It shows that the market segmentati

It shows that the market segmentation was unlikely to change. The only diffirence is

the insrease in tax by l% at the expense of 'others' (e.g. corporate finance). This

explains that the Taiwanese business advisory market is 'compliance-based'. This

means that companies use business advisors for very specific technical assistance, e.g.

audit or ta;r that is. required by law. Most other activities traditionally considered

'value added serices' in the consulting world, such as strategy, marketing

information technology, and business process improvement, are done internally rather

than sourced externally by consultants. This is an important characteristic of the

Taiwan market and reflects its 'immaturity'. ln more mature markets, e.g. the United

States, Great Britain and Australi4 the compliance segments are stable. Companies

only need to be audited and have their tax done once a year. The growth is in 'value

added seryice' e.g. management consulting where consultants are continually finding

new ways to improve business performance. But...in Taiwan, companies are reluctant

to tnrst this work to consultants and use advisors only when required for corporate

govemance. Western managem may misunderstand this important point about the

. market dynamics, yet it is vital in developing growttr shategies for the Taiwanese

Practice.

The Taiwan Practice's Market Position

At the time of the Project, the Taiwanese' practice's market position was relatively

strong - its market share is 18% - but this is mainly due to its audit practice. The firm

is not well placed to improve this position:

o it is a compliance based firm with little chance of becoming a business advisory

firm

o it has poor client relationship management which risks existing clients

o . it has poor teamwork between its service areas and fails to leverage off its audit

client base

o its marketing is very weak

The Firm's major market oppofunities are:

grow audit with selected local companies going public or oOver The Counter'

companies

grow management consultancy and tax consulting for both existing multinational

(lvfNc) clients and local publicly listed companies

The Taiwan business advisory market is compliance based with only small demand

for non-audit services. But there are signs clients expect a business advisory

relationship and, therefore, non-compliance work such as management consulting,

corporate finance, and stategic tax will grow as the market matures.

The Nature of the Taiwanese Practice's Problem

The Practice is focusing on its "factor/', which is its core business activity of Audit.

The firm has achieved:

r good market growth (17%last year).

o a strorg position in audit

o but is faced with staffshortages and poor customer relationships

Some partners feel that the firm is too busy to properly service its existing clients and

should focus on this before more irowth. However, the Firm's senior managernent

feel that it should and can improve its customer relationships and increase its rate of

growth. While l7o/o growth is good, management felt that 30% should be possible. It

was also considered unreasonable to complain that staffwere too busy for more

growth.

The Taiwanese Practice's Marketing

Current marketing strategies focus upon promoting the Taiwanese Practice as:

o a leading compliance-based firm (e.g. tax and audit)

o individual partners as experts in their field

. no link between corporate mission and marketing objectives

. no formal market plan or planning process

o no integration between Strategic Business Unit (SBU), i.e. tax, audit, consulting,

. planning and overall marketing objectives

. no market segmentation, targeting or positioning

r marketing mix limited to promotions (mainly seminars)

Cunent marketing organisation :

o firm-wide marketing by a Marketing and Communications Deparhnent (led by a

Partner-in-Charge - Mr Sun)

o SBU marketing by each SBU's partners

marketing organisation not led by person of authority or credibility

o

marketing activities are not stnrctured along functional, product or client-related

a

lines

no lines of communication and weak working relationship between marketing

departnent and SBUs

Cunent marketing function:

o limited to promotions, mainly seminars with some newsletters and media articles

o promotions:

o good media strategy glven advertising is not allowed

no focus to the seminars in terms of client participation (e.9. there are no

marketing targets or follow-up after the seminars)

no link between promotional activities and sales

Marketing mix activities

o Products:

o no local new product development

o the firm lacks the technical skills and experience to offer some Firm

o doubts about market demand for "strategic" products, such as managunant

o partrers are interested in value added products but want taining and

r People:

o no use of front-line staffin marketing activities

o little cross-selling

o little understanding of difference between marketing and selling

o Process:

o the Practice's main priority is to look after the "factoqy''(i-e. audit)

o poor client management due to being too busy

o Sales:

o no sales team

o no sales planning or reporting

o no integration between marketing and selling

The Taiwanese Practic e's Cus tomer Relations hips

The Taiwanese Practice has two levels of clients:

o Chairman, Chief Executive Officer (CEO), Managing Director (MD)

o Chief financial officer (CFO) & staff

The relationship at the top level is good but the Practice's future with these clients

depends upon the relationship between these senior men and the partrrer continuing. If

eitho retires or leaves, the relationship may be lost because the relationship at the

products

consulting

perhaps secondme,lrts to transfer skills

operational level is poor. If asked their opinion by a new Chairman, CEO, MD, the

CFO is likely to complain about the Taiwanese Practice and recofirmend another firm.

