marketing & management consultancy uk

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Management & Marketing Consultancy in the United

Kingdom Industry Profile

Reference Code: 0183-0424Publication date: October 2009

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United Kingdom - Management & Marketing Consultancy

© Datamonitor (Published October 2009)

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EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Market Value

The United Kingdom management and marketing consultancy market shrank by 2.1% in 2008 to reach a value of $32 billion.

Market Value Forecast

In 2013, the United Kingdom management and marketing consultancy market is forecast to have a value of $32.8 billion, an increase of 2.5% since 2008.

Market Segmentation I

The outsourcing services segment generated 31.4% of the United Kingdom management and marketing consultancy market's overall revenues.

Market Segmentation II

The United Kingdom accounts for 25.3% of the European management and marketing consultancy market's value.

CONTENTS



TABLE OF CONTENTS

EXECUTIVE SUMMARY 3

CHAPTER 1 Market Overview 7

1.1 Market Definition 7

1.2 Research Highlights 7

1.3 Market Analysis 8

CHAPTER 2 Market Value 9

CHAPTER 3 Market Segmentation I 10

CHAPTER 4 Market Segmentation II 11

CHAPTER 5 Five Forces Analysis 12

5.1 Summary 12

5.2 Buyer Power 14

5.3 Supplier Power 15

5.4 New Entrants 16

5.5 Substitutes 17

5.6 Rivalry 18

CHAPTER 6 Leading Companies 19

6.1 Accenture Ltd 19

6.2 Deloitte Touche Tohmatsu 24

6.3 KPMG International 26

6.4 PricewaterhouseCoopers 27

CONTENTS



CHAPTER 7 Market Forecasts 29

7.1 Market Value Forecast 29

CHAPTER 8 Macroeconomic Indicators 30

CHAPTER 9 Appendix 32

9.1 Methodology 32

9.2 Industry Associations 33

9.3 Related Datamonitor Research 33

CONTENTS



LIST OF TABLES

Table 1: United Kingdom Management & Marketing Consultancy Market Value: $ billion, 2004-2008 ..........................................................................................................9

Table 2: United Kingdom Management & Marketing Consultancy Market Segmentation I: % Share, by Value, 2008 ..................................................................................10

Table 3: United Kingdom Management & Marketing Consultancy Market Segmentation II: % Share, by Value, 2008 ..................................................................................11

Table 4: Key Facts: Accenture Ltd..................................................................................19

Table 5: Key Financials: Accenture Ltd ..........................................................................23

Table 6: Key Facts: Deloitte Touche Tohmatsu ..............................................................24

Table 7: Key Facts: KPMG International.........................................................................26

Table 8: Key Facts: PricewaterhouseCoopers................................................................27

Table 9: United Kingdom Management & Marketing Consultancy Market Value Forecast: $ billion, 2008-2013 ..........................................................................................29

Table 10: United Kingdom Size of Population (million) , 2004-2008 .................................30

Table 11: United Kingdom GDP (Constant 2000 Prices, $ billion), 2004-2008 .................30

Table 12: United Kingdom Inflation, 2004-2008................................................................30

Table 13: United Kingdom Exchange Rate, 2004-2008....................................................31

MARKET OVERVIEW



CHAPTER 1 MARKET OVERVIEW

1.1 Market Definition

The value of the management & marketing consultancy market in this report has been calculated as the total revenues received for the provision of corporate strategy services, operations management services, information technology solutions, human resource management services and outsourcing services. The market does not include revenues generated through the provision of related services such as accountancy, which are also provided by a number of players operating within the market. Any currency conversions have been calculated using constant annual average exchange rates.

For the purpose of this report Europe is deemed to comprise of Belgium, the Czech Republic, Denmark, France, Germany, Hungary, Italy, Netherlands, Norway, Poland, Romania, Russia, Spain, Sweden, the Ukraine and the United Kingdom.

1.2 Research Highlights

The UK management & marketing consultancy market generated total revenues of $32 billion in 2008, representing a compound annual growth rate (CAGR) of 11.3% for the period spanning 2004-2008.

The outsourcing services segment proved the most lucrative for the UK management & marketing consultancy market in 2008, generating total revenues of $10 billion, equivalent to 31.4% of the market's overall value.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 0.5% for the five-year period 2008-2013, which is expected to drive the market to a value of $32.8 billion by the end of 2013.

