MGMT 5900 Exam 1 Questions And
Answers
/. What is Management Consulting? - Answer-✅a broad category of advisory services.
Two major functions
- A) the official, formal, and publicly visible set of activities and objectives, - B) the
confidential, unacknowledged, and usually primary set of activitiesand objectives.
/.Characterize Peter Block's Flawless Consulting: A Guide to Getting Your Expertise
Used - Answer-✅emphasizes that consulting is not just about providing solutions but
about fostering trust, collaboration, and effective communication.
/.What is the Official, Publicly Acceptable Definition of Management Consulting? -
Answer-✅provides organizations with a broadset of advisory services to help them
formulate defendable strategies, improve operational processes,and generally improve
the effectiveness, efficiency, and economic value of organizations
(Advise, Effective and Efficient Organizational Performance that Improves Economic
Value)
/.What is the Confidential, Unacknowledged Definition of Management Consulting? -
Answer-✅related to organizations, Boards of Directors, and often individual executives,
using external advisors to vet, ostensibly justify, give credibility to, glamorize/promote,
or otherwise offset risks associated with internally generated ideas, strategies, and/or
actions.
(VJCGR - Vet, Justify, Credibility, Glamorize, Risk)
/.Why do firms hire companies like McKinsey, BCG, and Bain? - Answer-✅Sarbanes-
Oxley Regulations
Stakeholder Management
D&O Insurance Documentation
Honeybee Effect
Covert Personal Career Advancement
/.Explain why firms hire consultants for Sarbanes-Oxley Regulations. - Answer-
✅Liability risk to BoD (board of directors) and C-Suite (CEOs, CFOs,...)
, /.Explain why firms hire consultants for Stakeholder Management. - Answer-✅Deflect
blame
Establish perceived credibility
/.Explain why firms hire consultants for D&O Insurance Documentation. - Answer-
✅Show paper trail of "fiduciary responsibility" in case of lawsuits
/.Explain why firms hire consultants for Honeybee Effect. - Answer-✅Diplomatic sharing
of industry "best practices"
/.Explain why firms hire consultants for Covert Personal Career Advancement. -
Answer-✅Ostensibly using a third party to justify political strategiesinside of
organizations
/.What is the distinction between what consulting is and what professional services? -
Answer-✅a key difference between Professional Services and Consulting is that
Professional Services usually includes activities where a third-party is actually
performing a task for an organization, while consulting (technically) is restricted to
provide advice and recommendations.
Consulting is ADVISING.
/.Define Strategic Management. - Answer-✅the practice of management at the level of
the firm
/.What activies are involved in Strategic Management. - Answer-✅Inherently cross-
functional and includes decisions that are impactful not only across the entire
organization
Usually across a larger set of stakeholders (and sometimes society at large
Involves the "C-Suite" or "C-Level" executives and Board of Directors
-> !!Focus on "Strategic Planning" and/or on major transactions such as Mergers,
Acquisitions, Divestitures, Bankruptcy, Restructuring, Crisis Management,...!!
/.Strategy v. Management consulting. - Answer-✅Strategy consulting is a subset of
Management consulting. Strategy consulting is primarily focused on activities that are
unique to managing at the level of the firm, while the rest of management consulting is
everything else including all the functional-level consulting projects
/.Name the Big Three Independent Strategy Consultancies plus One - Answer-
✅McKinsey, BCG, Bain
and Booz Allen
Answers
/. What is Management Consulting? - Answer-✅a broad category of advisory services.
Two major functions
- A) the official, formal, and publicly visible set of activities and objectives, - B) the
confidential, unacknowledged, and usually primary set of activitiesand objectives.
/.Characterize Peter Block's Flawless Consulting: A Guide to Getting Your Expertise
Used - Answer-✅emphasizes that consulting is not just about providing solutions but
about fostering trust, collaboration, and effective communication.
/.What is the Official, Publicly Acceptable Definition of Management Consulting? -
Answer-✅provides organizations with a broadset of advisory services to help them
formulate defendable strategies, improve operational processes,and generally improve
the effectiveness, efficiency, and economic value of organizations
(Advise, Effective and Efficient Organizational Performance that Improves Economic
Value)
/.What is the Confidential, Unacknowledged Definition of Management Consulting? -
Answer-✅related to organizations, Boards of Directors, and often individual executives,
using external advisors to vet, ostensibly justify, give credibility to, glamorize/promote,
or otherwise offset risks associated with internally generated ideas, strategies, and/or
actions.
(VJCGR - Vet, Justify, Credibility, Glamorize, Risk)
/.Why do firms hire companies like McKinsey, BCG, and Bain? - Answer-✅Sarbanes-
Oxley Regulations
Stakeholder Management
D&O Insurance Documentation
Honeybee Effect
Covert Personal Career Advancement
/.Explain why firms hire consultants for Sarbanes-Oxley Regulations. - Answer-
✅Liability risk to BoD (board of directors) and C-Suite (CEOs, CFOs,...)
, /.Explain why firms hire consultants for Stakeholder Management. - Answer-✅Deflect
blame
Establish perceived credibility
/.Explain why firms hire consultants for D&O Insurance Documentation. - Answer-
✅Show paper trail of "fiduciary responsibility" in case of lawsuits
/.Explain why firms hire consultants for Honeybee Effect. - Answer-✅Diplomatic sharing
of industry "best practices"
/.Explain why firms hire consultants for Covert Personal Career Advancement. -
Answer-✅Ostensibly using a third party to justify political strategiesinside of
organizations
/.What is the distinction between what consulting is and what professional services? -
Answer-✅a key difference between Professional Services and Consulting is that
Professional Services usually includes activities where a third-party is actually
performing a task for an organization, while consulting (technically) is restricted to
provide advice and recommendations.
Consulting is ADVISING.
/.Define Strategic Management. - Answer-✅the practice of management at the level of
the firm
/.What activies are involved in Strategic Management. - Answer-✅Inherently cross-
functional and includes decisions that are impactful not only across the entire
organization
Usually across a larger set of stakeholders (and sometimes society at large
Involves the "C-Suite" or "C-Level" executives and Board of Directors
-> !!Focus on "Strategic Planning" and/or on major transactions such as Mergers,
Acquisitions, Divestitures, Bankruptcy, Restructuring, Crisis Management,...!!
/.Strategy v. Management consulting. - Answer-✅Strategy consulting is a subset of
Management consulting. Strategy consulting is primarily focused on activities that are
unique to managing at the level of the firm, while the rest of management consulting is
everything else including all the functional-level consulting projects
/.Name the Big Three Independent Strategy Consultancies plus One - Answer-
✅McKinsey, BCG, Bain
and Booz Allen
