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Section 16. Economy
Nushaba Hajiyeva, PhD., associate professor, of Marketing Department, Azerbaijan Technological University E-mail: [email protected] Ismailov Vugar, Ph D., associate professor, of Public Administration Department, Azerbaijan Technological University E-mail: [email protected]
CURRENT STATUS AND DEVELOPMENT ASPECTS OF CONSULTANCY SERVICE IN AZERBAIJAN
Abstract: The article states that consulting and consulting services in Azerbaijan have been studied by taking into consideration the fundamental changes in society, including the impact of globalization. Removing visible gaps in this direction significantly updates the study of theoretical and practical aspects of consulting activity. The main goal is to develop theoretical and practical proposals to improve the competitiveness of business organizations and the country in the light of the establishment of a perfect consulting service mechanism by taking into account the new reality of socio-economic development.
Keywords: market economy, consulting, marketing, competitiveness, anti-crisis management, information technology.
The transition to the sustainable development of of free choice, consumers prefer the product maker based the Azerbaijani economy has created new business con- mainly on their specific needs and requirements.For this ditions.Sustainability and the rapid expansion of the reason, producers must produce such products in order people's recycling process require knowledge and in- to be successful in the market and to earn profits in order formation from the business world and modern world to meet the consumer's individual needs and criteria.The to rapidly accumulate.Time shows that no economic uncertainties and changes ofthe consumers are affected by existence can develop without the exchange of old and this.In case ofuncertainty, consultation with a professional new knowledge.For this reason, the main competition consultant or consulting firm may be more useful [4]. in modern trade is for new technological knowledge. As a result ofthe joint venture, the consultants' knowl-Giant foreign companies and local businesses often edge and experience of the consulting firm will lead to receive new information from consultants and consul- the establishment of a new management system, effective tants, including in production management, finance, business process management, improved business planmarketing, sales and other areas [1]. ning and reporting, and a modern foundation of staffing,
In the market economy, competition between com- marketing, advertising and finance management.
modity and service providers is at the most competitive The aformentioned results are the services that
level in most markets. When the demand exceeds the bid, consulting firms can sell on the market.For this reason,
it selects the consumer product manufacturer. In the case the improvement of the management and management
system of consulting companies is an important task and its implementation serves the success of the consulting company in the market [3].
The success of a consulting firm depends on the accumulation and management of highly skilled specialists. The analysis shows that most of the highly talented intellectuals in professional organizations do not fit and that competition between them has become even more acute: it is a source of a scientific problem in the local context.
On the other hand, it is preferable to use traditional and simple management decisions for easy and rapid access to local business structures.The prevention also depends on the diversification of consulting activities. From this point of view, the examination of the problems related to the development and development of consultancy activities in the local context is of great scientific and practical importance and therefore urgent.
The main aim of writing the article is to prepare theoretical and practical suggestions to increase the competitiveness of commercial organizations and the country on the basis of establishing an excellent consulting service mechanism, taking into account the new reality of socioeconomic development.In this context, it is planned to do the following specific tasks: investigate the theoretical bases of the operational link between the organization's competitiveness and consulting services; analyze and characterize the situation of existing consulting services in the country; determining the market share based on the country's core consulting companies; to evaluate the new aspects of consultancy services in Azerbaijan; describe development trends in consulting services in information technology.
As a result of the researches, for the first time in Azerbaijan, the location and role of outsourced consultancy service for the organization of consultancy services and the effectiveness of separate commercial organizations of the country were determined.The main scientific innovation of the research is as follows: a functional commitment has been established between the competitiveness of local business organizations and consulting services; modern approaches to the development of consulting projects have been clarified; the characteristics of the current situation of the counseling service in the country; market positions were assessed on the basis of key counseling companies in the country; ways to give advice on the implementa-
tion of strategic management elements; the priorities of the consultations in the vital management system have been disclosed; features provided by consulting in the field of information technology; the consultancy services market in Azerbaijan was described as a series of other elements of the modern market economy. Before the reform of the market economy, we did not have consultancy.In the Soviet economy, the organization gave advice through undertakings or other high institutions, ministries and exchanges of advanced experience such as chefs or other businesses.Faced with many new challenges in bringing the market economy and economic decisions to the institutional level, economic leaders have become a major source of demand for management consulting.But it took many years for these requests to become a real (paid) student.
