Advice Squad Case
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In the “Advice Squad” article we learn that even when all businesses go bankrupt, consultants remain afloat. In spite of this government is going to make consultant act transparently on the legal level.
Three main reasons why consultants remain in demand: they are regular players at the market, even during the crisis; they have a big source of Data and they learn “how to act” from their clients.
One of the most important things that do consultants – they make concessions to their clients. Consultants suggest companies how to deal with regulators and government. In addition to this, the last ones sometimes become big clients of consultants themselves.
Between times, consultants do not play into the hands of themselves. Lots of conflicts accused last years. The biggest ones were with Deloitte, PwC and OCC consultants.
In case of this, government wants consultants to become “targets of regulation”. It means that consultant now must be transparent and get money from clients directly. This will trim the revenues of consultants significantly.
The text begins with the description of the situation in the fuel market. It is said, that more than 1500 independent retailers are suffering from the big oil companies because of unfair wholesale prices. There is a campaign called Garage Watch – the members of this are the enemies of the two-level wholesale price structure. As for them, creating of the last caused a critical situation in fuel area and they want the government to react legally to reduce prices.
Originally, the oil majors wanted to get their lost money during the crisis by gaining the prices for the fuel at the stations, but when the government forbade them to do it, they gained the prices for the wholesale instead.
One of the leaders of the Garage Watch Mark Bradshaw says that there have never been two-tier price structure before and this structure destroys independent retailers. Also he sets out that they want to buy a fuel at competitive price. The Garage Watch blames mostly government in this situation for their short-term solution with the suspension of prices at majors garages.