MARKET OVERVIEW



1.3 Market Analysis

Due to the economic slowdown, the UK management & marketing consultancy suffered decline in 2008, which is expected to persist for a few years before a return to low levels of growth.

The UK management & marketing consultancy market generated total revenues of $32 billion in 2008, representing a compound annual growth rate (CAGR) of 11.3% for the period spanning 2004-2008. In comparison, the French and German markets grew with CAGRs of 3.6% and 14.2% respectively, over the same period, to reach respective values of $9.9 billion and $33 billion in 2008.

The outsourcing services segment proved the most lucrative for the UK management & marketing consultancy market in 2008, generating total revenues of $10 billion, equivalent to 31.4% of the market's overall value. In comparison, the information technology segment generated revenues of $9.5 billion in 2008, equating to 29.8% of the market's aggregate revenues.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 0.5% for the five-year period 2008-2013, which is expected to drive the market to a value of $32.8 billion by the end of 2013. Comparatively, the French market will decline with a CARC of -1.8%, and the German market will increase with a CAGR of 3.5%, over the same period, to reach respective values of $9.1 billion and $39.3 billion in 2013.

MARKET VALUE



CHAPTER 2 MARKET VALUE

The United Kingdom management and marketing consultancy market shrank by 2.1% in 2008 to reach a value of $32 billion.

The compound annual growth rate of the market in the period 2004-2008 was 11.3%.

Table 1: United Kingdom Management & Marketing Consultancy Market Value: $ billion, 2004-2008

Year $ billion £ billion % Growth 2004 20.8 11.3 2005 26.4 14.4 26.60%2006 31.4 17.1 19.30%2007 32.6 17.8 3.80%2008 32.0 17.4 -2.10% CAGR, 2004-2008: 11.3% Source: Datamonitor D A T A M O N I T O R

Figure 1: United Kingdom Management & Marketing Consultancy Market Value: $ billion, 2004-2008

Source: Datamonitor D A T A M O N I T O R

0

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20

25

30

35

2004 2005 2006 2007 2008

$ bi

llion

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

% G

rowth

$ billion % Growth

MARKET SEGMENTATION I



CHAPTER 3 MARKET SEGMENTATION I

The outsourcing services segment generated 31.4% of the United Kingdom management and marketing consultancy market's overall revenues.

The information technology segment generated 29.8% of the market's aggregate revenues.

Table 2: United Kingdom Management & Marketing Consultancy Market Segmentation I: % Share, by Value, 2008

Category % Share Outsourcing Services 31.40%Information Technology 29.80%Operations Management 24.30%Corporate Strategy 10.30%Human Resources Management 4.10% Total 100.0% Source: Datamonitor D A T A M O N I T O R

Figure 2: United Kingdom Management & Marketing Consultancy Market Segmentation I: % Share, by Value, 2008

Human Resources

Management4.1%

Information Technology

29.8%

Outsourcing Services31.4%

Corporate Strategy10.3%

Operations Management

24.3%


MARKET SEGMENTATION II



CHAPTER 4 MARKET SEGMENTATION II

The United Kingdom accounts for 25.3% of the European management and marketing consultancy market's value.

In comparison, Germany accounts for a further 26.2% of the regional market's value.

Table 3: United Kingdom Management & Marketing Consultancy Market Segmentation II: % Share, by Value, 2008

Geography % Share Rest of Europe 32.80%Germany 26.20%United Kingdom 25.30%France 7.90%Spain 5.60%Italy 2.20% Total 100.0% Source: Datamonitor D A T A M O N I T O R

Figure 3: United Kingdom Management & Marketing Consultancy Market Segmentation II: % Share, by Value, 2008

United Kingdom25.3%

Germany26.2%

Rest of Europe32.8%

Italy2.2%Spain

5.6%

France7.9%


FIVE FORCES ANALYSIS



CHAPTER 5 FIVE FORCES ANALYSIS

The management & marketing consultancy market will be analyzed taking management and marketing consultants as players. The key buyers will be taken as individual businesses and public services, and its hardware and software suppliers as the key suppliers.

