What Type of Company Is Bcg

BCG opened its second U.S. office in Menlo Park, California, in 1974. A year later, BCG became an independent company, one of the first to take advantage of the Employee Retirement Income Security Act of 1975, which introduced an Employee Participation Plan (ESOP). ESOP began with the purchase of BCG from The Boston Company, the parent company of Boston Safe Deposit. (The buyout was to be completed in 1979, five years ahead of schedule.) Also in 1975, BCG opened an office in Munich. Foreign affairs became so important to the company that by the end of 1977, revenues were divided equally between U.S. and foreign affairs. By the end of the decade, BCG opened another U.S. office in Chicago and the number of consultants employed increased to 277. The first of Henderson`s revolutionary tools, introduced in 1966, was called the “experience curve” that resulted from his work for a semiconductor manufacturer. He found that unit costs decrease as a company gains production experience. The experience curve concept allowed the Texas Instruments customer to undercut its competitors by postulating a reduction in unit costs. In the end, the concept led to the conclusion that it was imperative to first enter a new field and capture as much market share as possible in order to guarantee an experience curve against competitors arriving late.

Another important tool introduced in the 1960s was the product portfolio matrix, which represented a conglomerate in the form of a box with four quadrants: cash cows, dogs, stars or question marks. The goal was to get a balanced mix of cash cows, stars and question marks and sell the dogs. The terms Cash Cow and Dog quickly became an integral part of the business lexicon. BCG uses the Case method to conduct interviews. This technique is designed to simulate the types of problems inherent in business consulting and to test qualitative and quantitative skills considered important for abstract thinking in a business environment. [19] In general, the interview process consists of an online assessment and two consecutive rounds of interviews. [20] The Boston Consulting Group`s hiring process is widely regarded as one of the most difficult and selective in the world. [21] These revolutionary ideas that BCG developed – and continues to develop to this day – became a commercial canon and helped solidify our reputation in the market. And BCG`s core values have played an important role in making the company what it is today, while guiding our daily work. BCG underwent some changes at the senior management level in 1980.

Henderson was replaced by Alan Zakon as CEO and took over as Chairman of the Board. At the other end of the employment ladder, BCG launched its first class of associates hired directly from college. Most worked for the company for two to three years and then returned to school for their MBAs, often resuming their careers at BCG. In 1982, offices were opened in Los Angeles and Düsseldorf, followed in 1984 by a branch in New York. A year later, an office was opened in San Francisco; More importantly, Henderson retired in 1985, although he retained the title of president emeritus. (He died in 1992 at the age of 77.) Zakon took over the presidency and was replaced as CEO by John Clarkeson. In the 1980s, BCG opened offices in Milan, Madrid, Stockholm and Zurich. Meanwhile, the company also received its first major order in China. At the end of the decade, BCG employed 524 consultants. However, when the dot-com bubble burst and the U.S. economy began to slide in 2001 and deteriorated in 2002, BCG was forced to adapt to a decline in activity as clients were reluctant to embark on consulting projects.

In February 2002, BCG announced that it would reduce its advisory and support staff in the Americas by approximately 12%. The company wasn`t the only one to take this step – all of its major competitors were already forced to downsize. During other recessions, consulting firms appeared to have fallen out of favor, only to recover as conditions improved. This time, however, many observers began to wonder if a major fundamental change was underway. Consulting firms, especially BCG, had never been lost in designing and marketing big ideas, but now they seemed to have drifted, unable to produce the next new concept that would serve as a stimulus for new business. According to a July 2002 Boston Globe article, BCG “exhibited `asset productivity` and `competitive advantage by price`. But until the consulting world generates a new synchronized approach over time, many potential clients are likely to stay in their bunkers until the dark clouds turn around. Traditional asset management companies like BCG seemed particularly at risk as consulting projects increasingly involved the implementation of technology.

In 2000, it was estimated that 57 per cent of the US consulting market was devoted to IT services, and this number is expected to reach 70 per cent by 2004. To make matters worse for pure strategy companies, they found themselves facing two challenges on two fronts. On the one hand, large technology implementation companies have turned to the General Council; On the other hand, a number of companies have developed internal strategy teams, often to the detriment of consulting firms that have seen their employees searched, in some cases by former clients. In addition, emerging technology-focused companies that had managed to survive the collapse of high-tech also wanted to offer strategic advice to increase their own profits. .