Tough competition in national and global markets requires continual renewal of organizational structures, management systems and methods.In addition, the risk of taking wrong decisions as a result of irregular reforms was very high.Old organizational methods and management concepts did not give the necessary results [5]. Tens of years of experience show that leaders need to be aware of the reliability and availability of consultants, especially in the acquisition of the most up-to-date tools in organizational design through the adoption and adoption of strategic and operative decisions to reduce risks and make major decisions.
In addition, the situation in the consulting market in Azerbaijan in the last decade has been characterized by a large external consultant flow.The reason for this is that the world market is looking at the opportunities of the Azerbaijani market and the demand for counseling services in countries with stable economies.The advantage of large international consulting firms is that they do not compete with companies that encourage this service in the national market. The absence of a management consultant forced western consulting firms to change the way they entered the national market.
Generally, the entrance to the market is carried out by taking over a large domestic company and bringing it together with an international cooperation network after completion.At the beginning of the 1990s, there were no such companies in Azerbaijan, and international consulting firms chose to establish new and full-fledged subsidiaries in their own countries.
Based on the direct investment of foreign consultancy firms in Azerbaijan, the consulting sector has facilitated the use of new methods and standards in services offered to local clients forced to comply with high standards. On the other hand, foreign companies that have entered the market for the first time can communicate with more promising local customers.This leads to a slight delay in the initial development of local consulting firms.
By the end of 1990s there were dozens of local consulting companies in the Azerbaijani market. Some of their relics can be compared to the number of employees in the international consulting network. Foreign experts are generally preferred by customers for the following reasons: international market access for the introduction of goods and services and the attraction of western capital; raising the image of the operator and international reputation; information on western standards for the implementation of our work; receive "first-hand" help provided by them during interaction with foreign workers; The conservatism of the business, that sometimes the leaders of big businesses are not in a hurry to cut off their involvement with foreign consulting firms.
At the same time, western consultants were required to participate in the consulting projects under the auspices of international agencies. However, the share of financing in the income of Western Azerbaijani branches is gradually diminishing.
Foreign consultants in Azerbaijan market faced many difficulties. These include: characteristics of socio-political and economic situation; the psychological characteristics of social-organizational culture; language barrier etc.
The following are the shortcomings of Western consultants' activities: ignoring the characteristics of the realities ofAzerbaijan; insufficient information about local business problems; to turn their Azerbaijani businesses into storage areas to train their employees; efficiency and high price for large businesses only.
A survey was conducted among the 300 entrepre-neurship institutions to investigate the need for consultation services for small and medium-sized enterprises in the Republic of Azerbaijan.A survey was conducted on 300 entrepreneurship organizations between 19 April 2012 and 30 May 2012 to examine small and medium-sized entrepreneurship consultancy services covering 8 economic regions in Azerbaijan.
Of respondents, 38%, 0% or 114% said they were providing consulting services in business activities, 62%, 0% or 186 participants said they could not benefit from these services.
25.3% of the respondents or 76 participants did not need these services, 9.0% or 27 participants did not have the opportunity to do this, 8.3% or 6, 3% or 19 participants responded to this question by 25 survey participants did not realize, 3%, 0% or 9 participants were expensive and at the end one or three or four people had no other solution. I think, etc.).
As a result of the research, it was determined that many field consultancy services will develop in Azerbaijan over the next decade.
The global financial crisis of 2008-2009 caused the customers of the trump card companies to increase and the demand for this area increased. This has become a serious problem for the young consulting sector ofAzer-baijan. In connection with this, the priorities in the field of audit and consultancy have changed: industry choice for industry; diversification of activity; weakening of competition power with foreign consulting and supervisory firms focusing on activities in Azerbaijan; transfer of the activities of the Baku companies to the regions; reduce the number of consultants' royalties.