5.1 Summary

Figure 4: Forces Driving Competition in the Management & Marketing Consultancy Market in the United Kingdom, 2008

0

1

2

3

4

5Buyer Pow er

Supplier Pow er

New EntrantsThreat of Substitutes

Degree of Rivalry

Score for each force is mean of scores for its drivers. Total area & color indicates intensity of competition overall. Source: Datamonitor D A T A M O N I T O R

Management and marketing consultancies aim to improve business performance by providing external and objective advice to improve efficiency and create & implement strategies to sell their customers products or services.

The service the consultants provide is usually costly and involves specific professional knowledge. Consultants advise within a wide range of industries, so there is a high degree of service differentiation within the market. The leading management and marketing consultancies, such as PriceWaterhouse Cooper or Deloitte, are worldwide organizations with strong brand reputations, which is important for customer retention within a highly competitive market.

Intensity of competition

Weak Strong




The time and experience needed in order to gain these reputations present significant barriers to entry for new players with new entrants entering on a small scale operating within a specific market or industry. Many larger companies and organizations employ in-house business analysts and marketing teams, who act as a strong substitute threat to management and marketing consultancy services.




5.2 Buyer Power

Figure 5: Drivers of Buyer Power in the Management & Marketing Consultancy Market in the United Kingdom, 2008

01

23

4

5Buyer size

Oligopsony threat

Low -cost sw itching

Undifferentiated product

Tendency to sw itch

Price sensitivity

Financial muscle

Backw ards integration

Buyer independence

Product dispensability

Scores: 1= weak driver...5=strong driver Source: Datamonitor D A T A M O N I T O R

Buyers of management and marketing consultancy services can range from small to large companies operating across a wide range of markets or industries. Public services often use these services to improve efficiency and reduce costs in the long term. The service is costly due to the high level of specialized knowledge required and can act as a deterrent for smaller companies who are more likely to employ a business analyst internally.

Therefore, buyers in this market are highly likely to backward integrate by employing an analyst or team to review and improve performance. This combined with the service being largely dispensable to the buyer, unless the buyer is struggling to implement operational change or is a newcomer to the market, increases buyer power.

However, there is a large differentiation and customization of the services within the market and buyers will tend to choose the service that meets their needs most effectively, this reduces buyer power. Buyers enter into a contract with a consultancy company for the duration of a specific contract and do not incur any switching costs between projects. Although, as many projects have a prolonged duration, the switching of consultants may turn out costly. Buyer power with respect to the management and marketing consultancy market is assessed as strong.

Strength of buyer power

Weak Strong




5.3 Supplier Power

Figure 6: Drivers of Supplier Power in the Management & Marketing Consultancy Market in the United Kingdom, 2008

012345

Supplier size

Oligopoly threat

Sw itching costs

Player independence

Player dispensabilityNo substitute inputs

Importance of quality/cost

Differentiated input

Forw ard integration


Major suppliers to consultancy companies are producers of ICT hardware and software. Consultancy firms invest large sums of money in ICT systems and after sale updates. The suppliers usually offer technical help and maintenance alongside the main product. The sophisticated ERP systems are created to tailor the customers needs and may be altered at any time.

Such services involve binding companies with large and long contracts and they therefore incur large switching costs, which involve the training and redesigning of the systems. Overall supplier power with respect to the management and marketing consultancy market is strong.

Strength of supplier power

Weak Strong




5.4 New Entrants

Figure 7: Factors Influencing the Likelihood of New Entrants in the Management & Marketing Consultancy Market in the United Kingdom, 2008

012345



Scale unimportant

Low fixed costs

Little regulation

Incumbents acquiescentDistribution accessible

Suppliers accessible

Little IP involved

Weak brands

Market grow th


The leading management and marketing consultancies such as Accenture, PriceWaterhouse Cooper, KPMG or Deloitte to name a few, are worldwide organizations with exceptionally strong brands. The large pool of expertise of such large companies provides significant economies of scale. Although, small scale entry can be successful on a regional and industry specific basis.

Reputation is important within this market and therefore a good track record of improving cost-efficiency is a distinct advantage, which presents a significant barrier to market entry. Management and marketing consultancy involves a high degree of specialist and proprietary knowledge, with established companies developing a high degree of expertise in house.

