Consultants are experts who have a wide scope of knowledge rather than depth and use their expertise in advisory roles for clients in terms of HNIs (high net worth individuals) or organizations. Consultants are of two types: internal who work from inside an organization and are available for expert opinion on a specific subject matter and external who are employed externally for a specific period of time and is often charged on an hourly basis for consultant and provides advices for multiple clients. There is variety of external consultants: strategic consultant, operations consultant, HR consultant etc.
However, only the strategy consultant interacts with the top management of the firm and advices on the strategic decisions to take on the way forward after various key analyses internal and external to the firm. Operation Consultant usually works in shop floor and is typically involved in enhancing the efficiency and productivity of the process. Various consultants are also there for niche sectors. One key advantage of hiring a consultant over an internal employee is the third person’s perspective whereby their judgement and orientation is unbiased and hence, they take a call without any emotions or biases attached.
A firm A has to take decision whether it has to let a firm B takeover itself. The general action would be to protect the sentiments and values of the firm however far it might be in stage of declining. Once a consultant is employed to access the prospective of such a scenario, he will analyse strategically and provide advice without any bias since he is not part of the organization as such.