Despite the narrowing of the consulting market in Azerbaijan, they managed to maintain their position as key actors, and they had the ability to maneuver at the expense of a supervisory operation, many of which were less affected by the crisis.In Azerbaijan, the post-crisis dynamics of the consulting industry show the beginning of a new phase in development. For the first time, the dynamic development of this area has been observed on the basis of internal resources without external technical assistance.At that time, new customers entered the market.These were the institutions created or survivors during the crisis and the institutions they needed to acquire additional knowledge and skills (development strategy, organization and implementation of business processes, management accounting, implementation of financial management functions, etc.) in a swift manner. In addition to his education, this was the way to apply to consulting firms that had successful experience in implementing similar projects.
The market was a positive situation in the post-crisis period. However, the market development indicators in
2000 indicate that consulting services increased by 60% and service market by 36%.This means a radical change of situation. Since then, the number of consultants and experts has increased [6]. Many successful and emerging consulting firms have not made enough efforts to revitalize the market ofAzerbaijan's consultancy services.Thus, in Azerbaijan there is a genuine consultancy request regarding economic growth. After that, the development of local counseling services became more civilized.
One of the main objectives in the field of counseling is to understand the nature of the antiviral management counseling and what is its key role.
An important role for encyclopedic management consulting is to give the experience of western firms a clearer impression. The majority is based on the current capital situation and the inadequacy of the operating capital.This results in a debt burden [7]. Management consultants are primarily trying to clarify the cause.It should be noted that the consulting firms now improve the client's financial situation and allow the advisor to pay initial costs, including services. The consulting firm analyzes the first stage of the business, diagnoses, analyzes the accumulated debt, and prepares a reduction plan. Negotiate with major lenders.The assessment of the financial situation, the finding of the causes of the debt and the remedial measures allow you to develop the system. In most cases, when the former debt is exempted, it has recovered its profitability and has faced the problem of changing the operation of the business. In this case, it is proposed to reduce taxation the least in the framework of existing legislation.The next step is the reorganization of production and the definition of a new action model. It focuses on the implementation of complex projects that combine complex projects, financial performance and management, audit, tax and accounting matters, legal expertise, the application of modern management and information technology, staff selection and budgeting.
In the client's complex financial position, the consulting firm succeeds in dealing with management issues successfully. Management consultants do not only develop and present a precautionary system to improve the health and financial situation of the enterprise, but also provide a management team that can heal with the help of consultants.Information technology (IT) is increasingly influencing the various areas of our lives, including the economy. There are also two revolutions in devel-
oped countries at the same time: information technology and business.As a result of mutual influence, they contribute to the development of each other. First, under the influence of information technology, an effective business management and a general method of quality have emerged.Then there was a radical job change, such as restructuring business processes, a production process management system, special apparatus and software installation. In addition, this area was chosen more dynamically. Annual growth rate is 7-8%.
Information technology (IT) experts say that information technology is the integration of computers, electronics and communications. It is a set of methods and tools that are used to deliberately alter any information.
There is a functional commitment between the consulting service and the operational efficiency of the operator. The presence of variance variance leads to continuous improvement of the consulting service. Our research suggests the following: normal and efficient working of the economic entrepreneurial issues without the administrative emirate system can not be achieved without consulting services.The production relations in the market economy are based on the creation of legal economic, political, social, economic and technological conditions and the functioning of objective economic laws and consequently the knowledge and experience of the consulting company; building companies can play a role in the market economy by exploring who, what, when and for what purpose they are working:
Firstly, consulting services are a commodity that is offered in accordance with the managers of the business and management uses this assistance when making management decisions;
Secondly, the development and redesign of responsible consultants requires the need for assistance.
Thirdly, when incorporating consultant advisors, the client believes that by expert evaluation of the conditions created by him, new ideas, results of related research, discussion of the problem, and ultimately professional experience will be gained.
Therefore, when the responsible management decisions are taken, it can be concluded that the consultants are involved in the solution of the uncertainty. The project shows that a consultant regards him as a tool to remove uncertainty from the center and that if it develops in this way, it is a success guarantee.
- In order to maintain business continuity and adapt to the changing environment, it is crucial that the organization of the organization and its business be restructured and its behavioral, business strategy and tactics changed.To do this, it is necessary to take advantage of complex measures in the context of tough competition and uncertainty. One of the measures is to include external consultants who allow them to find solutions to the challenges that arise.Uncertainty in governance is an important factor that requires consulting services. The increasing complexity of work is a great explanation of what has emerged in the world of consulting services in the early 21st century.