A high growth rate makes the market more appealing to new entrants. However, this does not consider that the market has been strongly affected by the economic slow down and will act as a deterrent to market entry. Overall, the threat of new entrants with respect to the management and marketing consultancy market is moderate.

Likelihood of new entrants

Weak Strong




5.5 Substitutes

Figure 8: Factors Influencing the Threat of Substitutes in the Management & Marketing Consultancy Market in the United Kingdom, 2008

012345


Cheap alternativeBeneficial alternative


Many larger companies and organizations create in-house business departments which employ analysts and marketing teams in order to gain certain knowledge of the market and foresee future trends or to analyze and implement plans to improve business efficiency and performance. Smaller businesses may employ a business analyst to cover these services over the long term at a lower cost. This is the direct substitute threat to management and marketing consultancy services.

However, running such a department can be very costly and only well established companies with the constant need for these services may have the resources available. Despite good market/industry knowledge, consultancy companies are no match for in-house departments when it comes to the knowledge of a specific market and the company's operations that have been gathered over many years. Overall, the threat of substitutes with respect to the Management & Marketing consultancy market is strong.

Threat of substitutes

Weak Strong




5.6 Rivalry

Figure 9: Drivers of Degree of Rivalry in the Management & Marketing Consultancy Market in the United Kingdom, 2008

012345

Competitor size

Number of players



Low fixed costs

Easy to expandHard to exit

Lack of diversity

Similarity of players

Storage costs

Zero-sum game?


Leading companies within the management and marketing consultancy market are large global organizations, which raises rivalry, although there is significant fragmentation within the market among smaller specialized companies, which weakens rivalry overall. Management and marketing consultancies use similar software packages and follow similar methods, standardizing the market somewhat and increasing rivalry as the buyer has some power over price.

However, high service differentiation with regards to market expertise, low exit barriers and high levels of growth all decrease rivalry. Overall, rivalry with respect to the management and marketing consultancy market is weak. This however does not consider that the economic slowdown has had a significant impact on the market thus lowering revenues and increasing rivalry.

The leading companies will compete with each other more fiercely than the smaller consultancies, which focus on specific markets/industries and have particular buyers that they are most suitable for.

Degree of rivalry

Weak Strong

LEADING COMPANIES



CHAPTER 6 LEADING COMPANIES

6.1 Accenture Ltd

Table 4: Key Facts: Accenture Ltd Address: Canon's Court, Hamilton HM 12, Bermuda, BMU Telephone: 1 441 296 8262 Fax: 1 441 296 4245 Website: www.accenture.com Financial Year-End: August Ticker: ACN Stock Exchange: New York Source: Company Website D A T A M O N I T O R

Accenture is one of the leading providers of consulting and outsourcing services in the world. The company has experience, capabilities across most of the industries and business functions. Its offerings fall under three platforms: consulting, systems integration and outsourcing. It provides services to its customers through a global delivery network of over 53 centers. It has offices and operations in more than 200 cities in 52 countries.

The company's business is structured around five operating groups, which together comprise 17 industry groups. For financial reporting purposes, the company's operating groups are considered as reportable segments. The five operating groups of the company include products, communications and high tech, financial services, resources, and public service.

Accenture's products operating group comprises several industry groups, including automotive, consumer goods and services, health and life sciences, industrial equipment, retail, and transportation and travel services. The automotive industry group helps clients develop and implement solutions focused on product development and commercialization, customer service and retention, channel strategy and management, branding and integrated supplier partnerships, among others.

The consumer goods and services industry group serves food, beverage, household goods and personal care, tobacco, and footwear/apparel manufacturers. It provides companies in these sectors with service offerings, addressing sales and marketing productivity, working capital productivity improvement and supply chain collaboration, among others.

LEADING COMPANIES



The health and life sciences industry group's offerings include health clinical transformation, electronic health records and hospital back-office services in the provider/government segment. It also offers research and development transformation, commercial effectiveness, customer interaction and integrated electronic compliance in the pharmaceuticals and medical products segment. In addition to the above services, the health and life sciences industry group offers health information and data management, claims excellence/cost containment and health plan back-office services in the payer segment.

