry reports, and government commissioned studies relating to particular industries or business functions. For example, a recent series of articles called "Collateral Damage" discusses how the Subprime Crisis is affecting non-financial companies, and what they can do to survive. In addition, many partners have written books on issues facing management in the modern business environment. Some recent publications include: • Globality: Competing with Everyone from Everywhere for Everything. By Harold L. Sirkin, James W. Hemerling and Arindam K. Bhattacharya, 2008. • The Boston Consulting Group on Strategy. By Carl W. Stern and Michael S. Deimler, 2006. Classic anthology of articles on strategy and management • Payback - Reaping the Rewards of Innovation. By James P. Andrew and Harold L. Sirkin, 2006. Published by the Harvard Business School Press, Payback has become a staple in the MBA curriculum. 2 From Wikipedia, the free encyclopedia for the majority of interns will result in an offer for full-time position. Boston Consulting Group Offices in Europe and the Middle East Abu Dhabi founded in 2007 Lisbon founded in 1995 Amsterdam founLondon founded ded in 1993 in 1970 Athens founded in 2001 Madrid founded in 1987 Interview process BCG uses the case method to conduct interviews, which is an interview technique designed to simulate the types of problems inherent in management consulting and to test the qualitative and quantitative skills deemed important for abstract thinking in a business setting. Competitors BCG competes most directly with McKinsey & Company and Bain & Company. BCG, McKinsey, and Bain are consistently rated as the three most "prestigious" consulting firms.[1] The three are considered to be "pure strategy" firms, and generally offer similar prices for contracts. With roughly 7,000 employees, BCG is smaller than McKinsey (17,000) and larger than Bain (4,300). BCG also occasionally competes with other firms such as Booz & Company, Monitor Group, Deloitte, PricewaterhouseCoopers, Accenture, and A.T. Kearney, but less directly. These firms offer a different value proposition, often focused on their ability to implement the recommendations they give. Barcelona founMilan founded in ded in 2002 1986 Berlin founded in Moscow founded 1999 in 1994 Brussels founded Munich founded in 1993 in 1975, European Budapest founheadquarters ded in 1997 Oslo founded in Cologne founded 1996 in 2001 Paris founded in Copenhagen founded in 1998 Dubai founded in 2007 Düsseldorf founded in 1982 Frankfurt founded in 1991 Hamburg founded in 1994 Helsinki founded in 1995 1972 Prague founded in 2004 Rome founded in 2001 Stockholm founded in 1988 Stuttgart founded in 1997 Offices Offices in Asia Pacific Auckland founded in 1990 Nagoya founded in 2003 Bangkok founded New Delhi founin 1994 ded in 2002 Beijing founded Seoul founded in in 2001 1994 Hong Kong founShanghai founded in 1990 ded in 1993 Jakarta founded Singapore founin 1995 ded in 1995 Kuala Lumpur Sydney founded founded in 1992 in 1990 Melbourne founTaipei founded in ded in 1990 2003 Mumbai founded Tokyo founded in in 1996 1966 Vienna founded in 1997 Warsaw founded Istanbul founded in 1997 in 2003 closed in Zürich founded in 2005 1989 Kiev founded in 2007 Offices in the Americas Atlanta founded in 1995 Boston founded in 1963, Global Headquarters Buenos Aires founded in 1995 Chicago founded in 1979 Dallas founded in 1994 Detroit founded in 2005 Houston founded in 2003 Minneapolis founded in 2007 Monterrey founded in 1993 New Jersey founded in 2006 New York founded in 1984 Philadelphia founded in 2007 San Francisco founded in 1974 Santiago founded in 2002 São Paulo 3 From Wikipedia, the free encyclopedia founded in 1997 Los Angeles Toronto founded founded in 1982 Mexico City foun- in 1993 Washington, D.C. ded in 1998 founded in 1996 Miami founded in 2003 Boston Consulting Group GLOBALITY: Competing with Everyone from Everywhere for Everything Michael J. Silverstein - Author of several bestselling business books, including Trading Up: The New American Luxury and Treasure Hunt: Inside the Mind of the New Consumer John Ho -- Former Asia chief of The Children’s Investment Fund Peter Balnaves - CTO of CVS Caremark Martin Halusa - CEO of Apax partners Mehmet Subasi - Founder & CEO of Vodaco Aamir A. Rehman - Author of "Dubai & Co.: Global Strategies for Doing Business in the Gulf States" Azwan Khan Osman Khan - Senior Vice President, Corporate Strategy & Development, Celcom • Companies founded by current and former employees • • • • • • • Jetstar Airways Orbitz Bain & Company Bain Capital Kayak.com Site59.com Ripple • • • • • • Notable current and former employees Business • • • • Jeff Immelt - CEO of General Electric Indra Nooyi - CEO of Pepsi Stefan Quandt - Owner of Delton AG Neil Fiske - CEO of Eddie Bauer, co-author of Treasure Hunt: Inside the Mind of the New Consumer Michael Dornemann - Chairman & CEO of Bertelsmann Entertainment Jim Whitehurst - CEO of Red Hat, former COO of Delta Airlines Gerald Corbett - CEO of Railtrack Bruce Buchanan - CEO of Jetstar Airways Steve Hafner - Co-founder and CEO of Kayak.com, co-founder and former CEO of Orbitz[5] Ahmed Fahour - CEO of the Australian operations of the National Australia Bank Andreas Jacobs - Chairman of Barry Callebaut Michael R. Eisenson - co-founder of Charlesbank Capital Partners, former managing director of the Harvard Management Company William Browder - Co-founder of Hermitage Capital Management Gary M. Reiner - SVP and CIO of General Electric Harold L. Sirkin - Author of several business books, including Payback: Reaping the Rewards of Innovation and Politics and public service • Benjamin Netanyahu - Prime Minister of Israel (2009 - Present) • Mitt Romney - Governor of Massachusetts (2003-2007), CEO of the 2002 Winter Olympics in Salt Lake City, co-founder of Bain Capital, former CEO of Bain and Company • Jeffrey Hunker - National Security Council member under President Bill Clinton and professor at Carnegie Mellon University • Hans Wijers - Minister of Economic Affairs of the Netherlands (1994-1998), CEO of Akzo Nobel • Ira Magaziner - Aide and policy advisor to President Clinton, CEO of SJS Advisors and co-founder of Brown University’s open curriculum • Steve Poizner - California businessman and Republican politician • • • • • • • • Academia • Clayton M. Christensen - Robert and Jane Cizik Professor, Harvard Business School • Michael Chu - Senior Lecturer, Harvard Business School, Former partner Kohlberg Kravis Roberts, and a founding senior partner of Pegasus Capital • Linda Bilmes - Professor, Harvard Kennedy School of Government • John R. Wells - Professor, President International Institute for Management Development, Switzerland • Kaz Uchida - Professor, Waseda University, Tokyo • • • 4 From Wikipedia, the free encyclopedia • Aiba Koji - Professor, Waseda University, Tokyo Boston Consulting Group [2] http://money.cnn.com/magazines/ fortune/bestcompanies/2009/full_list/ [3] Hax, Arnoldo C.; Majluf, Nicolas S. (October 1982). "Competitive cost dynamics: the experience curve". Interfaces 12: 50–61. doi:10.1287/ inte.12.5.50. [4] Henderson, Bruce (1974, #149). "The Experience Curve Reviewed: V. Price Stability" ([PDF] Reprint). Perspectives (The Boston Consulting Group). http://www.bcg.com/publications/files/ experiencecurveV.pdf. Retrieved on 2007-03-24. [5] http://www.vcgate.com/Kayak-comLeading-The-Travel-Search-EngineMarket.asp • Fortune 100 Best Companies • Google Finance - BCG • Consulting Magazine Others • John Legend - Grammy award winning musician • Alex Michel - Star of the Bachelor, Season One • Jehan Ratnatunga - Co-Founder of Ripple (charitable organisation) • Jesse Ward - Golf pro See also • • • • Growth-share matrix Experience curve effects Management consulting Strategic management References [1] ^ http://www.vault.com/nr/ consulting_rankings/ • Official consulting_rankings.jsp?consulting2009=2&ch_id=252Web Site • Downloadable BCG publications External links Retrieved from "http://en.wikipedia.org/wiki/Boston_Consulting_Group" Categories: Companies established in 1963, International management consulting firms, Privately held companies of the United States, Economics consulting firms, Companies based in Boston, Massachusetts This page was last modified on 16 May 2009, at 01:27 (UTC). 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