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Management Consulting refers to a set of services in which a third party with expertise in business management contributes to the effectiveness and efficiency of daily operations and overall profitability and bottom line. Essentially, a management consultant has extensive educational and practical knowledge, including an MBA or Ph.D. in Business in combination with five or more years of practical experience such as junior business consulting positions, industry-specific mid-management positions, university teaching experience, or a combination of the above.

In essence, a management consulting firm may use advanced and up-to-date research methodology that may include industry-specific information and data, comparative advertising and marketing analysis, internal examination, and comparative studies to determine the weakest points of the operation and devise proper action plans to rectify those weak points.

Generally, management consulting firms and individual management consultants rely heavily on knowledge. The most vital action any management consulting firm has to take to create an environment in which the work of its management consultant is virtually guaranteed to help their clients is the ability to educate their management consultants continuously.

Similarly, it is one of the most reliable ways to differentiate between adequate and superb management consulting firms.

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