The industry equipment group serves the industrial and electrical equipment, construction, consumer durable and heavy equipment industries. It helps customers improve operating and supply chain efficiencies by optimizing processes and leveraging technology. In addition, the industrial equipment group develops and deploys solutions in the areas of channel management, collaborative product design, remote field maintenance, enterprise application integration and outsourcing.

The retail industry group serves a wide range of retailers and distributors, including supermarkets, specialty premium retailers and large mass-merchandise discounters. Its service offerings help customers reach the retail trade and consumers through precision marketing as well as maximize brand synergies and cost reductions in mergers and acquisitions. It also offers services to improve supply chain efficiencies through collaborative commerce business models and enhance the efficiency of internal operations.

The transportation and travel services group serves companies in the airline, freight transportation, third-party logistics, hospitality, gaming, car rental, passenger rail and travel distribution industries. It helps companies improve customer relationship management (CRM) capabilities, operate efficient networks, integrate supply chains, develop procurement and electronic business marketplace strategies.

It also helps them manage maintenance and repair as well as overhaul processes and expenses. The company's subsidiary, Navitaire offers airlines a range of transaction-processing services on an outsourced basis, including distribution, Internet reservations, airport check-in, revenue management and accounting, crew scheduling and management, and disruption recovery.

Accenture's communications and high tech operating group provides business consulting, technology and outsourcing services and solutions to three major industry groups: communications, electronics and high tech, and media and entertainment.

LEADING COMPANIES



The communications industry group serves wireline, wireless, cable and satellite communications network operators and service providers. The company offers a range of communications offerings, including a suite of reusable solutions, Accenture Communications Solutions, addressing major business and operational issues related to broadband and internet protocol (IP)-based networks and services Including business intelligence, billing transformation, customer contact transformation, sales force transformation, service fulfillment and next-generation network optimization.

The electronics and high tech industry group serves the communications technology, consumer technology, enterprise technology, semiconductor, software, and aerospace and defense segments.

The group provides services in areas such as strategy, enterprise resource management, CRM, supply chain management, software development, human performance, and merger and acquisition activities. It also offers Accenture High Tech Solutions, a suite of reusable solutions, which are designed to address the industry's major business and operational challenges like new product innovation and development, customer service and support, sales and marketing, and globalization.

The media and entertainment industry group serves the broadcast, entertainment, print, publishing and portal industries. It provides a wide range of services, including digital content solutions to manage, distribute and protect content across numerous media channels. These include Accenture Digital Media Services, which provide a comprehensive solution set to customers to adapt business processes and systems.

The financial services operating group helps customers manage cost pressures, industry consolidation, regulatory changes, and new industry standards and protocols. The group comprises three industry groups: banking, capital markets and insurance.

The banking industry group helps retail, commercial banks and diversified financial enterprises develop and execute strategies to target, acquire and retain customers, expand product and service offerings, comply with new regulatory initiatives and leverage new technologies and distribution channels. The capital markets industry group helps investment banks, asset management firms and depositories, among others, to improve operational efficiency and competitiveness.

The insurance industry group helps property and casualty insurers, life insurers, reinsurance firms and insurance brokers improve business processes, modernize technologies, and improve the quality and consistency of risk selection decisions. The industry group also provides a variety of outsourced solutions for insurers in the areas of working capital and cash flow, deliver permanent cost savings and enhance long-term growth.

LEADING COMPANIES



The resources operating group serves the chemicals, energy, forest products, metals and mining, utilities and related industries. The resources operating group is organized into four industry groups: chemicals, energy, natural resources and utilities.

The chemicals industry group caters to different industry segments, including petrochemicals, specialty chemicals, polymers and plastics, gases and life science companies.

The energy industry group serves a wide range of companies in the oil and gas industry. It helps customers optimize production, manage the hydrocarbon supply chain, streamline retail operations and realize the potential of third-party enterprise-wide technology solutions. The natural resources industry group serves the forest products, metals and mining industries.

It helps lumber, pulp, papermaking, converting and packaging companies as well as iron, steel, aluminum, coal, copper and precious metals companies develop and implement new business strategies and redesign business processes, among other activities.

The utilities industry group is focused on electric, gas and water utilities worldwide. Its offerings include CRM, workforce enablement, supply chain optimization, and trading and risk management. This industry group also provides a range of outsourced customer-care services to utilities and retail energy companies in North America.