- As with any other product, the consulting service has its own life cycle: design and development, approval, market access, development, competence, completeness and stagnation stages.This process is also a temporary one. Many services have lost and need to be replaced. Other services are emerging and should be implemented. In the European research book, the list of counseling advisers is grouped as consulting services in 94 groups.
- Establishing relationships without consulting potential customers is one of the ways of marketing consulting services. The link may remember the interest of the consultant and the consultant's name.This kind of communication is very rarely influenced by the taking of the task. However, if the consultant has enough information with a client, he can say that the client is a problem and that he has taken the necessary suggestions.
- In the last decade the situation of the consulting market in Azerbaijan has been characterized by the flow of foreign consultants due to the request for consulting services in the countries with stable economies as well as the demand for the world market to explore the opportunities of Azerbaijan market.The advantage of large international consulting firms is that they do not compete with companies that perform their services in the national market.The absence of a management consultant forced western consulting firms to change the way they entered the national market [8]. Generally, the entrance to the market is carried out by taking over a large domestic company and bringing it together with an international cooperation network after completion.At the beginning of the 90s there was no such company in Azerbaijan and international consulting companies led
to the establishment of new and fully managed branches by subsidiaries in developed countries.
- As in the whole world, the main topic of consultancy in Azerbaijan is accounting and auditing. Adding local experts to the preparation of projects in Azerbaijan (about 60%) and giving them their brands.It is the initiative of these companies to coordinate local and world experience and to create conditions that will benefit their local customers. Thus, it is obvious that the quality of service will gradually compress the western professions that have reached the global level from local markets.
- Twenty of the 50 major consulting organizations operating in our country are working on legal grounds, with the largest circulation between Nazal Consulting LLC and the British Consulting Group LLC.One of the counseling firms operates in the field of "Accounting and Tax Counseling". Among the various companies belong to a foreign investor and "EA Consulting" LLC, which owns the Caspian Accounting. However, 42.7% (13277, 5 * 100 / 31119.25) of the total consulting market in the country belongs to Ernst & Young Holdings (Bioscience) Bi. Vi's branch in Azerbaijan.
- The global financial crisis of 2008-2009 has reduced the ability of customers and consulting firms to meet this demand, which is a serious challenge for the young consulting sector in Azerbaijan: there has been a change in the priorities of supervision and consultancy in this context: industry choice for industry; diversification of activity; weakening of competition power with foreign consulting and supervisory firms focusing on activities in Azerbaijan; transfer of the activities of the Baku companies to the regions; Reducing the number of consultants.
The competitive activities of the leaders who provide consultancy services in Azerbaijan are linked to the following factors: the presence of local businesses with potential customers; occupational level of trainees; information about local characteristics and psychology of local customers; financial support provided by prestigious institutions; mastering advanced business technologies; price policy; it is important that the consultant has a competitive advantage or development. If it is possible to reach the target without paying much attention to it, it should establish its own strategy and be informed of its current and future clients.Of course, not every consultant can gain local or international reputation in their field.
There are many possibilities, so many consultants can the rescue plan is only possible under these circumstanc-
offer special services to their clients. es. However, it is often the first explicit statement.As you
Implementation demonstrates that consultants must know, any company can not systematically follow the cur-
have access to reliable information to help them deal ef- rent situation in the market or continue its operations. The fectively with financial difficulties. The development of most effective expression in case analysis is diagnosis.
References:
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2. Humbataliyeva S. A "History of management consulting." Questions of economic sciences. - Moscow - 2009.-No. 5.- P. 126.- 128.
3. Peter Blok Perfect Marketing Publishing, Peter, - 2007.
4. Mel Zilberman Consulting. Methodes and technologies. Publishing House, Peter - 2007.
5. Kurbatova O. V. Development of the market of consulting services, Unity Dona Publishing House,- 2005.
6. Abbasov S. A. "The role of consulting services in the anti-crisis management system". Revival XXI century,-149-150.- 2010.- P. 348-355.
7. Shiffen S. Guidance Consultant, Publishing house «Pippo» - 2004.