The Taiwanese Practice's problems with its clients involve:

it must improve its value perception - it is perceived as having a good quality

product but is too expensive

it must improve its service delivery - staff are too busy to service clients properly

but can provide quality care when they find time

it does not understand its clients well and is unwilling to seek client feedback

a

it is not good at finding ad-hoc consulting work tlpical of non-audit consulting

a

it fails to provide the business advisory relationship clients expect

o

The following quotes from customers illustrate these issues:

Staffturnover is too high. Wefeel helpless, we can only accept what they give us but it

is veryfrustrating and expensive. We shouldn't need to train the audit staffeach year.

They also need to irnprove the information technologt in their audit work. It is below

the industry standard. l(e want the computer to prepare the balance sheet. The senior

partner has too many accaunts and not enough time for us. The partners do not

understand our business well enough. If they want to become a business advisory

firm, they need to understand our industry and us tf they are to give us strategic

advice.

They give me thefeeling they are very busy. Theforeign companies in Taiwan think

the other consultingfrms are better thanyour practice. You are ranlced third. I have

experience working with these other two cornpanies in my previous jobs and they are

better than you. Their sertice is better. Their senior people will always contact us to

see if we have any problems. They even visit us in the office. At your Firm, everyone is

very busy. Even the secretary is busy. I cannot evenfind my auditor when I need him.

The staf rotation is veryfrequent. The audit group changes every year. They have a

lot of questions and malre my work harder. You need to explain everything every year.'

The person in charge doesn't pass on his experience of our company to the new staff.

Iiy staf are always complaining to me aboutyour Firm.

Recommendations

The Taiwanese practice will fail to capture the market opportunities that exist in the

Taiwanese business advisory market unless it:

r improves its ability to provide a business advisory relationship

o adopts a structured approach to marketing

The Taiwanese Practice can improve its performance as a business advisory firm

tluough:

r the partner becomes the client's business adviser

o regionalcoordination

o providing unsolicited advice

o providing strategic notjust operational or statutory advice

The Practice can achieve best practice marketing:

o skills transfer to the Taiwan staffthrough a series of workshops and training

seminars

o ro-ffrgtneering the marketing department

o investment in specific marketing activities (eg. seminars)

The Taiwanese Practice's current marketing strategies are summarised by this quote

from Mr Sun, the Partner-in-Charge of Marketing (further details follow below):

"lV'e never let anyfish swim by".

Improved marketing will tell the Practice:

o which fish to catch

o what bait to use to catch the profitable fish

o which fish to throw back

Outcomes

If the Taiwan Practice adopts these recommendations and Orey are successfully

implemented, the Firrr can expect to achieve:

o Market leadership in audit and corporate finance and managernent consulting

o lncrease in annual fee revenues by more than 560/o to US$50 million.

o lncrease in overall market share to 25% (increase by 7%).

o lncreased overall profitability by 25o/o

r The Taiwan practice will be perceived as a business advisory firm (the Firm's

Global Strategy)

It shows that the market segmentation was likely to change only slightly, with the

biggest growth area being management consulting. The graphics illustrate that the

Indian business advisory market is very different from the Taiwanese market. The

Indian market is quite 'mature' and resembles the segmentation of the Australian

market.

Kết quả (Việt) 1:

Nó cho thấy rằng phân khúc thị trường là dường như không thay đổi. Sự khác duy nhất làinsrease trong thuế l % chi phí 'khác' (ví dụ như tài chính doanh nghiệp). Điều nàygiải thích rằng thị trường tư vấn doanh nghiệp Đài Loan là 'phù hợp dựa trên'. Điều nàycó nghĩa là rằng công ty sử dụng cố vấn kinh doanh để được hỗ trợ kỹ thuật rất cụ thể, ví dụ nhưkiểm toán hoặc thi; r thật. theo yêu cầu của pháp luật. Hầu hết các hoạt động khác, theo truyền thống được coi là nhất' giá trị gia tăng serices' tư vấn trên thế giới, chẳng hạn như chiến lược, tiếp thịcông nghệ thông tin, và cải tiến quy trình kinh doanh, được thực hiện trong nội bộ thay vìhơn nguồn bên ngoài bởi chuyên gia tư vấn. Đây là một đặc tính quan trọng của cácThị trường Đài Loan và phản ánh của nó chưa thành thuộc'. LN hơn trưởng thành thị trường, ví dụ như HoaKỳ, Anh và Australi4 các phân đoạn tuân thủ là ổn định. Công tychỉ cần phải được kiểm toán và có thuế của họ thực hiện một lần một năm. Sự phát triển là ở ' giá trịThêm vào seryice' ví dụ như tư vấn quản lý nơi tư vấn đang liên tục tìm kiếmcách thức mới để cải thiện hiệu suất kinh doanh. Nhưng... tại Đài Loan, công ty được miễn cưỡngtnrst điều này làm việc để tư vấn và sử dụng tư vấn chỉ khi cần thiết cho doanh nghiệpgovemance. Phía tây managem có thể hiểu sai thời điểm quan trọng này về các. thị trường năng động, nhưng nó là rất quan trọng trong việc phát triển growttr shategies cho các Đài LoanThực hành.Vị trí thị trường thực tế Đài LoanTại thời điểm của dự án, các Đài Loan ' vị trí thực tế của thị trường là tương đốimạnh mẽ - thị phần của nó là 18% - nhưng điều này là chủ yếu là do thực hành kiểm toán của nó. Công tykhông cũng được đặt để cải thiện vị trí này:o nó là một công ty tuân thủ dựa với ít cơ hội trở thành một doanh nghiệp tư vấncông tyo nó đã quản lý quan hệ khách hàng nghèo rủi ro khách hàng hiện tạio. nó đã làm việc theo nhóm người nghèo giữa các khu vực dịch vụ và không phải tắt kiểm toán của nócơ sở khách hàngo tiếp thị là rất yếuOppofunities thị trường lớn của công ty là:phát triển kiểm toán với công ty địa phương đã chọn đi công cộng hoặc oOver số lượt truy cập The'công typhát triển quản lý tư vấn và thuế tư vấn cho cả hai hiện đa quốc giakhách hàng (lvfNc) và công ty niêm yết công khai địa phươngTrường tư vấn doanh nghiệp Đài Loan là tuân thủ dựa với chỉ nhu cầu nhỏDịch vụ Phòng Không kiểm toán. Nhưng có những dấu hiệu khách hàng mong đợi một doanh nghiệp tư vấnmối quan hệ và, do đó, không tuân thủ làm việc như vậy như tư vấn quản lý,tài chính doanh nghiệp, và stategic thuế sẽ phát triển như thị trường trưởng thành.Bản chất của vấn đề của thực tế Đài LoanCác thực hành tập trung vào các "yếu tố /', mà là hoạt động kinh doanh cốt lõi của kiểm toán.Công ty đã đạt được:r tốt thị trường tăng trưởng (17% cuối năm).o vị strorg, kiểm toáno nhưng là phải đối mặt với staffshortages và người nghèo mối quan hệ khách hàngMột số đối tác cảm thấy rằng công ty này là quá bận rộn để đúng cách phục vụ khách hàng hiện tại của nó vànên tập trung vào điều này trước khi thêm irowth. Tuy nhiên, các công ty của cấp cao managernentcảm thấy rằng nó nên có thể cải thiện các mối quan hệ khách hàng và tăng tốc độ của nó củatăng trưởng. Trong khi tăng trưởng l7o/o là tốt, quản lý cảm thấy rằng 30% nên được có thể. Nócũng được coi là bất hợp lý để khiếu nại đó staffwere quá bận rộn để biết thêmtăng trưởng.Tiếp thị thực tế Đài LoanChiến lược tiếp thị hiện tại tập trung vào việc thúc đẩy việc Đài Loan như:o một dựa trên việc tuân thủ công ty hàng đầu (ví dụ như thuế và kiểm toán)o cá nhân đối tác là các chuyên gia trong lĩnh vực của họ. không có liên kết giữa nhiệm vụ doanh nghiệp và tiếp thị mục tiêu. không có kế hoạch thị trường chính thức hoặc quá trình lập kế hoạcho không tích hợp giữa chiến lược kinh doanh đơn vị (SBU), tức là thuế, kiểm toán, tư vấn,. lập kế hoạch và tiếp thị tổng thể mục tiêu. không có phân khúc thị trường, nhắm mục tiêu hoặc định vịr marketing hỗn hợp giới hạn chương trình khuyến mại (chủ yếu là hội thảo)Tổ chức tiếp thị Cunent:o toàn công ty tiếp thị của một tiếp thị và truyền thông Deparhnent (lãnh đạo bởi mộtPartner-in-Charge - ông Sun)o SBU tiếp thị bởi đối tác mỗi SBUtổ chức tiếp thị không phải do người có thẩm quyền hoặc độ tin cậyohoạt động tiếp thị là không stnrctured dọc theo chức năng, sản phẩm hoặc liên quan đến khách hàngmộtdây chuyềnkhông có đường giao tiếp và yếu mối quan hệ làm việc giữa tiếp thịdepartnent và SBUsCunent chức năng tiếp thị:o giới hạn chương trình khuyến mại, chủ yếu là hội thảo với một số tin tức mới và các bài viết phương tiện truyền thôngo chương trình khuyến mãi:o tốt phương tiện truyền thông chiến lược glven quảng cáo không được phépkhông có tập trung vào các cuộc hội thảo về sự tham gia của khách hàng (e.9. có không cómarketing targets or follow-up after the seminars)no link between promotional activities and salesMarketing mix activitieso Products:o no local new product developmento the firm lacks the technical skills and experience to offer some Firmo doubts about market demand for "strategic" products, such as managunanto partrers are interested in value added products but want taining andr People:o no use of front-line staffin marketing activitieso little cross-sellingo little understanding of difference between marketing and sellingo Process:o the Practice's main priority is to look after the "factoqy''(i-e. audit)o poor client management due to being too busyo Sales:o no sales teamo no sales planning or reportingo no integration between marketing and sellingThe Taiwanese Practic e's Cus tomer Relations hipsThe Taiwanese Practice has two levels of clients:o Chairman, Chief Executive Officer (CEO), Managing Director (MD)o Chief financial officer (CFO) & staffThe relationship at the top level is good but the Practice's future with these clientsdepends upon the relationship between these senior men and the partrrer continuing. Ifeitho retires or leaves, the relationship may be lost because the relationship at theproductsconsultingperhaps secondme,lrts to transfer skillsoperational level is poor. If asked their opinion by a new Chairman, CEO, MD, theCFO is likely to complain about the Taiwanese Practice and recofirmend another firm.The Taiwanese Practice's problems with its clients involve:it must improve its value perception - it is perceived as having a good qualityproduct but is too expensiveit must improve its service delivery - staff are too busy to service clients properlybut can provide quality care when they find timeit does not understand its clients well and is unwilling to seek client feedbackait is not good at finding ad-hoc consulting work tlpical of non-audit consultingait fails to provide the business advisory relationship clients expectoThe following quotes from customers illustrate these issues:Staffturnover is too high. Wefeel helpless, we can only accept what they give us but itis veryfrustrating and expensive. We shouldn't need to train the audit staffeach year.They also need to irnprove the information technologt in their audit work. It is belowthe industry standard. l(e want the computer to prepare the balance sheet. The seniorpartner has too many accaunts and not enough time for us. The partners do notunderstand our business well enough. If they want to become a business advisoryfirm, they need to understand our industry and us tf they are to give us strategicadvice.They give me thefeeling they are very busy. Theforeign companies in Taiwan thinkthe other consultingfrms are better thanyour practice. You are ranlced third. I haveexperience working with these other two cornpanies in my previous jobs and they arebetter than you. Their sertice is better. Their senior people will always contact us tosee if we have any problems. They even visit us in the office. At your Firm, everyone isvery busy. Even the secretary is busy. I cannot evenfind my auditor when I need him.The staf rotation is veryfrequent. The audit group changes every year. They have alot of questions and malre my work harder. You need to explain everything every year.'The person in charge doesn't pass on his experience of our company to the new staff.Iiy staf are always complaining to me aboutyour Firm.RecommendationsThe Taiwanese practice will fail to capture the market opportunities that exist in theTaiwanese business advisory market unless it:r improves its ability to provide a business advisory relationshipo adopts a structured approach to marketingThe Taiwanese Practice can improve its performance as a business advisory firmtluough:r the partner becomes the client's business advisero regionalcoordinationo providing unsolicited adviceo providing strategic notjust operational or statutory adviceThe Practice can achieve best practice marketing:o skills transfer to the Taiwan staffthrough a series of workshops and trainingseminarso ro-ffrgtneering the marketing departmento investment in specific marketing activities (eg. seminars)The Taiwanese Practice's current marketing strategies are summarised by this quotefrom Mr Sun, the Partner-in-Charge of Marketing (further details follow below):"lV'e never let anyfish swim by".Improved marketing will tell the Practice:o which fish to catcho what bait to use to catch the profitable fisho which fish to throw backOutcomesIf the Taiwan Practice adopts these recommendations and Orey are successfullyimplemented, the Firrr can expect to achieve:o Market leadership in audit and corporate finance and managernent consultingo lncrease in annual fee revenues by more than 560/o to US$50 million.o lncrease in overall market share to 25% (increase by 7%).o lncreased overall profitability by 25o/or The Taiwan practice will be perceived as a business advisory firm (the Firm'sGlobal Strategy)It shows that the market segmentation was likely to change only slightly, with thebiggest growth area being management consulting. The graphics illustrate that theIndian business advisory market is very different from the Taiwanese market. TheIndian market is quite 'mature' and resembles the segmentation of the Australianmarket.