The public service operating group was previously known as government operating group until September 2007. The operating group serves public-service entities worldwide. The operating group serves defense, revenue, human services, health, justice, postal and justice and public safety authorities of national, state and local-level governments, as well as pan-geographic organizations.

The company is headquartered in Hamilton, Bermuda and employs 186,000 people.

LEADING COMPANIES



Key Metrics

Accenture Ltd generated revenues of $25,313 million in the financial year ended August 2008, an increase of 18% compared to the previous year. The company's net income totaled $1,691.8 million in fiscal 2008, an increase of 36.1% compared with 2007.

Table 5: Key Financials: Accenture Ltd

2004 2005 2006 2007 2008Revenues 15,113.0 17,094.0 18,228.0 21,453.0 25,313.0Net Income 691.0 940.0 973.0 1,243.0 1,691.8Profit Margin 4.6% 5.5% 5.3% 5.8% 6.7%Total Assets 7,988.0 8,957.0 9,418.0 10,747.0 12,398.5Total Liabilities 6,516.0 7,260.0 7,524.0 7,944.0 9,206.0

All in $ millions, except for margins

Source: Company Filings D A T A M O N I T O R

Figure 10: Revenues & Profitability: Accenture Ltd

0.0

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10,000.0

15,000.0

20,000.0

25,000.0

30,000.0

2004 2005 2006 2007 2008

Year

US$

Mill

ions

0.0%

1.0%

2.0%

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4.0%

5.0%

6.0%

7.0%

8.0%

Prof

it M

argi

n (%

)

Revenues Net Income Profit Margin

Source: Company Filings D A T A M O N I T O R

LEADING COMPANIES



6.2 Deloitte Touche Tohmatsu

Table 6: Key Facts: Deloitte Touche Tohmatsu Address: 1633 Broadway, New York, New York 10019 6754, USA Telephone: 1 212 489 1600 Fax: 1 212 489 1687 Website: www.deloitte.com Financial Year-End: May Source: Company Website D A T A M O N I T O R

Deloitte Touche Tohmatsu is an organization of member firms around the world, providing a broad range of professional services including audit, tax, consulting and financial advisory services. The company operates in nearly 150 countries through 70 member firms. The company serves national and middle market enterprises, public institutions, privately owned companies and public sector organizations.

It provides its services to all major sectors including aviation and transport services; consumer business, energy and resources, financial services, life sciences and health care, manufacturing, public sector and technology, and media and telecommunications. The separate units of the company are Deloitte & Touche; the US accounting arm; and Deloitte Consulting.

Deloitte's services can be categorized into four broad functional areas: audit, consulting, tax and advisory services.

Deloitte's audit services segment offers audit technology, addresses new regulatory requirements, incorporates multiple generally accepted accounting principles (GAAP) compliance, and facilitates the auditor's understanding of business processes, controls, and risks. Its core competencies encompass risk management, capital markets, control assurance, internal audit, regulatory consulting, and security and privacy services.

The consulting services of the company range from strategy formulation to technology implementation. It also offers industry and functional business performance knowledge. The company has consulting alliances with leading companies such as 3M Company, BEA Systems, HP, IBM, Oracle Corporation, SAP, Siemens Medical Solutions USA and Sun Microsystems.

The company's tax services include corporate tax, indirect tax, international assignment services, international tax, mergers and acquisitions (M&A) transaction services, research and development credits, tax technology solutions and transfer pricing.

LEADING COMPANIES



The company's Global Backbone is locally delivered, centrally coordinated global tax compliance and reporting service scalable to meet each client's specific needs.

The advisory services are composed of four global service lines: corporate finance advisory, dispute consulting/forensic services, reorganization services, M&A transaction services, and valuation services. The corporate finance advisory unit provides M&A advice to corporate clients, private equity/venture capital firms, entrepreneurs and governments.

It has 90 partners and more than 900 employees. Its main services include acquisitions and disposals; capital raising-private equity or capital markets; valuations; strategic and general corporate advice; and business modeling. The dispute consulting/forensic services range from litigation consulting provided locally and globally to forensic investigations encompassing fraud and accounting investigations. The reorganization services include lender solutions, restructuring services, corporate exit management and insolvency services.

