A.T. Kearney Case Study Example | Topics and Well Written Essays - 1750 words

A.T. Kearney - Case Study Example Kearney’s market reach to expand and overwhelming competition with the scale of services and expertise that the merger resulted to? If so, how? II. Summary of the facts A.T. Kearney was acquired by EDS (Electronic Data Systems). It is expected that with the merger of A.T. Kearney and EDS, clients could take advantage of a much broader range of services. In essence, it is expected that both companies could become a a â€Å"one-stop shop,† capable of servicing every client requirement. Both companies are expected to complement each other’s weaknesses and achieve a synergy that could be used as a leverage in the market. The combined capability of the two companies will enable them to offer end to end services in addition to the benefit of a larger market reach. Before the merger, A.T. Kearney was well known The firm was well known for its ability to deliver value and results throughout the management process, from strategy development to business and market analysis to operations, process, and technology transformation. This mix of strategy and operations, combined with a focus on implementation, had differentiated A. T Kearney from its competitors and driven the firm’s outstanding results for over a decade. A.T. ... Incidentally, the core business of A.T. Kearney is EDS waterloo. For years, EDS had been struggling to establish its MCS (Management Consultancy Service). EDS â€Å" Despite the ability to combine expertise and intellectual capital with the delivery capability of EDS, MCS was having difficulties getting off the ground† (pg. 5). Despite its size and capitalization, it registered a loss of $23 milllion in 1994. EDS just lacked the expertise to pursue MCS capability as an IT firm and lacked a clear positioning in the marketplace as a formidable â€Å"consulting† practitioner. This weakness in MCS prompted EDS to acquire A.T. Kearney for $600 million. III. Analysis Management consulting industry is a profitable industry. In 1994. It registered $40 worth of services of which $18 billion of these revenue were services related information technology (i.e., IT planning, IT strategy, strategic procurement of hardware and software solutions). Management consultancy industry was e xpected to grow faster than its other segment at an annual rate of up to 15 percent. Fred Steingraber suggested that total fees for the management consulting industry would double by the year 2000. The main reason for the tremendous growth in this sector can be attributed to the following reasons; Technology has been integrated into business strategy. Technology investments will increase. Corporations are embracing the philosophy of restructuring and reengineering. Senior management is becoming technology-literate as, across all industries, major corporations increasingly view themselves as â€Å"technology-oriented companies.† Senior management expresses satisfaction with return on technology investment, even in the absence of precise measurements. Given this data about this trend management