M&A transaction services provide tax, accounting and advisory services in business combinations to buyers or sellers. Valuation services provide business valuation, intangible asset valuation, tangible asset advisory services, transaction advisory, and capital allocation.

The company's Deloitte's Value Initiative has developed tools such as Deloitte's Enterprise Value Map (EVM), ValueAnalytics, ValuePrint and Project Portfolio Management.

Deloitte's Enterprise Value Map (EVM) identifies business activities and illustrates how each should be aligned to four primary value drivers: revenue growth, operating margin, asset efficiency, and expectations. ValueAnalytics enables the financial analyses of key value drivers. ValuePrint is a business case development tool. The Project Portfolio Management tool assesses individual projects' effectiveness and contribution to value.

Key Metrics

Deloitte Touche Tohmatsu generated revenues of $27,400 million in 2008 compared with $23,100 million in 2007.

Further financial information is unavailable.

LEADING COMPANIES



6.3 KPMG International

Table 7: Key Facts: KPMG International

Address: Burgemeester Rijnderslaan 10-20, Amstelveen 1185 MC, NLD

Telephone: 31 20 656 7890 Fax: 31 20 656 7700 Website: www.kpmg.com Financial Year-End: September Source: Company Website D A T A M O N I T O R

KPMG International (KPMG) is a global network of professional services firm providing audit, advisory, and tax services. The company has operations in 148 countries and more than 113,000 professionals working in member firms around the world.

KPMG is a Swiss cooperative that operates as an umbrella organization for its member firms. It has organized its structure into three operating regions: Europe, Middle East, and Africa; the Americas; and Asia-Pacific.

The company operates through three business divisions: audit, advisory, and tax.

KPMG's audit division provides independent auditing services to companies. The company provides resources and technological tools necessary to support internal controls. KPMG has established the Audit Committee Institute (ACI) to provide resources to audit committee members and help them keep pace with evolving business issues related to governance, audit issues, accounting, and financial reporting.

KPMG's advisory professional services provide advice and assistance to enable companies, intermediaries, and public sector bodies to mitigate risk and improve performance. It provides risk and financial advisory services to clients, which helps them create strategies for the longer term.

KPMG's tax services offer services related to tax compliance and managing tax risks. KPMG's tax input is delivered through a number of global service lines. These include: business tax, international corporate tax and indirect tax. These services assist clients in fulfilling compliance responsibilities, planning opportunities, and communicating between markets and regulators.

Key Metrics

The company recorded revenues of $22,690 million during the financial year ended September 2008, an increase of 14.5% over 2007.

LEADING COMPANIES



6.4 PricewaterhouseCoopers

Table 8: Key Facts: PricewaterhouseCoopers Address: 1177 Avenue of the Americas, New York, NY 10036, USA Telephone: 1 646 471 4000 Fax: 1 646 394 1301 Website: www.pwcglobal.com Financial Year-End: June Source: Company Website D A T A M O N I T O R

PricewaterhouseCoopers (PwC) is one of the world's largest professional services firms. PwC is an accountancy firm that provides services in three lines of business: assurance (including financial and regulatory reporting), tax, and advisory. PwC is one of accounting's Big Four, along with Deloitte Touche Tohmatsu, Ernst & Young, and KPMG. The company has operations in 150 countries spanning Europe, North America and the Caribbean, Asia, Australia and Pacific Islands, the Middle East and Africa, and South and Central America.

The company's member firms offer services under six divisions: audit and assurance, crisis management, tax, transactions, human resources, and performance improvement.

The audit and assurance division provides services in financial accounting issues related to matters such as valuations, pensions and share plans, listings, IFRS conversions, and corporate treasury and company secretarial functions. This division offers solutions related to Sarbanes Oxley and international financial reporting standards (IFRS).

Under the crisis management division, PwC offers services related to business recovery, disputes and investigations. The company's recovery services range from turnaround and restructuring plans to exit strategies.

Through the tax division, PwC assists businesses, individuals and organizations with tax strategy, planning, and compliance, whilst also delivering a range of business advisory services. The company develops comprehensive integrated solutions by combining industry insight with the technical skills of financial and tax specialists, economists, lawyers and other in-house experts. The company has 23,000 tax professionals in over 140 countries.

The transaction division offers services related to a range of financial transactions such as mergers and acquisitions, corporate finance, and valuation and strategy.

LEADING COMPANIES



The human resource services division offers services across three core disciplines: international assignments, reward and HR management. The PwC network is one of the world's largest HR advisory organizations with more than 6,000 professionals in over 100 countries. The HR management includes Saratoga, one of the leaders in human capital measurement, benchmarking and strategic application of human capital information.

The performance improvement division focuses on financial effectiveness, IT effectiveness and governance, risk and compliance business operations of companies.

Key Metrics

The company recorded revenues of $28,185 million during the financial year ended June 2008, an increase of 14% over 2007.

MARKET FORECASTS



CHAPTER 7 MARKET FORECASTS

7.1 Market Value Forecast

In 2013, the United Kingdom management and marketing consultancy market is forecast to have a value of $32.8 billion, an increase of 2.5% since 2008.

The compound annual growth rate of the market in the period 2008-2013 is predicted to be 0.5%.

Table 9: United Kingdom Management & Marketing Consultancy Market Value Forecast: $ billion, 2008-2013

Year $ billion £ billion % Growth 2008 32.0 17.4 -2.10%2009 31.4 17.1 -1.80%2010 31.0 16.9 -1.20%2011 31.2 17.0 0.50%2012 31.9 17.4 2.30%2013 32.8 17.9 2.80% CAGR, 2008-2013: 0.5% Source: Datamonitor D A T A M O N I T O R

Figure 11: United Kingdom Management & Marketing Consultancy Market Value Forecast: $ billion, 2008-2013


30.0

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MACROECONOMIC INDICATORS



CHAPTER 8 MACROECONOMIC INDICATORS

Table 10: United Kingdom Size of Population (million) , 2004-2008 Year Population (million) % Growth 2004 60.32005 60.4 0.30%2006 60.6 0.30%2007 60.8 0.30%2008 60.9 0.30% Source: Datamonitor D A T A M O N I T O R

Table 11: United Kingdom GDP (Constant 2000 Prices, $ billion), 2004-2008

Year Constant 2000

Prices, $ billion % Growth 2004 1603.12005 1632.5 1.80%2006 1678.6 2.80%2007 1729.0 3.00%2008 1744.5 0.90% Source: Datamonitor D A T A M O N I T O R

Table 12: United Kingdom Inflation, 2004-2008 Year Inflation Rate (%) % Growth 2004 3.02005 2.8 -4.70%2006 3.2 12.70%2007 4.3 34.20%2008 3.5 -18.50% Source: Datamonitor D A T A M O N I T O R

MACROECONOMIC INDICATORS



Table 13: United Kingdom Exchange Rate, 2004-2008 Year Exchange Rate ($/£) 2004 1.831372005 1.818052006 1.839792007 2.000522008 1.83517 Source: Datamonitor D A T A M O N I T O R

APPENDIX



CHAPTER 9 APPENDIX

9.1 Methodology

Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, and cross-checked and presented in a consistent and accessible style.

Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitor’s in-house databases provide the foundation for all related industry profiles

Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview

Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends

Datamonitor aggregates and analyzes a number of secondary information sources, including:

- National/Governmental statistics - International data (official international sources) - National and International trade associations - Broker and analyst reports - Company Annual Reports - Business information libraries and databases

Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

APPENDIX



9.2 Industry Associations

Institute of Management Consultancy 3rd Floor, 17-18 Hayward's Place London EC1R 0EQ, UK Tel: 44 20 7566 5227 Fax: 44 20 7566 5230 http://www.imc.co.uk/

9.3 Related Datamonitor Research

Datamonitor Industry Profiles

Global Management & Marketing Consultancy

Management & Marketing Consultancy in Europe

Management & Marketing Consultancy in Asia-Pacific

Management & Marketing Consultancy in France

Management & Marketing Consultancy in Germany

Management & Marketing Consultancy in the United States

Management & Marketing Consultancy in Japan

Management & Marketing Consultancy in Italy

marketing & management consultancy uk

Documents

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datamonitor usa

united kingdom management

datamonitor asia pacific

marketing consultancy

jj united kingdom t

industry analysis

toplevel information